![Target: Family Sedan
Target: Persona, Scenario
Compelling Theme; Sports Car Replacement
• For Head of household – replacing a two-seater sport car
• They’re selling the sport car
• That needs to carry at least one child ~ 7yo and maybe one friend, to an event
• Own a minivan: will use for “full” loads
• With 5-star safety rating, under a $33K
• MFF question: your capability [backlog item] is the value type [decision tree]](https://image.slidesharecdn.com/mffatcomotionstrmln4-12-19-200422000214/85/Market-Fit-Fast-Minimum-Compelling-Offing-at-UW-CoMotion-Labs-11-320.jpg)
Market Fit Fast Minimum Compelling Offing at UW CoMotion Labs
- 1. © 2018 Logic20/20. Confidential. All rights reserved. Do not copy & do not reproduce. This document is confidential and intended solely for the use and information of the client to whom it is addressed. Friday, April 12, 2019 Introduction: Market Fit Fast Patrick Hogan, Principal Gateway Adopters LLC Align Work to How Customers Value Compelling Release. Often in ¼ the time
- 2. What You Can Learn: Quickly Align Your Work to How Customers Really Value Your Efforts: • Why: the most common, repeated roadblock • How: audience exercise using a concept; • Determine capability value type • Better outcomes, fast: language for more product debates, work, home • A startup used to cut time to first release 7 ½ months (75%), saved 1 Dev-Year of funds • What/When/impact: fundamental of MFF – define a “new box” of thinking
- 4. Creating New Concepts is Broken – Most Flop • 90%+ failure rate – from startups to corporate R&D • Big consequences – losses, jobs, careers • Doing what is “common” and normal will give these same - poor - results • Value needs to be very high to get customers to change – estimated at 10X the cost • Teams get stuck – often not clear, or precise thinking on the key issues • 5 common failures modes. • Where should you focus the most to help your team not fail? • Ask questions to asses the most common roadblocks • Is there precision, clarity on: Customer, Goal/Problem, Value, alignment, risk types
- 5. Typical Indicators Market Fit Fast Can Help Clear, Precise, Confident, Vision for: Compelling enough to get adopted? Solving an important problem? Solution a clear advantage? Worth change behaviors – stop what doing now? Taking too long to revenues? Too many cycles to get it right? “Gold plate” the right things? To much of the wrong things Not building what is need? Overinvesting in what you do build? Is your work aligned to how customers value?
- 6. Why is Market-Fit Hard? • People value different features on the same product in different ways • These are different types of value - within every offering • Most teams lose this insight: using a blunt instrument • a one-dimensional “high-low” rank-ordering does not model how customers really value. • Teams are trapped by the tyranny of Priority = Sequence • Agile and Lean offers rigor for "how“ to build – but not "what" • More precise model to describe these differences => big change in work
- 7. 5 Precise Types of Value Within a Product Essential/Expected: if not present -“deal killer” A. “Must”: no upside Or B. “Linear”: more the better NOT Essential, required or expected C. “Delighters”: adds value Or D. “Indifferent”: no value, either direction Or E. “Detractors”: not desired You treat/invest/develop each (type) differently Effort How Customers Value
- 8. Example: What a Barista in Freemont Focuses on: HOT! Flavor Foam-Art Cup color
- 9. How Can a Team Act on New Insights? • How do we agree? • What value type does our features/capability create? Bring the team together to reach a common assessment, vision • How do we take action?
- 10. Hands-On - Market Fit Fast Determine The “type” of value a feature creates Create a Consumer Vehicle Remodel a House? A Kitchen? Guidance for a new Bridegroom? Investment/Product Portfolio?
- 11. Target: Family Sedan Target: Persona, Scenario Compelling Theme; Sports Car Replacement • For Head of household – replacing a two-seater sport car • They’re selling the sport car • That needs to carry at least one child ~ 7yo and maybe one friend, to an event • Own a minivan: will use for “full” loads • With 5-star safety rating, under a $33K • MFF question: your capability [backlog item] is the value type [decision tree]
- 12. Capability Backlog: Vehicle Investment Areas A. Passenger room • Hip, head, knee room B. Cargo capacity • Trunk space C. Passive Safety • Airbags, crash zones D. Total Cost to own • Overall (e.g. insurance, depr.) E. Active Safety / “Autonomy” • Active breaking, lane keeping L. Infotainment • Audio, in car screens, phone compatibility M. Instruments/dash • Dash readout, configurability, heads up display N. Engine/Motor • Size and sophistication of engine, motor/battery O. Drive train • # Transmission ratios, AW/FW/RW drive P. Chassis / body • Frame/body sophistication/strength, materials F. Interior quality Service finish, materials, fit H. Design / Styling Follow, new shapes I. Tires & Wheels Size and material sophistication J. Brakes Short stopping K. Ride & Handling Suspension sophistication & tuning
- 13. Expected? Yes No Indifferent Must Delighter Linear Hostile/ DetractorDetracts? Yes No Add Value? Yes No Adds value? No Yes B a c k l o g Determine the Value-Type a Capability Delivers
- 14. Align Work to Value Types – Prescriptions Hostile / Detractor: Investigate – Mitigate, drop Indifferent: Investigate to see if regulatory, drop Delighter: “Gold Plate” ONE MCO to define compelling - “knock it out of the park” MCO themes: Sports car? Eco? Roomy? Safety? Economy? Value? Styling? …? Linear: Optimize set. Coherent value across all linear features i.e. no “sore thumbs” Must: Value Engineer - find the minimum-bar i.e. “satisfice” - won’t “kill the deal” Work Value
- 15. Possible Capability Value Type Outcome for: Sports Car Replacement Linears Musts Delighters B. Cargo capacity Trunk space J. Brakes Short stopping A. Passenger room Hip, head, knee room D. Economy Total ownership cost M. Engine/Motor Size and sophistication of engine, motor/battery P. Chassis / body Frame/body strength C. Passive Safety Airbags, crash zones E. Active Safety / “Autonomy” Active breaking, lane keeping F. Interior quality Service finish, materials, fit H. Design / Styling Follow, new shapes I. Tires & Wheels Size and material K. Ride & Handling Suspension sophistication & tuning L. Infotainment Audio, in car screens, phone compatibility M. Instruments / Dash Dash readout, configurability, heads up display M. Drive train # Transmission type, AW/FW/RW drive MCO Theme: Drives Like My Sports Car
- 16. Possible Value Proposition Themes – Selected by team skills A. Responsive Handling (aka “nimble”) B. Protect Against Elements C. Relax, comfort D. Latest Driving Technology E. Interaction – interior technology F. Acceleration performance (straight-line) G. Aesthetic/Style Statement H. Low purchase price
- 17. Market Fit Fast Concepts Compelling 75% faster Principles: “Thinking in a new box” Think in 2 Dimensions not 1
- 18. Focus on the Risks that Kill Projects. Ask, Listen Execution Will it really solve a top problem? Are the capabilities compelling? Overinvesting - in stuff not needed now? Strong disagreements on team? Not precise/clear why item is/is not “gold plated”? Value Is the customer problem precise? clear? Important/”top 3”? What are current and potential substitute solutions? Org/Team Taking too a long/missing milestones? Healthy? Lots of conflict? Are you leveraging your team’s competitive advantage? Are all the functions aligned across your org? Risks Can team call out the potential risks? What are the risk mitigating efforts? Customers Is the persona imprecise and unclear? i.e. many different Feedback from customers unclear, inconsistent
- 19. Far More Accurate “Value” Model (a New “Box”) One-Dimensional High Low (+) Positive (+) Positive Two-Dimensional (-) Negative Present Absent transition to (-) Negative
- 20. Value Engineer to the minimum bar, satisfice Align Work - Releases - to Delighter Value Delighter 3 Scenarios / Problem 3 Delighter 2 Scenarios / Problem 2 Delighter 1 Scenarios / Problem 1 Optimize customer value across all linear features (coherent, no “sore thumbs”) “Gold Plate” on one “knock it out of the park” capability Linears Musts Delighters Minimum Compelling Offering One Delighter + supporting (Linear’s + Musts)= Sequence Work
- 21. MFF Inspires Breakthrough When Aligning Effort to Value Linears Musts Delighters Dinner Party Garbage Out Clear Table Wash Dishes New Groom Keep Bride Happy Sink Countertops Cabinets Dishwasher Fridge Kitchen Remodel “Flip” a house Flooring Latest Product “Maturing” Delighters Past Linears Product Portfolio New Product Strategy
- 22. Market Fit Fast Outcomes, Adoption
- 23. Market Fit Fast: Aligning Work to How Customers Value Compelling, Fast__ • Nexus of key factors, transparently drive decisions • Bring together customer, scenario, features, strategy, investment decisions, competitive advantage – all in one place • Align work to how customers really value • Clearly Define Compelling: “Delighting” strategy • Streamline Work, Management - compelling fit fast • Don’t do what is not needed - now • Break tyranny of Sequence = Priority • Easy to adopt • Works with any dev model • 3 questions for “what” you create Innovation: Healthy, Dynamic Teams • New thinking, insights “up-levels” conversations drive the market • Unify complex teams across diverse functions – common language • New perspective moots many perceived blockers, politics • Bigger impact faster then shifting to Agile, Lean • Success: new revenues faster,
- 24. Adopting Market Fit Fast – Can Be Fast, Ramped Up • “Trial” impact in a Normal meeting: 3 questions, decision tree guides what you are doing/debating now • Use latest persona, problem/scenario/goals, backlog • Apply “layer cake” guidance to value type: Identify MCO, align work by value type, govern • will find new targets • Iterate • Common outcome: a scheduled 90-minute meeting saved 3 mo, 1 dev-year • Scale to larger team via workshops, projects etc.
- 25. Market Fit Fast - Q & A Deliver Compelling Offering - often 75% faster
- 26. Patrick Hogan How Can I help unstick your team? Patrick.Hogan@GatewayAdopters.com www.GatewayAdopters.com @GatewayAdopters Phone: +1 (425) 444 2904
- 27. © 2018 Logic20/20. Confidential. All rights reserved. Do not copy & do not reproduce. Broad Range of Innovation - enterprise and startup - experience 30+ years of Experience • Envisioning and driving new offerings Rigorous Research • Adopting, creating new and improving innovation tools and best practices • 100+ of C level executives interviews • 1,000+ of consumer interviews • 100,000+ data point from thousands of projects Across many markets • New Cloud Dev API’s and supporting application platforms • Developer tools • Big data analytics solutions • Imaging and VR application platforms • Digital media consumer advertising analytics • CRM and mobile applications • New hosted authoring platform for ecommerce websites Bridge to many industries – beyond high-tech • Automotive and aerospace • Consumer banking • P&C insurance • Healthcare and eldercare • Online resort travel
- 28. Lean Innovation Know where to Focus to unlock a team’s creativity Create Compelling Customer Value, Fast A. Ask Team & Listen B. Know “Healthy” C. Asses Top Issues D. Create an Rx – “tool” specific to the issue E. Apply – “Treatment”
Editor's Notes
- #5: If you want to win – to be different - think differently the every one else – change how you think about your key challenge 5 steps you can take – to know where to focus and what to do… Dig deeper – greatest opportunity unlock how your team can win Maybe not what they ask for - act like a physician Bigger (impact) Agile or Lean – you can make the biggest impact Focus team on “what” they create – not “how” Implement best practices unlock your team’s creativity – align work to customer value Not just an political “influencer”
- #8: Delighter Even simple Set product apart Can define a compelling release Change a market
- #9: Production Focus “Hot” is a “Must”- once hot…it’s enough, detailed control is overkill “Flavor” is a “Linier” – good taste is required, and Starbucks has proven you can charge $4 for great tastes waaay better Foam-art is a “Differentiator”. Some will go to the barista that makes the best foam art, even if the taste is just close… Cup color is an “indifferent” – people don’t care
- #11: Handouts: Backlog, auto persona/fit Audience works through backlog – uses decision tree to categorize Post answers on a layer cake on white-board Stand back – asses - MCO supporting the theme “What next”?