12. product
metrics
Course structure
Kaizen culture Customer-focused
product definition
Product Development
via build-measure-
learn
Kaizen enablers
agile kaizen intro Metrics & goals
actionable metrics
funnel metrics
product management &
product development
traditional vs. agile
pm process
defining opportunities:
customer, problem, solution
validating your assumptions:
MVE, MVP, MMFS
communicating your vision:
product strategy & scope
defining your product:
structure & stories
managing your backlogusing model canvas to
gather your assumptions
Kaizen events
13. product
metrics
exercise: what do you want to learn?
Kaizen culture Customer-focused
product definition
Product Development
via build-measure-
learn
Kaizen enablers
agile kaizen intro Metrics & goals
actionable metrics
funnel metrics
product management &
product development
traditional vs. agile
pm process
defining opportunities:
customer, problem, solution
validating your assumptions:
MVE, MVP, MMFS
communicating your vision:
product strategy & scope
defining your product:
structure & stories
managing your backlogusing model canvas to
gather your assumptions
Kaizen events
14. product
metrics
Course structure
Kaizen culture Customer-focused
product definition
Product Development
via build-measure-
learn
Kaizen enablers
agile kaizen intro Metrics & goals
actionable metrics
funnel metrics
product management &
product development
traditional vs. agile
pm process
defining opportunities:
customer, problem, solution
validating your assumptions:
MVE, MVP, MMFS
communicating your vision:
product strategy & scope
defining your product:
structure & stories
managing your backlogusing model canvas to
gather your assumptions
Kaizen events
17. Agile kaizen
Culture: noble cause, values, behaviors, artifacts
story telling
cultural enablers / failure causes
18. kaizen enablers
• Purpose: show them a noble cause, a global purpose beyond profits, company growth, and stakeholder wealth. Be open to change for the sake of a greater purpose.
• Learning and Long-term vision: people must be conscious of the effects of investment over time and the expected better state. Learning must be a real priority.
Short-term urgencies must not seriously impact strategic goals.
• Whole system approach: Show them the whole picture and avoid the temptation of suboptimization. Be able to see root causes of the problems, not just their
symptoms.
• Constant communication and sustained effort: in all ways, not just from managers to employees. Communication is part of our work, not just additional work.
Continuous improvement must be sustained on a continuous base, not just on occasional events.
• Quality first: technical debt will cost more in the future than the cost of building quality into the product up front.
• Courage and the absence of fear: Everyone should be able to point at what they consider to be an impediment, a defect, or an
improvement opportunity.
• Transparency: people should be able to question everything. Every trace of a ‘blame game’ culture must be eradicated. Internal politics
and personalñ agendas shouldn’t drive company decisions.
• Empowerment and ownership: improving the system is everybody’s job. Ownership also means responsibility and accountability. Have
enough resources to improve.
• Teamwork and self-organization: empowered individuals should actively seek to collaborate with each other. Teams should be able to
plan and execute for improvement.
• Respect and Recognition: use constructive feedback and, especially, give recognition for individual and team contributions to company
improvement.
19. exercise: kaizen enablers
• Purpose
• Learning and Long-term vision
• Whole system approach
• Constant communication and
sustained effort
• Quality first
•Courage and the absence of fear
• Transparency
• Empowerment and ownership
• Teamwork and self-
organization
•Respect and Recognition
22. exercise: product retrospective
Things we liked:
maximize
impediments: remove or
reduce
ideas, things to
try
Kudos!
Last retrospective plan:
what we tried, how were
the results
New plan: 4 - 5 things
we are going to try,
detailed as a plan
23. product
metrics
Course structure
Kaizen culture Customer-focused
product definition
Product Development
via build-measure-
learn
Kaizen enablers
agile kaizen intro Metrics & goals
actionable metrics
funnel metrics
product management &
product development
traditional vs. agile
pm process
defining opportunities:
customer, problem, solution
validating your assumptions:
MVE, MVP, MMFS
communicating your vision:
product strategy & scope
defining your product:
structure & stories
managing your backlogusing model canvas to
gather your assumptions
Kaizen events
24. EXERCISE: PROduct management
What’s product Management?
HOW DO YOU DECIDE WHAT TO BUILD?
HOW DO YOU KNOW WHEN ARE YOU READY TO START BUILDING?
31. PROduct management
Faster horses - Product Death Cycle (david j. bland)
Nobody uses
our product
Ask customer
what features
Are missing
Build missing
features
32. PROduct management
Faster horses - Product Death Cycle (david j. bland)
Nobody uses
our product
Ask customer
what features
Are missing
Build missing
features
Junk garage
syndrome!
34. PROduct management
faster? more? - MAXIMIZE OUTCOME, NOT OUTPUT
the terrible truth
Too few
features
Too many
features
Magic features Meh...
hate
them
sweet spot
++$$
++t
++Risk
37. Agile product development
Shared understanding - learn the context
collaboration, communication, conversations
early and frequent delivery of valuable product increments
adapting to change
Continuous improvement
40. exercise (20 min)
Agile is better / more effective / more efficient than waterfall because...
waterfall is better / more effective / more efficient than Agile because...
48. Start with a Vision
“Organize world's information, make it universally accessible”
“Find and discover anything you might want to buy online”
“ (Be) Worldwide Authority on Kids, Families and Fun”
“Be #1 car company in America & one of the great American brands”
“(Find) my iPhone”
“Flirt with people near me”
“File too big for email”
“Put a Man on the moon and back alive before 1970”
“Run your own hospital online”
49. Vision: verb, target, outcome
“Organize world's information, make it universally accessible”
“Find and discover anything you might want to buy online”
“ (Be) Worldwide Authority on Kids, Families and Fun”
“Be #1 car company in America & one of the great American brands”
“(Find) my iPhone”
“Flirt with people near me”
“File too big for email”
“Put a Man on the moon and back alive before 1970”
“Run your own hospital online”
50. Vision: make it about your customer
“Organize world's information, make it universally accessible”
“Find and discover anything you might want to buy online”
“ (Be) Worldwide Authority on Kids, Families and Fun”
“Be #1 car company in America & one of the great American brands”
“(Find) my iPhone”
“Flirt with people near me”
“File too big for email”
“Put a Man on the moon and back alive before 1970”
“Run your own hospital online”
51. Exercise: 20 minutes
craft your company / department / product / project / team / course group’s vision
verb, target, outcome
use words, pictures, metaphors, stories
memorable, relevant, client focused, ambitious, feasible, tangible, time bound...
75. assumptions
persona = assumption
you are not your customer
personas: doing it wrong
research and validate - interview, observe……..
keep personas at the center of your conversations
78. mve / mvp
minimum is less than minimum
create value Now
what about “all or nothing”?
product is not product - Mve
mvp vs mmfs
mvp vs quality
79. validation: goal modelling
define key outcomes and results
how can we tell we are successfull?
how would busines change?
define key metrics for each goal
84. mvp problems
- confirmation bias
- false negative
- all or nothing
- visionary complex
- too busy to learn
- needs more quality / features
85. opportunity —> Product
Validated! Product - market fit
core vision defined
core assumptions tested: customer, PROBLEM, solution..
now, let’s build it!
if the development team has still not been involved, now it’s time!
86. garrett ux stack
strategy: product vision, concept, main actors, goals, use context...
scope: specific roles and journeys<- first epics
structure: workflows, sitemaps, navigation, tasks
skeleton: UX, interface, user flow, user interaction
surface: look and feel, design
87. - Why are we here?
- Vision / Pitch
- Product Box
- What it’s NOT
- Meet your neighbours / Project community
- Show the solution
strategy - scope: inception deck
- What doesn’t let us sleep
- Estimate size
- Trade-offs
- How long it’s going to take
Resource “The agile samurai”
88. Why are we doing this? what are the goals?
who can make it? who can stop it? who can help?
how can we change people’s behavior? how can they help? how can they stop us?
what can we do to reach our goals? what can we deliver?
strategy - scope: impact map
91. strategy-scope: goal modelling
define key outcomes and results
how can we tell we are successfull?
how would busines change?
define key metrics for each goal
100. structure: story maps
walking skeleton
end-to-end vs. module-based
good, better, best
see it work - make it better - make it releseable
group stories in themes (release, component, track, activity...)
show progres on map
101. exercise: story map
- what did you do this morning to arrive at work?
- break stories down
- What about other days?
- identify themes (clothes, hygiene, breakfast...)
- What could be included / excluded? what could be done differently?
- What if something went wrong?
- explore minimum set; explore aspirational / high added value set
103. breaking down stories
business size (goal) -> user size (need) -> development size (1-3 days)
faster, smaller, less riskier, more affordable products
show progress, capture feedback, accelerate learning
don’t break huge things into tasks - build smaller things with smaller tasks
104. breaking down stories
what can you defer (functionality, scalability, users, performance, automation, validation,
look’n feel...)?
Look for “and”, “or”, “then”...
breaker tool: conversations!!!!
105. exercise: elephant carpaccio
- 3 Inputs: How many items, price per item, 2-letter state code
- Output total price
- Discounts:
- $1K : 3% $5K : 5% $7K : 7% $10k : 10% $50k : 15%
- State tax (over discounted price):
- UT : 6.85% NV : 8% TX : 6.25% Al : 4% CA : 8.25%
- We want 10-20 User Stories (Slices)
- Each Slice: UI, input, output, visibly different from previous slice
- 5 states comes before any discounts
- Validation and fancy GUI after 5 states, 5 discounts
106. slicing heuristics
workflow steps
user roles
user tasks / activities
screens
screen elements
happy / unhappy path
functionality
zero, one, many
test cases / use cases
acceptance criteria
business rules
complexity, risk
data types / interfaces
single / multi user
transient / persistent
external dependencies
manual / automate
api / UI / gui
alternate paths
components
platforms
UX requirements
110. prioritization
backlog is a funnel, not a tunnel
there’s always more to do than capactity
focus means saying “no” -> if you can’t say no, your “yes” means nothing
you need regular backlog grooming and trimming
111. prioritization
prioritize outcome and goals, not stories or features
you won’t make everyone happy
have a publicly known selection and prioritization framework
112. prioritization frameworks
- “hippo” (highest paid person’s oppinion ;)
- Kano model (must have, one dimensionals, delighters)
- differenciator, spoiler, cost reduction, table stakes
- satisfaction vs. importance
- risk vs. opportunity
- cost vs. benefit
- cost of delay
- “buy me a feature”
- user poll
- urgent vs. important
- goal scoring / theme screening
122. building metrics into goals
- we believe that (customer segment) type of users have (problem description) type of
problem, which can be solved by (solution). We will know we are right when
(quantitative metric outcome) and (qualitative metric outcome), which will lead to (KPI)
123. building metrics into goals
- we believe that (new users) type of users have (completing the registration process)
type of problem, which can be solved by (an improved ux on the registration process). We
will know we are right when (percentage of drop offs diminishes) and (user satisfaction
increases), which will lead to (increased conversion rate)
124. actionable metrics vs. vanity metrics
- metrics should hurt
- a change in a metric should move us to do something
- everything we do should be an attempt to influence a metric
133. retention is key!
- high cost of acquiring customers = many customer unprofitable during their early life
- increasing customer retention rates by 5% increases profits by 25% to 95% across a
wide range of industries (fred reichheld, “the loyalty effect”)
- 1% to 2% retention = 2*LTV, 1/2 CAC
134. be careful!
- Not everything that counts can be counted
- be careful with moral hazard
- be careful with analysis paralysis
- correlation is not causation
- don’t cargo cult metrics
136. More at http://Slideshare.net/proyectalis
http://creativecommons.org/licenses/by-nc-nd/3.0/
This presentation is based upon the ideas and work of many people.
And while I’ve tried to recognize copyrights and give credit and
attribution where possible, I cannot possibly list them all, so if
you feel like there’s something that should be added, changed or
removed from this presentation, please drop me an e-mail at
angel.medinilla@proyectalis.com
Special thanks for this one to Eric Ries, alex osterwalder, ash
maurya, and Jeff Patton