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Alex Cowan
INN VATIN INTHE ENTERPRISEPUTTING YOUR IDEAS IN MOTION
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Copyright 2014 COWAN+
ALEX COWANAlexanderCowan.com
@cowanSF
ABOUT ME
Entrepreneur (5x)Intrapreneur (1x)
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ALEX COWANAlexanderCowan.com
@cowanSF
ABOUT ME
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ABOUT ME
www.alexandercowan.comALEX COWAN
AlexanderCowan.com
@cowanSF
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SCALE-FRIENDLY VS. INNOVATION-FRIENDLYScaleFriendly
Innovation
Friendly
$ !?
? ! ? ? ?
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SCALE-FRIENDLY VS. INNOVATION-FRIENDLY
? !
#1: Start with theindividual
#2: Anchor to
problems,not solutions
#3: Become abetter storyteller
#4: Test early, test often
#5: Learn first, scale second
#6: Go see
#7: Kill zombieideas
#8: Innovate for yourbusiness type
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1Start with the individual
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Empathy Creativity
DESIGN THINKING
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ALEX COWANAlexanderCowan.com
@cowanSF
DESIGN THINKING- APPLICATIONS
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Entry1
Urinate as they go2
Edges preferred3
Speedy4
PB > cheese5
Empathy
DESIGN THINKING- APPLICATIONS
ALEX COWANAlexanderCowan.com
@cowanSF
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Check & Repair
UV Validation
Relevant Placement
A Better Mouse Trap
Powered by Better Bait
Creativity
1
2
3
4
5
DESIGN THINKING- APPLICATIONS
ALEX COWANAlexanderCowan.com
@cowanSF
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DESIGN THINKING- PERSONAS
ALEX COWANAlexanderCowan.com
@cowanSF
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DESIGN THINKING- PERSONAS
ALEX COWANAlexanderCowan.com
@cowanSF
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NOT A GOOD PERSONA
Women
Age 28-45
Has kids Socialize with other moms
Online with Facebook
86% said theyd like to be more
organized
70% said theyd use anapplication that organizes them
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Women
Age 28-45
Has kids Socialize with other moms
Online with Facebook
86% said theyd like to be more
organized
70% said theyd use anapplication that organizes them
NOT A GOOD PERSONA
Bullet points are almostnever vivid or detailed
Stock photo- not real
This is a hugepopulation- not exact
These responses are fakeactionable- survey responses
like this are unreliable
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THE ART OF CUSTOMER DISCOVERY
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A BETTER PERSONA
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 her creative, 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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A BETTER PERSONAthe use of a first name helps
w/ vividness (a little)
these full sentences look like agood start towards something
vivid and detailed
this is a real photo of arelevant person taken with an
iPhone in the real world
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 her creative, 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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DISCOVERY & LEARNING: THINK-SEE-FEEL-DO
ALEX COWANAlexanderCowan.com
@cowanSF
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VA
RI
ED
The personashould makeanyone who readsit feel like theyveactually met thisperson.
ALEX COWANAlexanderCowan.com
@cowanSF
ivid
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VA
RI
ED ALEX COWANAlexanderCowan.com@cowanSF
If the personadoesnt inform
how you sell stuffand build stuff,why bother?
ctionableivid
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VA
RI
ED ALEX COWANAlexanderCowan.com@cowanSF
eal Good personasarent created incubicles. Gowhere the persona
is and observe.
ividctionable
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VA
RI
ED ALEX COWANAlexanderCowan.com@cowanSF
Make sure youcan identify andtarget these
personas, or youwont be able tofind a use forthem.
dentifiable
ividctionable
eal
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VA
RI
ED
ivid
ALEX COWANAlexanderCowan.com
@cowanSF
dentifiable
Everyone is notyour customer.
Make sure thepersonas aredistinct so you canapply relevantfocus.
xact
ctionable
eal
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VA
RI
ED
dentifiable
xactetailed
People arecomplicated andso good personasare usually prettysubstantial.
ctionable
eal
ivid
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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 for a project youre working
(4 min)
use 1 index card/persona
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A LITTLE GAME FOR BETTER PERSONA DISCOVERY
Day in the Lifewe look at a few photos for a given persona
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
(not a full picture, just snippets)
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(RUN DIL)
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EXERCISE- PERSONA CREATION
Mary the Working Mom (B, U)
Susan the Stay-at-Home Mom (B, U)
Douglas the Dad (U)
Nathan the Nanny (U)
Ivan the Infant (U)
Which are buyers? Users? Both?
Note with a B and/or a U on the Index Card
(1 min)
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EXERCISE- PERSONA CREATION
(2 min)
Can you think of 5 real examples for each?
Use the back of your index cards
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EXERCISE- PERSONA CREATIONWhich have the most compelling need, desire?
If you could only pitch 1 persona type, which? Sort top to bottom
(1 min)
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PERSONAS: THINK-SEE-FEEL-DO
ALEX COWANAlexanderCowan.com
@cowanSF
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EXERCISE- PERSONA CREATION (6 MIN)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. Professionaldevelopment is something theyve identified that they want to do better, but the functional managers arent engagedenough 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 organizeselect into these courses.
Feels: Helen feels like crap whenever they have to let someone go. She hates it. The employee hates it. The managerhates 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. MostHR 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 talkabout it. If she likes it, shell bring it to the functional managers, who are usually the ultimate decision makers sincewithout their support she cant get the system online and working. Post-sale, Helen will help keep the programorganized, moving, and otherwise on the functional managers radar. All this is predicated on Helen being equippedwith the right messages, facts, and best practices to make the purchase and use of Enable Quiz effective .
EXAMPLE: HELEN THE HR MANAGER
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PERSONA MEETS HALLWAY CONVERSATION
So, I think feature [xyz] shouldreally be at the top of our list
Yeah?
Tell me about the user.Who are they? What
are they doing rightnow?
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2Anchor to Problems, Not Solutions
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NEEDFINDING
ALEX COWANAlexanderCowan.com
@cowanSF
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ALEX COWANAlexanderCowan.com
@cowanSF
XPROBLEM SCENARIO
NEEDFINDING
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@cowanSF
XWhat job(s) are you doing for
the customer?
What existing need or
behavior are you fulfilling?
PROBLEM SCENARIO
NEEDFINDING
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@cowanSF
?
X
ALTERNATIVE(S)
PROBLEM SCENARIO
NEEDFINDING
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@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
NEEDFINDING
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EXERCISE- VALUE PROPOSITIONS
Brainstorm Problem Scenario-
Alternative-Value Proposition
Trios.
ALTERNATIVE(S)?
PROBLEM SCENARIOXProblem: Mary would like to be morestructured and consistent in her use ofallowances to teach the link between workand financial rewards.
Alternative: Track the completion of chores,homework, etc. manually using paper, boards,notes on her phone.
(7 min.)
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@cowanSF
YOUR VALUE PROPOSITIONS !
ALTERNATIVE(S) ?
PROBLEM SCENARIO X
NEEDFINDING
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@cowanSF
X
Are they better enough than the
alternative(s)?
!
?
YOUR VALUE PROPOSITIONS
ALTERNATIVE(S)
PROBLEM SCENARIO
NEEDFINDING
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EXERCISE- VALUE PROPOSITIONS
Add Value Propositions to
your top Problem Scenario +
Alternative Pairs
YOUR VALUE
PROPOSITIONS!
ALTERNATIVE(S)?
PROBLEM SCENARIOXProblem: Mary would like to be morestructured and consistent in her use ofallowances to teach the link between workand financial rewards.
Alternative: Track the completion of chores,homework, etc. manually using paper, boards,notes on her phone.
Value Proposition: Use our app to easily andconsistently implement best practices tailoredto your situation.
(3 min.)
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EXERCISE- VALUE PROPOSITIONS
Prioritize your value propositions-
if you could only pitch one, which?
After that? Etc.
(2 min.)
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and they have a certain
PROBLEMS(S)
where theyre currently using
certain ALTERNATIVE(S)
and I have a VALUE
PROPOSITIONthats better enough
than the alternatives to cause the
persona to act (purchase, use, etc.).
A certain PERSONAexists
NEEDFINDING: 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. (4 min.)
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'-$500(#6/0#'-78"2(, 5*#), 9:;
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THE INDEPENDENT VARIABLE
Value
Propositions
Customer
Segments
!"#$ &'() #$*#+,-$,. /-.,( 0", 1(,20#3, 1'44'-$ 500(#6/0 #'-78"2(,5*#), 9:;
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CUSTOMER SEGMENTS VS. PERSONAS
!
CustomerSegments
Personas
ALEX COWANAlexanderCowan.com
@cowanSF
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EXERCISE- MAPPING PERSONAS, VALUE PROPS
1. List your prioritized personas
(Customer Segments block)
and Value Propositions
2. Map your personas to your
Value Propositions
This work is licensed undertheCreativeCommons Attribution-ShareAlike3.0 Unported License. To view acopy ofthis license, visithttp://
creativecommons.org/licenses/by-sa/3.0/orsend aletterto CreativeCommons, 171 Second Street, Suite300, San Francisco, California, 94105, USA.The templates here are made available on the same CC license terms as the original canvas.
Activity_1
Activity_2
Activity_3
Proposition_1
Proposition_2
Proposition_3
Persona_1
Persona_2
Persona_3
(3 min)
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PEER PRESENTATIONS PREP!
(4 min.)
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 forlightweight but consistent assessments of technical talent].
EXAMPLE
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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 youlooking 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
(5 min./ each)
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AVOID THE TWIN ANTI-POLES OF DESIGN FAILURE
Doing preciselywhat the user asks
Assuming you know whatsbest and ignoring the user
!"#$
%
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NEEDFINDING MEETS HALLWAY CONVERSATION
Here are a list of SEOkeywords related to theexciting new solution we built
What problems doesthis solve for thecustomer? What wordsdo they use to describeit?
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3Become a Better Storyteller
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STORYBOARDING: ORIGINS
copyright Fred Moore & Disney Pictures
ALEX COWANAlexanderCowan.com
@cowanSF
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Personas
STORYBOARDING EXAMPLE
ALEX COWANAlexanderCowan.com
@cowanSF
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Personas
STORYBOARDING EXAMPLE
ALEX COWANAlexanderCowan.com
@cowanSF
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ENABLE QUIZ: EXAMPLE PROBLEM SCENARIOS
Copyright 2014 Cowan Publishing
X
Helen the HR Manager
Its hard for me to screen ontechnical skill sets and I end up
sending Frank unqualifiedrecruits.
Frank the Functional Manager
I have limited time and I dontwant to be a jerk. Its hard to
screen for all the relevanttechnical skill sets.
PERSONA
PROBLEM
SCENARIO
- Call references
- Take their word for it
- A few probing questions
- Take their word for it?ALTERNATIVE(S)
!VALUEPROPOSITIONSNew ability for meaningfulscreening of technicalcandidates, increasing % ofsuccessful hires and loweringFranks workload on recruiting.
Less time doing interviews, andbetter hires sooner.
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STORYBOARDING A PROBLEM SCENARIO
AFTER
BEFORE
BEFORE
(using the
Alternative)
AFTER
(with the Value
Proposition)
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SKETCHING YOUR NARRATIVE
source: adapted from Nir Eyals Hook Framework
How does the problem
scenario initiate?How is the alternative
executed?
How is the persona
gratified?
REWARDACTIONTRIGGER
source: adapted from Nir Eyals Hook Framework
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STORYBOARDING A PROBLEM SCENARIO
}}
}1 PanelStoryboard
Area
Notes
AreaOptionalnotes here tosupplement your storyboard
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EXERCISE: BEFORE AND AFTER BOARDS
Using the squares, create a before and then after
storyboard- 3 panels each
BEFORE
(using theAlternative)
AFTER
(with the ValueProposition) (10 min.)
STORY ARC
Trigger
Action
Reward
source: adapted from Nir Eyals Hook Framework
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AI
DA
OR
ttentionnterest
esirection
nboardingetention
How do they firstfind out that you,your propositionexist?
How do you breakthrough the noisefloor?
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AI
DA
OR
ttentionnterest
esirection
nboardingetention
What is it thatengages them with
your proposition?How will youconnect?
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AI
DA
OR
ttentionnterest
esirection
nboardingetention
Are you connectingwith an importantproblem scenario?Is your VP better
enough than thealternative?
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AI
DA
OR
ttentionnterest
esirection
nboardingetention
What is absoluteminimum set ofactions required bythe customer to
have you deliver ontheir problem?
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AI
DA
OR
ttentionnterest
esirection
nboardingetention
How do they
become a regular,habitual user? Howwill you know ifthats happening?
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AI
DA
OR
ttentionnterest
esirection
nboardingetention
How do youdeepen theirinvolvement?Investment? How
do you get themtalking about it?
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STORYBOARDING AIDA(OR)
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STORYBOARDING AIDA(OR)
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STORYBOARDING AIDA(OR)
Thinks: I care about evaluating tech hires but Im
busy- Ill take a quick look if I can.
Sees: A post on social media from a peer she
regards well.
Feels: Theres a twinkling in the distance but Im stillfirmly rooted in my to-do list in the present.
Does: Calls or emails her peer to hear about her
experience.
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STORYBOARDING AIDA(OR)
Thinks: This sounds interesting-
can I make it work here (at my
company).
Sees: A clear proposition and
narrative on next steps towards asuccessful outcome (on the Enable
Quiz site).
Feels: Initially suspect, her
excitement about racking up a
meaningful win in an important area
grows.Does: Puts it on her to-do list as a
set of items. Mentions it to
colleagues.
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STORYBOARDING AIDA(OR)
Thinks: I understand the proposition and
I keep seeing wins for it here at work.
Sees: Situations where she really wishes
she had a quiz to use instead of the
hodge podge she uses.
Feels: This could be one of her major
wins for the year- exciting!
Does: Move Enable Quiz to the top of her
list.
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STORYBOARDING AIDA(OR)
Thinks: I need Franks buy-in: theyre his candidates
and hell need to help me create the quizzes.
Sees: Frank struggling to find time to interview
candidates. Having trouble with skill sets on his team.Feels: Nervous and excited to bring it to Frank.
Does: Gets in front of Frank with a simple proposal to
just try the system out for their next open position.
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STORYBOARDING AIDA(OR)
Thinks: Here we go- I hope this
works.Sees: A job description and a set of
quiz options she needs to pair.
Feels: A little uneasy- like playing
scrabble in a language shes just
learning.Does: Creates a draft and then
goes to Frank with questions that
she makes as specific as possible.
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STORYBOARDING AIDA(OR)
Thinks: This was a win- its part of ourroutine and it works great.
Sees: That her screening process and
hiring outcomes are measurably
improved.
Feels: I love this thing- everyone shoulduse it.
Does: Shares about her win on social
media and is willing to try new things.
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Using the
squares, create
a 6-panel
AIDA(OR)
storyboard
(10 min)
EXERCISE: AIDA STORYBOARD (10 MIN)
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DESIGN THINKING- USING PERSONAS
Personas Problem ScenariosAlternatives
Your Value Propositions
SELLINGSTUFF
Whos buying?
Where?
Why?
Who are weselling to?
Where do wereach them?
With whatproposition?
MAKINGSTUFF
What does theuser actually do?What does theuser (most) want?
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ALEX COWANAlexanderCowan.com
@cowanSF
WHY IS DESIGN THINKING HARD?
Design Thinking
Now
Survival
Then
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NEEDFINDING MEETS HALLWAY CONVERSATION
We have an amazing newthing now where users can [x]their [y]
Cool. Who does this?Whats the trigger?
Whats the first thingthat happens?
Then what?How do we know ifthey have a goodoutcome?
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4Test Early, Test Often
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EVIDENCE-BASED INNOVATION VIA LEAN STARTUP
Do I have real evidence from my buyerthat this is compelling?
01 ID EA!
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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EVIDENCE-BASED INNOVATION VIA LEAN STARTUP
Do I have real evidence from my buyerthat this is compelling?
01 ID EA!
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EVIDENCE-BASED INNOVATION VIA LEAN STARTUP
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
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and they have a certain
PROBLEMS(S)
where theyre currently using
certain ALTERNATIVE(S)
and I have a VALUE
PROPOSITIONthats better enoughthan the alternatives to cause the
persona to act (purchase, use, etc.).
A certain PERSONAexists
NEEDFINDING: THE PRODUCT HYPOTHESIS
!
?
X
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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 wouldprefer a lightweight quiz appover calling references andad hoc probing.
Yes
* Customer interviews on problemscenario* 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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FOCUS AND THE LEAN STARTUP
Crossing ts
Dotting isDoesnt matter unless ithelps prove (or disprove)
your pivotal assumptions
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FOCUS AND THE LEAN STARTUP
Subjectall youractivities +metrics to
that litmustest.
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4 TYPES OF LEAN HYPOTHESES
PERSONAHYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
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PERSONA HYPOTHESIS
ALEX COWANAlexanderCowan.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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PERSONA HYPOTHESIS- CHECKLIST
Hypothesis Experiment
! This persona exists (in non-trivialnumbers) and you can identify them.
- Can you think of 5-10 examples?- Can you set up discovery interviews with them?- Can you connect with them in the market at large?
! You understand this persona well. - What kind of shoes do they wear?- Are you hearing, seeing the same things across your discovery
interviews?! Do you understand what they Think in
your area of interest?
- What do you they mention as important? Difficult? Rewarding?- Do they see the work (or habit) as you do?- What would they like to do better? To be better?
! Do you understand what they See inyour area of interest?
- Where do they get their information? Peers? Publications?- How do they decide whats OK? Whats aspirational?
! How do they Feel about your area ofinterest?
- What are their triggers for this area? Motivations?- What rewards do they seek? How do they view past actions?
! Do you understand what they Do in yourarea of interest?
- What do you actually observe them doing?- How can you directly or indirectly validate thats what they do?
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PERSONA HYPOTHESIS- OUTPUTS & PIVOTS
Common Pivots1) Re-segmentation (more granular)
2) Revision of area of interest/problem space
3) Strategic pivot
Template: bit.ly/personast
Outputs
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EARLY MARKET VS. LATER MARKET
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EARLY MARKET VS. LATER MARKET
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EXERCISE: WHOS YOUR EARLY MARKET?
1) How do they differ within your existing persona definitions?
Example: At Enable Quiz, theyre startups doing lots of hiring
2) How will you locate them?
Example: At Enable Quiz, theyll read tech rags to see who just got funded.
3) How will they help you transition to your next segment?
Example: At Enable Quiz, via case studies, references, and incented posts on LinkedIn.
Answer each as best you can: ~ 1 min/each
(4 min.)
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4 TYPES OF LEAN HYPOTHESES
PERSONAHYPOTHESIS
PROBLEMHYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
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PROBLEM HYPOTHESIS
ALEX COWANAlexanderCowan.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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PROBLEM HYPOTHESIS- CHECKLIST
Hypothesis Experiment
! Youve identified at least one discreteproblem (job, desire, etc.)
- Can you describe it in a sentence? Do others get it?- Can you identify current alternatives?
! The problem is important - Do subjects mention it unprompted in discovery interviews?- Do they respond to solicitation (see also value and customer creation
hypotheses)?
! You understand current alternatives - Have you seen them in action?- Do you have artifacts (spreadsheets, photos, posts, notes, whiteboard
scribbles screen shots ?
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PROBLEM HYPOTHESIS- OUTPUTS & PIVOTS
Outputs Common Pivots1) Pivot to a more material problem area
2) Strategic pivot
Template: bit.ly/personast
ALTERNATIVE(S) ?
PROBLEMSCENARIO(S) X
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EVIDENCE-BASED INNOVATION VIA LEAN STARTUP
04 EXPE RIM ENTATION
Am I reacting or am I focused onvalidating my pivotal assumptions?
Pivot or persevere?
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4 TYPES OF LEAN HYPOTHESES
PERSONAHYPOTHESIS
PROBLEMHYPOTHESIS
VALUEHYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
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VALUE HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
Do you have a value proposition thats better
enough than the current alternatives?
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VALUE HYPOTHESIS- CHECKLIST
Hypothesis Experiment
! Your product is better enough than thealternative to make sales (traffic, etc.)
- You successful execute a (paid?) concierge MVPor- You successfully pre-sell the productor- You successfully drive drive sign-ups online
!
Customers will readily perceive thissuperiority if you [x]
-
(see above)
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PROBLEM HYPOTHESIS- OUTPUTS & PIVOTS
Outputs Common Pivots1) Pivot from pre-conceived solution/
proposition2) Pivot to new problem area
3) Strategic pivot
Template: bit.ly/personast
VALUE
PROPOSITION(S)
X
?!
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4 TYPES OF LEAN HYPOTHESES
PERSONAHYPOTHESIS
PROBLEMHYPOTHESIS
VALUEHYPOTHESIS
CUSTOMER CREATIONHYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
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CUSTOMER CREATION HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
Do you have a profitable, repeatable recipe
for acquiring and retaining customers?
Do you have a system for monitoring it and
trying new things?
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03 PROPOSING TESTABLE SOLUTIONS
0 Day 30 Day ID
DOES IT WORK?
Deep testing on real
data with a very
small set of users.
90 Day
DOES IT STICK?
Post deploy, are
users engaged at
expected levels? If
not, why not?
DID IT MATTER?
Is it delivering on the
target propositions?
If not, why not?
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LEAN STARTUP MEETS HALLWAY CONVERSATION
Im super excited about [thisidea]. Im working on thebusiness case to sellmanagement so we can startbuilding
Sound neat.
Whats the centralproposition? Maybetheres a way we can
bootstrap some proofpoints.
That would supercharge your businesscase.
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5Learn First, Scale Second
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WHERE ARE YOU NOW?
MVP
Nascent
Product-MarketFit(?) Scale
PIVOTALASSUMPTIONS
PRODUCT
ORG.
PARTNERS,CHANNELS
Founders
N/A
Probably toosoon
Test, revise,test...
MVP
Customer dev.team
Probably toosoon
Validated- nowtactical
Focus: efficiency,extension
Full functionalorganization
Yeah, maybe?
Validated- nowtactical
What would astartup do??
Scalableorganization
Yeah, definitely!
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LEAN STARTUP MEETS HALLWAY CONVERSATION
Management is really excitedabout your project. Imallocating your 50 FTEs fornext year.
Wow, thanks.
But I dont need 50FTEs, yet. Id just befinding them stuff to do.
Heres what I need andhow Ill stayaccountable for thoseresources.
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6Go See
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4 TYPES OF LEAN HYPOTHESES
PERSONAHYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
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EXERCISE: PERSONA DISCOVERY QUESTIONS (5 MIN)
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?
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]? - Would you show me your interview guide? Example notes? - Whatthe vetting process was like on the last few candidates?
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PERSONA HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
Everyone is my customer!
Possibly true at some point, but
you need to nail early adopters
to get traction.
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PERSONA HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
There are a few customers to
focus on- Im not sure which
one.
Pick the one with the most
compelling need and choose.
Or guess. But dont diffuse your
focus.
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PERSONA HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
I cant find anyone to interview
Then I would step back. This
almost certainly means youll
have trouble with the next steps
as well.
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PERSONA HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
I think I get this persona, but Im not
sure about the whole think-see-feel-do
thing.
Think-see-feel-do is not the only
way to go but its pretty good.
Solid personas are the stitch in
time that saves 9.
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KEY TO GOOD PERSONA DISCOVERY
PERSONAHYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
1) Create a level of person-ability and comfort
2) Acclimate them to the idea that youre not just
wondering about the general picture
3) Assure them by demonstration that youre not
selling anything or advocating a point of view
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4 TYPES OF LEAN HYPOTHESES
PERSONAHYPOTHESIS
PROBLEMHYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
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EXERCISE: PROBLEM DISCOVERY QUESTIONS
(5 min.)
Question Form Examples Questions (Enable Quiz)
What are the top [5] hardest things about [area ofinterest]?
- What are the top 5 most difficult things about making good techhires? Why?
How do you currently [operate in area of interest- ifyou dont have that yet]? ORHeres what I got on[x]- is that right?
- How do you currently screen for technical skill sets?- Who does what?- How does that work?
Whats [difficult, annoying] about [area of interest]? - Whats difficult about screening technical candidates?- How do you validate they have the right skill set?- How are the actual outcomes? Examples?
What are the top 5 things you want to do betterthis year in [general area of interest]?
- What are the top 5 things you want to do better in technicalrecruiting and hiring?
Why is/isnt [your specific area of interest on thatlist]?
- Why is/isnt screening for technical candidates on that list?
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PROBLEM HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
During customer discovery interviews, the
subjects consistently mentioned our problem
scenario
Excellent! Thats a goodpreliminary validation youre on
the right track.
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PROBLEM HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
We did a questionnaire and >80% of
subjects said they wish [our problem
area] was better.
Dont trust questionnaires,especially with leading
questions. Focus on face-to-
face.
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PROBLEM HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
I am in this business/I am one of these personas and I
know I have this problem- and Im sure it exists for
most others like me.
Good start but approach
discovery like you know nothing.
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PROBLEM HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
Our product doesnt really address a problem,
exactly, so this isnt relevant for us.
There are no new problems orhabits. Make sure you know
what youre after.
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PROBLEM HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
Our product is so fundamentally novel that
there are no current alternatives.
(see previous)
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PROBLEM HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
Weve mapped out the alternative and observed
or key personas in action with them.
Excellent! Youre ready tosynthesize, tune and test your
value proposition!
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KEY TO GOOD PROBLEM DISCOVERY
PROBLEMHYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
1) Avoid prompting, progressing to it only as a
last ditch effort
2) Get them in storytelling mode- focus onspecifics and details
3) Focus on just getting them talking- mind the
time but be careful about interrupting for course
corrections
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VALUE HYPOTHESES
PERSONAHYPOTHESIS
PROBLEMHYPOTHESIS
VALUEHYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
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EXERCISE: VALUE DISCOVERY QUESTIONS
(2 min.)
Question Form Examples Questions (Enable Quiz)
How do you decide on and buy [stuff in generalarea of interest]?
- How do you buy [access to recruiting services, resumesearches, HR software, training, prof. ed. books]?
-
Whos involved? Whats the scope of individual discretion?How much did you spend [last period]? - How much do you spend on [items of interest]?
[most of this needs to be obtained through direct experimentation (next
section); the following are useful but probably not pivotal]
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TESTING YOUR HYPOTHESIS VIA MVP
M
VP
inimum What is the fastest,
cheapest way tovalidate orinvalidate thisoption so we give
ourselves moreoptions on futuresuccess?
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TESTING YOUR HYPOTHESIS VIA MVP
M
VP
iable Will it give us adefinitive result?What are theactionable metrics?
inimum
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TESTING YOUR HYPOTHESIS VIA MVP
M
VProduct
Does it reallyrequire actual
product? Can weuse alternativebrands, channels?
iable
inimum
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TESTING YOUR HYPOTHESIS VIA MVP
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
VProduct
iable
inimum
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THE MVP LITMUS TEST
output !=outcomeIs your MVP driving anextraordinary outcome?
Or is it a vehicle to create outputas usual?
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CASE STUDY: DROPBOX
OPPORTUNITYUnderlying demand and supportinginfrastructure ready for a great file sharingapp.
CHALLENGEBuilding a great cross-platform app.required VC funding. VCs saw a spacewith lots of existing competitors strugglingto get traction.
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CASE STUDY: DROPBOX
Persona
ProblemScenario
Alternatives
Value Prop.
Tom the Techie- early adopter who works on projects that require swapping a lot of files between ashifting network of collaborators.
Its difficult to share files between a network of collaborators, particularly if theyre: big or numerous orchange a lot.
Many existing products, but none of them super compelling and widely adopted.Also, custom setups which work but are cumbersome to set up and maintain.
A file sharing service that truly feels transparent to the user across all major platforms- OSX, iOS,Windows, etc.
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 andconversion to sign-ups.
Strong validation signal.
Created a synthetic demotailored for early market(techies), promoted it, and
measured email sign-ups.
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EXAMPLE: ENABLE QUIZ
OPPORTUNITYHiring quality technical talent is critical formany companies, but screening for skillsets is time consuming and awkward.
CHALLENGEThe founding team wants to bootstrapwithout external funding so they need tofocus on a specific technical domain, onethat will get them strong early traction.
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EXAMPLE: ENABLE QUIZ
Persona(s)
ProblemScenario
Alternatives
Value Prop.
Helen the HR Manager- responsible for sourcing and screening job candidatesFrank the Functional Manager- hiring manager responsible for acquiring and managing talent
Helen: hard to screen for technical skillsFrank: never has enough time for recruiting and doesnt want to be a jerk during interviews
Helen: call references, take their word for it (on skills)Frank: ask a few probing questions
A lightweight quizzing app that has Helen can use to do quick, effective screening.
What Minimum Viable Product (MVP) for deciding on the right first topics?
That you can bootstrap?
That doesnt require software at all?
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THE PRE-SALES MVP
Target Outcome: Informedselection of starter topics (and
baseline on initial conversions).
Ran Google AdWordcampaigns across top rankingtechnical topics, measuring
click through rate and landingpage sign-ups.
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CASE STUDY: LEONID SYSTEMS
OPPORTUNITYMajor disruption and new productopportunities among telecom providerswith introduction of voice-over-IP and cloudcommunications.
IT systems need to be rethought.
CHALLENGEAs a one-person startup, Leonid hadactionable ideas but not enough resources
to execute an end-to-end solution.
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CASE STUDY: LEONID SYSTEMS
Persona
ProblemScenario
Alternatives
Value Prop.
Chris the CTO- has funding and mandate to transition the business towards hosted services; manybases to cover
IT is the most expensive, most risky area when making changes to the business.
1) Place large, risky bets on major new system upgrades. 2) Make small incremental updates (but risknot keeping pace).
Leonid will offer modular, integration-friendly applications in two critical areas: 1) services provisioningand 2) end user self-service portals.
What Minimum Viable Product (MVP)?
That you can bootstrap?
That doesnt require software at all?
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LEONID MVPs: FROM CONSULTING TO PRODUCT
Started with consulting as aconcierge vehicle to createtactical solutions, evolving to
full-fledged product.
Result: Steady step-wisegrowth with consistently betterunderstanding of key customerproblem scenarios.
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CASE STUDY: ZAPPOS
OPPORTUNITYAn observed problem scenario around thedifficulty of finding the right shoe at localretail and a giant (but nascent) market inonline retail (1999).
CHALLENGEConsumers still in the early stages ofadopting and habituating to online retail.Founder (Nick Swinmurn) wanted tobootstrap.
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CASE STUDY: ZAPPOS
Persona
ProblemScenario
Alternatives
Value Prop.
Sam the shoe-hound- knows what he wants but not where to get it.
Sam is unable to find the shoe he wants at local retailers, wasting time and getting frustrated.
Possibly mail order or wait until hes in a bigger market to go to the store.
Make the shoe Sam wants accessible online and make sure he has a great experience so hell comeback and not have to think about where to find the shoe he wants anymore.
What Minimum Viable Product (MVP)?
That you can bootstrap?
That doesnt require software at all?
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CASE STUDY: ZAPPOS
Result: It worked and the restis history.
Photographed shoes and putthem online to observewhether anyone bought them.
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CASE STUDY: SPRIG
source: as told to Lean Startup Circle, SF (Jan 2014)
Startup looking for early traction forinvestors: Whole Foods (deli) meets Uber.
OPPORTUNITYLarge opportunity to resegment anddisrupt food prep. and delivery business.Desire to move fast and learn fast.
CHALLENGESome existing competitors and slowfundraising process. Food prep. and
delivery requires infrastructure.
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CASE STUDY: SPRIG
Persona*
ProblemScenario
Alternatives
Value Prop.
Paula the Professional- health conscious, short on time, moderate to high income, already usessimilar services like Uber.
I want to have a nice, healthy dinner with no hassle and at a price I can afford (like $12).
Going to the store or an expensive, take-out, or a slow delivery service (>20 minutes).
A healthy meal like you would order a cab (on Uber): Dinner on Demand Prep Time is 3 Taps Delectable Prices (Sprig Home Page)
What MVP?
That you can bootstrap?
That doesnt require software at all?
* This is me interpolating/guessing on an item; not part of the Sprig teams explanation.
source: as told to Lean Startup Circle, SF (Jan 2014)
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SPRIG MVP & EXPERIMENTATION
Result: Excellent uptake andvaluable observations on theproposition and customer
journey.
Hire a chef for the day, put theoffer on Eventbrite, emailfriends - concierge MVP.
source: as told to Lean Startup Circle, SF (Jan 2014)
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CASE STUDY: STEALTH PHOTO-SOCIAL STARTUP
OPPORTUNITYLots of exciting things happening in thephoto-social space.
CHALLENGE
The team had several ideas but fewresources.
C S S S O O SOC S
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CASE STUDY: STEALTH PHOTO-SOCIAL STARTUP
Persona
ProblemScenario
Alternatives
Value Prop.
Existing poster of photos. Personas: Martha the Mom, Pat the Party Planner, Teresa the Teen SocialButterfly
[I want to do something interesting with my photos so that my social graph rewards me with interest andacclaim]
Manually enhance photos, use alternative enhancers/amplifiers like Instagram
[This is something users can do with photos that will generate engaging content for their social graph]
USER JOURNEY PHOTO SOCIAL
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USER JOURNEY: PHOTO-SOCIAL
ASSUMPTIONUsers social networkwill like and share theapps output
What MVP?
That you canbootstrap?
That doesnt requiresoftware at all?
PHOTO SOCIAL STARTUP MVP & EXPERIMENTATION
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PHOTO-SOCIAL STARTUP: MVP & EXPERIMENTATION
MVPCreate the target outputby hand (conciergestyle)
Does anyone care?
ASSUMPTIONUsers social networkwill like and share theapps output
CASE STUDY RAPID EQUIPPING FORCE (REF)
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CASE STUDY: RAPID EQUIPPING FORCE (REF)
OPPORTUNITYPost traumatic stress disorder (PTSD)creating extremely serious mental andphysical health issues for servicepersonnel and veterans.
CHALLENGEDespite substantial spending, currentapproaches to diagnosis and treatmentunder-delivering.
CASE STUDY RAPID EQUIPPING FORCE
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CASE STUDY: RAPID EQUIPPING FORCE
Persona
ProblemScenario
Alternatives
Value Prop.
Salem the Solider- receives relatively good treatment for acute injuries but concussive injuries that arenot immediately debilitating often go undiagnosed and/or untreated or under-treated.
The brain is a complex instrument- you cant just patch it up. Concussions that are not immediatelydebilitating can still lead to serious conditions.
Its part of the culture to ignore or minimize injuries that dont immediately put you out of commission.
The most common alternative is after-the-fact treatment within the Veterans Administration hospitalswhere very little history is available.
Just about anything that would improve outcomes would improve many lives.
CASE STUDY RAPID EQUIPPING FORCE
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CASE STUDY: RAPID EQUIPPING FORCE
REF head Peter Newell got a tipto look at what NASCAR wasdoing to measure, diagnose,and treat concussive injuries.
source: NASCAR
CASE STUDY RAPID EQUIPPING FORCE
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CASE STUDY: RAPID EQUIPPING FORCE
Working with R&D partners, REFdeveloped a prototype system forsoldiers to use on the front lines.
Pressure Sensors (4): 100 psi max at ~50kHz sample rate 3 Axis Accelerometer (Body and Head): 1250 G max at ~50 kHz
sample rate
3 Axis Gyro (Head): 2000 dps max gyro at 1-2 KHz sample rate
GPS: Time stamping of event data
Wireless Communication to the
Vehicle Sensor System
VIA RFID - Uniquely identifies soldier
position when in a vehicle
Battery Power Self contained (2 each CR-123A)
source: adapted from Innovation Leadership Board and REF
MVP ARCHETYPES
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MVP ARCHETYPES
The Concierge MVP:manually provide the product experience youwant the customer to have
The Pre-Sales MVP:hand sold and/or promoted online
The Focal Product:
minimal implementation focused only onfeatures required for core value proposition
ABOUT MVPS AND PRODUCTS IN GENERAL
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ABOUT MVPS AND PRODUCTS IN GENERAL
You have to put the magic inthe software.
(Not the other way around)
Concierge and other non-software MVPs can be prettymagical.
Find 100 people that are reallyinto it and you can probablygrow.
EXERCISE: YOUR (CONCIERGE) MVP
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EXERCISE: YOUR (CONCIERGE) MVP
Component Notes
What is the experience you want to provide? - What are the preconditions and general steps?
What measurable outcome would validateyour value proposition?
- How will you know if its delivering value?- This could be: a) measurably better outcomes b) activitylevels c) follow-on interest
How will you find participants and what arethe core screening/qualification criteria?
- How will you know if the subjects are relevant to yourcore hypothesis?
(5 min.)
LEAN AT LARGE
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LEAN AT LARGE
Priority Key Assumption Needs Proving? Experimentation
1[A key assumptionabout the business]
[Whether it needsproving
[Experiment toprove or disprove]
1
Parents want toorganize the
distribution of
Yes* Post the proposition in ads online
* Measure sign-ups on a landing page2
Parents want to linkallowances to chores
Yes* Show prototypes with choices* Test in beta
2Parents have smartphones
No n/a
PLANNING WITH LEAN AT LARGE
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PLANNING WITH LEAN AT LARGE
Lets assume.
Then test.
Lets not
argue
PLANNING WITH LEAN AT LARGE
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PLANNING WITH LEAN AT LARGE
VALUE HYPOTHESIS
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VALUE HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
How much better than the best alternative is your
product?
How obvious is that to the customer?
VALUE HYPOTHESIS
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VALUE HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
Over 80% of the people we asked said theyd buy
our product!
Cant trust it- Yellow Walkmandata
VALUE HYPOTHESIS
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VALUE HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
We did a concierge test and [got paid, got asked
by the customer when they could buy our
product].
Excellent! Youre on the fasttrack of iterating to a successful
outcome. Time to look at an
actual MVP.
VALUE HYPOTHESIS
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VALUE HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
We finished our concierge test. They liked it but as
a result it was a long way to conclusive.
Now that you know how, could
you get paid for the next one?
Try other test and then if
negative, consider pivot.
VALUE HYPOTHESIS
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VALUE HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
We made a bunch of pre-release sales, but
theyre non-binding.
Thats OK (as long as you made
the agreement with a real
decision maker). Youve got a
reasonably good validation of
value hypothesis.
VALUE HYPOTHESIS
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VALUE HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
We couldnt make any pre-release sales.
Why not? No interest? Thats
bad. Need to sell real product
(and thats really why), consider
whats behind that.
VALUE HYPOTHESIS
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VALUE HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
We found a few AdWord-landing page combinations
that had better than expected click through and
conversion rates to email sign-ups.
Excellent! Thats a good
validation of your value
hypothesis and youre gotten a
jump start on your Customer
Creation Hypotheses.
VALUE HYPOTHESIS
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VALUE HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
We tried a few things with AdWords and landing
pages, but the results werent great.
What happens when you try thesame thing out in the real
world? Search is a good way to
connect with existing demand
but not necessarily learn about
its fundamentals.
CUSTOMER CREATION HYPOTHESIS
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CUSTOMER CREATION HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
How will you get the customers: attention, interest,
desire, action, onboarding, retention?
How will you know if its working?
CUSTOMER CREATION HYPOTHESIS
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CUSTOMER CREATION HYPOTHESIS
ALEX COWANAlexanderCowan.com
@cowanSF
Most of these results are prettydefinitive.
OLD SCHOOL VS. NEW SCHOOL
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OLD SCHOOL VS. NEW SCHOOL
Output vs. Outcome
Scaling vs. Learning
WHERE ARE YOU NOW?
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WHERE ARE YOU NOW?
MVP
Nascent
Product-MarketFit(?) Scale
PIVOTALASSUMPTIONS
PRODUCT
ORG.
PARTNERS,CHANNELS
Founders
N/A
Probably toosoon
Test, revise,test...
MVP
Customer dev.team
Probably toosoon
Validated- nowtactical
Focus: efficiency,extension
Full functionalorganization
Yeah, maybe?
Validated- nowtactical
What would astartup do??
Scalableorganization
Yeah, definitely!
PLAY TO YOUR ADVANTAGE AT THE EARLY PHASES
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PLAY TO YOUR ADVANTAGE AT THE EARLY PHASES
EXPENSE
FLEXIBILITY
wireframe
working design
prototype
working product with a few users
with lots of users
idea
DRAFT &EXPERIMENTA LOT
PLAY TO YOUR ADVANTAGE AT THE EARLY PHASES
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PLAY TO YOUR ADVANTAGE AT THE EARLY PHASES
EXPENSE
FLEXIBILITY
wireframe
working design
prototype
working product with a few users
with lots of users
idea
play to yourstrengths as asstartup/new product
in this zone
AGILE & THE BEAUTY OF SMALL BATCHES
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G & U O S C S
DISCOVERY MEETS HALLWAY CONVERSATION
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I was thinking the team and Iwould summarize some reportsfrom Gartner over the nextcouple of weeks.
I dont want you to dothat. I want you to goout and talk to users.
Heres what I want youto ask them
You guys can comewith me on a fewinterviews then youllbe ready to do yourown.
Youll finish this withmore skills!
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7Kill Zombie Ideas
SOME ZOMBIE IDEA TYPES
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THE R&D ZOMBIEAlso known as the solutionlooking for a problem zombie.
1 x TIME
THE CUSTOMER
SAID ZOMBIECustomers say they love it-but are they actually buying?
THE TOP DOWN
ZOMBIEWe told the street were doingit, so now
THE CRUMBLING
ZOMBIESo much time, so much moneytheres gotta be something here.
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8Innovation for Your Business Type
IDENTIFYING YOUR TYPE
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Infrastructure-DrivenUTILITIES TELECOM COMMODITIES
Scope-Driven
RETAIL BANKING CORP. LAW
Product-DrivenPACKAGED GOODS APP. SOFTWARE MEDIA
IDENTIFYING YOUR TYPE
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INFRASTRUCTUREKimberly-Clark: paper pulpDuPont: plastics and polymers
SCOPEProcter & Gamble: cradle to grave productsBaby Store: everything for babies in one place
PRODUCTEarthBaby, TinyTots, Honest Company:compostable diapers and service
IDENTIFYING YOUR TYPE: QUIZ!
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IDENTIFYING YOUR TYPE: IMPLICATIONS
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EXAMPLE AREAINFRASTRUC
TURE-DRIVEN
SCOPE-
DRIVEN
PRODUCT-
DRIVEN
Sales Process:
Highly standard or flexible?
relatively
standardized
relatively flexible (ideally Channel
sells)
Pricing & Packaging:Highly standardized or
customizable?
relativelystandardized
relativelycustomizable
relativelystandardized
Customer Support:
How systematic vs.
customized?
relatively
systematic
relatively
customized
relatively
systematic (non-
channel)
VENTURE DESIGN
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X
PROBLEM
SCENARIOS &ALTERNATIVES
What?
PRODUCT &
PROMOTION
/
CUSTOMER
DISCOVERY &EXPERIMENTS
Tell me?
PERSONAS
Who?
USER
STORIES &PROTOTYPES
How?
Scale?
Pivot?
VALUE
PROPOSITIONS& ASSUMPTIONS
What if?
!
VENTURE DESIGN (IN REVERSE)
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!PRODUCT &
PROMOTION
USER
STORIES &PROTOTYPES
Did the implementationdeliver on the story?
/
CUSTOMER
DISCOVERY &EXPERIMENTS
How did thecustomer/userreact?
VALUE
PROPOSITIONS& ASSUMPTIONS
!
Was theimplementedstory relevant tothe proposition?
X
PROBLEM
SCENARIOS &ALTERNATIVES
Is problemrelevant? Is thepropositionbetter vs.alternatives?
THINK SEE
FEEL DO
PERSONAS
Do weunderstand thisperson? Whatmakes themtick?
VENTURE DESIGN
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VENTURE DESIGN
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VENTURE DESIGN
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VENTURE DESIGN
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VENTURE DESIGN
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THE FULL STACK PRODUCT PERSON
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ALEX COWANAlexanderCowan.com
@cowanSF
Specialties
DESIGN
&
UX
UNIXSYSADMIN
RUBY
PYTON
JAVA
PHP
...
ENTERPRISESALES
...
SEO
ANALYTICS
...
...
...
Foundation
Skills
LEANDESIGN
THINKINGCUSTOMER
DEV.AGILE
Technical
Literacy
ARCHITECTUREFUNDAMENTALS
App. & PlatformIntegration
ROLES &SYSTEMS
In a TechnicalTeam
SOFTWAREFUNDAMENTALS
Model-View-Controller
WORK IT!
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Homework1. Draft a working set of personas
Pick the most important buyers and/or users. More is not necessarily better- you can always addmore (re-segment) later. Finish think-see-feel-do. Find a photo.
2. Draft a working set of problem scenario-alternative-value proposition trios.
3. Finish a working product hypothesis and positioning statement.
4. Finish a working interview guide to validate your persona and problem hypotheses.
5. Complete at least 5 customer interviews.
6. Draft a working set of assumptions
7. Design your experiments and execute.
GOOGLE DOC TEMPLATE: http://bit.ly/venturetemplate
RESOURCES: bit.ly/VDsprint1, bit.ly/VDsprint2
FINI
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@cowanSF
www.alexandercowan.com/venture-design
Slides: bit.ly/innoent
www.alexandercowan.com/startup-sprints