Archive for May 2012

It’s not hard until you’ve tried

Posted May 31st, 2012

It really isn’t that hard.

Asked to make a small change that feels undoable? It’s probably simple…

Asked to design a new feature that you think is too difficult to integrate in your app? Think again. Maybe it will groove just fine…

Ever thought, “I’m sure this code is complicated, so I’ll let my coworker (who probably wrote the code) take care of it”? It probably isn’t complicated…

Ever shied away from learning something because it’s not “what you’re good at”? You’d be surprised…

Ever had an idea of how to change something within your company, but were daunted at the thought of “changing” something? Change is easier than you think…

Obviously not everything is easy. But not everything is hard either. Most importantly, don’t let what appears to be “hard” get in the way of trying something new or accomplishing a goal.

What do you want to own?

Posted May 24th, 2012

On the 2nd day of my first full time job out of college, my boss sat me down and asked me this, “What should we own?”

I was a little confused and wasn’t sure what he meant.  He proceeded to explain to me a concept that has stuck with me to this day.  That concept is this:

Every company within a given market space owns something (whether that is intentional or not is a whole separate blog post which I will get to at some point).  What I mean by this is that every company has words or short phrases that define who they are.  This concept is commonly known as the word association game.  So, if I say, “Nike,” what is the first word that pops in your head?

So I went through the exercise of giving one or two words to every competitor within our space.  My boss then said, “Great!  Now what should we own?”

At first glance one would suggest that you want to own what your competitor owns because that is the quickest way to turn the tables.  I would contend that going with that strategy is often detrimental to a young company, especially if you are going into a space with a well-defined market and established competitors.  The reason being is that it will take a ton of resources (money, time, people) to overtake that established company.  You will always be compared and identified with that larger company as trying to own the same thing.

Instead, I would suggest that you find your own couple words to own. Let those words reverberate throughout everything your company is and everything that you market to the world.  With every decision you make you should look back at those two words and think, “Does this get me closer to owning that space?”  The better you can become at making those words identifiable with yourself, the better people will remember you and the more you will stand out from the competition.  Then, you will be able to take on those well-established competitors because you aren’t the same as them.  You are different.

A great example of this exercise can be demonstrated when we look at how Indianapolis has really become one of the top cities in the country.  At the time of the Super Bowl I watched a documentary that showed how Indianapolis has evolved into a city that could host an event such as the Super Bowl.  The thing that stuck out to me is that Indianapolis was a city with no real identity, especially when you compared it to the competition of larger cities in the MidWest.

Indianapolis choose one simple word that defined who they were going to be as they tried to change the city: Sports.  And even more specifically: Amateur Sports.  Some thought this seemed crazy and many thought this was ridiculous that Indy would try to identify itself this way, but when you look at the major city landscape, no city had really tried to own this before.  Today, Indianapolis has been deemed by others as the “Amateur Sports Capital of the World.”
And that all started with just one or two words that were different.

So go.

Define your competitors.
Define yourself.
Breathe life into those words.
Reap the rewards.

The MVP Reading List

Posted May 21st, 2012

I regularly get asked for book references. From employees new to DeveloperTown, to founders who walk in the door and aren’t sure where to start, to people who look at what we do and how we work and ask how we figured all that stuff out. Some of it we figured out, much of it other people figured out and wrote down. We were smart enough to read it, apply it, and adapt it to the way we work. You can too.

Here is my take on the books that best capture how we think about product development. At DeveloperTown we’re big on iterative development (or as Ries puts it – small batches), customer development, validated learning, clean and simple design, and clean and simple business documents. The following books have been very influential in how we build our products:

The Lean Startup, Ries
The Four Steps to the Epiphany, Blank
The Entrepreneur’s Guide to Customer Development, Cooper and Vlaskovits
Business Model Generation, Osterwalder and Pigneur
Rework, 37 Signals

Because we often aren’t just building products, but are also helping founders build companies (and sometimes building them ourselves), I also recommend the following to help navigate venture capital, starting to understand what it’s going to be like working with investors once you get their money, and building and running a business:

The Art of the Start, Kawasaki
Venture Deals, Feld and Mendelson
Traction, Wickman
Founders at Work, Livingston

When it comes to the specifics of building our software, we use our own flavor of agile development – but in it’s early days it was strongly influenced by Scrum. We develop primarily using Rails and an army of controlled but ever-changing frameworks to go with it, we do everything in the cloud, and we test constantly (much of it automated, some of it manual, a bit of it with users). For those who want to know more about our development methodology and where it comes from, I recommend:

Lean Software Development, Poppendieck and Poppendieck
Agile Software Development with Scrum, Schwaber and Beedle
User Stories Applied, Cohn

That list doesn’t really touch on some of the development and testing principles, but that’s just because I’m not really aware of any good books out there that capture those concisely. I could recommend a bunch of books from The Pragmatic Bookshelf, and each of them would have a piece of it. But my experience is that much of that knowledge is captured in blog posts, on forums, and in the rich debate that happens between team members when they go to solve a problem. We post about some of those debates occasionally.

Finally, if you’re responsible for getting software out the door, there is another list you might be interested in. It’s the list on getting things done, managing the process, and shipping great software – some of the best works on project management I’ve read (and I’ve read a lot on the topic):

Ship It!, Richardson and Gwaltney
Making Things Happen, Berkun
Manage It!, Rothman
Release It!, Nygard

Some project managers may look at that list and say Release It! doesn’t belong there. They are wrong – it does. On small/agile projects, if the person leading the project isn’t constantly thinking of those things, then it’s very likely that no one is. For us, project management is the art of alternating between the strategic and the tactical, balancing tradeoffs, and communicating progress. To do that, you need to be knowledgeable (not expert – just knowledgeable) about all aspects of the product.

As they say in business, it’s all about risk, risk, risk

Posted May 14th, 2012

The three most important factors in creating a business? Risk, risk, risk.

If you try one, JUST ONE, thing that is “lean startup-ish”, try thinking about your startup purely in terms of risk. Sure, Eric Ries taught us about validated learning and Ash Maurya has shown us how to learn from problem interviews and solution interviews. There are lots of tools out there for the lean startup crowd. But the question remains, how can I get started?

By focusing on risk. The principle that both of these entrepreneurs share is that a startup must work hard to minimize risk. Validated learning, customer interviews, lean canvases, innovation accounting…in the end, these are all tools for reducing risk in a startup. Here’s why: the biggest risk in a startup scenario is that we’re DEAD WRONG about our idea and its place in the world. So tools are invented to keep ourselves accountable to the real world.

I’ve been recently pursuing an idea to help K-12 teachers communicate better with parents. I don’t have 40 hours a week to spend on this, and it’s a one man team until there’s validation of the idea. As a result, I need a simple, clean plan for testing my idea. Here’s the process I followed:

Brainstorm Risks

There are a couple facets to my app: it requires parents to sign-up, teachers must produce content, and schools need to pay. Based on these few facts, I came up with the following list of risks:

- Parents and teachers must find value in the app.
- Schools must be willing to pay for the app.
- Parents must voluntarily sign-up to receive communication.
- Teachers must be willing to try the app.
- Schools/teachers must populate the app with student data.

Prioritize the Risks

I then prioritized the risks based on two factores: the degree of risk and timing. The riskiest items must be worked on first. But just as important, I needed to account for timing: which risks do I have the resources to tackle NOW? Based on these two questions, here’s the prioritized list:

1. Parents must voluntarily sign-up to receive communication. (There’s no point to the app otherwise!)
2. Parents and teachers must find value in the app. (Who cares who pays or how many teachers try it if no one values it?)
3. Teachers must be willing to try the app. (I need teachers to voluntarily start using the app.)
4. Schools must be willing to pay for the app. (Extremely important! But I want to test the product before I have to wait 3 more months to get product feedback again.)
5. Schools/teachers must populate the app with student data. (Eventually, but not NOW, I need student data to be populated without me spending hours prodding teachers to do it.)

Often times, the greatest risks are that you’re building something people value and that people will pay for it. Or maybe you’re inventing new technology, and the risk is that it can be done affordably. Or it could be that you need to secure patent rights. But, SaaS products (software as a service) tend to see the same reasons for failure: a poor value proposition or insufficient revenue.

Create a Plan to Mitigate the Risks

In my most unemotional state, I can now view my business as a combination of those 5 risks. If I’m able to mitigate them, then the business should succeed and the money should roll in. But, how do I work towards eliminating these risks?

This is where your planning powers play a role. You must make predictions about what to expect if you’ve effectively mitigated a risk. For example,

If I can onboard 25% of parents for ONE class at ONE school, then I am confident enough to move on to the next risk.

Here’s the kicker: the first few months are more about instilling confidence in my idea rather than scaling a real business. That’s why the 25% number is fairly low and I’m only testing with ONE class. If I can’t meet this challenge, then I need to reset, find a new class, and/or improve my onboarding process.

My second risk is tested in this manner:

If teachers send 20 communications per week to parents, and parents read 75% of them, then I am confident enough to move on to the next risk.

And so the pattern continues, until I have enough confidence to take the business to the next level…

Kicking Sprint Reviews to the Curb

Posted May 11th, 2012

User Stories Suck for the Last Mile

Yeah, that’s right. I said it. User stories suck for the last mile. What’s the last mile you say? It’s a term borrowed from my telco days, when Sprint had a U-verse-like offering that was way ahead of its time and you could only get in Kansas City. It was awesome. But it died, because getting the last mile of networking was proving to be too expensive. The last mile, in this case, was the distance between Sprint’s closest network terminal and your house.

For user stories, the last mile is the distance between the story being functionally complete (i.e. everything works as expected) and accepted (i.e. and it looks the way I want it too). It is often a long list of layout and style changes like “left-justify X” and “make the margins line up between Y & Z”. These changes are often hard to communicate via written words, but more importantly the delay between feedback and development is too long and, since the changes tend to be small, the cost of switching tasks between all the stories that need tweaking can be pretty spendy.

Sprint Reviews Can Make This Worse

If most of your feedback collecting occurs at the sprint review, this only becomes worse because the person recording comments is frequently not the person giving feedback. Usually, one team member takes notes while the other team member demos stories and the product owner(s) discuss changes. As a result, you create this huge backlog of bugs, tweaks, chores, or whatever you call them that you do prior to the stories being accepted and you starting new ones.

Years ago I started a practice of implementing as many of the tweaks as I could immediately following the sprint review while they were fresh in my mind, but it’s still not optimal. Why?

Because the sprint isn’t finished. We walked out of the sprint review with more stuff to do prior to the stories being accepted. This is a bit discouraging, especially if even more problems are found after the initial round of tweaks go in. If you end up going through cycle after cycle of tweaks, discouragement turns into frustration.

“Peer” Programming Works

About two months ago I gave up on sprint reviews. Instead, when I finished a story I simply skyped at my product owners that I was done, even before I pushed my code or marked the story delivered. I shared my screen with them, gave a demo, then they would just type changes at me in Skype, which I would implement in real time. Because we were using IM and screensharing, they could keep doing other stuff while I made the changes. When I was done, I’d IM them back and we’d start over. After a while, the feature was done. I’d push the code, the CI server would update test, they’d give it a final run through and accept the story. Piece of cake.

I call this peer programming rather than pair programming just because only one of us is actually programming, but the peers are giving feedback in real time. It’s very, very efficient, and we haven’t had a sprint review since we started doing this.

Take It Up a Notch for the Big Event

Earlier this week I spent three days onsite “peer programming” with the product owners. We set up shop around a table in the Developer Town offices with my second monitor where everyone could see it and went through the application one feature at a time tweaking features prior to ‘soft’ launching the new product on Wednesday afternoon. It was exhausting, but the end product is totally awesome.

This kind of pre-launch peer programming is a perfect way to efficiently get all the little details right. It’s very effective communication because the feedback loop is super short and the people with questions and answers are together. It’s a lot better than a sprint review because, among other things, the story gets accepted at the end of the session.

Making it Productive

Here are some pointers for making peer programming work well:

  1. Have the product owner verify that features are “functionally complete” prior to the peer programming session. They can make sure the workflow is working in a relatively bug-free manner so that the changes that are left are going to be primarily small changes to the design and layout.
  2. Use developer-tools to make CSS changes in real time, then copy them into your code once the change you are making looks right. This minimizes the amount of time between code change and feedback (you don’t even have to refresh your browzah).
  3. Peer program as soon as a story is functional. That way, your mind is still in the code and you don’t have to re-acclimate yourself. This has the added benefit of avoiding a deliver-reject-restart cycle, which is a bit demoralizing.
  4. Take breaks when you need to. Peer programming is tiring, so step away from it every now and then if you are in a marathon session of it. If you get worn out you will also get stupid.
  5. Crack some jokes and don’t get all mad. Peer programming can be hard for a certain type of person. You know who you are. You don’t like criticism and every little change is a personal attack. You’re in the wrong business. Okay, seriously, there aren’t many people like that and most of them work in corporate IT environments, but  it’s easy after really long peer programming sessions to start getting frustrated and worried that you’ll never get it right. Just take a deep breath and hang in there. Slog on through, and try to crack a joke or two if you start feeling defensive.

Peer programming throughout a sprint is definitely more effective than using a sprint review as a periodic feedback point. If you can’t get your product owner to review stories during the sprint, just replace the sprint review meeting with a peer programming session and get through as many of the stories as you can. When you run out of time, schedule some more time. Wait – we just said they didn’t have time during the sprint – why can we schedule it now? Because peer programming is something most product owners will really like. They get to see the site change in real time and find lots of value in this. Everybody can find time for the things that matter to them, and once product owners get it they will free up time.

Sprint Reviews without Demos

So, we just kicked sprint reviews to the curb, but should we really abandon them altogether?

Maybe. It’s very easy for demo-less sprint reviews to become meetings with high ceremony and low value. It’s probably better to not have them than to have those types of sprint reviews. I would only hold a sprint review if there are meaningful issues to be discussed, and then I would plan retrospective activities to help work through the issues. Rote sprint reviews are a waste of time. Make them meaningful or toss them.

 

Things you know but never thought of…

Posted May 8th, 2012


Customers. We all work everyday to gain new ones, retain current ones and hopefully gain knowledge from them on how to make our products better to fit their needs.  Once we take this simplistic concept and actually execute on it, we then look to how we present our product to the consumers. We learn that there is a difference between feature and benefits. We learn that a feature that might be meaningless to the end user could provide entrée to multiple benefits that either make their lives easier or happier or both.  In order to make that happen, we need to define our customers. We need to know our market and how we can provide what that market needs/wants better than anyone else.

Today, I want to talk about who your customer really is. (I will tell you right now that this discussion is aimed at all companies that have employees.) When I ask this next question it can sometimes feel like a trick question or a trap. The reality is that it’s meant to make you think: to possibly shift how you might view your customer, or even better, shift your understanding of who your customer really is.  So here is the question, “Who is your primary customer?” Wikipedia defines a customer as

“A customer is the recipient of a good, service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or other valuable consideration.”

I agree with this definition and want to ask you again, “Who is your primary customer?” if you are like most, you will be thinking about who might be paying you the most or who might be taking most of your time. Today, I want to challenge you with the concept that your EMPLOYEES are your number one customer. Now, I guarantee you this will cause some debate but here is my personal view, one that I gained from not looking at my employees as my number one customer.  Every time you hire a new employee you are looking for a target personality, someone that fits you your need, but the one being hired is also looking for something that fits them and their needs. So let’s think about this. The one that you are about to hire is about to be “the recipient of a good, service, product, or idea (vision), obtained from a seller, vender, or supplier for a monetary OR other valuable consideration.” The OTHER in this statement is simply their time, their valuable life: a limited commodity that can not be given back. Honestly, I don’t think either side really thinks about work this way, but they should.

Now that we understand that those that you hire are purchasing what you offer with their life, their time! Let me ask you this, what product do you offer? Have you ever thought about productizing your values, mission, vision and comp plan? If not you leave yourself open of have employees with expectations that they define because you haven’t. We all know what happens when we have clients with unrealistic expectations… if never turns out good! So what do we do with this?

Define your Product:
Take your mission, vision, values and comp plan and present it to your future hire as a product with a clearly defined feature list resulting with benefits.

Value your customers:
Highlight what makes your services better than any other provider out there!

Get feedback from your customers:
Freaking listen to your employees!

Refine your product:
If your product is the same it was five years ago, I would argue you’re not listening and you’re not progressing

I guarantee that those that establish this mindset and set their employees as their primary focus will find that their secondary client (the paying ones) will be taken care of very nicely.

For those of you that are employees right now and reading this, thinking this is your anthem… understand that there will be a post coming just for you! You’re not off the hook just yet! Until then, let’s discuss!

PS: If you would like to know what the picture has to do with this post, ask me in the comments.

“The Rise From The Middle” Why Indianapolis is the place to be… Even over California!

Posted May 1st, 2012

“Seriously?! You chose to move to Indy from California?” That is the first question I usually hear when I tell people that I did choose Indy over California just one month ago.

“Why!?” is the next question followed by

“Were you dropped on your head as a child?” which of course I answer with, “Yes, but that has nothing to do with it!”

To quickly explain, well that all depends on how fast you read, this is my story as to why I am here at DeveloperTown @DeveloperTown . (If you could care less of my story and just want to get to the facts of why I believe Indianapolis is by far the better place to be over California when it comes to the startup community, CLICK HERE)

Here we go…

I was born and raised in Napa Valley and I worked in the wine industry for a good amount of time.  Just so you know, I am game to talk wine with anyone that is a wino like me. I was raised around technology and was involved with some startups out of the Bay Area but never saw myself as an Entrepreneur. I loved people, leadership, process, and making things more efficient. If you were to ask me 10 years ago what my dream job was, it was being a camp director and surf instructor for the rest of my life… FYI, that didn’t happen.

About three years ago, I was provided the opportunity to raise money to purchase an account that I was managing from a company that I worked for and start a new company. Honestly, I had never raised money, I didn’t have aspirations of running a company, and I was a Communications major in college… enough said. I wrestled with this opportunity and realized that the biggest mistake I could make would be allowing fear to define my path in this life. With the support of many amazing people back in California and a supportive wife, I was able to raise $2.5m , acquire the account, and close the deal in less than 90 days. Over the next 45 days we went from 3 to 25 employees and within 10 months we grew to become a multi-million dollar company with offices in California and here in Indianapolis.  Last year I brought my family out to Indiana for what was supposed to be a 3-month stint and 14 months later I am still here!

I came to Indy to work with the office here and to better understand what this city had to offer. This is what I learned. Note that in the next couple paragraphs I am not name dropping but more giving shout outs to those that made the decision to choose Indy easier.

My family and I set our feet on Indiana soil three days before the epic ice storm of 2011. I have videos of using a hammer to clear the ice just to get into our offices! We wanted to go back home but I wasn’t going to let the weather deter me, I was interested in something more, interested in finding the TIPPING POINT. I had a strange feeling that Indy was gearing up to see a huge TIPPING POINT. (I will come back to this TIPPING POINT) So typically when I come to a new place I always want to know the people, the hearts of those people, and really see what drives the local community. One of the first people I met was a gentleman by the name of Greg Downey @greg_purim. Now Greg is a guy that you want on your side, one that could seriously hurt you if he wanted to, but he has a huge heart and a passion for startups,  a passion to connect people and a passion to help others succeed. Greg then started to introduce me to many people in Indy like Jeff Kirk of Bingham Greenebaum Doll LLP (who was a rock star for my company with a couple tough legal issues and has also introduced me to an amazing group of minds here in Indy), led me to Aaron Nelson @asnelson (who is an Indy native but is rocking it now at Google with Double Click), Michael Cloran @mecloran (a local rock star when it comes to innovative thinking) and last but not least Christopher Day and his brother Stephen, which if you don’t know the Days, your life is no where near where it could be on the fun scale of life.

Side Story: I get a text from Jeff Kirk and Chris Day asking if I would like to go “surfing”. As you can imagine I thought this was a joke and I was instantly home sick. But to my surprise, they were totally serious! So last summer these wonderful guys took myself, Chad Ashcraft, Matt Toyer, and Kelly Hendricks @blastkelly out to wake surf on Geist! Epic epic day, so good for my soul and just so you know both Matt Toyer and Kelly Hendricks are pros at wake surfing!

Through this group I was also introduced to a couple city officials and was given a great view of how the local government is really supporting the local businesses and especially startups. For those of you that don’t already know this, you are all freakin blessed! My local government in California basically kicks the small business out and provides very little support. All of this was a 45 day ride for me that brought me to the conclusion that Indy was where I needed to move my company… all of it. Now some of you might know that even if you are a CEO, it doesn’t mean you call all of the shots.  I pushed for about a year and as of a month ago the board decided to close the Indy office and move everything back to California.  The board wanted me to move back California. I can tell you a year ago this would have been a hard decision, but last month, it was a five minute decision that went like this, (in summary of course)

“Coffey we would like for you to come back to California”

My response, “Hold on one second… hey love (that’s my wife), they want to move everything back to California and for us to go back as well. I personally think Indy has the TIPPING POINT FACTOR and it’s time for us to place our stake in the ground here… you ok with me resigning and selling off my side of the company so we can stay here for a while?”

Wife’s response, “do you really believe this is the place?”

Me again, “YES!”

Wife, “then do it!”

Me again, “hey board, I will help you through this transition but I am staying here.”

As you can imagine, this was a huge step of faith for us and at that time I did not have a plan as to what we were going to do. As the story unfolded, on a Thursday night I let my contacts here know I was staying.  Friday morning Cloran asked me to come down to DeveloperTown to talk with him and some of the team (Shout out to Mike Kelly goes here).  One week later I decided to come on board and I will tell you that I could not be happier and from my vantage point, I could not be in a better position to be a part of the TIPPING POINT that will happen here in Indy.

So let’s talk about this TIPPING POINT. Here is what I see:

Growth in Mindshare deciding to stay – I can’t tell you why or how this happens but it’s one of those macro economic shifts that you can see when a generation leaves for the coasts, gains amazing experience, and then decides they want to come back home. If you look around this city you will be able to list names of people here that have done this and have started companies that are now attracting young minds to stay after college.

Deal Flow – because of the above, the amount of deals and extremely good ideas that I have seen here over the last year has convinced me that Indy has a huge potential to make a name for itself in not only measured marketing but also in tech. Simply go to a Verge event, follow Matt Hunkler @hunkler and you will see what I mean.

Desire for a shift or diversification in investments to happen – We are seeing more and more investors want to diversify their portfolio into the tech space but are looking for ways to verify the options. We have some great IPOs which will birth new young investors that understand this space. We need to keep both the ideas and the money HERE!

Cost of living – I must say that the quality of life due to this is amazing for someone coming from California. This is extremely attractive and Indy is proving that it’s a city that can be enjoyed. Once again, hats off to the local community and government.

Family Focused – Hands down one of the best places to raise a family.

In short here is the map that I see:

Due to Mindshare coming back we are seeing great IPOs take place which will infuse capital that can be used as startup fuel which will keep the mindshare needed to grow this city!

Now here are my concerns. Even though people are getting excited and these shifts are starting to take place we still need to find a way to fund companies in between the friends and family round and “A” round founding. This needs to happen quickly.

I do love seeing people like Chris Day trying to rally with individuals to do this. I love seeing new companies like LocalStake @localstake focusing on crowd sourcing. (By the way, the guys over at LocalStake are great guys and if you don’t know what crowd sourcing is… look it up now!) BUT I also am seeing some of your big VCs on the coasts start to focus on this level of investment in cities like Austin, Denver, Boston, Atlanta, and even Indy.

With that said, I believe that this city has what it takes to really be a hot hub for startups. I believe in DeveloperTown and the team that exists within these houses. I believe that both the startup entrepreneur and the investment community need a solid accelerator and development house like DeveloperTown that focuses on guiding startups through the pain of building a tech company from concept to market push. I believe in our local government and its support, which we just saw last week as Mayor Ballard spoke here on his view of 2012 for our city. I believe in all of us!

So as I was driving home last night, a great song by Jon McLaughlin @jonmclaughlin called Indiana came on my Pandora station. If you haven’t ever heard the song, it’s worth the $.99 but there is a line that simply says, …”It’s probably best I stay in Indiana”. Three weeks ago I said, it’s probably time I set my stake in Indiana. I will tell you that since I made that decision, I have not been more excited for this city.

Rise From The Middle!

*disclaimer – if I didn’t mention you and you know you have been influential in my life, don’t worry there will be more blogs! Seriously, Kyle @kyleplacy and Mason @jmasonhughes you will get love very soon in your own blog!:)

Coffey @coffeyhouse

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