The event NewCo Boston was held on on April 26 2016. This presentation was delivered by Joe Kinsella, the founder & CTO of CloudHealth Technologies.
http://bos.newco.co/2016-schedule/
3. About Me
Founder & CTO of CloudHealth
Technologies
Entrepreneur & technical executive
Cloud computing enthusiast,
evangelist & blogger
VPE at SilverBack & Sonian, Director
at Dell
Twitter: @joekinsella
Email: joe@cloudhealthtech.com
Blog: www.hightechinthehub.com
Built large scale cloud public cloud infrastructure
Passion for solving complex problems
IT management software geek
Member of “first Scrum team”
5. IT Infrastructure Management
Cloud Management
CloudHealthTechnologies Background
Deep Domain Expertise
$20 Million in Venture Capital Raised
450+ Customers
100+ Employees
Headquartered in Boston, MA
Offices in San Francisco and London
Revenue Growth
Customer Growth
6. My Agile Heritage
Launched software career on
“first Scrum team”
Team formed at crossroads of
old and new worlds –
Waterfall vs Agile
Member of “first standup”
Jeff Sutherland (manager) went on to become Scrum
evangelist & co-signer of Agile Manifesto
Early lessons:
– Value of working directly with customers & working in cross-
functional teams
– Never stop innovating
7. An Agile ApproachTo
Founding a Company
“I’m convinced that about half of what separates the
successful entrepreneurs from the non-successful ones is
pure perseverance.”
--Steve Jobs
8. Taking the Leap
Starting company is highly irrational act
Worked to manage all downside risks
until one day it no longer seemed risky
Took non-traditional approach
– Started with market instead of product
– Started with experiments instead of
business plan
– Talked to investors before anything in which
to invest
– Formed team of advisors to complement
skills
– Sought “founding secrets”
“When your army
has crossed the
border, you should
burn your boats and
bridges, in order to
make it clear to
everybody that you
have no hankering
after home.”
--Sun Tzu
9. Finding the Market Opportunity
Stayed close to passion & expertise
Ran series of experiments using Lean
Startup methodology
Build-Measure-Learn feedback loop
Process
– Define critical hypotheses to test
– Design experiment that efficiently tests
hypotheses
– Rinse & repeat
Remain objective
Early experiments: The Free Tool, The Ad
Campaign, The Poll, Me as a Service
“Startups that
survive the first few
tough years do not
follow the
traditional product-
centric launch model
espoused by product
managers or the
venture capital
community.”
--Steve Blank
10. Building the MVP
MVP came from series of MVFs
Finding the Minimum Viable
Feature (MVF)
– Identity minimum investment required
to deliver value for subset of customers
– Deliver feature
– Gather feedback / data
– Rinse & repeat
Follow the customer & adapt vision
Iterate in the presence of customers
11. Selling the MVP
1st customer came from Lean
experiment called The Sale
Experiment designed for failure but
had unexpected success
Key behind early success
– Customer-driven development honed value proposition
– Targeted “earlyvangelist” customer
– Articulated vision for future product
Drove metrics-driven process to quantify effort
If you’re not being rejected, you are not trying
12. An Agile ApproachTo
Finding Product Market Fit
“If I had asked people what they wanted, they would have
said faster horses.”
--Henry Ford
13. Hiring the EarlyTeam
You can found a company alone,
but you need a team to build one
No margin for error in early hires
Good hiring maximizes chance to
achieve product market fit
Hire only proven startup pros
Early executives must be strong
individual contributors
Don’t sacrifice culture for talent
Don’t sacrifice right for fast
Fail fast on bad hires
14. Searching for Product Market Fit
Most startup failures result from inability to achieve
“product market fit”
Product market fit = being able to reproduce the
sale of a product in a market with consistency
Product market fit results from series of epiphanies
derived from executing in a market
Often takes 3-5 epiphanies to achieve fit “string of
pearls”
Epiphanies can include market, product,
distribution, business model, branding
– E.g. Facebook = initial focus on college student (target market) +
student-focused features (product) + vertical college rollout
(distribution) + advertising (business model)
15. Everyone Is a Product Manager
Highly collaborative approach to
driving product allowed rapid
attainment of product market fit
Product management is not a
department – it’s a company
Drive continuous customer
engagement
Become voice of customer, not its gatekeeper
Continuously test assumptions
Minimize distractions for engineering
Drive internal feedback loop to learn from mistakes
Product
Market Fit
16. An Agile ApproachTo
Growing a Company
“We often miss opportunity because it's dressed in overalls
and looks like work.”
--Thomas Edison
17. Driving an Agile Culture
Hire collaborators
Make customer engagement your
internal currency
Continuously innovate across all
functions
Drive tight feedback loops
Make work products visible
Drive collaborative decision making
Continuously test assumptions
Build adaptability into processes
Make series of small bets
18. Product Development at CloudHealth
Seasonal releases with 5-10 major
themes (“epics”)
Execute seasons in 6-7 two week
sprints
Sprints include work for themes, enhancements, internal
improvements & bug fixes
Continuously deploy software (daily) with feature flags
Announce releases once a week
Sprints start with sprint planning, end with retrospective
Sprint planning includes two halves:
– Business – review results of previous sprint, plan for next
sprint, enhancements & issues
– Technical – review detailed backlog & plan sprint
19. Driving an Agile Product Strategy
Value throughput / adaptability over
predictability
Make series of small bets instead of
one big one, e.g.
– CloudHealth partner channel & entering
the enterprise market
Don’t let competitors distract you from customers &
prospects
Adapt execution to need
– Emerging – experimental mode where there exists unknowns
– Tactical – solving for current known business need
– Strategic – solving for future demand
Always execute in context of product vision
20. Managing Agile Product Releases
Contents of weekly releases can
vary based on engineering status
Cross-functional team decides on
Friday what is ready to ship
Just in time approach to
documentation, help & training
Monday afternoon release update
goes out to all users
Leverage in-app notification as
secondary channel
Agility has become our brand
21. Finding Outlets For Innovation
Hackathons
– 24 hours of freeform hacking on ideas related to
CloudHealth
– Self-organizing cross-functional teams
– Concludes with presentations by each team to
company
– Prizes awarded via Yankee Swap over dinner
CloudHealth University
– Every 3 week classroom for learning about new
topics
– Course topics crowd sourced
– Instructors from across organization
Demo Days
– Every sprint starts with Demo Day
– Drink beer, eat pizza, socialize, show cool stuff
22. Final Lessons
“All humans are entrepreneurs not because they should start
companies but because the will to create is encoded in
human DNA.”
--Reid Hoffman
23. My Lessons from Founding CloudHealth
It’s all about the customer
Work with people for whom building products is a
passion, not a job
Operate with openness & transparency
Integrity matters
Value people over process
Vision is a compass, not a map
The enemy is outside the gate
Listen
Fail fast
Enjoy the ride
Hinweis der Redaktion
Moderator for tonight’s panel
Overview of the state of cloud adoption
Enterprises & fast growing technology companies
Thank MassTLC & sponsors for event