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Execute

with Customer
Experience Agility"
Zach Nies – Chief Technologist!
www.rallydev.com @zachnies! ©2013!
Zach Nies
@zachnies
Zach Nies, Chief Technologist
Rally Software
Faculty
University of Colorado at Boulder
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
Font Sampler"
http://en.wikipedia.org/wiki/File:Caslon-schriftmusterblatt.jpeghttp://media.kelbymediagroup.com/layersmagazine/images/columns/artoftype/may06/glyph-set.jpg
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I love to change
industries "
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Apply new

disciplines"
www.rallydev.com @zachnies! ©2013!
Become
disciplined
explorers…"
www.rallydev.com @zachnies! ©2013!
who know how to
balance
exploration

and execution"
www.rallydev.com @zachnies! ©2013!
Build what

people want"
www.rallydev.com @zachnies! ©2013!
Take advantage
of market
opportunities"
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What happened to
this company?"
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www.rallydev.com @zachnies! ©2013!
1 2 5
iPhone Released1
iPhone App SDK Released2
Android w/ Nav Released5
Major Recession3
3
iPhone App Released4
4
www.rallydev.com @zachnies! ©2013!
A lot can "
happen in

1.5 years."
www.rallydev.com @zachnies! ©2013!
Is your business
Agile enough?"
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Turn these
disruptions into
opportunities"
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What’s changing?"
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Time to excellence"
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http://en.wikipedia.org/wiki/File:Disruptivetechnology.gif
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http://en.wikipedia.org/wiki/File:Disruptivetechnology.gif
Excellence"
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Some examples…"
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1984!
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2006!
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About 20 years!
www.rallydev.com @zachnies! ©2013!
2001!
www.rallydev.com @zachnies! ©2013!
2006!
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5 years!
www.rallydev.com @zachnies! ©2013!
2007!
www.rallydev.com @zachnies! ©2013!
2010!
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3 years!
www.rallydev.com @zachnies! ©2013!
2010!
www.rallydev.com @zachnies! ©2013!
2012!
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2 years!
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2008!
www.rallydev.com @zachnies! ©2013!
2012!
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4 years!
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“The Tesla Model S outscores every other car

in our test Ratings.” – Consumer Reports!
www.rallydev.com @zachnies! ©2013!
1979!
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1989!
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10 years!
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5 years!
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2.5 years!
www.rallydev.com @zachnies! ©2013!
1.5 years!
www.rallydev.com @zachnies! ©2013!
1966!
www.rallydev.com @zachnies! ©2013!
1998!
www.rallydev.com @zachnies! ©2013!
About 30 years!
www.rallydev.com @zachnies! ©2013!
1995!
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2005!
www.rallydev.com @zachnies! ©2013!
10 years!
www.rallydev.com @zachnies! ©2013!
http://hbr.org/2013/03/big-bang-disruption/
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www.rallydev.com @zachnies! ©2013!
Disruption can
sneak up on you"
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Impact on
companies"
www.rallydev.com @zachnies! ©2013!
500
www.rallydev.com @zachnies! ©2013!
Question:"
!
How long does the average company
on this list survive?!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
1958: "
Average lifespan was 61 years!
!
2012: "
Average lifespan was 18 years!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
8 years!
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Incumbent
advantage

is going away "
www.rallydev.com @zachnies! ©2013!
Navigating
uncertainty

is critical"
www.rallydev.com @zachnies! ©2013!
Where does
uncertainty live?"
www.rallydev.com @zachnies! ©2013!
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
www.rallydev.com @zachnies! ©2013!
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
Where are you?"
www.rallydev.com @zachnies! ©2013!
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
Level of uncertainty"
www.rallydev.com @zachnies! ©2013!
What to do"
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
Operate"
www.rallydev.com @zachnies! ©2013!
What to do"
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
www.rallydev.com @zachnies! ©2013!
What to do"
Analyze

and Plan"
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
www.rallydev.com @zachnies! ©2013!
What to do"
Big

Companies"
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
www.rallydev.com @zachnies! ©2013!
Big
Companies"
http://www.flickr.com/photos/ironnickel/6076087519
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Startups"
http://www.flickr.com/photos/elcapitan/2387917709
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Dynamics of
uncertainty"
www.rallydev.com @zachnies! ©2013!
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
www.rallydev.com @zachnies! ©2013!
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
www.rallydev.com @zachnies! ©2013!
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
www.rallydev.com @zachnies! ©2013!
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
www.rallydev.com @zachnies! ©2013!
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
Disruption"
www.rallydev.com @zachnies! ©2013!
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
Disruption"
www.rallydev.com @zachnies! ©2013!
Aligning action

with uncertainty"
www.rallydev.com @zachnies! ©2013!
http://www.flickr.com/photos/isaacmao/380257543
Create a plan to
predict the future"
www.rallydev.com @zachnies! ©2013!
Market research"
Product definition"
Product requirements"
Detailed plan"
Alpha release"
Beta release"
Final release"
FIRST CONTACT WITH
CUSTOMERS"
www.rallydev.com @zachnies! ©2013!
Market research"
Product definition"
Product requirements"
Detailed plan"
Alpha release"
Beta release"
Final release"
FIRST CONTACT WITH CUSTOMERS"
www.rallydev.com @zachnies! ©2013!
Market research"
Product definition"
Product requirements"
Detailed plan"
Alpha release"
Beta release"
Final release"
FIRST CONTACT WITH
CUSTOMERS"
www.rallydev.com @zachnies! ©2013!
Market research"
Product definition"
Product requirements"
Detailed plan"
Alpha release"
Beta release"
Final release"
FIRST CONTACT WITH
CUSTOMERS"
www.rallydev.com @zachnies! ©2013!
Market research"
Product definition"
Product requirements"
Detailed plan"
Alpha release"
Beta release"
Final release"
FIRST CONTACT WITH
CUSTOMERS"
www.rallydev.com @zachnies! ©2013!
Market research"
Product definition"
Product requirements"
Detailed plan"
Alpha release"
Beta release"
Final release"
FIRST CONTACT WITH
CUSTOMERS"
www.rallydev.com @zachnies! ©2013!
Market research"
Product definition"
Product requirements"
Detailed plan"
Alpha release"
Beta release"
Final release"
FIRST CONTACT WITH
CUSTOMERS"
www.rallydev.com @zachnies! ©2013!
HOW MANY
GUESSES?"
www.rallydev.com @zachnies! ©2013!
FIRST CONTACT
WITH POTENTIAL
CUSTOMERS"
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www.rallydev.com @zachnies! ©2013!
http://www.flickr.com/photos/oregondot/4132135156
www.rallydev.com @zachnies! ©2013!
Obscure

the uncertainty

with details of a
false precision"
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Embrace, reveal
and mitigate

the uncertainty"
www.rallydev.com @zachnies! ©2013!
Why does this

feel unnatural?"
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www.rallydev.com @zachnies! ©2013!
“we have but vaguely
appreciated the
importance of the larger
question of increasing
our national efficiency.”"
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www.rallydev.com @zachnies! ©2013!
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Assumes:"
"
Demand is known"


Supply is scarce"
www.rallydev.com @zachnies! ©2013!
100 years later"
www.rallydev.com @zachnies! ©2013!
Annual

Budgets"
"
Comprehensive

Analysis"
"
Detailed

Plans"
"
Waterfall

Execution"
www.rallydev.com @zachnies! ©2013!
Works when:"
"
Certainty is high"
www.rallydev.com @zachnies! ©2013!
Is your business
getting

more certain?"
www.rallydev.com @zachnies! ©2013!
Agile mindset"
www.rallydev.com @zachnies! ©2013!
Assumes:"


Uncertainty exists"
"
Attention is scarce"
www.rallydev.com @zachnies! ©2013!
Adaptive

Steering"
"
Disciplined

Exploration"
"
Empirical

Leaning"
"
Agile

Execution"
www.rallydev.com @zachnies! ©2013!
Adaptive

Steering"
"
Disciplined

Exploration"
"
Empirical

Leaning"
"
Agile

Execution"
www.rallydev.com @zachnies! ©2013!
Iterative & incremental"
www.rallydev.com @zachnies! ©2013!
Sprint
1-2 Weeks
Daily
Scrum
Product Backlog
Refinement
Sprint
Planning
Sprint Demo & Review
Sprint Retrospective
Product
Backlog
Sprint
Backlog
Burndown
Chart
Product
Increment
Team of 7 +/- 2
people:
Scrum"
www.rallydev.com @zachnies! ©2013!
Product Backlog
Refinement Release
Planning
Sprint Sprint Sprint
Product
Increment
Product
Increment
Product
Increment
Release Demo & Review
Release Retrospective
Burnup
Chart
Product
Backlog
Release
Backlog
Scrum at scale"
www.rallydev.com @zachnies! ©2013!
Adaptive

Steering"
"
Disciplined

Exploration"
"
Empirical

Leaning"
"
Agile

Execution"
www.rallydev.com @zachnies! ©2013!
http://www.flickr.com/photos/memekiller/4564410767
www.rallydev.com @zachnies! ©2013!
Form
Pivot
Persevere
Validate
SalesPlaybook
Ourdraftsalesplanwill
closeoractivate
customers.
GoToMarket
Wecanpackage,price,
positionandpromote
ouroffer.
Founders Can Sell
The founders can
understand the flow of
money and sell the offer.
OperateDiscover
Solution
Ourproductidea
solvesthecustomer’s
problem.
BusinessModel
Ourbusinessmodel
canbeprofitable.
Problem
We understand the
problem a customer
wants solved.
Transition
Team
Wehavebudgetandadedicated
transitionteam.
IntoDepartments
Wetransferredourknowledgeintothe
departmentsandtheycanoperatethe
newoffer.
RollOff
Wehaverolledoffeveryonefromthe
discoveryteamwhowantstodo
somethingnew.
Pivot
Persevere
ExperimentExperimentExperiment
Frame
Hypothesize
Wehaveapredicted
outcomethatwecan
measureandfalsify.
Document
Wehavecompletedtheleft
sideofanExperimentA3.
Empathize
We understand the
perspective of our users &
customers.
Measure
Analyze
Wehaveafactbased
argumenttoinvalidateor
validateourhypothesis.
Organize
Wehaveturnedthedata
intoinformationweuseto
tellastory.
Collect
We have enough data to
effectively analyze the
results.
Learn
Complete
Wehaveacompleted
ExperimentA3.
Share
Wesharedtheresultswith
thosewhocouldbenefit
from
theknowledge.
Compare
We compared the data
collected to our expected
results.
Build
Deploy
Wehaveourexperiment
runningwithrealsubjects.
Implement
Wehaveasolutionthatcan
falsifyourhypothesis.
Design
We understand how to
build our experiment and
measure the results.
Knowledge
Enumerate
Experiments
We have a series of
experiments that will
test the validity of
our top leap of faith
assumptions.
QuarterlySteering
Demo
Demo
Demo
Demo
Demo
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Operational
Review
Operational
Review
I-2
Prepare
Review Canvas
We have an updated canvas that reflects our
latest learnings and the team has reviewed it.
Enumerate Assumptions
We have a list of assumptions that need to be
true for our offer to work.
Identify Key Assumptions
We have identified the 3 most important leap of
faith assumptions to test next.
Vision
Wehaveanideaworth
pursuingthatexcitesthe
team.
InnovationSandbox
Wehaveworking
agreementswithothersto
runadiscoveryprocess. Team
We have a dedicated, cross
functional team.
© 2013 Rally Software Development Corp.
Turn Uncertainty"
Into Knowledge"
www.rallydev.com @zachnies! ©2013!
Exploration
Knowledge
Enumerate
Experiments
We have a series of
experiments that will
test the validity of
our top leap of faith
assumptions.
Q
Prepare
Review Canvas
We have an updated canvas that reflects our
latest learnings and the team has reviewed it.
Enumerate Assumptions
We have a list of assumptions that need to be
true for our offer to work.
Identify Key Assumptions
We have identified the 3 most important leap of
faith assumptions to test next.
www.rallydev.com @zachnies! ©2013!
Exploration
Knowledge
Enumerate
Experiments
We have a series of
experiments that will
test the validity of
our top leap of faith
assumptions.
Review Canvas
We have an updated canvas that reflects our
latest learnings and the team has reviewed it.
Enumerate Assumptions
We have a list of assumptions that need to be
true for our offer to work.
Identify Key Assumptions
We have identified the 3 most important leap of
faith assumptions to test next.
Business"
"
Feature"
"
Experience"
5. Value
What value will be created for these users?
Workarounds
How are these problems being solved today?
1. User Personas
Who is encountering the problems?
Circumstances
Within what circumstances do these problems exist?
3. Solution
What solutions may make the problems go away?
4.Technology
What technologies will be used to create the solution?
8. Feedback
What meaningful and measurable feedback will be
gathered from the users?
9. Enablement
What will be needed to make these users aware of
your solution and how it solves their problems?
7. Cost of Development
What costs will go into solving the user’s problems?
6. Cost of Delay
What will it cost your business if you don’t solve these problems over a period of time?
2. Problems
What problems are these users encountering?
Feature Canvas
I-1
Adapted from the Lean Canvas (www.leancanvas.com)
CUSTOMER!!
Name%
GOAL,
Journey%Need%
BENEFIT,
New%Ac0ons%
Persona%details% INSIGHT,
Emo0onal%need%
New%A7tude%
BRAND!!
Name%
ISSUE, IMPACT,
Key%Performance%Indicator%(KPI)%
Brand%a>ributes% TREND, Strategic%Business%Objec0ve%(SBO)%
INNOVATION, New%Experience% Enabled%By%
WHO! OPPORTUNITY! VALUE!
CX!Strategy!Design!Canvas!!!::!!!DesigningCX.com!
www.rallydev.com @zachnies! ©2013!
Identifying
meaningful
gifts is
challenging
People don’t
have time, but
time invested
translates to
good gifts
People don’t
have a good
gift idea until
it’s too late
Invested giver,
finding
something
special for
someone
People with
bad gift-giving
histories
(missed gifts)
Taking the
headache out
of finding the
perfect gift
Personal gift
gopher
Taking a cut of
every
purchase
Development,
hosting
Reminder
service for
upcoming
birthdays/gift
events
Keep a list of
good gifts for
each individual
per-user
tiered
subscription
fee
Lets you buy it
straight off of
our site
Referrals
Metrics on gift
purchases
(time, value)
Recurring
users
How close to
the gift
deadline they
were ordered
Integrates
with Facebook
for birthdays,
gift
preferences
Partnerships
with online
stores
Users with a
lot of gifts to
give (big
families)
Spouses that
celebrate a lot
of gift giving
events (bdays,
anniversaries)
Existing
freemium
users become
paid users
Partnerships
with online
stores
Data from
successful gift
sales can drive
recommendati
ons
Online note
clipping
Pinterest
Next Generation Givers
Frame
Hypothesize
Wehaveapredicted
outcomethatwecan
measureandfalsify.
Document
Wehavecompletedtheleft
sideofanExperimentA3.
Empathize
We understand the
perspective of our users &
customers.
Knowledge
Enumerate
Experiments
We have a series of
experiments that will
test the validity of
our top leap of faith
assumptions.
Review Canvas
We have an updated canvas that reflects our
latest learnings and the team has reviewed it.
Enumerate Assumptions
We have a list of assumptions that need to be
true for our offer to work.
Identify Key Assumptions
We have identified the 3 most important leap of
faith assumptions to test next.
www.rallydev.com @zachnies! ©2013!
Explora
Knowledge
We have a series of
experiments that will
test the validity of
our top leap of faith
assumptions.
Enumerate Assumptions
We have a list of assumptions that need to be
true for our offer to work.
Identify Key Assumptions
We have identified the 3 most important leap of
faith assumptions to test next.
www.rallydev.com @zachnies! ©2013!
AssumptionsCanvas Name: Date:
Key Assumption
Dependent Assumptions
Falsified Assumptions
Other AssumptionsOther Assumptions
Key Assumption
Dependent Assumptions
Key Assumption
Dependent Assumptions
I-1
Reminders will
help gift givers
We know when
giving events
will happen
Text messages
are acceptable
reminders
Suggestions
will motivate
givers
Recipients
want gifts on
time
We can give
reasonable
suggestions
We can get
receiver
preference
data
We can send
timely text
messages
Partners want
referral leads
We can make
money through
partner
referrals
We can get
enough parter
inventory
Our leads will
buy gifts
Facebook adds
will drive
traffic
A mobile first
product
strategy
Knowledge
test the validity of
our top leap of faith
assumptions.Identify Key Assumptions
We have identified the 3 most important leap of
faith assumptions to test next.
www.rallydev.com @zachnies! ©2013!
Key assumptions"
Knowledge"
Pivo
Persev
SalesPlaybook
Ourdraftsalesplanwill
closeoractivate
customers.
GoToMarket
Wecanpackage,price,
positionandpromote
ouroffer.
Solution
Ourproductidea
solvesthecustomer’s
problem.
BusinessModel
Ourbusinessmodel
canbeprofitable.
Team
Wehavebudgetandad
transitionteam.
IntoDepartme
Wetransferredourknowle
departmentsandtheycan
newoffer.
RollOff
Wehaverolledoffeveryon
discoveryteamwhowa
somethingnew.
Pivo
Persev
ExperimentExperimentExperiment
Frame
Hypothesize
Wehaveapredicted
outcomethatwecan
measureandfalsify.
Document
Wehavecompletedtheleft
sideofanExperimentA3.
Empathize
We understand the
perspective of our users &
customers.
Measure
Analyze
Wehaveafactbased
argumenttoinvalidateor
validateourhypothesis.
Organize
Wehaveturnedthedata
intoinformationweuseto
tellastory.
Collect
We have enough data to
effectively analyze the
results.
Learn
Complete
Wehaveacompleted
ExperimentA3.
Share
Wesharedtheresultswith
thosewhocouldbenefit
from
theknowledge.
Compare
We compared the data
collected to our expected
results.
Build
Deploy
Wehaveourexperiment
runningwithrealsubjects.
Implement
Wehaveasolutionthatcan
falsifyourhypothesis.
Design
We understand how to
build our experiment and
measure the results.
Knowledge
Enumerate
Experiments
We have a series of
experiments that will
test the validity of
our top leap of faith
assumptions.
QuarterlySteering
Demo
Demo
Demo
Demo
Demo
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Operational
Review
Operational
Review
I-2© 2013 Rally Software Development Corp.
www.rallydev.com @zachnies! ©2013!
Docum
Wehavecompletedt
sideofanExperimentA
E
We
perspe
Enumerate
Experiments
We have a series of
experiments that will
test the validity of
our top leap of faith
assumptions.
re
nvas
that reflects our
m has reviewed it.
mptions
ns that need to be
to work.
umptions
www.rallydev.com @zachnies! ©2013!
Run experiments"
SaleOurdrafcloseocusto
ket
e,price,
promote
ffer.
SOurp
solvesth
pro
Wehave
t
Int
Wetransfer
department
Wehaverol
discover
ExperimentExperimentExperiment
Frame
Hypothesize
Wehaveapredicted
outcomethatwecan
measureandfalsify.
Document
Wehavecompletedtheleft
sideofanExperimentA3.
Empathize
We understand the
perspective of our users &
customers.
Measure
Analyze
Wehaveafactbased
argumenttoinvalidateor
validateourhypothesis.
Organize
Wehaveturnedthedata
intoinformationweuseto
tellastory.
Collect
We have enough data to
effectively analyze the
results.
Learn
Complete
Wehaveacompleted
ExperimentA3.
Share
Wesharedtheresultswith
thosewhocouldbenefit
from
theknowledge.
Compare
We compared the data
collected to our expected
results.
Build
Deploy
Wehaveourexperiment
runningwithrealsubjects.
Implement
Wehaveasolutionthatcan
falsifyourhypothesis.
Design
We understand how to
build our experiment and
measure the results.
Demo
Demo
Demo
Demo
Demo
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Operational
Review
Operational
Review
I-2© 2013 Rally Software Development Corp.
www.rallydev.com @zachnies! ©2013!
Empathize & Frame"
Frame
Hypothesize
Wehaveapredicted
outcomethatwecan
measureandfalsify.
Document
Wehavecompletedtheleft
sideofanExperimentA3.
Empathize
We understand the
perspective of our users &
customers.
De
Wehaveourexp
runningwithrealsub
We
build
m
owledge
umerate
periments
ave a series of
ments that will
he validity of
p leap of faith
sumptions.
www.rallydev.com @zachnies! ©2013!
Empathize"
www.rallydev.com @zachnies! ©2013!
Hypothesize"
Background: What do you want to learn and why?
What guess, assumption, risk, or question are you testing?
What pain or problem is being experienced that’s motivating this experiment?
If you can, write the Problem Statement from the Define worksheet here.
[Customer Segment] needs a way to [describe job to be done], (because|but|surprisingly) [describe insight].
Hypothesis toTest
[Specific repeatable action] will create [expected result].
State your hypothesis as an if/then assertion. Is this hypothesis falsifiable?
Experiment Materials and Method
What will you need to run your experiment, both from your team and from others?
Describe the experiment you plan to run and how it can falsify your hypothesis. What steps are needed to run the
experiment? Do you need a control group to establish a comparison?
www.rallydev.com @zachnies! ©2013!
Document"
Background: What do you want to learn and why?
What guess, assumption, risk, or question are you testing?
What pain or problem is being experienced that’s motivating this experiment?
If you can, write the Problem Statement from the Define worksheet here.
[Customer Segment] needs a way to [describe job to be done], (because|but|surprisingly) [describe insight].
Hypothesis toTest
[Specific repeatable action] will create [expected result].
State your hypothesis as an if/then assertion. Is this hypothesis falsifiable?
Experiment Materials and Method
What will you need to run your experiment, both from your team and from others?
Describe the experiment you plan to run and how it can falsify your hypothesis. What steps are needed to run the
experiment? Do you need a control group to establish a comparison?
Safety: How is the experiment safe to run and how will you undo it?
Why is the experiment safe to run? What about your experiment method protects you from harmful side effects?
Describe how you will undo the experiment upon completion or if you discover it is no longer safe to run.
Variables and Measures
What variable (the manipulated variable) are you going to intentionally change during the experiment? What variables (the
responding variables) do you expect to respond to changes to the manipulated variable? What variables (the control
variables) do you need to keep constant during the experiment? What qualitative and quantitate measures will you use to
measure your variables? What will you measure to indicate the experiment is running safely?
Experiment Name:
Owner:
Mentor: Start Date: End Date: I-4
Next Steps: Given what you learned, what’s next?
Experiment Results
Describe your results from the experiment.
Describe what you learned from the experiment? Did you invalidate your hypothesis or does it live on?
Experiment OutcomeExperiment Outcome
Validated Invalidated InconclusiveValidated Invalidated Inconclusive
Cycle Time: days Cost: $ (Run rate * Cycle Time) + Costs
Validated Learnings
Describe what you learned from the experiment?
Restate your hypothesis based on the results. If it was validated, restate it as it is. If it was invalidated, frame the
hypothesis in the negative rather than the affirmative. If it was inconclusive, leave this box blank.
Ancillary Insights: What else should you explore?
Capture your insights that were gained unintentionally through this experiment.  
www.rallydev.com @zachnies! ©2013!
Build & Ship"
ExperimentExperimentExperiment
othesize
ehaveapredicted
outcomethatwecan
measureandfalsify.
he
ers &
M
Org
Wehaveturnedt
intoinformationweus
tellastory.
We h
effe
Build
Deploy
Wehaveourexperiment
runningwithrealsubjects.
Implement
Wehaveasolutionthatcan
falsifyourhypothesis.
Design
We understand how to
build our experiment and
measure the results.
www.rallydev.com @zachnies! ©2013!
Sprint
1-2 Weeks
Daily
Scrum
Product Backlog
Refinement
Sprint
Planning
Sprint Demo & Review
Sprint Retrospective
Scrum Machine
Product
Backlog
Sprint
Backlog
Burndown
Chart
Product
Increment
www.rallydev.com @zachnies! ©2013!
Test & Measure"
ExperimentExperimentExperiment
Measure
Analyze
Wehaveafactbased
argumenttoinvalidateor
validateourhypothesis.
Organize
Wehaveturnedthedata
intoinformationweuseto
tellastory.
Collect
We have enough data to
effectively analyze the
results.
Sh
Wesharedtheres
thosewhocouldben
from
theknowledge.
We
colle
lement
veasolutionthatcan
falsifyourhypothesis.
w to
and
ts.
www.rallydev.com @zachnies! ©2013!
Collect"
http://www.flickr.com/photos/mrpetersononline/4977025601
www.rallydev.com @zachnies! ©2013!
Analyze"
http://www.flickr.com/photos/mrpetersononline/4992505907
www.rallydev.com @zachnies! ©2013!
Organize"
http://www.flickr.com/photos/mrpetersononline/4992505641
www.rallydev.com @zachnies! ©2013!
Learn & Share"
e
alyze
haveafactbased
rgumenttoinvalidateor
validateourhypothesis.
a to
the
Learn
Complete
Wehaveacompleted
ExperimentA3.
Share
Wesharedtheresultswith
thosewhocouldbenefit
from
theknowledge.
Compare
We compared the data
collected to our expected
results.
www.rallydev.com @zachnies! ©2013!
Compare"
Hypothesis toTest
[Specific repeatable action] will create [expected result].
State your hypothesis as an if/then assertion. Is this hypothesis falsifiable?
Experiment Materials and Method
What will you need to run your experiment, both from your team and from others?
Describe the experiment you plan to run and how it can falsify your hypothesis. What steps are needed to run the
experiment? Do you need a control group to establish a comparison?
Safety: How is the experiment safe to run and how will you undo it?
Why is the experiment safe to run? What about your experiment method protects you from harmful side effects?
Describe how you will undo the experiment upon completion or if you discover it is no longer safe to run.
Variables and Measures
Experiment Name:
Owner:
Mentor: Start Date: End Date: I-4
Experiment Results
Describe your results from the experiment.
Describe what you learned from the experiment? Did you invalidate your hypothesis or does it live on?
Validated Learnings
Describe what you learned from the experiment?
Restate your hypothesis based on the results. If it was validated, restate it as it is. If it was invalidated, frame the
hypothesis in the negative rather than the affirmative. If it was inconclusive, leave this box blank.
www.rallydev.com @zachnies! ©2013!
Complete"
Background: What do you want to learn and why?
Spouses are frustrated giving gifts because :
- They wait until right before the gift-giving day (limited time)
- They don’t actively thinking about it until it’s too late
- They feel pensive at having to search/decide
- They are worried at “missing the mark”
We want to learn if some type of periodic reminder will help the spouse buy a meaningful gift on time.
A loving, caring spouse needs a way to find a meaningful gift, surprisingly, there isn’t enough time, even
though he’s known about it for awhile.
Hypothesis toTest
Giving a spouse periodic reminders before the gift deadline will cause him to buy a meaningful gift on time.
Experiment Materials and Method
- Find out who the giver has to give gifts to, and at what dates
- When the date for a particular gift is one month away, start reminding givers 3 times a week to see if they’ve
bought a gift yet; if not, encourage them to write down the best gift that comes to mind
- The reminders will appear as SMS messages and originate from a simple script or from a human sending the
messages
- After the gift-giving date has passed, follow up with the giver and see what the reaction was
Safety: How is the experiment safe to run and how will you undo it?
-Our current brand is associated with cards, we don’t want confuse customers right now by extending our
brand into mobile apps. For this experiment we will use an off-brand.
-Because we may use a human to send the reminders, we need to limit the number of participants to 10 at any
one time
-If the participants stop buying cards with their gifts, we will stop the experiment
- If the participants get frustrated with the reminders, we will stop any interaction with them.
Variables and Measures
Quantitative measures:
-60% of participants will buy a gift on time compared to the control group
-50% of gift givers won’t use express shipping compared to the control group
Qualitative measures:
- Participants will describe less stress in the buying process
-The recipients will be happy with the gift
Experiment Name: Personal Reminder Experiment
Owner: Sarah
Mentor: Liz Start Date: 8-12 End Date: 8-26 I-4
Next Steps: Given what you learned, what’s next?
This form of reminders didn’t work. For the next experiment we should give suggestions instead of reminders.
Experiment Results
Quantitative measures:
-10% of participants bought a gift on time
Qualitative measures:
- Participants were very stress in the buying process
Experiment OutcomeExperiment Outcome
Validated Invalidated InconclusiveValidated Invalidated Inconclusive
Cycle Time: 10 days Cost: $ 8,000
Validated Learnings
Our experiment had no positive effect on the participants. Giving periodic reminders didn’t help him buy a
meaningful gift on time
Ancillary Insights: What else should you explore?
The reminders actually added to the stress of the situation.
www.rallydev.com @zachnies! ©2013!
Share"
www.rallydev.com @zachnies! ©2013!
Empirical Learning"
Form
Pivot
Persevere
Validate
SalesPlaybook
Ourdraftsalesplanwill
closeoractivate
customers.
GoToMarket
Wecanpackage,price,
positionandpromote
ouroffer.
Founders Can Sell
The founders can
understand the flow of
money and sell the offer.
OperateDiscover
Solution
Ourproductidea
solvesthecustomer’s
problem.
BusinessModel
Ourbusinessmodel
canbeprofitable.
Problem
We understand the
problem a customer
wants solved.
Transition
Team
Wehavebudgetandadedicated
transitionteam.
IntoDepartments
Wetransferredourknowledgeintothe
departmentsandtheycanoperatethe
newoffer.
RollOff
Wehaverolledoffeveryonefromthe
discoveryteamwhowantstodo
somethingnew.
Pivot
Persevere
ExperimentExperimentExperiment
Frame
Hypothesize
Wehaveapredicted
outcomethatwecan
measureandfalsify.
Document
Wehavecompletedtheleft
sideofanExperimentA3.
Empathize
We understand the
perspective of our users &
customers.
Measure
Analyze
Wehaveafactbased
argumenttoinvalidateor
validateourhypothesis.
Organize
Wehaveturnedthedata
intoinformationweuseto
tellastory.
Collect
We have enough data to
effectively analyze the
results.
Learn
Complete
Wehaveacompleted
ExperimentA3.
Share
Wesharedtheresultswith
thosewhocouldbenefit
from
theknowledge.
Compare
We compared the data
collected to our expected
results.
Build
Deploy
Wehaveourexperiment
runningwithrealsubjects.
Implement
Wehaveasolutionthatcan
falsifyourhypothesis.
Design
We understand how to
build our experiment and
measure the results.
Knowledge
Enumerate
Experiments
We have a series of
experiments that will
test the validity of
our top leap of faith
assumptions.
QuarterlySteering
Demo
Demo
Demo
Demo
Demo
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Operational
Review
Operational
Review
I-2
Prepare
Review Canvas
We have an updated canvas that reflects our
latest learnings and the team has reviewed it.
Enumerate Assumptions
We have a list of assumptions that need to be
true for our offer to work.
Identify Key Assumptions
We have identified the 3 most important leap of
faith assumptions to test next.
Vision
Wehaveanideaworth
pursuingthatexcitesthe
team.
InnovationSandbox
Wehaveworking
agreementswithothersto
runadiscoveryprocess. Team
We have a dedicated, cross
functional team.
© 2013 Rally Software Development Corp.
www.rallydev.com @zachnies! ©2013!
http://www.richard-feynman.net/gallery.htm
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
Example"
www.rallydev.com @zachnies! ©2013!
1996
www.rallydev.com @zachnies! ©2013!
Leap of faith
assumption?"
www.rallydev.com @zachnies! ©2013!
30-min
Delivery
1996
www.rallydev.com @zachnies! ©2013!
~$800M IPO &
private investors
$8.5B Mkt Cap
30-min
Delivery
1996
www.rallydev.com @zachnies! ©2013!
~$800M IPO &
private investers
$8.5B Mkt Cap
4.5k employees
30-min
Delivery
$1B Warehouses
26
cities
1996
www.rallydev.com @zachnies! ©2013!
~$800M IPO &
private investers
$8.5B Mkt Cap
4.5k employees
30-min
Delivery
$1.4B HomeGrocer
$1B Warehouses
26
cities
1996
www.rallydev.com @zachnies! ©2013!
~$800M IPO &
private investers
$8.5B Mkt Cap
4.5k employees
30-min
Delivery
$1.4B HomeGrocer
$1B Warehouses
IPO to bankrupt
in <2 years
26
cities
1996
www.rallydev.com @zachnies! ©2013!
~$800M IPO &
private investers
$8.5B Mkt Cap
4.5k employees
30-min
Delivery
$1.4B HomeGrocer
~$130 loss per order
$1B Warehouses
IPO to bankrupt
in <2 years
26
cities
1996
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
Leap of faith
assumption?"
www.rallydev.com @zachnies! ©2013!
http://www.seanpercival.com/blog/2012/10/21/pre-inventory-startups/http://www.thecmosite.com/author.asp?section_id=1137&doc_id=236069
Nick Swinmurn"
Founder, Zappos"
www.rallydev.com @zachnies! ©2013!
TAKE EACH MAJOR
ASSUMPTION"
www.rallydev.com @zachnies! ©2013!
RUN AN EXPERIMENT"
www.rallydev.com @zachnies! ©2013!
http://www.youtube.com/watch?v=Iyjs3zeoSrM
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
Adaptive

Steering"
"
Disciplined

Exploration"
"
Empirical

Leaning"
"
Agile

Execution"
www.rallydev.com @zachnies! ©2013!
Exploration"
www.rallydev.com @zachnies! ©2013!
Exploration"
Enterprise Lean Startup Overview
Portfolio
Form
Pivot
Persevere
Validate
SalesPlaybook
Ourdraftsalesplanwill
closeoractivate
customers.
GoToMarket
Wecanpackage,price,
positionandpromote
ouroffer.
Founders Can Sell
The founders can
understand the flow of
money and sell the offer.
InnovationPipeline
OperateDiscover
Solution
Ourproductidea
solvesthecustomer’s
problem.
BusinessModel
Ourbusinessmodel
canbeprofitable.
Problem
We understand the
problem a customer
wants solved.
Transition
Team
Wehavebudgetandadedicated
transitionteam.
IntoDepartments
Wetransferredourknowledgeintothe
departmentsandtheycanoperatethe
newoffer.
RollOff
Wehaverolledoffeveryonefromthe
discoveryteamwhowantstodo
somethingnew.
Pivot
Persevere
Horizon 3
Horizon 2
Horizon 1
loration
Ideas Today’s spend buys options on
future high growth offers with an
expected return in 36 to 72 months.
Today’s spend fuels high growth
offers with an expected return
in 12 to 36 months.
Today’s spend funds
current money making
offers.
PlausibleOffers
PossibleOffers
ProbableOffers
ProvenOffers
ExperimentExperimentExperiment
Frame
ize
ctedcan
y.
Doc
Wehavec
sideofa
Empathize
We understand the
perspective of our users &
customers.
Measure
e
asedateorsis.
Org
Wehave
intoinfo
Collect
We have enough data to
effectively analyze the
results.
Learn
e
eted.
Sh
Weshared
thosew
from
Compare
We compared the data
collected to our expected
results.
Build
De
Wehave
running
nt
hatcanesis.
Design
We understand how to
build our experiment and
measure the results.
Enumerate
Experiments
Cadence
QuarterlySteering
Demo
Demo
Demo
Demo
Demo
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Mentor
Checkin
Operational
Review
Operational
Review
Prepare
Review Canvas
We have an updated canvas that reflects our
latest learnings and the team has reviewed it.
Enumerate Assumptions
Vision
Wehaveanideaworth
pursuingthatexcitesthe
team.
InnovationSandbox
Wehaveworking
agreementswithothersto
runadiscoveryprocess.
Team
We have a dedicated, cross
functional team.
www.rallydev.com @zachnies! ©2013!
Adaptive

Steering"
"
Disciplined

Exploration"
"
Empirical

Leaning"
"
Agile

Execution"
www.rallydev.com @zachnies! ©2013!
Adopting something
new is a human
phenomenon "
www.rallydev.com @zachnies! ©2013!
Not a technological
phenomenon "
www.rallydev.com @zachnies! ©2013!
An example…"
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
Need an Agile and
human centered
approach!
www.rallydev.com @zachnies! ©2013!
Extend Agility into
your business"
www.rallydev.com @zachnies! ©2013!
Take advantage of
market
opportunities"
www.rallydev.com @zachnies! ©2013!
What happened to
this company?"
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
1
Began Experimentation1
2
$50M in New Product Revenue2
3
1800 Concurrent Experiments3
www.rallydev.com @zachnies! ©2013!
Books that informed this talk"
www.rallydev.com @zachnies! ©2013!
Geoffrey

Moore"
David Snowden"
Ash

Maurya"
Tim

Brown"
Clayton

Christensen"
Steve

Blank"
Eric

Ries"
People who informed this talk"
John & George
Kembel"
www.rallydev.com @zachnies! ©2013!
Go Agile. Go Rally.!

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