1. +*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+
How to be a
Lean Product
Ninja
Dan Olsen
Olsen Solutions
Silicon Valley
Product Camp
March 24, 2012
+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+

2. My
Background
n Educa6on
n BS,
Electrical
Engineering,
Northwestern
n MS,
Industrial
Engineering,
Virginia
Tech
n MBA,
Stanford
n Web
development
and
UI
design
n 20
years
of
Product
Management
Experience
n Managed
submarine
design
for
5
years
n 5
years
at
Intuit,
led
Quicken
Product
Management
n Led
Product
Management
at
Friendster
n CEO
&
Cofounder
of
YourVersion,
Pandora
for
your
real-­‐6me
news
n PM
consultant
to
startups:
Box.net,
YouSendIt,
Epocrates
Will
post
slides
to
hVp://slideshare.net/dan_o
Copyright
©
2012
Olsen
Solu6ons

3. What
does
“Lean”
mean?
n Lean
Startup
n Achieving
product-­‐market
fit
n Valida6ng
product
with
users
n Improving
&
itera6ng
your
product
quickly
n Tes6ng
hypotheses
&
learning
n Product-­‐market
fit
=
product
management’s
responsibility
Copyright
©
2011
YourVersion

4. Why
“Ninja”?
n High
level
of
exper6se
n Self-­‐sufficient
n Uses
wide
array
of
skills
to
get
the
job
done
Copyright
©
2011
YourVersion

5. What’s
the
Formula
for
Product-­‐Market
Fit?
n A
product
that:
n Meets
customers’
needs
Focus of my
talk today
n Is
beVer
than
other
alterna6ves
n Is
easy
to
use
See my other talks
n Has
a
good
value/price
Copyright
©
2012
Olsen
Solu6ons

6. The
Lean
Product
Ninja
Way:
Steps
to
Achieving
Product-­‐Market
Fit
1. Understand
underserved
customer
needs
2. Define
your
product’s
value
proposi6on
3. Build
wireframe/mockup
4. Get
user
feedback
5. Iterate
Copyright
©
2012
Olsen
Solu6ons

7. Understanding
Customer
Needs
7
Copyright
©
2012
Olsen
Solu6ons

8. Problem
Space
vs.
Solu6on
Space
n Problem
Space
n Solu6on
Space
n A
customer
problem,
n A
specific
need,
or
benefit
that
the
implementa6on
to
product
should
address
n
address
the
need
or
n A
product
requirement
product
requirement
Example:
n Ability
to
write
in
space
NASA:
space
pen
n
(zero
gravity)
($1
M
R&D
cost)
n Russians:
pencil
Copyright
©
2012
Olsen
Solu6ons

9. Problem
Space
vs.
Solu6on
Space:
Product
Level
Problem
Space
Solu6on
Space
(user
benefit)
(product)
Prepare Pen and
my taxes paper
Check my File my TurboTax
taxes taxes
Maximize Reduce TaxCut
deductions audit risk
Copyright
©
2012
Olsen
Solu6ons

10. Problem
vs.
Solu6on
Space:
Feature
Level
Problem
Space
Solu6on
Space
Help me Tax Interview
prepare taxes Wizard
Empowerement/ Reduce my Audit Risk
Confidence audit risk Analyzer
Check my Tax Return
return Error Checker
Save time Tax Data
preparing taxes Downloader
Save Time Save time filing Electronic Tax
taxes Return Filing
Maximize my Tax Deduction
Save Money tax deductions Finder
Copyright
©
2012
Olsen
Solu6ons

11. Priori6zing
Benefits
&
Features
based
on
Customer
Value
n How
do
you
priori6ze:
n Which
user
benefits
should
you
address?
n Which
product
features
to
build
(or
improve)?
n Priori6za6on
should
be
based
on
customer
value
n Importance
vs.
Sa6sfac6on
Framework
n Importance
of
user
need
(problem
space)
n Sa6sfac6on
with
how
well
a
product
meets
the
user’s
need
(solu6on
space)
Copyright
©
2012
Olsen
Solu6ons

12. High
Importance
+
Low
Sa6sfac6on
=
Opportunity
to
Add
Customer
Value
Importance
of
User
Need
High
Compe66ve
Opportunity
Market
Not
Worth
Going
Aner
Low
Low
High
User
Sa6sfac6on
with
Current
Alterna6ves
Copyright
©
2012
Olsen
Solu6ons

13. Kano
Model:
User
Needs
&
Sa6sfac6on
User
Sa6sfac6on
Delighter
(wow)
Performance
(more
is
beVer)
Need
Need
not
met
fully
met
Must
Have
Needs
&
features
migrate
over
6me
User
Dissa6sfac6on
Copyright
©
2012
Olsen
Solu6ons

14. Importance
vs.
Sa6sfac6on
Ask
Users
to
Rate
for
Each
Feature
100 98
Great
95
84 87
90
Bad
86
85 79 84
55 70
80
Importance
80
75 72
80
70
75
65
60
55
41
50
40 50 60 70 80 90 100
Satisfaction
Recommended
reading:
What
Customers
Want
by
Anthony
Ulwick
Copyright
©
2012
Olsen
Solu6ons

15. What
is
Your
Value
Proposi6on?
n Which
user
benefits
are
you
providing?
n How
are
you
beVer
than
compe6tors?
Compe&tor
A
Compe&tor
B
You
Must
Have
Benefit
1
Y
Y
Y
Performance
Benefit
1
High
Low
Med
Performance
Benefit
2
Low
High
Low
Performance
Benefit
3
Med
Med
High
Delighter
Benefit
1
Y
-­‐
-­‐
Delighter
Benefit
2
-­‐
-­‐
Y
Copyright
©
2012
Olsen
Solu6ons

16. Building
Wireframes/
Mockups
16
Copyright
©
2012
Olsen
Solu6ons

17. Geqng
Customer
Feedback:
Problem
Space
vs.
Solu6on
Space
n Customers
CAN’T
ar6culate
problem
space
n Customers
CAN
react
to
solu6on
space
n That’s
why
you
need:
n Wireframes:
low
to
medium
fidelity
visual
representa6on
of
your
product
n Mockups:
high
fidelity
visual
representa6on
of
your
product
n Prototype:
working
version
of
your
product
that
emulates
its
func6onality
(throw-­‐away)
Copyright
©
2012
Olsen
Solu6ons

18. Quick
Survey
of
Wireframing
Tools
n Visio
/
OmniGraffle
n Powerpoint
n Photoshop
/
Illustrator
/
Fireworks
n Balsamiq
n Others?
Copyright
©
2012
Olsen
Solu6ons

19. Prototype
Fidelity
vs.
Effort
3 Photoshop
Product
Fidelity of Prototype
Manager
2 Balsamiq
1 Visio
UI Designer
Hand
sketch
Effort to Create Prototype
Copyright
©
2012
Olsen
Solu6ons

21. Product
Managers
Should
Wireframe
n In
case
you
don’t
have
UX
designer
(onen)
n To
clarify
and
refine
your
thinking:
n Informa6on
Architecture,
layout,
naviga6on
n To
communicate
your
product
ideas
to
other
team
members
n Modern
tools
make
it
easy
Copyright
©
2012
Olsen
Solu6ons

22. Why
Every
PM
Should
Use
Balsamiq
n Super
easy
to
learn
and
use
n Widget
library
has
most
UI
elements
n Can
annotate
with
s6cky
notes
n Can
add
click
naviga6on
between
pages
to
illustrate
a
user
story
n Can
export
as
PDF
(so
others
don’t
need
to
have
Balsamiq),
mul6ple
pages
in
1
PDF
n Best
$79
you’ll
spend
n hVp://www.balsamiq.com
Copyright
©
2012
Olsen
Solu6ons

23. Learning
from
Customers
23
Copyright
©
2012
Olsen
Solu6ons

24. What
Are
You
Going
to
Get
Feedback
&
Learnings
About?
Problem
Space
Solu6on
Space
(your
mental
model)
(what
users
can
react
to)
Feature
Set
Customer
Understanding
(needs
&
preferences)
UI
Design
Messaging
Copyright
©
2012
Olsen
Solu6ons

25. Ramen
User
Feedback
for
Startups
n Anyone
can
do
it!
n Ingredients:
n Solu6on-­‐space
product/mockup
to
test
n 1
customer
(with
laptop
if
tes6ng
code)
n 1
desk
n 1
person
to
conduct
the
session
n Pen
and
paper
n Op6onal
note-­‐taker
and
observers
Copyright
©
2012
Olsen
Solu6ons

26. Typical
Format
for
Customer
Session
n 5
-­‐
10
min:
Ask
ques6ons
to
understand
user
needs
and
solu6ons
they
currently
use
n 30
-­‐
50
min:
User
feedback
n Show
user
product/mockup
n Non-­‐directed
as
much
as
possible
n When
necessary,
direct
user
to
aVempt
to
perform
a
specific
task
n 5
-­‐
10
min:
Wrap-­‐up
n Answer
any
user
ques6ons
that
came
up
n Point
out/explain
features
you
want
to
highlight
n Ask
them
if
they
would
use
the
product
Copyright
©
2012
Olsen
Solu6ons

27. Dos
&
Don’ts
of
User
Feedback
Sessions
n Do
n Explain
to
the
user:
n Their
feedback
will
help
improve
the
product
n Not
to
worry
about
hur6ng
your
feelings
n Think
Aloud
Protocol
n Ask
user
to
aVempt
the
task,
then
be
a
fly
on
the
wall
n Ask
non-­‐leading,
open-­‐ended
ques6ons
n Take
notes
and
review
them
anerwards
for
take-­‐aways
n Don’t
n Ask
leading
ques6ons
n Help
the
user
or
explain
the
UI
(e.g.,
click
over
here )
n Respond
to
user
frustra6on
or
ques6ons
(un6l
test
is
over)
n Get
defensive
n Blame
the
user
Copyright
©
2012
Olsen
Solu6ons

28. Iterate
Your
Wireframes
Based
on
Feedback
Copyright
©
2012
Olsen
Solu6ons

29. Itera6ng
Your
Product
Vector
Based
on
User
Feedback
in
Solu6on
Space
Problem
Space
Solu6on
Space
(your
mental
model)
(what
users
can
react
to)
Help
user
Help
user
book
travel
plan
travel
Mockups
/
Code
Customer
Feedback
Copyright
©
2012
Olsen
Solu6ons

30. Case
Study
on
Product-­‐Market
Fit:
Marke6ngReport.com
30
Copyright
©
2012
Olsen
Solu6ons

31. Product-­‐Market
Fit
Case
Study:
Marke6ngReport.com
n My
consul6ng
client,
CEO
of
TrustedID,
had
an
idea
for
a
new
product
n Team:
me,
CEO,
head
of
marke6ng,
UI
design
consultant
n Goal:
n Validate
product-­‐market
fit
quickly,
cheaply
without
wri6ng
a
single
line
of
code
n Determine
if
their
was
a
business
opportunity
here
Copyright
©
2012
Olsen
Solu6ons

32. Product-­‐Market
Fit
Case
Study:
Developing
Product
Concept
n Product
Concept
was
marke6ng
report
that
let
consumers
control
the
direct
mail
that
they
receive
n Concept
was
fuzzy
with
various
components,
so
I
broke
it
into
2
different
flavors :
n #1
Marke6ng
Shield :
Service
to
reduce/stop
junk
mail
n #2
Marke6ng
Saver :
Opt
in
&
receive
money-­‐saving
offers
n Each
product
concept
consisted
of
several
modules
that
each
mapped
to
a
specific
user
benefit
n Worked
with
UI
designer
to
create
paper
mockups
of
pages
for
each
flavor
concept
(5
pages
each)
Copyright
©
2012
Olsen
Solu6ons

33. Copyright
©
2011
YourVersion

34. Copyright
©
2011
YourVersion

35. Clustering
Poten6al
User
Benefits
to
Create
Product
Concepts
Shield Concept Saver Concept
Reduce Find out what Money Compare Social
Junk Mail they know Saving Yourself Networking
about you Offers to Others
Save Marketing
Trees Report
Marketing Marketing
Score Profile
Copyright
©
2012
Olsen
Solu6ons

36. Product-­‐Market
Fit
Case
Study:
Recrui6ng
People
n Telephone
recruit
of
prospec6ve
customers
n Wrote
phone-­‐screen
ques6onnaire
to
create
rough
target
customer
segmenta6on
n Wanted
users
who
work
full-­‐6me
&
use
internet
n Fit
for
opt-­‐in
concept:
use
coupons,
Costco
membership
n Fit
for
an6-­‐junk
mail
concept:
use
paper
shredder,
block
caller
ID
n Scheduled
3
groups
of
2
or
3
people
to
discuss
each
product
concept
for
90
minutes
n Moderated
each
group
through
the
paper
mockups
to
hear
their
feedback
Copyright
©
2012
Olsen
Solu6ons

37. Product-­‐Market
Fit
Case
Study:
Findings
on
Concepts
&User
Benefits
Shield Concept Saver Concept
Reduce Find out what Money Compare Social
Junk Mail they know Saving Yourself Networking
about you Offers to Others
Save Marketing
Trees Report
Legend
Marketing Marketing
Score Profile Strong appeal
Somewhat positive
Low appeal
Copyright
©
2012
Olsen
Solu6ons

38. Product-­‐Market
Fit
Case
Study:
Learnings
from
Research
n Learned
that
Shield
(an6-­‐junk
mail)
concept
was
stronger
than
Saver
n People
didn’t
like
many
of
the
Saver
concept
components
n Learned
users’
concerns
/
ques6ons
about
Shield
concept
n Refined
Shield
concept:
n Removed
irrelevant
components
n Improved
messaging
to
address
user
concerns
/
ques6ons
n Validated
revised
Shield
concept
with
quick
2nd
round
of
tests
n No
customer
concerns
n Clear
willingness
to
pay
Copyright
©
2012
Olsen
Solu6ons

39. Copyright
©
2011
YourVersion

40. Product-­‐Market
Fit
Case
Study:
Summary
n 4
weeks
from
1st
mee6ng
to
validated
product
concept
with
zero
coding
n Cost
$1,500
to
talk
to
20
users
($75
each)
n 1
round
of
itera6on
on
product
concept
n Iden6fied
compelling
concept
that
users
are
willing
to
pay
$10/month
for
n Trimmed
away
non-­‐valuable
pieces
n You
can
achieve
similar
results
Copyright
©
2012
Olsen
Solu6ons

41. Metrics
to
Validate
Product-­‐Market
Fit
n Survey
results
n Importance
&
Sa6sfac6on
n Net
Promoter
Score
n Survey.io/MustHaveScore.com
n How
would
you
feel
if
you
could
no
longer
use
Product
X?
n Very
disappointed,
Somewhat
disappointed,
Not
disappointed
n User
behavior
n Prospects
sign
up
(high
conversion
rate)
n They
keep
using
it
(high
reten6on
rate)
n They
use
it
onen
(high
frequency
of
use)
Copyright
©
2012
Olsen
Solu6ons

42. Op6miza6on
through
Itera6on:
Con6nuous
Improvement
Measure
the
metric
Analyze
Learning
the
metric
Gaining
knowledge:
•
Market
Iden6fy
top
•
Customer
opportuni6es
to
improve
•
Domain
•
Usability
Design
&
develop
the
enhancement
Launch
the
enhancement
Copyright
©
2012
Olsen
Solu6ons

43. Lean
Product
Ninja
Cheat
Sheet
n Understand
the
problem
space
to
iden6fy
underserved
customer
needs
n Define
your
value
proposi6on
n Create
wireframes/mockups
n Get
user
feedback
n Revise
your
feature
set,
UI
design,
and
messaging
to
improve
product-­‐market
fit
n Launch,
learn,
and
iterate
Copyright
©
2012
Olsen
Solu6ons

44. +*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+
Questions?
hVp://olsensolu6ons.com
hVp://slideshare.net/dan_o
@danolsen
+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+