How to be a Lean Product Ninja by Dan Olsen

How to be a Lean Product Ninja by Dan Olsen

• 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   +*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+*+