product development in the land of the free - energized work presentation

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Creating and sustaining a system for effective product development isn’t easy. The fact that so many software projects are still failing tells us that we should be doing something very different. With lessons learned from eXtreme Programming, Scrum and systems approaches such as Lean Thinking and the Theory of Constraints, this session explores the things we’ve been doing beyond the agile comfort zone to improve the effectiveness and throughput of product development and increase business agility.

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product development in the land of the free

the test-driven organization 24-Sep-10

Simon Baker Twitter - @energizr Skype - simon.energizr simon@energizedwork.com

Gus Power Twitter - @guspower Skype - gus.j.power gus@energizedwork.com

2 © 2010 Energized Work - www.energizedwork.com

Twitter:

#landofthefree #lkbe10

3 © 2010 Energized Work - www.energizedwork.com

http://www.energizedwork.com/ sessions/landofthefree

Session stuff at:

4 © 2010 Energized Work - www.energizedwork.com

Our purpose is to get and keep customers

5 © 2010 Energized Work - www.energizedwork.com

Delight our customers

6 © 2010 Energized Work - www.energizedwork.com

the goal is to make money - Goldratt

‘‘

7 © 2010 Energized Work - www.energizedwork.com

Business Sponsor

Managing Director

The Product

Integrators

Support

Operations

Subscribers

Editors

Program Management

Channel Producers

Sales

Brand

Marketing

CTO

USERS

STAKEHOLDERS CUSTOMERS

8 © 2010 Energized Work - www.energizedwork.com

Understand demand Common goals Consensus on priorities

Balanced delivery

9 © 2010 Energized Work - www.energizedwork.com

2000 2002 2004 2006 2008

20

40

60

80

100

0

%

Failed and marginal projects – Standish Report, Chaos Data

10 © 2010 Energized Work - www.energizedwork.com

Scala

Eclipse Scrumban

Scrum

Backlog

Groovy on Grails

Pomodoro Technique

Domain-driven design

Continuous Integration

Flow

UML

Ruby on Rails

Feature Injection

REST

Visual Studio

Kanban

.NET

Dependency Injection

Acceptance test-driven

development

IntelliJ

XML

Theory of Constraints

Lean Thinking

Visualization

BDD

Agile

Extreme Programming

User Stories

Systems Thinking

SoA

jQuery

Pair Programming

TDD

Continuous Improvement

Automation

Selenium Spock

jUnit

Iterative Development

11 © 2010 Energized Work - www.energizedwork.com

Doing the right thing isn’t getting easier

12 © 2010 Energized Work - www.energizedwork.com

Information Architecture

Disaster Recovery

Business Planning

Systems Administration

Project Management

Architecture

Usability Testing

Graphics Design

User Acceptance

Branding

SEO

Regulatory Compliance Marketing

Analysis

Budgeting

Software Development

Testing

Support

Sales Interaction

Design

Capacity Planning

Business Intelligence

Legal

Training

13 © 2010 Energized Work - www.energizedwork.com

Organizations are over-organized

14 © 2010 Energized Work - www.energizedwork.com

Centralization comes at the cost of complexity

Marketing Sales Design Build Test Support

PRODUCT

15 © 2010 Energized Work - www.energizedwork.com

PRODUCT

Making good decisions is difficult if we can’t see

Edicts Targets

Local optimizations

Limited view of the product

16 © 2010 Energized Work - www.energizedwork.com

Too complicated

17 © 2010 Energized Work - www.energizedwork.com

TOO

HARD

Dealing with the real"problems is avoided

18 © 2010 Energized Work - www.energizedwork.com

Successful projects by size – Standish Report, Chaos Data

< $750K $750K – 1.5M

$1M – 3M $6 – 10M > $10M

20

40

60

80

100

0

%

19 © 2010 Energized Work - www.energizedwork.com

It is better to fail conventionally, than to succeed unconventionally

- John Maynard Keynes

‘‘

20 © 2010 Energized Work - www.energizedwork.com

Content Delivery Capability

Sales

Business Direction

Users

PRODUCT STREAM

21 © 2010 Energized Work - www.energizedwork.com

Way of working

Effectiveness

Transformative change to a better place to start from

Small improvements may only improve the system to a point

22 © 2010 Energized Work - www.energizedwork.com

Find a lever by seizing a crisis or by creating one

- Lean Thinking, Womack and Jones

‘‘

23 © 2010 Energized Work - www.energizedwork.com

Understand the system

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Acknowledge the crisis Speak plainly Provide options

Executive readiness

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Make a joint commitment Build executive confidence

Executive partnership

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Setup quickly

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Do something that can’t be ignored

28 © 2010 Energized Work - www.energizedwork.com

Forget grand strategy for the moment

- Lean Thinking, Womack and Jones

‘‘

29 © 2010 Energized Work - www.energizedwork.com

Produce immediate results

30 © 2010 Energized Work - www.energizedwork.com

Protect flow

31 © 2010 Energized Work - www.energizedwork.com

Changing process and structure without changing the way people think is just posturing

32 © 2010 Energized Work - www.energizedwork.com

Everyone thinks of changing the world, but no-one thinks of changing himself

- Leo Tolstoy

‘‘

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Are our customers delighted? Are we getting better?

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Continually rediscover our customers

35 © 2010 Energized Work - www.energizedwork.com

Measure how we’re doing Visualize data Analyze results

Learn

36 © 2010 Energized Work - www.energizedwork.com

CTO Sponsor Editors Channels PM

23/1

0

30/1

0

06/1

1

13/1

1

20/1

1

27/1

1

04/1

2

11/1

2

18/1

2

24/1

2

08/0

1

15/0

1

22/0

1

29/0

1

05/0

2

12/0

2

19/0

2

26/0

2

04/0

3

11/0

3

18/0

3

25/0

3

01/0

4

08/0

4

15/0

4

22/0

4

29/0

4

06/0

5

13/0

5

20/0

5

27/0

5

03/0

6

10/0

6

17/0

6

24/0

6

01/0

7

08/0

7

15/0

7

22/0

7

29/0

7

05/0

8

12/0

8

19/0

8

26/0

8

02/0

9

Mood of the Customers

Positive Meh Negative

Customer mood

37 © 2010 Energized Work - www.energizedwork.com

Usage example

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

02/01 09/01

Uniques

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

J A

Page Views

38 © 2010 Energized Work - www.energizedwork.com

Profit and loss

-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

£

[ Accumulated ] Profit, Revenue and Capacity Cost

Capacity Cost Profit Revenue

39 © 2010 Energized Work - www.energizedwork.com

Flow and cycle time

0

5

10

15

20

25

30

35

40

23/1

0 30

/10

06/1

1 13

/11

20/1

1 27

/11

04/1

2 11

/12

18/1

2 25

/12

01/0

1 08

/01

15/0

1 22

/01

29/0

1 05

/02

12/0

2 19

/02

26/0

2 04

/03

11/0

3 18

/03

25/0

3 01

/04

08/0

4 15

/04

22/0

4 29

/04

06/0

5 13

/05

20/0

5 27

/05

03/0

6 10

/06

17/0

6 24

/06

01/0

7 08

/07

15/0

7 22

/07

29/0

7 05

/08

12/0

8 19

/08

26/0

8 02

/09

Day

s

Average Cycle Time [ Per Week ]

0

20

40

60

80

100

120

140

23/1

0 30

/10

06/1

1 13

/11

20/1

1 27

/11

04/1

2 11

/12

18/1

2 24

/12

08/0

1 15

/01

22/0

1 29

/01

05/0

2 12

/02

19/0

2 26

/02

04/0

3 11

/03

18/0

3 25

/03

01/0

4 08

/04

15/0

4 22

/04

29/0

4 06

/05

13/0

5 20

/05

27/0

5 03

/06

10/0

6 17

/06

24/0

6 01

/07

08/0

7 15

/07

22/0

7 29

/07

05/0

8 12

/08

19/0

8 26

/08

02/0

9

Sto

ries

Flow [ Per Week ]

THROUGHPUT INVENTORY STARTED READY TO START PREPARED

40 © 2010 Energized Work - www.energizedwork.com

Cost of inventory and wip

0

50

100 Inventory [ Per Week ]

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

23/1

0 30

/10

06/1

1 13

/11

20/1

1 27

/11

04/1

2 11

/12

18/1

2 24

/12

08/0

1 15

/01

22/0

1 29

/01

05/0

2 12

/02

19/0

2 26

/02

04/0

3 11

/03

18/0

3 25

/03

01/0

4 08

/04

15/0

4 22

/04

29/0

4 06

/05

13/0

5 20

/05

27/0

5 03

/06

10/0

6 17

/06

24/0

6 01

/07

08/0

7 15

/07

22/0

7 29

/07

05/0

8 12

/08

19/0

8 26

/08

02/0

9

£

Total Sleeping Money

Inventory Started WIP Ready to Start WIP Prepared WIP

0

5

10

15

20

25

Sto

ries

WIP [ Per Week ]

41 © 2010 Energized Work - www.energizedwork.com

Effectiveness

-30

-20

-10

0

10 Rework [ Per Week ]

Repaid Debt Fixed Defects Debt Defects

0%

20%

40%

60%

80%

100%

Effectiveness [ Per Week ]

0

20

40

60

80

100

120

Sto

ries

Throughput [ Per Week ]

42 © 2010 Energized Work - www.energizedwork.com

The purpose of analysis is to give us insight

- Understanding Variation, Wheeler

‘‘

43 © 2010 Energized Work - www.energizedwork.com

Improve the system Distort the system Distort the data

Targets drive the wrong behaviors

- John Seddon

44 © 2010 Energized Work - www.energizedwork.com

As soon as you’ve got momentum expand your focus

- Lean Thinking, Womack and Jones

‘‘

45 © 2010 Energized Work - www.energizedwork.com

Battleship Service Journeyman

Product streams

46 © 2010 Energized Work - www.energizedwork.com

Manage the portfolio as a system of products

47 © 2010 Energized Work - www.energizedwork.com

Program Management

Change Agency

Financial Control

Business Direction

PRODUCT HUB

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Purpose is to improve the portfolio’s performance by helping product streams improve their operational and financial effectiveness

49 © 2010 Energized Work - www.energizedwork.com

Focus on the flow of value to customers, the delivery of quality and the elimination of waste

50 © 2010 Energized Work - www.energizedwork.com

Create a safe environment for people to experiment and learn

51 © 2010 Energized Work - www.energizedwork.com

The curse of enterprise thinking

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Test-drive the organization

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54 © 2010 Energized Work - www.energizedwork.com

See the status quo and break with tradition

55 © 2010 Energized Work - www.energizedwork.com

Make an enemy of complexity

56 © 2010 Energized Work - www.energizedwork.com

Measure the work from the customers’ point of view

57 © 2010 Energized Work - www.energizedwork.com

58 © 2010 Energized Work - www.energizedwork.com

http://www.energizedwork.com/ sessions/landofthefree

Session stuff at:

59 © 2010 Energized Work - www.energizedwork.com

License

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To remix – to adapt the work

Under the following conditions:

Attribution – You must attribute the work in the manner specified by Energized Work (but not in any way that suggests that Energized Work endorse you or your use of the work).

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This presentation is provided under the Creative Commons Attribution Share Alike 3.0 Unported License.

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