Failing Well Agile 2013

Post on 06-May-2015

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There is a trap hidden inside Lean Startup's CustDev cycle. If entrepreneurs want to be successful, they have to be passionate about their ideas. They need to understand more about their customers than anyone else. I’ve spent the last year lecturing to and teaching entrepreneurs and I've observed that their passion for their idea and their belief that they already DO know everything about their customers can prevent them from actually LEARNING what they need to know in order to create as successful business. The same passion and positive psychology required to succeed in the face of uncertainty is hindering them from learning fast enough to survive. How can we take our passion, our vision, a couple “wild ass guesses”, and produce meaningful, validated learning? The question of how to learn as an organization and how to DEMONSTRATE learning has been explored by philosophers of science and by business theorists for years. What can the Lean Startup Community learn about creating scientifically valid experiments that create actionable knowledge? Learn how to fail well and fail faster by keeping your passion focused on the vision and our dispassionate logic focused on the assumptions.

Transcript of Failing Well Agile 2013

blog: jabe.co

FAILINGprinciples and practices of

Vanity Validation a Paradox of Passionate Commitment

WELL

@cyetain

What was the last thing you failed at?

What did you learn?

Did you share your failure with anyone?

Pre-Talk Questions

blog: jabe.co

FAILINGprinciples and practices of

Vanity Validation a Paradox of Passionate Commitment

WELL

HELLLOOOO McFLYTLC LABS

blog http://jabe.co

Send Anonymous Feedback

http://sayat.me/jabebloom

Joshua (Jabe) BloomCTO : The Library Corporation

& Consulting Practioner TLC Labs

#agile2013

@cyetain

Fail Fast

@cyetain

@cyetain

Learning occurs when we detect and correct error. Error is

any mismatch between what we intend an action to produce

and what actually happens when we implement that action.

-Chris Argyris

@cyetain

How Do We Make Better Choices?

Why is it so hard to Fail?

Could we design a system to help?

@cyetain

One must treat his theory-in-use as both a psychological certainty and an intellectual

hypothesis.-Chris Argyris

@cyetain

How wonderful that we have met with a paradox. Now we have some hope of making

progress.-Niels Bohr

@cyetain

@cyetain

fake dictionary page from colbertnation.com

@cyetain

Although theory without experiment is empty,

experiment without theory is blind.

-Paul Thagard

@cyetain

3 Things To Leave With

• Failing Well Produces more Information than Failing Poorly

• “Passionate Beliefs, Loosely Held”

• Reducing Variability too, Soon risks suboptimal result, too Late increases Failure blindness

@cyetain

We simply cannot rely on randomness to correct

the problems that randomness creates.

-Don Reinertsen

@cyetain

undifferentiated streams of data

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“Research is what I’m doing when I don’t know what

I’m doing.”-Wernher von Braun

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The Principle of Optimum Failure Rate

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Probability of Failure

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Greater Asserted Information

Greater Asserted Information

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Greater Asserted Information

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theory is wrong

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Interesting Ideas

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Greater Asserted Information

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Interesting Ideas

Uncomfortable

Confident

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Experience of Failure

Num

ber

of S

ampl

esThe Competency Trap

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Interesting IdeasHidden

RiskHidden Value

The Line of SURPRISE!

@cyetain

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Interesting IdeasHidden

RiskHidden Value

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During Customer Development Focus on Interesting Ideas

Before Scaling Validate Your "We Know This Assumptions" to reduce risk of Failure Demand

After Customer Validation Run experiments to Validate Assumptions of Failure

2 3

1

@cyetain

“The typical sequence of coin tosses has high information content but little value; an

ephemeris, giving the positions of the moon and

planets every day for a hundred years, has no more

information than the equations of motion and

initial conditions from which it was calculated, but saves

it’s owner the effort of recalculating these positions.”

-Charles H. Bennett

@cyetain

Based on what we know right now, what problems

do we have the least amount of information

about that we can reasonably expect to

understand?

@cyetain

@cyetain

Risk vs Uncertainty

@cyetain

Alteaory vs Epistemic

Uncertainties

@cyetain

Gamble Invest

@cyetain

Justified MVP

Value of Information

Cost of Acquisition

Cost of MVP

UnjustifiedMVP

Over JustifiedMVP

JustifiedMVP

@cyetain

The first principle is that you must not fool

yourself--and you are the easiest person to fool.

-Richard Feynman

@cyetain

“Most people don’t know how to learn. What’s more, those

members of the organization that many assume to be the best at learning are, in fact, not very

good at it. I am talking about the well-educated, high-powered, high

commitment professionals” -Chris Argyris

@cyetain

“Expertise … breeds an inability to accept new

views.” -Laski

@cyetain

@cyetain

Vanity Validation

@cyetain

I need to be right even if I'm wrong.

@cyetain

Defensive Reasoning

@cyetain

Remain in unilateral control

@cyetain

Maximize "winning"

Minimize "losing"

@cyetain

Suppress negative feelings

@cyetain

Be as "rational" as possible -- by which people mean

defining clear objectives and evaluating their behavior in

terms of whether or not they have achieved them

@cyetain

Mindset Actions

Results Match

Results Mismatch

Single-loop

Double-loop

@cyetain

Valid Public Information

@cyetain

@cyetain

whenever we propose a solution to a problem, we ought to try as hard as we

can to overthrow our solution, rather than defend it.

-Karl Popper

@cyetain

• Identify Your Assumptions and Conclusions CLEARLY AS POSSIBLE PUBLICLY

• Question Your Assumptions and Conclusions

• Seek Contrary Data

• Learn when to correct your Actions and when to correct your Mindset

@cyetain

http://xkcd.com/

@cyetain

@cyetain

Abductionnot just for

Aliens

@cyetain

@cyetain

[Abduction] goes upon the hope that there is sufficient affinity between the reasoner's mind and nature's to render

guessing not altogether hopeless, provided each guess is checked by comparison with observation... The effort should therefore be to make

each hypothesis... as near an even bet as possible.

-Charles Peirce

@cyetain

ABDUCE

DEDUCE

INDUCE

Predictive

Probable

Plausible

The Way

Computers "Think"

The Way

Humans Think

Binary

Probability

Analogue

Justifiable

@cyetain

ABDUCE

DEDUCE

INDUCE

Experiences Hypothesises

ExpectedOutcomes

If Coherent

If Expected Outcomes Match Reality

EffectiveMatch

@cyetain

ABDUCE

DEDUCEINDUCE

@cyetain

ABDUCE

DEDUCEINDUCE

SURPRISE!!!

@cyetain

Multi-Hypothesis Research

!=

@cyetain

BRAINSTORM

@cyetain

TheoriesOpinions

Hypothesizes

The Facts and Just the Facts

@cyetain

TheoriesOpinions

Hypothesizes

ConstraintsCriteria

@cyetain

TheoriesOpinions

Hypothesizes

QuestionFacts

@cyetain

TheoriesOpinions

Hypothesizes Request More Information

@cyetain

NO TALKING!

@cyetain

How Would I Validate my

understanding of this

problem?How Would I

solve this

Problem?

•Based on your experiences, what would you do to solve this problem? This is your Hypothesis.•Identify What Needs to Be True if your Hypothesis is true.•Assert, Presume, Assume Truth•Imagine Experiments that would justify the Assumptions

@cyetain

I Assert that this I know this

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theory is wrong

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Interesting Ideas

I Presume Somebody knows this

I am going to Assume

this is true for my

Hypothesis to be true

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Probability of Failure

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Pretty Sure

theory is wrong

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theory is right

Interesting Ideas

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theory is wrong

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Interesting Ideas

@cyetain

This is my Hypothesis,

Assumptions and

Experiments

ChallengeAssumptions & Experiments

Rotate Pairs 2-3 TimesAllow Time for Revision Between Rounds

@cyetain

This is my Hypothesis,

Assumptions and

Experiments

@cyetain

Multiple Smaller Experimentsagainst

Multiple Abductive Hypotheses

instead of

Single Large Experimentagainst

Single Hypotheses

@cyetain

Failing Well Produces more Information than Failing

Poorly

@cyetain

What are You Doing w All that Information?

Incremental: Confirm. Disconfirm.

Iteratively: Select Next Step. Generate More Options

@cyetain

Having “Passionate Beliefs, Loosely Held”

FAILURE

MUST

BE AN OPTION

@cyetain

Reducing Variability too soon risks suboptimal

result, too late increases failure demand

@cyetain

@cyetain

Influences &

Sources of More Information

@cyetain

Joshua (Jabe) BloomCTO : The Library Corporation

& TLC Labs

blog http://jabe.coSend Anonymous Feedback

http://sayat.me/jabebloom