Posts Tagged ‘Innovation’
The Mojo of Innovation Games
This post is a shameless plug for Innovation Games. Shameless that it might be, it is grounded in the hands-on experience I acquired as a participant in Luke Hohmann’s workshop on the subject last week. Colleagues Ken Collier, Alan Shalloway and Michele Sliger took the workshop together with me.
While Innovation Games had been conceived, implemented and published by Luke more than 4 years ago, the contemporary on-line implementation breaks new grounds in three important ways:
- It ties in ideation, requirements management and software project management in a seamless fashion. (Stay tuned for exciting announcements on the subject in a couple of months).
- It gets over the “too much data” barrier of the paper-based version of the game. Data capture is largely automated now. Data analysis tools are forthcoming.
- It gets over the “across the pond” obstacle. You can play Innovation Games to your heart’s content no matter how geographically dispersed your teams might be.
Not bad for three guys and a dog. Actually, I don’t even know whether they can afford a dog. These guys operate on passion, craftsmanship and mojo…
Postscript: If you know Luke, you already know what I mean by “the Luke mojo.” If you don’t, may I suggest you get to know him. A convenient opportunity might be the forthcoming Agile Roots 2010 conference – the organizers are speaking with Luke about delivering a keynote presentation literally as I write this post.
A Core Formula for Agile B2C Statrups
Colleague Chris Sterling drew my attention to a Pivotal Labs talk by Nathaniel Talbott on Experiment-Driven Development (EDD). It is a forward-looking think piece, focused on development helping the business make decisions based on actual A/B Testing data. Basically, EDD to the business is like TDD to development.
Between this talk and a recent discussion with Columbia’s Yechiam Yemini on his Principle of Innovation and Entrepreneurship course, a core “formula” for Agile B2C startups emerges:
- Identify a business process P
- Create a minimum viable Internet service S to support P
- Apply EDD to S on just about any feature decision of significance
This core formula can be easily refined and extended. For example:
- Criteria for choosing P could/should be established
- Other kinds of testing (in addition to or instead of A/B testing) could be done
- A customer development layer could be added to the formula
- Many others…
By following this formula a startup can implement the Agile Triangle depicted below in a meaningful manner. Value is validated – it is determined based on real customer feedback rather than through conjectures, speculations or ego trips.
Figure 1 – The Agile Triangle (based on Figure 1-3 in Jim Highsmith‘s Agile Project Management: Creating Innovative Products)
The quip “The voice of the people is the voice of God” has long been a tenet of musicians. The “formula” described above enables the Agile B2C startup to capture the voice of the people and thoughtfully act on it to accomplish business results.
Double Wake-up
Computer Associates and Salesforce made the following announcement a couple of weeks ago:
SAN FRANCISCO – Salesforce.com Dreamforce Conference – November 19, 2009 – CA, Inc. (NASDAQ: CA), the leader in Enterprise IT Management, and salesforce.com (NYSE: CRM), the enterprise cloud computing company, today announced they have partnered to deliver agile development management in the cloud on the Force.com platform. Through the alliance, CA and salesforce.com intend to introduce CA Agile Planner on Force.com to help small businesses and enterprises alike accelerate development timelines while gaining control and visibility over 100 percent of their development initiatives. The intended result will be increased innovation and reduced time-to-market.
Following an e-conversation on the subject with colleague and friend Annie Shum, I would characterize this announcement as a Double Wake-up:
- To the premise of Agile methods; and,
- To the premise of Cloud Computing
How appropriate it is that Annie has recently posted in this blog on the two threads coming together – Cloud Computing: Agile Deployment for Agile QA Testing.
The Changing Nature of Innovation: Part II — National Policy
Michael Porter makes two interesting observations about innovation in the US in his BusinessWeek interview entitled Why America Needs an Economic Strategy:
… U.S. entrepreneurship has been fed by a science, technology, and innovation machine that remains by far the best in the world. While other countries increase their spending on research and development, the U.S. remains uniquely good at coaxing innovation out of its research and translating those innovations into commercial products. In 2007, American inventors registered about 80,000 patents in the U.S. patent system, where virtually all important technologies developed in any nation are patented. That’s more than the rest of the world combined
In contrast to the effectiveness of utilizing research and technology for entrepreneurial purposes, Porter notes a worrisome trend:
An inadequate rate of reinvestment in science and technology is hampering America’s feeder system for entrepreneurship. Research and development as a share of GDP has actually declined, while it has risen in many other countries. Federal policymakers recognize this problem but have failed to act.
Viewed in light of Part I of this mini-series on innovation, a natural question posts itself:
Do the new forms of experimentation, which enable the US entrepreneurial system to be so very effective in coaxing innovation out of research that has already been done, mask a fundamental decline for which there will be hell to pay?!
The Changing Nature of Innovation: Part I — New Forms of Experimentation
Colleague Christian Sarkar drew my attention to two recent Harvard Business Review (HBR) articles that shed light on the way(s) innovation is being approached nowadays. To the best of my knowledge, none of the two articles has been written by an author who is associated with the Agile movement. Both, if you ask me, would have resonated big time with the authors of the Agile Manifesto.
The February 2009 HBR article How to Design Smart Business Experiments focuses on data-driven decisions as distinct from decisions taken based on “intuition”:
Every day, managers in your organization take steps to implement new ideas without having any real evidence to back them up. They fiddle with offerings, try out distribution approaches, and alter how work gets done, usually acting on little more than gut feel or seeming common sense—”I’ll bet this” or “I think that.” Even more disturbing, some wrap their decisions in the language of science, creating an illusion of evidence. Their so-called experiments aren’t worthy of the name, because they lack investigative rigor. It’s likely that the resulting guesses will be wrong and, worst of all, that very little will have been learned in the process.
It doesn’t have to be this way. Thanks to new, broadly available software and given some straightforward investments to build capabilities, managers can now base consequential decisions on scientifically valid experiments. Of course, the scientific method is not new, nor is its application in business. The R&D centers of firms ranging from biscuit bakers to drug makers have always relied on it, as have direct-mail marketers tracking response rates to different permutations of their pitches. To apply it outside such settings, however, has until recently been a major undertaking. Any foray into the randomized testing of management ideas—that is, the random assignment of subjects to test and control groups—meant employing or engaging a PhD in statistics or perhaps a “design of experiments” expert (sometimes seen in advanced TQM programs). Now, a quantitatively trained MBA can oversee the process, assisted by software that will help determine what kind of samples are necessary, which sites to use for testing and controls, and whether any changes resulting from experiments are statistically significant.
On the heels of this essay on how one could attain and utilize experimentally validated data, the October 2009 HBR article How GE is Disrupting Itself discusses what is already happening in the form of Reverse Innovation:
- The model that GE and other industrial manufacturers have followed for decades – developing high-end products at home and adapting them for other markets around the world – won’t suffice as growth slows in rich nations.
- To tap opportunities in emerging markets and pioneer value segments in wealthy countries, companies must learn reverse innovation: developing products in countries like China and India and then distributing them globally.
- While multinationals need both approaches, there are deep conflicts between the two. But those conflicts can be overcome.
- If GE doesn’t master reverse innovation, the emerging giants could destroy the company.
It does not really matter whether you are a “shoe string and prayer” start-up spending $500 on A/B testing through Web 2.0 technology or a Fortune 500 company investing $1B in the development and introduction of a new car in rural India in order to “pioneer value segments in wealthy countries.” Either way, your experimentation is affordable in the context of the end-result you have in mind.
Fast forward to Agile methods. The chunking of work to two-week segments makes experimentation affordable – you cancel an unsuccessful iteration as needed and move on to work on the next one. Furthermore, you can make the go/no-go decision with respect to an iteration based on statistically significant “real time” user response. This closed-loop operational nimbleness and affordability , in conjunction with a mindset that considers a “failure” of an iteration as a valuable lesson to learn from, facilitates experimentation. Innovation simply follows.
Predictability is Bad for Your Business
I had the pleasure of meeting some old colleagues a few weeks ago. They work for a software company that pays a lot of attention to software engineering practices and invests heavily in software tools. Financial results, however, have not been great over the past few years.
Obviously, the disparity between the strength of the software engineering discipline and the relative weakness of the financial results is due to more than a single cause. One factor, however, was highlighted time and time again by my colleagues:
Predictability is killing us!
Paradoxical that this observation might seem, it is actually quite straightforward. Senior management in their company is really forceful about predictability. Hence, initiative, (affordable) experimentation and innovation have pretty much faded away. For most practical purposes it has become a check-the-box culture. All attempts to substitute reliable delivery for predictability seem to have failed so far.
One last “ingredient” to add to the story. This company is rich in talent. Generally speaking, the folks in the engineering trenches are gifted, knowledgeable, capable and dedicated.
How predictably poignant!
The Executive’s Workshop for Scaling Agile to The Enterprise
Readers of this blog are well aware of my keen interest in enterprise level Agile. I am now offering a specialized workshop for executives on this topic.
The Executive’s Workshop for Scaling Agile to The Enterprise
This one day workshop and free follow-on coaching service prepares executives for their roles in large-scale Agile implementation.
This workshop is ideal for building a shared understanding of your company’s Agile goals and practices amongst members of the leadership team. It illustrates how executives could/should engage in the Agile process in a meaningful manner, and includes strategies for addressing common challenges. Your team will see how to govern Agile effectively, and most importantly, you’ll learn proven practices for attaining the operational, financial and business benefits of a successful enterprise-level Agile implementation.
Objectives
Agile is shown to cut the cost, improve the flexibility and shorten time-to-market of software-driven projects. Upon completion of this service, executive teams will be able to:
- Scale Agile to the enterprise level
- Minimize risks associated with large-scale Agile rollout
- Apply Agile practices in development and beyond
- Galvanize the team around a shared, cross-functional Agile vision
Approach
The Executive’s Workshop for Scaling Agile to The Enterprise service is divided into three parts, each designed to help company leaders accelerate their adoption of Agile.
Part I: Preparation via phone interviews and web-based coaching. The workshop leader works with your executive team to gather context, discuss logistics and focus the on-site workshop on your needs.
Part II: One day on-site workshop is delivered through combination of presentation, examples, exercises and participant discussion.
Part III: Free telephone coaching and mentoring with the Workshop Leader for six months after the workshop. The objective is to help executives respond effectively to the challenges they encounter in the course of implementing Agile.
On-Site Workshop Details
Leading an enterprise adoption of Agile requires that you understand the key concepts, principles and practices of Agile without getting bogged down in technical details. You must learn techniques for handling the expected “noise” associated with organizational change while identifying the critical tasks needing your attention and leadership to succeed. The workshop is designed to address these challenges with a minimal investment of time.
Here is an overview of the key topics you will add to your experience set:
Explaining the Rationale for Agile to Your Company
- Why now?
- What is the state of the art in Agile and what is our goal
- Expected return on our Agile investment
How The Agile Process Fits into Your Company:
- Understanding Agile as an example of other common, iterative, quality-oriented processes
- How Agile works with other software development life cycle processes
- How to run a heterogeneous software development environment that mixes Waterfall, Agile and other methods
- Connecting Agile to your budgeting process
- How to perform governance and portfolio management with Agile
How to Implement Agile:
- Choosing suitable projects for Agile methods
- Rollout strategies that mitigate risks
- Keeping departments aligned during the Agile rollout
- Defining the social contract for Agile
- How to make Agile sustainable in your particular culture
- How Agile impacts your partner eco-system
- Succeeding with off-shoring and outsourcing
Setting Up The Agile Enterprise:
- Determining your performance metrics for Agile
- How to negotiate Agile contracts
- Achieving breakthrough innovation through Agile
- Business designs that utilize the power of Agile
Price and Availability
- Limited to 12 people per workshop
- Please contact me at isrgat@gmail.com