agile kaizen: agile product management - course slides

More at http://Slideshare.net/proyectalis

London, march 2015

Agile product management

Angel Medinilla

angel.medinilla@proyectalis.com www.proyectalis.com/en/AngelMedinilla

(Slides, Videos, Newsletter, Books, Blog, LinkedIn, Sketchnotes, Twitter...)

Twitter: @angel_m (would love some instant feedback!)

<vanity>

andrea darabos

angel.medinilla@proyectalis.com www.leanadvantage.com

Twitter: @adarabos (would love some instant feedback!)

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our Pleasure! </vanity>

Some logisticsTime shcedule?

Lunch? Restrooms? water? snakcs?

Pictures? LAptops, ipads

CHECK: FEEDBACK DOOR, RESOURCES BOARD, KUDOS BOARD, insights board

Free shoulder pain test- Can you all rise your right (or left) hand?

Who do we have here today?

AVENGERS: ASSEMBLE!

product metrics

Course structure

Kaizen culture Customer-focused product definition

Product Development via build-measure-

learn

Kaizen enablers

agile kaizen intro Metrics & goals

actionable metrics

funnel metrics

product management & product development

traditional vs. agile

pm process

defining opportunities: customer, problem, solution

validating your assumptions: MVE, MVP, MMFS

communicating your vision: product strategy & scope

defining your product: structure & stories

managing your backlogusing model canvas to gather your assumptions

Kaizen events

product metrics

exercise: what do you want to learn?

Kaizen culture Customer-focused product definition

Product Development via build-measure-

learn

Kaizen enablers

agile kaizen intro Metrics & goals

actionable metrics

funnel metrics

product management & product development

traditional vs. agile

pm process

defining opportunities: customer, problem, solution

validating your assumptions: MVE, MVP, MMFS

communicating your vision: product strategy & scope

defining your product: structure & stories

managing your backlogusing model canvas to gather your assumptions

Kaizen events

product metrics

Course structure

Kaizen culture Customer-focused product definition

Product Development via build-measure-

learn

Kaizen enablers

agile kaizen intro Metrics & goals

actionable metrics

funnel metrics

product management & product development

traditional vs. agile

pm process

defining opportunities: customer, problem, solution

validating your assumptions: MVE, MVP, MMFS

communicating your vision: product strategy & scope

defining your product: structure & stories

managing your backlogusing model canvas to gather your assumptions

Kaizen events

Agile kaizenwhat’s kaizen

Kaizen / kaikaku

Agile kaizenkaizen culture

Team / people kaizen process kaizen product kaizen

Agile kaizenCulture: noble cause, values, behaviors, artifacts

story telling cultural enablers / failure causes

kaizen enablers • Purpose: show them a noble cause, a global purpose beyond profits, company growth, and stakeholder wealth. Be open to change for the sake of a greater purpose.

• Learning and Long-term vision: people must be conscious of the effects of investment over time and the expected better state. Learning must be a real priority. Short-term urgencies must not seriously impact strategic goals.

• Whole system approach: Show them the whole picture and avoid the temptation of suboptimization. Be able to see root causes of the problems, not just their symptoms.

• Constant communication and sustained effort: in all ways, not just from managers to employees. Communication is part of our work, not just additional work. Continuous improvement must be sustained on a continuous base, not just on occasional events.

• Quality first: technical debt will cost more in the future than the cost of building quality into the product up front.

• Courage and the absence of fear: Everyone should be able to point at what they consider to be an impediment, a defect, or an improvement opportunity.

• Transparency: people should be able to question everything. Every trace of a ‘blame game’ culture must be eradicated. Internal politics and personalñ agendas shouldn’t drive company decisions.

• Empowerment and ownership: improving the system is everybody’s job. Ownership also means responsibility and accountability. Have enough resources to improve.

• Teamwork and self-organization: empowered individuals should actively seek to collaborate with each other. Teams should be able to plan and execute for improvement.

• Respect and Recognition: use constructive feedback and, especially, give recognition for individual and team contributions to company improvement.

exercise: kaizen enablers • Purpose

• Learning and Long-term vision

• Whole system approach

• Constant communication and sustained effort

• Quality first

• Courage and the absence of fear

• Transparency

• Empowerment and ownership

• Teamwork and self-organization

• Respect and Recognition

Kaizen events

Different kinds retrospectives

10 rules for good retrospectives retrospective canvas

exercise: product retrospective

exercise: product retrospective

Things we liked: maximize

impediments: remove or reduce

ideas, things to try

Kudos!

Last retrospective plan: what we tried, how were

the results

New plan: 4 - 5 things we are going to try, detailed as a plan

product metrics

Course structure

Kaizen culture Customer-focused product definition

Product Development via build-measure-

learn

Kaizen enablers

agile kaizen intro Metrics & goals

actionable metrics

funnel metrics

product management & product development

traditional vs. agile

pm process

defining opportunities: customer, problem, solution

validating your assumptions: MVE, MVP, MMFS

communicating your vision: product strategy & scope

defining your product: structure & stories

managing your backlogusing model canvas to gather your assumptions

Kaizen events

EXERCISE: PROduct managementWhat’s product Management?

HOW DO YOU DECIDE WHAT TO BUILD? HOW DO YOU KNOW WHEN ARE YOU READY TO START BUILDING?

PROduct managementThe “requirements gathering era”

PROduct managementThe “requirements gathering era”

PROduct managementThe “requirements gathering era”

PROduct managementThe “requirements gathering era”

PROduct managementThe “requirements gathering era”

PROduct managementThe “requirements gathering era”

PROduct managementFaster horses - Product Death Cycle (david j. bland)

Nobody uses our product

Ask customer what features Are missing

Build missing features

PROduct managementFaster horses - Product Death Cycle (david j. bland)

Nobody uses our product

Ask customer what features Are missing

Build missing features

Junk garage syndrome!

PROduct managementPRODUCT MANAGEMENT VS PRODUCT DEVELOPMENT

The visionary myth

PROduct managementfaster? more? - MAXIMIZE OUTCOME, NOT OUTPUT

the terrible truth

Too few features

Too many features

Magic features Meh...hate them

sweet spot++$$

++t ++Risk

Agile product developmentold style project management

closed projects - All or nothing

Agile product development“Project driven development”

Agile product developmentShared understanding - learn the context collaboration, communication, conversations

early and frequent delivery of valuable product increments adapting to change

Continuous improvement

Agile product developmentiterative and incremental development

Agile product developmentiterative and incremental development

Not “half baked cake”!!

exercise (20 min)Agile is better / more effective / more efficient than waterfall because... waterfall is better / more effective / more efficient than Agile because...

Agile product developmentclient-vendor anti-pattern: from waiters to doctors

Agile product developmentcross functional collaboration

COLLABORATIVE WORKSHOPS VS MEETINGS valuable, feasible, usable

keep conversations happening

Agile product developmentthe product management / core discovery team

“the three amigos” - triads

Agile product developmentthe product management / core discovery team

lean startupthe black hole in agility

lean startupBasically: be sure there’s a market that wants your product, before you build it

Problems users have Problems R&D team solves

???

lean startup

customer development build-measure-learn validated learning

assumptions and pivots

Start with a Vision “Organize world's information, make it universally accessible”

“Find and discover anything you might want to buy online” “ (Be) Worldwide Authority on Kids, Families and Fun”

“Be #1 car company in America & one of the great American brands” “(Find) my iPhone”

“Flirt with people near me” “File too big for email”

“Put a Man on the moon and back alive before 1970” “Run your own hospital online”

Vision: verb, target, outcome “Organize world's information, make it universally accessible”

“Find and discover anything you might want to buy online” “ (Be) Worldwide Authority on Kids, Families and Fun”

“Be #1 car company in America & one of the great American brands” “(Find) my iPhone”

“Flirt with people near me” “File too big for email”

“Put a Man on the moon and back alive before 1970” “Run your own hospital online”

Vision: make it about your customer “Organize world's information, make it universally accessible”

“Find and discover anything you might want to buy online” “ (Be) Worldwide Authority on Kids, Families and Fun”

“Be #1 car company in America & one of the great American brands” “(Find) my iPhone”

“Flirt with people near me” “File too big for email”

“Put a Man on the moon and back alive before 1970” “Run your own hospital online”

Exercise: 20 minutescraft your company / department / product / project / team / course group’s vision

verb, target, outcome use words, pictures, metaphors, stories

memorable, relevant, client focused, ambitious, feasible, tangible, time bound...

pm “process”Capture opportunities (canvas)

select / prioritize opportunities (executive board) validate opportunities (core discovery team) schedule opportunities (portfolio management)

deep-define opportunities (inception) break down opportunities (grooming)

execute opportunities (backlog) validate opportunities (demo)

pm “process”

pm “process”

Strategy meeting Strategy meeting

Portfolio Management - portfolio review meetings projects to be launched

vision, goals, priorities…..

Strategy meeting Strategy meeting

Portfolio Management - portfolio review meetings

sprint Planning, grooming, demo

release planning - product review

vision, goals, priorities…..

projects to be launched

Business epics Business epics

stories stories stories stories

Strategy meeting Strategy meeting

Portfolio Management - portfolio review meetings

sprint Planning, grooming, demo

release planning - product review

projects to be launched

vision, goals, priorities…..

Business epics Business epics

stories stories stories stories

Opportuniesproject-product-problem space

Opportuniesproject-product-problem space

*

OpportuniesDude’s Law

understand customers and users understand problems and envision solutions

validate completeness

Opportuniesframe ideas through conversations

craft a vision mile wide, inch deep

PLAN AHEAD (1-2 WEEK FOR 3-5 MONTHS)

opportunity canvas

(C) Jeff Patton - “User story mapping”

Business Model Generation Canvas

(C) alex osterwalder

Partners

Costs Revenues

Activities

Resources

Value Clients

Channels

Relationship

Value proposition canvas

(C) alex osterwalder

Lean canvas

(C) ash maurya

opportunities: Design thinkingEmpathize: understand your users

define: frame the problem Ideation: brainstorm, generate ideas

prototyping: physical form. show, don’t tell test: validate and refine

opportunities: Design thinkingEmpathize: user personas, impact mapping, empathy maps, user journeys, interviews……..

define: research, root cause analysis, journey maps ideation: brainstorm, reverse, break the pattern, get a rule out, impose constraints...

prototyping: story boards, low.fi prototype... test: mvp, poll, smoke test

Resource: bootcamp bootleg

EXErcise: opportunity canvas

(C) Jeff Patton - “User story mapping”

product metrics

Course structure

Kaizen culture Customer-focused product definition

Product Development via build-measure-

learn

Kaizen enablers

agile kaizen intro Metrics & goals

actionable metrics

funnel metrics

product management & product development

traditional vs. agile

pm process

defining opportunities: customer, problem, solution

validating your assumptions: MVE, MVP, MMFS

communicating your vision: product strategy & scope

defining your product: structure & stories

managing your backlogusing model canvas to gather your assumptions

Kaizen events

Assumptions!Core assumptions

customer-problem-solution elevator pitch

first stage validation validate vs. confirm

User assumptionUser centered design “the user”

users and customers Fine grain roles relationships user personas

orgzonas

user persona

user persona

Exercise: user persona

assumptionspersona = assumption

you are not your customer personas: doing it wrong

research and validate - interview, observe…….. keep personas at the center of your conversations

validating your assumptionspre-MVP validation (TTYFU) POST-MVP Validation (TTYFU)

iterate your assumptions using a product

Video: nordstrom innovation labs

mve / mvpminimum is less than minimum

create value Now what about “all or nothing”? product is not product - Mve

mvp vs mmfs mvp vs quality

validation: goal modelling

define key outcomes and results how can we tell we are successfull?

how would busines change? define key metrics for each goal

EXERCISE: MVESEVILLE’S HOTEL STORY….

PIVOTSelect riskiest assumptions

Run experiment if wrong: pivot one of your assumptions celebrate learning: learn, not launch

Some MVES / mvps- Simple prototype

- HiFi prototype (MockUps) - Brochure, Slides, Storyboards

- Survey - Wizard of Oz (Flinstoning, concierge )

- Flash video - Smoke test / 404

- A/B testing, Sub-set testing - Batching

- Outsourcing - Walled garden - Alpha environment

Validation board

mvp problems- confirmation bias - false negative - all or nothing

- visionary complex - too busy to learn

- needs more quality / features

opportunity —> ProductValidated! Product - market fit

core vision defined core assumptions tested: customer, PROBLEM, solution..

now, let’s build it! if the development team has still not been involved, now it’s time!

garrett ux stackstrategy: product vision, concept, main actors, goals, use context...

scope: specific roles and journeys<- first epics structure: workflows, sitemaps, navigation, tasks

skeleton: UX, interface, user flow, user interaction surface: look and feel, design

- Why are we here? - Vision / Pitch - Product Box - What it’s NOT

- Meet your neighbours / Project community - Show the solution

strategy - scope: inception deck- What doesn’t let us sleep

- Estimate size - Trade-offs

- How long it’s going to take

Resource “The agile samurai”

Why are we doing this? what are the goals? who can make it? who can stop it? who can help?

how can we change people’s behavior? how can they help? how can they stop us? what can we do to reach our goals? what can we deliver?

strategy - scope: impact map

strategy - scope: impact map

strategy - scope: impact map

strategy-scope: goal modelling

define key outcomes and results how can we tell we are successfull?

how would busines change? define key metrics for each goal

strategy-scope: metrix matrixmanagement 3.0

add several stakeholder views add several project dimensions measure different perspectives

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1.) Time)2.) Tools)3.) People)4.) Value)5.) Functionality)6.) Quality)7.) Process)

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scope: user personas

scope: user journeys

scope - structure: story boards

structure: story maps

Jeff Patton (httP://slideshare.net/nashjain/user-story-mapping)

Structure: story mapsRemember this slide?

Not “half baked cake”!!

structure: story maps

Jeff Patton (httP://slideshare.net/nashjain/user-story-mapping)

structure: story maps

Jeff Patton (httP://slideshare.net/nashjain/user-story-mapping)

structure: story mapswalking skeleton

end-to-end vs. module-based good, better, best

see it work - make it better - make it releseable group stories in themes (release, component, track, activity...)

show progres on map

exercise: story map - what did you do this morning to arrive at work?

- break stories down - What about other days?

- identify themes (clothes, hygiene, breakfast...) - What could be included / excluded? what could be done differently?

- What if something went wrong? - explore minimum set; explore aspirational / high added value set

stories

customer, problem, solution who, why, what

stories are not tasks card, conversation, confirmation

“done, done”

breaking down storiesbusiness size (goal) -> user size (need) -> development size (1-3 days)

faster, smaller, less riskier, more affordable products show progress, capture feedback, accelerate learning

don’t break huge things into tasks - build smaller things with smaller tasks

breaking down storieswhat can you defer (functionality, scalability, users, performance, automation, validation,

look’n feel...)? Look for “and”, “or”, “then”... breaker tool: conversations!!!!

exercise: elephant carpaccio- 3 Inputs: How many items, price per item, 2-letter state code

- Output total price - Discounts:

- $1K : 3% $5K : 5% $7K : 7% $10k : 10% $50k : 15% - State tax (over discounted price):

- UT : 6.85% NV : 8% TX : 6.25% Al : 4% CA : 8.25% - We want 10-20 User Stories (Slices)

- Each Slice: UI, input, output, visibly different from previous slice - 5 states comes before any discounts

- Validation and fancy GUI after 5 states, 5 discounts

slicing heuristicsworkflow steps

user roles user tasks / activities

screens screen elements

happy / unhappy path functionality

zero, one, many test cases / use cases acceptance criteria

business rules

complexity, risk data types / interfaces

single / multi user transient / persistent external dependencies manual / automate

api / UI / gui alternate paths

components platforms

UX requirements

surface: low-fi prototypes

as seen in...

Backlog management

prioritizationbacklog is a funnel, not a tunnel

there’s always more to do than capactity focus means saying “no” -> if you can’t say no, your “yes” means nothing

you need regular backlog grooming and trimming

prioritizationprioritize outcome and goals, not stories or features

you won’t make everyone happy have a publicly known selection and prioritization framework

prioritization frameworks- “hippo” (highest paid person’s oppinion ;)

- Kano model (must have, one dimensionals, delighters) - differenciator, spoiler, cost reduction, table stakes

- satisfaction vs. importance - risk vs. opportunity

- cost vs. benefit - cost of delay

- “buy me a feature” - user poll

- urgent vs. important - goal scoring / theme screening

release planning

estimation

EstimationThe nature of estimates

uncertainty cone

Estimation“two additional stories for every story”(Alistair cockburn)

uncertainty grows exponentially with size estimation vs. forecasting

uncertainty buffers / joe’s bucket / scrumban build less!

product metrics

Course structure

Kaizen culture Customer-focused product definition

Product Development via build-measure-

learn

Kaizen enablers

agile kaizen intro Metrics & goals

actionable metrics

funnel metrics

product management & product development

traditional vs. agile

pm process

defining opportunities: customer, problem, solution

validating your assumptions: MVE, MVP, MMFS

communicating your vision: product strategy & scope

defining your product: structure & stories

managing your backlogusing model canvas to gather your assumptions

Kaizen events

metrics and goals- qualitative & quantitative metrics

- Building metrics into goals

example: quicken

(c) Dan olsen

example: quicken

http://www.slideshare.net/dan_o/early-stage-web-product-management-by-dan-olsen

(c) Dan olsen

example: quicken

http://www.slideshare.net/dan_o/early-stage-web-product-management-by-dan-olsen

(c) Dan olsen

building metrics into goals- we believe that (customer segment) type of users have (problem description) type of

problem, which can be solved by (solution). We will know we are right when (quantitative metric outcome) and (qualitative metric outcome), which will lead to (KPI)

building metrics into goals- we believe that (new users) type of users have (completing the registration process) type of problem, which can be solved by (an improved ux on the registration process). We will know we are right when (percentage of drop offs diminishes) and (user satisfaction

increases), which will lead to (increased conversion rate)

actionable metrics vs. vanity metrics- metrics should hurt

- a change in a metric should move us to do something - everything we do should be an attempt to influence a metric

example: quicken

funnel- Acquisition - activation - recurrence - referral - revenue

Conversion rate- Acquisition - activation - recurrence - referral - revenue

funnel metrics (web)- Acquisition: CAC, campaign efficiency, channel effectiveness, unique visitors…..

- activation: time spent, bounce rate, registration completion - recurrence: repeat visitors, LTV, churn, cohort analysis

- referral: net promoter score, viral coefficient, customer satisfaction - revenue: ARPU, MRR

kpi’s- Acquisition: CAC, campaign efficiency, channel effectiveness, unique visitors…..

- activation: time spent, bounce rate, registration completion - recurrence: repeat visitors, LTV, churn, cohort analysis

- referral: net promoter score, viral coefficient, customer satisfaction - revenue: ARPU, MRR

Other metrics- usability

- performance - Community

- competitors - …...

Exercise: restaurant actionable metrics- Acquisition: ??….. - activation: ??.. - recurrence: ??.. - referral: ??.. - revenue: ??..

- Other metrics: ??..

some math...- churn = 1 / life time (months)

- ltv = arpu / churn - sample goals: ltv > 3 * CAC, CAC payback < 12 months…, conversion rate > 2%

retention is key!- high cost of acquiring customers = many customer unprofitable during their early life - increasing customer retention rates by 5% increases profits by 25% to 95% across a

wide range of industries (fred reichheld, “the loyalty effect”) - 1% to 2% retention = 2*LTV, 1/2 CAC

be careful!- Not everything that counts can be counted

- be careful with moral hazard - be careful with analysis paralysis

- correlation is not causation - don’t cargo cult metrics

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Thank you and... BLOG IT!!

(Oh, yes, and buy the books!) http://www.proyectalis.com/en/AngelMedinilla

More at http://Slideshare.net/proyectalis

http://creativecommons.org/licenses/by-nc-nd/3.0/

This presentation is based upon the ideas and work of many people. And while I’ve tried to recognize copyrights and give credit and attribution where possible, I cannot possibly list them all, so if you feel like there’s something that should be added, changed or

removed from this presentation, please drop me an e-mail at

angel.medinilla@proyectalis.com

Special thanks for this one to Eric Ries, alex osterwalder, ash maurya, and Jeff Patton