Venture Design 1 Day Solving The Right Problem (For Japan-X

VENTURE DESIGN CRASH COURSE
PART I- SOLVING THE

RIGHT PROBLEM
Alex Cowan
4
2015 COWAN+
ABOUT ME
Entrepreneur (5x)
Intrapreneur (1x)
2015 COWAN+
THE VENTURE DESIGN PROCESS ()

&
CUSTOMER
DISCOVERY &
EXPERIMENTS
Was the implemented

story relevant to the
proposition?
S HO
IF
AT
WH
How did the customer

/user react?
Did the
implementation
deliver on
the story?
&
AL
E?
USER STORIES
& PROTOTYPES
VALUE
PROPOSITIONS &
ASSUMPTIONS
PRODUCT &
PROMOTION
Do we understand
this person? What
makes them tick?
PERSONAS
WHO?
WH
PROBLEM
SCENARIOS &
ALTERNATIVES
AT
SC
PIVOT?
Is the problem
relevant? Is the
proposition better
vs alternatives?
&
2015 COWAN+
ABOUT ME
www.alexandercowan.com
2015 COWAN+
WHY WOULD THIS CLASS BE IMPORTANT TO YOU?

Scale
Friendly
Innovation
Friendly
!?
ALEX COWAN
alexandercowan.com
@cowanSF
2015 COWAN+
WHY WOULD THIS CLASS BE IMPORTANT TO YOU?

!?
$
#4: Circulate ideas
#2: Anchor to
problems,
not solutions
#5: Test early, test often

#6: Let ideas die
with dignity
#7: Learn first,

scale second
#1: Start with the

individual
#3: Become a better

storyteller
#8: Find yourself,

then create new identities
2015 COWAN+
4. HOW WILL WE WORK TOGETHER?

converge the best
of what youve
created (as a
group)
alternatives
generate
divergent ideas
(by working
individually)
divergence
convergence
time
source: adapted from The Design of Everyday Things

2015 COWAN+
HOW WILL WE WORK TOGETHER?

Finding the Right
SOLUTION
alternatives
Finding the Right

PROBLEM
divergence
convergence
divergence
time
convergence

2015 COWAN+
WHAT WORK WILL WE DO?

Finding the Right
PROBLEM
Value Hypothesis &

Assumptions
Personas
Problems
Alternatives
alternatives
Finding the Right

SOLUTION
Product
Hypothesis
Field
Discovery
Experiments on Motivation
User Stories
Prototypes
Software
divergence
convergence
divergence
time
convergence

2015 COWAN+

&
CUSTOMER
DISCOVERY &
EXPERIMENTS
Was the implemented

proposition?
S HO
IF
AT
WH

/user react?
Did the
implementation
deliver on
the story?
&
AL
E?
USER STORIES
& PROTOTYPES
VALUE
PROPOSITIONS &
ASSUMPTIONS
PRODUCT &
PROMOTION
Do we understand
this person? What
makes them tick?
PERSONAS
WHO?
WH
PROBLEM
SCENARIOS &
ALTERNATIVES
AT
SC
PIVOT?
Is the problem
relevant? Is the
proposition better
vs alternatives?
&
2015 COWAN+
THE VENTURE DESIGN PROCESS
Do we understand
this person? What
makes them tick?
PERSONAS
WHO?
WH
AT
PROBLEM
SCENARIOS &
ALTERNATIVES
2015 COWAN+
THE PRACTICE OF DESIGN THINKING

The Twin Anti-Poles of Design Failure
Doing precisely what

the user asks
P
NA
Assuming you know whats

best and ignoring the user
2015 COWAN+
THE PRACTICE OF DESIGN THINKING

Finding the Right
PROBLEM
alternatives
Personas
Problems
Alternatives
Finding the Right

SOLUTION
Value Hypothesis &

Assumptions
Product
Hypothesis
User Stories
Field
Discovery
Prototypes
Software
divergence
convergence
divergence
time
convergence

2015 COWAN+
THE PRACTICE OF DESIGN THINKING- WHY IS IT HARD?
Then ()
Now ()
Survival
()
Design Thinking
()
2015 COWAN+
THE PRACTICE OF DESIGN THINKING- FOUNDATIONS
Empathy () Creativity ()
2015 COWAN+
2015 COWAN+

1
Entry ()
Urinate as they go ()
Edges preferred ()
Speedy ()
PB () > cheese ()
Empathy ()
2015 COWAN+

Check & Repair ()
UV Validation ()
Relevant Placement ()
A Better Mouse Trap ()
Better Bait ()
Creativity ()
2015 COWAN+
THE VENTURE DESIGN PROCESS- PERSONAS
Do we understand
this person? What
makes them tick?
PERSONAS
WHO?
WH
AT
PROBLEM
SCENARIOS &
ALTERNATIVES
2015 COWAN+
DESIGN THINKING (): EMPATHY & PERSONAS
bit.ly/2persona
ALEX COWAN
alexandercowan.com
@cowanSF
2015 COWAN+
DESIGN THINKING: EMPATHY & PERSONAS
bit.ly/2persona
ALEX COWAN
alexandercowan.com
@cowanSF
2015 COWAN+
PERSONA: BAD
Women
Age 28-45
Has kids
Socialize with other moms
Online with Facebook
86% said theyd like to be more
organized
70% said theyd use an application
that organizes them
2015 COWAN+
PERSONA: BAD
This is a huge populationnot exact
Women
Age 28-45
Has kids
Bullet points are almost never

vivid or detailed
Socialize with other moms

Online with Facebook
These responses are fake actionablesurvey responses like this are
unreliable
86% said theyd like to be more

organized
70% said theyd use an application
that organizes them
Stock photo- not real

2015 COWAN+
THE ART OF CUSTOMER DISCOVERY
2015 COWAN+
PERSONA: BETTER
Mary the Mom

Mary is a mom by choice. She had a successful career in
accounting, but welcomed the opportunity to be a stay at home
mom. She loves it. But its not like having kids purged her
creative, social instincts. She wants to connect, she wants to
learn, she wants to interact. Being a mom is a job and she wants
to do it well. That means corresponding with other moms on
child education and keeping track of what works. She posts to
Facebook at least twice a week and responds to other moms
items more often than that.
She has a few blogs and publications she reads regularly
2015 COWAN+
PERSONA: BETTER
the use of a first name helps w/
vividness (a little)
these full sentences look like a good

start towards something vivid and
detailed
this is a real photo of a relevant

person taken with an iPhone in the
real world
Mary the Mom

Mary is a mom by choice. She had a successful career in
accounting, but welcomed the opportunity to be a stay at home
mom. She loves it. But its not like having kids purged her
creative, social instincts. She wants to connect, she wants to
learn, she wants to interact. Being a mom is a job and she wants
to do it well. That means corresponding with other moms on
child education and keeping track of what works. She posts to
Facebook at least twice a week and responds to other moms
items more often than that.
She has a few blogs and publications she reads regularly
2015 COWAN+
Vivid
Actionable
Real
Identifiable
Exact
Detailed
2015 COWAN+
EXERCISE- PERSONA CREATION

List at least 3 personas
3
Mary the Working Mom
Susan the Stay-at-Home Mom
Douglas the Dad
Nathan the Nanny
Ivan the Infant
use 1 index card/

persona
1
/
(4 min)
2015 COWAN+
A LITTLE GAME FOR BETTER PERSONA DISCOVERY
Day in the Life
We look at a few photos for a given persona (not a full picture, just snippets)
You make some guesses about them
There are no right answers BUT
There is a right process: observe and infer
OBJECTIVE:
Get a feel for whats real; start to create something vivid
2015 COWAN+
A LITTLE GAME FOR BETTER PERSONA DISCOVERY
2015 COWAN+
PERSONAS- THINK SEE FEEL DO
2015 COWAN+
PERSONAS- THINKS?
Thinks: (The cognitive part. Often: the tension between how theyd ideally like things to be and how they are now.)
Sees
Feels
Does
2015 COWAN+
EXAMPLE- ENABLE QUIZ & HELEN THE HR MANAGER
2015 COWAN+

Example: Helen the HR Manager
Thinks: Helen thinks the hiring process should be so much better- more systematic, fewer bad hires. Professional development is
something theyve identified that they want to do better, but the functional managers arent engaged enough to get the whole
thing started.
Sees
Feels
Does
2015 COWAN+
EXERCISE- DISCOVERING WHAT THEY THINK

Question Form
Examples Questions (Enable Quiz)
Tell me about [yourself in the role of the persona]?
- Tell
Tell me about [your area of interest]?
- Do
Tell me your thoughts about [area]?
me about being an HR manager?

- What do you most, least like about the job?
- What are the hardest, easiest parts of the job?
- Ive heard [x]- does that apply to you?
you do screen new candidates? If not, who?
- Can you tell me about the last time? What was the trigger?
- Who else was involved? What was it like?
- How should it ideally be done?
- How is it actually done? Why?
Draft discovery questions

in the areas above
(If complete, converge
with your group)
(7 min)
2015 COWAN+

Draft the Think portion for your top persona (If done, converge with your group.)
something theyve identified that they want to do better, but the functional managers arent engaged enough to get the whole
thing started.
Sees
Feels
Does
(4 min)
2015 COWAN+
CAN YOUR PERSONA DO THIS?

Capture
Attention
via Google
AdWord
Secure the
infamous
click through
Engage Interest,
Desire on
landing page
Action,
onboarding,
retention
()
2015 COWAN+
CREATING AN ADWORD AD
2015 COWAN+
EXERCISE: CREATE AN ADWORD AD: THINK ANGLE

Create at least one Google AdWords ad on the paper template- specifically
using the think angle on your persona
1. Select keywords (put in Notes section)

2. Draft ad copy
How does the draft follow from your personas?
Are you speaking in the language your customers use?
Are you connecting with the THINK in your Think-See-Feel-Do?
(NO RULE AGAINST UPDATING YOUR PERSONA WHILE YOU DO THIS!)
2015 COWAN+
PERSONAS- SEES?
Sees: (The interactions that shape their Thinking- media, peers, education, training, casual observation.)
Feels
Does
2015 COWAN+

something theyve identified that they want to do better, but the functional managers arent engaged enough to get the whole thing
started.
Sees: Helen is at the tail end of every bad hire and sees the damage it does to the employee and company, alike. Helen sees that
online learning has rocketed forward in the last few years. If someone wants to learn a specific skill, theres a number of high
quality options online, many of them free. They just need a way to help employees organize select into these courses.
Feels
Does
2015 COWAN+
EXERCISE- DISCOVERING WHAT THEY SEE

Question Form
- Tell
- Do
What do you see in [area]?

- What are the hardest, easiest parts of the job?
you do screen new candidates? If not, who?
Where do you learn whats new? What others do?
Who do you think is doing it right?
How did you make your last decision?

in the areas above
with your group)
(4 min)
2015 COWAN+

Draft the See portion for your top persona. (If done, converge with your group.)
started.
Feels
Does
2015 COWAN+
EXERCISE: CREATE AN ADWORD AD: SEE ANGLE

using the see angle on your persona

2. Draft ad copy
Are you connecting with the SEE in your Think-See-Feel-Do?
2015 COWAN+
()PEER PRESENTATIONS PREP!

For [target customer] who [statement of the need or opportunity], the [product
name] is a [product category] that [statement of key benefit/key reason to buy].
unlike [primary alternative], our product [statement of primary differentiation].
[][][
/][][] []
[]
2015 COWAN+
PERSONAS- FEELS?
Feel: (The emotional driver. What are the predominant emotions around the relevant activity? What is the emotional outcome of
the actions they take around the activity?)
Does
2015 COWAN+

started.
Feels: Helen feels like crap whenever they have to let someone go. She hates it. The employee hates it. The manager hates it. Its
incredibly destructive and de-motivating for everyone involved. Helen would love to be more involved, more included in
functional skills evaluation and improvement. Shes love to have a success story to talk about. Most HR departments dont do a
whole lot in this area.
Does
2015 COWAN+
EXERCISE- DISCOVERING WHAT THEY FEEL

Question Form

the
of the
job?feel area
- What are the hardest, easiest partsfor
- Tell
- Do
How do you feel about [area]?
you do screen new candidates?with

If not, who?
your group)
min)
it like?
- Who else was involved? What was (4
Tell me about the last time?
What motivates you? What parts of it are most rewarding? Why?
What would it be like in your perfect world?
2015 COWAN+

Draft the Feel portion for your top persona. (If done, converge with your group.)
started.
incredibly destructive and de-motivating for everyone involved. Helen would love to be more involved, more included in
functional skills evaluation and improvement. Shes love to have a success story to talk about. Most HR departments dont do a
whole lot in this area.
Does
2015 COWAN+
EXERCISE: CREATE AN ADWORD AD: FEEL ANGLE

using the feel angle on your persona

2. Draft ad copy
Are you connecting with the FEEL in your Think-See-Feel-Do?
2015 COWAN+
PERSONAS- FEELS?
Feel: (The emotional driver. What are the predominant emotions around the relevant activity? What is the emotional outcome of the
actions they take around the activity?)
Do: The actuals. As applicable: What triggers? How often? For how long? How much money?
2015 COWAN+

started.
incredibly destructive and de-motivating for everyone involved. Helen would love to be more involved, more included in functional
skills evaluation and improvement. Shes love to have a success story to talk about. Most HR departments dont do a whole lot in
this area.
Does: Helens relatively responsive to new ideas, particularly if someone knowledgeable is willing to come in and talk about it. If
she likes it, shell bring it to the functional managers, who are usually the ultimate decision makers since without their support
she cant get the system online and working. Post-sale, Helen will help keep the program organized, moving, and otherwise on
the functional managers radar. All this is predicated on Helen being equipped with the right messages, facts, and best practices
to make the purchase and use of Enable Quiz effective.
2015 COWAN+
EXERCISE- DISCOVERING WHAT THEY DO

Question Form

the
of the
job?do area
- What are the hardest, easiest partsfor
- Tell
- Do
How do you feel about [area]?
What do you do in [area]?
you do screen new candidates?with

If not, who?
your group)
(4
Tell me about the last time?
What motivates you? What parts of it are most rewarding? Why?
What would it be like in your perfect world?
min)
How many new openings/quarter?

How many interviews/position?
2015 COWAN+

Draft the Do portion for your top persona. (If done, converge with your group.)
started.
incredibly destructive and de-motivating for everyone involved. Helen would love to be more involved, more included in functional
skills evaluation and improvement. Shes love to have a success story to talk about. Most HR departments dont do a whole lot in
this area.
Does: Helens relatively responsive to new ideas, particularly if someone knowledgeable is willing to come in and talk about it. If
she likes it, shell bring it to the functional managers, who are usually the ultimate decision makers since without their support
she cant get the system online and working. Post-sale, Helen will help keep the program organized, moving, and otherwise on
the functional managers radar. All this is predicated on Helen being equipped with the right messages, facts, and best practices
to make the purchase and use of Enable Quiz effective.
2015 COWAN+
EXERCISE: CREATE AN ADWORD AD: DO ANGLE

using the do angle on your persona

2. Draft ad copy
Are you connecting with the DO in your Think-See-Feel-Do?
2015 COWAN+
PERSONAS & PROBLEM SCENARIOS
Do we understand
this person? What
makes them tick?
PERSONAS
WHO?
WH
AT
PROBLEM
SCENARIOS &
ALTERNATIVES
2015 COWAN+
2015 COWAN+

PROBLEM SCENARIO
2015 COWAN+

PROBLEM SCENARIO
What job(s) are you doing for the

customer?
What existing need or behavior
are you fulfilling?
2015 COWAN+

PROBLEM SCENARIO
ALTERNATIVE(S)
?
2015 COWAN+

PROBLEM SCENARIO
ALTERNATIVE(S)
If they currently use

spreadsheets, watch them use it
and get a copy of it.
If they currently put notes on the family
fridge, ask about it, photograph it.
X
?
2015 COWAN+

Hiring technical talent is difficult.
(Too Broad, Abstract)
Screening technical talent is difficult.

(Probably About Right)
Its hard for the HR manager to send good notes on

candidates to the functional manager.
(Too Detailed, A Feature vs. a Product/Venture)
2015 COWAN+

PROBLEM SCENARIO
ALTERNATIVE(S)
2015 COWAN+
PROBLEM SCENARIO
ALTERNATIVE(S)
Brainstorm Problem Scenario

+Alternative Pairs.
Problem: Helen doesn't have a software
engineering background, so it's hard for her to
screen engineering candidates. She ends up
sending the functional manager too many
unqualified candidates. .
Alternative: She calls references and mostly ends
up taking their word for it.
(4 min)
2015 COWAN+
EXERCISE: CREATE AN ADWORD AD: PROBLEM SCENARIOS

using the your top problem scenarios (and alternatives as you see fit)

2. Draft ad copy
How does the draft follow from your problem scenarios?
(NO RULE AGAINST UPDATING YOUR PROBLEM SCENARIOS WHILE YOU DO THIS!)
2015 COWAN+

PROBLEM SCENARIO
ALTERNATIVE(S)
YOUR VALUE PROPOSITIONS
!
2015 COWAN+

PROBLEM SCENARIO
ALTERNATIVE(S)
Are they better enough than the

alternative(s)?
!
2015 COWAN+
X
?
!
PROBLEM SCENARIO
ALTERNATIVE(S)
Brainstorm Problem
Scenario+Alternative Pairs.
-
Problem: Helen doesn't have a software
engineering background, so it's hard for her to
screen engineering candidates. She ends up
sending the functional manager too many
unqualified candidates. .
Alternative: She calls references and mostly ends
up taking their word for it.
Value Proposition: New ability for meaningful
screening of technical candidates, increasing % of
successful hires and lowering Frank the Functional
Manager's workload on recruiting.
(4 min)
2015 COWAN+
EXERCISE: CREATE AN ADWORD AD: VALUE PROPOSITIONS

using the your top value propositions

2. Draft ad copy
How does the draft follow from your value propositions?
(NO RULE AGAINST UPDATING YOUR PROBLEM SCENARIOS WHILE YOU DO THIS!)
2015 COWAN+
AND NOW THE PRODUCT HYPOTHESIS

A certain PERSONA exists
and they have a certain
PROBLEMS(S)
where theyre currently using certain

ALTERNATIVE(S)
and I have a VALUE PROPOSITION

thats better enough than the alternatives
to cause the persona to act (purchase,
use, etc.).
!
2015 COWAN+

PROBLEMS(S)

ALTERNATIVE(S)
use, etc.).
Draft your product

hypothesis
Enable Quiz example:

HR and functional managers are in charge of
technical hires
and they struggle to effectively screen for
technical skill sets, making the hiring process
slower and more labor intensive and producing
worse outcomes than they should reasonably
expect.
Currently they implement a patchwork of calling
references and asking a few probing questions.
By offering an easy, affordable, lightweight
technical quizzing solution, Enable Quiz can
acquire and retain these customer personas,
delivering material value.
(4 min)
2015 COWAN+
RECORDING ON THE BUSINESS MODEL CANVAS

(Key
Partners)
(Key
Activities)
(Value
(Customer
Propositions) Relationships)
(Customer
Segments)
(Key
Resources)
(Cost Structure)
(Channels)
(Revenue Streams)
The templates here are made available on the same CC license terms as the original canvas.
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://
creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
2015 COWAN+

Who are they?
Why do they buy?
Value
Propositions
Customer
Segments
()
Broad Selection
Do-it-yourselfers
Competitive Prices
Casual Shoppers
Convenience
Contractors
(
)
Example: Home Depot

2015 COWAN+

1.
Partner_1
(Key
Partner_2
Partners)
Partner_3
Activity_1
(Key
Activity_2
Activities)
Activity_3
Proposition_1
(Value
Proposition_2
Propositions)
Proposition_3
Relationship_1
(Customer
Relationship_2
Relationships)
Relationship_3
Resource_1
(Key
Resource_2
Resources)
Resource_3
Segment_1
(Customer
Segment_2
Segments)
Segment_3
Channel_1
(Channels)
Channel_2
Channel_3
2.
3.
List Prioritized Customer

Segments/Personas
List Prioritized Value
Propositions
Note Linkages
(if applicable
1
Personas
(Cost Cost_1
Structure)
Cost_2
Revenue_1
(Revenue
Streams)
Revenue_2
Cost_3
Revenue_3
The templates
templates here
here are
are made
made available
available on
on the
the same
same CC
CC license
license terms
The
terms as
as the
the original
original canvas.
canvas.
This work is licensed under the Creativeor
Commons
Attribution-Share
Alike 3.0171
Unported
To view
copy
of this license,
visit http://
creativecommons.org/licenses/by-sa/3.0/
send a letter
to Creative Commons,
SecondLicense.
Street, Suite
300,aSan
Francisco,
California,
94105, USA.
2
Personas
3
(5 min)
2015 COWAN+

&
CUSTOMER
DISCOVERY &
EXPERIMENTS
Was the implemented

proposition?
S HO
IF
AT
WH

/user react?
Did the
implementation
deliver on
the story?
&
AL
E?
USER STORIES
& PROTOTYPES
VALUE
PROPOSITIONS &
ASSUMPTIONS
PRODUCT &
PROMOTION
Do we understand
this person? What
makes them tick?
PERSONAS
WHO?
WH
PROBLEM
SCENARIOS &
ALTERNATIVES
AT
SC
PIVOT?
Is the problem
relevant? Is the
proposition better
vs alternatives?
&
2015 COWAN+
WHERE YOU SHOULD BE NOW
Personas, including
Think-See-Feel-Do
Problem Scenarios
Alternatives
Value Propositions
Do we understand
this person? What
makes them tick?
PERSONAS
WHO?
WH
PROBLEM
SCENARIOS &
ALTERNATIVES
AT
Interview Guide
2 (or more) Interviews
2015 COWAN+
WHAT WELL WORK ON TODAY

Finding the Right
PROBLEM
alternatives
Personas
Problems
Alternatives
Finding the Right

SOLUTION
Value Hypothesis &

Assumptions
Product
Hypothesis
Field
Discovery
divergence
convergence
divergence
time
convergence

2015 COWAN+

(Key
Partners)
(Key
Activities)
(Key
Resources)
(Cost Structure)
(Value
(Customer
Propositions) Relationships)
(Customer
Segments)
(Channels)
(Revenue Streams)
The templates here are made available on the same CC license terms as the original canvas.
2015 COWAN+

Who are they?
Why do they buy?
Customer
Segments
Value
Propositions
Broad Selection
Do-it-yourselfers
Competitive Prices
Casual Shoppers
Convenience
Contractors
Example: Home Depot

2015 COWAN+

Partner_1
(Key
Partner_2
Partners)
Partner_3
Activity_1
(Key
Activity_2
Activities)
Activity_3
Proposition_1
(Value
Proposition_2
Propositions)
Proposition_3
Relationship_1
(Customer
Relationship_2
Relationships)
Relationship_3
Segment_1
(Customer
Segment_2
Segments)
Segment_3
1.
Resource_1
(Key
Resource_2
Resources)
Resource_3
Channel_1
(Channels)
Channel_2
Channel_3
(Cost Cost_1
Structure)
Cost_2
Revenue_1
(Revenue
Streams)
Revenue_2
Cost_3
Revenue_3
The templates
templates here
here are
are made
made available
available on
on the
the same
same CC
CC license
license terms
The
terms as
as the
the original
original canvas.
canvas.
This work is licensed under the Creativeor
Commons
Attribution-Share
Alike 3.0171
Unported
To view
copy
of this license,
visit http://
creativecommons.org/licenses/by-sa/3.0/
send a letter
to Creative Commons,
SecondLicense.
Street, Suite
300,aSan
Francisco,
California,
94105, USA.
2.
3.
List Prioritized Customer

Segments/Personas
List Prioritized Value
Propositions
Note Linkages
(if applicable)
(5 min)
2015 COWAN+
WHAT WELL COVER TODAY

CUSTOMER
DISCOVERY &
EXPERIMENTS
Was the implemented

proposition?
WH
IF
AT
?
VALUE
PROPOSITIONS &
ASSUMPTIONS
Do we understand
this person? What
makes them tick?
PERSONAS
WHO?
WH
AT
PROBLEM
SCENARIOS &
ALTERNATIVES
2015 COWAN+

PROBLEMS(S)

ALTERNATIVE(S)
use, etc.).
As a group, converge
your product hypothesis
Enable Quiz example:

HR and functional managers are in charge of
technical hires
and they struggle to effectively screen for
technical skill sets, making the hiring process
slower and more labor intensive and producing
worse outcomes than they should reasonably
expect.
Currently they implement a patchwork of calling
references and asking a few probing questions.
By offering an easy, affordable, lightweight
technical quizzing solution, Enable Quiz can
acquire and retain these customer personas,
delivering material value.
(5 min)
2015 COWAN+
WORKING YOUR PRODUCT HYPOTHESIS

PERSONA HYPOTHESIS

PROBLEMS(S)

ALTERNATIVE(S)
and I have a
use, etc.).
QUESTIONS
Does this person exist?
Can you identify them?
Do you understand them really well?
What do they think-see-feel-do in your
area?
TOOLS
Photos
Think-See-Feel-Do
Discovery Interviews
Storyboards
Day in the Life Boards
2015 COWAN+

A certain
PROBLEM HYPOTHESIS

PROBLEMS(S)

ALTERNATIVE(S)
and I have a
use, etc.).
QUESTIONS
Have you identified a discrete problem/
need?
How important is it to the target
persona(s)?
What alternatives do they use today? How?
TOOLS
Problem Scenario + Alternative + Value
Proposition Trios
Discovery Interviews
Storyboards
2015 COWAN+

A certain
VALUE HYPOTHESIS

PROBLEMS(S)

ALTERNATIVE(S)
QUESTIONS
How much better than the best alternative
is your product?
How obvious is that to the customer?
TOOLS
Structured Assumptions
Structured Experiments (including MVP)

use, etc.).
2015 COWAN+
HYPOTHESIS-DRIVEN INNOVATION VIA LEAN STARTUP

Do I have real evidence from my buyer that
this is compelling?
01 IDEA!
What is our value hypothesis and what are

its key assumptions?
02 HYPOTHESIS
How do I definitely prove or disprove the

assumptions with a minimum of time and
effort?
Am I reacting or am I focused on
validating my pivotal assumptions?
03 EXPERIMENTAL DESIGN
04 EXPERIMENTATION
Pivot or persevere?
source: adapted from The Lean Startup
VALUE
HYPOTHESIS
2015 COWAN+

02 HYPOTHESIS
VALUE
HYPOTHESIS
2015 COWAN+
EXAMPLE: ENABLE QUIZ

Persona(s)
Helen the HR Manager- responsible for sourcing and screening job candidates
Frank the Functional Manager- hiring manager responsible for acquiring and managing talent
Problem
Scenario
Helen: hard to screen for technical skills

Frank: never has enough time for recruiting and doesnt want to be a jerk during interviews
Alternatives
Helen: call references, take their word for it (on skills)

Frank: ask a few probing questions
Value Prop.
A lightweight quizzing app that has Helen can use to do quick, effective screening.
What is the core value hypothesis?
2015 COWAN+

Core Value Hypothesis
If Enable Quiz offers companies that hire
engineers lightweight technical quizzes that
screen job candidates for engineering positions,
then these companies would trial, use, adopt, and
pay for such a service.
2015 COWAN+

As a group, draft your
core value hypothesis
As a group, converge
your product hypothesis
If Enable Quiz offers companies that hire

engineers lightweight technical quizzes that
screen job candidates for engineering positions,
then these companies would trial, use, adopt, and
pay for such a service.
(5 min)
2015 COWAN+
UNBUNDLING THE VALUE HYPOTHESIS INTO ASSUMPTIONS

If we [do something] for [persona], they will [respond in a certain way]
Example Assumptions (Enable Quiz)
If we get HR managers to a landing page with a demo, 10% will sign up for
our email product announcements.
If we create position-specific quizzes for HR managers, theyll use them
~100% of the time and, after two positions, be willing to pay.
If we offer the service at [x] price with [y] supplemental assistance,
companies that hire a lot of engineers will pay [z].
2015 COWAN+
TESTING YOUR ASSUMPTIONS VIA AN MVP
Minimum
V
P
What is the fastest, cheapest

way to validate or invalidate
this option so we give
ourselves more options on
future success?
2015 COWAN+
M
Viable
Will it give us a definitive

result? What are the
actionable metrics?
2015 COWAN+
M
V
Product
Does it really require actual

product? Can we use
alternative brands, channels?
2015 COWAN+
Minimum
Viable
Product
is not necessarily actual software/product (see

concierge MVP)
is a first and foremost learning vehicle
vs. a project plan
vs. a product development project
(OK to do those things but always subordinate
them to the learning mission)
2015 COWAN+

MVP Archetype
Wizard of Oz
Concierge
Sales
Notes
Show or fake the customer experience
Hand create the user experience
See if you can sell some.
2015 COWAN+

MVP Archetype
Wizard of Oz
Concierge
Sales

2015 COWAN+
CASE STUDY: DROPBOX

OPPORTUNITY
Underlying demand and supporting
infrastructure ready for a great file sharing app.
CHALLENGE
Building a great cross-platform app. required
VC funding. VCs saw a space with lots of
existing competitors struggling to get traction.
2015 COWAN+
CASE STUDY: DROPBOX

Persona
Tom the Techie- early adopter who works on projects that require swapping a lot of files between a shifting
network of collaborators.
Problem
Scenario
Its difficult to share files between a network of collaborators, particularly if theyre: big or numerous or change a
lot.
Alternatives
Many existing products, but none of them super compelling and widely adopted.
Also, custom setups which work but are cumbersome to set up and maintain.
Value
Hypothesis
If Dropbox created a file sharing service that truly felt transparent to the user across all major platforms- OSX, iOS,
Windows, etc., then a mass market of users would prefer it over the alternatives, subscribe to it and use it over
time.
What Minimum Viable Product (MVP)?

That you can bootstrap?
That doesnt require software at all?
2015 COWAN+
THE WIZARD OF OZ MVP

Created a synthetic web demo tailored
for early market (techies), promoted it,
and measured email sign-ups.
Result: Excellent traction and
conversion to sign-ups.
Strong validation signal.
2015 COWAN+

OPPORTUNITY
Hiring quality technical talent is critical for
many companies, but screening for skill sets is
time consuming and awkward.
CHALLENGE
The founding team wants to bootstrap without
external funding so they need to focus on a
specific technical domain, one that will get
them strong early traction.
2015 COWAN+

Persona(s)
Helen the HR Manager- responsible for sourcing and screening job candidates
Frank the Functional Manager- hiring manager responsible for acquiring and managing talent
Problem
Scenario
Helen: hard to screen for technical skills

Frank: never has enough time for recruiting and doesnt want to be a jerk during interviews
Alternatives
Helen: call references, take their word for it (on skills)

Frank: ask a few probing questions
Value
Hypothesis
If Enable Quiz offers companies that hire engineers lightweight technical quizzes that screen job candidates for
engineering positions, then these companies would trial, use, adopt, and pay for such a service.

2015 COWAN+
THE CONCIERGE MVP

Work with a set of HR managers to produce
position-specific quizzes by hand on paper (or
Google Forms, etc.).
Metrics:
Do the HR managers use them? How often?
Do they want one for their next open position?
Do the functional managers care?
2015 COWAN+

A QUESTION?
There are dozens of technical/engineer topics
Enable Quiz could offer. How can they assess
which topics are most marketable?
2015 COWAN+
THE GOOGLE ADWORDS MVP

Pair their qualitative research with topics trending
online and then run a series of Google AdWords
campaigns with different topics.
Metrics:
Which topics have the highest click-through rate (CTR)?
Which then convert to sign-ups to newsletters, etc.?
2015 COWAN+
CASE STUDY: LEONID SYSTEMS

OPPORTUNITY
(2007) Major disruption and new product
opportunities among telecom providers with
introduction of voice-over-IP and cloud
communications.
IT systems need to be rethought.
CHALLENGE
As a one-person startup, Leonid had actionable
ideas but not enough resources to execute an
end-to-end solution.
2015 COWAN+

Persona(s)
Chris the CTO- has funding and mandate to transition the business towards hosted services; many bases to cover
Problem
Scenario
IT is the most expensive, most risky area when making changes to the business.
Alternatives
1) Place large, risky bets on major new system upgrades. 2) Make small incremental updates (but risk not keeping
pace).
Value
Hypothesis
Leonid will offer modular, integration-friendly applications in two critical areas: 1) services provisioning and 2) end
user self-service portals.

2015 COWAN+

CONSULTING
PRODUCTIZED
CONSULTING
Started with consulting as a concierge vehicle

to create tactical solutions, focus problem
scenarios, evolving to full-fledged product.
Result: Steady step-wise growth with
consistently better understanding of key
customer problem scenarios.
PRODUCTS
2015 COWAN+
CASE STUDY: ZAPPOS

OPPORTUNITY
(1999) An observed problem scenario around
the difficulty of finding the right shoe at local
retail and a giant (but nascent) market in online
retail.
CHALLENGE
Consumers still in the early stages of adopting
and habituating to online retail. Founder (Nick
Swinmurn) wanted to bootstrap.
2015 COWAN+
CASE STUDY: ZAPPOS

Photographed shoes and put them online to
observe whether anyone bought them.
Result:
It worked and the rest is history.
2015 COWAN+
CASE STUDY: ZAPPOS

Persona(s)
Sam the shoe-hound- knows what he wants but not where to get it.
Problem
Scenario
Sam is unable to find the shoe he wants at local retailers, wasting time and getting frustrated.
Alternatives
Possibly mail order or wait until hes in a bigger market to go to the store.
Value
Hypothesis
Make the shoe Sam wants accessible online and make sure he has a great experience so hell come back and not
have to think about where to find the shoe he wants anymore.

2015 COWAN+
CASE STUDY: SPRIG

Startup looking for early traction for investors:
Whole Foods (deli) meets Uber.
OPPORTUNITY
Large opportunity to re-segment and disrupt
food prep. and delivery business. Desire to
move fast and learn fast.
CHALLENGE
Some existing competitors and slow
fundraising process. Food prep. and delivery
requires infrastructure.
source: as told to Lean Startup Circle, SF (Jan 2014)
2015 COWAN+
CASE STUDY: SPRIG

Persona(s)
Paula the Professional- health conscious, short on time, moderate to high income, already uses similar services
like Uber.
Problem
Scenario
Alternatives
I want to have a nice, healthy dinner with no hassle and at a price I can afford (like $12).
Value
Hypothesis
Going to the store or an expensive, take-out, or a slow delivery service (>20 minutes).
If Sprig offers Paula a healthy meal like you would order a cab (on Uber), then she would use and reuse the service.
* This is me interpolating/guessing on an item; not part of the Sprig teams explanation.

2015 COWAN+
THE CONCIERGE MVP

Created a synthetic web demo tailored for early
market (techies), promoted it, and measured email
sign-ups.
Result: Excellent traction and conversion to sign-ups.

Strong validation signal.
2015 COWAN+
CASE STUDY: PAUL HOWE & ASSOCIATES

OPPORTUNITY
Funded startup team rapidly iterating through
B2C concepts with lightweight
experimentation.
One idea: Some people would like to know how
much their stuff is worth.
CHALLENGE
Iterate to a successful concept while the time
and money permits.
2015 COWAN+

Persona
Problem
Scenario
Alternatives
I have a lot of stuff around that I might want to sell and/or Im just generally curious about how much its worth, how
much Ive spent.*
Going through credit card statements or receipts.
Value
Hypothesis
If Paul Howe & Co. offered a service where you could quickly, automatically know how much your stuff is worth,
users would engage with such a service in large numbers.*
* This is me interpolating/guessing on an item; not part of the Sprig teams explanation.

2015 COWAN+

Get a few sign-ups with access to email and bank
account info. Review by hand on a concierge basis
and compile a statement for them. Do they care?
Result: They dont care. Time to move on to the
next concept.
2015 COWAN+
CASE STUDY: STEALTH PHOTO-SOCIAL STARTUP

OPPORTUNITY
Lots of exciting things happening in the photosocial space.
CHALLENGE
The team had several ideas but few resources.
2015 COWAN+

Persona
Existing poster of photos. Personas: Martha the Mom, Pat the Party Planner, Teresa the Teen Social Butterfly
Problem
Scenario
[I want to do something interesting with my photos so that my social graph rewards me with interest and acclaim]
Alternatives
Manually enhance photos, use alternative enhancers/amplifiers like Instagram
Value
Hypothesis
If we offers Facebook users a way to [do something novel] with their photos, they will try the service and convert to
a paid version of the app.

2015 COWAN+

What MVP?
That you can
bootstrap?
That doesnt require
software at all?
ASSUMPTION
If the user shares a photo
with this treatment, the
users social network will
like and share the apps
output
2015 COWAN+
MVP
Create the target output
by hand (concierge style)
Does anyone care?
ASSUMPTION
If the user shares a photo
with this treatment, the
users social network will
like and share the apps
output
2015 COWAN+
ABOUT SOFTWARE, TESTING MOTIVATION, AND MVPS

You have to put the magic in the software.
(Not the other way around)
Concierge and other non-software MVPs
can be pretty magical.
Find 100 people that are really into it and
you can probably grow.
2015 COWAN+

MVP Archetype
Wizard of Oz
Concierge
Sales

Individually, begin decomposing your core value

hypothesis into testable assumptions
Pair them with ideas for experimentation (including
MVPs if applicable)
2015 COWAN+

&
CUSTOMER
DISCOVERY &
EXPERIMENTS
Was the implemented

proposition?
S HO
IF
AT
WH

/user react?
Did the
implementation
deliver on
the story?
&
AL
E?
USER STORIES
& PROTOTYPES
VALUE
PROPOSITIONS &
ASSUMPTIONS
PRODUCT &
PROMOTION
Do we understand
this person? What
makes them tick?
PERSONAS
WHO?
WH
PROBLEM
SCENARIOS &
ALTERNATIVES
AT
SC
PIVOT?
Is the problem
relevant? Is the
proposition better
vs alternatives?
&
2015 COWAN+
WHAT WE COVERED LAST TIME
VALUE
PROPOSITIONS &
ASSUMPTIONS
2015 COWAN+

Do I have real evidence from my buyer that
this is compelling?
01 IDEA!

02 HYPOTHESIS
How do I definitely prove or disprove the

assumptions with a minimum of time and
effort?
Am I reacting or am I focused on
validating my pivotal assumptions?
03 EXPERIMENTAL DESIGN
04 EXPERIMENTATION
Pivot or persevere?
source: adapted from The Lean Startup
VALUE
HYPOTHESIS
2015 COWAN+

A certain
VALUE HYPOTHESIS

PROBLEMS(S)

ALTERNATIVE(S)
QUESTIONS
How much better than the best alternative
is your product?
How obvious is that to the customer?
TOOLS
Structured Assumptions
Structured Experiments (including MVP)

use, etc.).
2015 COWAN+
WHERE YOU SHOULD BE NOW
Personas,
including ThinkSee-Feel-Do
(Converged)
Problem Scenarios
Alternatives
Value Propositions
(Converged)
Do we understand
this person? What
makes them tick?
PERSONAS
WHO?
WH
PROBLEM
SCENARIOS &
ALTERNATIVES
AT
VALUE
PROPOSITIONS &
ASSUMPTIONS
Product Hypothesis
(Converged)
Value Hypothesis
Assumptions for Value
Hypothesis
Interview Guide
2 (or more) Interviews
2015 COWAN+
WHAT WELL COVER TODAY

CUSTOMER
DISCOVERY &
EXPERIMENTS
WH
IF
AT
?
VALUE
PROPOSITIONS &
ASSUMPTIONS
2015 COWAN+
WHAT WELL WORK ON TODAY

Finding the Right
PROBLEM
alternatives
Personas
Problems
Alternatives
Field
Discovery
divergence
Finding the Right

SOLUTION
Value Hypothesis &

Assumptions
Product
Hypothesis
convergence
divergence
time
convergence

2015 COWAN+

MVP Archetype
Wizard of Oz
Concierge
Sales

2015 COWAN+

MVP Archetype
Wizard of Oz
Concierge
Sales

2015 COWAN+
YOUR VENTURE, THE EXPERIMENT

Component
Notes
What assumption will this test? How?
What is/are the pivotal metric(s)?

What is the threshold for true (validated) vs.
false (invalidated)?
What will you do next if the result is true?
False?
How much time, money will it take to set up?
Roughly, what will it take for each individual
test? Subsequent tests?
Roughly, how long will it take for each test to
run and produce definitive, actionable results?
2015 COWAN+
EXAMPLE: ENABLE QUIZ CONCIERGE MVP

Component

False?
Notes
If we create position-specific quizzes for HR managers, theyll use them ~100% of
the time and, after two positions, be willing to pay.
If the HR managers use the quiz, theyll send through <1/2 as many candidates.
If we offer the service at [x] price with [y] supplemental assistance, companies that
hire a lot of engineers will pay [z].
[quizzes administered] / [candidates interviewed]
comparison on candidates screened out (historical)
ability to sell
True: Build a simple1.0
1 & 2 True: Look at customer creation hyp., value hypothesis
False: Consider value hyp., problem hyp.
see bit.ly/exp-test

see bit.ly/exp-test

see bit.ly/exp-test
2015 COWAN+
EXAMPLE: ENABLE QUIZ ADWORDS MVP

Component
Notes
If Enable Quiz offers its quizzing solution in the area of [x], customers will subscribe.

False?
absolute click-through-rate; wed like to see >=2%

relative to CTR (on this basis well select our top 10 topics)
True (along with previous): Build a simple1.0 with selected topics.
False (all CTRs <2%): Revise customer creation plan & test an alternate topic
assessment strategy
see bit.ly/exp-test

see bit.ly/exp-test

see bit.ly/exp-test
2015 COWAN+
EXAMPLE: ENABLE QUIZ CONCIERGE MVP

Component

False?
Draft a set of experiments to verify

your assumptions
Notes
If we create position-specific quizzes for HR managers, theyll use them ~100% of

the time and, after two positions, be willing to pay.
If the HR managers use the quiz, theyll send through <1/2 as many candidates.
If we offer the service at [x] price with [y] supplemental assistance, companies that
hire a lot of engineers will pay [z].
[quizzes administered] / [candidates interviewed]
comparison on candidates screened out (historical)
ability to sell
True: Build a simple1.0
1 & 2 True: Look at customer creation hyp., value hypothesis
False: Consider value hyp., problem hyp.
see bit.ly/exp-test

see bit.ly/exp-test

see bit.ly/exp-test
2015 COWAN+
FINI
Hypothesize
Learn
Experiment
View this deck
bit.ly/sf-japan-x
Check out
Venture Design
bit.ly/vdesign
Use Customer Discovery

Handbook
bit.ly/cdhandbook
Twitter
@cowanSF
Get in touch!
acowan@alexandercowan.com
2015 COWAN+

Venture Design 1 Day Solving The Right Problem (For Japan-X

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Venture Design 1 Day Solving The Right Problem (For Japan-X

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VENTURE DESIGN CRASH COURSE

PART I- SOLVING THE

THE VENTURE DESIGN PROCESS ()

Was the implemented

How did the customer

WHY WOULD THIS CLASS BE IMPORTANT TO YOU?

WHY WOULD THIS CLASS BE IMPORTANT TO YOU?

#5: Test early, test often

#7: Learn first,

#1: Start with the

#3: Become a better

#8: Find yourself,

4. HOW WILL WE WORK TOGETHER?

source: adapted from The Design of Everyday Things

HOW WILL WE WORK TOGETHER?

Finding the Right

source: adapted from The Design of Everyday Things

WHAT WORK WILL WE DO?

Value Hypothesis &

Finding the Right

source: adapted from The Design of Everyday Things

THE VENTURE DESIGN PROCESS ()

Was the implemented

How did the customer

THE VENTURE DESIGN PROCESS

THE PRACTICE OF DESIGN THINKING

Doing precisely what

Assuming you know whats

THE PRACTICE OF DESIGN THINKING

Finding the Right

Value Hypothesis &

source: adapted from The Design of Everyday Things

THE PRACTICE OF DESIGN THINKING- WHY IS IT HARD?

THE PRACTICE OF DESIGN THINKING- FOUNDATIONS

THE PRACTICE OF DESIGN THINKING- FOUNDATIONS

THE PRACTICE OF DESIGN THINKING- FOUNDATIONS

THE PRACTICE OF DESIGN THINKING- FOUNDATIONS

A Better Mouse Trap ()

THE VENTURE DESIGN PROCESS- PERSONAS

DESIGN THINKING (): EMPATHY & PERSONAS

DESIGN THINKING: EMPATHY & PERSONAS

Bullet points are almost never

Socialize with other moms

86% said theyd like to be more

Stock photo- not real

THE ART OF CUSTOMER DISCOVERY

Mary the Mom

these full sentences look like a good

this is a real photo of a relevant

Mary the Mom

EXERCISE- PERSONA CREATION

use 1 index card/

A LITTLE GAME FOR BETTER PERSONA DISCOVERY

Day in the Life

A LITTLE GAME FOR BETTER PERSONA DISCOVERY

PERSONAS- THINK SEE FEEL DO

EXAMPLE- ENABLE QUIZ & HELEN THE HR MANAGER

PERSONAS- THINK SEE FEEL DO

EXERCISE- DISCOVERING WHAT THEY THINK

Examples Questions (Enable Quiz)

Tell me about [yourself in the role of the persona]?

Tell me about [your area of interest]?

Tell me your thoughts about [area]?

me about being an HR manager?

Draft discovery questions

PERSONAS- THINK SEE FEEL DO