Using the HBR's Elements of Value Pyramid to drive better adoption and increase value of your projects and products. Project development and product development is greatly enhanced when you use this pyramid for spurring talking points as you work.
2. At the end of this session you will
Be introduced to the HBR Elements of Value
Understand the different levels of value
Understand each value aspect
Understand why covering as many levels of the
pyramid as possible during product development
will promote adoption and desirability.
10. Let’s Apply the Pyramid
What products or brands do you think make
the best use of the ideas represented in the
value pyramid?
Which levels and attributes do you think they
use?
What products or brands do you think failed to
appropriately use the ideas represented in the
value pyramid?
11. Talking About Value
Use the pyramid to spur discussions about how
you can tailor the product to fit more of the
value attribute levels and attributes.
Use customer personae to discuss how you
might answer different value attributes for
different market segments.
Challenge the team to think about the
intangible attributes and what getting them
wrong or right could mean for your product.
12. Now, you
Have seen the HBR Elements of Value
Understand the different levels of value
Understand each value aspect
Understand why covering as many levels of the
pyramid as possible during product development
will promote adoption and desirability.
Editor's Notes
https://hbr.org/2016/09/the-elements-of-value
Maslow’s hierarchy of needs is a psychological theory proposed by Abraham Maslow in 1943. His paper "A Theory of Human Motivation“ was published in Psychological Review. This theory posits that as a person develops, their needs develop along with them in a progression. This progression goes from the most basic needs to maintain life to those that allow a human to feel a part of something greater. The idea was that as one level of need was satisfied, the person was able to progress to where they could seek satisfaction of the next level of needs.
In 2016, Eric Almquist, John Senior, and Nicolas Bloch published an article in the Harvard Business Review. This article used a similar idea as Maslow’s, defining product value as moving through several different layers in terms of the possibilities of value. This article outlining their framework for breaking down value into various categories from the most basic to the most aspirational. This pyramid provides business analysts and others a convenient way to explore and analyze product value as they develop a product. The major categories are: Functional, meaning attributes in this area meet a simple need. These needs are discreet and are generally easy to measure. Functional requirements can be thought of as “What the product can get accomplished for the customer.” The emotional category represents a more subjective value to the customer. In what way does it satisfy or feed into the psychological/emotional needs of the customer. Life Changing and Social Impact levels are much more aspirational and speak to the customer’s needs to realize a degree of satisfaction that is beyond themselves, potentially even impacting the future or the world at large.
Let’s work through an example: Forks
Plastic forks help us eat our food. They’re disposable, so they save us time, they also help in that they are light weight and you don’t have to take them back home and wash them.
An inexpensive stainless steel fork is more durable and will last longer over time, it isn’t embarrassing to have your friends over and eat with a good quality fork. Also, it can be aesthetically pleasing. Buying something from a trusted brand, like Oneida, can make us feel reassured that we made a good investment.
A biodegradable or renewably sourced disposable fork can appeal to our sense of hope for the future and self-actualization in that it allows us tap into our desire to be ecologically conscious. Buying a Silver Fork in a beautiful pattern can help us feel like “we belong” to a socio-economic class. It can be something we would consider passing to future generations as an heirloom.
Finally, buying a fork from a company that offers a way to “give back” through supporting independent silversmiths, people in economically disadvantaged situations, etc. can help us feel as though that simple fork is helping us make a social impact outside even ourselves.
