Driving Lean Innovation on Agile Teams
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The document discusses the importance of lean innovation on agile teams, emphasizing the need for small, agile teams with the right people and the integration of lean startup and design thinking for consumer-facing companies. It outlines a disciplined lean and agile process that promotes customer development and highlights the necessity for leadership to create environments conducive to idea evolution. Key concepts include customer validation, the minimum viable product, and the importance of iterating based on feedback to achieve product-market fit.
Driving Lean Innovation on Agile Teams
- 1. Driving Lean Innovation on Agile Teams Presented by Sanjiv Augustine Sanjiv.Augustine@LitheSpeed.com @saugustine, @lithespeed
- 2. About Me Sanjiv Augustine • • • • President of LitheSpeed, LLC Experience: 25 years industry, 13 years of Agile, 10 years of Lean Specialties: Agile, Lean, Innovation Practitioner, entrepreneur, consultant, trainer, author, speaker and community organizer
- 3. Keys to Lean Innovation on Agile Teams 1. Small, agile teams with the right people are crucial to innovation 2. When combined with Agile, Lean Startup & Design Thinking are especially beneficial for consumer-facing companies 3. Scaling requires leadership to create incubation environments where ideas can collide, combine and evolve 4. A disciplined Lean + Agile process that facilitates Customer Development along with Agile Delivery can drive world-class innovation
- 4. Agenda 1. Sensei Story 2. Agile Blues, Lean Startup 3. Lean + Agile Innovation • Customer Discovery + Validation • Dual Track Development • Notes for the Enterprise “Life’s too short to build something nobody wants.” - Ash Maurya, Lean Entrpreneur, Author of Running Lean
- 6. First, an Idea! A tool to facilitate Continuous Improvement via the Scrum Retrospective Sensei is an Agile retrospective tool by LitheSpeed.
- 7. Quickly built a prototype 7
- 8. And, we took it on the road 8
- 9. Everyone said this was the best thing since…
- 10. And so… Lost a Team, Got a New Team We built, built, built And built some more
- 11. Build and they will come? Customer Discovery Feature Development
- 12. Now What? • Solution crafted, few customers • No ideas on how best to proceed • Keep building? • But… We’re almost out of runway!
- 14. Limitations of Agile • Backlog items are not validated per true end-user needs • Critical reliance on the Product Owner • The Product Owner is not infallible • IT bias…fall back on what we know: build, build, build
- 15. A Serendipitous Epiphany through Lean Startup • • • • Steve Blank coined “customer development” in the book “Four Steps to the Epiphany” Steve funded Eric Ries’s startup company IMVU in 2004 In 2010, Alex Osterwalder wrote “Business Model Generation” In 2011, Eric wrote “The Lean Startup”
- 16. The Lean Startup Cycle: Build-Measure-Learn • Know your customer • Start small • Fail fast, learn fast • Test relentlessly • Seek customer validation at all levels
- 17. Lean + Agile Innovation • • • Customer Discovery + Validation Dual Track Development Notes for the Enterprise
- 18. Lean + Agile Innovation Process Find the right product market fit… Customer Discovery Customer Valida3on Pivot Then execute and iterate on it incrementally. LEAN FEATURE VALIDATION AND ELABORATION Product Backlog AGILE FEATURE DELIVERY AND RELEASE Dual Track Development Lean validation and design in parallel with Agile delivery
- 19. Customer Discovery + Validation
- 20. Most Initial Business Models are Wrong • PDA encryption software led to… • The Game NeverEnding (a web-based MMORPG) led to…
- 21. Test the Big Risks Cheaply… Zappos hypothesized that people will buy shoes online. How did they test this assumption? 21 21
- 22. Two Central Lean Startup Concepts The Minimum Viable Product (MVP) A “Minimum Viable Product” might be: • Learning: Onsite observation, fake menus, ads • Pitching: Preorders, comparisons, joint design • Experiencing: Concierge, prototypes Later releases focus on scaling Early releases focus on quickly & cheaply testing ideas The Pivot Based on what you learn, you might: • Target another customer group • Target a different need • Expand or contract feature focus • Change platforms or architecture • Change channels
- 23. Lean Canvas to draft Business Model, drive experiments Thanks to Ash Maurya, LeanCanvas.com
- 24. Example Lean Canvas for Sensei Sensei is an Agile retrospective tool by LitheSpeed. See www.senseitool.com
- 25. Overcoming the fear of being “salesy”
- 26. Watching users in action
- 27. Quantitative A/B & Multivariate Testing Split (A/B) testing randomly presents users with competing versions of specific application pages and features. • • See what works best by running parallel experiments Choose the winning option after appropriate time Header Sign up form Demo movie Story 58% of visitors signed up A B Header Story Demo movie Sign up form 35% of visitors signed up
- 28. A/B Testing Adding the term “distributed teams” to the Value Proposition resulted in a 60% increase in registrations 28
- 29. Engaging the customer | Live Chat 29
- 30. The Pivot, Lessons Learned • • • • • • Focus on distributed teams Simplified workflow Power versus casual users Face-to-face customer feedback Will you buy it? Customer validation is crucial to product market fit Agile delivery with a trusted team is a must! 30
- 31. Lean + Agile Innovation Process Find the right product market fit… Customer Discovery Customer Valida3on Pivot Then execute and iterate on it incrementally. LEAN FEATURE VALIDATION AND ELABORATION Product Backlog AGILE FEATURE DELIVERY AND RELEASE Dual Track Development Lean Validation and Design in parallel with Agile delivery
- 33. We Learn Fast and Iterate Iterating allows you to move from vague idea to validation, realization and ongoing enhancement. 1 2 3 4 5
- 34. Parallel Collaborative Design & the Design Studio Describe Key Goals & Context Select Designs to Iterate Steal Ideas & Try Again 2-3 cycles Sketch Designs Independent ly Share Designs Design Studio Approach Benefits: • Rapid idea generation & iteration • Avoid missed opportunities • Buy-in across team(s)
- 35. Sensei – Product Backlog
- 36. Sensei – Dual Track Development STREAM OF VALIDATED FEATURES LEAN FEATURE VALIDATION AND ELABORATION AGILE FEATURE DELIVERY AND RELEASE INVALIDATED 36
- 37. “Pirates” can be quite instructive… “PIRATE” METRICS
- 38. Lean + Agile Innovation Process Find the right product market fit… Customer Discovery Customer Valida3on Pivot Then execute and iterate on it incrementally. LEAN FEATURE VALIDATION AND ELABORATION Product Backlog AGILE FEATURE DELIVERY AND RELEASE Dual Track Development Lean Validation and Design in parallel with Agile delivery
- 39. Notes for the Enterprise
- 40. How do we scale Lean Innovation to the Enterprise? What are the “spaces” that drive creativity and innovation? 1. Slow hunches take time to incubate and evolve 2. Good ideas come from the collision between smaller hunches 3. Increases in connectivity correspond to increases in innovation 4. We need to create systems and spaces that allow ideas to collide, combine and evolve “Chance favors the connected mind.” - Steven Johnson, Author of Where Good Ideas Come From
- 41. Lean for the Enterprise @ Capital One* 1. Hire only the best digital talent and then massively empower them 2. Designed new workplace environments to spark innovation 3. Retooled consumer insights generation 4. Don’t create business cases first – Build and test prototypes to create the business case 5. Build concierge-based solutions before we build the technology 6. Measure success as customer engagement rather than unit production *Gagan Kanjlia, Senior Vice President, Capital One Bank
- 42. Keys to Lean Innovation on Agile Teams 1. Small, agile teams with the right people are crucial to innovation 2. When combined with Agile, Lean Startup & Design Thinking are especially beneficial for consumer-facing companies 3. Scaling requires leadership to create incubation environments where ideas can collide, combine and evolve 4. A disciplined Lean + Agile process that facilitates Customer Development along with Agile Delivery can drive world-class innovation
- 43. Contact Us for Further Information Sanjiv Augustine President Sanjiv.Augustine@LitheSpeed.com Twitter: @saugustine, @lithespeed Arlen Bankston Executive Vice President Arlen.Bankston@LitheSpeed.com On the Web: http://www.lithespeed.com http://www.senseitool.com "I only wish I had read this book when I started my career in software product management, or even better yet, when I was given my first project to manage. In addition to providing an excellent handbook for managing with agile software development methodologies, Managing Agile Projects offers a guide to more effective project management in many business settings." John P. Barnes, former Vice President of Product Management at Emergis, Inc.