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I’m joining HYPE to help companies get more value from innovation

HYPE Innovation logoIt is my pleasure and honor to announce that today I’ve joined HYPE Innovation as a full-time Senior Consultant. HYPE provides an enterprise innovation management software platform – HYPE Enterprise – used by large companies around the globe. In my consulting role, I’ll be working hands-on with customers across the phases of innovation maturity:

  • Beginning the journey toward a more collaborative innovation approach
  • Expanding usage as they gain experience and see results
  • Developing advanced ecosystems to drive next generation business models and products

This role is a change for me, moving from product to consulting.  But it’s one I embrace and I’m looking forward to. I’ve talked a lot here about the need to understand customers’ jobs-to-be-done. By working side-by-side with organizations, I’m going to have a deep understanding of their jobs-to-be-done for innovation and problem-solving. And even better, an opportunity to help make them successful.

HYPE is headquartered in Bonn, Germany, and I’ll be working from San Francisco. In this post, I want to cover two areas:

  1. State of the innovation management market
  2. What makes HYPE special

State of innovation management market

Enterprise traction

Over the past five years, I’ve worked with a number of customers and thought leaders in the innovation management space. People that are committed to and passionate about this. The first thing to know is that enterprises are actively exploring ways to be better at innovating. Many, IDC Predictions 2014many of the companies you know and buy products and services from. From its roots as online suggestions boxes, innovation management has become a full-fledged corporate discipline. In fact, research firm IDC forecasts that by the end of 2016, 60% of the Fortune 500 will be using social-enabled innovation management solutions. Which, if you follow the innovation diffusion lifecycle, means we’ll start to see the late majority taking it up.

Focused ideation

When I began working in the innovation field, the primary use case for innovation management software was to be an open suggestion box, equipped with social features (visibility, commenting, voting). Anytime someone had an idea, they had a place to post it. Unfortunately, that approach proved limited in engagement and value. Thus, that model has changed significantly the past few years. Organizations are now running campaigns that target narrow, specific topics. They are time-boxed events, which in a broad  sense is a form of game mechanic that spurs greater participation. Campaigns offer these advantages:

  • Ready recipients – campaign sponsors – to engage, elaborate and select ideas
  • Continuously refreshing the program and reason for people to participate
  • Address specific organization needs

Beyond innovation

Innovation – however you define it – continues to be a prominent use case. And with good reason, as CEOs rate it a top priority. There are multiple disciplines that address innovation: crowdsourcing, design thinking, TRIZ, incubators, lean startup, etc. Generally, innovation is considered creating something new which adds value.

But I’m seeing signs that crowdsourcing  is being applied in other ways outside the traditional view of innovation. Here are three examples:

  • Problem-solving: An example of this is cost-saving initiatives. People out on the front lines are seeing opportunities for improvement that are hidden from decision-makers in the headquarters.
  • Positive deviance: In every large organization, there are people who have figured out a different, better way to do something. Crowdsourcing helps find these people, and their novel approaches can be identified and shared.
  • Trend-spotting: With an army of employees out in the field, organizations have a ready way to canvas an area. People can post what they’re seeing, a valuable source of raw insight.

Idea development, evaluation and selection take center stage

When I talk with people not familiar with the innovation management field, I find their understanding often to be, “Oh, so it’s an idea collection app.” That is a necessary feature of course – no ideas, no innovation. But it’s a comical under-representation of what innovation management is. As Professor Tim Kastelle notes:

“Generating ideas is the easiest part. Most organisations already have enough ideas. The challenge for them is not generating more but implementing their existing ideas more effectively.”

As the market matures, companies are seeking ways to better advance the most promising ideas. This is where the puck’s heading.

Innovation becomes part of the purposeful collaboration canon

In the broader enterprise 2.0 social business market, the integration of ‘social’ into core business functions has emerged as the basis of value. This is a change from the movement’s early roots. Constellation Research VP Alan Lepofsky nicely illustrates this evolution to Generation 3 as follows:

Alan Lepofsky socbiz generations

Innovation is a prominent use case that benefits from the application of social and collaboration. You can see more in Alan’s Slideshare presentation on innovation and purposeful collaboration.

What makes HYPE special

From my experience in the industry and in my meetings with the team, three things about HYPE stand out in the innovation management field

  1. Singular focus on customers’ innovation jobs-to-be-done
  2. Market leadership
  3. Demonstrated customer excellence

Singular focus on customers’ innovation jobs-to-be-done

HYPE has over a decade of experience in the innovation market. It’s roots were in the R&D world, with a deep emphasis on how to maximize the value of ideas. In industry parlance, this is sometimes called the “back-end” of innovation. It’s a sophisticated activity with variance in process for each organization. Through the years of working with customers, HYPE has become adept at handling this phase of innovation. I know it’s not easy – I did some initial product work myself in this realm previously. Success here hinges on understanding what customers seek to achieve, and acting on it.

With the rise of social business and increased interest in better utilizing the collective smarts of employees, HYPE moved forward to the “front-end” of innovation. Powerful features include campaign development, participation management, idea surfacing, collaboration and evaluation. With this investment of time and effort, HYPE offers the most functional full-cycle innovation process in the industry:

HYPE - full lifecycle innovation process

With deep expertise built throughout the platform, HYPE is well-positioned to address organizations’ innovation jobs-to-be-done.

Market leadership

Forrester Wave - Innovation Management 3Q13 - rotatedIn the past few years, HYPE has increased its presence in the market, following an investment from ViewPoint Capital Partners. From its roots in Germany, the company has become the leader in Europe. It is now seeing good growth in broader EMEA, the United States and South America.

Recently, Forrester published its Wave for Innovation Management Tools. Analyst Chip Gliedman reviewed 14 of the most significant vendors in the space.  The analysis included:

  • Innovation lifecycle: the components of a complete cycle
  • CIO concerns: governance, security, architecture, integration
  • Product roadmap
  • Management team
  • Vision

HYPE achieved the top overall ranking, the coveted “top right” position of the Wave.

Demonstrated customer excellence

HYPE Customers

HYPE has over 170 customers from around the world. Consistent with my experience, the industries are varied. Some representative names are shown to the left. This is something one sees when it comes to innovation: everyone does it. There’s really not a specific sector that pursues innovation and problem-solving more than others.

HYPE has a number of long-term relationships. And it’s fair to say that once you’re a client of HYPE, you’ll be happy, satisfied and get results. Annual churn is less than 4%. On a monthly basis, that’s roughly 0.3%, at the magic level for enterprise software companies.

That level of customer satisfaction doesn’t “just happen”. Rather, it comes from being dedicated to customers’ success and working to make them successful at their jobs-to-be-done.

That HYPE logo?

Finally, about the HYPE logo. I actually do not yet know the background on it. But take a look at it. See some similarities to different hand gestures?

HYPE logo meaning

I’m looking forward to joining the team.

I’m @bhc3 on Twitter.

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When customers want a product roadmap, do this instead

Product roadmaps suck.Roadmap

There, I said it. <exhales>

OK, let’s explain that. Roadmaps that are real, living documents representing what you will deliver…are awesome. But that may not be the case for you; it wasn’t for me. Instead, a product roadmap was at its core a sales document for a prospect call. A lot of effort, with various people weighing in on what should show up there. Ginning up dates over the next 24-36 months for when features will be delivered. A visually lickable timeline.

And it’s defunct as soon as it’s published. Poor roadmap, it never had a chance. If anyone actually remembers what was in the roadmap months later, you’re left explaining that, “um…yeah…things changed”.

To be fair, this happens more in industries where the level of uncertainty is high. You’re assembling the future, learning as you go along and making adjustments. Industries with stability can put a roadmap out there and stick to it. But if your industry has a lot of fluctuation in its future, roadmaps are an  exercise in futility.

Given this, what’s the point of creating them? For me, a better way to handle the inevitable roadmap requests was needed. Internally for client-facing peers; and with sales prospects and current clients. I took the view that the customer’s roadmap request was essentially about these three questions:

  1. Where will your development resources be focused over the 12-36 months?
  2. Does your view of what’s needed for successful outcomes matches mine?
  3. What are the core values of your platform philosophy?

In other words, knowing that X feature would be rolled out in 12 months wasn’t really what influenced the customer. It wasn’t as if they said, “Oh, that feature will be there in a year? I’ll pay $X for your platform today and begin to use it once that feature is ready.”

I wanted to find a better way. Answer the questions the customer has while avoiding unrealistic commitments and schedules.  So I developed a different approach to requests for a roadmap. It focuses on two core elements:

  • Product themes
  • How we’ll work with the client

Themes are the future the customer is buying. Work with the client describes the ongoing interactions around product design. Both are part of the decision calculus of the customer. Should I go forward with this company or not?

Product themes

Product themes are the core areas that are the means to the outcomes customers seek. When I worked at Spigit, I developed five core themes (conceptualized in below graphic):

Themes

Themes are the broad areas in which the platform needs to excel. They are selected because they are key to satisfying high-level jobs-to-be-done. They will vary by product. An accounting app might have themes around ‘accuracy’, ‘sync with GAAP’ and ‘integration with other apps’. A supplier of chemicals might need to concern itself with ‘potency of compounds’ and ‘safety’.

Themes are where an analytical approach meets a flair for artistry. Internally, they are great for organizing future release efforts. I would actually grade the platform on the themes, using the A to F scale, to help prioritize future effort.

For customers, themes provide a peek into what makes your platform special. You’re communicating a promise for what future releases will address. Customers develop a sense of the platform today, and the platform of the future.

Past + possible features = proof

For the themes, plan on doing more than stating them. Bring them to life by talking features. Yes, this sounds like the roadmap rat-hole. But it’s a different way to do that:

Theme + features

Past features are proof that you are focused on the themes, and they illustrate how you have approached enhancing the themes for clients thus far. They connect the experience of your product today to the themes.

Possible features are a source of excitement, and proof that you’re focused on the themes in future development. They’re not supposed to be a committed list of features over the next 3 years. Rather, they provide a sense for how you’re approaching fulfillment of customers’ jobs-to-be-done. This gives you the chance to talk about some of the ideas floating around in your organization while avoiding the farce of putting dates on when (and if) they’ll be delivered. When asked, I put it to them straight: “These are several ideas we currently have for this theme. What are your thoughts on them?”

Which leads nicely into the other major point to cover…

How we’ll work with the client

In the B2B market, customers want to have direct input into the product design process. Not so much in the consumer market, where we simply stop buying something if it doesn’t satisfy us. But the dollars and reputation that can be on the line in the corporate market translate into greater interest in where the product is going.

To address this desire, communicate how you will work with your customer in the product design process. I would talk about three areas:

Customer insight in product design

Jobs-to-be-done: Ongoing learning about the different things customers seek to accomplish, what they rank as most important and their level of satisfaction with achieving those goals. This is a deeper dive into motivations, how outcomes will be measured and current pain points.

Ideas: As the most active users of your product (often more than you), customers will see opportunities for improvement.  Maintain a site for ongoing suggestions as they occur, and run targeted ideation campaigns for specific areas of development.

Design feedback: Prior to committing to production of a product, run several designs by them. The designs will emphasize different functions and looks, and customers give an early read on how they will be received.

The combination of themes and the ways you’ll work with customers answers the key questions they have. It actually goes way beyond the normal roadmap, providing philosophical underpinnings for your product.  And for the product manager, it’s something you can discuss with integrity and enjoyment.

I’m @bhc3 on Twitter.

Prescribing Success with Disruptive Innovation

This is a guest post by Michael Mayers, an experienced innovation & new product development leader who has launched successful products in financial services, marketing services and health & wellness.  He tweets about innovation, entrepreneurship, and the joy of being a Brit in NYC at @mikemayers25.

At the time of writing Amazon lists 932 books released in the past 90 days under “innovation.”  Many of these will espouse a theory of one sort or another that seeks to systematize the process of successfully bringing new products to market.  And while most will deliver a superficially cogent model for the limited historic cases provided, nearly all of them will fail to deliver a prescription for future success that works in practice. (That’s right Stage Gate, I’m looking at you!)

Innovators Solution

But some time-tested theories do have prescriptive value.  In this blog post I take one such canonical model – Professor Clayton Christensen’stheory of Disruptive Innovation – and use three of its defining characteristics to help identify entrepreneurial opportunities and kick-start successful innovation strategy.

Look for 5 blade razors.

As markets mature industry leaders seek to capture increasing value from their best customers in an effort to drive profitable growth.  M&A aside this is typically achieved through the development of incremental, sustaining innovations – a process which most businesses become adept at executing.  The inevitable challenge comes when the pace of these innovations oversupply product performance for even the best and most demanding customers.  This oversupply, easily measured, is a key indicator that a sector is ripe for disruption. 

This tendency is surely no more obvious than Gillette’s flagship razor; the Fusion ProGlide with its parody-inducing 5 blades.  Arguably the maximal desired performance from the humble safety razor was surpassed decades ago with the twin-blade Trac II and the addition of a lubricating strip.

Enter Dollar Shave Club who, in 2011, recognized this performance oversupply and launched an innovative business model to attack the razor blade industry’s most over-served customers.  It’s first offering was a twin-blade razor – 70s “technology” in blade terms – sold online via a monthly subscription model at a fraction of the price of its big brand competitors.  And the attack plan is working:  The company raised $12MM in a Series B financing in October last year.

Ignore the best customers.

Take an industry’s best customers – those premium, big ticket whales with the eye-watering margins – and forget about them.  Successful disruptive innovations typically target current category low-end or non-consumers, and for two very good reasons:

Firstly, when a new entrant targets non-consumption the competitive response from industry incumbents is often muted to the extent that they may be ignored altogether; just as the personal computer industry was by mainframe manufacturers in the 1980s.  And if the interloper seeks to serve and incumbent’s low-end, low-margin customers they may even be happy to give up that pesky, profit-dilutive segment in the pursuit of better financial ratios; just as US car manufacturers gave way to Toyota in the 1980s in the compact economy segment.  And let’s face it, who wanted to sell low-margin compacts like the Corolla when you’ve earned the right to sell the S-Class? 

Secondly, the initial performance of new technologies usually fall short of the demands of an industry’s best and most sophisticated customers:  PC performance was a joke for mainframe computer buyers.  Either way a new entrant attack on an industry’s best customers is ill-advised.  Either a crippling competitive response or sophisticated customer demands will bring the upstart to its knees.  Much better to compete for low-end markets or outright non-consumption where your product can be the best alternative to nothing at all. 

Classic examples of this approach include Sony who offered a generation of new consumers access to personal, portable transistor radios while RCA doggedly stuck to heavy vacuum tube technology which afforded significantly better sound quality for the most discerning customer.  Or Nucor’s electric arc furnace, suitable only for the production of rebar at its outset, versus Armco’s integrated steel mills which produced much higher grade sheet steel.  Or Netflix’s streaming DVDs, utterly at the mercy of fickle bandwidth issues in those early days, versus Blockbuster’s DVD rental business with its significantly higher fidelity picture quality. 

When each of these technologies first launched they did not satisfy the current needs of their industry’s best customers.  Crucially – and fatally for the businesses who ignored them – each quickly shed their growing pains and enjoyed a higher performance gradient over time than existing ones.  The consequence?  Having established a beachhead amongst non- or low-end consumers those nascent technologies intercepted and then surpassed the performance of prior technologies.  Each successively picked off “low-value” customer segments from the bottom up until they adequately addressed the performance requirements of the entire market.  And it’s worth noting that Dollar Shave Club now offer 4- and 6-blade razor lines on their subscription model:  The move upmarket has begun.

Understand why the product is hired.

Why did you hire that non-fat latte you had this morning?  It’s an odd turn of phrase but you did, in a sense, hire it to do some jobs.  Maybe it was to give you a boost of energy.  Or to stave off hunger pangs until lunch.  Perhaps it was just a useful distraction or a focal point around which to socialize with colleagues.  Maybe it was all of those things.  Once you accept that we hire products and services to perform “jobs-to-be-done” (JTBD) on functional, emotional and social dimensions a whole world of insight will open up about consumer motivations and the building blocks of competition and product performance from the consumer perspective.

The story of Febreze illustrates this well.[1]  Now a $1B product Febreze was very nearly a total failure for P&G.  Functionally, it performs an obvious JTBD:  It neutralizes odors in household fabrics.  Early marketing efforts focussed heavily on this performance dimension but sales were muted.  Both the R&D and marketing teams were bewildered as to why such an obviously useful product was failing to gain traction.

Post-launch research highlighted an interesting but troubling phenomenon:  Customers were often desensitized and oblivious to even the most pungent odors in their own homes.  Functionally, Febreze solved an issue for a home’s visitors rather than its owners. 

But the P&G team had a stroke of luck:  They observed a few customers who, having worked hard to clean their homes, were then liberally applying Febreze with a final flourish.  Diving deeper into this behavior the researchers found that some customers were hiring the product to provide a visceral emotional reward at the end of a period of cleaning – a means to enhance the satisfaction of having a cleaned a room.  The penny dropped and Febreze was quickly repositioned for its emotive, rather than functional, qualities and sales soared. 

This story is often positioned as a flash of marketing positioning brilliance; a Eureka! moment that’s difficult to replicate.  But when viewed through the lens of JTBD it becomes clear that a more systematic understanding of the emotional dimensions to cleaning a home may have saved P&G from considerable heartache.  And while Febreze is now a roaring success one has to wonder how many potential category killers have been pulled from the market for want of a better understanding of what the customer was actually trying to achieve?

Flip the coin.

I’ve been looking at this in terms of using the Disruptive Innovation framework to find innovation opportunities.  However, if you are an enterprise manager working in an established industry then you can easily turn this around to find corresponding threats.  Ask yourself whether you are oversupplying your customers and delivering your own version of the 5 blade razor.  For a moment, put your best customers out of your mind and think about how traditional non-consumers and low-end markets might be better served by competing technologies.  And put the product marketing brochures to one side and ask what jobs to be done you satisfying amongst your customer base.  And finally, if and when you identify a threat or technology that is picking off your least profitable customers, don’t flee upmarket:  Stand, fight and innovate right back.

[1] This story is recounted from “The Power of Habit: Why We Do What We Do in Life and Business” by Charles Duhigg.

Decision flow for customer feature requests

If you  manage a product or service in the business-to-business (B2B) market, customer requests for features will be a regular part of your work. Requests come in through the sales team, service reps, and senior management, as well as directly from customers themselves. It’s a disruptive insertion of new items for your agenda. That disruption isn’t necessarily bad, but it does distract you from other planning and execution you’re working on.

Reflecting on my own experiences here, I realized that each request needs to go through a series of decisions. These decisions make sure you know why you would agree to or decline the request, and are aware of the bigger picture effects of your decision. They make up the customer request decision flow:

B2B customer request decision flow

The flow is a series of decisions, in priority order. My perspective is product management, but they apply to other areas as well (service, contracting processes, etc.).

Firm request from a priority customer?

This decision point is made up of two criteria: priority customer and firm request.

Priority customer

The first decision point may be somewhat offputting, especially if you operate in the small business or consumer markets. It matters who makes the request. In the enterprise market, just a few customers will be a significant share of your revenue. These customers’ revenue help you meet the payroll. They help keep the lights on. If you’re public, they help keep the stock price up.

In addition to high revenue, some customers are also valuable for non-monetary reasons. Lighthouse customers are important for establishing credibility with other companies.

Whether based on revenue or marketing value, some companies will be priority customers. They are a reality in every B2B company. Keeping them happy is part of the job.

Firm request

Sometimes a request is urgent, and vitally important to the customer. Other times, it’s merely a suggestion, a minor nit or a fleeting idea. It’s important to understand the difference.

Firm requests often come freighted with emotional terms, or subtle threats. “We really need this to make sure our sponsors continue to support you.” When they’re firm, pay attention, immediately.

Not all requests are firm. The customer may couch the request with wiggle room. Or directly say “it’s not a big deal”. Often, they have bigger things they want to tackle (on the product, on processes, on strategy) and look at their request as a suggestion-in-passing.  They will move on to the bigger items and not focus on the request.

The ability to recognize the difference gets better with experience.

Multiple similar requests?

If the request is not a firm one from a priority customer, the next decision point is: are multiple customers are asking for the same feature? What the request lacks in priority, it may make up in commonality.  If customers are making multiple requests for a similar feature, you’ve got a pain point on your hands that needs to be addressed.

A key issue is this: how do you know multiple customers have the same request? A common way is to utilize software which allows customers to post ideas, suggestions and requests. There are idea management providers that are good for this. Or you can user customer feedback  sites. These asynchronous, always-on, open-to-all sites are well-suited for capturing suggestions.

In addition, you may need to check other areas. Bad as it is,  your email often contains customer suggestions. Or you have a service ticket database you can check. Relevant knowledge will be in people’s heads, those who directly work with customers.

Once you know where to look, the process of determining commonality has two steps:

  1. Identify all similar requests that have been made by different customers
  2. Find all signals of support from customers

If you’re using an ideas or feedback site, finding similar requests is easier. Search on terms that relate to the request. Also, look at the ‘Likes’ and comments the suggestions have. I look at the number of companies represented in these signals of interest.

After gathering this information, you will have a sense of how wide the support is for the suggestion. If it’s sufficient, consider adding the request to your roadmap.

Meaningfully enhances outcomes?

Assume that the request is not a firm one from a priority customer, or one that has yet to be shared by multiple customers. There’s one final decision point: will the suggested feature meaningfully enhance customers’ outcomes?

Outcomes has a specific meaning here. It is the definition of when a job task has been satisfied. It should reflect the customer’s expectations. Remember, they only agree to use (and pay for) your product because you’re making them successful.

To apply this criteria effectively, you need working knowledge of what customers want to get done, and where they’re falling short. If you can see that the request will improve outcomes for a significant number of customers, it should be addressed.

Committed to maintaining feature?

For each of the previous three decision points, if the answer is ‘yes’, there is one more decision to make. Are you committed to maintaining the feature? While this may seem like a simple enough question, there are a number of considerations to it. Below are six factors to consider before answering ‘yes’.

Economics: What are the costs to build and maintain the feature? The expected upside of the feature should cover these. Upside is a holistic concept, including money for the new feature, new sales contracts and renewals because of the feature and increased customer satisfaction that translates into informal marketing for your company.

Release velocity: Every new feature added to a product increases the complexity of future releases. In software, a given configuration can have ongoing downstream impacts. Yammer’s V:P Engineering Kris Gale sees the additional complexity as a tax on product velocity. Your ability to release quality products quickly is impacted with each new feature. It’s worth it to add features, but think carefully about velocity impact.

User experience: The ability to use the product or service effectively is a core requirement for customers. If they find that it too complex, they will not fulfill their jobs-to-be-done. Joshua Porter nice summarizes the issue of feature creep: “No single feature addition is a big deal, but taken together change everything.” The value of the request must be greater than any negative effects on user experience.

Tip of the iceberg: sometimes, a request is a “jump” from the current product or service. And it’s only part of a broader offering needed to really address the need. You can look at a request and see how additional features will be needed over time to make it deliver value. And that may take the product in a direction you don’t want to go. Understand the longer term plan related to the request.

Mass market: You’re building a product or service for the mass market. It needs to address a large swath of customers’ needs. In that light, look at the current request. Is it the umpteenth time that this customer, or one of a handful of customers have requested something? Too many ‘outside-the-market’ requests can undermine your broader strategy. You win the battle for the lighthouse customer, but lose the war with the broader market.

Outcome prioritization: Smart product management is organized according to customers’ jobs-to-be-done and expected outcomes. Some outcomes may be currently underserved. Customers’ expectations are being met, and that needs to be addressed. The new request will delay the implementation of features to address these outstanding pain points. Determine if the new request outweighs the currently underserved outcomes.

Decide on the request

Decline the request

If the request cannot cleanly get through the six criteria of the “Committed to maintaining feature?” decision point, it is reasonable to decline the request. Indeed, you now have specific reasons for doing so. That alone is a big improvement versus what often happens: the request sits in the equivalent of a “dead letter” file. Or if there is a response, there’s only a vague, “we can’t do that right now.”

Address the request

If the request makes sense, then it’s full steam ahead. However, notice I’ve used the term “address the request”. This is different than “implement the request”. Maintain a philosophy that:

 Customers know their jobs-to-be-done better than you, but you will know potential solutions better than them.

Not to say the customer hasn’t provided a specific feature solution that is right. But avoid just passing through exactly what what was requested without giving thought to different ways the job-to-be-done can be addressed.

Customer requests will be a constant in the B2B product manager’s life. Knowing how you’re going to handle them is key to the success of the product and the business.

I’m @bhc3 on Twitter.

Collecting and analyzing jobs-to-be-done

via the Daily Mail

I’ve previously written about collecting jobs-to-be-done from customers. Because I was analyzing a broad topic across the entire innovation lifecycle, it was a good way to get a breadth of insight. However, it doesn’t work as well in the more common situation for product managers and innovators: analyzing a specific flow. In that case, there are three requirements for collecting jobs-to-be-done:

  • Comprehensive capture of job elements
  • Map collection as closely as possible to the actual job flow
  • Understand importance and satisfaction of individual tasks

Comprehensive is important, because you can’t address what you don’t know. A limitation of my previous effort was that it was not comprehensive. Actual job flow is a powerful framework. Needs captured in context are more valuable, and it’s critical to follow the steps in the job. Importance and satisfaction become the basis for prioritizing effort.

To address these requirements, I’ve put together a process to understand customers’ jobs-to-be-done. The major elements are:

1 Job flow 2 Job task 3 Collect job tasks per activity
4 Job canvas 5 Task importance & dissatisfaction 6 Number of customer interviews
7 Create affinity groups 8 Label the groups 9 Calculate group importance and dissatisfaction

For purposes of this write-up, assume you’re an automotive product manager. You’re tasked with understanding people’s needs to get work done on the commute to the office. Note this is a job that becomes more readily enabled by self-driving cars.

Start with the job flow

A job-to-be-done has a flow. For example, take this job:

When I commute to the office, I want to get work done.

A job flow consists of the job’s major activities, in sequence. The job flow looks something like this:

Job flow

The purpose of the flow is to provide a framework for capturing specific tasks. Putting this together is primarily the responsibility of the product manager (or innovation team). By stating the major activities that define the job, expect a much more comprehensive capture of all the job elements.

Job task

Each activity consists of a series of tasks. Task are what the customer actually does. They are independent of specific features, although may often be intertwined. Here’s an example task:

Job task

Previously, I’d focused on including context in job statements. But when these tasks are organized according to the job flow, the context is readily known. So task statements don’t include a context element.

But they do include an expectation statement. For every task we do, we have an expectation for it. It defines whether we consider the current experience wonderful or painful. This expectation is formalized for each task, captured in the customer’s own words. It’s valuable to know what the customer expects, as that becomes the basis of design.

Collect jobs tasks for each activity

Next step is to conduct the actual customer interviews. Whether done in the customer’s environment (best) or via a web conference call (acceptable), the job flow provides a familiar framework to the customer.

Job activity + tasks

When I worked at eFinance, I conducted brown paper sessions with clients to understand their commercial credit processes. A staple of the Capgemini consulting model, the brown paper is a step-by-step process flow of what the customer does today. Collecting the job tasks is similar here. Similarities and differences:

  • Brown papers are conducted with groups of people together. Job-to-be-done capture will more often be solo interviews.
  • Brown papers are done in a strict step-by-step flow, captured visually on a wall. If doing this for job-to-be-done interviews works for you, go for it. But a simpler post-it note capture style works as well.
  • After capturing the steps in a brown paper, the group is invited to post stickies describing points where improvement is needed. In the job-to-be-done interviews, each task includes a statement of what the customer expects for it.

A key element of the interview process is to probe the responses of the customer. In a perfect world, they will lay out the individual tasks and easily express their expectations. But likely, customers will talk a lot about features. Which is valuable in its own right. But the objective here is to capture what they are trying to get done. So apply the simple question why. Not in a robotic way. But make sure to probe past the expression of features. These are the tasks – versus features – to place on the job canvas.

Here’s an example of the approach:

Customer: I want a 4G internet card.
Interviewer: Why do you need that?
Customer: So I can connect to email and the web.
Interviewer: What is your expectation for connecting to email and the web?
Customer: Always-on internet.

One tip: Use different color sticky notes for each major activity’s group of tasks. This color coding will help later in identifying where the tasks occur in the job flow.

Job canvas

For each major activity, job tasks are collected onto that customer’s job canvas. An example (with fewer tasks than would actually be there):

Job flow + tasks

In reality, there will be  a large number of tasks per customer interviewed. Strategyn’s Tony Ulwick states there will be between 50-150 outcomes collected from multiple customer interviews. Gerry Katz of Applied Marketing Science sees 100 or more needs collected as well. Sheila Mello of Product Development Consulting says it’s not unusual to extra several hundred images from the customer interviews.

Top tasks by importance and dissatisfaction

Once the job tasks have been captured, the customer selects the tasks:

  • That are most important
  • That are least satisfied

The customer will select the 3-5 tasks that are most important for each major activity in the flow (e.g. there are 3 major activities shown in the job canvas above). These tasks will be assigned points. For example, assume three tasks are identified as important. The most important task would receive 3 points, the next most important 2 points, and so on.

The customer will also select the 3-5 tasks that are least satisfied for each major activity in the flow. Assuming three selected tasks, the task that is least satisfied receives 3 points, the next least satisfied task receives 2 points, and so on.

Job tasks - importance and satisfaction

Keep this insight handy, but separate from the collected stickies (or however you’ve collected the job tasks). We’ll come back to how to use this information.

Note: it will help to apply unique numbers to the individual job tasks. You’re going to want to know the most important and least satisfied tasks across multiple customers later in the process.

Number of customer interviews

A general rule of thumb is that 15-20 customer interviews will provides solid coverage of customers’ needs. You can take it further, as George Castellion advocates 40 interviews. Each interview starts with a blank canvas containing only major activities.

Create affinity groups

After conducting multiple interviews, you will have a large number of job tasks, with information on which ones are most important and least satisfied. Working with a large number of statements by people is a challenge that others have faced. They key is to reduce the large number to a manageable set of insights. There’s a proven approach called the KJ-Method to systematically abstract hundreds of statements into a few key groups.

UX expert Jared Spool provides a detailed series of steps to run the K-J Method. I’ll use his description here.

Bring together group of people do the affinity grouping

The first step is to determine who will do the affinity grouping with you. Try to keep this group at 5 people or fewer. Draw on people from different disciplines.

Put all the job tasks on a wall

In a single space, all the job tasks should be visible and accessible. They need not be laid out in the job flow, which might introduce a bias to the grouping. The color of the stickies will be the basis for knowing where the tasks fall in the flow.

Group similar items

The next step is for the team members to group like  job tasks together. The process is one of looking at pairs of tasks, and determining if they share characteristics. This how Jared instructs clients to do this:

“Take two items that seem like they belong together and place them in an empty portion of the wall, at least 2 feet away from any other sticky notes. Then keep moving other like items into that group.”

“Feel free to move items into groups other people create. If, when reviewing someone else’s group, it doesn’t quite make sense to you, please feel free to rearrange the items until the grouping makes sense.”

“You’re to complete this step without any discussion of the sticky notes or the groups. Every item has to be in a group, though there are likely to be a few groups with only one item.”

Label the groups

Each participant then gets to label each group. This entails looking at the grouped job tasks and determining the common theme. Again, here’s how Jared instructs teams on this process:

“I want you to now give each group a name. Read through each group and write down a name that best represents each group on the new set of sticky notes I just gave you.”

“A name is a noun cluster, such as ‘Printer Support Problems’. Please refrain from writing entire sentences.”

“As you read through each group, you may realize that the group really has two themes. Feel free to split those groups up, as appropriate.”

“You may also notice that two groups really share the same theme. In that case, you can feel free to combine the two groups into one.”

“Please give every group a name. A group can have more than one name. The only time you’re excused from giving a group a name is if someone has already used the exact words you had intended to use.”

Note that part of the exercise in this step is to give one more consideration to the groupings. If, upon trying to determine a label one finds that the groups doesn’t actually make sense, the groups can be split up as needed.

I’ll add this caveat to Jared’s instructions. For purposes of this affinity group work, lots of different labels for each group of tasks are not important. It’s OK to go with one person’s good label for a group, a point to emphasize more strongly.

Here’s an example of labeling a group of job tasks:

Job tasks grouped

Once done, you’ve organized a solid group of job tasks into major themes for what customers are trying to do.

Calculate the importance and dissatisfaction score for each group

Remember asking the customers to rate the three most important and three least satisfied job tasks? Now it’s time to use those ratings. In each group, calculate the following for both importance and dissatisfaction:

  • Total points
  • Average points per task

For each group, you’ll have something like this:

Job task groups with scores

The Total score gives a sense for where the customer energy is. Large scores on either metric will demand attention. The Average score is good for cases where a group has only a few, highly scored job tasks. It ensures they don’t get overlooked.

Prioritize roadmap

You now have major groups scored with customers’ view of importance and dissatisfaction. Within each group are the tasks and expectations that customers have. This is the good stuff, the insight that fuels design efforts. It’s also the data-driven, factually based input that helps clear the fog when tackling a new area for development.

The expressed customer insight – what they want to do, what is important, what is not satisfied – becomes the foundation for constructing a roadmap. The team can layer on other considerations: business strategy, adjacent initiatives that impact the effort, internal priorities. Balance these with what customers actually value. Anything that ignores this hard-won customer insight needs a compelling reason, and an understanding of the higher risk it entails.

I’m @bhc3 on Twitter.

The Folly of Inside-Out Product Thinking

Inside out jacket

Inside out just doesn’t fit right

Ever run into this deductive reasoning?

  1. Customers like our existing products and our company
  2. We are building a new product that reflects the priorities of a company executive
  3. Therefore, customers will like our new product

It’s a clear violation of the First Law of Product: Customers decide what products they like, not companies.

Inside-out thinking is a situation where the wrong reasons are applied to decide which products are to be developed:

  • That market is so big, let’s build something for it
  • My intuition says this is the next big thing
  • This new product will position our company for what is important to us

Those reasons are actually not entirely out of the question for success either. The things that define truly inside-out thinking are (i) an impulse guided by a “we need” , not a “the customer needs” mentality; and (ii) skipping customer validation or ignoring troubling feedback from customers during validation. When you see those two dynamics at play, you’ve left the realm of sophisticated decision-making. You’re in the land of gambling with shareholders’ money. Sure, some inside-out products will succeed. But that’s analogous to saying that some lottery ticket holders win too. It’s a sucker’s bet.

Inside-out thinking is a pervasive thing. I came across this table in Gerry McGovern’s book, The Stranger’s Long Neck. McGovern surveyed  SMB users of a website Microsoft runs – Pinpoint – that helps find IT solutions built on Microsoft technologies. The SMBs were asked what their top tasks were when they visited Pinpoint. McGovern then did something interesting: he asked the Microsoft team what they thought users’ top tasks were.

The table below outlines the results:

Customer Microsoft
Internet security Customer relationship management
Backup and recovery Internet marketing
Security Network management
Desktop support Sales/lead generation
Data/document management Billing

That’s a stark difference between what users value and what Microsoft thought they did. Or perhaps what Microsoft wished users valued. As McGovern notes, “And just like every other organization on the planet, what Microsoft wants is not always what the customer wants.”

This isn’t to pick on Microsoft; it really is the case at companies everywhere. Microsoft just happens to have been open enough to share their own experience here.

You can recognize it when it happens. Here are the Top 3 signs of inside-out thinking:

  • The spreadsheet says it will be big!
  • I don’t need customer validation, they don’t know what they want anyway
  • The Board/CEO/other senior executive is pressuring us to do this

Inside-out thinking is poor decision-making, it’s a bet with terrible odds, and wastes resources. Tough to understand how we can be so methodical with other operations in the organization and still go seat-of-the-pants in this area.

Update: I hadn’t seen his tweet at the time I published this post, but Box founder/CEO Aaron Levie offers another consequence of inside-out thinking here:

I’m @bhc3 on Twitter.

The Product Manager is the Chief Customer Development Officer

If pressed, what would you say is the secret to product success? Certainly there are a number of things that go into making and selling products. Prioritization, design, manufacturing frameworks, marketing, service, cost of production, etc. Each of these elements needs to be optimized, and there are people, practices and tools that do just that.

Despite rigor in much of the product process, there’s still too high a failure rate for products. I’ll bet you’ve seen this in your own company: proposed products that received a lot of internal resources only to be killed off, or that launched and didn’t hit the mark with customers. As you can see, there’s a story to it:

Product development success and failure

Consider that first panel for a moment. A third of launched products fail. That doesn’t include the projects that were killed before launch. 32% of development resources are spent on products that get scrapped or fail in the market. To put that in perspective, imagine similar levels of failure in other venues:

  • We  miscalculated 33% of the accounting entries
  • 32% of our inventory purchases were wasted
  • Our marketing initiatives fail to sell anything or raise brand awareness 33% of the time
  • 33% of our manufacturing capacity is chronically unavailable

Those levels of performance would be unacceptable in companies. Yet they’re considered part of the ‘art’ of innovation when it comes to product. The cost of doing business. Which is pretty sweet if you’re a product person…

OK, forget that. Let’s assume rational, ambitious people want to do better.

What works? Survey says…

In a survey of B2B firms, people were asked to identify the causes of failed products. The top answer was ‘lack of market analysis’. As in, did the market have the need, did the feature address it if so, and did it do so better than competing products? The next answer was that the ‘product didn’t satisfy customer needs’. There’s a pattern here.

Flip the analysis…what are the top success factors? All three  are specifically rooted in understanding customer needs:

  1. Product directed at customer needs
  2. Staying close to the customer
  3. Product adds value to the customer

Notice that pattern again? Products that succeed are designed and developed with customer insight.

Factors that make customer involvement successful

Researchers in Sweden conducted an analysis of firms’ product development efforts, classifying the products as successful or not successful. They tracked these product outcomes against the types of interactions the firms have with customers. Note they tracked product development efforts as incremental innovation. They separately tracked radical innovations as well.

For incremental innovation – i.e. the daily work of product managers – they were able to identify three factors that separated successful products from the rest. Factors that affected the “absorptive capacity” of the company to assimilate customer needs.

Engagement frequencyEngagement frequency: The more often a company communicates with customers, the more successful were it product releases. Communication can be oriented toward understanding needs, or for feedback on design iterations.

Two-way directionTwo-way communication: The nature of the communication dictates its value. If the company does all the talking, it’s not going to learn much. The more the communication is a dialogue, the better the outcome for the product.

Needs in contextNeeds in context: The more the insight is captured as part of a broader view of the activity, the better that insight is. Top insight is gathered as the customer experiences using the product. It’s also valuable to understand the why for insight. If the suggestion or need is in isolation, it can be hard to understand the core need.

Now, who is in charge of getting this insight?

Chief Customer Development Officer

Think about this. For marketing, it’s clear who owns that activity, and you can see processes, systems, people and priorities for it. Same goes for manufacturing / development. And design. And supply chain management. And distribution. And financial analysis. And human resources. And so on…

But where are the comparable processes and people dedicated to understanding the customers’ needs? Who plumbs the jobs-to-be-done and analyzes the key outcomes customers are seeking? The work of understanding customer needs, in one sense, is everybody’s responsibility. It’s what makes the company grow. But if something is everybody’s responsibility, it’s really nobody’s responsibility.

It’s an important question, because the degree to which one stays close to the customer is a primary basis of success or failure in product development. As a function, what would you call this work? Customer Needs Whisperer? Voice of the Customer-ologist? Actually, Steve Blank has it covered with customer development:

Before any of the traditional functions of selling and marketing can happen, the company has to prove a market could exist, verify someone would pay real dollars for the solutions the company envisions, and then go out and create the market. These testing, learning and discovery activities are at the heart of what makes a startup unique, and they are what make Customer Development so different from the Product Development process

Steve Blank, The Four Steps to the Epiphany

While Steve Blank’s excellent book is targeted at entrepreneurs who need to do the hard work of validating an idea, the mindset underlying customer development is well-suited for the need to stay close to customers. Hence, the notion of the Chief Customer Development Officer. And the product management team sits at ground zero in the customer development activity.

What distinguishes customer development from the current mentality in most companies? Cribbing from a Jack London quote:

You can’t wait for customer insight to come to you. You have to go after it with a club.

This is a change in mindset for many. Be proactive in understanding customers. Make communicating with customers a meaningful percentage of the weekly schedule. Don’t settle for inbound inquiries. Or only focus groups on an already-designed product. Or quarterly customer council meetings. Really own the customer development activity.

It’s worth it, as here are five concrete benefits of employing the customer development mindset:

  1. Develop understanding of what success looks like for the customer
  2. Customer becomes invested in the success of the product
  3. Elevate customers’ awareness of what’s coming
  4. Discover opportunities for growth due to underserved JTBD
  5. Reduce uncertainty due to lack of information

You only get these by being a proactive customer development officer.  In a future post, I’ll examine the different ways engage customers in the product development process. Because there are many.

I’m @bhc3 on Twitter.

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