Visual management can take the most unlikely of forms. Done well, it should show you enough details at a glance so you can decide whether to look further into the situation.
Major bands get riders, often part of the contract stipulating what the venue will provide the band to make them comfortable on the road. This can be sofas, champagne, beer, food cooked to a certain standard or even a curry take-away flown in from a specific restaurant in Wales. Some of the items on the riders are tiny and we’d consider them petty, but major stars have lived up to their diva reputations by blowing full-scale tantrums at not having their riders met.
No Brown M&Ms
One of the most legendary of these was the American hard rock band Van Halen. As a rock band they had a reputation to uphold; raucous, fun-loving, tolerating no nonsense. They also through tantrums when their rider was met entirely even down to minuscule details. The most popular of these details was a requirement that they would be provided with a bowlful of M&Ms with all the brown ones removed. If they walked into their changing room and saw a brown M&M in the bowl, then tantrums ensued.
The interesting thing for us is that the presence of brown M&Ms was a form of visual management. As mentioned by the band’s lead singer, Dave Lee Roth, they used a lot of equipment in their tour and they needed to know whether the requirements for the tour, e.g. a stage that could support the weight of the equipment would be available on the night, whether the electrical supply was to specification, etc. All of this was in the band’s contract with the venues. Buried amidst all these technical requirements was the brown M&M clause.
On walking into the dressing room, the band could immediately tell if the venue operators had read the details of the contract. That was visual management. If there was a brown M&M in the bowl, then there was a high probability that other more potentially dangerous omissions had been made in conforming to the contract. Those omissions could have risked the safety of the band, the crew, the audience and the venue itself. So a quick check of whether the venue’s organisers had read the contract and applied it was a useful point for the band’s management.
As for the rockstar tantrums in response, they were just keeping up appearances and it didn’t hurt their reputation. So having the band perform the check in a rockstar style was genius.
Snopes has a great overview of the rider and implications.
You have many opportunities in life and business to change your mind. Each of us has many opportunities, but we don’t always take those opportunities. We may be conforming to social constraints and expectations or don’t want to risk appearing inconsistent by changing too often. Let’s look at a non-serious example and extract nuggets we can apply in a business context.
1) The Background
I’m in a situation right now where I’m having to re-evaluate my aims. Fortunately it’s not a serious situation and there are a few parallels to my professional life. I play guitar and I own a few guitar amplifiers. Each guitar and amp has its own tonal identity and quirks. I pick the right tools for the job; playing in a 60s Motown/soul band requires different guitars and amplifiers than playing in an 80s hair metal cover band.
At a gig at the beginning of Summer this year, I played using a very nice amplifier and it sounded awesome with the band. I really enjoyed how it sounded and I probably played better because I was comfortable that it did the right job.
2) The Hypothesis
I thought that I could use the same amplifier with a few changes in my set-up (i.e. a different effects pedal or two) and I would again have an awesome sounding rig, but this one would be suited to the 80s hair metal cover band I’m currently playing in.
I gave a short presentation at GreatPreneurs’ conference (#GPConf2014) in Manchester this weekend on the subject of “What does your support network do for you?”
I wasn’t talking about friends or family, but rather the startup events and meetings that occur in your city.
I’m pretty convinced you could eat for a month without having to buy any food by attending an event in the morning, a different one in the afternoon and one or two in the evening. Every day. In Manchester, UK, there are enough events to do this. But if you were to do so, that’s all you’d manage to accomplish. Well, that plus swapping business cards and talking to people. You wouldn’t actually get any work done.
When you’re pre-startup, bouncing around ideas and wondering what you’re business is going to be, these events can be ideal. They allow you to learn from others, get a feel for what your city provides and understand how others have succeeded or failed.
Shift of Focus
At the point that you commit to having a startup, then the focus changes. You’re no longer going to these events just for yourself, you’re going as a founder of your startup. The question of value also changes. My rule is “has my company progress further by me attending this event than if I’d focussed on growing the company instead”. That could mean developing new features, ringing up a customer, creating some marketing collateral, etc.
This shift of focus vastly reduces the number of events that are worth attending. In fact, it highlights gaps in the current support network. You may find, as we did, that there weren’t events focussed on what you wanted. So we created our own. The good thing is that nowadays, with tools such as eventbrite and meet up, you can create an event really easily. I’d recommend treating the event as a mini startup in itself, so think about the customer development very early on before you scale.
Pay It Forward
However, events shouldn’t just be about receiving. For equitable events with everyone sharing, rather than those where you pay to attend, the events only work if you give. You may be giving information, advice, consultancy, some information about yourself, friendship. That all needs to be provided for someone else to receive. Sometimes, it will be you receiving and that’s good. I’d ask everyone to give before they receive and to give more while they have the time, because when they near the end of the runway, they’ll really require some help. Think of it as investing in your future.
Slides and Comments
I’ve embedded the slides here and I’d be happy to hear comments. You can find me @alanward.
Time has been passing quickly at Besteno, so I thought I’d take stock and describe what can happen in the first three months of a startup, specifically my startup, Besteno. What have I done, where am I headed?
October 26th 2013 was the first day of LeanConf 2013 (the link now relates to the 2014 conference) and I was due to present the following day about my experiences of using Lean Startup concepts in existing organisations, specifically social care in the public sector. Up to that point, I’d been talking to friends about setting up a company together. However, most had families, couldn’t commit or were in a different place to make it too awkward to co-found. During that conference I just decided to start on my own and then look for a team later on.
As a web startup, that meant I had code, test, maintain and design. Before any of that, I had to understand if the business was worth getting involved in. So that meant business model canvas for one year and one for 3 years. I had a long-term vision and still want to achieve that so every short-term objective is evaluated against the long-term aim. That’s been a consistent strategy. From the business model canvas, I created a couple of sketchy business plans and then projected user growth. While this may not have been accurate, it’s a useful guide and I change it when I discover accurate data. Conducted some market research, which combined with user growth, enabled me to create cash-flow forecasts for every month for 5 years. Monthly may seem excessive, but I’m quick with spreadsheets and once you done figures and calculations for two months, you just copy for the rest of it. This wasn’t onerous for me. It’s not a route I’d recommend for everyone, but suited me with the skills I already use.
All of that preparatory work proved to me that this was an idea to at least get to the MVP (Minimum Viable Product) stage.
Then development started.
I had to teach myself Rails. Fortunately, I had a business idea earlier in the year and played with Rails to get my head around how it worked. However, I was still a novice. I used to code 15 years ago, but hardly ever do it, up until now. Best thing I did was ditch SQLite and go straight for MySQL, even for dev. It was actually quicker. It also makes the transition from dev to production a lot easier. PostgreSQL is good as well, if not better, but I had my reasons for MySQL.
I opted for Rails 4 and Ruby 2.0 as they seemed stable and the increased remaining lifetime compared to Rails 3 was attractive. That then gave me some other problems. I knew I wanted a scalable host/cloud and very few advertised that they handled Rails 4 back then. I opted for AWS having found a good couple of articles on how to set up the servers. Before that though, I had to understand web service architecture. Having been a business transformation consultant for the last decade or so, I didn’t have the nuts-and-bolts knowledge of how web architectures worked. Fortunately, I knew what most of the components were, just not how you’d use them. So that filled a couple of evenings.
Other odd technical things I’ve had to pick up along the way:
how to run a process without it stopping when your session stops – use nohup or run as a daemon – depending on the process. And find out how to stop them (kill -15 was the lowest level kill I found that worked for one stubborn process)
how to monitor the above processes – tail -f is very useful
setting up memcached and how to see if it’s working – use the port.
wishing every shell had nano instead of vi. I prefer nano and I’m sure I could replace vi with nano, but then it crops up again when creating batch jobs with crontab. There are enough things to learn in life, cryptic applications like vi aren’t on my list.
Learning CSS, html and bootstrap. Understand the effect that the order of commands has.
Firewall configuration, scaling options, pricing options with AWS
Understanding how to retain data when your really big server that you hired for a very cheap spot rate on AWS kicks you out of the session – it happens so think about what you’ll do with the process if it stops midway. Some of my processes were taking 2 days to complete. I didn’t want to waste my time or money.
Understanding solr and its rails integration through sunspot. There are some odd anomalies.
I didn’t do TDD. Sorry to Rails devs out there. I just couldn’t get tests to execute, usually because of the software stack on my MBP including several OS X upgrades. In fact I even had to install RVM in an odd way on the MBP just to get it to work. My view with TDD was that it was going to take me a few days to get it working; resintalling, etc. I figured it was more important to start coding, then retrospectively write test scripts for the more important features once I had breathing space. That’s the technical debt I took on.
Integration with other providers is painful. Overall, I found lack of current documentation to be the biggest issue here. Add to that documentation that doesn’t reflect the behaviour of the API itself and manuals that weren’t well written (probably just rushed).
I left ETL processes until after I’d built and launched. As much as they are needed, they weren’t part of the MVP. Do it manually on a command line if needed to start with.
Coding is a different exercise now compared to when I used to do it. Back then, I used to develop with a few reference manuals to hand (K&R anyone?) and using man, apropos and a few other useful commands. Now, just go to stack overflow or official guides online.
Finding where mysql logs are stored on AWS
Trying to identify the active memcached configuration file is a bit of trial and error. I imagine you could deduce it logically, but that’d mean access to information I hadn’t thought of.
Part-way through planning I realised I’d need funding so I started talking to Access to Finance. Separately, I applied for funding through TSB SMART. I found out about it late and submitted around midnight of the last day (with about 12 hours to spare). The exercise itself was useful to me; it made me think more about what I wanted money for. So instead of thinking I need a couple of developers and a designer to improve the product, I started thinking in terms of work packages and deliverables. Fortunately, that’s something that comes naturally to me from my previous business transformation background. Unfortunately, it doesn’t align well with sprints including as-of-yet unknown requirements. This made obtaining funding a bit uncomfortable process, especially as Manchester seems relatively financially risk averse. Which is at odds with the culture of the Madchester music scene during which I arrived in Manchester a couple of decades ago.
Premises and support
SBIC have been great. I get a day per week out of the house in their business lounge. They’ve been a very useful sounding board. Being in a environment where I know I have to work is ideal. There are few distractions for me and I just get on with what I need to do. They’ve also managed to find a few subjects about business that I know I’ve been deficient in (or at least, I wasn’t sure what I didn’t know).
Free wifi access in Manchester is a bit poor. Shame. It’s a major city, but bars and coffee shops seem to think of wifi as an extra that you have to ask for. All too often, it just doesn’t work. Whereas it should be considered about as important as chairs or heating nowadays. It is changing for the better. The implication of this is that it’s not as easy as you may think to find places to work.
I’ve attended numerous events at various sites around the city, predominantly Thoughtworks’ offices, The Hive, Techhub and I run Founders’ Assembly, currently hosted by Matt at The Assembly.
Founders of other startups have been supportive. Like most groups of people, there are some who are just generally open and share everything and then others who don’t share as much, whether for potentially misguided commercial reasons, lack of community focus or just not their personality. I have an overall feeling that other founders are quicker to give advice than to listen. That may be the typical age and experience or just the way that we founders are.
Business Growth Hub are a major contributor to business support in Manchester. As well as one-to-one advice, they host a number of events for startup businesses. I haven’t attended as many of these as I could have, mainly because I’ve already accumulated a lot of experience in running my previous company and as a consultant on client sites. I can imagine that, if you were new to business, then their events would be much more suitable.
I use a combination of Trello (for business activities) and Excel (for tech activities). Trello works well for business. I like the finality of dragging a card to Done (even though I know I can undo it). However I couldn’t get on with Trello for development, partly because I was offline a lot of the time. So I built my own two worksheet spreadsheet. I’ll describe that in more detail in another post. The important point for me was that I could put it on Dropbox and it’d be with me wherever I was, regardless of how good the wifi connection was.
It was interesting to see the first few queries that arrived via Google search. Truly the long-tail in operation:
belizean cheesecake recipes
grendad best drumer [sic]
prembroke mass nunnery
ukraine electric bass
There were some more common queries as well which was a nice balance.
If you’re calculating any forecasts, keep a separate worksheet in your spreadsheet for assumptions. Use this for growth ratios from month-to-month, revenue per customer, staffing ratios required. Anything that you’re assuming or deciding. Choose 3 colours – one for assumptions, one for calculated values, one for known facts. Hopefully by the end of planning, you have none left of the first (never works that way). The reason I do this is so that I can change my forecasts very quickly by changing the assumption. Very useful if I’ve assumed a figure (e.g. number of people in the UK), then find out from ONS or somewhere an actual figure. First I change the figure, then change the colour. Then I can see the effect that change has had across the forecast.
Business Model Canvas first. Even if you only spend an hour or two on this. Do it. Then revisit it after a few days. Then revisit on a regular weekly or monthly basis depending on your rate of change
Manage your motivation. Keep positive but be realistic. Every evening, I write a list of my tasks for the following day. Means I get up knowing what I have to do. Usually that list comes from a quick look through the feature list, business list and bug list. I choose depending on where I’ll be, network connectivity and any sequence that needs to be adhered to.
Manage your energy levels. Know when you work best, under what conditions, in which environment, how much do you need, when can you work late and realistically catch-up on sleep, what’s your performance like the day after working late (is it worth it?)
Manage your time spent on product development versus time spent attending meetings versus time spent developing your business. It’s amazing how many meetings arise. How many are useful to you? Alternatively, how many would your presence be useful to?
Running a startup isn’t just product development, you have to develop your business and yourself as well.
Maintain focus. When you’ve decided on your MVP, make sure you do everything you can to release it. If you keep adding features to it and delaying the release, you’ll learn nothing about your market or your customers.
By the way, I’m four months in now, but I ended up sitting on this unfinished article while I launched the MVP. That’s prioritisation for you. So I’ve tidied it up and published. I’ll write the rest of the story another day.
I’d love you to answer some questions over at Besteno. Answering or sharing a few questions there would help me out.
It’s early days now, it’s been a fun and very challenging time. I’m grateful for all the support I’ve received and I’m trying to give some of that support back to the community through Founders’ Assembly and @mcrstartups.
In founding Besteno, I’ve had to use a lot of the skills I’ve used professionally in the past. It’s been a very interesting time being on the other side of the fence and I’m happy to have had the opportunity for that experience. What it taught me is that I’ve been doing it right all along (i.e. learning from mistakes, improving, learning and repeat). That’s a good lesson to learn.
Yesterday, I presented at #Leanconf 2013 in Manchester. It was the first Lean Conference covering Lean Startup in Europe. There was a great energy to the 2-day event with a variety of planned and unplanned talks plus lots of opportunity to network without the usual tradeshow conference feeling of being stalked by sales managers.
I don’t think I’ve seen a community spirit like that in a long time; every attendees helped someone else no matter how far along their own ideas were.
In the spirit of the energy that I encountered at the conference, I’ve placed the slides on slideshare. If you download the presentation, you can read the notes which will help you make more sense of the slides. Hopefully the video will be online as well soon. When it is available, I’ll update and post a link to it. The slides are at bottom of this article.
Background to the Programme
The programme I discussed in the presentation was a 2+year programme with a large city council in England. The programme was internal to the portfolio that handled Adult Social Care. It had a £1m+ budget with a team ranging from programme manager, business analysts, data analysts and communications officer, plus a governance structure and other associated stakeholders.
The aim was to make Adult Social Care more efficient, by removing waste, focussing on flow and reorganising around the value to the customer. All typical lean concepts. We did this with a mixed method that I’d developed specifically for this client. The method merged elements of Lean with Lean Startup with DSDM and Theory of Constraints, all under a typical local authority governance framework using Prince 2.
The scale of change was to alter the way of working of 200-300 social workers/care managers, their team managers, their business support plus associated teams. Most were involved in the change and took the opportunity to steer the change in ways that would benefit their service users. Additionally partner teams (e.g. those responsible for 1000+ support workers within the council, NHS staff, payments and contact centre staff) were brought into the process and contributed to the changes where possible.
Customer Development in Social Care
Due to the time available for the talk, I didn’t discuss Customer Development. I’d like to address that here. Firstly, my customers and those of the programme, were the workers on the frontline of social care. However, we also had a duty to their customers, i.e. the service users of the city and, wider still, the overall population of the city.
We used common Lean and Six Sigma techniques (e.g. Kaizenblitz, Voice of the Customer, Gemba plus interviews, workshops, etc) for understanding the wishes and activities of the frontline workers. The default position was always to go and visit the workers where they worked including a visit out to service users where possible and where permitted. There was no “ivory tower” mentality and as little desk-based research as possible.
I did want to get to the wishes of the end user, i.e. getting the answers to what mattered to the service users. We were able to do this through a service user forum and similar activities. Just to clarify, the forum is actually a real meeting, not an online forum. However the typical customer-development approach of “get out of the building” isn’t necessarily a good idea in this case. The reason is that any change has to be ethically sound; it can’t introduce discrimination nor can experiments (or MVPs from Lean Startup) that make the situation worse for those on that trial path.
The ethical dilemma is exacerbated further when you consider the concept of equitability in that any change has to be able to be applied to the entire population of service users if appropriate to them. So if you make a change to services in October, you’d better think about how you’re retrospectively going to apply those changes to service users referred back in April onwards. That could be as simple as a rule stating that they’d change at the next review point or it could be a specific project to apply it now.
A good example of the fundamental ethical issue can be found in the simple concept of asking customers “what can we do to improve?”
I love that question; it encapsulates the whole point of speaking to customers about what they want without biasing them towards a particular solution. It usually turns any negatives about current experiences into positive actions for change.
However, frontline staff wouldn’t want to ask that question of their service users in all circumstances, e.g. those with a current likelihood of being violent, those recently bereaved or in any situation where the service user or social worker is likely to come to harm. That means that the results from a survey of such a basic question would already be biased.
Similar nuances were found in almost every typical method for achieving customer development, whether phone surveys, online questionnaires, paper-questionnaires, focus-groups, questions tagged onto the end of a visit, etc.
Now, as mentioned in the slides, greenfield opportunities such as those found in newly-commissioned projects whether within local authorities or within NHS CCGs (Client Commissioning Groups) are ripe for Lean Startup and may benefit from a more thorough application of Customer Development.
What Messages Can you Take Away from the Presentation?
That you can successfully apply Lean Startup in the public sector
That if you can do it in local authority (which is about the worst-case scenario for successful implementations), then it should be implementable in other large, existing organisations, whether private or public.
That you may not benefit from applying all of Lean Startup; the corollary is true in that you can benefit from using some elements of Lean Startup. It depends on what you are trying to accomplish.
That the behaviour of staff (inherited from the culture of the organisation) will likely be your biggest obstacle.
Some of you may already know, I’m in the process of writing a book on improving your own service.
I’m aiming the book at the people who work the process themselves, e.g.:
and their managers
and change agents/analysts
As you can see, it’s not restricted to any industry, but will be most relevant to those working in service industries (whether from private, public and 3rd sector), so that should include:
More accurately, the information in the book could be useful for any industry, however there already exist books for improving manufacturing production processes, so I have not covered them.
What’s the book about?
The focus is on improving a service without recourse to large consultancy fees and should work well on small changes locally within a team and managed changes with partner teams and organisations (e.g. suppliers and B2B clients). It’s heavily based on Lean concepts, using simple tools, but also includes a framework in which to manage the changes. I’ve borrowed from a number of methodologies and concepts to meld together a method that is suitable for the average worker and implementable in any service team.
While I’m happy to write this book alone and for everyone to read, I really like the idea of the readers contributing their thoughts as I write it. This fits nicely with the Lean Startup model, so to accomplish this, I’ve listed the current table of contents below. Please have a read through the table of contents and let me know what you think. If you’re interested in this book, let me know what you want to learn from it.
Draft Table of Contents
Section I: Beginning
3 Where to Start? Section II: Redesign
4 How to Redesign the Service
5 Detailed steps for How to Redesign a Service Section III: Other Paths
6 Refocus service on customer
7 Only have today to make changes
8 Bottleneck Resolution
9 Reduce errors and improve service
10 Create a new service
11 Improve office layout Section IV: Case Studies
12 A Real World Example: Capacity and Value Stream Owner
13 A Real World Example: Duty Role in Social Care
14 A Real World Example: Urgent Cases in Social Care Section V: Extensions
15 Other sorting methods
16 Making it Happen
17 Managing the Change Section VI: Continuing
18 Sustaining Change Section VII: Reflections
19 Important Perspectives
20 Other Frameworks
21 A final piece of advice Section VIII: Appendices
22 Appendix A: The Rules
23 Appendix B – Pocket Guide for Service Redesign
24 Appendix C – Indicators of Blocked Flow and Waste
25 Appendix D: Tools
26 Appendix E: References
I’ve previously discussed the inclusion of a dormant state and a return loop when reflecting on the fact that the Customer Journey Never Ends.
You can include a further extension of the customer journey maps by showing proximity or emotional state.
Focus on the Emotional State
Typical customer journey maps (or diagrams) depict activities and results, maybe important events as well. These commonly use the terminology of the organisation rather the customer. By shifting that focus onto how engaged the customer feels at each stage, we see the journey from a different perspective; that of the customer.
Companies often use a sales funnel to monitor their sales process. Analysing the performance against the states in the sales funnels allows a company to redesign its sales process or to develop additional collateral. Some of the funnels focus on emotional state mixed with likelihood of buying. The customer journey map that displays emotional states can fit very well with the states defined in sales funnels. For example, the tables at the end of the superb Lean Entrepreneur book take the reader through the different levels of engagement that a customer experiences as they progress through the sales funnel:
Extend the States
These funnel states would need to be extended to include less positive states commonly found as customers move away from your organisation, e.g.:
There may be more states, but that will depend on your customers and what you understand about them.
How Can You Do This?
Compile a complete list of emotional states for your customers
Filter this list to create a simple, single list that reflects the combined understanding from marketing, sales and service/retention departments
Develop the customer journey maps
Take the list of states and apply them as an overlay to your existing customer journey maps or
Take the list of states and create a new customer journey map
My preference would be to start afresh as thinking based on the emotional state is likely to produce a different picture of the journey than the model based on activities and results.
You may have noticed that I didn’t include asking the customer for their emotional state. I nearly always advocate gaining input from customers in the most appropriate manner. I only omitted it above for the fact that it’s often a step too far for a lot of organisations. However, if your organisation has the means to engage with customers at the right level, then collate the emotional content from your customers and use that to build your customer journey map.
I’m reminded of the phrase “a dog is for life, not just for Christmas”. Similarly, as soon as an organisation starts a relationship with a customer, they’re stuck with that relationship. Many organisations design customer journeys but think from their own perspective rather than that of the customer. That’s a mistake but one that can be simply rectified.
An exchange between customer and company lasts longer than the original transaction. For instance, if a customer buys a product, has a fault, then has to return it. That’s one set of interactions all about the one transaction. The fact that it can last longer is nothing new, what has changed is the proximity of the customer and company. Now, the customer can submit a complaint online, they can spread the word via social media or they can ask for assistance on an online forum. This makes the customer and company a lot closer than before. The implication is that even if the customer has stopped buying from you and now buys elsewhere, their opinion will count forever.
Even though the customer has finished their exchange with your organisation, they are a still a person with memories and experiences. When they next come to buy, will they use your company or another?
Additional Customer Journey States
A further implication is in how we can design customer journeys to be more comprehensive and reflective of what actually happens. A depiction of the overall customer journey should include a state where the relationship is dormant and a loop for repeat custom (whether repeat of the original purchase or of a new product). The journey could be extended further still to show some of the customers leaving your company, probably from that dormant state and buying from a competitor. Some of these will return, some not, but all of their opinions will count.
Hopefully these two ideas will help you handle the fact that the customer journey never ends, at least from the customer’s perspective.