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