Strategy to Execution by Jonny Schneider - ThoughtWorks
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Predicting the future is hard. Most software projects come in over budget. We need to stop predicting, and rather adapt. Using design thinking, lean and agile practices will help explore, test and build - the right thing.
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Strategy to Execution by Jonny Schneider - ThoughtWorks
- 1. 1 STRATEGY TO EXECUTION Shipping products while adapting to new infomation JONNY SCHNEIDER Principal, ThoughtWorks UK Service Design and Product Strategy @jonnyschneider jschneider@thoughtworks.com
- 3. 2 Predicting the future is hard. http://upload.wikimedia.org/wikipedia/commons/0/03/Edison_and_phonograph_edit1.jpg The phonograph was imagined only for dictation, not entertainment In 1908, he remarked that the aircraft had no future In 1912, his vision for concrete furniture and homes wasn’t shared Even Thomas Edison got it really wrong
- 4. 3 …many plans are built on projections of future prices and costs that are almost invariably wrong —Michael E. Porter https://www.flickr.com/photos/worldeconomicforum/5397052359
- 5. 4 43% Average project cost over-run 71% → came in over budget → exceeded time estimates → underestimated scope $ 55b Annual waste https://www.flickr.com/photos/jonathancohen/4766990832 Chaos Report, Standish Group, 2004. of projects
- 8. ½ business ½ design My job is to create viable digital products I’m Jonny Schneider That people love to use
- 9. 7 Technology
- 10. 7 Technology I work with Technology teams, because I like to ship Also, engineering is design
- 11. EXPLOREUNDERSTAND CREATEDEFINE strategy and tactics initial vision solution LEARN BUILD MEASURE DEFINE STRATEGY EXECUTE SOLUTION Understand why & define how Create the outcome Adapted and extended from British Design Council. A way of thinking, not a framework The ‘Double Diamond’, adapted from Industrial Design Brings strategy closer to execution
- 12. 9 Divergent ConvergentEmergent You’ll never find anything… unless you’re looking for something. — Dave Gray, xPLANE
- 13. 10 AGILE Build the thing right LEAN Build the right things +DESIGN THINKING Explore problem/solution +
- 14. EXPLORE CREATEDEFINEUNDERSTAND Observe customer behaviour, business processes and technology A search for meaningful questions Paint a picture of the ecosystem
- 15. Designers don’t search for a solution until they have determined the real problem, and even then, instead of solving that problem, they stop to consider a wide range of potential solutions. Only then will they converge upon their proposal. —Donald Norman
- 16. EXPLORE CREATEUNDERSTAND DEFINE Formulate the first expression a strategy for future success Synthesise new knowledge and assess the opportunities Do just enough to enable action to occur
- 17. Strategy is about action, about doing something… there is no greater tool for sharpening strategic ideas than the necessity to act. —Richard P. Rumelt
- 18. CREATEEXPLOREUNDERSTAND DEFINE Try something, learn something, invest incrementally to pursue success Clear goals frame a search for the right solutions
- 19. EXPLOREUNDERSTAND DEFINE CREATE Refine, hone and optimise the proposition As the right solution becomes clear, focus on fidelity Go to market, but don’t stop learning
- 21. 18 TRIGGER REDUCE COST OF ACQUISITION SIMPLIFY THE BUSINESS BUSINESS IMPERATIVES It starts with high-level imperatives This helps us to understand the current condition
- 22. 18 TRIGGER REDUCE COST OF ACQUISITION SIMPLIFY THE BUSINESS UNDERSTAND CURRENT CONDITION OBSERVATION AND JOINING THE DOTS BUSINESS IMPERATIVES They’re often vague, and not immediately actionable So, we need to go see, make observations, and join the dots
- 23. 18 TRIGGER Process Analysis Operational Research Observation Customer Research Behavioural Analysis Value Stream Mapping Customer Archetypes Design Thinking Ideation Context Map Service Blueprint & OPPORTUNITIES EMERGENT PROBLEMS REDUCE COST OF ACQUISITION SIMPLIFY THE BUSINESS UNDERSTAND CURRENT CONDITION OBSERVATION AND JOINING THE DOTS BUSINESS IMPERATIVES There are a lot of ways to do that When we do, opportunities emerge from understanding
- 24. 18 TRIGGER Process Analysis Operational Research Observation Customer Research Behavioural Analysis Value Stream Mapping Customer Archetypes Design Thinking Ideation Context Map Service Blueprint & OPPORTUNITIES EMERGENT PROBLEMS ASSESS VIABILITY, SELECT FOR IMPACT DEFINE TARGET CONDITION REDUCE COST OF ACQUISITION SIMPLIFY THE BUSINESS UNDERSTAND CURRENT CONDITION OBSERVATION AND JOINING THE DOTS BUSINESS IMPERATIVES Based on new insight, how might we succeed? Assess and select the most promising options Formulate your hypotheses
- 25. 18 TRIGGER Process Analysis Operational Research Observation Customer Research Behavioural Analysis Value Stream Mapping Customer Archetypes Design Thinking Ideation Context Map Service Blueprint & OPPORTUNITIES EMERGENT PROBLEMS ASSESS VIABILITY, SELECT FOR IMPACT DEFINE TARGET CONDITION REDUCE COST OF ACQUISITION SIMPLIFY THE BUSINESS Kano Analysis Value Proposition Opportunity Assessment Hypothesis Elaboration Devil’s Advocate Innovation Accounting Weighting Matrix Evaluation Frameworks Pirate Metrics Prioritisation UNDERSTAND CURRENT CONDITION OBSERVATION AND JOINING THE DOTS FIRST EXPRESSION OF STRATEGY BUSINESS IMPERATIVES Again, there are many ways to do that Now define the target condition and first expression of strategy Accept that it’s fuzzy and incomplete
- 26. VISION AND STRATEGY (HYPOTHESES) FIRST EXPRESSION OF STRATEGY
- 27. VISION AND STRATEGY (HYPOTHESES) prototypes quantitative analytics qualitative fieldwork marketing experiments innovation lab co-design FIRST EXPRESSION OF STRATEGY EXPERIMENTS EXPLORE WITH EXPERIMENTS This is about reducing uncertainty, not absolute truth Experiments are a cheap way to get more information Try something. Learn. Invest in the next experiment
- 28. VISION AND STRATEGY (HYPOTHESES) prototypes quantitative analytics qualitative fieldwork marketing experiments innovation lab co-design FIRST EXPRESSION OF STRATEGY REFINE AND ADAPT STRATEGY EXPERIMENTS EXPLORE WITH EXPERIMENTS Refine and adapt to what is learned As learning increases, fidelity increases
- 29. VISION AND STRATEGY (HYPOTHESES) prototypes quantitative analytics qualitative fieldwork marketing experiments innovation lab co-design FIRST EXPRESSION OF STRATEGY REFINE AND ADAPT STRATEGY CREATE SOFTWARE SOLUTIONS do PLAN AND MANAGE DELIVERY check EXPERIMENTS EXPLORE WITH EXPERIMENTS As confidence increase, create the real solution Move from exploring opportunities, to exploiting product solutions
- 30. VISION AND STRATEGY (HYPOTHESES) prototypes quantitative analytics qualitative fieldwork marketing experiments innovation lab co-design FIRST EXPRESSION OF STRATEGY REFINE AND ADAPT STRATEGY new discoveries WORKING SOLUTIONS CREATE SOFTWARE SOLUTIONS do PLAN AND MANAGE DELIVERY check EXPERIMENTS EXPLORE WITH EXPERIMENTS Even though we’re building a solution, it’s still an experiment Continue to refine, adapt and experiment
- 31. 20 Lessons From The Trenches (Global Blue Experience Report) Lessons from the trenches.
- 32. 21 LessonOne Test the right things, in small chunks, within a real system.
- 33. bit.ly/hypothesis-driven Good start, but it’s harder than it sounds
- 34. This sounds okay, but it’s not very easy to test
- 35. evolved version of hypothesis template 30 AWARE, INFORMED AND ON-BOARDED We believe that Better informing travellers about Tax Free Refund steps and process ! Will result in an increase in repeated usage of the Global Blue app We will know we’ve succeed when IN PROTOTYPE REAL Number of ‘active/engaged’ users increases by Accuracy of submitted forms increases by PLAN Acquisition 6% 30% This was to measure customer acquisition All experiments are not created equal But it’s not about product/market fit at all… It’s about optimising the execution of a sign-up flow
- 36. LessonTwo Aim for learning, not validation.
- 39. Aspirational Customer Journey Product Hypotheses
- 40. Aspirational Customer Journey Product Hypotheses Design Experiments
- 41. Aspirational Customer Journey Product Hypotheses Design Experiments User Story Map
- 42. Aspirational Customer Journey Product Hypotheses Design Experiments User Story Map Data/feedback
- 43. 10 HUNDREDS of ideas 12 FOUNDATION HYPOTHESES maximum reach foundation touch-points mapped to revenue funnel 3 OF 12 validated 4 OF 12 in progress 5 OF 12 to be started
- 44. LessonThree Changing people is harder than changing software.
- 45. © 2015 ThoughtWorks, Ltd. All rights reserved. HEAD OF CUSTOMER SUCCESS FOUNDER TECHNOLOGY DISRUPTOR PRACTICALLY CURIOUS SYNTHETIC THINKER BUILDER OF BRIDGES MASTER OF GETTING WORK DONE PRAGMATIC DETERMINATION FLEXIBLE RULE BENDER BOUNDARY PUSHER EMOTIONALLY INTELLIGENT AFFABLE PURSUES COMMON VISION RELATIONSHIP MAVEN FRONT-END ENGINEERING INTERACTION DESIGN VISUAL DESIGN CUSTOMER RESEARCH SERVICE DESIGN DIGITAL PRODUCT STRATEGY BUSINESS ARCHITECTURE TECHNOLOGY ARCHITECTURE SOFTWARE DEVELOPMENT RETAIL STRATEGY ORGANISATION DESIGN DELIVERY ASSURANCE DIGITAL TRANSFORMATION right PEOPLE right SKILLS Change needs to be owned, not imposed Know your limits, don’t be a hero Different phase of product development require different mindsets
- 46. © 2015 ThoughtWorks, Ltd. All rights reserved. A few good reads from friends http://bit.ly/uxscot-lean http://bit.ly/uxscot-insights
- 47. 31 Lessons From The Trenches (IAG Experience Report) A few other helpful things.
- 48. 32 Saddle Row Example Get familiar with lean techniques Practice Customer Development on a fictitious business Train your team to think big, start small, and act fast
- 49. 33 2 DESCRIPTION AND NOTES: write, draw or sketch how your idea works. 1 CATEGORY OPERATIONAL BENEFIT CONVERSION FUNNEL PRIMARY FOCUS STREAMLINE OPERATIONS cost reduction Acquisition Activation Retention Revenue Referral Commercial (viability, financial) process improvement CUSTOMER ARCHETYPE TYPE OF BENEFIT IMPROVE EXISTING PROPOSITION Digital Natives Family Traveller Affluent Indulger Mainstream Traveller Value Vacationer Purposeful Business High Flying Globe Trotter Flying Practitioner Air Warrior Value Business __________ __________ __________ pain relief Technology (feasibility, innovation) CREATE NEW PROPOSITION gain creator Experience (desirable to customer) TITLE: A little structure can goes a long way http://bit.ly/uxscot-idea-cards
- 51. JONNY SCHNEIDER Principal, ThoughtWorks UK Service Design and Product Strategy @jonnyschneider jschneider@thoughtworks.com THANKS