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FRAMEWORK THINKING sean johnson @intentionally
Partner at Digital Intent and Founder Equity Professor at Northwestern’s Kellogg school of Management Startup Team in a box - Product, UI/UX, Development, Traction www.digintent.com Seed stage technology investors. www.founderequity.com
WHY SHOULD YOU LEARN TO
LEVERAGE FRAMEWORKS? Find out here: www.sean-johnson.com/framework-thinking FRAMEWORK THINKING sean johnson @intentionally
GTD is based on two
premises: 1. Your brain is terrible at keeping track of everything. Get things out of your head into a system, and review it enough that your brain can relax and trust your system. 1. You can’t manage projects, only actions. Your brain needs to know exactly what physical action you need to do next in order to make progress.
Collect: Have as many inboxes
as you need to collect everything as soon as it occurs to you. Get it out of your head. ! Process: For each item in your inbox, determine the next appropriate action. ! Organize: Set up a proper system for trashing, ﬁling or tracking next actions. ! Review: Create proper times for appropriately reviewing your projects and next actions. ! Do: Based on your time, energy and context, make progress on your next actions.
To collect properly, you need
as many inboxes as necessary to be sure you capture everything. This can mean a paper notebook on your desk, a physical inbox for mail, a phone for notes on the run, etc.
Set aside regular times for
processing your inbox. For each item in your inbox, use the following workﬂow, organizing them with the tools indicated. Is it actionable? NO Throw it Away File It For Reference Incubate It someday lists, etc YES Projects anything with multiple steps What is the next action? Do It anything you can do in 2min Defer It Delegate It keep a “waiting for” list Calendar date-speciﬁc actions Next Action Lists to do as soon as you can
Once everything is processed and
organized, make sure you review frequently. Review your calendar and next action lists throughout the day, and do a comprehensive review each week. An example weekly review plan is below: Get Clear • Collect loose papers and materials • Get Inbox to zero • Empty your head Get Current • Review Action Lists • Review past and upcoming calendar • Review Waiting For list • Review Project (and larger outcome) lists • Review any relevant checklists Get Creative • Review Someday/Maybe • Be creative and courageous
The obvious purpose of all
of this is to DO stuﬀ. You’ll often be doing things in response to speciﬁc calendar events, but the purpose of GTD is to make you focused and productive the rest of the time. Use your next actions list and the following ﬁlters to decide what to do at any given moment. Context Your physical location and the tools you have at your disposal determine your context. You can’t make phone calls when you don’t have your phone, for example. Time You can’t do a 2 hour task when you only have 15 minutes. Energy Some activities require intense focus and energy. You should do these when your energy levels are at their peak, and do less demanding tasks when you’re energy is lower. Priority What’s most important?
It’s critical to always keep
the needs of the customer top of mind when making product or marketing decisions. The Empathy Map is a collaborative tool for ﬂeshing out a customer’s psychographic proﬁle.
What are they thinking and
feeling about their worries and aspirations? What are they hearing while using our product, from their friends or boss? What are they experiencing as pain or fear when using our product? What are they seeing while using our product in their environment? What are they experiencing as positive or gain when using our product? What are they saying & doing while using our product in public or in private?
How to use the Empathy
Map: • Assemble your team, bringing any secondary or primary research you’ve already compiled. • For each section of the empathy map, have each team member add a thought on a sticky note and place it on the map. • Discuss the collaborative sketch, and consolidate the notes into a cohesive document.
THE LEAN CANVAS Business plans
are static and inﬂexible. Business is not. The Lean Canvas helps you go from Plan A to a plan that works. FRAMEWORK THINKING sean johnson @intentionally
Business plans change. It’s smart
to plan for change by turning your plan into hypotheses to be tested and modiﬁed based on customer/market feedback. The Lean Canvas helps you do this.
CUSTOMER SEGMENTS Who are the
customers you plan on targeting? UNIQUE VALUE PROPOSITION Why are you diﬀerent and worth paying attention to? PROBLEM What are the top 3 problems your customers have? SOLUTION How is the product the solution to those problems? UNFAIR ADVANTAGE What can’t be easily copied or bought? KEY METRICS CHANNELS How will you reach your customers? COST STRUCTURE What are your costs going to be to deliver this solution? REVENUE STREAMS How will you make money? There are 9 aspects of the business model canvas. Your goal is to identify and document your hypotheses for each box as succinctly as possible.
CUSTOMER SEGMENTS UNIQUE VALUE PROPOSITION
PROBLEM SOLUTION UNFAIR ADVANTAGE CHANNELS COST STRUCTURE REVENUE STREAMS KEY METRICS Once you’ve outlined your hypotheses, you identify which are the most risky. Ask yourself how conﬁdent your are with each hypothesis.
CUSTOMER SEGMENTS Secondary market research.
UNIQUE VALUE PROPOSITION Landing pages Tactical Paid Traﬃc Competitive research PROBLEM Customer problem interviews SOLUTION Customer solution interviews Prototypes Beta versions UNFAIR ADVANTAGE Market research Intuition CHANNELS Tactical acquisition campaigns Competitive research COST STRUCTURE Tactical acquisition campaigns REVENUE STREAMS Solution interviews Pricing page tests Competitive benchmarks KEY METRICS Competitive benchmarks Analytics Create a test for each hypothesis. Some can be done in a few hours from your computer, while others require “getting out of the building” and talking to customers.
Using the Lean Canvas: •
Turn your business plan into a series of hypotheses and plot them on the canvas. • Rank your hypotheses in order of most risky to least risky - how conﬁdent are you about each of them? • Develop a way to test each hypothesis, and implement. • Revise the canvas based on the results of your experiments. • Repeat.
SATISFIED DISSATISFIED NOT IMPLEMENTED FULLY
IMPLEMENTED MUST HAVE FEATURES Must have features are those a user wouldn’t notice if implemented, but deﬁnitely notice if missing. These must be in your product in order to be considered.
SATISFIED DISSATISFIED NOT IMPLEMENTED FULLY
IMPLEMENTED MUST HAVE FEATURES PERFORMANCE FEATURES Performance features are those the customer really cares about. They deﬁnitely notice the better you are at them. These are usually where you look for your USP.
SATISFIED DISSATISFIED NOT IMPLEMENTED FULLY
IMPLEMENTED MUST HAVE FEATURES PERFORMANCE FEATURES DELIGHTER FEATURES Delighter features are those the customer wouldn’t notice if they’re missing, but love when they see them. These create long-term customer loyalty.
Must Have Features: A milk
jug that doesn’t leak. A car that starts. Word processor that saves ﬁles. Performance Features: Simpler ﬁle sharing Free photo storage Faster Internet connection Delighter Features Free shipping Bonus item in package Amazing customer support
Using the Kano Model: •
Address all must have features. But… • Determine whether they're actually must haves. Customers aren’t always sure what they need. • Spend the majority of your time innovating on performance features. That’s where you win the business. • Look for ways to unexpectedly delight customers since those will drive long-term loyalty and word of mouth.
THE CUSTOMER FUNNEL Discover the
key levers for driving growth in a business by understanding the components of the customer relationship. FRAMEWORK THINKING sean johnson @intentionally
Acquisition: driving people to
your site from various channels. ! Activation: getting them to sign up and have a great ﬁrst experience. ! Retention: getting them to come back. ! Referral: getting them to tell their friends. ! Revenue: engaging in some form of revenue-generating activity.
Most companies focus their energy
on the top and bottom of the funnel, and don’t spend as much time or energy manipulating the middle. But the middle is where big gains can often be made much faster and for far less money.
You can improve your funnel
by working in sprints, identifying the metric you want to improve, creating experiments, and measuring results.
How to Use The Customer
Funnel: • Identify what customer behavior matters for each stage of your customer funnel. • Get baseline data, and identify bottlenecks. • Create some hypotheses for inﬂuencing the metric you want to improve. Rank by level of eﬀort, cost and potential impact. • Implement the experiment and track the results. • Repeat.
HARD TO DO HIGH MOTIVATION
According to the Fogg Behavior Model, there are three elements necessary to create behavior change: motivation, ability and the appropriate trigger. LOW MOTIVATION EASY TO DO ACTIVATION THRESHOLD TARGET BEHAVIOR TRIGGERS FAIL HERE TRIGGERS WORK HERE
Pleasure and Pain Will doing
this action bring me immediate pleasure or avoid immediate pain? ! Hope and Fear Will this action lead to a positive future outcome for me, or avoid an undesirable future outcome? ! Social Acceptance or Rejection Will this action make me more accepted in my community, or prevent me from being rejected by them? If you can suﬃciently increase motivation, people are willing to do even diﬃcult things. 6 factors you can leverage to increase motivation:
Time: Can I do this
quickly? Money: Is this expensive or inexpensive? Physical Eﬀort: Is this physically diﬃcult to do? Brain Cycles: Does this require me to think really hard? Social Deviance: Do I have to break standard societal norms to do this? Routine: Does this require me to adopt a new routine? Similarly, if you can increase ability by identifying the barriers preventing someone from taking action, you dramatically increase the likelihood of your desired result. The factors driving ability include:
Sparks: For people with low
motivation but high ability. This trigger includes a motivation- based element to increase motivation and take action that moment. ! Facilitators: For people with motivation but not ability, facilitators make the desired task easier to do in that moment. ! Signals: If motivation and ability are both suﬃciently high, you simply need to provide the proper signal to remind them to take the desired behavior at the appropriate time. Finally, by deploying the appropriate trigger at the right time, to create the catalyst that drives your desired behavior. There are three triggers you can deploy, depending on the relationship the user has between motivation and ability.
THE LIFT MODEL A systematic
framework for identifying and prioritizing conversion optimization opportunities. FRAMEWORK THINKING sean johnson @intentionally
Conversion Optimization is about more
than tactics and tips. You can change the color of your button, but without a higher level of thinking you’ll likely miss larger opportunities to improve. The LIFT Model helps you think about conversion more meaningfully.
Value Proposition: The promise you
make to customers. The most important factor. ! CONVERSION DRIVERS Relevance: Is this what the visitor thought they were going to see? ! Clarity: Is it clear what action you want them to take? ! Urgency: Is there a reason they should take action now? ! CONVERSION INHIBITORS Anxiety: Are you doing anything to give the user pause about taking the next step? ! Distraction: Are you doing anything to divert the user’s attention from the action you want them to take?
The LIFT Model lets you
look at your pages from each lens, identifying ways to remove conversion blockers and leverage conversion drivers more eﬀectively. 45.5% IMPROVEMENT
How to use the LIFT
Model: • Identify a page you’d like to improve and evaluate it using each of the factors in the LIFT Model. • Create hypotheses for improving the page using your ﬁndings. • Implement the experiment and track the results. • Repeat.