Sense & Respond: A Lean Leader's Workshop, Jeff Gothelf, Principal, Gothelf.co + Joshua Seiden, Principal, Fifty2

HOW TO BUILD & LEAD SUCCESSFUL
LEAN PRACTICES IN HIGH GROWTH
COMPANIES JEFF GOTHELF
SENSE & RESPOND
JEFF GOTHELF / @JBOOGIE / JEFF@GOTHELF.CO
JOSH SEIDEN / @JSEIDEN / JOSHSEIDEN@GMAIL.COM

GOTHELF.CO / @JBOOGIE
YOUR FACILITATORS TODAY:
jeﬀ@gothelf.co
Jeﬀ Gothelf
@jboogie
joshseiden@gmail.com
Josh Seiden
@jseiden

OUR AGENDA
• Intro to concepts
• Introduce the problem space (i.e., context)
• Business Problem Statements
• Risks & The Risks Dashboard
• Experiment Stories
• Decision-making meetings
• Decision-making exercise
• Q&A / Discussion

INTRO TO CONCEPTS

WHY SHOULD WE CHANGE?

YOU’RE IN THE SOFTWARE
BUSINESS
AT GOLDMAN SACHS THE LARGEST SINGLE DIVISION
IN THE FIRM IS NOW TECHNOLOGY, EMPLOYING EIGHT
THOUSAND—A FULL 25 PERCENT—OF THE FIRM’S
THIRTY-TWO THOUSAND EMPLOYEES.
GENERAL ELECTRIC HAS BEGUN A PROGRAM CALLED DIGITAL TWINS THAT INVOLVES
CREATING DIGITAL SIMULATIONS OF HARDWARE PRODUCTS.  
 
A JET ENGINE MIGHT HAVE A “VIRTUAL TWIN” SPECIFIC TO THE ENGINE RUNNING
ENTIRELY IN SOFTWARE. THIS ALLOWS GE TO MONITOR REAL-TIME PERFORMANCE OF
THAT SPECIFIC ENGINE AND ALSO TO EXPERIMENT WITH NEW ENGINE FEATURES AND
SETTINGS IN THE DIGITAL REALM WITHOUT HAVING TO TAKE SAFETY RISKS IN THE REAL
WORLD.

7
"We poured surreal amounts of money into it, yet we all thought it had no
value for the customer, which was the biggest irony. Whenever anyone asked
why we were doing this, the answer was, ‘Because Jeff wants it.’ No one
thought the feature justified the cost to the project. No one. Absolutely no one."

"If you think that's a big failure, we're
working on much bigger failures right
now…some of them are going to make
the Fire Phone look like a tiny little
blip.
The size of your mistakes needs to
grow along with the company. If it
doesn't, you're not going to be
inventing at scale that can actually
move the needle."
http://www.businessinsider.com/jeﬀ-bezos-why-ﬁre-phone-was-a-good-thing-2016-5

SOFTWARE IS CONTINUOUS

11.6Seconds

CONTINUOUS CONVERSATION
Ship
SenseRespondRespond

W E C A N ’ T M A K E D E C I S I O N S L I K E T H I S
A N Y M O R E
W E ’ R E S E T T I N G O U R P R O D U C T T E A M S U P T O F A I L

SOFTWARE
DEVELOPMENT IS
COMPLEX AND
UNPREDICTABLE.

AGILE & LEAN ARE
ONLY FRAMEWORKS

HOW DO WE LEVERAGE LEAN, AGILE
& DESIGN THINKING TO BUILD A
CUSTOMER-CENTRIC CULTURE OF
CONTINUOUS LEARNING?
EMBRACING UNCERTAINTY

FOUNDATION:
USER-CENTERED
PERSPECTIVE

OUTCOME:
A MEASURABLE
CHANGE IN CUSTOMER
BEHAVIOR

FRAMING WORK WITH
OUTCOMES ENCOURAGES
EXPLORATION…

…BUT IT COMPLICATES
MANAGEMENT

Agility in planning — (projected)
You are here! Launch!

GOTHELF.CO / @JBOOGIE@jboogie
Agility in planning — (actual) roadmaps

THE TRUTH CURVE
Anything you’re doing in here is
stupid. i.e., unnecessarily risky

WE MAKE EVIDENCE-BASED DECISIONS

THE CONTINUOUS LEARNING CYCLE
• Define a business problem
• State your desired outcomes
• Declare your assumptions
• Hypothesize: write the test first
• Run an experiment
• Synthesize your findings
• Kill / pivot / persevere
• Repeat
Ideas
Build
Product
Measure
Data
LearnLearn
Start here!
This should be as short a cycle as possible

FOUNDATION:
BUSINESS PROBLEM STATEMENTS

Provide a specific challenge for the team to solve
Give focus to the team’s effort with guidelines and constraints
Limit the scope of the team’s work
Provide clear measures of success
Do not define a solution
Are not gospel
Will likely be filled with assumptions that need to be proven

Made up of 3 elements:
1. The current goals of the product or system
2. The problem the business stakeholder wants addressed (i.e., where the goals
aren’t being met)
3. An explicit request for improvement that doesn’t dictate a specific solution

Template for business problem statements:
[Our service/product] was designed to achieve [these goals]. We have observed that
the product/service isn’t meeting [these goals] which is causing [this adverse effect/
business issue] to our business.
How might we improve [service/product] so that our customers are more successful
as determined by [these measurable criteria]?

EXAMPLE OF A BAD BUSINESS PROBLEM STATEMENT
Our competitors have all shipped mobile applications in the last 12 months and are
advertising them heavily. With the ongoing need to stay competitive we too must
develop more mobile products.
To achieve this we intend to launch an iOS application by Q4 2017 and ensure all of
our marketing sites are mobile-friendly by the beginning of Q1 2018. In addition, we
will launch a Facebook mobile ad campaign to ensure our acquisition targets are hit
this year.

EXAMPLE OF A GOOD BUSINESS PROBLEM STATEMENT
With a tremendous increase in funding for ed-tech startups, we’re concerned by the
risk of external disruption by a more nimble competitor. New students both in the US
and abroad are entering schools with a mobile-first or mobile-only mindset. Our
products are heavy and not mobile-friendly.
We believe we should invest in more capable mobile offerings but are not sure
exactly where those investments should go. Success is defined as a 15% increase in
mobile device usage of our flagship learning mangement system by our student
population.

TO-DO RIGHT NOW:
FORM TEAMS OF 3 OR 4…

TO-DO RIGHT NOW:
SAY HELLO
(FOR NO MORE THAN 30 SECONDS)
TO EACH OF YOUR NEW TEAM MATES

EACH TEAM PICK ONE OF THESE PRODUCTS TO WORK ON
• Amazon Echo (link)
• Voice-based ask-me-anything speaker/cylinder device
• Samsung Family Hub Refrigerator (link)
• Fridge with a screen, app, and internal camera that sends you pics of interior

EXERCISE: WRITING BUSINESS PROBLEM STATEMENTS
Each team, place yourselves in the shoes of the
team responsible for creating this product.
Write one business problem statement for the
product you chose. Assume it does not already
exist.

METHOD:
RISKS DASHBOARD

COMMUNICATE RISKS, CONTINUOUSLY
We can create a breakeven or better business
model
need to see strong engagement
Practitioners will interact with questions and
comments
need more data, some concerns
We can avoid legal risk for clinician participants
good intra-organization, questions
for inter-org groups
We can sell this directly to alumni groups, private
practices, and national orgs
untested
This concept is interesting to more than residents positive signs
People are hungry for more cases than they
currently have
positive signs but we want to see
more demand

EXERCISE: CREATE A RISKS DASHBOARD
Each team, identify 5 risks for your business
problem statement and create a risks dashboard
for them based on the current state of the parent
company (Amazon / Samsung).

METHOD:
EXPERIMENT STORIES

EXPERIMENT STORIES
What do we need to learn?

EXPERIMENT STORIES
We believe that asking new users MORE
questions during registration will increase
completed proﬁles.
Tactic: Landing page test
Customer interviews
Assigned to: UX, PdM 2pts

EXPERIMENT STORIES

ONCE THE EXPERIMENT IS OVER
• Bring your learnings to stand up (or call an impromptu meeting)
• Use conversation
• Follow up with artifacts -- photos, (short) videos, results/reports
• Assess impact to backlog
• Re-prioritize if necessary
• Re-estimate (or write new stories) depending on the experiment’s outcome
• Capture your findings in your team’s knowledge management tool (e.g., wiki)
• Communicate your findings to stakeholders and other groups
• Get approval (if necessary) for scope changes

METHOD:
DECISION-MAKING MEETING

THE DECISION-MAKING MEETING
• Happens on a regular cadence
• Consistent attendance / empowered team
• Goal is to review evidence collected since last meeting
• Review risks dashboard and make decisions on whether to kill / pivot /
persevere effort on certain experiments and delivery work
• The venue for the risks dashboard
• Discussion should include impact of each decision and where efforts will shift
if decision is to kill or pivot an idea

EXERCISE: DECISION-MAKING MEETING
Each team will be presented with some
experiment findings. Reconcile these findings
with your risks dashboard and make a kill / pivot
/ persevere decision about your product effort.

EXERCISE: AMAZON EXPERIMENT FINDINGS
• Most consumers fear putting a live always-on microphone in their house
• The ability to order without a screen is enticing but also scary (what if I order by
mistake?)
• Amazon is not Google. Most consumers didn’t “search” for anything
• Households not heavily dependent on Amazon had far less interest in a voice-based
interface than those who use Amazon heavily

EXERCISE: SAMSUNG EXPERIMENT FINDINGS
• Families replace a fridge once every 10 years
• Smart fridge is still seen as an (old) internet joke
• Where will I put my kids’ paintings?
• Will I now need an app for my fridge? What about my toaster?
• I really care about the environment and reducing waste. How will this help?
• Another app store? How free will I be to use/delete these apps?

EXERCISE: DECISION-MAKING MEETING
Each team will be presented with some
experiment findings.
Reconcile these findings with your risks
dashboard and make a kill / pivot / persevere
decision about your product effort.

Q&A: WHAT ELSE IS ON YOUR MIND?

@JBOOGIE & @JSEIDEN
SENSEANDRESPOND.CO
THANK YOU!
JEFF GOTHELF / @JBOOGIE / JEFF@GOTHELF.CO
JOSH SEIDEN / @JSEIDEN / JOSHSEIDEN@GMAIL.COM
SENSEANDRESPOND.CO
WE ARE GIVING AWAY 50 FREE
COPIES OF OUR NEW BOOK AT THE
REGISTRATION DESK IMMEDIATELY
FOLLOWING THIS WORKSHOP

Sense & Respond: A Lean Leader's Workshop, Jeff Gothelf, Principal, Gothelf.co + Joshua Seiden, Principal, Fifty2

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Sense & Respond: A Lean Leader's Workshop, Jeff Gothelf, Principal, Gothelf.co + Joshua Seiden, Principal, Fifty2