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Lean Startup
Product Teams
Principles of Success

Janice Fraser
CEO, LUXr
© LUXR.CO MARCH 2013
TWEET!

                       @clevergirl


                       #LeanStartup
                       cc @LUXRCO


© LUXR.CO MARCH 2013
http://saptstrength.com/




© LUXR.CO MARCH 2013
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© LUXR.CO MARCH 2013
freebestpictures.blogspot.com




© LUXR.CO MARCH 2013
thekitchn.com




© LUXR.CO MARCH 2013
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© LUXR.CO MARCH 2013
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© LUXR.CO MARCH 2013
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                                         brides.com
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© LUXR.CO MARCH 2013
LEAN
                       Startup

© LUXR.CO MARCH 2013
Build
                       measure
                        learn!




© LUXR.CO MARCH 2013
© LUXR.CO MARCH 2013
Lean Startup is NOT

                        Cheap Startup

                         Fast Startup

                       Shortcut Startup
© LUXR.CO MARCH 2013
Lean Startup is...

    An approach for building companies that are
    creating new products and services in
    situations of extreme uncertainty.

    The approach advocates creating small
    products that test the entrepreneurʼs
    assumptions, and using customer feedback to
    evolve the product, thereby reducing waste.


© LUXR.CO MARCH 2013
1.   List your assumptions.
          2.   Understand your customers.
          3.   Experiment efficiently.
          4.   Adjust direction based on evidence.

© LUXR.CO MARCH 2013
Lean Startup advocates experiments & learning




© LUXR.CO MARCH 2013
Go backward to go forward.

                       Learn             Build




                               Measure


© LUXR.CO MARCH 2013
Think of it like this...

                               TDD
       Test-driven product management

           A Lean Startup is a test-driven
                     COMPANY
© LUXR.CO MARCH 2013
Victory is
                       measured in
                        learning.


© LUXR.CO MARCH 2013
RISK = UNVALIDATED EFFORT
                                         Plot the difference


                                                                  MAKE
                                                                           release
                                                        MAKE
                                                                 release
                                                MAKE   release



                                 THINK


                                                                               TIME



© LUXR.CO MARCH 2013
RISK = UNVALIDATED EFFORT
                                 Lots of little wiggles




                                                          TIME



© LUXR.CO MARCH 2013
Each wiggle is a learning cycle.
     RISK = UNVALIDATED EFFORT




                                         MEASURE
                                                   MAKE

                                 BUILD         release
                                              BUILD



                                                          TIME

                                     LEARN
© LUXR.CO MARCH 2013
This will change
                      how you think
                     about your role,
                     your work, your
                   team, your process.

© LUXR.CO MARCH 2013
© LUXR.CO MARCH 2013
Principles for Lean Startup Teams
          1. Team first, then product.
          2. PM + Dev + UX = 1 Product Team
          3. Work out loud.
          4. Make processes repeatable, then routine.
          5. Donʼt get stuck in your happy place.
          6. Invest in clarifying the problem.
          7. Drive toward goals and measure outcomes.
          8. Ideas are cheap. Have a lot of them.
          9. Decide quickly. Hold decisions lightly.
          10. Donʼt carry the past.
© LUXR.CO MARCH 2013
Team first,
                   then product

© LUXR.CO MARCH 2013
Team first,
                          then product
              • Not just whoʼs on the team, but how
                   they work together (no ninjas, gurus,
                   rockstars!)

              • Invest time in developing productive
                   relationships




© LUXR.CO MARCH 2013
Chris Min
10 years as CEO, Wharton MBA,
      Silicon Valley trained
Burning
              social capital

© LUXR.CO MARCH 2013
Team first,
                          then product
              • Not just whoʼs on the team, but how
                   they work together (no ninjas, gurus,
                   rockstars!)

              • Invest time in developing productive
                   relationships

              • Continuous process improvement

© LUXR.CO MARCH 2013
Why does this matter to
                  Lean Startups?
              • Most of your decisions as a team, as
                   a company, will be wrong.

              • Flexible teams can solve almost any
                   problem.

              • Respectful, trusting team wastes little
                   time on pettiness, gossip, arguments


© LUXR.CO MARCH 2013
Lean Startup teams believe in...
   (from Lean Manufacturing and Extreme Programming)


                       Simplicity
                       Courage
                       Trust
                       Process
                       Continuous Improvement




© LUXR.CO MARCH 2013
The Influence of Agile

   “The courage to speak truths,
   pleasant or unpleasant, fosters
   communication and trust.

   “The courage to discard failing
   solutions and seek new ones
   encourages simplicity.

   “The courage to seek real,
   concrete answers creates
   feedback.”


© LUXR.CO MARCH 2013
If you get the
                       team right, you’ll
                        find your way to
                       the right product.


© LUXR.CO MARCH 2013
Dev + PM + UX = 1 team
                       No “Product Owner”




© LUXR.CO MARCH 2013
Dev
                                   Dev
                       Dev
                             Dev     Dev
                                   Dev
                         Dev



© LUXR.CO MARCH 2013
Learning culture     Small increments of
                                              working code
            Standup
                                                  Short development
  User Stories                    Dev                   cycles
                                          Dev
                            Dev                       Testing early &
      Refactor                                             often
                                   Dev      Dev
        Continuous                        Dev
        Integration
                                Dev                   Product Owner
                                                  Retrospectives
                       Lightweight communication over
                            written specifications
© LUXR.CO MARCH 2013
© LUXR.CO MARCH 2013
Dev
                                   Dev
                       Dev
                             Dev     Dev
                                   Dev
                         Dev



© LUXR.CO MARCH 2013
Dev
                                   Dev
                       Dev
                             Dev     Dev
                                   Dev
                         Dev



© LUXR.CO MARCH 2013
}
          Rest                         Dev
            of                               Dev
                                 Dev
           the                         Dev     Dev
          World        Product
                        Owner      Dev
                                             Dev




© LUXR.CO MARCH 2013
BLAME



                       }
          Rest                       Dev
            of                             Dev
                               Dev
           the                       Dev     Dev
          World                  Dev
                                           Dev




© LUXR.CO MARCH 2013
BURNOUT



                       }
          Rest                     Dev
            of                           Dev
                             Dev
           the                     Dev     Dev
          World                  Dev
                                         Dev




© LUXR.CO MARCH 2013
SHARED
      OWNERSHIP                                                  blah blah
                                                              blah blah
                                                                    blah blah
                                                                 blah blah
                                                                                         PRODUCT
                                                                                          IDEAS




                                                UX & Design   De
                             /PM                                     v&
                          Biz                                                   En
                                                                                     g

                                                                                                   •

                       Credit for this idea goes to Tim McCoy, now at Pivotal Labs
© LUXR.CO MARCH 2013
Design
                       + Product Management
                          + Development


                       = 1 product team


© LUXR.CO MARCH 2013
DESIGN
                       Empathizer-in-Chief
       Understand the customer at an expert level.
       Define and prioritize customer problems.
       Translate high-value needs into product.


       ➡ Design is a strategic problem-solving role,
             not merely an aesthetic role.




© LUXR.CO MARCH 2013
DEVELOPMENT
                   “Raise high the roof”
       Envision the best possible solutions based on
       available technology.
       Match code to problem and desired (ie,
       measurable) outcomes.


       ➡ Developer is a creative and experimentation
             role, as well as an execution role



© LUXR.CO MARCH 2013
PM & BUSINESS
                       Scales of Justice
       Identify the business the value in customer needs.
       Make fast, concrete decisions despite inadequate
       evidence and conflicting priorities.


       ➡ Decison-making is a service role, not an
             ownership role




© LUXR.CO MARCH 2013
When things go wrong, thereʼs no one to
            blame but ourselves...and thatʼs okay.

© LUXR.CO MARCH 2013
When to use this model
       ➡ DO use this model when developing a new
             product in situations of extreme uncertainty
             (ie, successive failures are likely)


       ➡ DO NOT use this model when you need to defer
             failure risk onto an external party (ie, in
             professional services)




© LUXR.CO MARCH 2013
Don’t carry the past.




© LUXR.CO MARCH 2013
© LUXR.CO MARCH 2013
Tom Conrad
           Grew Pandora from 10 people to IPO
© LUXR.CO MARCH 2013
© LUXR.CO MARCH 2013
© LUXR.CO MARCH 2013
© LUXR.CO MARCH 2013
© LUXR.CO MARCH 2013
Pandora-Style Planning
    •     Whole company (up to 6 ppl), every 60 or 90 days.

    •     Ahead of the meeting, everyone submits requests to the CEO/
          CTO, with the prompt “We would be stupid not to…”

    •     Submit each idea as a slide, with a headline and a few bullet
          points to explain.

    •     70-100 items. CEO/CTO de-duplicates and assigns a $-value that
          represents the amount of effort

    •     “Dollars” are created in an amount that represents current
          capaticy, divided equally among the 6 participants.

    •     Day-long working session to “shop” for the most important items.

    •     Chuck the unfunded. Group the fully funded, nearly funded,
          radically under-funded.

    •     Discuss and bargain until you have a set of fully funded items.
© LUXR.CO MARCH 2013
Friday, before I left for
                  this conference.



© LUXR.CO MARCH 2013
© LUXR.CO MARCH 2013
WHICH LEADS US TO

                Icebox Zero

© LUXR.CO MARCH 2013
Icebox Zero
        •    User stories go stale after 60 days.

        •    Rewrite as high-level objectives and put
             those into the 60-day planning process.

        •    When the high-level objectives are
             “funded”, rewrite the stories...better,
             stronger, more relevant, based on
             newest learning and metrics.

© LUXR.CO MARCH 2013
Thank you!

                         happiness@luxr.co

                            #LeanStartup

                       cc @LUXRCO, @clevergirl


© LUXR.CO MARCH 2013

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2013 scandev 10 principles keynote

  • 1. Lean Startup Product Teams Principles of Success Janice Fraser CEO, LUXr
  • 3. TWEET! @clevergirl #LeanStartup cc @LUXRCO © LUXR.CO MARCH 2013
  • 10. sedonaweddingcakes.com brides.com brides.com © LUXR.CO MARCH 2013
  • 11. LEAN Startup © LUXR.CO MARCH 2013
  • 12. Build measure learn! © LUXR.CO MARCH 2013
  • 14. Lean Startup is NOT Cheap Startup Fast Startup Shortcut Startup © LUXR.CO MARCH 2013
  • 15. Lean Startup is... An approach for building companies that are creating new products and services in situations of extreme uncertainty. The approach advocates creating small products that test the entrepreneurʼs assumptions, and using customer feedback to evolve the product, thereby reducing waste. © LUXR.CO MARCH 2013
  • 16. 1. List your assumptions. 2. Understand your customers. 3. Experiment efficiently. 4. Adjust direction based on evidence. © LUXR.CO MARCH 2013
  • 17. Lean Startup advocates experiments & learning © LUXR.CO MARCH 2013
  • 18. Go backward to go forward. Learn Build Measure © LUXR.CO MARCH 2013
  • 19. Think of it like this... TDD Test-driven product management A Lean Startup is a test-driven COMPANY © LUXR.CO MARCH 2013
  • 20. Victory is measured in learning. © LUXR.CO MARCH 2013
  • 21. RISK = UNVALIDATED EFFORT Plot the difference MAKE release MAKE release MAKE release THINK TIME © LUXR.CO MARCH 2013
  • 22. RISK = UNVALIDATED EFFORT Lots of little wiggles TIME © LUXR.CO MARCH 2013
  • 23. Each wiggle is a learning cycle. RISK = UNVALIDATED EFFORT MEASURE MAKE BUILD release BUILD TIME LEARN © LUXR.CO MARCH 2013
  • 24. This will change how you think about your role, your work, your team, your process. © LUXR.CO MARCH 2013
  • 26. Principles for Lean Startup Teams 1. Team first, then product. 2. PM + Dev + UX = 1 Product Team 3. Work out loud. 4. Make processes repeatable, then routine. 5. Donʼt get stuck in your happy place. 6. Invest in clarifying the problem. 7. Drive toward goals and measure outcomes. 8. Ideas are cheap. Have a lot of them. 9. Decide quickly. Hold decisions lightly. 10. Donʼt carry the past. © LUXR.CO MARCH 2013
  • 27. Team first, then product © LUXR.CO MARCH 2013
  • 28. Team first, then product • Not just whoʼs on the team, but how they work together (no ninjas, gurus, rockstars!) • Invest time in developing productive relationships © LUXR.CO MARCH 2013
  • 29.
  • 30. Chris Min 10 years as CEO, Wharton MBA, Silicon Valley trained
  • 31. Burning social capital © LUXR.CO MARCH 2013
  • 32. Team first, then product • Not just whoʼs on the team, but how they work together (no ninjas, gurus, rockstars!) • Invest time in developing productive relationships • Continuous process improvement © LUXR.CO MARCH 2013
  • 33. Why does this matter to Lean Startups? • Most of your decisions as a team, as a company, will be wrong. • Flexible teams can solve almost any problem. • Respectful, trusting team wastes little time on pettiness, gossip, arguments © LUXR.CO MARCH 2013
  • 34. Lean Startup teams believe in... (from Lean Manufacturing and Extreme Programming) Simplicity Courage Trust Process Continuous Improvement © LUXR.CO MARCH 2013
  • 35. The Influence of Agile “The courage to speak truths, pleasant or unpleasant, fosters communication and trust. “The courage to discard failing solutions and seek new ones encourages simplicity. “The courage to seek real, concrete answers creates feedback.” © LUXR.CO MARCH 2013
  • 36. If you get the team right, you’ll find your way to the right product. © LUXR.CO MARCH 2013
  • 37. Dev + PM + UX = 1 team No “Product Owner” © LUXR.CO MARCH 2013
  • 38. Dev Dev Dev Dev Dev Dev Dev © LUXR.CO MARCH 2013
  • 39. Learning culture Small increments of working code Standup Short development User Stories Dev cycles Dev Dev Testing early & Refactor often Dev Dev Continuous Dev Integration Dev Product Owner Retrospectives Lightweight communication over written specifications © LUXR.CO MARCH 2013
  • 41. Dev Dev Dev Dev Dev Dev Dev © LUXR.CO MARCH 2013
  • 42. Dev Dev Dev Dev Dev Dev Dev © LUXR.CO MARCH 2013
  • 43. } Rest Dev of Dev Dev the Dev Dev World Product Owner Dev Dev © LUXR.CO MARCH 2013
  • 44. BLAME } Rest Dev of Dev Dev the Dev Dev World Dev Dev © LUXR.CO MARCH 2013
  • 45. BURNOUT } Rest Dev of Dev Dev the Dev Dev World Dev Dev © LUXR.CO MARCH 2013
  • 46. SHARED OWNERSHIP blah blah blah blah blah blah blah blah PRODUCT IDEAS UX & Design De /PM v& Biz En g • Credit for this idea goes to Tim McCoy, now at Pivotal Labs © LUXR.CO MARCH 2013
  • 47. Design + Product Management + Development = 1 product team © LUXR.CO MARCH 2013
  • 48. DESIGN Empathizer-in-Chief Understand the customer at an expert level. Define and prioritize customer problems. Translate high-value needs into product. ➡ Design is a strategic problem-solving role, not merely an aesthetic role. © LUXR.CO MARCH 2013
  • 49. DEVELOPMENT “Raise high the roof” Envision the best possible solutions based on available technology. Match code to problem and desired (ie, measurable) outcomes. ➡ Developer is a creative and experimentation role, as well as an execution role © LUXR.CO MARCH 2013
  • 50. PM & BUSINESS Scales of Justice Identify the business the value in customer needs. Make fast, concrete decisions despite inadequate evidence and conflicting priorities. ➡ Decison-making is a service role, not an ownership role © LUXR.CO MARCH 2013
  • 51. When things go wrong, thereʼs no one to blame but ourselves...and thatʼs okay. © LUXR.CO MARCH 2013
  • 52. When to use this model ➡ DO use this model when developing a new product in situations of extreme uncertainty (ie, successive failures are likely) ➡ DO NOT use this model when you need to defer failure risk onto an external party (ie, in professional services) © LUXR.CO MARCH 2013
  • 53. Don’t carry the past. © LUXR.CO MARCH 2013
  • 55. Tom Conrad Grew Pandora from 10 people to IPO © LUXR.CO MARCH 2013
  • 60. Pandora-Style Planning • Whole company (up to 6 ppl), every 60 or 90 days. • Ahead of the meeting, everyone submits requests to the CEO/ CTO, with the prompt “We would be stupid not to…” • Submit each idea as a slide, with a headline and a few bullet points to explain. • 70-100 items. CEO/CTO de-duplicates and assigns a $-value that represents the amount of effort • “Dollars” are created in an amount that represents current capaticy, divided equally among the 6 participants. • Day-long working session to “shop” for the most important items. • Chuck the unfunded. Group the fully funded, nearly funded, radically under-funded. • Discuss and bargain until you have a set of fully funded items. © LUXR.CO MARCH 2013
  • 61. Friday, before I left for this conference. © LUXR.CO MARCH 2013
  • 63. WHICH LEADS US TO Icebox Zero © LUXR.CO MARCH 2013
  • 64. Icebox Zero • User stories go stale after 60 days. • Rewrite as high-level objectives and put those into the 60-day planning process. • When the high-level objectives are “funded”, rewrite the stories...better, stronger, more relevant, based on newest learning and metrics. © LUXR.CO MARCH 2013
  • 65. Thank you! happiness@luxr.co #LeanStartup cc @LUXRCO, @clevergirl © LUXR.CO MARCH 2013