Lean Startup Tools for Agile Product Teams - Lithespeed

Lean Startup Tools for Agile Product Teams Lean+Agile DC, Feb. 11, 2014  

Meet the Presenter Arlen Bankston •  Co-Founder of LitheSpeed, LLC •  User experience & product development background •  15 years of Agile experience •  Lean Six Sigma Master Black Belt •  Lately 40% training, 20% each of coaching, product development & management 2

Agenda Agile & The Lean Startup Movement Holistic Discovery Risk-driven Product Backlog Exploratory Sprints Data-driven Sprint Review Validating Product Increment

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Agile & The Lean Startup Movement

Risks of Agile 1. 

Backlog items are not always validated against true enduser needs


Critical reliance on a fallible Product Owner


Lack of clear advice on how and when to “pivot”


IT bias… fall back on what we know: build, build, build 5

Lean Startup Movement – A Brief History Steve Blank coined “customer discovery” in the book “Four Steps to the Epiphany” Steve funded Eric Ries’s startup company IMVU in 2004

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In 2010, Alex Osterwalder wrote “Business Model Generation” In 2011, Eric wrote “The Lean Startup”

Lean Discovery + Agile Delivery Illustrated


Holis'c     Discovery  

Risk-­‐driven  Product   Backlog  

Exploratory     Sprints  

Data-­‐driven     Sprint  Review  

List  Market,   Customer,   Product  risks  

Priori'ze  by   riskiest   assump'on  

Team   intercepts   users  

Review  experiment   results  

Illustrate   business   model/case  

Include   valida'on   mechanisms  

Team  helps   design   experiments  

Valida'ng   Product  Increment   Measure  key   usage  paJerns  

Pivot,  Persevere,   Punt   Scan  for  new   opportuni'es  

Focus  MVP  on   early  adopters  

Holistic Discovery Assessing key customers, problems & markets Holis'c     Discovery   List  Market,   Customer,   Product  risks   Illustrate   business   model/case  

Risk-­‐driven   Product  Backlog  

Exploratory     Sprints  

Data-­‐driven     Sprint  Review  

Valida'ng   Product   Increment  

Itera've  Risk  Management       Product   Risk  

Customer  Risk  

Market  Risk  

• Are we solving a substantial problem? • What are our technical challenges?

• Who are our ideal customers? • Do we understand their needs?

• Do we have a viable market niche? • Are we better than the competition? 9  

Problem Interview Talk with early adopters to learn whether they share your perception of the problem. This is a sample interview script to validate & rank problems with users.


Thanks to Ash Maurya, author of Running Lean for this format: http://www.runningleanhq.com/

Test  Your  Riskiest  AssumpBon   We are envisioning a monthly studio panel of users and experts discussing prioritized topics related to Lean and Agile methods. Our Riskiest Assumption… People will pay ~$50/month for content that is often available for free, if the quality and delivery channels are sufficiently appealing.

Would you?

Discovering Customer Needs [In]validate your assumptions by: •  Interviewing users •  Observing users in their native environments •  Manually simulating your system (“concierge”) •  Rapid usability testing •  Tracking behavior of customer cohorts (related groups) 12  

Validation Board for Experimentation Plan and track experiments to test your assumptions about customers, problems & solutions. Pivot based upon the results that you see.



Adjusting the Plan Based on what you learn, you might: •  Stick to the plan •  Target another customer group •  Target a different need •  Expand or contract feature focus •  Change platforms or architecture •  Change channels •  Kill the idea entirely

Persevere, pivot or punt. 14

Lean  Canvas  to  draS  your  Business  Model   Draft your business case in a simple, single-page format, and adjust based upon the results of your interviews, prototypes and releases.


Thanks  to  Ash  Maurya,  Leanstack.com  

Example  Lean  Canvas  for  Sensei  

Sensei  is  an  Agile  retrospecBve  tool  by  LitheSpeed.    www.senseitool.com  

Risk-Driven Product Backlog Challenging & testing your assumptions Holis'c     Discovery  

Risk-­‐driven   Product  Backlog   Priori'ze  by   riskiest   assump'on   Include   valida'on   mechanisms  

Exploratory     Sprints  

Data-­‐driven     Sprint  Review  

Valida'ng   Product   Increment  

The  MVP   A “Minimum Viable Product” might be: •  •  • 

Learning: Onsite observation, fake menus, ads Pitching: Preorders, comparisons, joint design Experiencing: Concierge, prototypes Later  releases   focus  on  scaling.

Early releases focus on quickly & cheaply testing ideas. 18

Unbounce  for  Landing  Pages   You can create dynamic landing pages that help you tune your pitch and garner pre-orders with tools like Unbounce.

Plan  Releases  &  Pivots  with  a  Story  Map   Epic  1   MVP   Pivot  Key   DifferenBators  


Flexibility  &   Safety  


Scaling  &   OpBmizaBon  


Story  A1  

Epic  2  

Key   Ac'vity  


Major   Component  

D1   C1   C2   C3  


D1   D2  


Exploratory Sprints Quick, cheap ways to validate your approach Holis'c     Discovery  

Risk-­‐driven   Product  Backlog  

Exploratory     Sprints   Team   intercepts   users   Team  helps   design   experiments  

Data-­‐driven     Sprint  Review  

Valida'ng   Product   Increment  

Concierge  to  Test  without  Coding   A manual simulation of your product or service.

Balsamiq  Mockups  for  Low-­‐Fi  Prototyping   Test layouts and flows without coding or graphic design.


Data-Driven Sprint Review Using data to drive decisions Holis'c     Discovery  

Risk-­‐driven   Product   Backlog  

Exploratory     Sprints  

Data-­‐driven     Sprint  Review   Review  experiment   results   Pivot,  Persevere,  Punt   Scan  for  new   opportuni'es  

Valida'ng   Product   Increment  

Lean  Canvas  as  Dynamic  Dashboard   Think  of  your  project   as  a  set  of  small   experiments.     The  results  of  these   experiments  should   be  simply  stated  and   reviewed  regularly   to  guide  decisions   about  product   direc'on.  

Thanks  to  Ash  Maurya,  author  of  Running  Lean:   hJp://www.runningleanhq.com/  


“Pirate”  Metrics  &  Customer  Funnels   AcquisiBon  


How many users are interested and find you? Preorders, signups, ad responses How is their experience when they do? Successful runs through key use case



Do they stick around for the long run? 30, 60, 90 day retention by cohort Do they pay? Ratio of paying users or ROI


Do they tell their friends? Successful recommendations

Thanks to Dave McClure http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version


Tes'ng  the  Pitch   We originally interviewed 9 people, and 8/9 (89%) said they were very interested, but that they would greatly prefer a corporate plan to personal investment.

How well did you predict your peers’ opinions?

Validating Product Increment Analyzing & evolving your production system Holis'c     Discovery  

Risk-­‐driven   Product  Backlog  

Exploratory     Sprints  

Data-­‐driven     Sprint  Review  

Valida'ng   Product   Increment   Measure  key   usage   paJerns   Focus  MVP   on  early   adopters  

Quan'ta've  A/B  &  MulBvariate  TesBng   Split (A/B) testing randomly presents users with competing versions of specific application pages and features. •  See what works best by running parallel experiments •  Choose the winning option after appropriate time

Header   Sign  up   form  

Demo   movie  



Header   Story   Demo   movie  

Sign  up   form  


58%  of  visitors   signed  up  

35%  of  visitors   signed  up  

A/B  Tes'ng  Sensei  with  OpBmizely   We  found  a  60%  increase  in  registraBons  just  from  adding  the   term  “distributed  teams”  to  our  landing  page.  

Zopim  Live  Chat     We  envisioned  live  chat  to  be  largely  a  help  tool,  but  it  ended   up  connecBng  us  with  our  most  passionate  early  adopters.  

Thank You!

AddiBonal  Learning  Opportuni'es   • 

Lean Startup in the Enterprise Meetup

Monthly at LitheSpeed office in Herndon, VA • 

Lean Startup Machine

Travels nationwide • 

Lean Startup Conference

Annually in San Francisco • 

Lean + Agile Practitioner’s Forum

Coming soon!

Reading  List  –  Lean  &  Agile  Innova'on   •  •  •  •  •  •  •  • 

Running Lean – Maurya Essential Scrum – Rubin The Entrepreneur's Guide to Customer Development – Vlaskovits The Lean Startup – Ries Discover to Deliver – Gottesdiener The Other Side of Innovation – Govindarajan Four Steps to the Ephiphany – Blank Business Model Generation – Osterwalder

Contact Us for Further Information Arlen Bankston Managing Partner, LitheSpeed [email protected] On the Web: http://www.lithespeed.com http://www.sanjivaugustine.com "I only wish I had read this book when I started my career in software product management, or even better yet, when I was given my first project to manage. In addition to providing an excellent handbook for managing with agile software development methodologies, Managing Agile Projects offers a guide to more effective project management in many business settings." John P. Barnes, former Vice President of Product Management at Emergis, Inc.



Lean Startup Tools for Agile Product Teams - Lithespeed

Lean Startup Tools for Agile Product Teams Lean+Agile DC, Feb. 11, 2014   Meet the Presenter Arlen Bankston •  Co-Founder of LitheSpeed, LLC •  User...

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