The Lean Product Playbook by Dan Olsen

Copyright*©*2015*Olsen*Solu7ons*
My*Background*
!  Educa7on*
!  Engineering*background*
!  Stanford*MBA*
!  Web*development*and*UX*design*
!  Deep*Product*Management*Experience*
!  Submarine*design*
!  Led*Quicken*Product*Management*at*Intuit*
!  Led*Product*Management*at*Friendster*
!  CEO*&*Cofounder*of*YourVersion,* Pandora*for*your*news *
!  PM*consultant:*Facebook,*Box,*MicrosoT,*YouSendIt*
!  Organizer:*Lean*Product*&*UX*Meetup*Silicon*Valley*
*
Slides*at*hVp://slideshare.net/dan_o**

What*does*“Lean”*mean?*
!  Ar7culate*hypotheses*
!  Iden7fy*fastest*way*to*test*
!  Keep*scope*small:*
minimum*viable*product*(MVP)*
!  Test*with*customers*
!  Learn*and*iterate*
!  Achieve*productamarket*ﬁt*
Sound*good?*

The*Lean*Product*Process*
1. Determine*your*target*customer*
2. Iden7fy*underserved*customer*needs*
3. Deﬁne*your*value*proposi7on*
4. Specify*your*MVP*feature*set*
5. Create*your*MVP*prototype*
6. Test*your*MVP*with*customers*

Transporta7on*within*100*miles*of*my*home*
Soccer*Mom*
*
*
Speed*Demon*
•  Carry*kids*&*gear*
•  Safety*
•  Fuel*economy*
•  Go*fast*
•  Looks*cool*
•  Makes*me*look*cool*
*
*
*
*
*
Target*Customer*Has*Dis7nct*Needs*
Highalevel*need:*
*
Target*Customer:*
*
*
*
Detailed*needs:*
*
*
Ideal*Product:*
Soccer*Mom* Speed*Demon*

*
*
!  Russians:*pencil*
!  NASA:*space*pen*
($1*M*R&D*cost)*
*
*
*
*
Example:*
!  Ability*to*write*in*space*
(zero*gravity)*
Problem*Space*vs.*Solu7on*Space*
!  Problem*Space*
!  A*customer*problem,*
need,*or*beneﬁt*that*the*
product*should*address*
!  A*product*requirement*
!  Solu7on*Space*
!  A*speciﬁc*
implementa7on*to*
address*the*need*or*
product*requirement*
*

Problem*Space*vs.*Solu7on*Space:*
Product*Level*
Problem*Space*
(user*beneﬁt)*
Solu7on*Space*
(product)*
TurboTax
TaxCut
Pen and
paper
Prepare
my taxes
File my
taxes
Check my
taxes
Maximize
deductions
Reduce
audit risk

Problem*vs.*Solu7on*Space:*Feature*Level*
Problem*Space*
*
Solu7on*Space*
Save time filing
taxes
Save time
preparing taxes
Maximize my
tax deductions
Check my
return
Reduce my
audit risk
Help me
prepare taxes
Empowerment/
Confidence
Save Time
Save Money
Tax Interview
Wizard
Audit Risk
Analyzer
Tax Return
Error Checker
Tax Data
Downloader
Electronic Tax
Return Filing
Tax Deduction
Finder

Priori7zing*Customer*Needs:*
Importance*vs.*Sa7sfac7on*Importance*of*User*Need*
User*Sa7sfac7on*with*Current*Alterna7ves*
Compe77ve
Market*Opportunity*
Low* High*
Low*
High*
Not*Worth*Going*ATer*

Customer*Value*
Importance*of*User*Need*
User*Sa7sfac7on*with*Current*Alterna7ves*
Low* High*
Low*
High*

Kano*Model:*User*Needs*&*Sa7sfac7on*
User*Sa7sfac7on*
User*Dissa7sfac7on*
Performance*
(more*is*beVer)*
Delighter*(wow)*
Need*
not*met*
Need*
fully*met*
Must*Have*
Needs*&*features*
migrate*over*7me*

Importance*vs.*Sa7sfac7on*
*Ask*Users*to*Rate*for*Each*Feature*
Recommended*reading:*
What*Customers*Want *by*Anthony*Ulwick*
Bad*
Great*

What*is*Your*Value*Proposi7on?*
!  Which*user*benefits*are*you*providing?*
!  How*are*you*beVer*than*compe7tors?*
* Compe&tor)A) Compe&tor)B) You)
Must*Have*Benefit*1* Y* Y* Y*
Performance*Benefit*1* High* Low* Med*
Performance*Benefit*2* Low* High* Low*
Performance*Benefit*3* Med* Med* High*
Delighter*Benefit*1* Y* a* a*
Delighter*Benefit*2* a* a* Y*

What*is*an*MVP?*
Courtesy*of*Jussi*Pasanen*
See*Aaaron*Walter’s*book*Designing'for'Emo-on' Copyright*©*2015*Olsen*Solu7ons*

Breaking*Features*Down*into*Chunks*
Must
Have 1
Performance
1
Delighter
1
Delighter
2
Must
Have 2
Performance
2
Performance
3
Benefits:
M1A P1A D2AM2A P2A
P3B
Features:
P1B D2BP2B
P3C
P3A
P1C
P1D

Product*Roadmap:*
Features*by*Version*or*Time*
Must Have Benefit 1
Performance Benefit 1
Delighter Benefit 1
Must Have Benefit 2
Delighter Benefit 2
M1A
Time
v1 v1.5 v2 v2.5
M2A
P3A
P1B
P3B
P2A
P1A
D2A
P3C
D2B
MVP
candidate

1. Determine*your*target*customer*
2. Iden7fy*underserved*customer*
needs*
3. Deﬁne*your*value*proposi7on*
4. Specify*your*MVP*feature*set*
5. Create*your*MVP*prototype*
6. Test*your*MVP*with*customers*

The*UX*Design*Iceberg*
What most
people see
and react to
What good
product
people
think about

Genng*Customer*Feedback:*
Problem*Space*vs.*Solu7on*Space*
!  Customers*CAN’T*ar7culate*problem*space*
!  Customers*CAN*react*to*solu7on*space*
!  That’s*why*you*need*something*tangible*to*
show*to*customers*to*get*good*feedback*

Design*Ar7facts:*
Interac7vity*vs.*Fidelity*
Hand*
sketch*
Interac7vity*
Fidelity*
Interac7ve*
Prototype*
Sta7c*
Wireframe**
Clickable*
Wireframe**
Mockup*
*
Clickable*
Mockup***
**Balsamiq:*balsamiq.com*
***InVision:*invisionapp.com*

What*Are*You*Going*to*Get*Feedback*&*
Learnings*About?*
Problem*Space*
(your*mental*model)*
Solu7on*Space*
(what*users*can*react*to)*
Customer*
Understanding*
(needs*&*
preferences)*
Feature*Set*
UX*Design* Messaging**

Ramen *User*Feedback*for*Startups*
!  Anyone*can*do*it!*
!  Ingredients:*
! Solu7onaspace*product/mockup*to*test*
! 1*customer*(with*laptop/phone*if*tes7ng*code)*
! 1*desk*
! 1*person*to*conduct*the*session*
! Pen*and*paper*
! Op7onal*noteataker*and*observers*

Typical*Format*for*User*Tes7ng*Session*
!  5*a*10*min:*Ask*ques7ons*to*understand*user*
needs*and*solu7ons*they*currently*use*
!  30*a*50*min:*User*feedback*
!  Show*user*product/mockup*
!  Nonadirected*as*much*as*possible*
!  When*necessary,*direct*user*to*aVempt*to*
perform*a*speciﬁc*task*
!  5*a*10*min:*Wrapaup*
!  Answer*any*user*ques7ons*that*came*up*
!  Point*out/explain*features*you*want*to*highlight*
!  Ask*them*if*they*would*use*the*product*

Dos*&*Don’ts*of*User*Tes7ng*Sessions*
!  Do*
!  Explain*to*the*user:*
!  Their*feedback*will*help*improve*the*product*
!  Not*to*worry*about*hur7ng*your*feelings*
!  Think*Aloud*Protocol *
!  Ask*user*to*aVempt*the*task,*then*be*a*ﬂy*on*the*wall*
!  Ask*nonaleading,*openaended*ques7ons*
!  Take*notes*and*review*them*aTerwards*for*takeaaways*
!  Don’t*
!  Ask*leading*or*closeaended*ques7ons*
!  Help *the*user*or*explain*the*UI*(e.g.,* click*over*here )*
!  Respond*to*user*frustra7on*or*ques7ons*(un7l*test*is*over)*
!  Get*defensive*
!  Blame*the*user*

Copyright*©*2015*YourVersion*

Itera7ng*Your*Product*Vector*Based*on*
User*Feedback*in*Solu7on*Space*
Problem*Space*
(your*mental*model)*
Solu7on*Space*
(what*users*can*react*to)*
*Customer*Feedback*
Mockups*/*Code*

Problem*
Space*
Solu7on*
Space*

Case*Study*on*ProductaMarket*Fit:*
Marke7ngReport.com*

ProductaMarket*Fit*Case*Study:*
Marke7ngReport.com*
!  My*consul7ng*client*(CEO)*had*an*idea*
for*a*new*product*
!  Team:*me,*CEO,*head*of*marke7ng,*
UI*design*consultant*
!  Goal:*
! Validate*productamarket*ﬁt*quickly,*cheaply*
without*wri7ng*a*single*line*of*code*
! Determine*if*there*was*a*business*
opportunity*here*

Developing*Product*Concept*
!  Product*Concept*was* marke7ng*report *that*let*
consumers*control*the*direct*mail*that*they*
receive*
!  Concept*was*fuzzy*with*various*components,*so*I*
broke*it*into*2*different* flavors :*
#1* Marke7ng*Shield :*Service*to*reduce/stop*junk*mail*
#2* Marke7ng*Saver :*Opt*in*&*receive*moneyasaving*offers*

Clustering*Poten7al*User*Beneﬁts*to*
Create*Product*Concepts*
Reduce
Junk Mail
Find out what
they know
about you
Money
Saving
Offers
Compare
Yourself
to Others
Social
Networking
Marketing
Report
Marketing
Score
Marketing
Profile
Save
Trees
Shield Concept Saver Concept

!  Telephone*recruit*of*prospec7ve*customers*
!  Wrote*phoneascreen*ques7onnaire*to*create*rough*
target*customer*segmenta7on*
!  Wanted*users*who*work*fulla7me*&*use*internet*
!  Fit*for*optain*oﬀers:*use*coupons,*Costco*membership*
!  Fit*for*an7ajunk*mail:*use*paper*shredder,*block*caller*ID*
!  Paid*each*person*$75*
!  Scheduled*3*groups*of*2*or*3*people*to*discuss*
each*product*concept*for*90*minutes*
!  Moderated*each*group*through*the*paper*
mockups*to*hear*their*feedback*
Recrui7ng*People*

Findings*on*Concepts*&User*Beneﬁts*
Reduce
Junk Mail
Find out what
they know
about you
Money
Saving
Offers
Compare
Yourself
to Others
Social
Networking
Marketing
Report
Marketing
Score
Marketing
Profile
Save
Trees
Legend
Strong appeal
Some appeal
Low appeal
Shield Concept Saver Concept

Summary*
!  4*weeks*from*1st*mee7ng*to*validated*
product*concept*with*zero*coding*
!  Reasonable*cost*
!  1*round*of*itera7on*on*product*concept*
!  Iden7ﬁed*compelling*concept*that*users*
are*willing*to*pay*$10/month*for*
!  Trimmed*away*nonavaluable*pieces*
!  You*can*achieve*similar*results*

1.  Determine*your*target*customer*
2.  Iden7fy*underserved*customer*needs*
3.  Deﬁne*your*value*proposi7on*
4.  Specify*your*MVP*feature*set*
5.  Create*your*MVP*prototype*
6.  Test*your*MVP*with*customers*
Iterate:*
*"*HypothesizeaDesignaTestaLearn*loop*
*"*Improve*productamarket*ﬁt*

Qualita7ve*vs.*Quan7ta7ve*Learning*
New)Product)
Qualita7ve*interviews*
Exis&ng)Product)
Quan7ta7ve*data*
Oprah) Spock)

The*Lean*Product*Playbook*
!  Published*by*Wiley*
!  Comes*out*June*2nd**
!  Hardcover*&*ebook*
!  Available*for*preorder*
on*Amazon:*
bit.ly/leanplaybook*

Questions?
@danolsen*
olsensolu7ons.com*
slideshare.net/dan_o*
leanproductplaybook.com*
*
Book:*bit.ly/leanplaybook*
*
*
*

The Lean Product Playbook by Dan Olsen

The Lean Product Playbook by Dan Olsen

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The Lean Product Playbook by Dan Olsen