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1COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDCustomer Focus DisciplineDriving Innovation & Growth with Precision
2COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDq Introduce a proven discipline for understanding WHAT Customers WANTq Measure Value Gaps with precisionq Prioritize Opportunities for:§ Driving innovation and growth§ Investing in change (products & services)§ Optimize customer intimacy (drives loyalty)Goals
3COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDq Sustainable growth q Market leadershipq Reduced time-to-marketq Improved utilization of technology & resourcesKey Outcomes
4COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDq 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
5COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDqDo 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
6COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDYou have to listen to me…I know exactly what customers want!”SalesR&DMarketingDoes this sound familiar?
7COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDq Every organization has a development lifecycleq They may have an informal process for collecting customer needsq 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 specificationsq 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 StateDiscover Define Design Develop Deliver
8COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDValue Propositionq 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 2007q 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
9COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVED• 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 featuresIdentify & PrioritizeCustomer NeedsParadigm ShiftDiscover Define Design Develop DeliverDevelop one or more conceptsFrom: focusing on (product) FeaturesTo : focusing on (customer) Outcomes
10COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDHow will this work?First, clarify what customers wantNext, identify gaps in value delivery with products & servicesDetermine changes that need to be made with products & servicesGenerate ideas to address the value gapsCreate concepts and design solutions to address the value gapsDevelop concepts and pilot them with customer focus groupsRefine concepts and develop product roadmapsCreate a portfolio of requirements (features) to improve products & services (data, systems, processes, product design)Implement value improvements and drive growthAlign features with growth planning models and rationalize product portfolioRationalize portfolio of products & servicesDiscover Define Design Develop Deliver
11COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVED• 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 NeedsFirst, clarify what customers wantDiscover Define Design Develop Deliver
12COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVED• 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 marketsIdentify Value Gaps & Identify SolutionsDiscover Define Design Develop DeliverNext, identify gaps in value delivery with products & services
13COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVED• 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 EngineeringDevelop Concepts & Update Product Roadmap Discover Define Design Develop DeliverCreate concepts and design solutions to address the value gaps
14COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDq Business has a clear understanding of the opportunities we can provide for the customerq The customer has a list of prioritized outcomes for which they can measure valueq Business is now able to focus disciplined ideation into the development lifecycleq The Pre-Concept phase gate bridges the business silos to enable collaboration as part of concept definitionq The Concept phase gate provides the feature decomposition required for more accurate estimates for products/services deliveryWho Benefits?Discover Define Design Develop Deliver
15COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDExpandExpand the use of the Customer Focus Discipline to other projectsProvideProvide training for the Marketing & Product Management LeadersIncorporateIncorporate feedback into the disciplineReviewReview pilot resultsCaptureCapture feedback from the business leaders and teamConductConduct the pilotSelectSelect a project to pilot the new disciplineGainGain approval to include the Pre-Concept phaseSocializeSocialize the new Customer Focus discipline amongst the Marketing & Product Management LeadersProgram for Getting Started
16COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDA FEW DEFINITIONS
17COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDq 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 InterviewsUsed to understand the structure of the customer value model and to obtain an initial set of statements.Group InterviewsUsed to ensure a diverse set of job and outcome statements are collected from all subsets of the population.Ethnographic ResearchUsed to observe jobs and outcomes that may be infrequent, subconscious or otherwise back-of-mind.
18COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDq 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?
19COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDBRUSHING YOUR TEETH WASHING THE LAUNDRY SELECTING THE RIGHT DRUG FOR INFUSION INTO A PATIENTMONITORING MACHINE PERFORMANCE ON THE SHOP FLOORFINDING THE RIGHT LAWYERDIAGNOSING AN ISSUE WITH AN AIRCRAFT ON THE GROUNDACCESSING YOUR MEDICAL RECORDSOBTAINING AN EMERGENCY LOAN FROM YOUR BANKWhat is a Job?q A job is quite simply a definition of what people are trying to "get done“.
20COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDWhat 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.
21COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDWhat 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 ofmeasurement:§ Importance (1 – 10, Max = 10)§ Satisfaction (1 – 10, Max = 10)• Opportunity for improvement is measured by assessing the disparity between bothdimensions of each desired outcome:§ Level of Importance is high§ Level of Satisfaction is low•21Let’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
22COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDq 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 JobsHow 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.
23COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDObtain the RequestReview the RequestGather MaterialsPrepare Work AreaExecute JobPerform Quality CheckpointsAddress any Quality IssuesProvide Communication and/or HandoffsClean up Work AreaComplete JobCommon Set of Steps(for any job)Job Breakdown (steps)
24COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDWhat 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 outcomeHow 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 SatisfactionCost Reduction (innovation) = Low Importance + High SatisfactionValue Preservation (do no harm) = High Importance + High Satisfaction
25COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDQuantitative Analysis
26COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDOpp >15ExtremeOpportunity Opp >10Solid OpportunityOpp >12High OpportunityInnovatePreserveLimitedOpportunity123456789101 2 3 4 5 6 7 8 9 10Table StakesOptimizeRipe for DisruptionPotential for DisruptionImportanceSatisfactionValue Driven Opportunity AssessmentFunctional Outcomes (N=30) Emotional Outcomes (N=6) Both Outcomes (overlap)
27COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDHow 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•27Desired OutcomesCapabilitiesPatterns(Themes)
28COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDMeasure what mattersCreate and deliver the right valueBuild and nurture a winning culture Proactively manage change & complexityMeasurementStrategy Execution OperationsBiz:DNA©Phone: (847) 261-4332Online: www.enablingvalue.comThank You
29COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDSAMPLE PROJECT
30COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVED§ Current State§ Objectives§ Benefits§ Program Charter§ Program Roadmap§ Program Governance§ Staffing Plan§ Funding Plan§ Project 1 OverviewSample Project Outline
31COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDOrganization 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
32COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDProject CharterLeverage a disciplined approach for understanding what customers (member, prior members, and non-members) want from a OrganizationBuild 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.
33COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDq 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 adultsProject Scope
34COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDUnderstand customer needsIdentify Opportunities(Prioritize)Generate ideasCreate new products & servicesDeliver new value to customersProject Charter
35COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDImprove the value delivered by Organization for:•Event Services•Membership Services•Education ServicesImproveProvide Organization with a disciplined and repeatable process for measuring the value of their services (w/in the above scope) going forward. ProvideLeverage available resources in a more efficient manner to build a loyalty program for improving membership retention and attracting prior members and new members.LeverageEstablish a pipeline of opportunities to engage Organization leaders and members to create new ideas used to deliver new products & services in the future. EstablishBenefits
36COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDCharter Developing New Products & Services to drive membership for ORGProject Number Org - 001 Charter Date November 1st, 20XXProgram Sponsor Org Board of Directors Program Director Jeffrey WallkProgram 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 & servicesGovernance § 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
37COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVED• Draft the proposal for the work stream• Obtain approval from Organization leadership• Build a steering committee for the program• Finalize scope for the programMonth 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 deliverablesMonth 2Project Outline
38COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVED• 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 & approvalMonth 3• Develop new products & services• Move forward with next project(s)Roadmap for Driving GrowthProgram Roadmap
39COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDStaffing:Funding:Execution & Presentation to BoardProject Preparation
40COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDKey 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 recommendationsEstablishing 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 & servicesTransition ideas to innovation
41COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDVALUE MEASUREMENT
42COPYRIGHT THE VALUE ENABLEMENT GROUP, LLC. 2011-2019. ALL RIGHTS RESERVEDRequirements 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