The Product Development Playbook: Metrics that Matter

The Product Development
Playbook for Startups
Jeremy Dillingham, VP Product
Steve Neely, VP Engineering

HEADLINE SPONSORS
PARTNER SPONSORS MEMBER SPONSORS
Baker Hostetler
Bradford, LTD
Capital One
Coastal Cloud
Colorado Impact Fund
Connect For Health Colorado
Cooley
Corus360
EKS & H
Event Integrity
Full Contact
Gary Community Investments
General Assembly
Groundfloor Media / CenterTable
Guiceworks
ImageSeller
Ink Monstr
Intelivideo
Luna Gourmet Coffee & Tea
Nanno
Officeof Economic Development
Pass Gas Denver
Slalom
Wazee Digital
Accenture
Bridgepoint Education
Butler Snow
Delta Tables
Hogan Lovells
Meyer Law
Name.com
Slifer Smith & Frampton
SoGnar
Sounddown
Swiftpage
The Denver Foundation
Zipcar

Product Development Playbook: Jeremy & Steve, DSW 2017 | 5
Pop Quiz: Question 1
How many startups are there in the US?
29.6 million

What is the startup survival rate?
50% of startups fail within 5 years

Why do startups fail?
1. No market need
2. Ran out of cash
3. Not the right team
4. Got outcompeted
5. Pricing/cost issue
6. Poor product
7. Need/lack business
model
8. Poor marketing
9. Ignore customers

Which of these are the responsibility of
Product Development?
1. No market need
2. Ran out of cash
4. Got outcompeted
6. Poor product
model
8. Poor marketing
9. Ignore customers

Pop Quiz
Which of these are the responsibility of
Product Development?
1. No market need
2. Ran out of cash
4. Got outcompeted
6. Poor product
model
8. Poor marketing
9. Ignore customers

Today we’ll try to help you beat
the odds

with practical tips based on our
experience

Your mileage may vary

Intro
Chapter 1: High Functioning Teams
Chapter 2: Metrics
Chapter 3: Process to Enhance not Impede
Homework

Inventory what you’ve got

and where you are...

Find the one most impactful
thing to focus on

Teams of the right size, and the
right people

right size = 5 ± 2

Communication increases
exponentially

Right people

Self-aware

Growth mindset

Continuously learning

Culture fit

Experience

Roles:

product manager

engineers

quality

user experience

data science, product marketing
...

Dedicated teams

aligned around tech stack,
product, or customer

remove switching costs

Employee engagement

“Business units scoring in the top half on employee engagement…
nearly double their odds of success
22% in profitability,
25% in turnover (high-turnover organizations),
37% in absenteeism,
41% in quality (defects.)”

Ultimate focus on customer

Empathy: customer, employee
and social media

“Empathy is not a soft nurturing value but a hard commercial tool
that every business needs as part of their DNA. Our aim is to make
every interaction our customers have with us an individual one.”
– Rene Schuster, former CEO of Telefonica Germany

Takeaways:

Right people
Right skills
Right motivation

One metric that matters

“Human beings adjust behavior based on
the metrics they’re held against”
– Dan Ariely in HBR 6/10

Business metrics

MRR / ARR ($)
Growth rate (%)

Easy...right?

KPIs

Pipeline ACVConversions
Expansion
Upsell
Downgrades
Lost
Customers
Transactional
Upsell
Net ARR Growth
New ARR Upsell ARR Retained ARR

Leading vs. Lagging Indicators

SaaS metrics

CAC - Customer Acquisition Cost

CAC = marketing spend ($) +
Sales costs ($) / # customers

LTV - Lifetime value

LTV = total revenue ($) over life
of customer

LTV = Gross margin % * ( 1 /
monthly churn ) * avg. monthly
revenue per Customer

LTV : CAC =
2.5-3+

Payback Period - Time (months)
to recover CAC

ACV = Avg contract value

Net Churn = downgrades +
cancellations - upsells
or
Net Retention = upsells -
(downgrades + cancellations)

Lots more...remember focus!

Product metrics

Metrics vary by business type

B2C

”AARRR” (metrics for pirates)
– Dave McClure

Acquisition
Activation
Retention
Revenue
Referral

B2B

The only product metric that
matters
– Josh Elman via Mind the Product

Purpose - why?

Core Action - Key Behavior

Cycle - Frequency

7 Friends first 10 days

How to uncover?

Instrument your product

Dive deeply into data

View user sessions

Create dashboards and
reporting

Run experiments and evaluate

Engineering Metrics

Basic: estimating and story
points

Fibonacci: 1, 2, 3, 5, 8, 13

Product Development Playbook: Jeremy & Steve, DSW 2017 |
100
Velocity = story points
completed per sprint

101
“If you're looking at averages, not distributions, you'll
always be confused about why things are taking so
long.”
– Adrian Cockcroft, #devopsdays

102

103
Flow-based metrics

104
Throughput = stories completed
per sprint

105
Cycle Time = How long it takes
for a story to get through our
process

106
Work In Process = number of
stories being worked at a given
time

107
Little’s Law =
WIP = Throughput * CT

108
Little’s Law’s most useful for
influencing behavior

109
Be the WIP master

110
Takeaways:

111
Find your single metric
Focus your teams
Calculate your capacity
Limit your WIP

113
Be vulnerable.
Hold trust.
Express appreciation.
– Jean Tabaka

114
"Vulnerability is the foundation of trust and trust is
the foundation of great teams."
– Tribal Unity, Em Campbell Pretty

115

116
Learn how Agile really works

117
Understand where agile does
and does not work

118
start small and let the word
spread

119
Agile: lead with Scrum

120
Process with a little ‘p’

121
Little Room Planning

122
Q2 Q3 Q4
1. Every 3-6 months Exec team dives
deep into strategy & sets business
Themes
2. Every quarter Product &
Engineering leads craft Initiatives
& Epics
3. Every 6 weeks Agile teams “Little
Room Plan” where they refine & break
down Epics

123
Q2 Q3 Q4
mid-quarter
Q3 “Little Room
Planning”:
6 weeks of broken down Epics as
estimated Stories
...and 6 following weeks of high-
level Epics
Themes
Initiatives & Epics

124
Q3 Q4
mid-quarter
Mid-Q3 “LRP”: ...and 6 following weeks of high-
level Epics
mid-quarter
6 weeks of broken down Epics as
estimated Stories
Themes
Initiatives

125
Takeaways:

126
Build trust
Be agile
Little ‘p’ for startups

128
Tomorrow, focus on the one
most impactful thing

129

130
Thank you

131
Questions?

www.apto.com | 888-633-6424 | @aptotude

The Product Development Playbook: Metrics that Matter

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (16)

Semelhante a The Product Development Playbook: Metrics that Matter

Semelhante a The Product Development Playbook: Metrics that Matter (20)

Último

Último (20)

The Product Development Playbook: Metrics that Matter

Notas do Editor