Product Planning & Processes Friday 21 March, 2014 Dublin Institute of Technology Post-Graduate Diploma in Product Management

Student Goals What do you already know?

What do you want to know?

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Scott Sehlhorst Product management & strategy consultant 8 Years electromechanical design engineering IBM, Texas Instruments, Eaton 7 Years software development & requirements > 20 clients in Telecom, Computer HW, Heavy Eq., Consumer Durables 9 Years product management consulting >20 clients in B2B, B2C, B2B2C, ecommerce, global, mobile Agile since 2001 Started Tyner Blain in 2005 Helping companies Build the right thing, right 3

Where We Are in the Curriculum 1. Strategy & Business Models 6. Product Planning & Process 7. How to run successful projects 2. Innovation & Technology Management 5. Strategic Customer Management 8. Team Leadership & Change Management 3. Market & Customer Analysis 4. Business Case & Strategic Pricing 9. Strategic Negotiation and Communication 10. Strategic Product Plan – Product Lifecycle Case – Innovation Audit 4

Schedule 5

Sources of Requirements Strategy Defines your company’s goals, and your company’s goals for your product Sets the context for prioritizing the internal importance of what your team will do Market & customer analysis Understanding the problems customers are willing to pay to solve Sets the context for prioritizing the external importance of what your team will do 6

Product Management Strategy Be market driven Have an outside-in bias You are not your customer Work in the context of a market model Be intentional about who your product is for Be agile in how you manage your product Your market changes – adapt to it Your competitors change – respond to & pre-empt them Your understanding grows – apply it 7

Outside-In Innovation is what you get when you have a valuable invention.

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Outside-In vs. Inside Out Outside-In: There’s a problem Will people pay to solve it?

Can we solve it?

Can we get people to pay?

Inside-Out: We have a tool What problem can we solve?

Who has that problem?

Will they pay us to solve it?

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Goal Driven Development 10

Impact Mapping • • Goal • • who makes it happen?

• • what activity are they doing to make it happen?

How do they measure success of the activity?

• • How does (should) our product change the activity?

What is the impact of our product on their activity?

How do they measure the success of our product?

What other activities of this person affect the goal?...

• who else could impact the success of the goal?

What are these other people doing?… 11

Impact Mapping 12

Exercise Smart Watch Requirements At your table… Identify* what you would like to do with your device (5 min)

Examples Check the Current Time Change to Current Time Zone

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Some Examples (from Gábor Balogh) Images hidden (from people reading ahead) 14

Exercise Smart Watch Requirements At your table…  (5 min) Identify what you would like to do with your device (5 min) Organize what you identified and fill in gaps for one concept / activity

Example Goal: Know the current time Activity: Check the time Capability: Change to current time zone

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Problems -> Solutions -> Requirements Understanding of the importance of problems to be solved.

Understanding relative value of solutions we can create.

Sequencing the creation of solutions to the problems.

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Market Problems An outside-in view of which problems are

important to solve

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Customer-Centric Market Model 18

Market Segments 19

Customers Quick level-set question Are most folks already comfortable with the distinction between buyer and user personas?

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Persona – UX Template 21

Persona – Real World Example 22

Approaching Persona Development Keeping a perspective Built on research Primary research Prospect interviews Customer interviews Win/Loss analysis Survey data Instrumentation of product Ethnography Secondary research Published research Competitor white papers Infer from related research 23

Getting to Insights 24

Product Management Personas 25

Personas Represent Differences How important is it to you that the vacuum is… 26

Importance Varies by Persona 27

Exercise Smart Watch Personas • •  At your table… Identify what you would like to do with your player (5 min)  Group related tasks and identify underlying goals (5 min) Identify personas you want to target for your smartwatch 28

Problems: Kano Analysis You’ve already covered this… Four perspectives customers have Indifference Must be/ must not be Customer delight More is better Realistic more is better (but maybe not covered this bit) 29

Kano Framework 30

Indifference 31

Must Be 32

Delighters 33

More Is Better 34

Diminishing Returns 35

Disruption 36

Table Stakes 37

Problem Classification - Summary 38

Example from each table Pick a more-is-better problem that you identified 1. Show how solutions map to the curve.

2. What would make it disruptive?

3. What would make it table stakes?

4. Are there increments of improvement that make sense?

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Markets Evolve, Things Change 40

Coffee 41

Structured Requirements 42

Structured Requirements 43

Use Cases and User Stories Formal use cases Informal use cases Use case scenarios Use case briefs User stories …Lions and tigers and bears,… Oh My!

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Overhead of Documentation 45

Level of Detail Captured 46

Overhead vs. Level of Detail 47

Overhead vs. Domain Expertise 48

Domain Expertise New Hire New to the Space Expert “Invented the Space” What level of expertise did members of your team have?

What are some of the communication challenges you faced?

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Structure of a User Story The card is not the story.

The card is a commitment to have a conversation.

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Structure of a User Story 51

Full Structure of a User Story 52

Exercise Smart Watch Requirements At your table…  Pick one of your user goals 1.

Identify an activity for that goal 2.

3.

4.

Write the user story for that activity Identify how success is measured for the activity Write the acceptance criteria 53

Workshop From market to requirements 54

Develop Outside-In Requirements Corporate Goal Provide a cutting-edge, best-in-class learning environment for executive education.

Strategy Include an online environment for students as one of the provided / leveraged resources.

…Plus more stuff that is outside of this exercise Product The online environment / tools / service / app 55

The Process 1. Identify the users/customers (you) [0 min] 2. Identify the relevant goals [20 min] 3. Build out the impact map for them [20 min] 1. What activities help achieve the goals?

2. How do they measure success at the activity?

3. How will/should the product help?

4. Write user story and acceptance criteria [20 min] 56

What are Tina’s Goals?

15min + 15 min

Develop the impact map for Tina 58

Impact Map to User Story 59

What Are the User Stories Needed?

15min + 15 min 1. Pick one of the goals your table identified.

2. Define capabilities needed to enable Tina to achieve that goal.

3. Write a user story & acceptance criteria to embody that capability.

Switch Back to Main Deck

Agile Evangelists

Give me where [to] stand and I will move the earth

The boast was a pretty safe one, for he knew quite well that the standing place was wanting, and always would be wanting.

- Mark Twain 1887 62

Agile Product Manager Product manager working with an agile team BUFR (big up-front requirements)? Good luck with that Product manager working in an agile way Incremental investment in what we create Shippable updates (roadmap, backlog, etc) 63

This Agility Business Agile Software Development

is a group of software development methodologies based on iterative and incremental development.

Wikipedia

Business Agility

the ability of a business to adapt rapidly and cost efficiently in response to changes in the business environment. Business agility can be maintained by maintaining and adapting goods and services to meet customer demands , adjusting to the changes in a business environment and taking advantage of human resources.

Wikipedia

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Business Agility Yes, Agile teams develop faster, but… The

Real value

comes from

Knowing

faster

Deciding

faster Developing the

right

product faster Enabling your business to win 65

Waterfall Stage gate (best of waterfall) – Cooper, 1985 66

Waterfall Takes a Long Time 67

Waterfall’s Track Record 68

Waterfall’s Track Record 69

Waterfall’s Track Record 70

Next Gen Stage Gate (Cooper 2014) 71

Root Cause Analysis of Waterfall Failure reasons Success factors What have you seen?

What have you seen?

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Root Cause Analysis of Waterfall Failure reasons Success factors Lack of user input Incomplete requirements Changing requirements Lack of exec support Tech. incompetence User involvement Exec support Clear requirements Proper planning Realistic expectations 73

Lunch 74

Structural Underpinnings of Agile Designed to encourage change Course-correction vs. change control Ongoing process feedback Designed to inform decisions Recurring customer feedback Designed to maximize value Fixed time & resource vs. fixed scope Release early & often 75

Agile Development Flow A very brief look at agile development process 76

Tiny Waterfalls The biggest mistake you can make in trying to harness an agile development process Treat it as a series of tiny waterfalls.

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Parallel Streams of Activity Pros What are the upsides?

Cons What are the downsides?

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Parallel Streams of Activity Each stream requires some progress in the previous stream (but not completion of it).

Embrace the interactions between the streams as they progress in parallel.

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Agile Development Assumption Iteration is good for getting feedback* How do you like this design? This implementation?

Agile process biases you to

Build it right

It

assumes

you are building

the right product

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Building the Right Product An agile development team Keeps improving the product An agile product manager Keeps improving the backlog 81

Waterfall vs. Agile Product Mgr Waterfall product mgr Creates roadmap / MRD Creates PRD Throws it over the wall Rest of team Reveres the artifacts Does what the docs say Hard to “get smarter” Agile product mgr Documents insights Creates roadmap Creates backlog Rest of team Assumes it will change Does “what’s next” Expects to “get smarter” 82

Agile Development is Not Enough Agile development is necessary… …but not sufficient Without agile product management… …you’re still building Yesterday’s product 83

What Can Be Known… 84

…Is A Moving Target 85

…And You Have to Catch Up 86

Change Creates Opportunity 87

Agility = A Sustainable Advantage 88

Each Table – Examples 89

Waterfall vs. Agile Product Mgr Waterfall product mgr Creates roadmap / MRD Creates PRD Throws it over the wall Rest of team Reveres the artifacts Does what the docs say Hard to “get smarter” Agile product mgr Documents insights Creates roadmap Creates backlog Rest of team Assumes it will change Does “what’s next” Expects to “get smarter” 90

Waterfall Product Management 91

Waterfall Team Process Product Manager’s View 92

Waterfall Team Process Product Manager & Team 93

Waterfall Product Management 94

Agile Product Management 95

Show of Hands 96

Agile Team Process Product Manager 97

Agile Team Process Product Owner 98

Agile Team Process Entire Team 99

Roles & Responsibilities Product manager: Define the right product UX: Define “ right ” for each persona Product owner: What’s practical

right now

Implementation team: UX: Define the right UI design for users?

Dev: Define the right code design for the product?

Dev + QA: Build it right Scrum master: Eliminate barriers to the team 100

Product Management Agile vs. waterfall Still does the same work Delivers the items differently The Main changes are in Cadence – iteration & interaction Perspective – incremental investments 101

How are Your Teams Set Up?

Define the right product Build the product right 102

Team Setup Define the right product Product manager UX (part time) Build the product right Product owner UX (part time) Development QA Scrum master / agile PM 103

Defining the Right Product Inputs: Market research -> market data (Big picture) analysis -> insights Synthesis -> product roadmap (Small picture) analysis -> product backlog Outputs: Documented market understanding Product roadmap Product backlog 104

Coffee 105

Claudio Perrone – Agile Sensei Lean \ Agile / Scrum 106

End of Day 1 Parking Lot Anything We Set Aside, to Cover Now?

Anything to Make Sure We Address Tomorrow?

Have a Great Evening, See You @ 08h.45 107