customer development - what strategic planning can learn from startups
DESCRIPTION
This is an interactive presentation that Stefan Erschwendner, Managing Director of LHBS gave for the Account Planning Group Germany at the Google Office in Berlin on the 29th of February 2013. Certain parts of the presentation are blank since they got build up during the presentation.TRANSCRIPT
Customer Development-What Strategic Planningcan learn from StartupsAPGDBerlin, 29th of February 2013
Hello!
Education
Y&R ZurichStrategic Planning
Professional Experience
DDB /Tribal DDB BudapestStrategic Planning
Professional Experience
LHBS LightHouse Business Sociology
Knowledge & Ideation
Professional Experience
2 Main drivers that influence our work and business today
1. Complexity
People, Business and Brands behave different in a connected world
http://www.wired.com/wiredscience/2008/04/the-complexity/
2. Acceleration
Increasing speed of life and business demands a new way of working
http://doktorsblog.de/2010/01/24/innovation-timeline-1900-2050/
Management decision cycles are sometimes longer than technology
cycles. This creates even more pressure for agencies.
Disciplines and tasks merge
Strategy
Branding
Development
Research
Innovation
Sales
...
“Uncertainty is the biggest business barrier at the moment.”
Sir Martin Sorrell
http://img.new.livestream.com/events/00000000001b52f4/fdedfe80-ff9c-4149-979a-0be78a42e6f2_5307.jpg
Agencies & Strategic Planning
The way we work needs to adapt to the outside world.
“It is not the strongest of the species that survives, nor the most
intelligent, but the one most responsive to change.” Charles Darwin
http://www.glsc.org/darwin/images/8_Darwin.jpg
Adaptation
Context Company
In a complex and speed driven world there is a strong need for strategy. But the way strategy is done needs to change.
Strategy“When crafting a strategy, all companies need to make bets about what customers will want in the future, what competitors will do in the future, what the company itself is capable of accomplishing in the future, what will happen in the economy generally. None of these bets can be guaranteed.
Strategy means making the best possible choices you can make today and then being responsive when the bets do or do not come in as hoped.”
Roger Martinhttp://blogs.hbr.org/cs/2013/01/placing_strategic_bets_in_the.html?utm_campaign=Socialflow&utm_source=Socialflow&utm_medium=Tweet
Strategy
So rather than seeing strategy as a way to get rid of uncertainty, think about strategy as a way of dealing productively with life's inevitable
uncertainty, by continuously making and updating your bets about the future.
Who knows about continuously making and updating bets about the future?
Steve Blank
“Selecting a Business Model usually requires making a number of assumptions. In many cases, it is impossible to verify these assumptions before implementing the Business Model in real time or at least in a pilot study. You should test a Business Model whenever possible, and must always be prepared to revise it or explore alternatives.”
http://www.newmedianow.co.uk/wp-content/uploads/2012/05/steve_blank.jpg
The differencesCompaniesExecutingKnown environmentWaterfall developmentAction based on planBusiness planOperational excellenceDefined knowledge
StartupsSearchingenvironment of uncertaintyagile developmentAction based on behaviorBusiness modelCreativity and insightHypothesis
Traditional way of working
The definition of insanity is doing the same thing over and over and
expecting different results.
http://3.bp.blogspot.com/-IYq1IOKlQ2U/UNGpkdc3N8I/AAAAAAAAIW4/BnqwT1lJaDE/s1600/grayscale-albert-einstein-monochrome-scientists-black-background-portraits-HD-Wallpapers.jpg
Start up way of working
Hypotheses, Experiments
Data, Feedback, Insights
CustomerDevelopment
CustomerDiscovery
CustomerValidation
Pivot
Search
CustomerCreation
BusinessBuilding
Execute
Customer Development Manifesto
1. There are no facts inside your building, so get outside.2. Pair Customer Development with Agile Development3. Failure is an integral part of the search4. Make continuos iterations and pivots5. No business plan survives first contact with customers, so use a business model canvas6. Design experiments and test to validate your hypotheses7. Agree on market type, it changes everything8. Startup metrics differ from those in existing companies9. Fast Decision-Making, Cycle time, speed and tempo10. Communicate and share learnings
There are no facts inside your building,
so get the heck outside.
Insight Cycle
Hypothesis
DesignExperiment
Test
Insight
What consumers
want
Subconscious
Not desired but drives value
Conscious
Desired and drives value
Invisible
Not desired and does not drive value
Deception
Desired and does not drive value
Driv
es v
alue
Not
driv
e va
lue
Not desired Desired
The way LHBS works
Context
ResearchConsumer
Observation
Pivot
ConsumerInterviews
Pivot
ContextResearch
Understand the consumer environment:
Social / CulturalTechnologicalEconomicalPoliticalLegal
ConsumerObservation
Understand the consumer in it’s micro usage situation and context:
Observations of consumers in their natural environment:
where and how they search, buy and consume the product or service.
ConsumerInterviews
Understand the motivations, pains and gains behind their behavior.
Test Hypothesis based on previous learnings and fine tune the results.
Contact:Stefan Erschwendner
Managing Partner / LHBS Consulting GmbH0049 176 8455 [email protected] @eranium