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Scaling Lean: Principles over Process

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This is an updated version of the talk I gave in Sep 2016 at Mind The Product. I gave this version of the talk at Webstock in Wellington, NZ in Feb 2017 and then later on that month in Sydney at the IxDA Sydney February event. The set up is a bit different in this version and the focus is more on the principles rather than just the project, program, portfolio structure.

Veröffentlicht in: Leadership & Management
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Scaling Lean: Principles over Process

  1. 1. SCALING LEAN: PRINCIPLES OVER PROCESS JEFF GOTHELF / @JBOOGIE / JEFF@GOTHELF.CO
  2. 2. GOTHELF.CO / @JBOOGIE
  3. 3. GOTHELF.CO / @JBOOGIE
  4. 4. GOTHELF.CO / @JBOOGIE
  5. 5. GOTHELF.CO / @JBOOGIE TECH PRODUCT DESIGN AGILE LEAN DESIGN THINKING
  6. 6. GOTHELF.CO / @JBOOGIE STARTUPS DON’T HAVE THIS PROBLEM
  7. 7. GOTHELF.CO / @JBOOGIE IN THE ENTERPRISE HOWEVER, THINGS ARE DIFFERENT
  8. 8. GOTHELF.CO / @JBOOGIE AND YET, EVERY ENTERPRISE, WANTS TO BE “LIKE A STARTUP”
  9. 9. GOTHELF.CO / @JBOOGIE WHEN STRETCHED TO BIGGER ORGS LEAN AND AGILE BREAK
  10. 10. GOTHELF.CO / @JBOOGIE WHY DOES LEAN SEEM TO BREAK AT SCALE?Established corporations are too concerned about tarnishing their brand with an MVP
 — David Baldie (@DavidBaldie) Process. Everything has a process and 85 approvals and a mysterious “they” blocking anything that’s not the old way.
 — Emily Tate (@thedailyem) "Good enough" doesn't get respected as viable option to SHIP IT!
 — Jeremy Caverly (@JeremyCee) Silo'ed managers unwilling to release team members
 — Dan Weingrod (@dweingrod) Valuing business need over user need (not realizing they are the same thing)
 — Simeon Poulin (@simeon_P) "To approve that we need to see a detailed plan and cost benefit analysis, and you must commit to specific deadlines and targets."
 — John Waterworth (@jwaterworth) "We already know what we need to do. Why do we need to waste time 'learning'?"
 — John Waterworth (@jwaterworth)
  11. 11. GOTHELF.CO / @JBOOGIE HOW CAN WE MOVE BIG ORGS PAST THESE HURDLES?
  12. 12. GOTHELF.CO / @JBOOGIE SEVERAL WAYS TO THINK ABOUT SCALING PROJECT How do we incorporate more learning into each initiative? PROGRAM How do we coordinate multiple discovery/delivery efforts focused on the same goal? PORTFOLIO How do we coordinate multiple programs, enforce governance and meet shareholder expectations?
  13. 13. GOTHELF.CO / @JBOOGIE SCALING CHALLENGES AT EACH LEVEL PROJECT •Optimizing for throughput (velocity) •Parallel path discovery & delivery •No autonomy to make decisions •Incremental, not iterative •Perceived risk to brand/ current customers PROGRAM PORTFOLIO •Cross-team coordination •Knowledge management •Legacy systems •Offshoring •Distributed teams •Discipline & business unit silos •IT as a service provider •Business value > customer value •Annual planning •Incentive structure •Governance •Conway’s Law but in reverse
  14. 14. GOTHELF.CO / @JBOOGIE THERE ARE NO SHORTAGE OF RECIPES
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  17. 17. GOTHELF.CO / @JBOOGIE I can see myself in the picture. So I like it!
  18. 18. GOTHELF.CO / @JBOOGIE THESE ARE ONLY FRAMEWORKS
  19. 19. GOTHELF.CO / @JBOOGIE SCALING PRINCIPLES, NOT PROCESSES “Process brings seductively strong near-term outcomes.” - Netflix culture presentation (2009)
  20. 20. GOTHELF.CO / @JBOOGIE PRINCIPLE #1 CUSTOMER VALUE = BUSINESS VALUE
  21. 21. GOTHELF.CO / @JBOOGIE TACTIC: MANAGE TO OKR’S OBJECTIVE •Qualitative •Inspirational •Time bound •Actionable by the team independently 
 (particularly relevant in the enterprise) KEY RESULTS •Quantifiable •How will we know we’ve met our objective? •Difficult, not impossible •Cascade down •Rhythmic @CWODTKE EXAMPLE OF OBJECTIVE: BE THE DOMINANT PLATFORM FOR CAR DEALER INVENTORY MANAGEMENT BY Q4 2016 EXAMPLE OF KEY RESULT: 50% OF ALL INDEPENDENT DEALERS ARE OUR USERS EXAMPLE OF KEY RESULT: 6 OF THE TOP 10 CARMAKERS MANDATE OUR PLATFORM FOR THEIR DEALERSHIPS EXAMPLE OF KEY RESULT: 40% OF AUTO AUCTION HOUSES USING OUR INVENTORY API
  22. 22. GOTHELF.CO / @JBOOGIE TACTIC: EVIDENCE-BASED QUARTERLY PLANNING SHIP SENSERESPOND Q1: OKR’S STAKEHOLDERS EVERY QUARTER $/€/£$/€/£ NEW OKR
  23. 23. GOTHELF.CO / @JBOOGIE TACTIC: HORIZON PLANNING Source: McKinsey, Intuit, et al THREE TIME HORIZONS TO MEASURE PROGRESS • Customer-related questions to answer: Is there a need? Can we find a solution that meets that need? HORIZON 3: SHORT TERM • Sustainability-related questions to answer: Is the market large enough/sustainable? Can we support growth? HORIZON 2: MID TERM • Growth-related questions to answer: How do we scale? How do we continuously improve? How do we stay competitive? HORIZON 1: LONG TERM
  24. 24. GOTHELF.CO / @JBOOGIE PRINCIPLE #2 VALUE LEARNING OVER DELIVERY
  25. 25. GOTHELF.CO / @JBOOGIE TACTIC: BUILD MOMENTUM WITH PILOT TEAMS
  26. 26. GOTHELF.CO / @JBOOGIE TACTIC: SANDBOXES
  27. 27. GOTHELF.CO / @JBOOGIE TACTIC: ENCOURAGE CREATIVE EXPERIMENTS Source: @evolvable, @tyro
  28. 28. GOTHELF.CO / @JBOOGIE PRINCIPLE #3 RADICAL TRANSPARENCY
  29. 29. GOTHELF.CO / @JBOOGIE TACTIC: TRANSPARENCY THROUGH RITUALS
  30. 30. GOTHELF.CO / @JBOOGIE TACTIC: ACCESS TO CUSTOMERS The second hardest thing about Minimum Viable Products is that while you decide what’s Minimum, the customer determines if it is Viable. - @davidjbland
  31. 31. GOTHELF.CO / @JBOOGIE TACTIC: ACCESS TO CUSTOMERS
  32. 32. GOTHELF.CO / @JBOOGIE TACTIC: ACCESS TO DATA
  33. 33. GOTHELF.CO / @JBOOGIE PRINCIPLE #4 HUMILITY IN ALL THINGS
  34. 34. GOTHELF.CO / @JBOOGIE TACTIC: PRODUCT DISCOVERY
  35. 35. GOTHELF.CO / @JBOOGIE TACTIC: “ORBITAL MODEL” FOR SUPPORT OUTSIDE OF PRODUCT DEVELOPMENT CORE TEAM LEGAL BRAND MARKETING FINANCE
  36. 36. GOTHELF.CO / @JBOOGIE TACTIC: MODERN STAFFING MODEL
  37. 37. GOTHELF.CO / @JBOOGIE TACTIC: MODERNIZE TECH STACK DevOps is a culture, movement or practice that emphasizes the collaboration and communication of both software developers and other information-technology (IT) professionals while automating the process of software delivery and infrastructure changes. - Wikipedia
  38. 38. GOTHELF.CO / @JBOOGIE TACTIC: MODERNIZE TECH STACK Source: @billwscott (slideshare)
  39. 39. GOTHELF.CO / @JBOOGIE THIS IS A TOP-DOWN EFFORT “Successful leaders embrace the reality that their models may be wrong or incomplete. Only when we admit what we don’t know can we ever hope to learn it.” - Ed Catmull, CEO, Pixar
  40. 40. GOTHELF.CO / @JBOOGIE SEEK OUT THE SHIT UMBRELLA
  41. 41. GOTHELF.CO / @JBOOGIE LEAN PRINCIPLES THAT WORK AT ANY SCALE PRINCIPLE #1: CUSTOMER VALUE = BUSINESS VALUE PRINCIPLE #2: VALUE LEARNING OVER DELIVERY PRINCIPLE #3: RADICAL TRANSPARENCY PRINCIPLE #4: HUMILITY IN ALL THINGS
  42. 42. GOTHELF.CO / @JBOOGIE THANK YOU! JEFF GOTHELF / @JBOOGIE / JEFF@GOTHELF.CO

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