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Page 1: Scaling Lean: Project, Program, Portfolio

SCALING LEAN: PROJECT, PROGRAM, PORTFOLIO

JEFF GOTHELF / @JBOOGIE / [email protected]

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NO ONE WANTS TO BUY EXPERIMENTS

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LEAN STARTUP REDUCES RISK

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LEAN + AGILE = CONTINUOUS LEARNING

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AT THE CORE OF CONTINUOUS LEARNING IS EXPERIMENTATION & HUMILITY

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FOR STARTUPS, IT’S EXPERIMENT OR DIE

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AT THE ENTERPRISE LEVEL, NOT SO MUCH

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AND YET, IN THE ENTERPRISE, IT’S ALL AGILE & LEAN (LANGUAGE)

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AND YET, IN THE ENTERPRISE, IT’S ALL AGILE & LEAN (LANGUAGE)

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WHEN STRETCHED TO BIGGER ORGS LEAN STARTUP BREAKS

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WHEN STRETCHED TO BIGGER ORGS LEAN STARTUP BREAKS

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WHY DOES LEAN SEEM TO BREAK AT SCALE?

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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)

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HOW CAN WE MOVE BIG ORGS PAST THESE HURDLES?

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SEVERAL WAYS TO THINK ABOUT SCALING

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SEVERAL WAYS TO THINK ABOUT SCALING

PROJECTHow do we incorporate more learning into each initiative?

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SEVERAL WAYS TO THINK ABOUT SCALING

PROJECTHow do we incorporate more learning into each initiative?

PROGRAMHow do we coordinate multiple discovery/delivery efforts focused on the same goal?

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SEVERAL WAYS TO THINK ABOUT SCALING

PROJECTHow do we incorporate more learning into each initiative?

PROGRAMHow do we coordinate multiple discovery/delivery efforts focused on the same goal?

PORTFOLIOHow do we coordinate multiple programs, enforce governance and meet shareholder expectations?

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SCALING CHALLENGES AT EACH LEVEL

PROJECT PROGRAM PORTFOLIO

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GOTHELF.CO / @JBOOGIESCALING CHALLENGES AT EACH LEVEL

PROJECT PROGRAM PORTFOLIO

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GOTHELF.CO / @JBOOGIESCALING 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

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GOTHELF.CO / @JBOOGIESCALING 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

Page 23: Scaling Lean: Project, Program, Portfolio

GOTHELF.CO / @JBOOGIESCALING 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

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THERE ARE NO SHORTAGE OF RECIPES

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THERE ARE NO SHORTAGE OF RECIPES

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THERE ARE NO SHORTAGE OF RECIPES

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THERE ARE NO SHORTAGE OF RECIPES

I can see myself in the picture. So I like it!

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THESE ARE ONLY FRAMEWORKS

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SCALING PRINCIPLES, NOT PROCESSES

“Process brings seductively strong near-term outcomes.”

- Netflix culture presentation (2009)

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PRINCIPLE #1 CUSTOMER VALUE = BUSINESS VALUE

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TACTIC: MANAGE TO OKR’S

OBJECTIVE KEY RESULTS

@CWODTKE

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TACTIC: MANAGE TO OKR’S

OBJECTIVE•Qualitative

•Inspirational

•Time bound

•Actionable by the team independently (particularly relevant in the enterprise)

KEY RESULTS

@CWODTKE

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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

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TACTIC: MANAGE TO OKR’S @CWODTKE

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TACTIC: MANAGE TO OKR’S @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 USERSEXAMPLE OF KEY RESULT: 6 OF THE TOP 10 CARMAKERS MANDATE OUR PLATFORM FOR THEIR DEALERSHIPSEXAMPLE OF KEY RESULT: 40% OF AUTO AUCTION HOUSES USING OUR INVENTORY API

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TACTIC: EVIDENCE-BASED QUARTERLY PLANNING

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TACTIC: EVIDENCE-BASED QUARTERLY PLANNING

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TACTIC: EVIDENCE-BASED QUARTERLY PLANNING

SHIP

SENSERESPOND Q1: OKR’S

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TACTIC: EVIDENCE-BASED QUARTERLY PLANNING

SHIP

SENSERESPOND Q1: OKR’S

STAKEHOLDERS

EVERY QUARTER

$/€/£

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TACTIC: EVIDENCE-BASED QUARTERLY PLANNING

SHIP

SENSERESPOND Q1: OKR’S

STAKEHOLDERS

EVERY QUARTER

$/€/£$/€/£

NEW OKR

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TACTIC: HORIZON PLANNING

Source: McKinsey, Intuit, et al

THREE TIME HORIZONS TO MEASURE PROGRESS

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TACTIC: HORIZON PLANNING

Source: McKinsey, Intuit, et al

THREE TIME HORIZONS TO MEASURE PROGRESSHORIZON 3: SHORT TERM

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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

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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

HORIZON 2: MID TERM

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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

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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

HORIZON 1: LONG TERM

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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

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PRINCIPLE #2 VALUE LEARNING OVER DELIVERY

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PRINCIPLE #2 VALUE LEARNING OVER DELIVERY

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TACTIC: YOU CAN’T TEST EVERYTHING

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TACTIC: ALIGN TO A SINGLE METRIC OF PROGRESS

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TACTIC: BUILD MOMENTUM WITH PILOT TEAMS

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TACTIC: SANDBOXES

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TACTIC: GET CREATIVE WITH EXPERIMENTS

Source: @evolvable, @tyro

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TACTIC: GET CREATIVE WITH EXPERIMENTS

Source: @evolvable, @tyro

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PRINCIPLE #3 RADICAL TRANSPARENCY

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TACTIC: TRANSPARENCY THROUGH RITUALS

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TACTIC: TRANSPARENCY THROUGH RITUALS

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TACTIC: ACCESS TO CUSTOMERS

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TACTIC: ACCESS TO CUSTOMERS

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TACTIC: ACCESS TO DATA

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IT’S DIFFICULT TO COORDINATE LEAN ACTIVITIES ACROSS TEAMS

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IT’S DIFFICULT TO COORDINATE LEAN ACTIVITIES ACROSS TEAMS

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IT’S DIFFICULT TO COORDINATE LEAN ACTIVITIES ACROSS TEAMS

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TACTIC: CROSS-TEAM COORDINATION

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TACTIC: CROSS-TEAM COORDINATION

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PRINCIPLE #4 HUMILITY IN ALL THINGS

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PRINCIPLE #4 HUMILITY IN ALL THINGS

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TACTIC: PRODUCT DISCOVERY

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TACTIC: PRODUCT DISCOVERY

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TACTIC: PRODUCT DISCOVERY

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TACTIC: PRODUCT DISCOVERY

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TACTIC: DON’T OFFSHORE DEVELOPMENT

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TACTIC: DON’T OFFSHORE DEVELOPMENT

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TACTIC: “ORBITAL MODEL” FOR SUPPORT OUTSIDE OF PRODUCT DEVELOPMENT

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TACTIC: “ORBITAL MODEL” FOR SUPPORT OUTSIDE OF PRODUCT DEVELOPMENT

CORE TEAM

LEGAL

BRAND

MARKETING

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TACTIC: MODERN STAFFING MODEL

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TACTIC: MODERNIZE TECH STACK

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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. It aims at establishing a culture and environment where building, testing, and releasing software, can happen rapidly, frequently, and more reliably.

- Wikipedia

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TACTIC: MODERNIZE TECH STACK

Source: @billwscott (slideshare)

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TACTIC: MODERNIZE TECH STACK

Source: @billwscott (slideshare)

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THIS IS A TOP-DOWN EFFORT

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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

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SEEK OUT THE SHIT UMBRELLA

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SHOW THAT IT’S OK TO FAIL

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SHOW THAT IT’S OK TO FAIL

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LEAN PRINCIPLES THAT WORK AT ANY SCALE

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LEAN PRINCIPLES THAT WORK AT ANY SCALE

PRINCIPLE #1: CUSTOMER VALUE = BUSINESS VALUEPRINCIPLE #2: VALUE LEARNING OVER DELIVERYPRINCIPLE #3: RADICAL TRANSPARENCYPRINCIPLE #4: HUMILITY IN ALL THINGS

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IF YOU CAN, SHARE WHAT YOU KNOW

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IF YOU CAN, SHARE WHAT YOU KNOW

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THANK YOU!JEFF GOTHELF / @JBOOGIE / [email protected]

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