Agile Business Framework For Customer Driven Development

An Agile Business Framework
For Customer Driven Development

Paul Relf
(Twitter: @Paul_Relf)

AND

Catherine Louis
(Twitter: @catherinelouis)

Tuesday, December 8, 2009 1

Acknowledgements
For Tonights Presentation (Dec 8, 2009)

http://ﬁnance.groups.yahoo.com/group/AgileBusiness/


Innovation is a New Way of Doing Something
Incremental Or Radical

Waterfall Development Limits Innovation By
Removing the Freedom to Dream


Oh, the Possibilities...
What if?

x z y

x: dreamer
y: coder
z: applied innovation


What if?
You could meet the market need on-
demand?

100% of the software you developed was
used?
x z y
You knew your customers business and
technical needs as well as your own?

Your productivity and quality was so high
you could deliver a release every week?
x: dreamer
Your employee’s were happy and
y: coder
motivated to drive unprecedented levels
of productivity?


What if?
You could meet the market need on-
demand?

100% of the software you developed was
used?
x z y
You knew your customers business and
technical needs as well as your own?

Your productivity and quality was so high
you could deliver a release every week?
x: dreamer
Your employee’s were happy and
y: coder
motivated to drive unprecedented levels
of productivity?

The Impossible can always be broken down into
Possibilities - Anonymous

Oh, the Possibilities?

How do we enable
these possibilities?


Oh, the Possibilities?

How do we enable
these possibilities?

With an ‘Innovation Centric Culture’

and a ‘Lean Operational Model’


Characteristics of
‘Innovation Centric Culture’
Empowered Teams (Scrum Teams
include the Product Owner and
sometimes the end customer)

Safe environment to innovate; product,
process, tools and GTM

Balanced Ego

No when to ‘Fail’

People / Relationship Centric
(Collaboration and Communication)

Environment to grow; journeymen,
craftsman, master craftsman, level
3-4-5 leaders


Characteristics of
‘Lean Operational Model’
Able to respond to Customers Real Needs
and Market Dynamics (Competition,
Technology, Regulation, Business Models)

Based on Kaizen and the pursuit of
excellence

Able to Test The Market with new Ideas

Identify Winners and Losers Quickly

Minimize Risk and Upfront cost

Acts with a Long Term Horizon

Weather storms

Basis of Values


Kaizen Gets You Started And Keeps You Going!

Hiranabe http://tweetphoto.com/5793753


Driving Business Agility and Velocity

y
Innovation Centric Culture

t
at ur i
M

Lean Operational Model


Driving Business Agility and Velocity

y
Innovation Centric Culture

t
at ur i
M

Lean Operational Model

Lets Explore the ‘Lean Operational Model’...


It Starts With The Customer

Rather than predicting
where the market will
be, deliver to the real
market need using a
“Customer Pull Model”


It Starts With The Customer

More relevant software
Rather than predicting
where the market will Timely delivery
be, deliver to the real
market need using a Faster Payback
“Customer Pull Model”
Happier Customers

Less Waste


You Need To Get Close To Customers....

Customers Gemba

Your Gemba

“In lean enterprises, traditional organizational structures give way to new
team-oriented organizations which are centred on the ﬂow of value, not on
functional expertise.” Mary and Tom Poppendieck


Customers want Capabilities NOT
Releases
“We have to delay the
“If your product had XYZ
release, because ABC is at risk and
it would be perfect”
it is for our most important
customer”

“If I don’t get ABC by
September, then I will not meet “But if I can deliver XYZ
my roll-out dead-line” now, then I can meet our
revenue plan!”


Build What The Customer Wants
(Features)

Releases are too big, and Stories
are (often) too small

Minimal Marketable Features
become the basis of development
and delivery

Strive for Evenness - Muda

Be careful not to offer too many
options! CC - Flickr - cogdogbog

“A minimal marketable feature is a chunk of functionality that delivers a subset
of the customer’s requirements, and that is capable of returning value to the
customer when released as an independent entity” - M Denne & H Cleland-Huang


Why Would You Need Releases Then?



What Cost $100,000 Per
Second?



Other Launch Examples?


What is the Role of the
Release?


What is the Role of the
Release?
Ultimately, you need to decouple
the Release activities from the
the Development:

Marketing

Design

Training, Knowledge Transfer

Day 2 Support

Channel Absorption

Etc., etc. HOKUSAI'S GREAT WAVE

“... set synchronization points based on experience and business need, and
learning how to meet every deadline every time.”
-- Mary Peppendieck (Dec 1, 2009)


Other Challenges With
Customer Driven Development
I am building a volume product,
how do I select the right lead
customer(s)?

How do I balance operational needs
to deliver to the mass market?

How do I manage commitments and
communicate a road map?

What are the implications on the
release strategy?
Marco Bellucci - Flickr / Creative Commons


What Most of Us Know...
Lean techniques
mapped into software
development opened
up a whole new
paradigm

Agile, Scrum, Kanban,
XP, tools, ...


Beyond Scrum, How Do You Complete
The Picture?

Thoughts? Ideas?


The ‘Lean Operational Model’

Prioritized Desired
Minimal Product Customer
Marketable (Product + Commitment
Features Capabilities)



Customer commitment
Pulls the required Content
Prioritized
Into Planning Desired
Minimal Product Customer
Marketable (Product + Commitment



Iterative

Prioritized Desired
Prioritized
Minimal Scrum Product Customer
Backlog of
Marketable Team (Product + Commitment
User Stories



Iterative

Prioritized Desired
Prioritized
Backlog of
User Stories

Beta Trials


Release and Backlog
Dynamics
Tension or Peaceful
Co-existence?

Two Parts

Planning

Execution


Release Planning / Prioritization
Pareto Analysis keeps you focussed on the Release 1
right things (top 20%). Do at; (Every 2 months)

l
Minima ble l
Minima ble
Portfolio
l
Marketa Marketa Minima ble
Feature User User User
eature Marketa User
Story Story F User Featu re User Story
Story Story Story

Product
l l
Minima ble Minima ble l
Marketa Marketa User Minima ble
Feature User User
Story Feature User User
Story Story Marketa
Feature
Release Story Story User
Story

Feature Marketa
l
Minima ble
l
Minima ble
Marketa
l
Minima ble
Fea ture User Fea ture User Marketa
ture User
Story Story Fea User Story
Story

and Story Level
l
Minima ble
Marketa l
Minima ble
A Set of MMF’s becomes the candidate Feature User
Story
User
Story
User
Story
User
Story Marketa
Feature User
Story
content for the release

Release plans should be negotiated 1 2 3 4 5 6 7 8 9 10

Sprint
Prioritization is only one input into
scheduling and assignment of feature
content


Attributing Business Value
During Planning...
Agree on how to do it. There is no One or
Right Way

Use Pareto Rule at each level (portfolio,
project, release, feature, and story)

Somewhat easier to ‘Estimate’ monetary
value of features, however very difﬁcult
to attribute value to individual user
stores.

Relative Business Value is about doing the
most important thing ﬁrst - Don’t worry
about being precise or concrete

Be careful to not starve innovation when
solely taking on content at the top of the
backlog


Negotiate During Release
Execution
Release
While the Release is running,
MMF’s become WIP im al
Minketa ble
Mar ure
Feat
Unﬁnished features are
User User User
considered to be waste Storyser
U
Story
Storyser
U
Story
Storyser
U
Story

You can still be Agile with
content adjustments, but if the Scrum
EPIC User User

content doesn’t ﬁt in the Team 2 Story Story

release, then do not allow it in.

Re-scope Scrum EPIC User User
Story
Story

Team 3
Punt (hold to Beta)

Add more people
1 2 3 4
Minimize Pre-release Work Sprint


Negotiate During Release
Execution
Release
While the Release is running,
MMF’s become WIP im al
Minketa ble
Mar ure
Feat
Unﬁnished features are
User er User
considered to be waste
Us
Storyser er
Storys
UU Storyser
U
Storyry
Sto Story

You can still be Agile with
content adjustments, but if the Scrum
EPIC User User

content doesn’t ﬁt in the Team 2 Story Story

release, then do not allow it in.

Re-scope Scrum EPIC User User
Story
Story

Team 3
Punt (hold to Beta)

Add more people
1 2 3 4
Minimize Pre-release Work Sprint


Backlog Health is Critical To
Execution - Muda
Need a prioritized backlog of stories

Can not assume how to write good
user stories

Each story should stand-alone
(potentially shippable)

Difﬁcult to move from non-
functional to vertically sliced stories
(I/O, options, role, Spike, Stub, etc.)

Ask what can you get done

Use “enabling speciﬁcations”


What About Downstream Operations?

Iterative

Prioritized Desired
Prioritized
Backlog of
User Stories

Beta Trials


What About Downstream Operations?

Iterative

Prioritized Desired
Prioritized
Backlog of
User Stories

Beta Trials

Will Value Stream Mapping
and Kaizen Work?


Key Takeaways
The Impossible is Possible
Create an Innovation Centric Culture
Use a Lean Operational Model
Value is Created at the Customers Gemba
Customers Buy Features
‘Agile Business Framework’ can leverage Scrum


Key Takeaways
The Impossible is Possible
Create an Innovation Centric Culture
Use a Lean Operational Model
Value is Created at the Customers Gemba
Customers Buy Features
‘Agile Business Framework’ can leverage Scrum

And Remember...

@achint_sandhu

Agility is not a
function of speed

@achint_sandhu

Agility is a function of
preparedness for change

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Agile Business Framework For Customer Driven Development

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