seeking value by michael ballé at the european lean it summit 2012
DESCRIPTION
Michael Ballé from Institut Lean France presented « Seeking value »: learning how to learn what customers really want, and how to get it to them. More Lean IT presentations on www.lean-it-summit.comTRANSCRIPT
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Seeking Value
By Michael Ballé
Copyright © Institut Lean France 2012
Seeking Value
Michael Ballé
Copyright © Institut Lean France 2012
Lean thinking
1. Value
2. The value stream
3. Flow
4. Pull
5. Perfection
Copyright © Institut Lean France 2012
Value in IT
• Information Systems are increasingly expensive
• Legacy makes IS inflexible and costly to change
• Project overruns reach “black swan” potential
• Users still never happy
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Value
Value = Function / Cost
Copyright © Institut Lean France 2012
Copyright © Institut Lean France 2012
Those pesky customers
What they say they want
≠
What they’re ready to pay for
Copyright © Institut Lean France 2012
Because they don’t know themselves
How I feel about the product right now
Was I right to purchase it?
Copyright © Institut Lean France 2012
Function (action) ≠ Feature (tool)
Copyright © Institut Lean France 2012
Understanding value
• What does the FULL product/service do for the customer?
• What do customers VALUE about the product (or DISLIKE)
• At what cost?
Copyright © Institut Lean France 2012
Critical To Customer Performance
• What do customers value?
• How do we express this in technical parameters?
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CTCs change!
• Through the product’s life course
• As customers learn to use it
• As the usage environment changes
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The value challenge
FUNCTION
PERFORMANCE
Constantly check Critical To Customer functions are in line
with customer behaviour
FEATURE
PERFORMANCE
Translate this into product
features within Target
Cost
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To make products, first make people
1. Follow the customers
2. Make choices
3. Teach teamwork
4. Set-up a design factory
5. Learn to learn
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1. Follow the customers
Copyright © Institut Lean France 2012
User complaints
• User complaints are users taking the time to educate us about what they value
• Every complaint matters – no Pareto thinking
• Go to the gemba, ask why? Understand what prompted the user to complain: how did the product/service get between the user and what he/she wanted?
Copyright © Institut Lean France 2012
Product takt time
• Pick a tempo
• Commit to a product release at that beat NO MATTER WHAT
• Only put validated innovations into the proposed product
• Learn from customers’ reaction (BUY/NOT BUY)
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Test user values
Customer type
Value hypothesis
Confirmation method
Confirmed Y/N
Conclusion On CTC
Rephrase Critical To Customers
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2. Make choices
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Chief Engineer: single point accountability
• Who is going to capture Critical To Customer
• Express this into technical parameters
• Be the last arbiter of technical choices, in relation to CTC
• Make sure the project keeps on track in terms of schedule, innovation and costs
Copyright © Institut Lean France 2012
Customer segment
• Choose a segment
• Specific enough to differentiate the offering
• Large enough to make a profit
• Segment according to usage, draw out a user model
Copyright © Institut Lean France 2012
Frame a concept
• What job(s) should the product do for the users?
• Find the “yet” contradiction
• Zero compromise on the “yet”
• Specify targets on the performance radar chart
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Deploy the concept at module level
• List new ideas, involve suppliers
• Test against standards and fundamentals
• Test against concept & user models
• Evaluate impact on whole product
• Make choices
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Pivot
• How do we know we get it right/get it wrong?
• When do we need to pivot? What are clear markers to distinguish pivot from mission creep?
• What are the tripwires?
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3. Teach teamwork
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Team clarity
• Chief engineer as team leader
• Clear in/out frontier – no part timers, incentives to stay to the end
• Oobeya (war room)
• One member of the team coordinates suppliers
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Solve sticky problems BEFORE development
• Bring the team together by solving tricky problems before developing the product
• Try alternative solutions, build models, prototypes, simulations
• Involve all the technical chain (testers, suppliers, etc.) in evaluating alternate solutions
• Let the team build their own internal rules
Copyright © Institut Lean France 2012
Lean design strategy
Concept Development Redevelopment
Lead-time
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4. Set up a design factory
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Detailed planning
• Once key problems have a solution & architecture is clear
• VERY detailed planning, module-based
• Plan for interfaces and interactions
• Draw a detailed Value Stream Map involving every actor involved
Copyright © Institut Lean France 2012
Work with standards
• Typical problems / typical solutions
• Seek standard ways of doing things – starting with easy things, such as names, addresses, etc.
• Write checklists
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Test the testing culture
• The test drives the code: easy to say, hard to do
• Are engineers trained to:
– Understand they’re in charge of their own quality
– Know HOW to test
• How automated are testing tools?
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Readiness to go live
• Assess schedule against “go live”
• Overreact to open problems – find resources or outside expertise quickly
• Resist calls to increase scope – drop features that are not CTC and not ready
• See and solve teamwork problems early
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5. Learn to learn
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Self-reflection activities
Date Problem Cause Countermeasure Status
•Learning events during the project: Teardowns Code cleanup Code reviews
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Teach and improve standards
• Dojos: one-on-one training
• Suggestions
• Experiments
• Constant improvement of checklits
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Check against performance targets
• Go to users quickly
• Rough and ready builds or prototypes
• The code is the gemba
Copyright © Institut Lean France 2012
To make things, first make people
Experience
Passion
Open mind
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
More Lean IT videos and presentations on www.lean-it-summit.com