Archive for the ‘Innovation’ Category

Four Questions to Choose Innovation Projects

It’s a challenge to prioritize and choose innovation projects. There are open questions on the technology, the product/service, the customer, the price and sales volume.  Other than that, things are pretty well defined.

But with all that, you’ve still go to choose.  Here are some questions that may help in your selection process

Is it big enough? The project will be long, expensive and difficult. And if the potential increase in sales is not big enough, the project is not worth starting. Think (Price – Cost) x Volume. Define a minimum viable increase in sales and bound it in time. For example, the minimum incremental sales is twenty five million dollars after five years in the market. If the project does not have the potential to meet those criteria, don’t do the project. The difficult question – How to estimate the incremental sales five years after launch? The difficult answer – Use your best judgement to estimate sales based on market size and review your assumptions and predictions with seasoned people you trust.

Why you? High growth markets/applications are attractive to everyone, including the big players and the well-funded start-ups. How does your company have an advantage over these tough competitors? What about your company sets you apart? Why will customers buy from you? If you don’t have good answers, don’t start the project. Instead, hold the work hostage and take the time to come up with good answers. If you come up with good answers, try to answer the next questions. If you don’t, choose another project.

How is it different? If the new technology can’t distinguish itself over existing alternatives, you don’t have a project worth starting.  So, how is your new offering (the one you’re thinking about creating) better than the ones that can be purchased today? What’s the new value to the customer? Or, in the lingo of the day, what is the Distinctive Value Proposition (DVP)? If there’s no DVP, there’s no project. If you’re not sure of the DVP, figure that out before investing in the project. If you have a DVP but aren’t sure it’s good enough, figure out how to test the DVP before bringing the DVP to life.

Is it possible? Usually, this is where everyone starts. But I’ve listed it last, and it seems backward. Would you rather spend a year making it work only to learn no one wants it, or would you rather spend a month to learn the market wants it then a year making it work? If you make it work and no one wants it, you’ve wasted a year. If, before you make it work, you learn no one wants it, you’ve spent a month learning the right thing and you haven’t spent a year working on the wrong thing. It feels unnatural to define the market need before making it work, but though it feels unnatural, it can block resources from working on the wrong projects.

There is no foolproof way to choose the best innovation projects, but these four questions go a long way. Create a one-page template with four sections to ask the questions and capture the answers. The sections without answers define the next work. Define the learning objectives and the learning activities and do the learning. Fill in the missing answers and you’re ready to compare one project to another.

Sort the projects large-to-small by Is it big enough? Then, rank the top three by Why you? and How is it different?  Then, for the highest ranked project, do the work to answer Is it possible?

If it’s possible, commercialize. If it’s not, re-sort the remaining projects by Is it big enough? Why you? and How is it different? and learn if It is possible.

Image credit – Ben Francis

Four Pillars of Innovation – People, Learning, Judgment and Trust

Innovation is a hot topic. Everyone wants to do it. And everyone wants a simple process that works step-wise – first this, then that, then success.

But Innovation isn’t like that. I think it’s more effective to think of innovation as a result. Innovation as something that emerges from a group of people who are trying to make a difference. In that way, Innovation is a people process. And like with all processes that depend on people, the Innovation process is fluid, dynamic, complex, and context-specific.

Innovation isn’t sequential, it’s not linear and cannot be scripted.. There is no best way to do it, no best tool, no best training, and no best outcome. There is no way to predict where the process will take you.  The only predictable thing is you’re better off doing it than not.

The key to Innovation is good judgment. And the key to good judgment is bad judgment. You’ve got to get things wrong before you know how to get them right. In the end, innovation comes down to maximizing the learning rate. And the teams with the highest learning rates are the teams that try the most things and use good judgement to decide what to try.

I used to take offense to the idea that trying the most things is the most effective way. But now, I believe  it is. That is not to say it’s best to try everything. It’s best to try the most things that are coherent with the situation as it is, the market conditions as they are, the competitive landscape as we know it, and the the facts as we know them.

And there are ways to try things that are more effective than others. Think small, focused experiments driven by a formal learning objective and supported by repeatable measurement systems and formalized decision criteria. The best teams define end implement the tightest, smallest experiment to learn what needs to be learned. With no excess resources and no wasted time, the team wins runs a tight experiment, measures the feedback, and takes immediate action based on the experimental results.

In short, the team that runs the most effective experiments learns the most, and the team that learns the most wins.

It all comes down to choosing what to learn. Or, another way to look at it is choosing the right problems to solve. If you solve new problems, you’ll learn new things. And if you have the sightedness to choose the right problems, you learn the right new things.

Sightedness is a difficult thing to define and a more difficult thing to hone and improve. If you were charged with creating a new business in a new commercial space and the survival of the company depended on the success of the project, who  would you want to choose the things to try? That person has sightedness.

Innovation is about people, learning, judgement and trust.

And innovation is more about why than how and more about who than what.

Image credit – Martin Nikolaj Christensen

The only thing predictable about innovation is its unpredictability.

A culture that demands predictable results cannot innovate.  No one will have the courage to do work with the requisite level of uncertainty and all the projects will build on what worked last time.  The only predictable result – the recipe will be wildly successful right up until the wheels fall off.

You can’t do work in a new area and deliver predictable results on a predictable timetable. And if your boss asks you to do so, you’re working for the wrong person.

When it comes to innovation, “ecosystem,” as a word, is unskillful. It doesn’t bound or constrain, nor does it show the way. How about a map of the system as it is? How about defined boundaries? How about the system’s history? How about the interactions among the system elements? How about a fitness landscape and the system’s disposition? How about the system’s reason for being? The next evolution of the system is unpredictable, even if you call it an ecosystem.

If you can’t tolerate unpredictability, you can’t tolerate innovation.

Innovation isn’t about reducing risk. Innovation is about maximizing learning rate.  And when all things go as predicted, the learning rate is zero. That’s right. Learning decreases when everything goes as planned. Are you sure you want predictable results?

Predictable growth in stock price can only come from smartly trying the right portfolio of unpredictable projects.  That’s a wild notion.

Innovation runs on the thoughts, feelings, emotions and judgement of people and, therefore, cannot be predictable. And if you try to make it predictable, the best people, the people that know the drill, will leave.

The real question that connects innovation and predictability: How to set the causes and conditions for people to try things because the results are unpredictable?

With innovation, if you’re asking for predictability, you’re doing it wrong.

Image credit: NASA Goddard

How To Innovate Within a Successful Company

If you’re trying to innovate within a successful company, I have one word for you: Don’t.

You can’t compete with the successful business teams that pay the bills because paying the bills is too important.  No one in their right mind should get in the way of paying them.  And if you do put yourself in the way of the freight train that pays the bills you’ll get run over.  If you want to live to fight another day, don’t do it.

If an established business has been growing three percent year-on-year, expect them to grow three percent next year. Sure, you can lather them in investment, but expect three and a half percent. And if they promise six percent, don’t believe them. In fairness, they truly expect they can grow six percent, but only because they’re drinking their own Cool-Aid.

Rule 1: If they’re drinking their own Cool-Aid, don’t believe them.

Without a cataclysmic problem that threatens the very existence of a successful company, it’s almost impossible to innovate within its four walls. If there’s no impending cataclysm, you have two choices: leave the four walls or don’t innovate.

It’s great to work at successful company because it has a recipe that worked.  And it sucks to work at a successful company because everyone thinks that tired old recipe will work for the next ten years. Whether it will work for the next ten or it won’t, it’s still a miserable place to work if you want to try something new. Yes, I said miserable.

What’s the one thing a successful company needs? A group of smart people who are actively dissatisfied with the status quo. What’s the one thing a successful company does not tolerate? A group of smart people who are actively dissatisfied with the status quo.

Some experts recommend leveraging (borrowing) resources from the established businesses and using them to innovate. If the established business catches wind that their borrowed resources will be used to displace the status quo, the resources will mysteriously disappear before the innovation project can start. Don’t try to borrow resources from established businesses and don’t believe the experts.

Instead of competing with established businesses for resources, resources for innovation should be allocated separately. Decide how much to spend on innovation and allocate the resources accordingly. And if the established businesses cry foul, let them.

Instead of borrowing resources from established businesses to innovate, increase funding to the innovation units and let them buy resources from outside companies. Let them pay companies to verify the Distinctive Value Proposition (DVP); let them pay outside companies to design the new product; let them pay outside companies to manufacture the new product; and let them pay outside companies to sell it.  Sure, it will cost money, but with that money you will have resources that put their all into the design, manufacture and sale of the innovative new offering. All-in-all, it’s well worth the money.

Don’t fall into the trap of sharing resources, especially if the sharing is between established businesses and the innovative teams that are charged with displacing them. And don’t fall into the efficiency trap. Established businesses need efficiency, but innovative teams need effectiveness.

It’s not impossible to innovate within a successful company, but it is difficult. To make it easier, error on the side of doing innovation outside the four walls of success. It may be more expensive, but it will be far more effective.  And it will be faster. Resources borrowed from other teams work the way they worked last time. And if they are borrowed from a successful team, they will work like a successful team. They will work with loss aversion. Instead of working to bring something to life they will work to prevent loss of what worked last time. And when doing work that’s new, that’s the wrong way to work.

The best way I know to do innovation within a successful company is to do it outside the successful company.

Image credit – David Doe

Important Questions for Innovation

Here are some important questions for innovation.

What’s the Distinctive Value Proposition? The new offering must help the customer make progress. How does the customer benefit? How is their life made easier? How does this compare to the existing offerings? Summarize the difference on one page. If the innovation doesn’t help the customer make progress, it’s not an innovation.

Is it too big or too small?  If the project could deliver sales growth that would dwarf the existing sales numbers for the company, the endeavor is likely too big.  The company mindset and philosophy would have to be destroyed.  Are you sure you’re up to the challenge? If the project could deliver only a small increase in sales, it’s likely not worth the time and expense.  Think return on investment.  There’s no right answer, but it’s important to ask the question and set the limits for too big and too small.  If it could grow to 10% of today’s sales numbers, that’s probably about right.

Why us? There’s got to be a reason why you’re the right company to do this new work.  List the company’s strengths that make the work possible. If you have several strengths that give you an advantage, that’s great.  And if one of your weaknesses gives you an advantage, that works too. Step on the accelerator.  If none of your strengths give you an advantage, choose another project.

How do we increase our learning rate? First thing, define Learning Objectives (LOs). And once defined, create a plan to achieve them quickly.  Here’s a hint. Define what it takes to satisfy the LOs. Here’s another hind. Don’t build a physical prototype. Instead, create a website that describes the potential offering and its value proposition and ask people if they want to buy it. Collect the data and refine the offering based on your learning. Or, create a one-page sales tool and show it to ten potential customers. Define your learning and use the learning to decide what to do next.

Then what? If the first phase of the work is successful, there must be a then what. There must be an approved plan (funding, resources) for the second phase before the first phase starts.  And the same thing goes for the follow-on phases. The easiest way to improve innovation effectiveness is avoid starting phase one of projects when their phase two is unfunded. The fastest innovation project is the wrong one that never starts.

How do we start? Define how much money you want to spend. Formalize your business objectives.  Choose projects that could meet your business objectives. Free up your best people. Learn as quickly as you can.

Image credit — Alexander Henning Drachmann

For innovation to flow, drive out fear.

The primary impediment to innovation is fear, and the prime directive of any innovation system should be to drive out fear.

A culture of accountability, implemented poorly, can inject fear and deter innovation.  When the team is accountable to deliver on a project but are constrained to a fixed scope, a fixed launch date and resources, they will be afraid.  Because they know that innovation requires new work and new work is inherently unpredictable, they rightly recognize the triple accountability – time, scope and resources – cannot be met.  From the very first day of the project, they know they cannot be successful and are afraid of the consequences.

A culture of accountability can be adapted to innovation to reduce fear.  Here’s one way. Keep the team small and keep them dedicated to a single innovation project. No resource sharing, no swapping and no double counting. Create tight time blocks with clear work objectives, where the team reports back on a fixed pitch (weekly, monthly). But make it clear that they can flex on scope and level of completeness.  They should try to do all the work within the time constraints but they must know that it’s expected the scope will narrow or shift and the level of completeness will be governed by the time constraint.  Tell them you believe in them and you trust them to do their best, then praise their good judgement at the review meeting at the end of the time block.

Innovation is about solving new problems, yet fear blocks teams from trying new things. Teams like to solve problems that are familiar because they have seen previous teams judged negatively for missing deadlines. Here’s the logic – we’d rather add too little novelty than be late.  The team would love to solve new problems but their afraid, based on past projects, that they’ll be chastised for missing a completion date that’s disrespectful of the work content and level of novelty.  If you want the team to solve new problems, give them the tools, time, training and a teacher so they can select different problems and solve them differently. Simply put – create the causes and conditions for fear to quietly slink away so innovation will flow.

Fear is the most powerful inhibitor. But before we can lessen the team’s fear we’ve got to recognize the causes and conditions that create it. Fear’s job is to keep us safe, to keep us away from situations that have been risky or dangerous.  To do this, our bodies create deep memories of those dangerous or scary situations and creates fear when it recognizes similarities between the current situation and past dangerous situations.  In that way, less fear is created if the current situation feels differently from situations of the past where people were judged negatively.

To understand the causes and conditions that create fear, look back at previous projects.  Make a list of the projects where project members were judged negatively for things outside their control such as: arbitrary launch dates not bound by the work content, high risk levels driven by unjustifiable specifications, insufficient resources, inadequate tools, poor training and no teacher.  And make a list of projects where team members were praised.  For the projects that praised, write down attributes of those projects (e.g., high reuse, low technical risk) and their outcomes (e.g., on time, on cost).  To reduce fear, the project team will bend new projects toward those attributes and outcomes. Do the same for projects that judged negatively for things outside the project teams’ control. To reduce fear, the future project teams will bend away from those attributes and outcomes.

Now the difficult parts.  As a leader, it’s time to look inside.  Make a list of your behaviors that set (or contributed to) causes and conditions that made it easy for the project team to be judged negatively for the wrong reasons.  And then make a list of your new behaviors that will create future causes and conditions where people aren’t afraid to solve new problems in new ways.

Image credit — andrea floris

To figure out what’s next, define the system as it is.

Every day starts and ends in the present. Sure, you can put yourself in the future and image what it could be or put yourself in the past and remember what was. But, neither domain is actionable. You can’t change the past, nor can you control the future.  The only thing that’s actionable is the present.

Every morning your day starts with the body you have.  You may have had a more pleasing body in the past, but that’s gone.  You may have visions of changing your body into something else, but you don’t have that yet. What you do today is governed and enabled by your body as it is. If you try to lift three hundred pounds, your system as it is will either pick it up or it won’t.

Every morning your day starts with the mind you have. It may have been busy and distracted in the past and it may be calm and settled in the future, but that doesn’t matter. The only thing that matters is your mind as it is. If you respond kindly, today’s mind is responsible, and if your response is unkind, today’s mind system is the culprit.  Like it or not, your thoughts, feelings and actions are the result of your mind as it is.

Change always starts with where you are, and the first step is unclear until you assess and define your systems as they are. If you haven’t worked out in five years, your first step is to see your doctor to get clearance (professional assessment) for your upcoming physical improvement plan. If you’ve run ten marathons over the last ten months, your first step may be to take a month off to recover. The right next step starts with where you are.

And it’s the same with your mind. If your mind is all over the place your likely first step is to learn how to help it settle down.  And once it’s a little more settled, your next step may be to use more advanced methods to settle it further. And if you assess your mind and you see it needs more help than you can give it, your next step is to seek professional help. Again, your next step is defined by where you are.

And it’s the same with business.  Every morning starts with the products and services you have. You can’t sell the obsolete products you had, nor can you sell the future services you may develop. You can only sell what you have.  But, in parallel, you can create the next product or system.  And to do that, the first step is to take a deep, dispassionate look at the system as it is. What does it do well? What does it do poorly? What can be built on and what can be discarded?  There are a number of tools for this, but more important than the tools is to recognize that the next one starts with an assessment of the one you have.

If the existing system is young and immature, the first step is likely to nurture it and support it so it can grow out of its adolescence.  But the first step is NOT to lift three hundred pounds because the system-as it is-can only lift fifty. If you lift too much too early, you’ll break its back.

If the existing system is in it’s prime and has been going to the gym regularly for the last five years, its ready for three hundred pounds.  Go for it! But, in parallel, it’s time to start a new activity, one that will replace the weightlifting when the system can no longer lift like it used to.  Maybe tennis? But start now because to get good at tennis requires new muscles and time.

And if the existing system is ready for retirement, retire it. Difficult to do, but once there’s public acknowledgement, the retirement will take care of itself.

If you want to know what’s next, define the system as it is. The next step will be clear.

And the best time to do it is now.

Image credit – NASA

The right time horizon for technology development

Patents are the currency of technology and profits are the currency of business.  And as it turns out, if you focus on creating technology you’ll get technology (and patents) and if you focus on profits you’ll get profits. But if no one buys your technology (in the form of the products or services that use it), you’ll go out of business.  And if you focus exclusively on profits you won’t create technology and you’ll go out of business.  I’m not sure which path is faster or more dangerous, but I don’t think it matters because either way you’re out of business.

It’s easy to measure the number of patents and easier to measure profits.  But there’s a problem.  Not all patents (technologies) are equal and not all profits are equal.  You can have a stockpile of low-level patents that make small improvements to existing products/services and you can have a stockpile of profits generated by short-term business practices, both of which are far less valuable than they appear. If you measure the number of patents without evaluating the level of inventiveness, you’re running your business without a true understanding of how things really are.  And if you’re looking at the pile of profits without evaluating the long-term viability of the engine that created them you’re likely living beyond your means.

In both cases, it’s important to be aware of your time horizon.  You can create incremental technologies that create short term wins and consume all your resource so you can’t work on the longer-term technologies that reinvent your industry.  And you can implement business practices that eliminate costs and squeeze customers for next-quarter sales at the expense of building trust-based engines of growth.  It’s all about opportunity cost.

It’s easy to develop technologies and implement business processes for the short term.  And it’s equally easy to invest in the long term at the expense of today’s bottom line and payroll.  The trick is to balance short against long.

And for patents, to achieve the right balance rate your patents on the level of inventiveness.

Image credit – NASA’s Solar Dynamics Observatory

Situational Awareness (Winter is Coming)

Business and life are all about choosing how you want to allocate your time and money.  In life, it’s your personal time and money and in business it’s the company’s.

If you’ve ever done any winter hiking, you know that it’s important to know the terrain.  If there’s a mountain in the way, you either go over it or around it.  But there is one thing you can’t do is pretend it’s not there.  If you go around it, you’ve got to make sure you have enough energy, food, water and daylight to make the long trek to shelter.  If you go over it, you’ve got to make sure you have the ice picks, crampons, down jackets and climbing skills to make it up and down to shelter.  With winter hiking, the territory, gear and team capability matter. And the right decision is defined by situational awareness.

And what of the shelter? Does it sleep five, six or seven?  And because you have seven on your team, it’s not really shelter if it sleeps five.  And if you don’t know how many it sleeps, you’re not situationally aware.  And if you’re not situationally aware, on five may fit in the shelter and two will freeze to death.  Maybe before your trip you should look at the map and learn all the shelters their locations and how many the can hold. The right action and the safety of your crew depends on your situational awareness.

And the decision depends on how much daylight do you have left. Before you left basecamp it was possible to know when the sun will set. Did you take the time to look at the charts? Did you take advantage of the knowledge? If you don’t have enough sunlight, you’ve got to go over the top.  If you do, you can take the leisurely great circle route around the mountain.  And if you don’t know, you’ve got to roll the dice.  I’d prefer to be aware of the situation and keep the dice in my pocket.  And for that, you need to be aware of the situation.

Winter hiking is difficult enough even when you have maps of the terrain, weather forecasts, locations of the shelters and knowledge of when the sun will set. But it’s an unsafe activity when there are no maps of the territory, the weather is unknown and there’s no knowledge of the shelters.  But that’s just how it is with innovation – the territory has never been hiked, no maps, no weather forecast, and shelters are unknown.  With innovation, there’s no situational awareness unless you create it.  And that’s why with innovation, the first step is to create the maps.  No maps, no possibility of situational awareness.

The best people at situational awareness are the military. The know maps and they know how to use them.  The know to do recon to position the enemy on the map and they know to use the situational awareness (the map, the enemy’s location, and their direction of travel) to decide how what to do. If the enemy’s force is small and in poorly defensible position, there are a certain set of actions that are viable. If the enemy force is large and has the high ground, it’s time to sit tight or retreat with dignity. (To be clear, I’m a pacifist and this military example does mean I condone violence of any kind. It’s just that the military is super good at situational awareness.)

If you’re not making maps of the competitive landscape, you’re doing it wrong. If you’re not moving resources around and speculating how the competition will respond based on the topography and your position within it, you’re not sharpening your situational awareness and you’re not taking full advantage of the information around you.  If you don’t know where the mountains are you can’t avoid them or use them to slow your competition. And if you don’t know know where the shelters are an how many miles you can hike in a day, you don’t know if you’re overextending your position and putting your crew at risk.

Winter is coming. If you’re not creating maps to build situational awareness, what are you doing?

Image credit – Martin Fisch

Testing the Business Model

Sometimes we get caught up in the details when we should be working on the foundation.  Here’s a rule: If the underlying foundation is not secure, don’t bother working on anything else.

If you’re working on a couple new technologies, but the overall business model won’t be profitable, don’t work on the new technologies.  Instead, figure out a business model that is profitable, then do what it takes (technology, simplification, process improvement) to make it happen.  But, often, that’s not what we do.

Often, we put the cart before the horse.  We create projects to make prototypes that demonstrate a new technology, but the whole business premise is built on quicksand.  There’s a reason why foundations are made from concrete and not quicksand.  It’s because you can build on top of a base made of concrete.  It supports the load.  It doesn’t crack, nor does it fall apart.  Think Pyramid of Giza.

Because foundations are big and expensive they can be difficult and expensive to test.  For example, if an innovation is based on a new foundation, say, a new business model, building a physical prototype of the new business model is too expensive and the testing will not happen.  And what usually happens is the foundation goes untested, the higher level technology work is done, the commercialization work is completed and the business model fails because it wasn’t solid.

But you don’t have to build a full-scale prototype of the Pyramid of Giza to test if a pyramid will stand the test of time.  You can build a small one and test it, or you can run an analysis of some sort to understand if the pyramid will support the weight.  But what if you want to test a new business model, a business model that has never been done before, using new products and services that have never seen the light of day?  What do you do? In this case, it doesn’t make sense to make even a scale model.  But it does make sense to create a one page sales tool that describes the whole thing and it does make sense to show it to potential customers and ask them what they think about it.

The open question with all new things is – will customers like it enough to buy it.  And, it’s no different with the business model.  Instead of creating a new website, staffing up, creating new technologies and products, create a one-page sales tool that describes the new elements and show it to potential customers.  Distill the value proposition into language people can understand, describe the novelty that fuels the value, capture it on one page, show it to customers, and listen.

And don’t build a single, one-page sales tool, build two or three versions.  And then, ask customers what they think.  Odds are, they’ll ask you questions you didn’t think they’d ask.  Odds are, they’ll see it differently than you do. And, odds are, you’ll have to incorporate their feedback into an improved version of the business model.  The bad new is you didn’t get it right.  The good news is you didn’t have to staff up and build the whole business model, create the technologies and launch the products.  And more good news – you can quickly modify the one-page sales tool and go back to the customers and ask them what they think.  And you can do this quickly and inexpensively.

Don’t develop the technology until you know the underlying business model will be profitable. Don’t staff up until you know if the business model holds water. Don’t launch the new products until you verify customers will buy what you want to sell.

Creating a new business model from scratch is an expensive proposition.  Don’t build it until you invest in validating it’s worth building.

The worst way to validate a business model is by building it.

Image credit – David Stanley

How to Choose the Best Idea

We have too many ideas, but too few great ones.  We don’t need more ideas, we need a way to choose the best one or two ideas and run them to ground.

Before creating more ideas, make a list of the ones you already have.  Put them in two boxes.  In Box 1, list the ideas without a video of a functional prototype in action.  In Box 2, list the ideas that have a video showing a functional prototype demonstrating the idea in action.  For those ideas with a functional prototype and no video, put them in Box 1.

Next, throw away Box 1. If it’s not important enough to make a crude physical prototype and create a simple video, the idea isn’t worth a damn.  If someone isn’t willing to carve out the time to make a physical prototype, there’s no emotional energy behind the idea and it should be left to die.  And when people complain that it’s unfair to throw away all those good ideas in Box 1, tell them it’s unfair to spend valuable resources talking about ideas that aren’t worthy.  And suggest, if they want to have a discussion about an idea, they should build a physical prototype and send you the video.  Box 2, or bust.

Next, get the band together and watch the short videos in Box 2, and, as a group, put them in two boxes.  In Box 3, put the videos without customers actively using the functional prototype.  In Box 4, put the videos with customers actively using the functional prototype.

Next, throw way Box 3.  If it’s not important enough to make a trip to an important customer and create a short video, the idea isn’t worth a damn.  If you’re not willing to put yourself out there and take the idea to an important customer, the idea is all fizzle and no sizzle.  Meaningful ideas take immense personal energy to run through the gauntlet, and without a video of a customer using the functional prototype, there’s not enough energy behind it.  And when everyone argues that Box 3 ideas are worth pursuing, tell them to pursue a video showing a most important customer demonstrating the functional prototype.

Next, get the band back together to watch the Box 4 videos.  Again, put the videos in two boxes. In Box 5 put the videos where the customer didn’t say what they liked and how they’d use it.  In Box 6, put the videos where the customer enthusiastically said what they liked and how they’ll use it.

Next, throw away Box 5.  If the customer doesn’t think enough about the prototype to tell you how they’ll use it, it’s because they don’t think much of the idea.  And when the group says the customer is wrong or the customer doesn’t understand what the prototype is all about, suggest they create a video where a customer enthusiastically explains how they’d use it.

Next, get the band back in the room and watch the Box 6 videos.  Put them in two boxes.  In Box 7, put the videos that won’t radically grow the top line.  In Box 8, put the videos that will radically grow the top line.  Throw away Box 7.

For the videos in Box 8, rank them by the amount of top line growth they will create.  Put all the videos back into Box 8, except the video that will create the most top line growth.  Do NOT throw away Box 8.

The video in your hand IS your company’s best idea.  Immediately charter a project to commercialize the idea.  Staff it fully.  Add resources until adding resources doesn’t no longer pulls in the launch.  Only after the project is fully staffed do you put your hand back into Box 8 to select the next best idea.

Continually evaluate Boxes 1 through 8.  Continually throw out the boxes without the right videos.  Continually choose the best idea from Box 8.  And continually staff the projects fully, or don’t start them.

Image credit – joiseyshowaa

Mike Shipulski Mike Shipulski
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