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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.com
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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
Copyright © Institut Lean France 2012
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?
Copyright © Institut Lean France 2012
CTCs change!
• Through the product’s life course
• As customers learn to use it
• As the usage environment changes
Copyright © Institut Lean France 2012
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
Copyright © Institut Lean France 2012
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
Copyright © Institut Lean France 2012
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)
Copyright © Institut Lean France 2012
Test user values
Customer type
Value hypothesis
Confirmation method
Confirmed Y/N
Conclusion On CTC
Rephrase Critical To Customers
Copyright © Institut Lean France 2012
2. Make choices
Copyright © Institut Lean France 2012
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
Copyright © Institut Lean France 2012
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
Copyright © Institut Lean France 2012
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?
Copyright © Institut Lean France 2012
3. Teach teamwork
Copyright © Institut Lean France 2012
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
Copyright © Institut Lean France 2012
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
Copyright © Institut Lean France 2012
4. Set up a design factory
Copyright © Institut Lean France 2012
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
Copyright © Institut Lean France 2012
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?
Copyright © Institut Lean France 2012
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
Copyright © Institut Lean France 2012
5. Learn to learn
Copyright © Institut Lean France 2012
Self-reflection activities
Date Problem Cause Countermeasure Status
•Learning events during the project: Teardowns Code cleanup Code reviews
Copyright © Institut Lean France 2012
Teach and improve standards
• Dojos: one-on-one training
• Suggestions
• Experiments
• Constant improvement of checklits
Copyright © Institut Lean France 2012
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
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