This document discusses an exercise where participants design a coffee maker by focusing on capabilities and functions. It instructs them to write down 12-25 basic and enhanced functions for different types of coffee makers on sticky notes. These could be sliced or broken into more discrete sub-functions. Participants are then asked to develop two product strategies and releases - one targeting a discount retailer with 12 basic functions, and one targeting a high-end appliance retailer with 12 enhanced functions. The document emphasizes starting with the customer's desired outcomes or "what's", identifying highly valuable capabilities, and rethinking "how's" to deliver those capabilities.

1. Coffee Maker Game Deciding What to Build

2. What is ReThinking?

3. The “How” TrapA human condition The Fosbury Flop Airport Check-in Mangers usually start with how to do something Focus on what first, then ReThinkhow

4. What is a Business Capability? A Capability is What we do A particular ability or capacity that the business relies on for a specific purpose or outcome Describe as an outcome Stable – What the business does remains stable even when the how changes

5. Capability – What we do Describe the target business or product as a set of outcomes – or capabilities. Check-in Passengers Jump Over Bar Verb - Noun Remains Stable over Time

6. Capability Remains Stable over Time Check-in Passengers Jump Over Bar Verb - Noun

7. Capability - Value Customer Value Business Value Outcome KEY High Value Medium Value Low Value

8. Capability – See Value Customer Value Business Value Outcome KEY High Value Medium Value Low Value

9. Capability – See Performance Gaps Performance Gaps Outcome KEY High Value Medium Value Low Value Low Performing Medium Performing High Performing

10. Capability Outcome Risk Risk Business Risk Technology Risk Organizational Risk Market Risk KEY High Value Medium Value Low Value Low Performing Medium Performing High Performing High Risk Moderate Risk Low Risk

11. Business Value Performance Model High Value Medium Value Low Value Low Performing Medium Performing High Performing Hard to Change Moderate Effort to Change Easy to Change

12. Coffee Maker Game

13. Design a Coffee Maker Make money now and in the future Start with High Level Functions and Features shown Slice by Function Break a function into more discrete functions Start Automatically can be sliced into Track Time, Start coffee Maker, Stop Coffee Maker Slice by Feature Start with the basic feature and add enhancements or quality Contain & Pour Coffee can be sliced into Contain Coffee (basic), Lift Container, Measure Liquid Level

14. Coffee Maker GameHigh Level Functions & Features

15. Coffee Maker GameHigh Level Functions & Features

17. one per sticky

18. What basic functions does a coffee maker have?

19. at least 12

20. Add 2-4 functions a pretty cool coffee maker might have

21. Add 2-4 functions a really awesome coffee maker might have (i.e., works in the car)

22. Add 2-4 functions a very safe coffee maker would have

24. StrategyHigh End Appliance Retailer Plan Release 2 with a budget of 12 Functions

25. Wrap up Elevate your thinking to What your customer wants Connect your strategy to those What’s Identify the What’s that are truly valuable Know what your are (or can be) good at Focus & ReThink those How’s

26. Thank you Questions? Comments?