Date post: | 14-Sep-2014 |
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lean planning for nimble agencies
Mirren New Business Conference2 May 2012
@farrahbostic
Stuff I’ve done.ads
campaignswebsitesgames
strategiesbusinessesproductsmedia
hosting hackathonsmentoring start-upswriting a little code
presenting an absurd number of decks
“Lean” is hot right now
http://theleanstartup.com/
It’s a reaction to waste, superstition, and bias.
Requirements
Design
Implementation
Testing
Maintenance
The traditional software
waterfall model
Full management teams
Assuming the customer is known
Assuming the features are known
Assuming growth happens by execution
High burn rate
Swinging for the fences
The results for start-ups:
Principles of Lean Start-ups
Assume customer and features are unknowns
Continuous customer interaction
Revenue goals from day one
No scaling until revenue
Low burn by design, not crisis
Google #Firestarters: Agile Planning
Do Agencies Need to Think Like Software Companies?
Let the stealing begin...
Fact: It’s easy to talk about “lean”.
It’s hard to be Lean.
http://www.youtube.com/watch?v=3J9KhpgYVB0
Lean Pirates & Agile Ninjas talk about
‘pivoting’ a lot
Pivoting isn’t a goal.It’s a necessity.
It happens when you’ve done all you can with the 1st idea.
And you make the intuitive leap to a better one.
Where does this intuition come from?
Empathy • Discovery • learning
Empathy • Discovery • learning
Learn
Empathy • Discovery • learning
Build
Learn
Empathy • Discovery • learning
Build
Measure
Learn
why nimble agencies aren’t agile
the ‘insight & creativity’ waterfall
Client Briefing Planning
Creative Briefing Creative The Sell
PROFIT?
Research
Testing
MediaProduction
Accounts
Planning
Creative
this looks like a time-consuming & expensive process, right?
in the race to win & keep clients,
we make 5 key mistakes
we take orders
Agencies facilitate and manage the production and placement of advertising on behalf of their clients.
The client asks, and she shall receive.
1
“we don’t get paid to think”
The traditional model:
Billings = The total cost to produce & place advertising
Revenue = ~10% of billings
Profit = ~15% of revenue
2
it’s hard enough to keep up with our own industry...
Clients Consumers
Ad AgenciesMedia
Agencies
Production Houses
Publishers
let alone our client’s
Businesses Growth
Consumers
CompetitorsPartners
Shareholders
Regulators
our process is wasteful
Client Briefing Planning
Creative Briefing Creative The Sell
PROFIT?
Research
Testing
MediaProduction
Accounts
Planning
Creative
Age
ncy
3rd
Part
ies
3
our hand-offs can be more like show-downs
“I don’t need any more ideas. We’ve got plenty of ideas. I need to know what to make.” - Anonymous Creative Director
we tend to think ideas ‘just happen’ 4
WE EXPECT THIS GUY TO BE A GENIUS. EVERY TIME.
we’re struggling with product-market fit
“What do you want from me? Fine writing? Or do you want to see
the goddamned sales curve stop moving down and start moving up?”
- Rosser Reeves
5
WE BET ON A HOLE-IN-ONE. EVERY TIME.{BUT WE’RE NEVER SURE WE MADE ONE.}
so. that’s not working.
http://www.rswus.com/survey/2011-survey-clients-look-ahead-at-agencies
hired for lots of ‘reasons’...
...fired for only a few
Bad strategy, bad creative, bad service.http://www.rswus.com/survey/2011-survey-clients-look-ahead-at-agencies
how do we fix it...
three reality checks
Client briefs are not to be trustedthey are often disconnected from the real business objective, and assume facts not always in evidence
Our business model is double-sidedwe have to design for both our economic buyer (the client) and our end-user (the consumer)
Strategy isn’t (solely) about research and testingit’s about efficiently seeking a campaign model that scales - and this doesn’t have to be expensive or delay ideas
Principles of Lean ad agencies
Assume the client briefs are hypotheses to be tested.
Continuous customer interaction - with both client & consumer.
Establish clear goals for the campaign from day one.
Start simple, iterate on successes and learn from failures.
Create right-sized, integrated teams, and use the right resources & tools as they are needed.
Keep score with clients, vendors & partners.
a note:
I open source ideas & models.
So all of the models & frameworks you’re about to see in this deck are in the Creative Commons.
Using them is not stealing my IP. Please use them.
Mahalo.
how to do lean planning
in 5 really hard steps
start with the business problemWhat is the problem your client is trying to use advertising to solve?1
start with the business problem
“How is their bonus calculated?”
“Who do you report to?”
“Who approves the work?”
“Who owns the budget?”
What is the problem your client is trying to use advertising to solve?1
start with the business problem
“How is their bonus calculated?”
“Who do you report to?”
“Who approves the work?”
“Who owns the budget?”
“What can we influence/change?”
“What is the business problem?”
“What’s the root cause of the problem?”
“Who owns the parts of the value
chain?”
What is the problem your client is trying to use advertising to solve?1
The client brief is just one input.
charge for strategy
Call it discovery, campaign planning, client roadmaps, etc.
Do the work to understand your client’s business (note: this is different from their ‘brand’).
Involve your client in this process - do stakeholder interviews, workshops, etc.
Don’t call it an add-on or suggest it as optional.
Charge enough that it looks like it matters as much as it does.
Connect it to measurement & KPIs.
2
they pay for strategy.just not from you.
Reason #1: They don’t think agencies do strategy - and if you don’t have a highly visible planning team, with a history of solving business problems, why should they?
Reason #2:They don’t trust agencies to be honest - they think you’re learning what you want to learn to make the work you want to make.
Reason #3:They believe in ‘best in class’ when buying agency services - but are constantly frustrated by the inefficiencies.
What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?
For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?
For whom are we creating value?Who are our most important customers?
What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?
What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?
Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
Day Month Year
No.
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if nothing else, it shows you care
collaborate to learn3
http://www.startuplessonslearned.com/
“We always have a vision that is clearly articulated, big enough to matter & shared by the whole team.
“Our goal is always to discover which aspects of this vision are grounded in reality & adapt those aspects that are not.”
This vision is the ‘brief’...
PLACE BETS:generate hypotheses before ‘finding insights’
PLACE BETS:generate hypotheses before ‘finding insights’
About the customer.
PLACE BETS:generate hypotheses before ‘finding insights’
About the customer.
About what matters to them.
PLACE BETS:generate hypotheses before ‘finding insights’
About the customer.
About what matters to them.
About how they live their lives.
PLACE BETS:generate hypotheses before ‘finding insights’
About the customer.
About what matters to them.
About how they live their lives.
About what they desire or how we can solve a painful problem.
PLACE BETS:generate hypotheses before ‘finding insights’
About the customer.
About what matters to them.
About how they live their lives.
About what they desire or how we can solve a painful problem.
Get out of the building.4
do what, now?
Talk to people - not respondents.
Not a lot: 5-10.
Get the people you meet to introduce you to other people they know who do things a little differently.
Don’t use a “facility” - try to go to where they are when they use the product or interact with the category/brand.
Be nice and listen.
http://giffconstable.com/2010/07/12-tips-for-early-customer-development-interviews/
measure to succeed
You know the old adage...
“Half my advertising is working... I just don’t know which half.”KPIs aren’t making this better, most of the time.
5
http://anjalir.wordpress.com/2011/04/12/sxsw-in-retrospect-the-last-of-the-launch-and-leave-ems/
“You need to add value to people's lives, not just expect them to participate because you goddamn well asked them to.”
Mel Exon, BBH Labs
Learning.Understanding.
Empathy.
measure like a pirate“[Vanity Metrics are] numbers that make us look good
but don’t really help make decisions.” - Eric Ries, The Lean Start-up
Actionable (a.k.a. ‘Pirate’) Metrics:
Acquisition: users from misc channels come to site, landing page, widget, etc
Activation: users enjoy 1st site visit, "happy" user experience
Retention: users re-visit site multiple times
Referral: users like product enough to refer others referral happens via email, links, blogs, widgets, word-of-mouth, etc
Revenue: users conduct monetization behavior (e.g., buy, download, affiliate sale trackback)
*
*
Bonus round: do it again.
“It isn’t iterative if you only do it once.”
- probably one of the made by many guys
Bonus round: do it again.
“It isn’t iterative if you only do it once.”
- probably one of the made by many guys
Learn
Bonus round: do it again.
“It isn’t iterative if you only do it once.”
- probably one of the made by many guys
Build
Learn
Bonus round: do it again.
“It isn’t iterative if you only do it once.”
- probably one of the made by many guys
Build
Measure
Learn
thanks.