Right from the Start : From Failing Fast to Succeeding Sooner - Alan Albert at ProductCamp Portland 2020

1. Right From The Start From Failing Fast to Succeeding Sooner Alan Albert marketfit.com alan@marketfit.com linkedin.com/in/alanalbert @a_albert #values-first

2. What are our most difficult product challenges? ?

3. Your job is hard!

4. I expect my current efforts will eventually succeed will ultimately fail

5. The real problem Most of the time, we fail

6. We fail a lot! More than 80% fail Startups Products Services Features

7. We’re not even aware we’re going to fail

8. There’s a lot of waste More than $29B spent per year creating features used rarely or never Source: Pendo 2019 Feature Adoption Report

9. We’ve got some serious problems to fix

10. Product Creation Process The Process of Design Squiggle by Damien Newman, thedesignsquiggle.com

11. Two distinct phases Discovery Optimization

12. What’s wrong with how we do Discovery? Too much time to learn money to design and build Too few leading indicators signs we’re on the wrong track

13. These are serious problems to fix

14. The waste is here… The Process of Design Squiggle by Damien Newman, thedesignsquiggle.com

15. What if we could start here?

16. What if instead of struggling with priorities… We all agreed on the same North Star?

17. You’re probably skeptical

18. You may be thinking...

19. This sounds a lot like waterfall

20. It probably takes too long

21. It sounds hard

22. What if a different approach doesn’t work?

23. Why am I calling for a new approach?

24. I’ve been there… $1B

25. I’ve been there…and failed, repeatedly $1B

26. A story of failure    [ mine ]

27. “ You're going on an apology tour! ”

28. Bugs? Missing features? Slow performance? Hard to use? Discovering where we went wrong

29. Bugs? No Missing features? No Slow performance? No Hard to use? No Discovering where we went wrong

30. What I learned… sparked the journey that led me here today

31. Over the last several years, I’ve been exploring... Why so much waste and failure? How to fail less, succeed faster? What do successful teams do?

32. You can achieve success, faster Once you gain tools and skills

33. We’re on the cusp of another shift Toyota - Reduce Manufacturing Waste → Quality Agile - Reduce Coding Waste → Feedback Lean - Reduce Optimization Waste → Speed Toyota Manufacturing Waste Quality Agile Coding Waste Feedback Lean Optimization Waste Speed

34. We’re on the cusp of another shift Toyota - Reduce Manufacturing Waste → Quality Agile - Reduce Coding Waste → Feedback Lean - Reduce Optimization Waste → Speed Toyota Manufacturing Waste Quality Agile Coding Waste Feedback Lean Optimization Waste Speed ??? Discovery Waste Success

35. We have a choice

36. Are you ready?

37. How can we improve our   Product Creation process?

38. Our current Product Creation process The Process of Design Squiggle by Damien Newman, thedesignsquiggle.com

39. Two distinct phases Discovery Optimization

40. Where do we spend most of our time? Discovery Optimization

41. Where do we spend most of our time? Discovery Optimization

42. We often never find the right direction

43. What are we doing here?

44. What are we doing here? Design Build Measure Repeat

45. If this is the best way… Why does it… Cost so much time & money? Fail so often?

46. Design the wrong thing Build the wrong thing Measure to see if it works Repeat, hoping for better What kinds of waste happen here?

47. Not Enough Features Wrong Features Broken Features Doesn’t Work Doesn’t Solve the Problem Poor Marketing Bad Sales Process Why do products fail?

48. Not Enough Features Wrong Features Broken Features Doesn’t Work Doesn’t Solve the Problem Poor Marketing Bad Sales Process Why do products fail?

49. What do we know at the end? …that we didn’t know at the start?

50. Here we know why Why they were interested Why they came Why they tried Why they bought Why they recommended Why they left

51. ? How do we find our way out of here?

52. What’s really inside this box? ?

53. Your customers What’s really inside this box?

54. Why not measure your customers directly?

55. This is not about Just talking to customers Asking about their problems Finding the job to be done Building what they ask for Showing your idea, design, or product Measuring how they react

56. This is about finding a way to discover what drives your customers’ decision making

57. This is about finding a way to discover the values that drive their decision making

58. If Henry Ford had... asked what customers want “Faster horse”

59. If Henry Ford had... asked what customers want discovered what customers value “Faster horse” “Get me there fast” “Keep me dry” “Stop paying for hay”

60. If Steve Jobs had... asked what customers want “Faster CPU, more memory” “More ports & peripherals”

61. If Steve Jobs had... asked what customers want discovered what customers value “Faster CPU, more memory” “More ports & peripherals” “Light enough to carry all day” “Power that lasts all day”

62. How can we do better at Discovery?

63. Not Enough Features Missing Features Wrong Features Doesn’t Work Doesn’t Solve the Problem Poor Marketing Bad Sales Process Why do products fail?

64. Not Enough Features Missing Features Wrong Features Doesn’t Work Doesn’t Solve the Problem Poor Marketing Bad Sales Process Why do products fail? Not enough customers find them valuable enough

65. What makes your product valuable? ?

66. What makes your product valuable? Your customers

67. What makes your product valuable? Customer Perception of Value If they value your product, then it is valuable If they don’t value your product, then it’s not valuable

68. Understanding Customer Perception of Value • Definition • Segmentation • Value Layers • Audiences • Context • Differentiation • Lots more… A very quick tour For another day

69. What are customer values? What people care about in a particular context The “why” that makes them buy • Preferences, reasons & criteria • Motivations, goals & aspirations • Fears, concerns & worries • Limits, standards & ideals

70. People with different values react differently to the same product

71. The same basic product…

72. Can be targeted at people with different values

73. New definition of Market Segment People who share the same perception of what’s most valuable

74. Choose your target market segment

75. Choose your target market segment carefully Large audience with shared values

76. Choose your target market segment carefully Large audience with shared values Small audience with shared values

77. Value Layer Product or Feature Solution Type Problem /   Job to be Done Role / Identity Customer Values exist in different layers

78. Example: Value Layers for AirBNB Value Layer Example Product or Feature Online Apartment Booking Solution Type Online Marketplace Problem /   Job to be Done Find a Place to Stay Role / Identity Experiential Traveler

79. Value Layer Example Product or Feature Online Apartment Booking Solution Type Online Marketplace Problem /   Job to be Done Find a Place to Stay Role / Identity Experiential Traveler Example: Value Layers for AirBNB Ways they know it’s great when they see it Why they want it

80. Successful products focus on specific values Value Layer Example Values Product or Feature Online Apartment Booking Accuracy of Description, Completeness of Photos Solution Type Online Marketplace Number of Listings, Searchability Problem /   Job to be Done Find a Place to Stay Comfort, Price Role / Identity Experiential Traveler Local Experiences, Low Risk

81. Value Layers determine how innovative you can be Value Layer Example Product or Feature Online Apartment Booking Solution Type Online Marketplace Problem /   Job to be Done Find a Place to Stay Role / Identity Experiential Traveler Incremental Disruptive

82. Audiences Each audience perceives value differently Buyers / Purchasers Evaluators Decision Makers Scouts / Inﬂuencers Users Approvers

83. Context Perception of Value changes throughout the customer journey Awareness Consideration Purchase Usage Advocacy

84. Putting it all together Customer values at each layer drive decisions for a specific audience in a specific segment in a particular context

85. Values-First Design for Product-Market Fit CUSTOMER VALUES PRODUCT VALUES MARKETING “PROMISE OF VALUE” PRODUCT - MARKET FIT

86. Applying the concepts of   Customer Perception of Value

87. To get to the top of a market segment We try to excel at satisfying all our target customers’ values

88. We must be sub-par at something But we can’t excel at everything

89. If we choose to be sub-par at less important values

90. If we choose to be sub-par at less important values We save time & money and reduce waste

91. We can excel at satisfying our customers’ top values

92. This is what winning companies do Deliver a tightly focused set of values to a large market

93. More features ≠ more value Adding features often reduces value

94. Disruptive innovations omit “essential” features   to deliver exceptional value No EvidenceNo TaxiNo HotelNo Keyboard No Gas Engine

95. You can create value by amplifying   customers’ shared top values Get ﬁt at home Find community Energy Stamina Help me look good Find my next job

96. Or you can create value by minimizing   customers’ shared negative values Less Fat Zero Calories No Tears

97. The top 1 - 3 values drive most customer decisions Safety PerformanceEconomy Being Green

98. But not so fast! Don’t guess at your customers’ values You’ll likely be wrong

99. Discovering customer values is hard How can we do it reliably?

100. Some ways we’ve tried to do Discovery Surveys Talk to customers Focus groups Anthropological research Product testing A/B tests Product analytics We need a different approach, focused on Customer Perception of Value

101. Value Discovery Research

102. To discover customer values, we can’t just guess

103. We must get better at asking questions

104. …and get better at listening

105. We must focus exclusively on discovering values one audience at a time… Buyers / Purchasers Evaluators Decision Makers Scouts / Inﬂuencers Users Approvers

106. We must focus exclusively on discovering values one context at a time Awareness Consideration Purchase Usage Advocacy

107. Interviewing for Customer Perception of Value 1. Ask them to describe their past behavior in your chosen context 2. Then ask about their thinking throughout that part of the journey

108. Interviewing for Customer Perception of Value 1. Ask them to describe their past behavior in your chosen context 2. Then ask about their thinking throughout that part of the journey • Listen for how they made their decision, which values mattered most • Don’t mention any features or your ideas • Focus on discovering why. Don’t ask “why” or mention “values”

109. Value Discovery Interviewing Tips Don’t pay interviewees Talk only to people who care Use surveys to screen interviewees Gain insight with live interviews Let them use their own words Avoid yes/no, a/b or forced choices Don’t mention your product or feature Learn what they care about Quantify the intensity of their values Learn which values matter most Don’t disagree, prove or sell Learn what they think

110. Customer Perception of Value Mini-Workshop 1. Ask a neighbour to name a recent considered purchase 2. Ask them to describe their buying behavior in detail, start to finish Ask only about the past — not the present or future 3. Ask about their thinking along the journey they described Listen What led them to do the things that they did? How did they go about evaluating and arriving at their final decision? Listen carefully for their values and be empathetic!

111. Your insights into Perception of Value

112. You have new tools & skills Congratulations!

113. What have we learned?

114. Values first! Values are discoverable You don’t need a product, feature, wireframe or even an idea It’s actually better if you don’t

115. Traditional Discovery vs. Value Discovery Instead of We can now

116. Instead of trying to excel at everything

117. We can excel at satisfying our customers’ top values

118. Measuring our progress Instead of We can now Design → Build → Measure Measure values first   Design → Build → Measure

119. Maximizing Customer Perception of Value A North Star we can all focus on

120. We’re not done yet...

121. How can you make this work at work?

122. Starting with value discovery Start small Be curious Collaborate Reduce bias Iterate

123. Sharing your experience What works What doesn’t Questions Answers

124. We’re on a journey Toyota Manufacturing Waste → Quality Agile Coding Waste → Feedback Lean Optimization Waste → Speed Values First Discovery Waste → Success

125. Remember...

126. Your job is hard!

127. You now have new values-first tools and skills

128. Your job is great!

129. Right From The Start From Failing Fast to Succeeding Sooner Alan Albert marketfit.com alan@marketfit.com linkedin.com/in/alanalbert @a_albert #values-first