the lean product playbook by dan olsen

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MaY 2015

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MaY 2015

Copyright*©*2015*Olsen*Solu7ons*

My*Background*!  Educa7on*

!  Engineering*background*!  Stanford*MBA*!  Web*development*and*UX*design*

!  Deep*Product*Management*Experience*!  Submarine*design*!  Led*Quicken*Product*Management*at*Intuit*!  Led*Product*Management*at*Friendster*!  CEO*&*Cofounder*of*YourVersion,*�Pandora*for*your*news�*!  PM*consultant:*Facebook,*Box,*MicrosoT,*YouSendIt*!  Organizer:*Lean*Product*&*UX*Meetup*Silicon*Valley*

*Slides*at*hVp://slideshare.net/dan_o**

What*does*“Lean”*mean?*

!  Ar7culate*hypotheses*!  Iden7fy*fastest*way*to*test*!  Keep*scope*small:*minimum*viable*product*(MVP)*

!  Test*with*customers*!  Learn*and*iterate*!  Achieve*productamarket*fit*

Copyright*©*2015*Olsen*Solu7ons*

Sound*good?*

Copyright*©*2015*Olsen*Solu7ons*

What*is*ProductaMarket*Fit?*

The*Lean*Product*Process*

The*Lean*Product*Process*

1. Determine*your*target*customer*2.  Iden7fy*underserved*customer*needs*3. Define*your*value*proposi7on*4. Specify*your*MVP*feature*set*5. Create*your*MVP*prototype*6. Test*your*MVP*with*customers*

Copyright*©*2015*Olsen*Solu7ons*

Transporta7on*within*100*miles*of*my*home*

Soccer*Mom***

Speed*Demon*

•  Carry*kids*&*gear*•  Safety*•  Fuel*economy*

•  Go*fast*•  Looks*cool*•  Makes*me*look*cool*

*****

Target*Customer*Has*Dis7nct*Needs*Highalevel*need:**Target*Customer:****

Detailed*needs:***

Ideal*Product:*

Soccer*Mom* Speed*Demon*

The*Lean*Product*Process*

1. Determine*your*target*customer*2.  Iden7fy*underserved*customer*needs*3. Define*your*value*proposi7on*4. Specify*your*MVP*feature*set*5. Create*your*MVP*prototype*6. Test*your*MVP*with*customers*

Copyright*©*2015*Olsen*Solu7ons*

**

!  Russians:*pencil*

!  NASA:*space*pen*($1*M*R&D*cost)*

**

**

Example:*!  Ability*to*write*in*space*(zero*gravity)*

Problem*Space*vs.*Solu7on*Space*!  Problem*Space*

!  A*customer*problem,*need,*or*benefit*that*the*product*should*address*

!  A*product*requirement*

!  Solu7on*Space*!  A*specific*implementa7on*to*address*the*need*or*product*requirement**

Copyright*©*2015*Olsen*Solu7ons*

Problem*Space*vs.*Solu7on*Space:*Product*Level*

Problem*Space*(user*benefit)*

Solu7on*Space*(product)*

TurboTax

TaxCut

Pen and paper

Prepare my taxes

File my taxes

Check my taxes

Maximize deductions

Reduce audit risk

Copyright*©*2015*Olsen*Solu7ons*

Problem*vs.*Solu7on*Space:*Feature*Level*Problem*Space*

*Solu7on*Space*

Save time filing taxes

Save time preparing taxes

Maximize my tax deductions

Check my return

Reduce my audit risk

Help me prepare taxes

Empowerment/ Confidence

Save Time

Save Money

Tax Interview Wizard

Audit Risk Analyzer

Tax Return Error Checker

Tax Data Downloader

Electronic Tax Return Filing

Tax Deduction Finder

Copyright*©*2015*Olsen*Solu7ons*

Priori7zing*Customer*Needs:*Importance*vs.*Sa7sfac7on*

Impo

rtance*of*U

ser*N

eed*

User*Sa7sfac7on*with*Current*Alterna7ves*

Compe77veMarket*Opportunity*

Low* High*

Low*

High*

Not*Worth*Going*ATer*

Copyright*©*2015*Olsen*Solu7ons*

Customer*Value*

Copyright*©*2015*Olsen*Solu7ons*

Impo

rtance*of*U

ser*N

eed*

User*Sa7sfac7on*with*Current*Alterna7ves*Low* High*

Low*

High*

Kano*Model:*User*Needs*&*Sa7sfac7on*User*Sa7sfac7on*

User*Dissa7sfac7on*

Performance*(more*is*beVer)*

Delighter*(wow)*

Need*not*met*

Need*fully*met*

Must*Have*

Needs*&*features*migrate*over*7me*

Copyright*©*2015*Olsen*Solu7ons*

Copyright*©*2015*Olsen*Solu7ons*

Importance*vs.*Sa7sfac7on**Ask*Users*to*Rate*for*Each*Feature*

Recommended*reading:*�What*Customers*Want�*by*Anthony*Ulwick*

Bad*

Great*

The*Lean*Product*Process*

1. Determine*your*target*customer*2.  Iden7fy*underserved*customer*needs*3. Define*your*value*proposi7on*4. Specify*your*MVP*feature*set*5. Create*your*MVP*prototype*6. Test*your*MVP*with*customers*

Copyright*©*2015*Olsen*Solu7ons*

What*is*Your*Value*Proposi7on?*

! Which*user*benefits*are*you*providing?*! How*are*you*beVer*than*compe7tors?** Compe&tor)A) Compe&tor)B) You)Must*Have*Benefit*1* Y* Y* Y*

Performance*Benefit*1* High* Low* Med*

Performance*Benefit*2* Low* High* Low*

Performance*Benefit*3* Med* Med* High*

Delighter*Benefit*1* Y* a* a*

Delighter*Benefit*2* a* a* Y*

Copyright*©*2015*Olsen*Solu7ons*

The*Lean*Product*Process*

1. Determine*your*target*customer*2.  Iden7fy*underserved*customer*needs*3. Define*your*value*proposi7on*4. Specify*your*MVP*feature*set*5. Create*your*MVP*prototype*6. Test*your*MVP*with*customers*

Copyright*©*2015*Olsen*Solu7ons*

What*is*an*MVP?*

Courtesy*of*Jussi*Pasanen*See*Aaaron*Walter’s*book*Designing'for'Emo-on' Copyright*©*2015*Olsen*Solu7ons*

Breaking*Features*Down*into*Chunks*

Copyright*©*2015*Olsen*Solu7ons*

Must Have 1

Performance 1

Delighter 1

Delighter 2

Must Have 2

Performance 2

Performance 3

Benefits:

M1A P1A D2A M2A P2A

P3B

Features:

P1B D2B P2B

P3C

P3A

P1C

P1D

Product*Roadmap:*Features*by*Version*or*Time*

Copyright*©*2015*Olsen*Solu7ons*

Must Have Benefit 1

Performance Benefit 1

Performance Benefit 3

Delighter Benefit 1

Performance Benefit 2

Must Have Benefit 2

Delighter Benefit 2

M1A

Time

v1 v1.5 v2 v2.5

M2A

P3A

P1B

P3B

P2A

P1A

D2A

P3C

D2B MVP

candidate

The*Lean*Product*Process*

1. Determine*your*target*customer*2.  Iden7fy*underserved*customer*needs*

3. Define*your*value*proposi7on*4. Specify*your*MVP*feature*set*5. Create*your*MVP*prototype*6. Test*your*MVP*with*customers*

Copyright*©*2015*Olsen*Solu7ons*

The*UX*Design*Iceberg*

Copyright*©*2015*Olsen*Solu7ons*

What most people see and react to

What good product people think about

Genng*Customer*Feedback:*Problem*Space*vs.*Solu7on*Space*

! Customers*CAN’T*ar7culate*problem*space*! Customers*CAN*react*to*solu7on*space*! That’s*why*you*need*something*tangible*to*show*to*customers*to*get*good*feedback*

Copyright*©*2015*Olsen*Solu7ons*

Design*Ar7facts:*Interac7vity*vs.*Fidelity*

Copyright*©*2015*Olsen*Solu7ons*

Hand*sketch*

Interac7vity*

Fidelity*

Interac7ve*Prototype*

Sta7c*Wireframe**

Clickable*Wireframe**

Mockup**

Clickable*Mockup***

**Balsamiq:*balsamiq.com****InVision:*invisionapp.com*

The*Lean*Product*Process*

1. Determine*your*target*customer*2.  Iden7fy*underserved*customer*needs*3. Define*your*value*proposi7on*4. Specify*your*MVP*feature*set*5. Create*your*MVP*prototype*6. Test*your*MVP*with*customers*

Copyright*©*2015*Olsen*Solu7ons*

What*Are*You*Going*to*Get*Feedback*&*Learnings*About?*

Problem*Space*(your*mental*model)*

Solu7on*Space*(what*users*can*react*to)*

Customer*Understanding*

(needs*&*preferences)*

Feature*Set*

UX*Design* Messaging**

Copyright*©*2015*Olsen*Solu7ons*

�Ramen�*User*Feedback*for*Startups*

! Anyone*can*do*it!*!  Ingredients:*

! Solu7onaspace*product/mockup*to*test*! 1*customer*(with*laptop/phone*if*tes7ng*code)*! 1*desk*! 1*person*to*conduct*the*session*! Pen*and*paper*! Op7onal*noteataker*and*observers*

Copyright*©*2013*Olsen*Solu7ons*

Typical*Format*for*User*Tes7ng*Session*!  5*a*10*min:*Ask*ques7ons*to*understand*user*needs*and*solu7ons*they*currently*use*

!  30*a*50*min:*User*feedback*!  Show*user*product/mockup*! Nonadirected*as*much*as*possible*! When*necessary,*direct*user*to*aVempt*to*perform*a*specific*task*

!  5*a*10*min:*Wrapaup*!  Answer*any*user*ques7ons*that*came*up*!  Point*out/explain*features*you*want*to*highlight*!  Ask*them*if*they*would*use*the*product*

Copyright*©*2015*Olsen*Solu7ons*

Dos*&*Don’ts*of*User*Tes7ng*Sessions*!  Do*

!  Explain*to*the*user:*!  Their*feedback*will*help*improve*the*product*!  Not*to*worry*about*hur7ng*your*feelings*!  �Think*Aloud*Protocol�*

!  Ask*user*to*aVempt*the*task,*then*be*a*fly*on*the*wall*!  Ask*nonaleading,*openaended*ques7ons*!  Take*notes*and*review*them*aTerwards*for*takeaaways*

!  Don’t*!  Ask*leading*or*closeaended*ques7ons*!  �Help�*the*user*or*explain*the*UI*(e.g.,*�click*over*here�)*!  Respond*to*user*frustra7on*or*ques7ons*(un7l*test*is*over)*!  Get*defensive*!  Blame*the*user*

Copyright*©*2015*Olsen*Solu7ons*

Copyright*©*2015*YourVersion*

Itera7ng*Your*Product*Vector*Based*on*User*Feedback*in*Solu7on*Space*Problem*Space*

(your*mental*model)*Solu7on*Space*

(what*users*can*react*to)*

*Customer*Feedback*

Mockups*/*Code*

Copyright*©*2015*Olsen*Solu7ons*

Problem*Space*

Solu7on*Space*

Copyright*©*2015*Olsen*Solu7ons*

Copyright*©*2015*Olsen*Solu7ons*

Case*Study*on*ProductaMarket*Fit:*Marke7ngReport.com*

ProductaMarket*Fit*Case*Study:*Marke7ngReport.com*

! My*consul7ng*client*(CEO)*had*an*idea*for*a*new*product*

! Team:*me,*CEO,*head*of*marke7ng,*UI*design*consultant*

! Goal:*! Validate*productamarket*fit*quickly,*cheaply*without*wri7ng*a*single*line*of*code*

! Determine*if*there*was*a*business*opportunity*here*

Copyright*©*2015*Olsen*Solu7ons*

ProductaMarket*Fit*Case*Study:*Developing*Product*Concept*

!  Product*Concept*was*�marke7ng*report�*that*let*consumers*control*the*direct*mail*that*they*receive*

!  Concept*was*fuzzy*with*various*components,*so*I*broke*it*into*2*different*�flavors�:*#1*�Marke7ng*Shield�:*Service*to*reduce/stop*junk*mail*#2*�Marke7ng*Saver�:*Opt*in*&*receive*moneyasaving*offers*

Copyright*©*2015*Olsen*Solu7ons*

Clustering*Poten7al*User*Benefits*to*Create*Product*Concepts*

Reduce Junk Mail

Find out what �they� know about you

Money Saving Offers

Compare Yourself to Others

Social Networking

Marketing Report

Marketing Score

Marketing Profile

Save Trees

�Shield� Concept �Saver� Concept

Copyright*©*2015*Olsen*Solu7ons*

Copyright*©*2015*Olsen*Solu7ons*

Copyright*©*2015*Olsen*Solu7ons*

!  Telephone*recruit*of*prospec7ve*customers*! Wrote*phoneascreen*ques7onnaire*to*create*rough*target*customer*segmenta7on*! Wanted*users*who*work*fulla7me*&*use*internet*! Fit*for*optain*offers:*use*coupons,*Costco*membership*! Fit*for*an7ajunk*mail:*use*paper*shredder,*block*caller*ID*

!  Paid*each*person*$75*!  Scheduled*3*groups*of*2*or*3*people*to*discuss*each*product*concept*for*90*minutes*

! Moderated*each*group*through*the*paper*mockups*to*hear*their*feedback*

ProductaMarket*Fit*Case*Study:*Recrui7ng*People*

Copyright*©*2015*Olsen*Solu7ons*

ProductaMarket*Fit*Case*Study:*Findings*on*Concepts*&User*Benefits*

Reduce Junk Mail

Find out what �they� know about you

Money Saving Offers

Compare Yourself to Others

Social Networking

Marketing Report

Marketing Score

Marketing Profile

Save Trees

Legend

Strong appeal

Some appeal

Low appeal

�Shield� Concept �Saver� Concept

Copyright*©*2015*Olsen*Solu7ons*

Copyright*©*2015*Olsen*Solu7ons*

ProductaMarket*Fit*Case*Study:*Summary*

! 4*weeks*from*1st*mee7ng*to*validated*product*concept*with*zero*coding*

! Reasonable*cost*! 1*round*of*itera7on*on*product*concept*!  Iden7fied*compelling*concept*that*users*are*willing*to*pay*$10/month*for*

! Trimmed*away*nonavaluable*pieces*! You*can*achieve*similar*results*

Copyright*©*2015*Olsen*Solu7ons*

The*Lean*Product*Process*

1.  Determine*your*target*customer*2.  Iden7fy*underserved*customer*needs*3.  Define*your*value*proposi7on*4.  Specify*your*MVP*feature*set*5.  Create*your*MVP*prototype*6.  Test*your*MVP*with*customers*Iterate:*

*"*HypothesizeaDesignaTestaLearn*loop**"*Improve*productamarket*fit*

Copyright*©*2015*Olsen*Solu7ons*

Qualita7ve*vs.*Quan7ta7ve*Learning*New)Product)Qualita7ve*interviews*

Exis&ng)Product)Quan7ta7ve*data*

Oprah) Spock)

Copyright*©*2015*Olsen*Solu7ons*

The*Lean*Product*Playbook*

! Published*by*Wiley*! Comes*out*June*2nd**! Hardcover*&*ebook*! Available*for*preorder*on*Amazon:*bit.ly/leanplaybook*

Questions? @danolsen*olsensolu7ons.com*slideshare.net/dan_o*leanproductplaybook.com**Book:*bit.ly/leanplaybook*****