venture design 1 day solving the right problem v1

7/21/2019 Venture Design 1 Day Solving the Right Problem v1

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Copyright 2014 Cowan Publishing

VentureDesign

COWAN+

Solving the Right

Problem


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OUR MODE OF OPERATION TODAY

Show

WHAT? WHY?

Ill show you ideas andexamples.

Do

YOU TRY

Youll draft items-individually and as agroup.

Share

DID IT MATTER?

Is it delivering on thetarget propositions? If not,

why not?


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DOUBLE DIAMOND MODEL OF DESIGNFinding the Right

PROBLEM

Finding the Right

SOLUTION

time

alternatives

divergence convergence divergence convergence

source: adapted from The Design of Everyday Things


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THINK SEE

FEEL DO

PERSONAS

Who?

X

PROBLEMSCENARIOS &ALTERNATIVES

What?

VALUEPROPOSITIONS& ASSUMPTIONS

What if?

!

USERSTORIES &PROTOTYPES

How?

Scale?

Pivot?

PRODUCT &PROMOTION

/

CUSTOMERDISCOVERY &EXPERIMENTS

Tell me?

THE VENTURE DESIGN PROCESS


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THE VENTURE DESIGN PROCESS (IN REVERSE)

!USERSTORIES &PROTOTYPES

Did the implementationdeliver on the story?

PRODUCT &PROMOTION

/


How did thecustomer/userreact?


!

Was theimplementedstory relevant tothe proposition?

X


Is problemrelevant? Is thepropositionbetter vs.alternatives?

THINK SEE

FEEL DO

PERSONAS

Do weunderstand thisperson? Whatmakes themtick?


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THINK SEE

FEEL DO

PERSONAS

Who?

X


What?


What if?

!


How?

Scale?

Pivot?

PRODUCT &PROMOTION

/


Tell me?



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DESIGN THINKING- PERSONAS

ALEX COWAN

AlexanderCowan.com

@cowanSF


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DESIGN THINKING- PERSONAS

ALEX COWAN

AlexanderCowan.com

@cowanSF


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02 DIAGNOSING USER NEEDS & PROBLEMS

The twin anti-poles of design failure

Doing preciselywhat the user asks

Assuming you know whatsbest and ignoring the user

!"#$%


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VA

RI

ED

ivid

eal

ctionable

dentifiable

xactetailed


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PREPPING A VENTURE DESIGN TEMPLATE

ALEX COWAN

AlexanderCowan.com

@cowanSF

ref.alexandercowan.com/pdesign


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WARM UP: ADD POSITIONING STATEMENT TO G.DOC

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].

For [hiring managers] who [need to evaluate technical talent], [Enable

Quiz] is a [talent assessment system] that [allows for quick and easy

assessment of topical understanding in key engineering topics]. Unlike[formal certifications or ad hoc questions], our product [allows for

lightweight but consistent assessments of technical talent].

EXAMPLE


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DISCOVERY & LEARNING: THINK-SEE-FEEL-DO

ALEX COWAN

AlexanderCowan.com

@cowanSF


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EXERCISE- PERSONA CREATION

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

now.)

Sees

Feels

Does

EXAMPLE: HELEN THE HR MANAGER


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EXERCISE: PERSONA DISCOVERY QUESTIONS

Question Form Examples Questions (Enable Quiz)

Tell me about [yourself in the role of the persona]? - Tell me about being an HR manager?- How did you choose that line of work? Why?- 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?


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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

Feels

Does



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CAN YOUR PERSONA HELP YOU DO THIS?

capture Attention

via Google AdWord

secure the

infamous

click

engage

Interest, Desire

on landing page

Action,

Retention

Onboarding

( )


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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 copy

How 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!)


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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.)



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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?


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For your top person, complete Think-See-Feel-Do

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 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.



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EXERCISE: CREATE AN ADWORD AD: SEE ANGLE


2. Draft ad copy


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


THIS!)


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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?)



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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?


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EXERCISE: CREATE AN ADWORD AD: FEEL ANGLE


2. Draft ad copy


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


THIS!)


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

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



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

Tell me about the last time?- What would it be like in your perfect world?

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


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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 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 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. If she likes it, shell bring it to the functional managers, who are usually the ultimate decision

makers since without their support she 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 practices to make the purchase and use of

Enable Quiz effective.



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EXERCISE: CREATE AN ADWORD AD: DO ANGLE


2. Draft ad copy


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


THIS!)


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ALEX COWAN

AlexanderCowan.com

@cowanSF

XPROBLEM SCENARIO

DISCOVERY & LEARNING: PROBLEM SCENARIOS


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ALEX COWAN

AlexanderCowan.com

@cowanSF

XWhat job(s) are you doing for

the customer?

What existing need or

behavior are you fulfilling?

PROBLEM SCENARIO



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ALEX COWAN

AlexanderCowan.com

@cowanSF

?

X

ALTERNATIVE(S)

PROBLEM SCENARIO



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ALEX COWAN

AlexanderCowan.com

@cowanSF

?

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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EXERCISE- PROBLEM SCENARIOS

Brainstorm Problem Scenario

+Alternative Pairs.

ALTERNATIVE(S)?

PROBLEM SCENARIOXProblem: 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

ends up taking their word for it.


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CREATE AN ADWORD AD: PROBLEM ANGLES


2. Draft ad copy

How does the draft follow from your personas?Are you speaking in the language your customers use to talk about their

problems?

(NO RULE AGAINST UPDATING YOUR PROBLEM SCENARIOS WHILE

YOU DO THIS!)


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ALEX COWAN

AlexanderCowan.com

@cowanSF

YOUR VALUE PROPOSITIONS !

ALTERNATIVE(S) ?

PROBLEM SCENARIO X



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ALEX COWAN

AlexanderCowan.com

@cowanSF

X

Are they better enough than the

alternative(s)?

!

?

YOUR VALUE PROPOSITIONS

ALTERNATIVE(S)

PROBLEM SCENARIO



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EXERCISE- VALUE PROPOSITIONS

Add Value Propositions to

your top Problem Scenario +

Alternative Pairs

YOUR VALUE

PROPOSITIONS!

ALTERNATIVE(S)?

PROBLEM SCENARIOXProblem: Helen the HR Manager doesn't

have a software engineering background, so

it's hard for her to screen engineering

candidates. She ends up sending Frank the

Functional Manager too many unqualified

candidates.

Alternative: She calls references and mostly

ends up taking their word for it.

Value Proposition: New ability for meaningfulscreening of technical candidates, increasing

% of successful hires and lowering Frank the

Functional Manager's workload on recruiting.


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CREATE AN ADWORD AD: VALUE ANGLES


2. Draft ad copy


(NO RULE AGAINST UPDATING YOUR PROBLEM SCENARIOS WHILE

YOU DO THIS!)


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and they have a certain

PROBLEMS(S)

where theyre currently using

certain ALTERNATIVE(S)

and I have a VALUEPROPOSITIONthats better enough

than the alternatives to cause the

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

A certain PERSONAexists

AND NOW THE PRODUCT HYPOTHESIS

!

?

X


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EXERCISE: YOUR PRODUCT HYPOTHESIS

and they have a certain

PROBLEMS S

where theyre currently using

certain ALTERNATIVE(S)

and I have a VALUE

PROPOSITIONthats betterenough than the alternatives to

cause the persona to act

(purchase, use, etc.).

A certain PERSONAexistsHR and functional managers are in charge oftechnical hires

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

producing worse outcomes than they shouldreasonably expect.

Currently they implement a patchwork ofcalling references and asking a few probingquestions.

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

Enable Quiz example:


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THE BUSINESS MODEL CANVAS

!"#$&'() #$*#+,-$,. /-.,( 0", 1(,20#3, 1'44'-$500(#6/0#'-78"2(, 5*#), 9:;


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SEGMENT TO VALUE PROPOSITION MAPPING

!"#$&'() #$*#+,-$,. /-.,( 0", 1(,20#3, 1'44'-$500(#6/0#'-78"2(, 5*#), 9:;


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RECOMMENDED NEXT STEPS

Homework (details: bit.ly/hi-ilab)1. Finish a working set of personas

2. Finish a working set of problem scenario-alternative-value proposition trios.

3. Finish the above in priority order on the Business Model Canvas

4. Finish a working product hypothesis and positioning statement.

GOOGLE DOC TEMPLATE: http://bit.ly/venturetemplate

RESOURCES: bit.ly/vdesign


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As

Presenter

As

Audience1) What is this? (Use positioningstatement)2) Who is the persona? What kind of shoesdo they wear?3) What problem scenario(s) are you

looking at? What alternatives does thepersona use now?4) Whats your value proposition?5) Whats your product hypothesis?6) What do you need to learn more about?

- Focus on the process; avoid editorial- Ask a lot of questions- Think about it like an investor

EXERCISE: PEER PRESENTATION


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4 TYPES OF LEAN HYPOTHESES

ALEX COWAN

AlexanderCowan.com

@cowanSF

PERSONAHYPOTHESIS

PROBLEMHYPOTHESIS

VALUEHYPOTHESIS

CUSTOMER CREATIONHYPOTHESIS


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PERSONA HYPOTHESIS

ALEX COWAN

AlexanderCowan.com

@cowanSF

Does this person exist?

Can you identify them?

Do you understand them really well?

What do they think-see-feel-do in your area?


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PROBLEM HYPOTHESIS

ALEX COWAN

AlexanderCowan.com

@cowanSF

Have you identified a discrete problem/need?

How important is it to the target persona(s)?

What alternatives do they use today? How?


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VALUE HYPOTHESIS

ALEX COWAN

AlexanderCowan.com

@cowanSF

How much better than the best alternative is your

product?

How obvious is that to the customer?


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USABILITY HYPOTHESIS

ALEX COWAN

AlexanderCowan.com

@cowanSF

Do we know what actions the customer wants to

execute in order to connect with our value proposition?

Do we have an interface which delivers that?

Is that happening?


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CUSTOMER CREATION HYPOTHESIS

ALEX COWAN

AlexanderCowan.com

@cowanSF

How will you get the customers: attention, interest,

desire, action, onboarding, retention?

How will you know if its working?


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THINK SEE

FEEL DO

PERSONAS

Who?

X


What?


What if?

!


How?

Scale?

Pivot?

PRODUCT &PROMOTION

/


Tell me?



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EVIDENCE-BASED INNOVATION VIA LEAN STARTUP

Do I have real evidence from my buyerthat this is compelling?

01 IDEA!

What are the key assumptions requiredto make this business work?

02 HYPOTHESIS

How do I definitely prove or disprove theassumptions with a minimum of timeand effort?

03 EXPERIMENTAL DESIG N

04 EXPE RIM ENTATION

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

Pivot or persevere?


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ASSUMPTIONS: ORGANIZED AND PRIORITIZED

Priority Key Assumption Needs Proving? Experimentation

1[A key assumption about thebusiness]

[Whether it needsproving

[Experiment toprove or disprove]

1

Hiring managers would

prefer a lightweight quiz appover calling references andad hoc probing.

Yes

* Customer interviews on problem

scenario* Value testing through minimumviable product

2Managers want to be able toadd their questions as well

Yes* Show prototypes with choices* Test in beta

2 Parents have smart phones No n/a

Focus on strategic,pivotal assumptions


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Do I have real evidence from my buyerthat this is compelling?

01 IDEA!

What are the key assumptions requiredto make this business work?

02 HYPOTHESIS





Pivot or persevere?


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Pivot or persevere?


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4 TYPES OF LEAN HYPOTHESES

PERSONAHYPOTHESIS

PROBLEMHYPOTHESIS

VALUEHYPOTHESIS

ALEX COWAN

AlexanderCowan.com

@cowanSF


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TESTING YOUR HYPOTHESIS VIA MVP

M

VP

inimum What is the fastest,cheapest way to

validate orinvalidate this

option so we give

ourselves more

options on futuresuccess?


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M

VPiable Will it give us adefinitive result?

What are the

actionable metrics?

inimum


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M

VProduct

Does it really

require actual

product? Can weuse alternative

brands, channels?iable

inimum


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is not necessarily actual software/product(see concierge MVP)

is a first and foremost learning vehicle

vs. a project plan

(OK to do those things but alwayssubordinate them to the learning mission)

vs. a product development project

M

VProductiable

inimum


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THE ARCHETYPES

Archetype Notes

Wizard of Oz Show (or fake) the experience, sell the experience.

Concierge Hand create the user experience.

Sales See if you can sell some.


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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

Problem

Scenario

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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ENABLE QUIZ CORE VALUE HYPOTHESIS

Lightweight technical quizzes

that screen job candidates for

engineering positions would

improve the recruiting process forcompanies that hire engineers-

enough that they would

subscribe to Enable Quiz.


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TACTICAL ASSUMPTIONS

Archetype Examples (Enable Quiz)

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

Concierge

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

use them ~100% of the time and, after two positions, be

willing to pay.

Sales

If we offer the service at [x] price with [y] supplemental

assistance, companies that hire a lot of engineers will pay [z].

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


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YOUR VENTURE, YOUR 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 to run and produce

definitive, actionable results?


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EXAMPLE: ENABLE QUIZ CONCIERGE MVP

Component Notes

What assumption will this test? How?

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

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

2) 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?Of the 100 possible technical topics to offer, Enable Quiz should select the 10 best

options.

What is/are the pivotal metric(s)?

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

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

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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CLASS PRESENTATIONS

As Presenter

1) What is it? Use pos. statement.

2) Who is it for? What shoes do they

wear?

3) What problem does it solve?

4) What are your ideas for an MVP?

As Audience

- Focus on the process; avoid

editorial

- Ask a lot of questions

- Think about it like an investor


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POINT OF EMPHASIS

You are

the mostimportant

part of the

experiment

Make sure

youre

learning


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RECOMMENDED NEXT STEPS

Homework (details: bit.ly/hi-ilab)1. Draft a working set of personas

2. Draft a working set of problem scenario-alternative-value proposition trios.

3. Organize the above in priority order on the Business Model Canvas4. Finish a working product hypothesis and positioning statement.

5. Finish a working interview guide to validate your persona and problem hypotheses.

6. Complete at least 5 customer interviews.

7. Draft a working set of assumptions

8. Design your experiments and execute.

GOOGLE DOC TEMPLATE: http://bit.ly/venturetemplate

RESOURCES: bit.ly/vdesign


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Copyright 2014 COWAN+

FINI

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venture design 1 day solving the right problem v1

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