new venture crash course uva ilab q4'15

7/21/2019 New Venture Crash Course UVA ILab Q4'15

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Copyright 2014 Cowan Publishing

New VentureCrashCourse

COWAN+


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ALEX COWANAlexanderCowan.com

@cowanSF

ABOUT ME

Entrepreneur (5x)Intrapreneur (1x)


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@cowanSF

ABOUT ME


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ABOUT ME

www.alexandercowan.com


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Personas

ITS A PROCESS

Some techniques are more effective than others.

But they all require substantial, consistent exertion.


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Copyright 2014 COWAN+

SCALE-FRIENDLY VS. INNOVATION-FRIENDLY

ScaleFriendly

Innovation

Friendly

$ !?

? ! ? ? ?


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OLD SCHOOL VS. NEW SCHOOL

Output vs. OutcomeScaling vs. Learning


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Learn FirstScale Second


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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?

BY THE NUMBERS


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BY THE NUMBERS (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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What?

BY THE NUMBERS

PERSONAS

Who?

VALUEPROPOSITIONS

What if?

THINK SEE

FEEL DOX !


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@cowanSF

WHY IS DESIGN THINKING HARD?

Design Thinking

Now

Survival

Then


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Empathy Creativity

DESIGN THINKING


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@cowanSF

DESIGN THINKING- APPLICATIONS


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Entry1

Urinate as they go2

Edges preferred3

Speedy4

PB > cheese5

Empathy

DESIGN THINKING- APPLICATIONS


@cowanSF


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DESIGN THINKING- PERSONAS

Personas Problem ScenariosAlternatives

Your Value Propositions


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@cowanSF


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@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 moreorganized

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 moreorganized

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 fake

actionable- survey responseslike this are unreliable


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THE ART OF CUSTOMER DISCOVERY


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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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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 PERSONA

the use of a first name helpsw/ 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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VA

RI

ED

ivid The personashould makeanyone who readsit feel like theyveactually met thisperson.


@cowanSF


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VA

RI

ED

ivid


@cowanSF

If the personadoesnt inform

how you sell stuffand build stuff,why bother?

ctionable


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VA

RI

ED

ivid


@cowanSF

eal Good personasarent created incubicles. Gowhere the persona

is and observe.

ctionable


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VA

RI

ED

ivid


@cowanSF

eal

ctionableMake sure youcan identify andtarget these

personas, or youwont be able tofind a use forthem.

dentifiable


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VA

RI

ED

ivid


@cowanSF

eal

ctionable

dentifiable

Everyone is notyour customer.

Make sure thepersonas aredistinct so you canapply relevant

focus.xact


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VA

RI

ED

ivid

eal

ctionable

dentifiable

xactetailed

People arecomplicated and

so good personasare usually prettysubstantial.


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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

(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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OUR CAST

Miguel theMid-Mellenial


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WAKE UP!


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BREAKFAST & HEAD TO WORK


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AT WORK


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AFTER WORK


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PRE-BED


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GEAR


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ABOUT MIGUEL THE MID-MILLENIAL

Whats his favorite kind of music?

Band/composer?

Where did he buy his last pair of shoes?

What movie did he last see?

What did he drink with dinner last night?

If he had a dog, what kind?

Whats his favorite magazine?


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OUR CAST

Sally theSingle Mom


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WAKE UP!


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WAKE UP!


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GEARING UP FOR THE DAY


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AT WORK


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AFTER WORK


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PRE-BED


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BED


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GEAR


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IF I HAD 3 EXTRA HOURS


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ABOUT SALLY THE SINGLE MOM

Whats her favorite kind of music?

Band/composer?

Where did she buy her last pair of shoes?

What movie did she last see?

What did she drink with dinner last night?

If she had a dog, what kind?

Whats her favorite magazine?


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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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(2 min)

Can you think of 5 real examples for each?

Use the back of your index cards


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Which 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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DISCOVERY & LEARNING: THINK-SEE-FEEL-DO


@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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DISCOVERY & LEARNING: THINK-SEE-FEEL-DO


@cowanSF


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@cowanSF

XPROBLEM SCENARIO

DISCOVERY & LEARNING: PROBLEM SCENARIOS


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@cowanSF

XWhat job(s) are you doing for

the customer?What existing need orbehavior are you fulfilling?

PROBLEM SCENARIO



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@cowanSF

?

X

ALTERNATIVE(S)

PROBLEM SCENARIO



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@cowanSF

?

X

If they currently usespreadsheets, watch them

use it and get a copy of it.If they currently put notes on thefamily fridge, ask about it,photograph it.

ALTERNATIVE(S)

PROBLEM SCENARIO



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X


Hiring technical talent is difficult.

(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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DOUBLE DIAMOND MODEL OF DESIGNFinding the Right

PROBLEMFinding the Right

SOLUTION

time

alternatives

divergence convergence divergence convergence

source: adapted from The Design of Everyday Things


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@cowanSF

YOUR VALUE PROPOSITIONS !

ALTERNATIVE(S) ?

PROBLEM SCENARIO X



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@cowanSF

X

Are they better enough than thealternative(s)?

!

?

YOUR VALUE PROPOSITIONS

ALTERNATIVE(S)

PROBLEM SCENARIO



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EXERCISE- VALUE PROPOSITIONS

Add Value Propositions toyour top Problem Scenario +Alternative Pairs

YOUR VALUEPROPOSITIONS!

ALTERNATIVE(S)?

PROBLEM SCENARIOX

(3 min.)

Problem: Helen the HR Manager doesn't

have a software engineering background, soit's hard for her to screen engineeringcandidates. She ends up sending Frank theFunctional Manager too many unqualifiedcandidates.

Alternative: She calls references and mostlyends up taking their word for it.

Value Proposition: New ability for meaningfulscreening of technical candidates, increasing% of successful hires and lowering Frank theFunctional Manager's workload on recruiting.


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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 certainPROBLEMS(S)

where theyre currently usingcertain ALTERNATIVE(S)

and I have a VALUEPROPOSITIONthats better enoughthan the alternatives to cause thepersona 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 certainPROBLEMS S


and I have a VALUE

PROPOSITIONthats betterenough than the alternatives tocause 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 andproducing 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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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 [statementof primary differentiation].

For [hiring managers] who [need to evaluate technical talent], [EnableQuiz] is a [talent assessment system] that [allows for quick and easyassessment 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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STORYBOARDING: ORIGINS

copyright Fred Moore & Disney Pictures


@cowanSF


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Personas

STORYBOARDING EXAMPLE


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Personas

STORYBOARDING EXAMPLE


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Copyright 2014 Cowan PublishingCopyright 2014 Cowan Publishing

ENABLE QUIZ: EXAMPLE PROBLEM SCENARIOS

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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Before

After

Trigger?

How does theproblem scenarioinitiate?

Action?

How is thealternativeexecuted?

Reward?

How well is thepersona gratified?

+


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}}}1 Panel

StoryboardArea

NotesArea

Optionalnotes here tosupplement your storyboard


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EXERCISE: BEFORE AND AFTER BOARDS

Using the squares, create a before and then afterstoryboard- 3 panels each

BEFORE

(using theAlternative)

AFTER

(with the ValueProposition) (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 what

proposition?

MAKINGSTUFF

What does theuser actuall do?What does theuser most want?


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4 TYPES OF LEAN HYPOTHESES


@cowanSF

PERSONAHYPOTHESIS

PROBLEMHYPOTHESIS

VALUEHYPOTHESIS

CUSTOMER CREATIONHYPOTHESIS


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PERSONA HYPOTHESIS


@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


@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


@cowanSF

How much better than the best alternative is yourproduct?

How obvious is that to the customer?


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VALUE HYPOTHESIS


@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 realworld? Search is a good way toconnect with existing demandbut not necessarily learn about

its fundamentals.


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CUSTOMER CREATION HYPOTHESIS


@cowanSF

How will you get the customers: attention, interest,desire, action, onboarding, retention?

How will you know if its working?


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CUSTOMER CREATION HYPOTHESIS


@cowanSF

Most of these results are prettydefinitive.


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THINK SEE

FEEL DO

PERSONAS

Who?

X


What?


What if?

!

USERSTORIES &PROTOTYPES

How?

Scale?

Pivot?

PRODUCT &PROMOTION

/


Tell me?

THE VENTURE DESIGN PROCESS


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@cowanSF

THE FULL STACK PRODUCT PERSON

Specialties

DESIGN

&

UX

UNIXSYSADMIN

RUBY

PYTON

JAVA

PHP

...

ENTERPRISESALES

...

SEO

ANALYTICS

...

...

...

TechnicalLiteracy

ARCHITECTUREFUNDAMENTALS

App. & PlatformIntegration

ROLES &SYSTEMS

In a TechnicalTeam

FoundationConcepts LEANDESIGNTHINKING CUSTOMERDEV. AGILE

SOFTWAREFUNDAMENTALS

Model-View-Controller


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@cowanSF

THE FULL STACK PRODUCT PERSON

Specialties

TechnicalLiteracy

FoundationConcepts LEAN


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THE STARTUP: THEN AND NOW

Five Year

Plan

Then

!"#$$$#$$$

$

"#$$$#$$$

&$#$$$#$$$

&"#$$$#$$$

'$#$$$#$$$

'"#$$$#$$$

($#$$$#$$$

("#$$$#$$$

)$#$$$#$$$

)"#$$$#$$$

'$&' '$&( '$&) '$&" '$&* '$&+ '$&, '$&- '$'$

./0/12/

345/16/

3789:;

Lean

Management

Now

6.a PIVOT

experiments

disprovehypothesis

01 IDEA!

02 HYPOTHESIS

03 EXPERIMENTAL DESIGN

04 EXPERIMENTATION

05 PIVOT OR PERSEVERE?

6.b PERSEVERE

i

i


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OLDSCHOOL

NEWSCHOOL

$ !?

? ! ? ? ?


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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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01 IDEA!


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IDEATION & DESIGN THINKING


@cowanSF


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@cowanSF

PROBLEM SCENARIO X


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@cowanSF

PROBLEM SCENARIO XWhat job(s) are you doing for thecustomer?

What existing need or behaviorare you fulfilling?


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@cowanSF

ALTERNATIVE(S) ?

PROBLEM SCENARIO X


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@cowanSF

ALTERNATIVE(S) ?

PROBLEM SCENARIO X

If they currently use spreadsheets, watch

them use it and get a copy of it.

If they currently put notes on the familyfridge, ask about it, photograph it.


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@cowanSF


ALTERNATIVE(S) ?

PROBLEM SCENARIO X


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@cowanSF


ALTERNATIVE(S) ?

PROBLEM SCENARIO X

Are they better enough than thealternative(s)?


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YOUR PRODUCT HYPOTHESIS


@cowanSF

X and they have certainPROBLEMS S

? where theyre currently usingcertain ALTERNATIVE(S)

! and we have a VALUE


A certain PERSONAexists


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EXERCISE: YOUR VENTURE HYPOTHESIS

and they have a certainPROBLEMS S


and I have a VALUE


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 andproducing worse outcomes than they should

reasonably 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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01 IDEA!


02 HYPOTHESIS





Pivot or persevere?


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02 HYPOTHESIS




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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 app

over 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 is

Doesnt matter unless ithelps prove (or disprove)

your pivotal assumptions


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FOCUS AND THE LEAN STARTUP

Subjectall your

activities +metrics tothat litmus

test.


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PERSONAHYPOTHESIS


@cowanSF


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PERSONAHYPOTHESIS

PROBLEMHYPOTHESIS


@cowanSF


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PERSONAHYPOTHESIS

PROBLEMHYPOTHESIS

VALUEHYPOTHESIS


@cowanSF


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PERSONAHYPOTHESIS

PROBLEMHYPOTHESIS

VALUEHYPOTHESIS

CUSTOMER CREATIONHYPOTHESIS


@cowanSF


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PERSONAHYPOTHESIS


@cowanSF


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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 space3) 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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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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KEY TO GOOD PERSONA DISCOVERY

PERSONAHYPOTHESIS


@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 notselling anything or advocating a point of view


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PERSONAHYPOTHESIS

PROBLEMHYPOTHESIS


@cowanSF


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PROBLEM HYPOTHESIS- CHECKLIST


! 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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EXERCISE: PROBLEM DISCOVERY QUESTIONS

(5 min.)


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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KEY TO GOOD PROBLEM DISCOVERY

PROBLEMHYPOTHESIS


@cowanSF

1) Avoid prompting, progressing to it only as alast ditch effort

2) Get them in storytelling mode- focus onspecifics and details

3) Focus on just getting them talking- mind thetime but be careful about interrupting for course

corrections


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01 IDEA!


02 HYPOTHESIS

How do I definitely prove or disprove the

assumptions with a minimum of timeand effort?




Pivot or persevere?


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Pivot or persevere?


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PERSONAHYPOTHESIS

PROBLEMHYPOTHESIS

VALUEHYPOTHESIS


@cowanSF


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VALUE HYPOTHESIS- CHECKLIST


! 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 this

superiority 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 area3) Strategic pivot

Template: bit.ly/personast

VALUEPROPOSITION(S)

X

?

!


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EXERCISE: VALUE DISCOVERY QUESTIONS

(2 min.)


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 (nextsection); 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 to

validate orinvalidate thisoption so we giveourselves more

options on futuresuccess?


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M

VPiableWill it give us adefinitive result?What are theactionable metrics?

inimum


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M

VProduct

Does it reallyrequire actualproduct? Can we

use alternativebrands, 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 MVP LITMUS TEST

output !=outcomeIs your MVP driving anextraordinary outcome?

Or is it a vehicle to create output

as 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

PersonaTom the Techie- early adopter who works on projects that require swapping a lot of files between ashifting network of collaborators.

ProblemScenario

Its difficult to share files between a network of collaborators, particularly if theyre: big or numerous orchange a lot.

AlternativesMany existing products, but none of them super compelling and widely adopted.Also, custom setups which work but are cumbersome to set up and maintain.

Value Prop.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.

Q I


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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.

EXAMPLE ENABLE QUIZ


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EXAMPLE: ENABLE QUIZ

Persona(s)Helen the HR Manager- responsible for sourcing and screening job candidatesFrank the Functional Manager- hiring manager responsible for acquiring and managing talent

ProblemScenario

Helen: hard to screen for technical skillsFrank: 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 Minimum Viable Product (MVP) for deciding on the right first topics?



THE PRE SALES MVP


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THE PRE-SALES MVP

Target Outcome: Informedselection of starter topics (andbaseline on initial conversions).

Ran Google AdWordcampaigns across top rankingtechnical topics, measuring

click through rate and landingpage sign-ups.

CASE STUDY LEONID SYSTEMS


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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 had

actionable ideas but not enough resourcesto execute an end-to-end solution.

CASE STUDY LEONID SYSTEMS


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CASE STUDY: LEONID SYSTEMS

PersonaChris the CTO- has funding and mandate to transition the business towards hosted services; manybases to cover

ProblemScenario

IT is the most expensive, most risky area when making changes to the business.

Alternatives1) Place large, risky bets on major new system upgrades. 2) Make small incremental updates (but risknot keeping pace).

Value Prop. Leonid will offer modular, integration-friendly applications in two critical areas: 1) services provisioningand 2) end user self-service portals.




LEONID MVP FROM CONSULTING TO PRODUCT


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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 better

understanding of key customerproblem scenarios.

CASE STUDY ZAPPOS


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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.

CASE STUDY ZAPPOS


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CASE STUDY: ZAPPOS

Persona Sam the shoe-hound- knows what he wants but not where to get it.

ProblemScenario

Sam is unable to find the shoe he wants at local retailers, wasting time and getting frustrated.

Alternatives Possibly mail order or wait until hes in a bigger market to go to the store.

Value Prop. 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.




CASE STUDY ZAPPOS


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CASE STUDY: ZAPPOS

Result: It worked and the restis history.

Photographed shoes and putthem online to observewhether anyone bought them.

CASE STUDY: SPRIG


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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. anddelivery requires infrastructure.

CASE STUDY: SPRIG


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CASE STUDY: SPRIG

Persona*Paula the Professional- health conscious, short on time, moderate to high income, already usessimilar services like Uber.

ProblemScenario

I want to have a nice, healthy dinner with no hassle and at a price I can afford (like $12).

Alternatives Going to the store or an expensive, take-out, or a slow delivery service (>20 minutes).

Value Prop. 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?



* This is me interpolating/guessing on an item; not part of the Sprig teams explanation.


SPRIG MVP & EXPERIMENTATION


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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.


CASE STUDY: PAUL HOWE & ASSOCIATES


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OPPORTUNITYFunded startup team rapidly iteratingthrough B2C concepts with lightweightexperimentation.

One idea: Some people would like to knowhow much their stuff is worth.

CHALLENGEIterate to a successful concept while thetime and money permits.



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Persona* ?

ProblemScenario

I have a lot of stuff around that I might want to sell and/or Im just generally curious about how much itsworth, how much Ive spent.*

Alternatives Going through credit card statements or receipts.

Value Prop. Its interesting and possibly useful to know how much stuff you have.*

What MVP?



* This is me interpolating/guessing on an item; not part of the teams explanation.


CONCIERGE MVP: PAUL HOWE & ASSOCIATES


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CONCIERGE MVP: PAUL HOWE & ASSOCIATES

Result: They dont care. Time

to move on to the nextconcept.

Get a few sign-ups withaccess to email and bankaccount info. Review by hand

on a concierge basis andcompile a statement for them.Do they care?


CASE STUDY: STEALTH PHOTO-SOCIAL STARTUP


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OPPORTUNITYLots of exciting things happening in thephoto-social space.

CHALLENGE

The team had several ideas but fewresources.



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PersonaExisting poster of photos. Personas: Martha the Mom, Pat the Party Planner, Teresa the Teen SocialButterfly

ProblemScenario

[I want to do something interesting with my photos so that my social graph rewards me with interest andacclaim]

Alternatives Manually enhance photos, use alternative enhancers/amplifiers like Instagram

Value Prop. [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

MVP

Create the target outputby hand (conciergestyle)

Does anyone care?

ASSUMPTIONUsers social networkwill like and share theapps output

ABOUT MVPS AND PRODUCTS IN GENERAL


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ABOUT MVP S 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]

1Parents want toorganize the

distribution of

Yes* Post the proposition in ads online

* Measure sign-ups on a landing page

2Parents 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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Lets assume.

Then test.

Lets not

argue



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CLASS PRESENTATIONS


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CLASS PRESENTATIONS

As Presenter

1) What is it? Use pos. statement.2) How are you doing on the personaschecklist?4) The problem scenarios checklist?5) Where/how will you find interview

subjects? Whats your target number?6) Ideas for MVP? Next steps, timing?

As Audience

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

(5 min./each)

POINT OF EMPHASIS


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POINT OF EMPHASIS

You arethe mostimportantpart of the

experiment

Make sureyoure

learning

RECOMMENDED NEXT STEPS


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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. 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/vdesign

FINI


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FINI

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@cowanSFTwitter!

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