Strategy to Execution - shipping products while adapting to new information - web version

1 STRATEGY TO EXECUTION Shipping products while adapting to new infomation JONNY SCHNEIDER Principal, ThoughtWorks UK  Service Design and Product Strategy @jonnyschneider jschneider@thoughtworks.com

2 Predicting the future is hard. http://upload.wikimedia.org/wikipedia/commons/0/03/Edison_and_phonograph_edit1.jpg

2 Predicting the future is hard. http://upload.wikimedia.org/wikipedia/commons/0/03/Edison_and_phonograph_edit1.jpg The phonograph was imagined only for dictation, not entertainment In 1908, he remarked that the aircraft had no future In 1912, his vision for concrete furniture and homes wasn’t shared Even Thomas Edison got it really wrong

3 …many plans are built on projections of future prices and costs that are almost invariably wrong —Michael E. Porter https://www.ﬂickr.com/photos/worldeconomicforum/5397052359

4 43% Average project cost over-run 71% → came in over budget → exceeded time estimates → underestimated scope $ 55b Annual waste https://www.ﬂickr.com/photos/jonathancohen/4766990832 Chaos Report, Standish Group, 2004. of projects

Adapt, don’t predict. https://www.ﬂickr.com/photos/jonathancohen/4766990832

½ business ½ design

½ business ½ design My job is to create viable digital products I’m Jonny Schneider That people love to use

7 Technology

7 Technology I work with Technology teams, because I like to ship Also, engineering is design

EXPLOREUNDERSTAND CREATEDEFINE strategy and tactics initial vision solution LEARN BUILD MEASURE DEFINE STRATEGY EXECUTE SOLUTION Understand why & deﬁne how Create the outcome Adapted and extended from British Design Council. A way of thinking, not a framework The ‘Double Diamond’, adapted from Industrial Design Brings strategy closer to execution

9 Divergent ConvergentEmergent You’ll never ﬁnd anything… unless you’re looking for something. — Dave Gray, xPLANE

10 AGILE Build the   thing right LEAN Build the   right things +DESIGN THINKING Explore  problem/solution +

EXPLORE CREATEDEFINEUNDERSTAND Observe customer behaviour, business processes and technology A search for meaningful questions Paint a picture of the ecosystem

Designers don’t search for a solution until they have determined the real problem, and even then, instead of solving that problem, they stop to consider a wide range of potential solutions. Only then will they converge upon their proposal. —Donald Norman

EXPLORE CREATEUNDERSTAND DEFINE Formulate the ﬁrst expression a strategy for future success Synthesise new knowledge and assess the opportunities Do just enough to enable action to occur

Strategy is about action, about doing something… there is no greater tool for sharpening strategic ideas than the necessity to act. —Richard P. Rumelt

CREATEEXPLOREUNDERSTAND DEFINE Try something, learn something, invest incrementally to pursue success Clear goals frame a search for the right solutions

EXPLOREUNDERSTAND DEFINE CREATE Reﬁne, hone and optimise the proposition As the right solution becomes clear, focus on ﬁdelity Go to market, but don’t stop learning

17 Theory into practice.

18 TRIGGER REDUCE COST OF ACQUISITION SIMPLIFY THE BUSINESS BUSINESS IMPERATIVES It starts with high-level imperatives This helps us to understand the current condition

18 TRIGGER REDUCE COST OF ACQUISITION SIMPLIFY THE BUSINESS UNDERSTAND CURRENT CONDITION OBSERVATION AND JOINING THE DOTS BUSINESS IMPERATIVES They’re often vague, and not immediately actionable So, we need to go see, make observations, and join the dots

18 TRIGGER Process Analysis Operational Research Observation Customer Research Behavioural   Analysis Value Stream Mapping Customer Archetypes Design Thinking  Ideation Context Map Service Blueprint & OPPORTUNITIES EMERGENT PROBLEMS REDUCE COST OF ACQUISITION SIMPLIFY THE BUSINESS UNDERSTAND CURRENT CONDITION OBSERVATION AND JOINING THE DOTS BUSINESS IMPERATIVES There are a lot of ways to do that When we do, opportunities emerge from understanding

18 TRIGGER Process Analysis Operational Research Observation Customer Research Behavioural   Analysis Value Stream Mapping Customer Archetypes Design Thinking  Ideation Context Map Service Blueprint & OPPORTUNITIES EMERGENT PROBLEMS ASSESS VIABILITY, SELECT FOR IMPACT DEFINE TARGET CONDITION REDUCE COST OF ACQUISITION SIMPLIFY THE BUSINESS UNDERSTAND CURRENT CONDITION OBSERVATION AND JOINING THE DOTS BUSINESS IMPERATIVES Based on new insight, how might we succeed? Assess and select the most promising options Formulate your hypotheses

18 TRIGGER Process Analysis Operational Research Observation Customer Research Behavioural   Analysis Value Stream Mapping Customer Archetypes Design Thinking  Ideation Context Map Service Blueprint & OPPORTUNITIES EMERGENT PROBLEMS ASSESS VIABILITY, SELECT FOR IMPACT DEFINE TARGET CONDITION REDUCE COST OF ACQUISITION SIMPLIFY THE BUSINESS Kano Analysis Value Proposition Opportunity Assessment Hypothesis Elaboration Devil’s Advocate Innovation Accounting Weighting Matrix Evaluation Frameworks Pirate Metrics Prioritisation UNDERSTAND CURRENT CONDITION OBSERVATION AND JOINING THE DOTS FIRST EXPRESSION OF STRATEGY BUSINESS IMPERATIVES Again, there are many ways to do that Now deﬁne the target condition and ﬁrst expression of strategy Accept that it’s fuzzy and incomplete

VISION AND STRATEGY (HYPOTHESES) FIRST EXPRESSION OF STRATEGY

VISION AND STRATEGY (HYPOTHESES) prototypes quantitative analytics qualitative ﬁeldwork marketing experiments innovation lab co-design FIRST EXPRESSION OF STRATEGY EXPERIMENTS EXPLORE WITH EXPERIMENTS This is about reducing uncertainty, not absolute truth Experiments are a cheap way to get more information Try something. Learn. Invest in the next experiment

VISION AND STRATEGY (HYPOTHESES) prototypes quantitative analytics qualitative fieldwork marketing experiments innovation lab co-design FIRST EXPRESSION OF STRATEGY REFINE AND ADAPT STRATEGY EXPERIMENTS EXPLORE WITH EXPERIMENTS Refine and adapt to what is learned As learning increases, fidelity increases

VISION AND STRATEGY (HYPOTHESES) prototypes quantitative analytics qualitative ﬁeldwork marketing experiments innovation lab co-design FIRST EXPRESSION OF STRATEGY REFINE AND ADAPT STRATEGY CREATE SOFTWARE SOLUTIONS do PLAN AND MANAGE DELIVERY check EXPERIMENTS EXPLORE WITH EXPERIMENTS As conﬁdence increase, create the real solution Move from exploring opportunities, to exploiting product solutions

VISION AND STRATEGY (HYPOTHESES) prototypes quantitative analytics qualitative ﬁeldwork marketing experiments innovation lab co-design FIRST EXPRESSION OF STRATEGY REFINE AND ADAPT STRATEGY new discoveries WORKING SOLUTIONS CREATE SOFTWARE SOLUTIONS do PLAN AND MANAGE DELIVERY check EXPERIMENTS EXPLORE WITH EXPERIMENTS Even though we’re building a solution, it’s still an experiment Continue to reﬁne, adapt and experiment

20 Lessons From The Trenches (Global Blue Experience Report) Lessons from the trenches.

21 LessonOne Test the right things,   in small chunks, within a real system.

bit.ly/hypothesis-driven Good start, but it’s harder than it sounds

This sounds okay, but it’s not very easy to test

evolved version of hypothesis template 30 AWARE, INFORMED AND ON-BOARDED We believe that Better informing travellers about Tax Free Refund steps and process ! Will result in an increase in repeated usage of the Global Blue app We will know we’ve succeed when IN PROTOTYPE REAL Number of ‘active/engaged’ users increases by Accuracy of submitted forms increases by PLAN Acquisition 6% 30% This was to measure customer acquisition All experiments are not created equal But it’s not about product/market ﬁt at all… It’s about optimising the execution of a sign-up ﬂow

LessonTwo Aim for learning, not validation.

Aspirational Customer Journey

Aspirational Customer Journey Product Hypotheses

Aspirational Customer Journey Product Hypotheses Design Experiments

Aspirational Customer Journey Product Hypotheses Design Experiments User Story Map

Aspirational Customer Journey Product Hypotheses Design Experiments User Story Map Data/feedback

10 HUNDREDS of ideas 12 FOUNDATION HYPOTHESES maximum reach foundation touch-points mapped to revenue funnel 3 OF 12 validated 4 OF 12 in progress 5 OF 12 to be started

LessonThree Changing people is harder than changing software.

© 2015 ThoughtWorks, Ltd. All rights reserved. HEAD OF   CUSTOMER  SUCCESS FOUNDER TECHNOLOGY  DISRUPTOR PRACTICALLY CURIOUS SYNTHETIC THINKER BUILDER OF BRIDGES MASTER OF GETTING WORK DONE PRAGMATIC DETERMINATION FLEXIBLE RULE BENDER BOUNDARY PUSHER EMOTIONALLY INTELLIGENT AFFABLE PURSUES COMMON VISION RELATIONSHIP MAVEN FRONT-END ENGINEERING INTERACTION DESIGN VISUAL DESIGN CUSTOMER RESEARCH SERVICE DESIGN DIGITAL PRODUCT STRATEGY BUSINESS ARCHITECTURE TECHNOLOGY ARCHITECTURE SOFTWARE DEVELOPMENT RETAIL STRATEGY ORGANISATION DESIGN DELIVERY ASSURANCE DIGITAL TRANSFORMATION right PEOPLE right SKILLS Change needs to be owned, not imposed Know your limits, don’t be a hero Diﬀerent phase of product development require diﬀerent mindsets

31 Lessons From The Trenches (IAG Experience Report) A few other helpful things.

32 Saddle Row Example Get familiar with lean techniques Practice Customer Development on a ﬁctitious business Train your team to think big, start small, and act fast

33 2 DESCRIPTION AND NOTES: write, draw or sketch how your idea works. 1 CATEGORY OPERATIONAL BENEFIT CONVERSION FUNNEL PRIMARY FOCUS STREAMLINE OPERATIONS cost reduction Acquisition Activation Retention Revenue Referral Commercial (viability, ﬁnancial) process improvement CUSTOMER ARCHETYPE TYPE OF BENEFIT IMPROVE EXISTING PROPOSITION Digital Natives Family Traveller Aﬄuent Indulger Mainstream Traveller Value Vacationer Purposeful Business High Flying Globe Trotter Flying Practitioner Air Warrior Value Business __________ __________ __________ pain relief Technology (feasibility, innovation) CREATE NEW   PROPOSITION gain creator Experience (desirable to customer) TITLE: A little structure can goes a long way http://bit.ly/uxscot-idea-cards

34 Questions? http://thedogist.com

JONNY SCHNEIDER Principal, ThoughtWorks UK  Service Design and Product Strategy @jonnyschneider jschneider@thoughtworks.com THANKS