Friday, November 18, 2011

"The Principles of Product Development Flow: Second Generation Lean Product Development" by Donald G. Reinertsen

"The Principles of Product Development Flow: Second Generation Lean Product Development" by Donald G. Reinertsen
 
 
 


It should be obvious that fast feedback improves the speed of learning. What may be less obvious is that fast feedback also increases the efficiency with which we generate information and learn new things. It does this by compressing the time between cause and effect. When this time is short, there are fewer extraneous signals that can introduce noise into our experiment.

Team New Zealand designed the yacht that won the America's Cup. When they tested improvements in keel designs, they used two virtually identical boats. The unimproved boat would sail against the improved boat to determine the effect of a design change. By sailing one boat against the other, they were able to discriminate small changes in performance very quickly.

In contrast, the competing American design team used a single boat supplemented by computer models and NASA wind tunnels. The Americans could never do comparison runs under truly identical conditions because the runs were separated in time ...

Team New Zealand completed many more cycles of learning, and they generated more information in each cycle. This ultimately enabled them to triumph over a much better funded American team. It is worth noting that Team New Zealand explicitly invested in a second boat to create this superior test environment. It is common that we must invest in creating a superior development environment in order to extract the smaller signals that come with fast feedback.