Zach Nies, Rally Software Presentation at Lean Startup SXSW

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Zach Nies, CTO of Rally Software Presentation on effectiveness at the 2012 Lean Startup SXSW in Austin

Transcript of Zach Nies, Rally Software Presentation at Lean Startup SXSW

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Increasing our national

efficiency

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Modern management is still based on

efficiency

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Really?

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Measure your effectiveness

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Increase your success

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A startup lives in extreme

uncertainty

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30 Years

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ProbablePlausible

OrderedUnordered

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ProbablePlausible

OrderedUnordered

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ProbablePlausible

OrderedUnordered

PlanAnalyze

CoevolutionLearn

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The only valid model of a complex system is the system itself.

Murray Gell-Mann

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http://www.flickr.com/photos/isaacmao/380257543

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How we work

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Agile Cadence

Daily – standup & plan the day

Weekly – review full business

Biweekly – demo from engineering

Monthly – pivot, persevere, amplify

Quarterly – review & align strategy

Yearly – set strategy

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Track

The flow of work

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Hunch Hypothesis Experiment Measure & Test

ValidatedLearning

Track

The flow of knowledge

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Case Study

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Customer Development

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Is there an emerging, high-growth market for Agile Portfolio Management?

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“Get out of the building!”

Steve Blank

and get into the complex system

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100 validation interviews10 earlyvangelists40 preview customers34 builds

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Hunch Hypothesis Experiment Measure & Test

ValidatedLearning

Track

The flow of knowledge

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Hunch:Agile Portfolio Management will help us win more deals

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Experiment:“Sell” an MVP preview

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Experiment:“Sell” an MVP preview

Vanity Metric

Month

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Experiment:“Sell” an MVP preview

Deals Directly Influenced

Month

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“requiring configuration changes is not an acceptable way for releases to hit our enterprise working environment.”

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Hunch:Agile Portfolio Management will help us win more deals

Validated Learning:The MVP directly helped us win more deals

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Pivot

Persevere

Amplify

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Hunch:Adding more developers will help us productize this MVP

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Experiment:Hire developers as fast as possible

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Experiment:Hire developers as fast as possible

Vanity Metric

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Experiment:Hire developers as fast as possible

Feature Throughput

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Hunch:Adding more developers will help us productize this MVP

Validated Learning:Adding developers dramatically increased feature throughput

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Pivot

Persevere

Amplify

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Hunch:Optimizing the UI will improve adoption

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Experiment:Implement usability enhancements

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Experiment:Implement usability enhancements

Vanity Metric

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Experiment:Implement usability enhancements

User Adoption by Cohorts

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Hunch:Optimizing the UI will improve adoption

Validated Learning:Adoption didn’t improve

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Pivot

Persevere

Amplify

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Hunch:Adding features will improve product adoption

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Experiment:Implement earlyvangelist feature requests

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Experiment:Implement earlyvangelist feature requests

Vanity Metric

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Experiment:Implement earlyvangelist feature requests

Feature Usage

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Hunch:Adding features will improve product adoption

Validated Learning:Found the compelling features

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Pivot

Persevere

Amplify

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We haveproduct-market fit

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Almost ContinuousDeployment

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Hunch:Releasing more often will improve quality

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Experiment:Release every day

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Experiment:Release every day

Vanity Metric

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Experiment:Release every day

Cases from Defects

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Hunch:Releasing more often will improve quality

Validated Learning:Smaller release batches improved quality

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Pivot

Persevere

Amplify

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Case Study

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Modern management is still based on

efficiency

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Agile +Lean Startup

=Effectiveness

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Out learn and out execute your competitors

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