Tag Archives: leadership

Why Failing Fast Can Help Your Business to Succeed

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Failing fast is probably the last thing you would want to do. As human beings, we are terrified of making mistakes and losing the game. 

Fail-fast is a philosophy known to entrepreneurs, especially those who are in the software industry. It is also often associated with widely used product development methods (ever heard of Agile, Waterfall, or Lean?)

To fail-fast is to test all the possible approaches and solutions when developing new products or services with less financial risk. As a result, you can avoid the possibility of a larger failure after investing all your time, energy, and money on one project.

But many people are afraid to pursue the fail-fast concept. This could be due to the “sunk cost bias”. In business and economics, sunk cost refers to “any cost that has been paid and cannot be recovered” regardless of the outcome in the future. 

The sunk cost bias is a person’s tendency to continue investing in a losing proposition because of what it has already cost him.  “People may give in to the sunk cost bias because they value their hard work or they don’t want to be wasteful,” says Professor David Jarmolowicz of the University of Kansas in Lawrence. The goal of fail-fast philosophy is to avoid this mindset. 

Fail-fast is not just a philosophy but also a sound methodology that can drive great transformation to your business. And here’s why. 

Pivoting 

Pivoting is common in the world of start-ups. This occurs when a company decides to make a significant change to their business strategy or model because their product is not meeting the needs and requirements of their target buyers. The change is not always drastic, other times it can be mild such as focusing on a new set of target customers or changing the platform (for instance, from app to software or the other way around). That being said, pivoting is still not an easy move for some entrepreneurs. 

People who can’t accept their mistakes and failures may find it hard to swallow the truth – that their business has failed. Negative emotions and pride can get in the way. And instead of pivoting to Plan B, they become depressed and unable to move on to the next action plan.

According to the CB insights’ Top 20 Reasons Startups Fail, the primary reason start-ups don’t succeed is due to the fact that there is no market for their product! In the competitive world of business, whether you are a start-up or not, time is very valuable. The sooner the company realises their failure, the less time, money and effort wasted. 

Failing faster also prompts After-Action Reviews (AAR), allowing people to determine right away what happened and why. This helps the company to address the problem immediately before they realise it’s too late for the big shift. 

Advanced Methodology

Even though it is already 2019, many companies are still using the traditional approach or the “waterfall” project management method. Waterfall is a linear-sequential life cycle model, which consists of several discrete phases and requires you to complete each stage of the model before proceeding to the next phase. 

The Waterfall model is a simple, straight-forward approach. However, because each stage is terminal and dependent on the previous stage, you cannot proceed to the next stage unless the previous one has been successfully completed. In addition, the time of release for large projects is exceptionally lengthy and making changes during product testing can be a real headache, both in time and money. 

Agile method, on the other hand, is iterative, which means the project is done in pieces or “sprints”. These small steps are an ongoing process, allowing constant communication and feedback between developers, testers and customers. The client and the team know exactly what’s been happening in each iteration; Thus, the method reduces risks in the development process.  

The first principle of Agile Manifesto states:

Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.

Therefore, if the company discovers quickly that their customers are not happy with their product they can use that feedback and make quick changes to address the possible problem.  The earlier errors are detected, the faster they are to fix and the lesser the cost of failures will be.

Lean Start-up

Just like Agile, the Lean Start-up is another method that moves away from the traditional approach. Lean was first introduced by Silicon Valley entrepreneur Eric Ries in 2008. His book The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Business is a perfect source to learn all about the Lean Start-up method and its philosophy. 

But how does Lean differ from traditional methods? Traditionally, entrepreneurs are used to creating multi-year business plans and spending a lot of time and money to build products without ever knowing if those products can really meet the customers’ needs and solve their problems. With Lean Start-up, the goal is to launch a simple version of the product (also known as the minimum viable products or MVPs), market this product, evaluate customers’ feedback and adjust the product based on the customers’ feedback (pivoting). 

“As you consider building your own minimum viable product, let this simple rule suffice: remove any feature, process, or effort that does not contribute directly to the learning you seek.” (excerpt from Lean Start-up book by Eric Ries)

The method of Lean Start-up can help you determine whether to improve your product and identify your customers’ expectations. By testing and getting customer feedback, it can help you save time and money throughout the process of developing your product. Aside from this, it can help you build customer loyalty in the future, which is essential for the success of your business. 

 

If you cannot fail, you cannot learn. — Eric Ries

Fail-fast is not about focusing on failures but to look at failure differently. Treat your failure as a great opportunity to improve your customer satisfaction and build superior innovations. The goal here is not merely to fail but to fail faster so you can also rise and succeed faster. 

Interested to learn more about how Fail-fast philosophy can help your company? Hear it from our Agile experts at Life Intelligence Group. For more information, visit our website: https://www.lifeintelligencegroup.com.

The History of Agile Methods and Innovations

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In the early 1900s, IT experts could take dozens of years to develop a software computer. Then came Agile, and the world of Information Technology became a much, much better place.   

The implementation of Agile methodologies has then revolutionised the way software developers and industry leaders design and build products for their clients. Unlike traditional methods, Agile makes the development process faster and easier, and of course less frustrating than before. 

Image from Pexel

But did you know that the origin of Agile started outside of IT? In this brief but detailed history of Agile innovation, we will get to know more about the pioneers of Agile methodologies, the practices that yield a foundation for this approach and how Agile Manifesto was created. 

Are you ready to travel back in time and discover the long yet colourful heritage of Agile? Here we go. 

1930s: The “Plan-Do-Study-Act” Cycle

In the 1930s, the physicist and statistician Walter Shewhart of Bell Telephone Laboratories proposed a series of short Plan-Do-Study-Act (PDSA) cycles. PDSA is an iterative and incremental-development methodology and involves a four-stage problem-solving model which is used to improve a process or execute change. 

The iterative and incremental-development methodology are key practices in Agile. This approach works by breaking projects into pieces instead of delivering them all at once near the completion. It uses user stories and prioritising them continuously, usually a one or two-week cycle called iterations or sprints. 

Shewart shared PDSA methodology to his mentee, W. Edwards Deming. Deming used PDSA extensively in Japan and was hired to train several Toyota managers. His expertise in the PDSA cycle leads the company to develop the famous Toyota Production System (TPS), which is known as the primary source of “lean” thinking that many organisations are still using up to this day.   

Deming published the PDSA cycle in The New Economics in 1993. He also renamed it the “Deming Cycle”. Each stage of the Plan-Do-Study-Act cycle comprises the following actions:

   Plan – plan a change or a test, aimed at improvement

   Do – carry out the change or the test (preferably on a small scale)

   Study – study the results. What did we learn? What went wrong?

   Act – adopt the change or abandon it, or run through the cycle again

The incremental and iterative development methodologies were also used to create the X-15 hypersonic jet in the 1950s.

1960’s: Evolutionary Project Management 

Evo, short for Evolutionary Value Delivery, was considered by many Agile experts as the “original” agile method. Tom Gilbs originally used it as a project management method back in the 1960s, both personally and through clients. Evo focuses on “delivering measurable multiple value requirements to stakeholders” and recommends two-week iterations that focus on the delivery of product each iteration.  

The principles of Evo, which are detailed in the Systems Engineering Conference paper, are as follows:

E1: Decompose by performance results and stakeholders;

E2: Do high-risk steps early, learn how ‘unknowns’ really perform;

E3: Focus on improving your most valuable performance objectives first;

E4: Base your early evolution on existing systems and stakeholders;

E5: Design to cost dynamically;

E6: Design to performance dynamically;

E7: Invest in an open-ended architecture early on;

E8: Motivate your team by rewarding results;

E9: Prioritize changes by value, not place in queue;

E10: Learn fast, change fast, adapt to reality fast.

1986: The New New Product Development Game

In January 1986, Hirotaka Takeuchi and Ikujiro Nonaka, both University professors, published an article in Harvard Business Review called The New New Product Development Game. In their article, they discussed the analogy of rugby game as a new way of developing produpcts and delivering projects. 

Instead of following the traditional “relay race” approach, where one group passes its completed phase to the next group of functional specialists, they proposed moving towards the team-oriented “rugby” approach. According to Takeuchi and Nonaka, the rugby approach is “where a team tries to go the whole distance as a unit, passing the ball back and forth.” The rugby approach is a holistic method that focuses on six characteristics:

  • built-in instability
  • self-organising project teams
  • overlapping development phases
  • multi-learning
  • subtle control
  • organisational transfer of learning 

Scrum, a popular and widely used agile framework, is inspired by this approach

Image from Pexel

1990s: The Emergence of Various Agile Methodologies 

The 1990s marked the proliferation of various Agile methodologies such as Crystal Framework, Scrum, Dynamic System Development Method (DSDM), and Extreme Programming (XP). 

Crystal Framework in 1992 – created by Allistair Cockburn, the Crystal Framework focuses on people and their interactions rather than processes and tools. Cockburn defines Crystal as “a family of human-powered, adaptive, ultra-light, ‘stretch-to-fit’ software development methodologies.” He believed that when working with a project, skills, teamwork, and communication have the biggest impact on the outcome of the project. 

Scrum in 1993 – Inspired by Takeuchi and Nonaka’s rugby approach, Jeff Sutherland created a new way of developing software and called his method “Scrum”. Using Scrum methods, Sutherland could finish his projects on time with fewer issues than any previous release. In 1995, Sutherland and his colleague Ken Schwaber officially presented the Scrum method to the public. 

Dynamic System Development Method (DSDM) in 1994 –  known as the predecessor of the agile project management, DSDM is an agile methodology that uses an iterative approach to software development. It is largely based on the methodology of Rapid Application Development (RAD) and is built on four principles: (1) feasibility and business study, (2) functional model and prototype iteration, (3) design and build iteration, (4) implementation. 

Extreme Programming in 1999 – Extreme Programming or XP is an agile project management methodology created by Kent Beck, the Lead Software Engineer at Chrysler Comprehensive Compensation System (C3). XP is considered as one of the most popular agile methods because of its proven success at many companies and its focus on customer satisfaction as well as an emphasis on teamwork. XP also uses a very simple set of rules that are based on sound values and principles: planning, managing, designing, coding, and testing.  

Image from Pexel

2001: The Gathering in Utah and the Agile Manifesto 

The creation of Agile Manifesto had its own interesting backstory before it became the most popular software development manifesto we have known today. It all started when seventeen developers, which includes Alistair Cockburn, Jeff Sutherland, Ken Schwaber, and Kent Beck, met and gathered in Snowbird, Utah, for a three-day retreat. 

The working session had two main objectives:

  • Each person will present to the group his lightweight method approach to building software
  • Discuss the surge of heavyweight methods and how to address them

A lot of things happened during the working session, and one of these was the decision to change the “lightweight” terminology with “agile”, which was suggested by one of the attendees who read the book “Agile Competitors and Virtual Organizations: Strategies for Enriching the Customer”.  In full agreement, the term “Agile” became the new name for the movement, and then the Agile Manifesto was written with the following four key values:

  • Individuals and interactions over processes and tools
  • Working software over comprehensive documentation
  • Customer collaboration over contract negotiation
  • Responding to change over following a plan

“At the core, I believe Agile Methodologists are really about “mushy” stuff—about delivering good products to customers by operating in an environment that does more than talk about “people as our most important asset” but actually “acts” as if people were the most important, and lose the word ”asset”. So in the final analysis, the meteoric rise of interest in—and sometimes tremendous criticism of—Agile Methodologies is about the mushy stuff of values and culture.”, (excerpt from the history of the Agile Manifesto.)

2011: Scaled Agile Framework

The Scaled Agile Framework methodology (or SAFe for short) is created by Dean Leffingwell, the Chief Methodologist at Scaled Agile Inc. and the author of the best selling book Agile Software Requirements. SAFe is developed for teams and large organisations to help them become flexible and manage the challenges they have when practising agile; thus it is built on three pillars: 

  • Team
  • Program
  • Portfolio

The latest version SAFe 4.6, which was released last October 2018, introduces the Five Competencies for Lean Enterprises: Lean-Agile Leadership, Team and Technical Agility, DevOps and Release on Demand, Business Solutions and Lean Systems Engineering, and Lean Portfolio Management. Up to this day, SAFe is still one of the most popular agile frameworks and prides itself as the world’s leading framework for scaling Agile across the enterprise.

The business changes. The technology changes. The team changes. The team members change. The problem isn’t change, per se, because change is going to happen; the problem, rather, is the inability to cope with change when it comes.— Kent Beck

Today, Agile is still one of the best methodologies used by many organisations, including Fortune 500 companies. Agile is not only a framework that consists of Scrum, Kanban, and XP, but foremost it is also a mindset that can be learned through coaching, mentoring or using an agile productivity tool.  At Life Intelligence Group, our products and services are grounded in the principles of Agile. We believe that being agile not only starts in the workplace; it can also start at home. And it starts by changing our old habits, having a growth mindset and sticking to our goals until we achieve them. 

Transitioning to Agile? We’ve got you covered! Our Agile experts at Life Intelligence Group can train your company and employees in the Scaled Agile Framework for a smooth and successful transition. Our courses also help you to apply Agile practices at home and build an Agile Mindset for a more productive, stress-free life. To learn more, please visit our website: https://lifeintelligencegroup.com/

The Powerful Benefits of Embracing Transparency

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In general, being authentic and transparent takes a lot of courage. Not everyone can show their true motives or true self because of fear. Fear of judgments. Fear of being rejected. Fear of being less authoritative. And sometimes, fear of being manipulated.

Dalai Lama once said, “If you are honest, truthful, and transparent, people trust you. If people trust you, you have no grounds for fear, suspicion or jealousy.” Transparency is important – in industries, workplaces, and leaders. More than its significance, transparency is good, and we all need it. 

Here are some of the best reasons we need to embrace transparency and how it empowers companies and individuals.

Transparency in Leadership

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Authentic relationships can form. Being open makes you less intimidating and more approachable, bringing you closer to your team. You become more authentic and human than a robotic leader. Thus, allowing transparency to foster a healthy employee-employer relationship and a positive working environment.

People trust you more. Openness and honesty are powerful traits of being a leader.  You can’t expect people to trust you right away. You need to show them you are worthy of it. Building trust takes time, but the easiest way to achieve this is through consistent transparency. Transparency strengthens your leadership skills, promotes a healthier work environment, and better communication channels within the company.    

Leads to better decisions and solutions. Transparency can improve a leader’s ability to solve problems and make better decisions. This is also a key in maintaining high employee engagement. By being open and honest, employees can express their individual viewpoints instead of relying on a singular viewpoint. According to Andy Atkins, director of research and development at Interaction Access, “Employees want more transparency into decisions and more involvement in the decisions that affect them”. When employees are more engaged, they come to the office daily and work more productively. This allows leaders and employees to work together to make the best decisions and achieve a common goal.

Transparency in the Workplace 

Photo by Brooke Cagle on Unsplash

Fosters employee happiness. In one global study, management transparency has been identified as a top factor in determining employee happiness. Also, a survey from the American Psychological Association showed that only half of the employees believe their employer is open and upfront with them.  When employees work in a transparent and communicative environment, they can have better relationships not just with their colleagues but also with their employers.

Improves employee experience. Research from the Neuroleadership Institute reveals that transparency is a secret to improving the employee experience. This experience not only makes the employees motivated but also engaged in solving problems, creative thinking process, and collaboration. 

What does good workplace transparency look like? The Young Entrepreneur suggested five characteristics:

  1. Communication
  2. Honesty
  3. Regular feedback
  4. Respect
  5. Admitting wrong

Employees don’t quit their job. They quit bad bosses. The good news is that employers can avoid this by taking significant steps in creating a better workplace environment. By being open and honest, work can flow easier and problems are solved faster. Employees are driven to do their best and have more reasons to stay longer.  

Transparency in Life and Business

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Makes life and business easier. Being honest and open reduces the risk of misinterpretations and confusions. It’s easier to discuss with your colleagues and prospects when the things you say reveal what is really inside your mind. When people feel that you are transparent with them, you can naturally earn their trust and respect.     

Helps improve your services and boost customer loyalty. A recent study by Label Insight found that more than 97% of consumers surveyed are more likely to be loyal to a company brand that gives complete transparency. People are more confident in buying your products and patronising your services when they feel that you are true to your mission and goals. There are no shortcuts in attracting the right target market, but if you want this process to be easier and successful, start by being honest and transparent. 

Maintains a good reputation. Lack of transparency can have negative effects on your business, employees, and connections. Frequently neglecting or withholding information can be a bad move for your career, leaving an undesirable impression on the people who put their full trust in you. Transparency doesn’t only strengthen your company’s reputation, but also yours too! 

The single most important ingredient in the recipe for success is transparency because transparency builds trust. — Denise Morrison

Establish and Embrace Transparency

A transparent culture is good not just for business but also for an individual’s personal growth. This is where trust in yourself and from other people can come in. People like seeing and hearing the truth. They are drawn to transparent companies. They follow transparent leaders. They stay loyal to transparent industries. These days, being real and authentic can be challenging. But if you aim to succeed in your business or position at work, you need to connect to people on a human level and embrace true transparency. 

Learn more about transparency and how it can help you in life.  Talk to our expert coach today! Visit https://www.lifeintelligencegroup.com/ to reach us.