product development in the land of the free - simon baker & gus power
Post on 22-Jan-2015
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High-level, easily digested
Personal experiences working with different organizations, large and small in a variety of domains
We often try to deal with the problem at hand
We seldom step back and question the constraints and assumptions
As an experiment we worked with a few organizations to completely change their approach to product development
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Product Development in the Land of the Free
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If youre tweeting, these are the twitter tags for the session
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Our purpose is to get and keep customers by providing products they want with great quality of service
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Our goal is to delight customers
Whos working on something right now that is delighting customers?
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Our goal is not do delight shareholders
Making money is mandatory
But fixation on profit and obsession with costs is a sure way to become detached from customers
Making money is a consequence of delighted customers
Deming said: Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them
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There are lots of people who could be considered customers + they have different needs
[ product is a customer ]
[ 16x16 icon ]
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We must balance our deliveries to meet their needs
We need customers to share a vision, have common goals + provide consensus on priorities
This isnt easy
** Different languages [ folk-it | business process engineering ] + different places + busy
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Theres arent many delighted customers out there
But we knew this
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Change is all the rage
IT is awash with improvements
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It still doesnt feel like its any easier to get stuff done
How many people here are pair-programming? [ pair-programming health + safety ]
[ 11th hr conf call ]
[ 6m/27k to move desks ]
[ case of beer ]
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Look what might be needed to get something out the door
[ 20 ppl in a room ]
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Were over-organized
[ cio org on a whiteboard ]
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Were separated by specialty
Its common to have core platforms + infrastructure
With centralized teams providing services like build, testing and release management
Centralization comes at the cost of complexity dependencies, bottlenecks, waste
[ stakeholder meeting ]
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Its difficult to understand the big picture
When all we see is part of the product through a window in our silo
We end up chasing local targets + creating local optimizations
[ velocity over value ]
[ software != product ]
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Its just all too complicated
Conways Law: Organizations are constrained to produce designs which are copies of their communication structures
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Most changes tackle symptoms
The underlying problems remain
People go back to how they used to work like zombies back to the shopping mall
[ nhs attitude to turnaround teams ]
Dealing with complexity goes in the too hard box
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The trend here suggests that size does indeed matter!
[ click ]
Complexity is not a setup for success
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The unspoken truth is that failing conventionally is the status quo
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So we asked ourselves
In the land of the free where we can do whatever we want
What would be the simplest operating model we could use to delight customers?
[ describe diagram ]
Product streams are like small companies, running their own business autonomously
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SIMON:
If we were to attempt this change, small continuous improvements only get us so far
We know theres a better place to start from, then lets start from there
GUS:
A radical overhaul allows us to remove endemic waste
How would we get support for such a dramatic change?
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We seize a crisis or create one
We were invited in by the CTO to rescue a project that had been going for 18 months without visible progress
Core platform off-shored to India
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Its crazy to make such a big change without first understanding the system structure, people, process
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Executives must acknowledge a crisis exists
Speak plainly using real data + talk in terms of risks + costs, capacity, throughput + inventory rather than utilization + productivity
Provide options
Focus on a single product because it limits financial investment + contains risk
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To sustain a big change we need executive support on tap
Everything we do from here is about building executive confidence in their decision
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We have to make the change quickly before any doubt sets in
Moving at speed allows us to test whether their support is real or not
[ built a technical capacity + used a scheduled office move to collocate with business ]
[ removed unnecessary stakeholders and eliminated dependencies ]
[ removed people from silos + broke reporting links so that they worked on the product full-time ]
[ ignored existing software and infrastructure ]
[ set up environments ]
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Treat everything as a PR event
Get noticed by as many customers as possible
Start with an important and visible activity that gives them value
[ built designs out into html so they could start playing with the experience ]
We worked with the CTO to sell what was happening upwards and out
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Clock is ticking so forget grand strategy
Make a splash with something small
[ sponsors head was full of world domination - shipped a public alpha in 9 weeks ]
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Produce continuous results that keep customers engaged
Shipped public beta in 17 weeks + launched in 20 to the delight of various customers
[ business sponsor was happy to have product live ]
[ editors were happy with their new publishing system ]
[ PMO + finance people were happy we didnt blow the budget ]
[ cto was excited by the new approach ]
[ permanent staff revitalized with renewed passion for their jobs ]
Dont be surprised if other people are polarized
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To build momentum flow must be protected
Work continuously to eliminate waste + remove sources of special cause variation
[ cag, release management. i+o war of attrition ]
Build in resilience by growing generalized specialists
Invest continuously to achieve repeatability through automation
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Process + structure changes without changes in peoples attitude + thinking is just posturing
New status quo sets in quickly
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Change starts with ourselves
Theres are no new ideas
Only new behaviors
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How do we know customers delighted?
How do we know if were getting better?
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We learned we must continually rediscover our customers
We must listen to the voice of customers
If we dont we rely on our assumptions + we stop delighting them
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We need to measure how we are doing in terms of our purpose, which is to get and keep customers
Visualize the data
Analyze the results so we can understand and get knowledge about the system
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The simplest thing is to canvas the mood of customers
Its subjective but its a useful litmus test
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Also watch for trends in product-specific measures
170M page views per month and 5M uniques per month
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As an overall performance indicator we use a simplified profit and loss
Everything is a direct cost. No assets
There is only the cost of capacity
What were essentially doing is managing by cash-flow rather than by balance sheet
It doesnt replace normal accounting
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[ green is the throughput ]
[ red is the inventory, i.e. cards that are completed but are queuing for release ]
[ orange is the various stages of wip ]
[ cycle time measured from exit from backlog to release ]
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[ first 9 weeks we built inventory then it was flushed ]
[ sobering to visualize the money sleeping in inventory and wip ]
Sleeping money is calculated from Cost per Card
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Is a measure of the ability sustain throughput + minimize failure demand
[ failure demand is rework when something doesnt meet customer needs debt + defects ]
[ defects fixed immediately ]
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Use these measurements to listen to the voice of the system
Separate signals from noise + validate assumptions to stop speculation
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Owned by people doing the work theyre in best position to know how to improve system
Not to let us set targets
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Weve been talking about 1 product
How does this scale?
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At the organization level there are lots of projects
Identified different types of product stream were identified
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Realized conventional PMO, being cost focused + project-oriented
Wasnt setup to manage portfolio as system of products
It had no technical input
Budgeting was financial exercise + lacked operational reality + didnt consider customer demand
[ 10% budget reduction applied equally ]
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Whats the simplest governance model we need?
Business director providing direction + realizing business goals + liaising with senior stakeholders
Program manager dealt with organizational noise
Change agents transformation, delivery expertise + technical input to investment process
Financial controller
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Purpose is to improve the operational + financial effectiveness of portfolio
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Rather than being cost-based the hub focused on the flow of value, delivery of quality + the elimination of waste
See where costs are generated
Strategy was to 1st increase revenue, reduce costs retaining capacity, cut costs + capacity
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Provided safe environment + nurtured culture of continuous improvement
Encouraged a friendly rivalry between product streams
Didnt compete for investment
Helped each other solve problems + Shared improvements
Rotated people to encourage cross-skilling + propagate knowledge
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Champion of effectiveness over efficiency
Resisted enterprise initiatives from the wider organization
[ enterprise ]
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Weve used PDCA to test our delivery capability
[ 80% of project risk is Market risk that your building the wrong product for the wrong price or to a group of customers you can't reach ]
Everything is a hypothesis until its validated by paying customers
By implanting a rapid iterative delivery capability into day-to-day business operations
Weve enabled business people to continually test business plans | marketing | editorial content
Quarterly product chartering with incremental funding based on market performance
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Theres increasing furore in this country about big IT failures, particularly in Government
[ petition ]
So it seems the ideal opportunity to send this message
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Thank you
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