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1 Driving Lean Innovation in Agile Teams Presented by Arlen Bankston @abankston, @lithespeed

2 About Me Arlen Bankston Co-Founder of LitheSpeed, LLC User experience & product development background 15 years of Agile experience Lean Six Sigma Master Black Belt Lately 40% training, 20% each of coaching, product development & management 2

3 Sensei Story Agile Blues, Lean Startup Lean + Agile Innovation Holistic Discovery Risk-Driven Product Backlog Exploratory Sprints Data-Driven Sprint Review Lean & Agile at Established Companies Agenda “Life’s too short to build something nobody wants.” Ash Maurya, Lean Entrpreneur, Author of Running Lean. “Life’s too short to build something nobody wants.” Ash Maurya, Lean Entrpreneur, Author of Running Lean. 3

4 Sensei Story 4

5 First, an Idea! 5 Sensei is an Agile retrospective tool by LitheSpeed. A tool to facilitate Continuous Improvement via the Scrum Retrospective

6 Quickly built a prototype 6

7 And, we took it on the road 7

8 Everyone said this was the best thing since… 8

9 And so… 9 Built, Built, Built Built some more Lost our Team, Got a New Team

10 Build and they will come? Customer Discovery Feature Development 10

11 Agile Blues, Lean Startup 11

12 Risks of Agile 1. Backlog items are not always validated against true end-user needs 2. Critical reliance on a fallible Product Owner 3. Lack of clear advice on how and when to “pivot” 4. IT bias… fall back on what we know: build, build, build 12

13 Now What? Solution crafted, few customers No ideas on how best to proceed Keep building? But…we’re almost out of runway! 13

14 A Serendipitous Epiphany 14

15 The Lean Startup Cycle: Build-Measure-Learn Know your customer Start small Fail fast Test relentlessly Seek customer validation at all levels 15

16 Lean Discovery + Agile Delivery Illustrated D ISCOVER Y

17 Holistic Discovery Assessing key customers, problems & markets

18 Iterative Risk Management 18

19 Test Your Riskiest Assumption What critical assumptions would sink your business case if untrue? We assumed that most agile teams did (or at least wanted to do) retrospectives. Do your teams?

20 Discovering Customer Needs [In]validate your assumptions by: 20 Interviewing users Observing users in their native environments Manually simulating your system (“concierge”) Rapid usability testing Tracking behavior of customer cohorts (related groups)

21 Parallel Collaborative Design & the Design Studio 21 Design StudioDesign Studio Approach Benefits: Rapid idea generation & iteration Avoid missed opportunities Buy-in across team(s) Benefits: Rapid idea generation & iteration Avoid missed opportunities Buy-in across team(s) 2-3 cycles

22 Sensei Lean Startup 22 STREAM OF VALIDATED FEATURES Lean Feature Validation & Elaboration Invalidated Agile Feature Delivery & Release

23 Lean Canvas to draft your Business Model Thanks to Ash Maurya, 23 Draft your business case in a simple, single-page format, and adjust based upon the results of your interviews, prototypes and releases.

24 Example Lean Canvas for Sensei

25 Risk-Driven Product Backlog Challenging & testing your assumptions

26 The MVP A “Minimum Viable Product” might be: Learning: Onsite observation, fake menus, ads Pitching: Preorders, comparisons, joint design Experiencing: Concierge, prototypes Early releases focus on quickly & cheaply testing ideas. Later releases focus on scaling. 26

27 MVP Pivot Key Differentiators Flexibility & Safety Scaling & Optimization Story A1 A2 A3 B1 B2 C1 C2 C3 D1 D2 B3 Epic 1 Epic 2 Key Activity Major Component Plan Releases & Pivots with a Story Map 27

28 Unbounce for Landing Pages You can create dynamic landing pages that help you tune your pitch and garner pre-orders with tools like Unbounce.

29 Validation Board for Experimentation 29 Plan and track experiments to test your assumptions about customers, problems & solutions. Pivot based upon the results that you see.

30 Adjusting the Plan Based on what you learn, you might: Stick to the plan Target another customer group Target a different need Expand or contract feature focus Change platforms or architecture Change channels Kill the idea entirely Persevere, pivot or punt. 30

31 Exploratory Sprints Quick, cheap ways to validate your approach

32 Concierge to Test without Coding A manual simulation of your product or service.

33 Overcoming the fear of being “Salesy” 33

34 Balsamiq Mockups for Low-Fi Prototyping Test layouts and flows without coding or graphic design.

35 Data-Driven Sprint Review Using data to drive decisions

36 Lean Canvas as Dynamic Dashboard 36 Think of your project as a set of small experiments. The results of these experiments should be simply stated and reviewed regularly to guide decisions about product direction. Thanks to Ash Maurya, author of Running Lean:

37 “Pirate” Metrics & Customer Funnels 37 How many users are interested and find you? Preorders, signups, ad responses How is their experience when they do? Successful runs through key use case Do they stick around for the long run? 30, 60, 90 day retention by cohort Do they pay? Ratio of paying users or ROI Do they tell their friends? Successful recommendations Thanks to Dave McClure

38 Validating Product Increment Analyzing & evolving your production system

39 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 Header Sign up form Demo movie Story 58% of visitors signed up 35% of visitors signed up AB

40 A/B Testing Sensei with Optimizely We found a 60% increase in registrations just from adding the term “distributed teams” to our landing page.

41 Zopim Live Chat We envisioned live chat to be largely a help tool, but it ended up connecting us with our most passionate early adopters.

42 Watching users in action 42

43 Lean & Agile at Established Companies

44 Challenges to Innovation at Large Corporations 1. Talent 2. Heavy Governance 3. Heavy duty consumer research processes 4. Decision culture centered around HIPPO (Highest Paid Person’s Opinion) 5. Success measured as # of units 6. Culture that frowns upon pivots 44

45 Lean for the Enterprise at Capital One* 1. We hire only the best digital talent and then massively empower them 2. We have designed new workplace environments to spark innovation 3. We have retooled the way we do consumer insights generation 4. We don’t create business cases first - We build and test prototypes to create the business case 5. We build concierge based solutions before we build the technology 6. We measure success as customer engagement rather than unit production 45 *Gagan Kanjlia, Senior Vice President, Capital One Bank

46 Thank You!

47 Reading List – Lean & Agile Innovation Running Lean – Maurya Essential Scrum – Rubin The Entrepreneur's Guide to Customer Development – Vlaskovits The Lean Startup – Ries Discover to Deliver – Gottesdiener The Other Side of Innovation – Govindarajan Four Steps to the Ephiphany – Blank Business Model Generation – Osterwalder

48 Contact Us for Further Information 48 Arlen Bankston Executive Vice President On the Web: "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.

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