Archive for May, 2024
Why We Wait
We wait because we don’t have enough information to make a decision.
We wait until the decision makes itself because no one wants to be wrong.
We wait for permission because of the negative consequences of being wrong.
We wait to use our judgment until we have evidence our judgment is right.
We wait for support resources because they are spread over too many projects.
We wait for a decision to be made because no one is sure who makes it.
We wait to reduce risk.
We wait to reduce costs.
We wait to move at the speed of trust.
We wait because too many people must agree.
We wait because disagreement comes too slowly.
We wait for disagreement because we don’t subscribe to “clear is kind.”
We wait when decisions are unmade.
We wait because there is insufficient courage to stop the bad projects.
We wait to stop things slowly.
We use waiting as a slow no.
We wait to reallocate resources because even bad projects have momentum.
We wait when we dislike the impending outcome.
We wait for the critical path.
We wait out of fear.
Image credit — Sylvia Sassen
Why Hardware Is Hard For Startups And What to Do About It
Software may be eating the world, but the hardware elements of a startup’s work define when lunch is served.
Hardware takes longer than software. With hardware, after the product and its parts are designed, companies are vetted/selected to make the parts; contracts are signed to make the parts; the parts are made; the parts are shipped; the parts are received; the parts are inspected; and the parts are put in their locators. Then, the manufacturing process is defined, the manufacturing tooling is designed and purchased; the manufacturing documentation is created; the final test system is designed and built; and the parts are assembled into the product. Then, the product is run through final test and tested for robustness. After it’s learned the manufacturing process created too much variation and the insufficient robustness manifests, the manufacturing process and its documentation are changed to reduce variation; the parts that failed are redesigned, purchased, made, shipped, and received; and the next iteration of the product is built and tested. This process is repeated until the product is robust and the manufacturing process is repeatable. This is why hardware takes longer than software.
If the software is done but the hardware isn’t, the software must wait for the hardware and the customer must wait for the finished product. To get the hardware done faster, recognize that redesign loops are part of the game and invest in the capability to iterate quickly. Line up the suppliers to make parts quickly; keep utilization low on the support resources so they can jump on the work when it arises (think fire stations who can respond quickly when there’s a fire); and avoid part-time resources on the critical path. There may be other things to focus on, but only after taking care of these three.
Software may be eating the world, but the hardware elements of a startup’s work govern the cost of getting to the dinner table.
Hardware costs more to make than software. Hardware is made of steel, aluminum, injection molded plastics, and rare earth elements, all of which cost money. And because startups do things that have not been done before, the materials can be special (costly). And unlike software, the marginal cost of an incremental unit is non-zero. With hardware, if you want to make another one you’ve got to buy more of the materials; you have to pay people to make it; you have to buy/build the manufacturing system; you have to buy the measurement systems and engineering infrastructure; and you have to pay people to break-test-fix the product until it’s ready.
What’s a startup to do?
To do hardware faster, focus on learning. And to do hardware more cost-effectively, focus on learning.
For both time and money, learning efficiency is a good starting point. The most efficient learning is the learning you don’t have to do, so be ruthless in how you decide what you DON’T learn. Where possible, declare all but the most vital problems as annoyances and save them for later. (Annoyances don’t require learning.) This will concentrate your precious resources on fewer problems, improve your learning rate, and keep costs to a minimum.
Here’s a good test to decide if the learning is worth learning. Ask yourself “If we accomplish this learning objective, how will the customer benefit?” If there is low or no customer benefit, say no to the learning objective. If there is medium customer benefit, say no to the learning objective. If there is significant customer benefit, do the learning.
For those learning objectives that make it through the gauntlet, learn what you need to learn, but no more. To do this, create a formal learning objective: “We want to learn [enter learning objective here].” With learning objectives, the tighter the better. And define the criteria for decision making: “If the result of the test is [define objective measurement here], we will decide [enter decision here].” With decision criteria, the clearer the better.
Learn effectively, not elegantly. Be bold, rough, and crude with how you learn. Design tests that take advantage of the resources you have on hand so you can learn quickly. If you can run a crude test in one hour and the perfect test will take a week, run three crude tests and be done by the end of the day.
Learn with less confidence and more judgment. If a wrong decision can be overcome quickly and with low cost, be less confident and use more judgment.
Whether driven by hardware, software, or the integration of both, project completion is governed by the critical path. And with longer time constants, it’s more likely that the hardware defines the critical path. The total cost of the project is the sum of the three costs: software, hardware, and integration. And because hardware requires expensive materials, factories, engineering labs, people to run the tests, and people to make the products, hardware is likely a large percentage of the project costs.
Image credit — Günter Hentschel
Pro Tips for New Product Development Projects
Do the project right or do the right project – which would you choose?
If you improve time to market, the only thing that improves is time to market. How do you feel about that?
Customers pay for things that make their lives easier. Time to market doesn’t do that.
There’s no partial credit with new product development projects. If the product isn’t 100% ready for sale, it’s 0% ready.
If you made 1/8th progress on 8 projects, you made zero progress. But you did consume valuable resources.
If you made 100% progress on one project, you made progress.
When you have too many projects, you get too few done.
If you don’t know how many projects your company has, you have too many.
Would you rather choose the right project and run it inefficiently or choose the wrong project and run it efficiently?
When you choose the wrong project but run it efficiently, that’s called efficient ineffectiveness.
You can save several weeks making sure you choose the right project by starting the project too soon and running the wrong one for two years.
If your projects are slow, it’s likely the support functions are too highly utilized. Add capacity to keep their peak utilization below 85%.
When shared resources are sized appropriately, they’re underutilized most of the time. Think fire station and firefighters – when there’s a fire they respond quickly, and when there’s no fire they improve their skills so they can fight the next one better than the last.
If your projects are slow, check to see if you have resources on the critical path that work part-time. Part-time resources support multiple projects and don’t work full-time on your project. And you can’t control when they work on your project. There’s no place for that on the critical path.
If you’re thinking about using part-time resources on the critical path, don’t.
Know where the novelty is and work that first. And before you can work on the novelty you’ve got to know where it is.
You can have too little novelty, meaning the new product is so much like the old one there’s no need to launch it. Mostly, though, projects have too much novelty.
If you are working on a clean-sheet design, there is no such thing. There are no green-field projects. All projects are brown-field projects. It’s just that some are browner than others.
Novelty generates problems and problems take three times longer to solve than anyone thinks. To reduce the number of problems, declare as many as possible as annoyances. Unlike problems, annoyances don’t have to be solved by the project. Remember, it’s okay to save some work for the next project.
Even though you have a product development process, that process is powered by people. People make it work and people make it not work. If you get one thing right, get the people part right.
Image credit – claudia gabriela marques
Respect what cannot be changed.
If you try to change what you cannot, your trying will not bring about change. But it will bring about 100% frustration, 100% dissatisfaction, 100% missed expectations, 0% progress, and, maybe, 0% employment.
Here’s a rule: If success demands you must change what you cannot, you will be unsuccessful.
If you try to change something you cannot change but someone else can, you will be unsuccessful unless you ask them for help. That part is clear. But here’s the tricky part – unless you know you cannot change it and they can, you won’t know to ask them.
If you know enough to ask the higher power for help and they say no but you try to change it anyway, you will be unsuccessful. I don’t think that needed to be said, but I thought it important to overcommunicate to keep you safe.
Here’s the money question – How do you know if you can change it?
Here’s another rule: If you want to know if you can change something, ask.
If the knowledgeable people on the project say they cannot change it, believe them. Make a record of the assessment for future escalation, define the consequences, and rescope the project accordingly. Next, search the organization (hint – look north) for someone with more authority and ask them if they can grant the authority to change it. If they say no, document their decision and stick with the rescoped project plan. If they say yes, document their decision and revert to the original project plan.
If you do one thing tomorrow, ask your project team if success demands they change something they cannot. I surely hope their answer is no.
Image credit — zczillinger
What’s a dinosaur to do?
When you do something for a long time, the physical and mental muscles you exercise get stronger and you get better at that activity. But where the muscles you use get stronger, the ones you don’t use atrophy and you get worse at all the other things.
When you do something for a long time, people see you as someone who does that one thing. And because it’s easy for everyone, that same old work lands on your desk and the system reinforces the problem. The company knows it will get done quickly and well, and because you’ve done it before, it’s easy for you. But what’s good and easy in the short term may not be so good and easy in the long term. When you do what you did last time, you get stale and you don’t grow. It’s the same for your career. When they see only one slice of you, there’s a long-term downside
When you look at the same old problems for a long time, you see only the same old solutions. And more troubling, you’re blind to your blindness. If you’ve solved the same family of problems for the last decade, you won’t see the new solutions made possible by developments in new areas. And more troubling, you won’t see that it’s time to solve new problems because the same old problems find your desk.
What’s a dinosaur to do?
Pair up with a younger person who wants to learn and teach them how to solve problems. Their energy will rub off on you and your smarts will contaminate them. A fair trade for both. Teach them how to understand the situation as it is – both in the problem space and political space. Teach them how to read the tea leaves and hear what’s unsaid. You’ll learn you know far more than you thought and you’ll get to show your whole self to your younger partner in crime.
Put them in a position to succeed and take pride in their success. Give them credit and revel in their development. Help them stretch and protect them from breaking. Keep them safe and help them live dangerously. Provide air cover as only you can, and do it with plausible deniability. You will get great joy (and energy!) from this.
When you’re low on energy, help people. When you’re down in the dumps, take someone to lunch and listen to them. When you’re tired of the same old work, help people do new work. And when you want to feel good about what you know, teach people.
At this point in your career, you have all you need and plenty to spare. Ground yourself in your abundance and give it away. Everyone will be better for it, including you.
Image credit — Steve Walker