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Similarities Drive Behaviors

Recently, I watched “Four Weddings and A Funeral,” a movie from the mid-1990s starring Hugh Grant and Andie MacDowell.  While the overall story covers the two main characters falling in love, I found an underlying theme more interesting.  The question posed, early in the film, is whether someone can find their mate-for-life and future spouse at a wedding.

At first glance, this seems like an odd proposal.  As a child, I went to lots of weddings.  We lived in a small community where my dad was an influential businessman, and I had a lot of older cousins.  Weddings were boring, formal affairs – you had to be quiet and eat with the proper fork.  Further, being much younger than everyone else, no one cared to talk with me.  Very boring!

But, in “Four Weddings and A Funeral,” the wedding guests were friends of about the same age and did, indeed, find true love at the weddings.  The wedding guests shared mostly similar educations, similar incomes, and similar interests.  When you throw a crowd of people together with these characteristics, bonds are sure to form.

Customer Behaviors

As a new product development practitioners and product managers, we must recognize that our customers are like wedding guests.  They often have similar expectations which drive similar behaviors.  Our customers probably share similar needs to get a job done, share similar interests, and share similar value propositions.  It is our job to figure out these needs and turn them into beneficial features.

Traditional market research uses different methodologies to identify customer needs and to segment customers into similar categories.  These market research methods might include interviews, focus groups, or surveys.  These tools help us to convert qualitative ideas into quantitative concepts that are transformed to new products.

An Example of Similarity

Consider grocery shopping.  While supermarkets have small margins, most have successfully segmented their customers by similar shopping experiences.  There are big carts available for the customer who shops only once a week for the entire family.  There are hand baskets for customers who just want to grab a few items in a quick stop.  Finally, there are customers who send their grocery list to the supermarket and idle their car in the parking lot while a clerk loads their trunk.

Supermarkets, thus, recognize similar behaviors of these three segments of customers.  Products and services are marketed in different ways to each segment, yet individual customers within a category or segment approach shopping in a similar way.  Selling 24-packs are geared to the once-a-week shopper and impulse items at the register are aimed at the light shopper.

Similar Behaviors

Can you find your spouse and lifelong love at a wedding?  Probably, if you share similarities to the other wedding guests.  Can you market products to specific categories of customers?  Absolutely, if you segment similar shoppers.  Can you learn to identify customers similarities?  Yes, if you join me on 14 March for a free webinar on market research tools.  Register here.

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Is Agile a Digital Version of Waterfall?

I first encountered the terms “analog” and “digital” in high school physics.  While I probably remember more about the pranks my classmates played on our teacher, the terms analog and digital repeatedly popped up in my engineering education.  For those of you who had a high school physics teacher NOT named Mr. Founds, we’ll touch on the definitions of these two words and investigate how they relate to product and project management.

Analog vs. Digital

Analog – in layman’s language – means you can select whatever value you want.  Think of an old-fashioned radio tuning dial that turns back-and-forth.  As you seek a particular frequency, you first hear static, then a mix of static with the music, then the music comes in strongly.  If you turn the dial too far, you’re back in the static zone.

In Houston, I enjoy listening to 89.3FM.  With a digital device, there are exact increments, and your radio “dial” will lock onto specific stations.  So, in my car, I tune from 89.1 (static) to 89.3 (music) to 89.5 (static).  The “digital” increment on my car radio is 0.2 on the FM frequency.

Waterfall Project Management

Waterfall project management has fallen out of favor in recent years.  I believe there is a place for waterfall project management, especially in the space of tangible product development.  In general, waterfall suggests upfront planning and a detailed list of features and requirements for the new product.  Usually, detailed schedules are created during early project planning phases, with assigned tasks and resources.

Agile Project Management

While extensive upfront planning can work for projects with low levels of technical uncertainty and low levels of requirements uncertainty, waterfall fails to be flexible and adaptable to changing customer needs throughout the project lifecycle.  When the schedule is disrupted, the plan must be re-created and tasks dependent on other tasks fall behind schedule.

Agile project management promises flexibility by planning just the minimum work necessary to build a minimum set of features (often called an MVP, minimum viable product).  Teams and tasks are designed to be isolated from interruptions (dependencies).  Autonomy and empowerment are key to success in Agile implementations.

Agile is Digital Waterfall

The drawback, I believe, of many Agile implementations is a heavy emphasis on the ceremonies and artifacts of the process.  Instead of using these elements as tools to assist development work, some Agile teams use the ceremonies and artifacts in the same way waterfall teams use upfront planning tools (e.g., Gantt charts and critical path analysis).  The sprint increment in Agile becomes a set of planning meetings that could have been handled with a larger, upfront activity in waterfall.  In essence, sprints tune the radio at specific frequency increments while waterfall can spin the dial to get close to the final result.

WAGILE Product Development Meets in the Middle

Some of the equipment I used in engineering school had a combination of analog and digital tuning.  You used the digital selection to get to the right range of data (e.g., the left end of the radio dial) while you used analog tuning to get to the specific reading (e.g., 89.3 FM).  Other pieces of equipment were the opposite – using analog selection to get within range and digital selection for a specific, known incremental value.  Regardless of the device, the benefits of combining analog and digital were obvious and well above analog-alone or digital-alone.

WAGILE product development is much the same.  We use a hybrid project management model, picking the best aspects of waterfall and of Agile.  (Thus, the name – WAGILE.)  Overlaying incremental feature development with frequent customer interactions onto a disciplined, risk-balanced staged-and-gated process can lead to faster development times and increased customer satisfaction.

Learn more in the upcoming WAGILE Product Development workshop (15 & 17 February).

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Hybrid Product Development Today

Today, many of us are working in very different environments than two years ago.  A lot of people are permanently working from home (“remote”).  Others are going to the office a couple of days per week.  Still others are doing the same job, at the same place, as they have always done (truck drivers, hospitality workers, factory and assembly plant personnel).

Learning to work in a new way can be stressful, but we are also living in a time when technology helps to bridge gaps.  With video conferencing, we have face-to-face conversations with our coworkers and can easily share documents or files.  While some of us might be in a shared space looking at the hard copy, others participate equally from remote locations looking at the same electronic document.

What Does Hybrid Mean?

Hybrid, therefore, means a blend of geographical working environments, facilitated by technology.  But what does hybrid mean culturally or for our work processes?

Unfortunately, as “Zoom fatigue” is a real symptom of work burnout, we know that our hybrid work cultures must adapt.  It is a very different atmosphere to welcome a new employee to your campus and to show him around the office building than it is to dive into work tasks as the new employee logs onto her first meeting.  Trust, especially emotional trust, is critical to tackling higher risk tasks and projects.  And, trust is hard to build in a hybrid culture.

Consider converting five minutes of each meeting to team-building.  Use the time to create social relationships with your hybrid teams.  Talk about sports, hobbies, or travel.  You want to generate a culture that shares openly and will lead to trust.  Sharing personal life interests alongside our professional engagements supports relationships among team members.

Our processes change in a hybrid work environment, too.  We no longer have quick hallway conversations.  Instead, we hold scheduled meetings and discussions (lots of them!).  Hand-offs and transfers of tasks between functions and departments are more complicated, especially if the receiver does not have the appropriate project background (why, how, when).  Shared files and chats can help to facilitate processes.  Even better, document your workflows, roles and responsibilities, and follow the agreed-upon processes.

Creativity in a Hybrid World

While relationships, culture, and processes are manageable in remote and dispersed work environments, creativity becomes even more challenging.  Again, tools are available for us to use technology, to share ideas, to capture concepts and activities, and to interact with fellow team members and customers.  I recommend using a facilitator to help your team focus on the work instead of the ever-changing technology.  A group like MAFN (Mid-Atlantic Facilitators Network) can help you find a skilled technical facilitator.  In that way, you can capture creative ideas, without interrupting ideation.

Finally, our approaches to creativity in a hybrid world must take advantage of all we have learned to generate ideas within teams over the years – regardless of technology.  Join me starting on 11 February for a special-request, three-part Creativity Master Class.  Register here.

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Innovation Project Planning

Project planning is a best practice.  We all plan big projects at work that involve construction or R&D effort.  We create project plans when there is a requirement for integration of many functions and the coordination of multiple tasks.

Types of Project Plans

Traditionally, project plans are created based on the scope of work.  We estimate the tasks necessary to complete the project and calculate the duration of each activity.  Next, we assign resources by function and name to each task.  The output is a pre-determined project plan with a critical path of tasks and expected resources that show how quickly the project can be executed.

In an Agile framework, project planning uses progressive elaboration.  As in traditional project planning, we determine a list of requirements upfront.  However, in Scrum (the most common Agile implementation for innovation and tangible new product development, NPD) we determine product features necessary to satisfy the end-user’s application.  A rank-ordered list of features prioritizes project execution based upon developing the most important features first.

Scrum estimates are usually relative and compared to tasks with known duration and cost.  For example T-shirt sizing (small, medium, and large) is a common way of estimating Agile projects.  In this example, relative sizes are based upon known standards and each feature development is estimated relative to that standard. 

Visualizing the Project Plan

In traditional project management, the output is typically a Gantt chart showing task relationships and duration.  The critical path represents all tasks that must be completed on schedule to prevent the entire project schedule from slipping.  These tasks are often resource-constrained, as projects rely on experts to do specialized product development work.  In other cases, vendor-supplied equipment and customer use tests can be limiting factors.

In Scrum, the project schedule is not usually illustrated as a whole.  A product roadmap shows major feature releases for the product, often in conjunction with other products, services, and applications.  Task level planning is done by the team using the prioritized feature list.  Team members score the difficulty (and duration) of tasks needed to complete a specific feature.  A technique called “planning poker” helps the team reach consensus on the “size” of these tasks (e.g. relative sizing of small, medium, or large).

For operational work of the NPD team, a Kanban board (sometimes called a Scrum board) shows tasks assigned to the sprint.  As work is completed during a Sprint, a symbol of the task (usually a short description written on a sticky note) is moved from columns on the Kanban board indicating workto-do, work-in-progress, testing, and completed.

At a higher level, all of the “story points” or scores of the relative estimates for product design are added.  As each feature is completed, its score is subtracted from the total.  Thus the “burndown” chart shows an estimate of work remaining in each Sprint.  The burndown chart may be used in conjunction with the Kanban chart or these tools can be deployed separately.

Adjusting the Project Plan

Of course, no project plan is accurate or perfect.  The minute we put pencil to paper, the schedule is apt to change.  In traditional project management, a Change Control Board reviews major project changes according to the advice of the project manager.  In Scrum (Agile), changes to the project scope are expected, resulting in the iterative nature of the system.  Tasks not completed in one sprint are added to the “backlog” of the next sprint.  This is reflected in a lower-than-planned burndown rate as well as increased work-in-progress on the Kanban board.  NPD teams must be concerned if this backlog is too high.

Planning Projects

Innovation projects, construction projects, and engineering projects all require planning.  We must anticipate the requirements, the schedule, and the cost.  These estimates help decision-makers and project leaders determine investments and to assess tolerable risk levels.  Project plans indicate whether a project can achieve benefits that outweigh costs.

Consider the following elements as you plan your next innovation project:

  • Scope of work,
  • Number and complexity of features,
  • Necessary tasks and activities to do the work,
  • Resources available and skilled to do the work,
  • Realistic project schedules indicating duration (not just effort) of each task,
  • How to assess changes, and
  • Risk management.

Learn More

Project planning is foundational to effective project selection and should be directly linked to Product Portfolio Management for innovation work.  Please join me starting 7 February 2002 for a once-per-year unique opportunity to apply 100 Days to Effective PPM in your teams.  Register here.

If you’re interested in learning more about hybrid project planning (traditional waterfall blended with Agile/Scrum), please join me for WAGILE Product Development on 15 and 17 February 2022.  Register here.

2022 Word of the Year

As my regular readers know, each year I choose a word to guide me.  The word must be motivational yet provide constraints against unreasonable risk.  My word of the year also must apply to all aspects of my life – professional and personal.  Recently, I reviewed my 2021 word of the year (willingness – read more here).

For 2022, my word of the year is (drumroll, please) … commitment.  One of Dictionary.com’s definitions for commitment is “a pledge or promise”.  Another is “dedication”.  There are, unfortunately, some definitions I will choose to ignore, such as criminal actions and assignment to a prison or mental hospital.  I certainly hope those things don’t happen in 2022!  However, with the strange political uncertainties from the past two years who knows?

Pledges and Promises

in 2022, I hope to accomplish many things in my business (www.globalnpsolutions.com).  Sometimes, I find myself struggling to meet tight deadlines or strategic goals.  Sometimes, the day-to-day gets in the way of my ultimate vision.  Thus, I hope that “commitment” allows me to focus on the end goals.

Pledges and promises are stronger, I think than goals.  That’s why commitment is important.  We are taught (for mental health reasons) to forgive ourselves if we don’t meet our highest goals and aspirations.  After all, these are hopes and dreams, maybe not to be taken too literally.

Yet, a pledge means we will see the thing through to the end.  A promise is NOT to be broken.  In this way, commitment means finishing what was started.  In my personal life, this definition of commitment will help me a lot – I am committed to finishing projects that I have started.  (One example is to finish cleaning out my craft room to donate excess supplies!)

From a professional standpoint, I pledge to offer my whole self and to give the best experience to my clients as possible.  My “To Do” list seems to a mile long permanently, but if I concentrate on the important (not just urgent) tasks, these items can be completed, too.  Perhaps, you can help me be accountable to finishing a couple of the requested online tutorials for innovation management.  Let me know which topics are the highest priority to you!

Dedication

The definition of commitment that focuses on dedication rings true for me as I look forward to the new year.  Interestingly, the word “willingness” probably gave me too much freedom in 2021.  While it’s important to be willing to try new things and to use failure as learning, it’s also important to have dedication and focus.

A lot of self-help and productivity books discuss habits as a way to improve focus.  In 2022, I have laid out a schedule for each weekday that includes focused tasks – work, fitness, and household chores.  A commitment, or dedication, to a repeating schedule can help a person become more efficient (I hope) and complete more of those lingering “To Do” list items.  For years, I have also religiously kept a calendar recording the time I spend on each task during the day.  This helps me to dedicate the right amount of time to a future, similar task with a realistic estimate.  Check out my Daily Creativity Journal which includes a five-day calendar for building creativity habits here.

Tying Together the Words of the Year

As I mentioned in my 2021 review, some of my past words of the year were outreach and economical, along with the most recent of willingness.  Combining these words is a pledge of my values – a commitment both professionally and personally.

I am committed to continue focusing on growth as a product innovation leader by reaching out to customers and clients to learn their needs.  In this case I apply typical lessons learned so I can find out what worked, what didn’t work, and what can be improved.

I have been and I will continue to commit to being economical.  My core belief is we have too much “stuff”.  Asking myself whether I really need another business book (a bad addiction of mine) or more craft supplies (another bad addiction!) before I buy them can help me be dedicated to an economical and minimalist lifestyle.  The same is true of collecting too many apps on my cell phone.

Finally, I commit to be willing to learn and try new things.  However, in 2022, focus on similarities will outweigh broad brushes of change.  Habits and schedules can guide productivity without compromising a willingness to take acceptable risks.

2022 Word of the Year

I’d love to learn what word you are choosing to guide you through the new year.  Share it with me in the comments or email me at info at globalnpsolutions.com.

My Commitment to You

My first commitment to the product innovation community is to offer the highest quality product portfolio management (PPM) class you can find.  In 100 Days to Effective PPM, you will learn the theory and then apply the tools to streamline your own product portfolio.  You must have willingness to learn, be economical in the active project set, and use outreach to fully determine customer needs.  Learn more and commit here.  Our 100-day journey starts on 7 February 2022!

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Project Management Skills

Recently I moderated a panel discussion for my local PMI® (Project Management Institute) chapter.  I wanted the questions to be engaging for both the speakers and the audience.  Of course, we started with the prerequisite “Who are you?” and “How did you get here?” questions.  The other questions, I hoped, inspired learning – especially for new project and portfolio managers.

In no particular order, here are the questions the project management panel in Coastal Bend Texas addressed.

Lessons From Failed Projects

Projects fail.  For many different reasons, projects fail.  Product innovation professionals know more about failure than other project managers because there are a lot of uncertainties in new product development (NPD).  The best view, I think, is to treat failure as a learning opportunity.

Projects fail – normally – in several arenas.  Poor planning results in too few resources committed to the project.  Not enough money can result in poor quality outputs.  Not assigning the right people to do the work can result in delays.  Not understanding the final product of the project yields a mismatch between technologies and markets.

Effective project planning requires addressing the triple constraint upfront, regardless of your preferred project management system.  The scope of the project must be achievable, while the budget and timeline (schedule) must align with the stated goals and objectives of the project.  For NPD projects, the scope must also align with the innovation strategy.  (Read more about strategy here.)

Living Life Backwards

Another question for the project management panelists was to think about what they would change in their younger selves if they lived life backwards.  This is a bit of a rift on my presentation to the University of Washington graduate students earlier this year (read more here).  We gain wisdom with years and (hopefully) would advise our younger selves against stupid mistakes.

One area of importance to project managers and portfolio managers is communication.  Wisdom brings clarity to our communications.  Project managers must communicate to several different groups of stakeholders with different needs.  Team members need to know what to do and when.  Some inexperienced team members might need to learn “how” to do certain tasks.   The project management leader serves as a mentor for the team.

Other stakeholders are interested in the overall progress of the project, the money spent, and expected completion.  In product innovation, our customers are involved in testing a product features and marketing collateral.  Yet other stakeholders are internal customers, needing manufacturing specifications and quality standards.  Communicating with each group necessitates a different level of detail.

In addition, communications may be synchronous or asynchronous, meaning some information must be discussed and debated face-to-face while other data can be provided without a lot of explanation.  High performing project managers and portfolio managers utilize the type (synchronous or asynchronous) and format of communications to match the needs of their stakeholders.  This is learned only through wisdom that we gain by experience.

Certification

Finally, another question for the panelists was how their various firms view certification.  Since they were speaking at a PMI meeting, support for the PMP® (Project Management Professional) certification was high.  However, product innovation professionals also benefit from New Product Development Professional (NPDP) certification, which is more encompassing of innovation than PMP.  Learn more here.

My personal belief is that certifications have become almost as important as university degrees.  However, there are a lot of different certifications from which to choose.  What’s important in certification is to have an educational component to validate knowledge and understanding of the field.  Another important component is testing and continuing education.  All industrial fields are continuously changing with emerging best practices.  Having a continuous education component ensures that industry practices overlay academic theories.

Summary

Many project management skills are strategic and relational.  Of course, it’s important to know how to create a balanced and integrated schedule and budget.  But it’s also important to value learning and communication, especially for portfolio managers.  Oftentimes we miss opportunities to learn from failure yet project managers, especially those working on innovation projects, must be willing to learn to grow.

Wishing you all the best in the new year.  Please contact me at info at globalnpsolutions.com if you want to learn more about managing new product development projects.  We are also offering our limited, once per year course on portfolio management – 100 days to Effective Product Portfolio Management.  Learn more here.

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A Division of Global NP Solutions, LLC  

Study.       Learn.       Earn.       Simple.

Being Busy

“Busy.”  That has become the American answer to “How are you doing?”  I recently saw a videoblog where they described the two categories of people who are busy.  Low to medium self-esteem people say they’re busy because they want praise from others.   They are doing work for other people and seek reassurance.  Mid to high self-esteem people, he said, are busy because we want to show our work to others by accomplishing much.

But are we really all that busy?

In another post I have written about waiting.  (Read about Waiting and Creativity here).  Many of us consume all our free minutes looking at our cell phones.  Some play games, some read Facebook, others check stock prices, and still others do email.  Yet is that really busy?  Can we use that free time for something else?

Time-boxing in Scrum

One of my favorite tools for managing time, schedules, and busy-ness is time-boxing.  This method is borrowed from Scrum Project Management.  In Scrum, activities are routine and repeated within pre-specified blocks of time.  (Read about Scrum for Product Management in a blog here or in Chapter 3 of The Innovation ANSWER Book, 2nd edition.)  The iterative nature of sprints (time-boxes for doing work in Scrum) help to accomplish more with less “busy-ness”.

For example, in a 2-week iteration in Scrum, the team will meet for 4-hours at the start of the “sprint “ to plan and prioritize work tasks.  Each workday starts with a 15-minute “stand-up meeting”.  At the conclusion of the sprint there are 4-hour meetings to review the work and outputs of the sprint, and to conduct a lessons learned review (called a “retrospective”).

Time blocks in Scrum are sacred.  Work should not take longer than scheduled, or else the planning was poor.  With each iteration following the same pattern, a clear flow of work is established.  The work habit becomes ingrained in team members so that productivity improvements naturally occur over repeated sprints.

Of course, sprints are not perfect.  Surprises in technical development and product design occur so that tasks are not completed in the allotted time frame.  These roll over to the next iteration as “backlog” but the number of new tasks for that next sprint are reduced to keep the work manageable.

Scrum teams are busy but they are doing business not just busy-ness.

Time-Boxing for Innovation Leaders

Innovation leaders and product managers can use the idea of time-boxing to improve productivity as well.  The idea of following habits to establish flow is recommended in many, many self-help books.  Habits reduce our decisions and preserve our high-level brainpower for more important tasks.

A good habit is to keep the things you need for each day in the same place.  I have a “purse” table where I store my purse, car keys, and gym bag.  I don’t have to waste precious time in the morning searching for a required item.  Another habit I follow is to select my clothes for the next day each evening.  I put my clothes in the bathroom next to the shower, so I don’t have to make a decision early in the morning.

Time-boxing is a habit for your schedule and can free up “busy” time.  For instance, checking email is a low brainpower activity.  If your inbox looks like mine, there’s only 5 to 10% of email that matters.  There are interesting and educational newsletters to read (like this one!), but there is also a lot of junk.  I time-box email for mid-morning so that I can save my early morning focus for critical work.

You can also use time-boxing for managing innovation projects.  Using a tool like planning poker helps the team to estimate task durations.  Retrospectives, post-launch reviews, or lessons learned conducted at the end of each iteration provide immediate feedback on what to improve for the next phase of work.

Note that if you are using a traditional staged-and-gated process for managing innovation projects, you should still conduct routine lessons learned reviews.  Schedule an extra hour for each gate review and answer these simple questions.  (Read more in Chapter 3 of The Innovation ANSWER Book, 2nd edition.)

  • What was done right?
  • What was done poorly?
  • What can be improved?

While some of your team members may change as you scale-up design and development work for new product development (NPD), the people that stay with the project team will incorporate these learnings as habits and best practices.

Are You Busy?

Being busy really means consuming time – a very precious resource.  I prefer to think of being busy as being productive.  Whether we are low-esteem or high-esteem people, our goals in busy-ness are to create positive change.  Innovation leaders are in a unique position to create change through products, services, and applications.

Do you want to reduce the busy-ness of your product development teams?  Make sure they are working on the right things!  Learn how by joining me for the special PPM in 100 Days workshop starting 7 February 2022.  This intensive, customized, and real-world workshop is only offered once a year.  Feel free to contact me at info at Simple-PDH.com for more information.

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A Division of Global NP Solutions, LLC  

Study.       Learn.       Earn.       Simple.

False Signals

Our apartment has faulty smoke detectors.  Ghosts seemingly set off the smoke detectors during the night and wake us up to shrill beeping.  The smoke alarms are interconnected to the fire alarm system and operate with a complexity I have never seen previously.

In all the other places I’ve lived, when the smoke alarm battery is low, it emits a soft beep with a relatively low frequency.  When the batteries are low in these smoke detectors, there is a full alarm.  There was only one time that the alarm went off when it was not the middle of the night.  Ironically, I had laid down to take a short nap!

Clearly, with no fire and no smoke, the smoke detectors are giving a false signal.  The first time it happened, I stumbled out of bed, grabbed my shoes, and ran to the hallway trying to figure out what was burning.  Now, I’m (unfortunately) conditioned to shrill beeping every couple of months that awakens me.  Instead of reacting to a (potential) fire, I try to figure out which smoke detector has a bad battery.

Customer Insights

As Product Development Professionals, we often get false signals from our customers and innovation teams.  When we present a concept to potential or existing customers, we are trying to understand and gauge their interest in a new product or feature.  We want to gather their feedback to signal whether we advance or kill the project.

Yet, we can get false signals from customers.  By our nature as human beings, we want to please others and to not hurt their feelings.  If we present a new concept and excitedly ask, “How many will you buy,” the potential customer might give us feedback to please us without an honest assessment of the product idea.

Instead, our customer inquiry must be neutral.  We might ask the potential customer to describe a situation in which they would use the product or feature.  We can ask if they’ve ever encountered similar products.  We can observe how customers interact with prototypes.  In this way, we can collect valuable customer insights that truly reflect customer feelings and attitudes.  While this information is primarily qualitative, we are avoiding false signals.

Team Feedback

Our own innovation teams can also be hindered by false signals.  Confirmation bias is a phenomenon in which the data we collect verifies our previously held beliefs (whether true or not).  In the past two years, we have seen (sadly) many examples in which data and opinion were conflated along with a confusion of science and politics.  Innovation teams may be so enamored with a new idea that confirmation bias leads them to skew data more positively than it should be analyzed.  (Here’s another post on Competitive Analysis that discussed confirmation bias.)

Management Influence

Product innovation managers also play a role in acting upon and creating false signals.  While we are all taught to ignore sunk costs, this is easier said than done.  While we are designing and developing new products and features, the investment increases.  People, money, time, and equipment resources are committed and used for each project.  And the commitment (and investment) grows as the new product development (NPD) project advances from the idea stage to technical development and prototyping.  It is hard to stop the momentum of a project – even if it is a bad one.

Interpreting False Signals

So, what can you do?  As product innovation professionals, we must be aware of how we interact with our existing and potential customers.  We need to have frequent touchpoints during product design and development, yet we want to observe and not direct their actions.  Testing multiple market segments under different conditions and in various geographical locations can help to ensure unbiased feedback.

When working with teams and managers of innovation, be aware of the “most beautiful child” syndrome that sends false signals.  Every parent (and grandparent) believes their child is the most beautiful, talented, and wonderful creation ever to have existed on earth.  Obviously, this cannot be true.  Take a step back and check if your team has inadvertently fallen in love with their design.

Likewise, managers must truly look at and compare the go-forward costs to launch a new product.  A product full of wart and quality issues should not be launched.  If customers don’t want – or need – your idea, it’s not a good idea at this time.

Product Portfolio Management

Product Portfolio Management (PPM) is a structured methodology to examine and prioritize new product projects.  Early ideas are scored on a generic scale indicating fit with strategy, customer need, and manufacturing capability.  More advanced NPD projects are compared by sales and financial metrics.  How many units do we expect to sell?  What is the expected revenue?  What is our profit margin?

Learn More

To avoid false signals, you must be willing to judge each NPD project neutrally and honestly.  Learn how to rank, prioritize, and select innovation projects in our special, intensive workshop PPM in 100 Days.  The workshop starts 7 February and lasts 15 weeks (100 days!).  This workshop is tailored to your needs and is only offered once per year.  Contact me at info at Simple-PDH.com for more information or Register here.

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A Division of Global NP Solutions, LLC  

Study.       Learn.       Earn.       Simple.

Throw it Away

When I was young, freshly out of college, I love to collect t-shirts of places I visited.  I didn’t own many clothes and it was a lot of fun to choose a cute, new shirt.  When I wore my t-shirts, I hoped everyone would notice that I had visited Yellowstone or Paris.

After a few years, my closet was stuffed.  Now, I wear many of those once-special t-shirts to the gym, where they end up sweaty and stained.  The memories of the vacation are still valued, but the t-shirt is dated and worn-out.  So, I take these old, worn-out shirts on vacation with me now.  And, after I wear them – one last time – I throw them away.  I also throw away socks with holes in the toes, faded pants, and shoes with the soles worn thin.

As a product manager or brand manager are your products like my t-shirts?  Dear customers still flock with glee to select your products?  Or are they second-rate, stained, and ready for the dustbin of history?

Revamp Your Product Portfolio

All product innovation professionals should be using a product portfolio management (PPM) system to manage existing and new products.  PPM allows management to evaluate products based on customer value and profit.  Remember that products go through a predictable life cycle, so you can monitor when sales are in decline.  (Read more about the product life cycle here and in The Innovation ANSWER Book, 2nd edition.)

Many organizations fail to recognize when a product is in decline.  Yes, I know there is a small pinhole in my t-shirt, but maybe no one notices it.  Unfortunately, that pinhole grows until you could stick a pencil through it.  Are your products starting to show their age?

Throw Them Away

You have two choices when products age.  Like my t-shirts, you can throw them away.  Sometimes, this is absolutely the right decision.  Products that demonstrate declining sales volumes (e.g., number of products sold or percent market share) and for which technology has outgrown, must be thrown away.

This is a tough decision for companies.  Many times, we build our personal identification as a successful engineer or marketer linked to the development and sales of a product or product line.  The design holds special memories, and our teammates were like family during the development project.

Yet, the old product must go – just like my whole-y, stained, t-shirts.  Just like there are a dozen more t-shirts in my closet, you have many, many product concepts to replace the old one.

Revamp

A second choice for PPM is to revamp the product.  This means the firm will invest R&D resources (time, money, and people) to create a next generation product.  You must fully understand your customers and market before taking this step to revamp the product.  Do they really want an updated product or has something else replaced it with newer, better technology?

So, my Zion National Park t-shirt is old and worn-out.  So are many other T shirts from travels years and years ago.  But my closet is stuffed.  I have revamped my souvenirs of happy vacations and now I choose socks instead of t-shirts.  (I’m not sure what I’ll do when my sock drawer is full!)

Product Decisions

All products – existing or new – require a set of decisions to continue selling, discard, or revamp.  The tools of product portfolio management can help product innovation professionals make these choices.  PPM presents evaluations for customer interest, business value, and technical fit.  Data-driven product decisions help to eliminate emotional attachment to a fond, old idea (or t-shirt).

Join me for PPM in 100 Days starting on 7 February 2022.  We only offer this deep-dive master class once a year.  Contact me at info at globalnpsolutions.com for more information.

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What is Innovation?

Click on the image to watch a short summary video, then read on!

Innovation is one of the most over-used buzzwords of today.  I wrote about this previously in 2013!  (Read Introduction to Disruptive Innovation here.)  Yet, innovation – as a word – continues to be bandied about as a solution to all problems but also as a mysterious, perhaps magical, process.  In this post, I hope to break down the word “innovation” to a set of practical and actionable steps that help businesses accomplish growth without all the hype.

New Way of Doing Something

Innovation encompasses a new way of successfully doing something.  Note the specific use of the word “success”.  If we try a new way to do something and it fails, we are learning but we have not innovated.  Failing is part of the innovation process, yet it is not the end goal of innovation.

Process innovation often involves new ways of doing something.  In manufacturing, we might be able to skip a step by combining forming and assembly or by using pre-printed packaging.  These actions are usually considered “cost-saving”, but when we involve a new way of executing the action, it is clearly defined as a process innovation.

We also see product innovations and perhaps these are the more common goal of corporate innovation programs.  New product development (NPD) is a subset of innovation in which we design and develop new product innovations.  Again, the new product is helping consumers and end-users “do something in a new way,” but is focused on tangible features and product attributes. 

In recent times, product innovations have begun to incorporate the changes and additions in software code.  Almost all tangible products also include software in some capacity.  Coding introduces changes in how a product (hardware or software) functions, and thus, can be innovative.  However, we must be very careful to not confuse bug fixes as “innovative”.  End-users don’t want mistakes in the product in the first place, so a bug fix is not adding value.

Social and Political Innovations

Some innovations cause us to do something in a new way because society expects it or because government regulations restrict the old way of doing something.  As an example, the US Government restricted the sale of incandescent light bulbs a few years ago.  Consumers were certainly not clamoring for a new way to light their homes, especially since incandescent light bulbs are cheaper than alternatives.  Yet a change in government policy forced to change in behavior; this defines a “political innovation”.  Such innovations may not add value to either the consumer or producer but are necessary for the business to sustain itself.

Adoption of New Technology

Many process and product innovations result from the adoption of new technology.  Advances in technology allow producers to manufacture goods in more cost-effective ways and to add features to products.  Technology allows processes to become more efficient, so that manufacturers can make products with fewer quality defects and at increased rates.  Technology has served to stimulate innovation significantly.

For instance, computer-controlled manufacturing processes allow assembly lines to move at a quicker pace.  Technology, such as lasers and cameras, can evaluate quality of products during manufacturing without the cost of destructive testing.  Increased resource utilization by managing the supply chain and distribution with technical innovations also result in cost-savings shared between consumers and manufacturers.

Application of New Knowledge

Finally, innovation involves the application of knowledge to new situations as well as the growth of knowledge.  When we apply a solution from one domain to another, by transferring knowledge, the result is innovation.

One of my favorite examples of innovation from new knowledge is Velcro.  Legend has it that the inventor studied lizards and other critters that creep and crawl in vertical surfaces.  Transferring knowledge of how their little feet are able to “stick” to these surfaces allowed him to conceive a new way to attach two items together.  What knowledge are you holding that contained a product or process?

Defining Innovation

Innovation is a new way of doing something by application of technology or knowledge to improve a process or product in such a way that it adds value for both the end-user and the producer.  Innovation is a new way of doing something but that “something” doesn’t have to be radical or unique.  Transferring our knowledge and experience between and among industries often leads to a new way of doing something.

Do you want to learn an effective process for design of innovation?  Join me, starting on 1 December, for the by-request Creativity Master Class.  Register here.

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A Division of Global NP Solutions, LLC  

Study.       Learn.       Earn.       Simple.