creating a lean and agile enterprise - the lean product lifecycle
TRANSCRIPT
CREATING A LEAN & AGILE ENTERPRISE
CRAIG STRONG
@craigstrong
uk.linkedin.com/in/craigstrong/
Craig StrongChief Technology Officer
www.LeanProductLifecycle.com
THE WORLD HAS CHANGED!
UNCERTAINTY—IN THE ECONOMY, SOCIETY, POLITICS—HAS BECOME SO GREAT AS TO RENDER FUTILE, IF NOT COUNTERPRODUCTIVE, THE KIND OF PLANNING MOST COMPANIES STILL PRACTICE: FORECASTING BASED ON PROBABILITIES
Peter Drucker
THE NEED FOR ADAPTIVE MANAGEMENT
ANNUAL PERFORMANCE TRAP
Jeremy Hope, 2003. Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap. Edition. Harvard Business Review Press.
TRADITIONAL MODELS ARE CHANGING
ENTERPRISE INVESTMENT STRATEGIES
High Probability
Low Probability
Low Impact
Most Organisations
High Impact
Start Ups
INNOVATION FUNNELS LIMITED IN ENTERPRISES - GOVERNANCE
New Ideas
Products
Long development time 18 months+
Bottleneck of ideas
LEAN & AGILE PRODUCT DEVELOPMENT
“THE LEAN STARTUP METHOD TEACHES YOU HOW TO DRIVE A STARTUP-HOW TO STEER, WHEN TO TURN, AND WHEN TO PERSEVERE-AND GROW A BUSINESS WITH MAXIMUM ACCELERATION.”
http://theleanstartup.com/principles
LEAN STARTUP
BASIC AGILE PRINCIPLES
COMPLEX SIMPLICITY
EXECUTION VS DISCOVERY
CONTEXT IS EVERYTHING! - CYNEFIN
LEAN PRODUCT LIFECYCLE
BUILDING AN INNOVATIVE ENTERPRISE
TRANSFORMATION AREAS
1.Lean Product Lifecycle 2.Product Portfolio Management 3.Annual Budgeting 4.Communities 5.Training & Coaching
PRODUCT LIFECYCLE FRAMEWORK - STAGE QUESTIONS
Can you identify a core user problem in a target market?
Are there real customers who get value from your concept? Is there a viable business model for this product?
Can you demonstrate Product/ Market Fit or validated business model?
How fast are you growing the business at scale? Are you continuing to deliver outcomes to a broader user set?
Are you delivering revenue and outcomes while reducing costs?
What residual value can be gleaned from the business?
Idea Explore Validate Grow Sustain Retire
SEARCHING & EXECUTING
Status Before Market-Fit After Market-Fit
Focus Searching for a Business Model Executing Against Business Models
Duration Days Weeks Months <1 Year Years
Metrics Customer Discovery, Innovation Accounting, Lean Analytics, Pirate Metrics Revenues, Profit-Margins, ROI, ARR, NPV
Key Activities
Small Cross-Functional Teams, Safe To Fail/Learn, Scrum/Kanban, Hypotheses Driven Design, Lean Startup -Complex/
Emergence, Devops
Delivery Frameworks, Scrum/Kanban, Portfolio, Growth Hypotheses Reviews,
Cross-Departmental Performance, Growth Performance Mgmt, Devops
SEARCH VS EXECUTE
BUSINESS MODEL INNOVATION
NON-LINEAR PROCESS
LEAN GOVERNANCE
MORE IDEAS, MORE BETS, MORE EXPERIMENTATION
Not all the ideas survive but all the learnings are recorded
All the ideas are quickly captured and tested
One to three months turnaround
LOTS OF SMALL BETS
PROJECTS VS PRODUCTS
LEAN EMERGENT GOVERNANCE
PRODUCT COUNCILSPORTFOLIO MANAGEMENT & PERFORMANCE
INTERNAL SKILLS MARKETPLACE
ADAPTIVE BUDGETING
KNOWLEDGE COMMUNITIES
1/4
SCALING FRAMEWORKSDESIGN THINKING/LEAN STARTUP
AGILE PRACTICES
1/4
CUSTOMER EVIDENCE !
GROWTH HYPOTHESES - RELATIVE PERFORMANCE
QuarterlyHypotheses
Product Metrics
Strategic Growth
Hypotheses
Legal
CULTURE & TEAMS
LEAN & AGILE - NOT JUST SOFTWARE TEAMS
FINANCE HR LEGAL DEV TEAM MARKETING SALES
WAGILE
CROSS-FUNCTIONAL KNOWLEDGE NETWORK - LEARNING ORGANISATION
* Agile and Lean feed in at a Principles level
Design Lead has been identified
Slice is engaged with the lifecycle
Everything is wrapped in Principles & Values, Governance and Quality
LEARNING & COLLABORATIVE COMMUNITIES
Today Tomorrow
DecentralizedNetwork
DistributedNetwork
Product team has better access to all parts of the business
Product team has restricted access to other parts of the business which can hinder or slow progress
CONTINUOUSLY IMPROVING - BE COMFORTABLE WITH DIFFERENCE
Open Source Product Lifecycle Criteria V1.0
Learning about practice
Common extensions can be incorporated into later versions
Open Collaborative Learning Community
INCLUSIVE LANGUAGE
TRAINING & COMMUNITY
Lean Startup Agile Design Thinking Beyond Budgeting Customer Interviews Minimal Viable Experiments MVP’s Lean Analytics Growth Hacking Hypotheses Business Model Experimentation Value Proposition Management Quality Community Contribution and More….
LEAN TRANSFORMATION TAKEAWAYS
1. AGILE/LEAN IS AN ORGANISATIONAL MINDSET 2. CONTEXT IS EVERYTHING! 3. SEARCHING ISN’T THE SAME AS EXECUTING 4. NURTURE COMMUNITIES AND KNOWLEDGE 5. BE COMFORTABLE WITH DIFFERENCE (HEURISTICS VS PROCESS)
THANK YOU
@craigstrong
uk.linkedin.com/in/craigstrong/