Risk-taking is central to value creation in product development.”

„By prioritizing, we choose to service one project before the other. In general, it is best to delay the project with a low cost of delay. This suggest that we should not prioritise on the basis of project profitability, but rather on how this profitability is affected by delay.“ (p 14)

„The speed of feedback is at least two orders of magnitude more important to product developers than manufacturers. Developers rely on feedback to influence subsequent choices. Or, at least, they should. Unfortunately our current orthodoxy views feedback as an element of an undesirable rework loop. It asserts that we should prevent the need for rework by having engineers design things right the first time.“ (p 19)

„Economic choices must be made continuously. It is important to consider the timing of the economic trade-offs that we make in product development. We do not make a few, big, predictable trade-offs at the start of our development process. Instead, we make many small trade-offs, at random times, throughout our development process.“(p 37)

„Queues delay feedback, and delayed feedback leads to higher cost.“ (p 58)

„Many supermarkets cross-train check stand operators to perform other tasks. These stores monitor the size of queues at check stands. As soon as they have more than three customers in line, they open up a new check stand. When queues are cleared, they close the extra check stand. This is a highly effective way to provide quality of service in the face if uncertain demand. “ (p 75)

„The Diffusion Principle: Over time, queues will randomly spin seriously out of control and will remain in this state for long periods…We simply cannot rely on randomness to correct the problems that randomness creates.“ (p 76-79)

„Product development creates economic value by producing the recipes for products, information, not by creating physical products. If we create the same recipe twice, we’ve created no new information, and consequently, no economic value. If we wish to create value, it is necessary, but not sufficient, to change the design. But changing the design introduces uncertainty in outcomes. In fact, we must introduce uncertainty to add value in product development. Risk-taking is central to value creation in product development.“ (p 86)

„Unfortunately, most companies do a far better job of communicating their successes than their failures. They carefully document successes, but fail to document failures. This can cause them to repeat the same failures. Repeating the same failures is waste, because it generates no new information. Only new failures generate information.“ (p 94)

„In product development, fast feedback also provides disproportionate economic benefits because the consequences of failures usually increase exponentially when we delay feedback. Each engineering decision acts as a predecessor for many subsequent decisions. The number of dependent decisions generally grows geometrically with time. Consequently, as single incorrect assumption can force us to change hundreds of later decisions. When we delay feedback, rework becomes exponentially more expensive. With accelerated feedback, we can truncate bad paths before they do significant economic damage.“ (p 114)

The Principles of Product Development FLOW. Second Generation Lean Product Development. Donald G. Reinertsen, 2009, Celeritas Publishing.

We provide our insights through quotes directly taken from books, articles, videos, info graphs and other media. We do not add, comment or reflect on the topics highlighted or represent the media in its intentions or as a whole. We hope to inspire you to dig deeper, discover and fall in love with your own eureka moments.

Previous NanoInsights:

The Three Box Solution by Vijay Govindarajan

"The future is shaped by the actions you take TODAY." “The ability to achieve significant nonlinear change starts with the realization that time is a continuum. The future is not located on some far-off horizon, and you can postpone the work of building it...

read more

The Hard Thing About Hard Things by Ben Horowitz

"A brain, no matter how big, cannot solve a problem it doesn’t know about." „Marc Andreessen attempted to cheer me up with a not-so-funny-at-the-time joke: Marc: ‚Do you know the best thing about startups?‘ Ben: ‚What?‘ Marc: You only ever experience two...

read more

BOLD by Peter H Diamandis and Steven Kotler

"Anything new and different is initially going to be misunderstood." “Today the shift from ‚I’ve got a neat ideas‘ to ‚I run a billion-dollar company‘ is occurring faster than ever. This is possible, in part, because the structure of exponential...

read more

GRIT by Angela Duckworth

"The source of our strength is the person we know ourselves to be." “Is passion the right word to describe sustained, enduring devotion? Some might say I should find a better word. Maybe so. But the important thing is the idea itself: Enthusiasm is common....

read more

Disrupt Yourself by Whitney Johnson

"Disrupt yourself before disrupting others."   “When you make a decision to start something new, first figure out the jobs you want to do. Then position yourself to play where no one else is playing. Despite our love affair with the certainty of...

read more

The 60 Second Leader by Phil Dourado

"Be Prepared to Make an Idiot of Yourself." „Smart groups beat individual decisions if they have: 1. Diversity of opinion (each person should have some private information, even it it’s just eccentric interpretation of the known facts) 2. Independence...

read more

The Change Monster by Jeanine Daniel Duck

"No one ever calls you at night to give you good news." „Change can be exhilarating and bring about the best work of a life-time.“ (p xiii) „Changing an organisation is inherently and inescapably an emotional human process.“ (p 9) „If leaders want to...

read more

ZERO TO ONE by Peter Thiel

 „The most contrarian thing of all is to think for yourself.“ „In the most dysfunctional organizations, signalling that work is being done becomes a better strategy for career advancement than actually doing work - if this describes your company, you...

read more

SCRUM by Dr. Jeff Sutherland

"No Assholes. Don’t be one, and don’t allow the behaviour." „The term ‚Agile‘ dates back to a 2001 conclave where I and sixteen other leaders in software development wrote up what has become known as the ‚Agile Manifesto‘. It declared that following...

read more

Transformational HR by Perry Timms

"We Need Each Other to Transform." „A sense, a vigilant instinct that perhaps never before, has the ‚people factor‘ been seen as such a key differentiator in the world of work. Philosophers, artists, politicians, scientists and innovators are all...

read more