Post on 23-Jul-2020
From Factory Floor to Your Cubicle:
Can ProductCan Product Management Be
?PCS 2013Lean?
Why are we here?Why are we here?
• One product concept in seven becomesOne product concept in seven becomes a winner
• 44% of product development projects44% of product development projects fail to achieve their profit targets
• 49% of product development projects• 49% of product development projects miss their launch date targets (by 35% of their original schedule)of their original schedule)
• 28% of businesses don’t measure their new product development results
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new product development resultsSource: Cooper & Edgett, Lean, Rapid, and Profitable New Product Development, 2005
How do “Best in Class” fcompanies perform?
• 77% of product efforts meet profit77% of product efforts meet profit objectives
• 80% of product efforts are considered• 80% of product efforts are considered successful79% l h h d l• 79% launch on schedule, slippage is reduced to 17%
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Source: Cooper & Edgett, Lean, Rapid, and Profitable New Product Development, 2005
What conditions create blsustainable success?
• Speed: Not necessarily ‘first to market’• Speed: Not necessarily first to market , but best to market, on time–Delivers competitive advantage–Results in higher profitabilityg p y–Keeps pace with fast‐changing markets
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Source: Cooper & Edgett, Lean, Rapid, and Profitable New Product Development, 2005
Bosses want more, faster!Bosses want more, faster!
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Speed = Lean?Speed Lean?
Lean’s goal: Find the shortest fastest path toLean s goal: Find the shortest, fastest path to deliver maximum customer value.
How can we leverage Lean principles in Product M l kManagement to get more value to market,
faster?
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Key Lean Principles and Practices• Reduce waste
– Value stream analysis– Right metrics: focus on value– Quantifying the cost of delayQuantifying the cost of delay
• Pull, not push– Kanban & WIP limits
• Flow– Small batch, moving to flow
• Respect for peopleRespect for people– Decentralized decisions
• Continuous improvement
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Value Stream AnalysisValue Stream Analysis
Submit to Assign Submit OptOpt
Assign product council
IdeaIdeaAssign PMApproveApprove business
case
OptyAnalysisOpty
Analysis dev team
ApproveApprove
V lValue
Waste
To verification
Design, Build TestDesign, Build Test
To OperationsValidationValidation Gain valueLaunchLaunch
Efficiency =Value
Waste
Efficiency Total Value/
(Total Value+TotalWaste)
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Lean‐ing the Front EndLean ing the Front End
b A iSubmit to product council
IdeaIdeaAssign PMApproveApprove
Submit business case
OptyAnalysisOpty
Analysis
Assign dev team
ApproveApprove
• Identify value stream
•Strategic
• Initial screening and decision
• Customer Development
• Lean or
•WSJF or Cost of Delay Prioritization
bucketing•Portfolio strategy
criteria Business Canvas
WIP Limits, Smaller Batch Size
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Lean‐ing the Back EndLean ing the Back End
To verification
Design, Build TestDesign, Build Test
To OperationsValidationValidation Gain valueLaunchLaunch
Poppendiecks’ 7 Wastes in Software DevelopmentPoppendiecks 7 Wastes in Software Development1. Partially done work: Smaller batch sizes, re‐prioritize between
batches2 Extra features: MVP Validated learning2. Extra features: MVP, Validated learning3. Re‐learning: Dedicate teams to product lines4. Hand‐offs: Cross‐functional teams5. Task switching: Dedicated teams stable teams smaller batch size5. Task switching: Dedicated teams, stable teams, smaller batch size6. Delays: Limit Work In Process7. Defects: Team closer to customer/PO, Test Driven Development,
Continuous IntegrationContinuous Integration
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Lean‐ing the Back EndLean ing the Back End
To verification
Design, Build TestDesign, Build Test
To OperationsValidationValidation Gain valueLaunchLaunch
• A/B testing• Eliminate though
•Measurable marketing
better Customer Development
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Top Factors in Product SuccessCorrelation of factors: With time efficiency With profitability
and on‐time launch (NPV, Payback)
Unique, superior product No effect 0.530Customer focused 0 406 0 440Customer‐focused 0.406 0.440Cross‐functional teams 0.483 0.351
Front‐end loaded 0.408 0.366Sharp, early product definition 0.242 0.413
Market attractiveness 0.215 0.312
Q lit f th l h 0 205 0 286Quality of the launch 0.205 0.286
1.0= perfect 1:1 correlationSource: Cooper & Edgett, Lean, Rapid, and Profitable New Product Development, 2005
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ReferencesReferences
• Cooper & Edgett, Lean, Rapid, and Profitable New Coope & dgett, ea , ap d, a d o tab e eProduct Development
• Ries, Lean Startupp• Blank & Dorf, Startup Owner’s Manual• Reinertsen, The Principles of Product , pDevelopment Flow
• Poppendieck, Implementing Lean Software Development
• Leffingwell, Agile Software Requirements
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Want more?Want more?
• Learn more about Lean Product ManagementLearn more about Lean Product Management– Upcoming workshops
• Pivotalpm com/LeanPMI‐OnsitePivotalpm.com/LeanPMI‐Onsite• Pivotalpm.com/LeanPMI‐Public
– Contact me: lindam@pivotalpm.comContact me: lindam@pivotalpm.com425‐806‐6982
14© Pivotal Product Management, LLC