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Driving Innovation & Growth with Precision

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COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVED
Customer Focus Discipline
Driving Innovation & Growth with Precision
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COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVED
q Introduce a proven discipline for understanding WHAT
Customers WANT
q Measure Value Gaps with precision
q Prioritize Opportunities for:
§ Driving innovation and growth
§ Investing in change (products & services)
§ Optimize customer intimacy (drives loyalty)
Goals
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q Sustainable growth
q Market leadership
q Reduced time-to-market
q Improved utilization of technology & resources
Key Outcomes
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q Identify pilot population
q It all starts with a conversation between Marketing and
Customers to capture, analyze, and prioritize customer
needs.
q From there, we leverage our corporate creativity to improve
our products and services to out perform the competition
and drive sustained growth.
Getting Started
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qDo does your organization agree on:
§ What a customer need is?
§ How you determine which customer needs are
unmet or “under met”?
qBefore you answer….
What is a customer need
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You have to listen to me…
I know exactly what customers want!”
Sales
R&D
Marketing
Does this sound familiar?
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q Every organization has a development lifecycle
q They may have an informal process for collecting customer needs
q But we have a much less defined process of
§ Defining, and determining which customer needs are unmet
§ Prioritizing those needs so we pursue the “right ones first”
§ Translating them into product specifications
q And, we need to do it earlier in product lifecycle process
§ => Discover Phase is THE most important in any lifecycle
§ Tendency to devise solutions first and then iterate with products,
processes, and systems. This is expensive and often inaccurate.
Current State
Discover Define Design Develop Deliver
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Value Proposition
q What are the challenges ?
§ Currently, the organization does not fully
understand the unmet needs of current (and future)
members
§ Membership retention and growth are key
challenges for the organization
§ Operational inefficiencies are prevalent since there
are few metrics to evaluate the services & products
being offered
•8
“When customers find that
they need to get a job
done, they ‘hire’ products
or services to do the job.”
p. 2, Clayton M. Christensen, Scott D.
Anthony, Gerald Berstell, and Denise
Nitterhouse, “Finding the Right Job for
Your Product,Sloan Management
Review, Spring 2007
q How will this methodology help ?
§ This will provide the organization with a disciplined (and proven)
methodology for evaluating opportunities to continuously improve the
services & products for their members
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Understand customers
“job” and desired outcomes
Understand level of
satisfaction with outcomes
– Defines unmet needs
Develop solutions to
address unmet needs
Data for concept
refinement
Defines value
proposition
Directs prioritization
of features
Identify & Prioritize
Customer Needs
Paradigm Shift
Discover Define Design Develop Deliver
Develop one or more
concepts
From: focusing on (product) Features
To : focusing on (customer) Outcomes
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How will this work?
First, clarify what
customers want
Next, identify gaps in
value delivery with
products & services
Determine changes that need
to be made with products &
services
Generate ideas to address
the value gaps
Create concepts and
design solutions to
address the value gaps
Develop concepts and pilot
them with customer focus
groups
Refine concepts and develop
product roadmaps
Create a portfolio of
requirements (features) to
improve products & services
(data, systems, processes,
product design)
Implement value
improvements and
drive growth
Align features with growth
planning models and
rationalize product portfolio
Rationalize portfolio of
products & services
Discover Define Design Develop Deliver
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Capture & Prioritize Desired Outcomes from
Customers (job studies, structured interviews,
and observation)
Identify market opportunities for addressing
Desired Outcomes (survey, demographics, &
ethno-graphics)
Clarify & Prioritize Customer Needs
First, clarify what
customers want
Discover Define Design Develop Deliver
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Align “prioritized” desired outcomes with Product
Strategy
Conduct structured ideation to generate ideas to:
Extend existing products (line item
extensions)
Define new products from an existing
product platform
Define new product platforms
Extend existing products to adjacent markets
Identify Value Gaps & Identify Solutions
Discover Define Design Develop Deliver
Next, identify gaps in
value delivery with
products & services
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Align Product ideas with Technology Strategy
Conduct structured ideation to generate ideas to:
Extend existing product (one or more
systems)
Build new products from an existing
technology platform
Build a new technology platforms
Extend existing products across multiple
technology platforms
Conduct Requirements Engineering
Develop Concepts & Update Product Roadmap
Discover Define Design Develop Deliver
Create concepts and
design solutions to
address the value gaps
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q Business has a clear understanding of the opportunities we can provide
for the customer
q The customer has a list of prioritized outcomes for which they can
measure value
q Business is now able to focus disciplined ideation into the development
lifecycle
q The Pre-Concept phase gate bridges the business silos to enable
collaboration as part of concept definition
q The Concept phase gate provides the feature decomposition required
for more accurate estimates for products/services delivery
Who Benefits?
Discover Define Design Develop Deliver
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Expand
Expand the use of the Customer Focus Discipline to other projects
Provide
Provide training for the Marketing & Product Management Leaders
Incorporate
Incorporate feedback into the discipline
Review
Review pilot results
Capture
Capture feedback from the business leaders and team
Conduct
Conduct the pilot
Select
Select a project to pilot the new discipline
Gain
Gain approval to include the Pre-Concept phase
Socialize
Socialize the new Customer Focus discipline amongst the Marketing & Product Management
Leaders
Program for Getting Started
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A FEW DEFINITIONS
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q The methodology is based on a perspective of measuring the desired
outcomes that an individual would like to achieve within the context of a
particular "job" that he/she is trying to get done.
What is the Methodology?
Note: There may be many jobs
that we need to study to fully
understand all the opportunities
for our products and services.
Personal Interviews
Used to understand the structure of the
customer value model and to obtain an
initial set of statements.
Group Interviews
Used to ensure a diverse set of job and
outcome statements are collected from all
subsets of the population.
Ethnographic Research
Used to observe jobs and outcomes that
may be infrequent, subconscious or
otherwise back-of-mind.
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q A job is quite simply a definition of what people are trying to "get done
to achieve an objective as progress towards a goal.
§ The job is a conceptual frame for the core, emotional, and other
supporting jobs used to help a customer achieve an objective and
progress towards a goal.
§ A customer may “hire” a product or service to help them perform one
or more jobs
§ Jobs are a means towards an end. This is a key point when applying
innovation to address the unmet needs for a given job.
§ Design Thinking comes into play when the steps and even the job
itself can be reframed and/or improved.
What is a Job?
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BRUSHING YOUR TEETH WASHING THE LAUNDRY SELECTING THE RIGHT
DRUG FOR INFUSION
INTO A PATIENT
MONITORING MACHINE
PERFORMANCE ON THE
SHOP FLOOR
FINDING THE RIGHT
LAWYER
DIAGNOSING AN ISSUE
WITH AN AIRCRAFT ON
THE GROUND
ACCESSING YOUR
MEDICAL RECORDS
OBTAINING AN
EMERGENCY LOAN
FROM YOUR BANK
What is a Job?
q A job is quite simply a definition of what people are trying to "get done“.
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What are Outcomes?
Each job is comprised of a common set of activities
(steps if you will) which involve planning, preparing,
executing, monitoring, adjusting, and completing the
work to be done.
A person trying to complete these steps has a set of
desired outcomes they wish to achieve for each step
in the job. We call these outcomes and they can be
measured.
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What is an Unmet Need ?
Needs are defined by the desired outcomes
(measures) that a customer wants to achieve
at each step along the way for a job
Desired outcome has 3 components:
§ Directionality (increase or decrease)
§ Quantifiable attribute for a job step
§ Contextually relevant to the job performer*
Desired outcome has 2 dimensions of
measurement:
§ Importance (1 – 10, Max = 10)
§ Satisfaction (1 10, Max = 10)
Opportunity for improvement is measured by
assessing the disparity between both
dimensions of each desired outcome:
§ Level of Importance is high
§ Level of Satisfaction is low
•2
1
Let’s look that a few desired
outcomes for cooking a meal.
§ Minimize the time it takes to
prepare a meal
§ Minimize the time it takes to clean
up after cooking
§ Minimize the likelihood of
overcooking a meal
§ Increase the likelihood that the
food is cooked evenly throughout
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q We model jobs and map them to other jobs using a simple classification
scheme to identify the relationships between the core job that a person
is performing and all the other jobs that can influence the outcomes for
the job:
§ Core Job (focus of our study)
§ Emotional Jobs
§ Other Jobs
Technical Jobs
Functional Jobs
How do we understand these jobs?
Note: By studying all the jobs, we can capture metrics,
which can be measured with a high degree of accuracy.
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Obtain the
Request
Review
the
Request
Gather
Materials
Prepare
Work Area
Execute
Job
Perform
Quality
Checkpoints
Address any
Quality Issues
Provide
Communication
and/or Handoffs
Clean up
Work Area
Complete
Job
Common Set of Steps
(for any job)
Job Breakdown (steps)
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What are Outcomes ?
Customers assess their ability to perform a job, typically relying on
informal (gut checks) for measurement.
Each step along the way, they infer the outcomes that they want to
achieve. These are the ”desired outcomes” they ideally want.
There are 2 simple and intuitive
questions used to measure each
desired outcome
How important is this desired outcome ?
How satisfied am I with the current state for
this desired outcome?
Finding
Opportunities:
Value Creation (innovation) = High Importance + Low Satisfaction
Cost Reduction (innovation) = Low Importance + High Satisfaction
Value Preservation (do no harm) = High Importance + High Satisfaction
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Quantitative Analysis
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Opp >15
Extreme
Opportunity
Opp >10
Solid Opportunity
Opp >12
High Opportunity
Innovate
Preserve
Limited
Opportunity
1
2
3
4
5
6
7
8
9
10
1 2 3 4 5 6 7 8 9 10
Table
Stakes
Optimize
Ripe for
Disruption
Potential for
Disruption
Importance
Satisfaction
Value Driven Opportunity Assessment
Functional Outcomes (N=30) Emotional Outcomes (N=6) Both Outcomes (overlap)
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How is innovation driven by Desired Outcomes ?
Instead of chasing trends and
matching capabilities to find
opportunities...
Old model = Customer Driven
Identify Desired Outcomes and
match capabilities to create
opportunities…
New model = Driving the Market
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Desired
Outcomes
Capabilities
Patterns
(Themes)
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Measure what matters
Create and deliver the right value
Build and nurture a winning culture
Proactively manage change & complexity
Measurement
Strategy Execution Operations
Biz:DNA©
Phone: (847) 261-4332
Online: www.enablingvalue.com
Thank You
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SAMPLE PROJECT
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§ Current State
§ Objectives
§ Benefits
§ Program Charter
§ Program Roadmap
§ Program Governance
§ Staffing Plan
§ Funding Plan
§ Project 1 Overview
Sample Project Outline
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Organization is located in
one of the most densely
populated XXX areas in
the nation, yet it continues
to struggle with attracting
new members.
Membership retention
continues to plague the
organization (especially
with families who
celebrate life events with
their children).
The value proposition for
products & services is not
clear.
Organizations are based
on participation, but most
of the volunteers come
from the same individuals.
The current economic
downturn has put
increased pressure on our
budget and revenue
opportunities.
We are not able to pursue
a building due to our
limited financial
capabilities.
Current State
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Project Charter
Leverage a disciplined approach for understanding what customers (member,
prior members, and non-members) want from a Organization
Build a repeatable process for Organization to measure how well their products
& service address the desired customer outcomes.
Rationalize the existing products & services to assess how well Organization is
addressing the value needs of customers today.
Provide a discipline for Organization leadership to identify and prioritize future
opportunities to build loyalty with existing members and attract new members.
Introduce a set of tools for Organizatino leadership to create the right products
& services to address the future opportunities.
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q The president & board of directors approved the
following 3 areas to be studied:
§ Event Services
Weekly services
Annual services
Life Event services
§ Membership Services
Membership outreach
Membership in-reach
§ Educational Services
Early Childhood School
Continuing education for youth
Continuing education for adults
Project Scope
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Understand
customer
needs
Identify
Opportunities
(Prioritize)
Generate
ideas
Create new
products &
services
Deliver new
value to
customers
Project Charter
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Improve the value delivered by Organization for:
Event Services
Membership Services
Education Services
Improve
Provide Organization with a disciplined and repeatable process for measuring the
value of their services (w/in the above scope) going forward.
Provide
Leverage available resources in a more efficient manner to build a loyalty program
for improving membership retention and attracting prior members and new
members.
Leverage
Establish a pipeline of opportunities to engage Organization leaders and members
to create new ideas used to deliver new products & services in the future.
Establish
Benefits
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Charter Developing New Products & Services to drive membership for ORG
Project Number Org - 001 Charter Date November 1
st
, 20XX
Program Sponsor Org Board of Directors Program Director Jeffrey Wallk
Program Scope Design and implement a customer focus framework for capturing and modeling metrics used to model the
outcomes for customers and a set of metrics for which to benchmark the products & services delivered by
Organization teachers & staff.
Objectives § Implement a customer focus methodology
§ Create a reference model for identifying customer outcomes and metrics for measuring value
§ Define a complete list of jobs performed by members
§ Create a repository of customer outcomes & value metrics
§ Develop a process to prioritize and align the outcomes & metrics with GAPS in products & services
Governance § Establish a steering committee with members from the Education Committee and Practice Worksttream
§ Create a small team of dedicated trained resources to staff each project
§ Project lead will be the Program Director
§ Steering Committee will approve scope, program objectives, and project deliverables
§ (Note: Each project typically represents 1 job that will be studied to capture the outcomes & value metrics
Project Charter
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Draft the proposal for the work stream
Obtain approval from Organization leadership
Build a steering committee for the program
Finalize scope for the program
Month 1
Conduct a Job Study (w/ program scope)
Prioritize the list of jobs
Communicate to the organization
Finalize project schedule
Draft resources for the project team
Begin work on initial deliverables
Month 2
Project Outline
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Complete qualitative study for Project 1
Complete quantitative study for Project 1
Conduct analysis of Project 1 results
Present Project 1 results to Organization leadership
Publish results for Project 1 to Public
Conduct ideation to identify new products & services
Present ideas to Organization Board for review & approval
Month 3
Develop new products & services
Move forward with next project(s)
Roadmap for Driving Growth
Program Roadmap
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Staffing:
Funding:
Execution & Presentation to Board
Project Preparation
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Key Milestones
Prioritize the list of opportunities
Introduce tools for generating ideas (to address opportunities)
Conduct an open innovation competition (to generate ideas)
Steering Committee to select the best ideas
Provide recognition to contestants
Select the best ideas & agree upon list of recommendations to
pursue
Present top ideas to Organization Board with recommendations
Establishing the opportunity pipeline
Gain board approval to pursue recommendations
Board assigns ownership to develop & implement changes
Create new products & services
Modify existing products & services
Eliminate existing products & services
Transition ideas to innovation
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VALUE MEASUREMENT
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Requirements involves using a systematic way of capturing (and warehousing) Outcome gaps (see below)
and transitioning those into specifications to guide engineering design (products, systems, services)
Measuring the Value Gap