venture design 1 day solving the right problem (for japan-x_

7/21/2019 Venture Design 1 Day Solving the Right Problem (for Japan-x_

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VENTURE DESIGN CRASH COURSEPART I- SOLVING THE

RIGHT PROBLEMAlex Cowan

4


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ABOUT ME

Entrepreneur (5x)Intrapreneur (1x)


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THE VENTURE DESIGN PROCESS ()

SCALE?

PIVOT?

PRODUCT &

PROMOTION

USER STORIES

& PROTOTYPES

CUSTOMER

DISCOVERY &

EXPERIMENTS

VALUE

PROPOSITIONS &

ASSUMPTIONS

SHOW

ME

?

WHAT

IF?

Is the problemrelevant? Is theproposition bettervs alternatives?

Do we understand

this person? Whatmakes them tick?

Did theimplementationdeliver onthe story?

Was the implementedstory relevant to theproposition?

How did the customer/user react?

WHO ?

PERSONAS

WHAT?

PROBLEM

SCENARIOS &

ALTERNATIVES &

&

&


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www.alexandercowan.com

ABOUT ME


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ALEX COWAN

alexandercowan.com

@cowanSF

WHY WOULD THIS CLASS BE IMPORTANT TO YOU?

ScaleFriendly

Innovation

Friendly

$ !?

? ! ? ? ?


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WHY WOULD THIS CLASS BE IMPORTANT TO YOU?

$ !?

? ! ? ? ?

#1: Start with the

individual

#2: Anchor toproblems,

not solutions

#3: Become a better

storyteller

#7: Learn first,

scale second

#8: Find yourself,

then create new identities

#4: Circulate ideas

#5: Test early, test often

#6: Let ideas die

with dignity


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4. HOW WILL WE WORK TOGETHER?

time

alternatives

divergence convergence

source: adapted from The Design of Everyday Things

generate

divergent ideas

(by working

individually)

converge the best

of what youve

created (as a

group)


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HOW WILL WE WORK TOGETHER?Finding the Right

PROBLEM

time

alternatives


Finding the RightSOLUTION




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WHAT WORK WILL WE DO?Finding the Right

PROBLEMFinding the Right

SOLUTION

time

alternatives

divergence convergence divergence convergence


User Stories

PersonasProblems

Alternatives

Field

Discovery

Value Hypothesis &

Assumptions

Product

Hypothesis

Software

Prototypes

Experiments on Motivation


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SCALE?

PIVOT?

PRODUCT &

PROMOTION

USER STORIES

& PROTOTYPES

CUSTOMER

DISCOVERY &

EXPERIMENTS

VALUE

PROPOSITIONS &

ASSUMPTIONS

SHOW

ME

?

WHAT

IF?


Do we understand





WHO ?PERSONAS

WHAT?

PROBLEM

SCENARIOS &

ALTERNATIVES &

&

&


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THE VENTURE DESIGN PROCESS

Do we understand


WHO ?PERSONAS

WHAT?

PROBLEM

SCENARIOS &

ALTERNATIVES


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The Twin Anti-Poles of Design Failure

Doing precisely whatthe user asks

Assuming you know whatsbest and ignoring the user

!"#$%

THE PRACTICE OF DESIGN THINKING


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THE PRACTICE OF DESIGN THINKINGFinding the Right

PROBLEMFinding the Right

SOLUTION

time

alternatives



User Stories

PersonasProblems

Alternatives

Field

Discovery

Value Hypothesis &

Assumptions

Product

Hypothesis

Software

Prototypes



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THE PRACTICE OF DESIGN THINKING- WHY IS IT HARD?

Design Thinking()

Now ()

Survival()

Then ()


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THE PRACTICE OF DESIGN THINKING- FOUNDATIONS

Empathy () Creativity ()


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Entry ()1

Urinate as they go ()2

Edges preferred ()3

Speedy ()4

PB () > cheese ()5

Empathy ()


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1

2

3

4

5

Check & Repair ()

UV Validation ()

Relevant Placement ()

A Better Mouse Trap ()

Better Bait ()

Creativity ()


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THE VENTURE DESIGN PROCESS- PERSONAS

Do we understand


WHO ?PERSONAS

WHAT?

PROBLEM

SCENARIOS &

ALTERNATIVES


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DESIGN THINKING (

): EMPATHY & PERSONAS

ALEX COWAN

alexandercowan.com

@cowanSFbit.ly/2persona


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DESIGN THINKING: EMPATHY & PERSONAS

ALEX COWAN

alexandercowan.com

@cowanSFbit.ly/2persona


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Women

Age 28-45

Has kids

Socialize with other moms

Online with Facebook

86% said theyd like to be moreorganized

70% said theyd use an applicationthat organizes them

PERSONA: BAD


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Bullet points are almost never

vivid or detailed

Stock photo- not real

This is a huge population-

not exact

These responses are fake actionable-

survey responses like this areunreliable

PERSONA: BAD

Women

Age 28-45

Has kids

Socialize with other moms

Online with Facebook

86% said theyd like to be moreorganized

70% said theyd use an applicationthat organizes them


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THE ART OF CUSTOMER DISCOVERY


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Mary is a mom by choice. She had a successful career in

accounting, but welcomed the opportunity to be a stay at home

mom. She loves it. But its not like having kids purged hercreative, social instincts. She wants to connect, she wants to

learn, she wants to interact. Being a mom is a job and she wants

to do it well. That means corresponding with other moms on

child education and keeping track of what works. She posts to

Facebook at least twice a week and responds to other moms

items more often than that.She has a few blogs and publications she reads regularly

Mary the Mom

PERSONA: BETTER


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the use of a first name helps w/

vividness (a little)

these full sentences look like a good

start towards something vivid and

detailed

this is a real photo of a relevant

person taken with an iPhone in the

real world

PERSONA: BETTER

Mary is a mom by choice. She had a successful career in

accounting, but welcomed the opportunity to be a stay at home

mom. She loves it. But its not like having kids purged hercreative, social instincts. She wants to connect, she wants to

learn, she wants to interact. Being a mom is a job and she wants

to do it well. That means corresponding with other moms on

child education and keeping track of what works. She posts to

Facebook at least twice a week and responds to other moms

items more often than that.She has a few blogs and publications she reads regularly

Mary the Mom


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ivid

eal

ctionable

dentifiable

xactetailedE

RAV

D


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EXERCISE- PERSONA CREATION

Mary the Working Mom

Susan the Stay-at-Home Mom

Douglas the Dad

Nathan the Nanny

Ivan the Infant

List at least 3 personas

3

(4 min)

use 1 index card/persona

1

/


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Day in the LifeWe look at a few photos for a given persona (not a full picture, just snippets)

You make some guesses about them

There are no right answers BUT

There is a right process: observe and infer

OBJECTIVE:Get a feel for whats real; start to create something vivid

A LITTLE GAME FOR BETTER PERSONA DISCOVERY


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:

A LITTLE GAME FOR BETTER PERSONA DISCOVERY


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PERSONAS- THINK SEE FEEL DO


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PERSONAS- THINKS?

Thinks:(The cognitive part. Often: the tension between how theyd ideally like things to be and how they are now.)

Sees

Feels

Does


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EXAMPLE- ENABLE QUIZ & HELEN THE HR MANAGER


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Thinks: Helen thinks the hiring process should be so much better- more systematic, fewer bad hires. Professional development issomething theyve identified that they want to do better, but the functional managers arent engaged enough to get the whole

thing started.

Sees

Feels

Does

Example: Helen the HR Manager


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EXERCISE- DISCOVERING WHAT THEY THINKQuestion Form Examples Questions (Enable Quiz)

Tell me about [yourself in the role of the persona]? - Tell me about being an HR manager?

- What do you most, least like about the job?

- What are the hardest, easiest parts of the job?

- Ive heard [x]- does that apply to you?

Tell me about [your area of interest]? - Do you do screen new candidates? If not, who?

- Can you tell me about the last time? What was the trigger?

- Who else was involved? What was it like?

Tell me your thoughts about [area]? - How should it ideally be done?

- How is it actually done? Why?

Draft discovery questionsin the areas above

(If complete, converge

with your group)

(7 min)


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Thinks:Helen thinks the hiring process should be so much better- more systematic, fewer bad hires. Professional development issomething theyve identified that they want to do better, but the functional managers arent engaged enough to get the whole

thing started.

Sees

Feels

Does

Draft the Think portion for your top persona (If done, converge with your group.)

(4 min)



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CAN YOUR PERSONA DO THIS?

Capture

Attention

via Google

AdWord

Secure the

infamous

click through

Engage Interest,

Desire on

landing page

Action,

onboarding,

retention


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CREATING AN ADWORD AD


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EXERCISE: CREATE AN ADWORD AD: THINK ANGLE

1. Select keywords (put in Notes section)

2. Draft ad copyHow does the draft follow from your personas?

Are you speaking in the language your customers use?

Are you connecting with the THINK in your Think-See-Feel-Do?

(NO RULE AGAINST UPDATING YOUR PERSONA WHILE YOU DO THIS!)

Create at least one Google AdWords ad on the paper template- specificallyusing the think angle on your persona


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PERSONAS- SEES?

Thinks: (The cognitive part. Often: the tension between how theyd ideally like things to be and how they are now.)

Sees:(The interactions that shape their Thinking- media, peers, education, training, casual observation.)

Feels

Does


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Thinks: Helen thinks the hiring process should be so much better- more systematic, fewer bad hires. Professional development is

something theyve identified that they want to do better, but the functional managers arent engaged enough to get the whole thing

started.

Sees: Helen is at the tail end of every bad hire and sees the damage it does to the employee and company, alike. Helen sees thatonline learning has rocketed forward in the last few years. If someone wants to learn a specific skill, theres a number of highquality options online, many of them free. They just need a way to help employees organize select into these courses.

Feels

Does



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EXERCISE- DISCOVERING WHAT THEY SEEQuestion Form Examples Questions (Enable Quiz)







- Who else was involved? What was it like?Tell me your thoughts about [area]? - How should it ideally be done?


What do you see in [area]?Where do you learn whats new? What others do?Who do you think is doing it right?How did you make your last decision?

Draft discovery questions

in the areas above(If complete, convergewith your group)

(4 min)


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started.

Sees:Helen is at the tail end of every bad hire and sees the damage it does to the employee and company, alike. Helen sees thatonline learning has rocketed forward in the last few years. If someone wants to learn a specific skill, theres a number of highquality options online, many of them free. They just need a way to help employees organize select into these courses.

Feels

Does

Draft the See portion for your top persona. (If done, converge with your group.)Example: Helen the HR Manager


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EXERCISE: CREATE AN ADWORD AD: SEE ANGLE




Are you connecting with the SEE in your Think-See-Feel-Do?


Create at least one Google AdWords ad on the paper template- specificallyusing the see angle on your persona


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()PEER PRESENTATIONS PREP!

For [target customer] who [statement of the need or opportunity], the [product

name] is a [product category] that [statement of key benefit/key reason to buy].

unlike [primary alternative], our product [statement of primary differentiation].

[][][

/][][][]

[]


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PERSONAS- FEELS?


Sees: (The interactions that shape their Thinking- media, peers, education, training, casual observation.)

Feel: (The emotional driver. What are the predominant emotions around the relevant activity? What is the emotional outcome ofthe actions they take around the activity?)

Does


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started.

Sees: Helen is at the tail end of every bad hire and sees the damage it does to the employee and company, alike. Helen sees that

online learning has rocketed forward in the last few years. If someone wants to learn a specific skill, theres a number of high

quality options online, many of them free. They just need a way to help employees organize select into these courses.

Feels:Helen feels like crap whenever they have to let someone go. She hates it. The employee hates it. The manager hates it. Its

incredibly destructive and de-motivating for everyone involved. Helen would love to be more involved, more included infunctional skills evaluation and improvement. Shes love to have a success story to talk about. Most HR departments dont do awhole lot in this area.

Does



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EXERCISE- DISCOVERING WHAT THEY FEELQuestion Form Examples Questions (Enable Quiz)









What do you see in [area]?Where do you learn whats new? What others do?

Who do you think is doing it right?

How did you make your last decision?

How do you feel about [area]?Tell me about the last time?

What motivates you? What parts of it are most rewarding? Why?

What would it be like in your perfect world?

Draft discovery questionsfor the feel area

(If complete, convergewith your group)

(4 min)


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started.




Feels: Helen feels like crap whenever they have to let someone go. She hates it. The employee hates it. The manager hates it. Its

incredibly destructive and de-motivating for everyone involved. Helen would love to be more involved, more included infunctional skills evaluation and improvement. Shes love to have a success story to talk about. Most HR departments dont do awhole lot in this area.

Does

Draft the Feel portion for your top persona. (If done, converge with your group.)Example: Helen the HR Manager


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EXERCISE: CREATE AN ADWORD AD: FEEL ANGLE




Are you connecting with the FEEL in your Think-See-Feel-Do?


Create at least one Google AdWords ad on the paper template- specificallyusing the feel angle on your persona


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PERSONAS- FEELS?


Sees: (The interactions that shape their Thinking- media, peers, education, training, casual observation.)

Feel: (The emotional driver. What are the predominant emotions around the relevant activity? What is the emotional outcome of the

actions they take around the activity?)

Do: The actuals. As applicable: What triggers? How often? For how long? How much money?


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started.





incredibly destructive and de-motivating for everyone involved. Helen would love to be more involved, more included in functional

skills evaluation and improvement. Shes love to have a success story to talk about. Most HR departments dont do a whole lot in

this area.

Does: Helens relatively responsive to new ideas, particularly if someone knowledgeable is willing to come in and talk about it. Ifshe likes it, shell bring it to the functional managers, who are usually the ultimate decision makers since without their supportshe cant get the system online and working. Post-sale, Helen will help keep the program organized, moving, and otherwise on

the functional managers radar. All this is predicated on Helen being equipped with the right messages, facts, and best practicesto make the purchase and use of Enable Quiz effective.



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EXERCISE- DISCOVERING WHAT THEY DOQuestion Form Examples Questions (Enable Quiz)









What do you see in [area]?Where do you learn whats new? What others do?

Who do you think is doing it right?

How did you make your last decision?

How do you feel about [area]?

Tell me about the last time?

What motivates you? What parts of it are most rewarding? Why?

What would it be like in your perfect world?

What do you do in [area]?How many new openings/quarter?How many interviews/position?

Draft discovery questionsfor the do area

(If complete, convergewith your group)

(4 min)


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started.





incredibly destructive and de-motivating for everyone involved. Helen would love to be more involved, more included in functional

skills evaluation and improvement. Shes love to have a success story to talk about. Most HR departments dont do a whole lot in

this area.

Does: Helens relatively responsive to new ideas, particularly if someone knowledgeable is willing to come in and talk about it. Ifshe likes it, shell bring it to the functional managers, who are usually the ultimate decision makers since without their supportshe cant get the system online and working. Post-sale, Helen will help keep the program organized, moving, and otherwise on

the functional managers radar. All this is predicated on Helen being equipped with the right messages, facts, and best practicesto make the purchase and use of Enable Quiz effective.

Draft the Do portion for your top persona. (If done, converge with your group.)Example: Helen the HR Manager


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EXERCISE: CREATE AN ADWORD AD: DO ANGLE




Are you connecting with the DO in your Think-See-Feel-Do?


Create at least one Google AdWords ad on the paper template- specificallyusing the do angle on your persona


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PERSONAS & PROBLEM SCENARIOS

Do we understandthis person? What

makes them tick?

WHO ?PERSONAS

WHAT

?

PROBLEM

SCENARIOS &

ALTERNATIVES


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XPROBLEM SCENARIO


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XWhat job(s) are you doing for the

customer?

What existing need or behavior

are you fulfilling?

PROBLEM SCENARIO


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X

?ALTERNATIVE(S)

PROBLEM SCENARIO


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X

?If they currently use

spreadsheets, watch them use it

and get a copy of it.If they currently put notes on the family

fridge, ask about it, photograph it.

ALTERNATIVE(S)

PROBLEM SCENARIO


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X

Its hard for the HR manager to send good notes on

candidates to the functional manager.(Too Detailed, A Feature vs. a Product/Venture)

Hiring technical talent is difficult.

(Too Broad, Abstract)

Screening technical talent is difficult.

(Probably About Right)


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X

?ALTERNATIVE(S)

PROBLEM SCENARIO


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?

XProblem: Helen doesn't have a softwareengineering background, so it's hard for her to

screen engineering candidates. She ends up

sending the functional manager too many

unqualified candidates. .

Alternative: She calls references and mostly endsup taking their word for it.

Brainstorm Problem Scenario+Alternative Pairs.

(4 min)

ALTERNATIVE(S)

PROBLEM SCENARIO


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EXERCISE: CREATE AN ADWORD AD: PROBLEM SCENARIOS


2. Draft ad copyHow does the draft follow from your problem scenarios?


(NO RULE AGAINST UPDATING YOUR PROBLEM SCENARIOS WHILE YOU DO THIS!)

Create at least one Google AdWords ad on the paper template- specificallyusing the your top problem scenarios (and alternatives as you see fit)


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X

?

YOUR VALUE PROPOSITIONS !

ALTERNATIVE(S)

PROBLEM SCENARIO


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X

?

!Are they better enough than thealternative(s)?

YOUR VALUE PROPOSITIONS

ALTERNATIVE(S)

PROBLEM SCENARIO


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?

X

Brainstorm ProblemScenario+Alternative Pairs.

-

(4 min)! YOUR VALUE PROPOSITIONS

ALTERNATIVE(S)

PROBLEM SCENARIO

Problem: Helen doesn't have a softwareengineering background, so it's hard for her to

screen engineering candidates. She ends up

sending the functional manager too many

unqualified candidates. .

Alternative: She calls references and mostly endsup taking their word for it.

Value Proposition: New ability for meaningful

screening of technical candidates, increasing % ofsuccessful hires and lowering Frank the Functional

Manager's workload on recruiting.


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EXERCISE: CREATE AN ADWORD AD: VALUE PROPOSITIONS


2. Draft ad copyHow does the draft follow from your value propositions?


(NO RULE AGAINST UPDATING YOUR PROBLEM SCENARIOS WHILE YOU DO THIS!)

Create at least one Google AdWords ad on the paper template- specificallyusing the your top value propositions


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AND NOW THE PRODUCT HYPOTHESIS

X

?

!

and they have a certain

PROBLEMS(S)

where theyre currently using certainALTERNATIVE(S)

and I have a VALUE PROPOSITIONthats better enough than the alternatives

to cause the persona to act (purchase,

use, etc.).

A certain PERSONAexists


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PROBLEMS(S)




use, etc.).

A certain PERSONAexistsHR and functional managers are in charge of

technical hires

and they struggle to effectively screen fortechnical skill sets, making the hiring processslower and more labor intensive and producing

worse outcomes than they should reasonablyexpect.

Currently they implement a patchwork of callingreferences and asking a few probing questions.

By offering an easy, affordable, lightweighttechnical quizzing solution, Enable Quiz canacquire and retain these customer personas,delivering material value.

Enable Quiz example:

Draft your producthypothesis

(4 min)


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RECORDING ON THE BUSINESS MODEL CANVAS

Thisworkislicensedunderthe Creative CommonsAttribution-Share Alike 3.0UnportedLicense.Toviewa copyofthislicense,visit http://

creativecommons.org/licenses/by-sa/3.0/ or senda lettertoCreative Commons,171SecondStreet,Suite 300,San Francisco,California,94105,USA.The templates here are made available on the same CC license terms as the original canvas.

(Cost Structure)

(Key

Partners)

(Key

Activities)

(Key

Resources)

(Revenue Streams)

(Customer

Relationships)

(Channels)

(Value

Propositions)

(Customer

Segments)


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Why do they buy? Who are they?

Broad Selection

Competitive Prices

Convenience

Do-it-yourselfers

Casual Shoppers

Contractors

Example: Home Depot

Customer

SegmentsValue

Propositions ()(

)


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ThisworkislicensedundertheCreativeCommonsAttribution-ShareAlike3.0UnportedLicense.Toviewacopyof thislicense,visit http://

creativecommons.org/licenses/by-sa/3.0/ orsendaletterto CreativeCommons,171SecondStreet,Suite300,SanFrancisco,California,94105,USA.The templates here are made available on the same CC license terms as the original canvas.

(Cost Structure)

(Key

Partners)

(Key

Activities)

(Key

Resources)

(Revenue Streams)

(Customer

Relationships)

(Channels)

(Value

Propositions)

(Customer

Segments)


creativecommons.org/licenses/by-sa/3.0/ or senda lettertoCreative Commons,171SecondStreet,Suite 300,SanFrancisco,California,94105,USA.The templates here are made available on the same CC license terms as the original canvas.

Cost_1

Cost_2Cost_3

Partner_1

Partner_2

Partner_3

Activity_1

Activity_2

Activity_3

Resource_1

Resource_2

Resource_3

Revenue_1

Revenue_2Revenue_3

Relationship_1

Relationship_2

Relationship_3

Channel_1

Channel_2

Channel_3

Proposition_1

Proposition_2

Proposition_3

Segment_1

Segment_2

Segment_3

1. List Prioritized CustomerSegments/Personas

2. List Prioritized ValuePropositions

3. Note Linkages(if applicable

1

Personas

2

Personas

3(5 min)


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SCALE?

PIVOT?

PRODUCT &

PROMOTION

USER STORIES

& PROTOTYPES

CUSTOMER

DISCOVERY &

EXPERIMENTS

VALUE

PROPOSITIONS &

ASSUMPTIONS

SHOW

ME

?

WHAT

IF?



makes them tick?




WHO ?PERSONAS

W

HAT?

PROBLEM

SCENARIOS &

ALTERNATIVES &

&

&


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WHERE YOU SHOULD BE NOW

Personas, including

Think-See-Feel-Do Problem Scenarios

Alternatives

Value Propositions


makes them tick?

WHO ?PERSONAS

W

HAT?

PROBLEM

SCENARIOS &

ALTERNATIVES

Interview Guide

2 (or more) Interviews


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WHAT WELL WORK ON TODAY

Finding the RightPROBLEM

Finding the RightSOLUTION

time

alternative

s



Personas

Problems

Alternatives

Field

Discovery

Value Hypothesis &

Assumptions

Product

Hypothesis



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creativecommons.org/licenses/by-sa/3.0/ or senda lettertoCreative Commons,171SecondStreet,Suite 300,San Francisco,California,94105,USA.The templates here are made available on the same CC license terms as the original canvas.

(Cost Structure)

(Key

Partners)

(Key

Activities)

(Key

Resources)

(Revenue Streams)

(Customer

Relationships)

(Channels)

(Value

Propositions)

(Customer

Segments)


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Why do they buy? Who are they?

Broad Selection

Competitive Prices

Convenience

Do-it-yourselfers

Casual Shoppers

Contractors

Example: Home Depot

Customer

SegmentsValue

Propositions


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2015 COWAN+


ThisworkislicensedundertheCreativeCommonsAttribution-ShareAlike3.0UnportedLicense.Toviewacopyof thislicense,visit http://

creativecommons.org/licenses/by-sa/3.0/ orsendaletterto CreativeCommons,171SecondStreet,Suite300,SanFrancisco,California,94105,USA.The templates here are made available on the same CC license terms as the original canvas.

(Cost Structure)

(Key

Partners)

(Key

Activities)

(Key

Resources)

(Revenue Streams)

(Customer

Relationships)

(Channels)

(Value

Propositions)

(Customer

Segments)


creativecommons.org/licenses/by-sa/3.0/ or senda lettertoCreative Commons,171SecondStreet,Suite 300,SanFrancisco,California,94105,USA.The templates here are made available on the same CC license terms as the original canvas.

Cost_1

Cost_2

Cost_3

Partner_1

Partner_2

Partner_3

Activity_1

Activity_2

Activity_3

Resource_1

Resource_2

Resource_3

Revenue_1

Revenue_2

Revenue_3

Relationship_1

Relationship_2

Relationship_3

Channel_1

Channel_2

Channel_3

Proposition_1

Proposition_2

Proposition_3

Segment_1

Segment_2

Segment_3

1. List Prioritized CustomerSegments/Personas

2. List Prioritized ValuePropositions

3. Note Linkages(if applicable)

(5 min)


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WHAT WELL COVER TODAY


makes them tick?

WHO ?PERSONAS

WHAT

?

PROBLEM

SCENARIOS &

ALTERNATIVES

VALUE

PROPOSITIONS &

ASSUMPTIONS


makes them tick?

WHO ?PERSONAS

WHAT

?

PROBLEM

SCENARIOS &

ALTERNATIVES

CUSTOMER

DISCOVERY &

EXPERIMENTS

VALUE

PROPOSITIONS &

ASSUMPTIONS

WHAT

IF?


makes them tick?


WHO ?PERSONAS

WHAT

?

PROBLEM

SCENARIOS &

ALTERNATIVES


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PROBLEMS(S)




use, etc.).

A certain PERSONAexistsHR and functional managers are in charge of

technical hires

and they struggle to effectively screen fortechnical skill sets, making the hiring processslower and more labor intensive and producingworse outcomes than they should reasonablyexpect.

Currently they implement a patchwork of callingreferences and asking a few probing questions.

By offering an easy, affordable, lightweighttechnical quizzing solution, Enable Quiz canacquire and retain these customer personas,delivering material value.

Enable Quiz example:

As a group, convergeyour product hypothesis

(5 min)


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WORKING YOUR PRODUCT HYPOTHESIS

A certain PERSONAexists PERSONA HYPOTHESIS

QUESTIONS

Does this person exist?

Can you identify them?

Do you understand them really well?

What do they think-see-feel-do in yourarea?

TOOLS

Photos

Think-See-Feel-Do

Discovery Interviews

Storyboards

Day in the Life Boards


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PROBLEMS(S)


PROBLEM HYPOTHESIS

QUESTIONS

Have you identified a discrete problem/need?

How important is it to the target

persona(s)?What alternatives do they use today? How?

TOOLS

Problem Scenario + Alternative + ValueProposition Trios

Discovery InterviewsStoryboards


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use, etc.).

VALUE HYPOTHESIS

QUESTIONS

How much better than the best alternativeis your product?

How obvious is that to the customer?

TOOLS

Structured Assumptions

Structured Experiments (including MVP)


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HYPOTHESIS-DRIVEN INNOVATION VIA LEAN STARTUP

Do I have real evidence from my buyer thatthis is compelling?

01 IDEA!

What is our value hypothesis and what areits key assumptions?

02 HYPOTHESIS

How do I definitely prove or disprove the

assumptions with a minimum of time andeffort?

03 EXPERIMENTAL DESIG N

04 EXPE RIM ENTATION

Am I reacting or am I focused onvalidating my pivotal assumptions?

Pivot or persevere?

VALUEHYPOTHESISsource: adapted from The Lean Startup


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02 HYPOTHESIS

VALUEHYPOTHESIS


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EXAMPLE: ENABLE QUIZ

Persona(s)Helen the HR Manager- responsible for sourcing and screening job candidates

Frank the Functional Manager- hiring manager responsible for acquiring and managing talent

ProblemScenario

Helen: hard to screen for technical skills

Frank: never has enough time for recruiting and doesnt want to be a jerk during interviews

AlternativesHelen: call references, take their word for it (on skills)

Frank: ask a few probing questions

Value Prop. A lightweight quizzing app that has Helen can use to do quick, effective screening.

What is the core value hypothesis?


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Core Value Hypothesis

If Enable Quiz offers companies that hire

engineers lightweight technical quizzes that

screen job candidates for engineering positions,

then these companies would trial, use, adopt, andpay for such a service.


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As a group, draft yourcore value hypothesis

If Enable Quiz offers companies that hire

engineers lightweight technical quizzes that

screen job candidates for engineering positions,

then these companies would trial, use, adopt, andpay for such a service.

As a group, convergeyour product hypothesis

(5 min)


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UNBUNDLING THE VALUE HYPOTHESIS INTO ASSUMPTIONS

If we [do something] for [persona], they will [respond in a certain way]

Example Assumptions (Enable Quiz)

If we get HR managers to a landing page with a demo, 10% will sign up forour email product announcements.

If we create position-specific quizzes for HR managers, theyll use them

~100% of the time and, after two positions, be willing to pay.

If we offer the service at [x] price with [y] supplemental assistance,companies that hire a lot of engineers will pay [z].


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TESTING YOUR ASSUMPTIONS VIA AN MVP

M

VP

inimum What is the fastest, cheapestway to validate or invalidate

this option so we give

ourselves more options onfuture success?


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iableWill it give us a definitive

result? What are theactionable metrics?

M

VP


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roductDoes it really require actualproduct? Can we use

alternative brands, channels?

M

VP


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roductiable

inimumis not necessarily actual software/product (seeconcierge MVP)

is a first and foremost learning vehicle

vs. a project plan

(OK to do those things but alwayssubordinatethem to the learning mission)

vs. a product development project

M

VP


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MVP Archetype Notes

Wizard of Oz Show or fake the customer experience

Concierge Hand create the user experience

Sales See if you can sell some.


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MVP Archetype Example Assumptions (Enable Quiz)

Wizard of Oz If we get HR managers to a landing page with a demo, 10% will sign up forour email product announcements.

Concierge

If we create position-specific quizzes for HR managers, theyll use them


SalesIf we offer the service at [x] price with [y] supplemental assistance,companies that hire a lot of engineers will pay [z].



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CASE STUDY: DROPBOX

OPPORTUNITYUnderlying demand and supportinginfrastructure ready for a great file sharing app.

CHALLENGEBuilding a great cross-platform app. requiredVC funding. VCs saw a space with lots ofexisting competitors struggling to get traction.


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CASE STUDY: DROPBOX

PersonaTom the Techie- early adopter who works on projects that require swapping a lot of files between a shifting

network of collaborators.

ProblemScenario

Its difficult to share files between a network of collaborators, particularly if theyre: big or numerous or change a

lot.

AlternativesMany existing products, but none of them super compelling and widely adopted.

Also, custom setups which work but are cumbersome to set up and maintain.

ValueHypothesis

If Dropbox created a file sharing service that truly felt transparent to the user across all major platforms- OSX, iOS,Windows, etc., then a mass market of users would prefer it over the alternatives, subscribe to it and use it over

time.

What Minimum Viable Product (MVP)?

That you can bootstrap?

That doesnt require software at all?


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THE WIZARD OF OZ MVP

Result: Excellent traction and

conversion to sign-ups.

Strong validation signal.

Created a synthetic web demo tailoredfor early market (techies), promoted it,and measured email sign-ups.


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OPPORTUNITYHiring quality technical talent is critical formany companies, but screening for skill sets is

time consuming and awkward.

CHALLENGEThe founding team wants to bootstrap withoutexternal funding so they need to focus on aspecific technical domain, one that will get

them strong early traction.


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Persona(s)Helen the HR Manager- responsible for sourcing and screening job candidates

Frank the Functional Manager- hiring manager responsible for acquiring and managing talent

ProblemScenario

Helen: hard to screen for technical skills

Frank: never has enough time for recruiting and doesnt want to be a jerk during interviews

AlternativesHelen: call references, take their word for it (on skills)

Frank: ask a few probing questions

ValueHypothesis

If Enable Quiz offers companies that hire engineers lightweight technical quizzes that screen job candidates for

engineering positions, then these companies would trial, use, adopt, and pay for such a service.





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THE CONCIERGE MVP

Metrics:

Do the HR managers use them? How often?

Do they want one for their next open position?

Do the functional managers care?

Work with a set of HR managers to produceposition-specific quizzes by hand on paper (orGoogle Forms, etc.).


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A QUESTION?There are dozens of technical/engineer topicsEnable Quiz could offer. How can they assesswhich topics are most marketable?


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THE GOOGLE ADWORDS MVP

Metrics:Which topics have the highest click-through rate (CTR)?

Which then convert to sign-ups to newsletters, etc.?

Pair their qualitative research with topics trendingonline and then run a series of Google AdWordscampaigns with different topics.


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CASE STUDY: LEONID SYSTEMS

OPPORTUNITY(2007) Major disruption and new productopportunities among telecom providers withintroduction of voice-over-IP and cloud

communications.

IT systems need to be rethought.

CHALLENGEAs a one-person startup, Leonid had actionable

ideas but not enough resources to execute anend-to-end solution.


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Persona(s) Chris the CTO- has funding and mandate to transition the business towards hosted services; many bases to cover

ProblemScenario

IT is the most expensive, most risky area when making changes to the business.

Alternatives1) Place large, risky bets on major new system upgrades. 2) Make small incremental updates (but risk not keeping

pace).

ValueHypothesis

Leonid will offer modular, integration-friendly applications in two critical areas: 1) services provisioning and 2) end

user self-service portals.





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Started with consulting as a concierge vehicleto create tactical solutions, focus problemscenarios, evolving to full-fledged product.

Result: Steady step-wise growth with

consistently better understanding of key

customer problem scenarios.


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CASE STUDY: ZAPPOS

OPPORTUNITY(1999) An observed problem scenario around

the difficulty of finding the right shoe at localretail and a giant (but nascent) market in online

retail.

CHALLENGEConsumers still in the early stages of adoptingand habituating to online retail. Founder (NickSwinmurn) wanted to bootstrap.


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Result:

It worked and the rest is history.

Photographed shoes and put them online toobserve whether anyone bought them.

CASE STUDY: ZAPPOS


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Persona(s) Sam the shoe-hound- knows what he wants but not where to get it.

ProblemScenario

Sam is unable to find the shoe he wants at local retailers, wasting time and getting frustrated.

Alternatives Possibly mail order or wait until hes in a bigger market to go to the store.

Value

Hypothesis

Make the shoe Sam wants accessible online and make sure he has a great experience so hell come back and not

have to think about where to find the shoe he wants anymore.




CASE STUDY: ZAPPOS


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CASE STUDY: SPRIG

Startup looking for early traction for investors:Whole Foods (deli) meets Uber.

OPPORTUNITYLarge opportunity to re-segment and disruptfood prep. and delivery business. Desire tomove fast and learn fast.

CHALLENGESome existing competitors and slow

fundraising process. Food prep. and deliveryrequires infrastructure.

source: as told to Lean Startup Circle, SF (Jan 2014)


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CASE STUDY: SPRIG

Persona(s) Paula the Professional- health conscious, short on time, moderate to high income, already uses similar serviceslike Uber.

ProblemScenario

I want to have a nice, healthy dinner with no hassle and at a price I can afford (like $12).

Alternatives Going to the store or an expensive, take-out, or a slow delivery service (>20 minutes).

Value

HypothesisIf Sprig offers Paula a healthy meal like you would order a cab (on Uber), then she would use and reuse the service.




* This is me interpolating/guessing on an item; not part of the Sprig teams explanation.


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THE CONCIERGE MVP

Result: Excellent traction and conversion to sign-ups.

Strong validation signal.

Created a synthetic web demo tailored for earlymarket (techies), promoted it, and measured emailsign-ups.


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CASE STUDY: PAUL HOWE & ASSOCIATES

OPPORTUNITYFunded startup team rapidly iterating throughB2C concepts with lightweightexperimentation.

One idea: Some people would like to know howmuch their stuff is worth.

CHALLENGEIterate to a successful concept while the time

and money permits.


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Persona ?

ProblemScenario

I have a lot of stuff around that I might want to sell and/or Im just generally curious about how much its worth, how

much Ive spent.*

Alternatives Going through credit card statements or receipts.

ValueHypothesis

If Paul Howe & Co. offered a service where you could quickly, automatically know how much your stuff is worth,

users would engage with such a service in large numbers.*




* This is me interpolating/guessing on an item; not part of the Sprig teams explanation.



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Result: They dont care. Time to move on to thenext concept.

Get a few sign-ups with access to email and bankaccount info. Review by hand on a concierge basisand compile a statement for them. Do they care?



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CASE STUDY: STEALTH PHOTO-SOCIAL STARTUP

OPPORTUNITYLots of exciting things happening in the photo-social space.

CHALLENGEThe team had several ideas but few resources.


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Persona Existing poster of photos. Personas: Martha the Mom, Pat the Party Planner, Teresa the Teen Social Butterfly

ProblemScenario

[I want to do something interesting with my photos so that my social graph rewards me with interest and acclaim]

Alternatives Manually enhance photos, use alternative enhancers/amplifiers like Instagram

ValueHypothesis

If we offers Facebook users a way to [do something novel] with their photos, they will try the service and convert to

a paid version of the app.






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ASSUMPTIONIf the user shares a photowith this treatment, theusers social network willlike and share the apps

output

What MVP?

That you canbootstrap?

That doesnt requiresoftware at all?


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MVPCreate the target outputby hand (concierge style)

Does anyone care?


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ABOUT SOFTWARE, TESTING MOTIVATION, AND MVPS

You have to put the magic in the software.

(Not the other way around)

Concierge and other non-software MVPscan be pretty magical.

Find 100 people that are really into it and

you can probably grow.


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ConciergeIf we create position-specific quizzes for HR managers, theyll use them




Individually, begin decomposing your core valuehypothesis into testable assumptions

Pair them with ideas for experimentation (includingMVPs if applicable)


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SCALE?

PIVOT?

PRODUCT &

PROMOTION

USER STORIES

& PROTOTYPES

CUSTOMER

DISCOVERY &

EXPERIMENTS

VALUEPROPOSITIONS &

ASSUMPTIONS

SHOW

ME

?

WHAT

IF?


Do we understandthis person? Whatmakes them tick?




WHO ?PERSONAS

WHAT

?

PROBLEM

SCENARIOS &

ALTERNATIVES &

&

&


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WHAT WE COVERED LAST TIME

VALUEPROPOSITIONS &

ASSUMPTIONS


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Do I have real evidence from my buyer thatthis is compelling?

01 IDEA!


02 HYPOTHESIS

How do I definitely prove or disprove the

assumptions with a minimum of time andeffort?

03 EXPERIMENTAL DESIG N

04 EXPE RIM ENTATION

Am I reacting or am I focused onvalidating my pivotal assumptions?

Pivot or persevere?

VALUEHYPOTHESISsource: adapted from The Lean Startup


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to cause the persona to act (purchase,use, etc.).

VALUE HYPOTHESISQUESTIONS

How much better than the best alternativeis your product?

How obvious is that to the customer?

TOOLS

Structured Assumptions

Structured Experiments (including MVP)


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WHERE YOU SHOULD BE NOW

VALUEPROPOSITIONS &

ASSUMPTIONS


WHO ?PERSONAS

WHAT

?

PROBLEM

SCENARIOS &

ALTERNATIVES

Personas,

including Think-

See-Feel-Do

(Converged)

Problem Scenarios

Alternatives

Value Propositions

(Converged)


WHO ?PERSONAS

WHAT

?

PROBLEM

SCENARIOS &

ALTERNATIVES

Interview Guide

2 (or more) Interviews

Product Hypothesis(Converged)

Value Hypothesis

Assumptions for Value

Hypothesis


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WHAT WELL COVER TODAY

CUSTOMER

DISCOVERY &

EXPERIMENTS

VALUEPROPOSITIONS &

ASSUMPTIONS

WHAT

IF?


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WHAT WELL WORK ON TODAY

Finding the RightPROBLEM Finding the RightSOLUTION

time

alternativ

es



Personas

ProblemsAlternatives

Field

Discovery

Value Hypothesis &

Assumptions

Product

Hypothesis



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YOUR VENTURE, THE EXPERIMENT

Component Notes

What assumption will this test? How?

What is/are the pivotal metric(s)?

What is the threshold for true (validated) vs.

false (invalidated)?

What will you do next if the result is true?

False?

How much time, money will it take to set up?

Roughly, what will it take for each individual

test? Subsequent tests?Roughly, how long will it take for each test torun and produce definitive, actionable results?

EXAMPLE ENABLE QUIZ CONCIERGE MVP


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EXAMPLE: ENABLE QUIZ CONCIERGE MVP

Component Notes


If we create position-specific quizzes for HR managers, theyll use them ~100% of

the time and, after two positions, be willing to pay.

If the HR managers use the quiz, theyll send through


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EXAMPLE: ENABLE QUIZ ADWORDS MVP

Component Notes

What assumption will this test? How? If Enable Quiz offers its quizzing solution in the area of [x], customers will subscribe.

What is/are the pivotal metric(s)?

What is the threshold for true (validated) vs.false (invalidated)?

absolute click-through-rate; wed like to see >=2%

relative to CTR (on this basis well select our top 10 topics)

What will you do next if the result is true?

False?

True (along with previous): Build a simple1.0 with selected topics.

False (all CTRs


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EXAMPLE: ENABLE QUIZ CONCIERGE MVP

Component Notes


If we create position-specific quizzes for HR managers, theyll use them ~100% of

the time and, after two positions, be willing to pay.

If the HR managers use the quiz, theyll send through


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