Some thoughts on our ‘product  hacking incubator’ process        Version 0.1. Prepared by Nick. 28th Jan 2013.
Contents1. Types of process2. Why it matters3. General processes to learn from4. Personal experiences to learn from5. Assu...
Types of processes•   Ideation process - how we come up with new ideas•   Selection process - how we choose what to work o...
Why it matters1. If you cant measure it you cant improve it (or invest in it)2. We want to make a multi-product company, s...
General processes we are starting with1. Agile = Sprints, estimates, stand-ups, Product Owners, shipping frequently2. Lean...
Personal experiences we can learn from•   Paul and Stefs independent experience of doing different product centric startup...
Assumptions about our process1. We want to make some significant money out of this business2. We will always try to make ev...
Financial targets•   Well make money in two ways: Revenue from software sales to end users, or, one off sales of whole    ...
High level process candidate                    DECIDE                                         DECIDE                DECID...
Implications for the core Makeshift team•   Product guys - takes responsibility for product vision and getting product shi...
Practical recommendations•   Two week rhythm•   Get good at making decisions•   Get good at holding product leads accounta...
Practical recommendations1. PITCH                                      2. HACK              3. MAKE     4. SHIFT•   Anyone...
Practical recommendations1. PITCH                                      2. HACK              3. MAKE   4. SHIFT•   To go to...
Practical recommendations1. PITCH                                       2. HACK              3. MAKE   4. SHIFT•   To get ...
Practical recommendations1. PITCH                                      2. HACK              3. MAKE   4. SHIFT•   Lets tal...
Another way...Sack all this off for nowand just keep it open andvery experimental?      We make products that give a leg u...
Actions summaryACTION: Get a reading list for all of us, and get copies of books on the desk.ACTION: Write a blog post on ...
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Makeshift Process v0.1

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Internal presentation to prompt conversation on product development process

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Makeshift Process v0.1

  1. 1. Some thoughts on our ‘product hacking incubator’ process Version 0.1. Prepared by Nick. 28th Jan 2013.
  2. 2. Contents1. Types of process2. Why it matters3. General processes to learn from4. Personal experiences to learn from5. Assumptions about our process6. Financial targets7. High level process candidate8. Implications for the core Makeshift team9. Practical recommendations10. Summary of actions We make products that give a leg up to the little guy 2
  3. 3. Types of processes• Ideation process - how we come up with new ideas• Selection process - how we choose what to work on and invest in• Development process - how we get products to market and manage teams• Business process / model - how we make money out of the above We make products that give a leg up to the little guy 3
  4. 4. Why it matters1. If you cant measure it you cant improve it (or invest in it)2. We want to make a multi-product company, so we need a view of a higher level management process. If we were just doing one product wed just talk about the processes needed to ship that product. Doing multiple means we need a way of avoiding spinning wheels but getting nowhere.3. We want to create a culture of innovation and creative freedom - but also one of mutual value creation. Process helps us avoid silos. We make products that give a leg up to the little guy 4
  5. 5. General processes we are starting with1. Agile = Sprints, estimates, stand-ups, Product Owners, shipping frequently2. Lean Startup = Building/measure/learn, Customer Development, Pivoting, MVPs3. The design studio = Multiple projects, shared design languages, overlapping teams4. Hacking = Getting good at getting fast, using existing stuff, experimentation5. Tech startup investment ecosystem = Tiered investment stages, incubation, accelerationACTION: Get a reading list for all of us, and get copies of books on the desk. We make products that give a leg up to the little guy 5
  6. 6. Personal experiences we can learn from• Paul and Stefs independent experience of doing different product centric startups• Pauls experience of investing in early stage companies• Stef and Nicks independent(ish) experience of running design studios• Stef and Nicks shared experience of hacking on products together and Pauls independent experience of the same• Nicks experience of doing innovation process consulting for different big companies• Paul’s experience of working on product development in different big companiesACTION: Write a blog post on our experiences and what we learnt about shipping products people want. We make products that give a leg up to the little guy 6
  7. 7. Assumptions about our process1. We want to make some significant money out of this business2. We will always try to make evidence based / data driven decisions - this is hard at the start thoughSo, as a starter for ten…Makeshift is an early stage product development company that is really good at creating productsthat people want, and then building teams to take them to scale.= Get good at making products people want= Get good at building teams We make products that give a leg up to the little guy 7
  8. 8. Financial targets• Well make money in two ways: Revenue from software sales to end users, or, one off sales of whole products to investors / acquirers, or, both.• If Paul wants 10x on his £400k we need to create a business that could be sold for £16M with no additional investment. This implies a business that reliably turns over £5-6M and is growing fast.• Making money through model one we need products that make £100,000 a month = £1.2M a year. We need to get three of these to get over our £16M valuation. Could be done in 3 years?• Making money through model two we need to be selling whole products for £5-6M and need to have done it three times? Could be done in 3 years?ACTION: Create a credible three year business plan with revenue targets We make products that give a leg up to the little guy 8
  9. 9. High level process candidate DECIDE DECIDE DECIDE DECISIONS1. PITCH 2. HACK 3. MAKE 4. SHIFTHave idea and create Create hack, do Launch it, get early Recruit a dedicatedmini business case, customer research, adopters, measure team, turn the hackincluding estimated iterate project costs response, prepare full into a reliable product,project costs business plan and costs get more users~£1k ~£8k ~£30k ~£70-150k~2 days ~2 weeks ~2 months ~3-6 months 5. RAISE Raise external finance from appropriate We make products that give a leg up to the little guy sources to invest into the business once we 9 have demonstrated revenue and growth
  10. 10. Implications for the core Makeshift team• Product guys - takes responsibility for product vision and getting product shipped within the agreed resources. Should be able to do some design, tech or marketing work, and be very comfortable and able to support specialists doing this.• Tech guys (hackers) - take responsibility for developing complete end to end software product. Needs to conform to our shared software stack so we can get more than one person working on the product.• Marketing guys - support product design from a marketing perspective and the early stage marketing of the products• Graphic guys - we need lots of freelance branding / graphics guys who can swoop in and add polish• IMPORTANT - I think that product guys have to be separate from tech guys. Debate. We make products that give a leg up to the little guy 10
  11. 11. Practical recommendations• Two week rhythm• Get good at making decisions• Get good at holding product leads accountable We make products that give a leg up to the little guy 11
  12. 12. Practical recommendations1. PITCH 2. HACK 3. MAKE 4. SHIFT• Anyone can do a pitch. We review pitches every two weeks.• To go to the Hack stage we need to see a clear project plan, a product and business hypothesis with projections, and there must be a product guy and a tech guy that want to do it. The project plan is really important, because it allows us to get other people in to work on stuff.• You need a simple majority to get to the Hack stage.• This team then gets its funding to do the hack and has to report in every two weeks. We make products that give a leg up to the little guy 12
  13. 13. Practical recommendations1. PITCH 2. HACK 3. MAKE 4. SHIFT• To go to the ship stage there must be a working prototype for us to evaluate, and some validated customer demand (probably qualitative) and a more detailed financial plan for the product and business. There must also be a detailed resource plan.• You need a consensus to get to the Ship stage.• This team then gets its funding and has to report in every two weeks. We make products that give a leg up to the little guy 13
  14. 14. Practical recommendations1. PITCH 2. HACK 3. MAKE 4. SHIFT• To get to the Make stage you need evidence of use and growth.• Thats it.• No product stays in ‘make’ for more than three months. We make products that give a leg up to the little guy 14
  15. 15. Practical recommendations1. PITCH 2. HACK 3. MAKE 4. SHIFT• Lets talk about this when we get there? We make products that give a leg up to the little guy 15
  16. 16. Another way...Sack all this off for nowand just keep it open andvery experimental? We make products that give a leg up to the little guy 16
  17. 17. Actions summaryACTION: Get a reading list for all of us, and get copies of books on the desk.ACTION: Write a blog post on our experiences and what we learnt about shipping products people want.ACTION: Create a credible three year business plan with revenue targetsACTION: Start working to a two week sprint rhythmACTION: Start writing project plans for Bitsy, Listerly and Help me WriteACTION: Create a standard pitch presentation template We make products that give a leg up to the little guy 17

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