More Musings on Design Thinking

Warren Berger from the Harvard Business Review blogs posts a really good article:

http://blogs.hbr.org/2010/07/the-four-phases-of-design-thin/

He contrasts the lessons which we could learn from designers and I try to extrapolate that thinking into Business Analysis. Because, I feel, we as Business Analysts are facilitators for such discussions within our projects and programs.

The four lessons are:

1. Question
2. Care
3. Connect
4. Commit

These are great and I strongly recommend reading the post as a starting point to pursue in the direction of design thinking. Coming from Agile world of software development, we are all involved in product development day in and day out.

One key take away from the design thinking is shift focus from the product to creating new experiences and beyond to new organizational structures and environment. One of the key attributes of design thinking is ‘collaboration’. Hence, in our product development construct, the design thinking should be encouraged by Business Analysts. They should not only confirm the requirements from the end-users but also by all the relevant stakeholders committed in the initiative to change.

And while we do that the first two points should be embraced in its entirety. “Question and Care” I have tried in current assignment. Challenging aspirations. Questioning beliefs and ways of working for last 10 years. I realized in the process that we were trying to address a non-existent problem by way of product development. For some of the end-users the answer to all the pain-points is not a new product development, however, a simple process change! 

The care element is not new but is typically stated as "Trusted Advisor" for Business Analysts and project management consultants. Either way, I like that the empathy element is very important. It tells us that as Business Analysts, we should not just understand the issue but to empathize with the current pain points, what the customer is not receiving, or the history of events that led up to this point. Considering our closeness to users, we are well equipped for this job. We should be the front line for customer care. Empathy based requirements gathering should be core. Having requirements gathering has many other aspects, but the point is, this can be an important factor in consideration.

Connect is critical as well. If you delver a product that is unusable or is not as desired your customer will not use or will not get the right level of adoption you are looking for. As Business Analyst; we need to sniff these issues out. If product is unusable, we should present the analysis to stakeholders for taking a decision on the future course. Again think from user angle (Empathy). Commit equals credibility. This is all about agile delivery of frequent deliveries for rapid feedback. This is where Agile processes like Scrum fit well.

On a personal level, I feel what we can achieve using this way of thinking is phenomenal. The debate goes further into the differences between finance oriented thinking, where shareholder value is most important, and design oriented thinking is as the article suggests more people, solution, emotion oriented thinking. And as always, is there a middle ground?

Experience of Conducting Analysis workshop using Design Thinking

Last month, I was tasked to conduct a workshop for a trading operations team for an Energy company. The task was to come up with various scenarios for improving the efficiency of operations leveraging technologies. I decided to explore design thinking as a way to conduct the workshop.

If you want to know more about, design thinking, please check out:

http://en.wikipedia.org/wiki/Design_thinking

For ideal workshop in design thinking, it is recommended that define and research phases of the process should be thoroughly conducted in advance of workshop day. The workshop should be focused solely on presenting the findings of define/research & ideation.

To conduct the define phase I used the following:

1.        Interview with operations team (identified team)
2.        Researched the documentation
3.        Shadowed employees who are identified as product ambassadors

The output of this phase was a three point problem statement. I made initial validation of this problem with the team.

The research phase was based on past experience and past data. I built various scenarios in the form of user journeys on how the operations take place. The different user journeys and scenarios presented with situations on where efficiency improvements can be spotted.

Based on these journeys, I elaborated on what are the user motivations and needs. Ref: http://en.wikipedia.org/wiki/User_journey

This was followed by an ideation phase. After the ideation, we finalized on top three things to focus for innovation in improving efficiencies. We concluded to transactionalize document storage and management.

This was later put into prototype phase for quick user feedback and execution of the idea. Throughout the process, ensured the business change aspect for better adoption of the idea.

My strong recommendation to use this design thinking for workshops. This would be especially useful to cut through some of the stereotype solution formations. 

A software product start up

Last week I went to product enclave by NASSCOM and met some amazing people. Almost all of them oozing energy to discuss the ideas they have for their respective products. It got me into thinking, how can they be sure, that this product is going to succeed. In my interactions where I asked pointed questions, I found, some had the answers. Well others also had the answers :), but I was not really convinced. It got into searching for a framework to determine market size of the product. The question is also pertinent in the light of many indian IT firms trying to get into the space of non-linear growth by investing heavily in products, platforms and solutions. I am sure, everyone would be having a framework, I thought assimilating this information from various sources. Please comment, will refine based on our discussions.

To my mind, this is a case for Five Cs.

Here are some points adjusted for the unique dynamics of the start-up environment.

 

Character

How would you evaluate the sincerity, honesty, and integrity of the owner of the business? Do others that they deal with (employees, suppliers, customers) value them as partners or are there character issues?

Are there any legal actions pending against the business?

Does the mission of the start-up make sense? Is their business concept sound?

What is the timeline/progress of development, coding, testing, and production as originally conceived in the business plan? Does it make sense?

What is the previous track record of each of the principals of the startup?

Capacity

What is the plan for producing the product when the code is ready? Is outsourcing stamping, packaging, and shipping an option?

Capital

What is the makeup of the initial seed capital to start the business? Personal assets, small business loan, venture capital funds?

What is the debt structure like if it exists? Interest rates, due dates, rollover ability, secured assets, etc.?

(more of this case on next page)

Collateral

Have any patents been applied for? What is their status?

What has been done to protect the intellectual capital/property associated with the software design?

Conditions

Describe the market space the business occupies. 

Why did the business come into inception?

What defines dominance in this market? Cost? Economies of scale? Speed to market? Relationships with customers? Where does this business fall against the aforementioned metrics?

Is the market for this type of product saturated? Is there a particular unfulfilled segment where this product fits or will it be competing against other already established products?

What is the advertising and promotional activity planned for this product? 

Deciding on technology

At the coffee table today, we were discussing how should a company decide to invest in a new technology. How it should align with business strategy of a company and here it is a study framework to decide the same.

So for the purpose of this blog, let us assume that a bank is coming to you for consulting engagement to decide on embarking on a technology change. The change will cost the bank close to $ 50 Million. Now that is a lot of money, bank is asking us, should we do this or not?

Before we start creating hypothesis about whether this is a good idea or not, we have to understand the reason for this technology change. Is it the case that, this will help in gaining more market share by increasing customer base? or is it just a technology change due to support termination of the current technology? Nail down the reason and build this in the part of the hypothesis.

Ultimately, this exercise should lead to a basic NPV analysis. For that we require cash flows. The next question is how to reasonably determine cash flows. The answer would be to investigate the situation in the form of 3 Cs customers, competition, and company. So if the hypothesis is not to go ahead with the technology, factor in the the possibilities whether the customer base will be shrinking or not, that the competitors for the smaller number of banks were huge and low, low cost providers, and that the companies cost structure and particular strengths would keep them from being competitive with larger players no matter how much they invested in technology.

This is not a an elaborate framework, just a guiding tool for the study!

Thoughts?

Why it is not what you hear & see and more? A tale of an organization

Off late, we have been hearing a lot about one of the best companies not doing so good in the recent quarterly performance. Although numbers are always right, but there is more than what meets the eye. I don’t know why but having associated with “her” for more than 6 years, I am saddened when people spit comments based on reading few articles or news flash. I feel it is my moral responsibility to clean up a few facts and present the positive picture which is just and plain based on facts!

So the way I approach this is by thrashing a few arguments upfront and I will try to remove my emotions and will be as objective as possible.

The number one point is about guidance. For people who would not be familiar with it, it is a forward looking statement about the pipeline of work which is supposed to come. Now this is a company which is based on the principle of stating upfront what they are going to achieve in next 3 months to one year. This is a regular practice for 20 years now. Also, this is the company which goes first to state upfront what they feel is there state of business. It takes balls and nerves of steel to predict and that too predict first. The guidance may be low, but at the end of the day it is guidance and the company has a reputation of beating it year after year barring few instances in recent past. Does it mean, it has lost its sheen? Well, few quarters are not enough to pass judgment in business. Anyone who is an entrepreneur will know this; the labor and changes take time to sink in.

So what all changes are expected?

Barney Stinson will say “India’s performance in outsourcing business is legend..wait for it dary”. So what was getting outsourced: Tech support, voice calls, programming and what not? Things are being delivered at much lower costs and efficiently. I know, this will raise a few eyebrows on about efficiency, but the argument will be this business is on for more than 30 years and business houses are finding it efficient. Now there is a simple rule of economics, the marginal utility. Utility on Y axis being programming and voice and other mundane outsourced stuff and Time on X axis. Over time, the utility will be stagnant. That is precisely what is being observed. The utility of writing code is not growing exponentially as it was happening few years back.

Having said that what is the best way for the company to grow? The idea should be to grow in areas where there is more utility in terms of outsourcing. In IT terms it is calling consulting. Why consulting and not anything else? Because it has the ability to strike where the business needs are: Solving business problems. Now why the same growth can be predicted for this?

When you are running a business, you have two kitties. One which you will spend on your mundane stuff. Stuff without which you will not be able to survive. You cannot survive if your application is not being maintained. You cannot survive without your call center support. So this kitty is the money for your usual needs. Then there is another kitty which is termed as “futuristic”. This is something which you will use for creating the future. Setting the future direction and you will hire consultants to make decisions for you. Now in depressing times like today, you will forget you have a futuristic kitty and you will focus on “Mundane” stuff squeezing every penny to get your work.

The futuristic kitty is something which is discretionary and you can’t get a full forward looking view in tough times. It is hazy and hence unpredictable. Having said that why leave something which is predicable to something so unpredictable. Below table gives the answer. All numbers are in the scale of 1 to 10. 10 being the largest.

Now there can be bias and inherent flaw in assigning values to this numbers, but this gives a drift of thinking. Strategically speaking, the payoff matrix is tilted in the favor of choosing the unpredictable business. It is an altogether different question on which companies can capitalize on this. But I want to make a statement that to my mind; this is the right direction and right strategy.

Moving on,

There were many questions raised around dividends and its distribution. For the sake of everyone, anyone who thinks that shareholders have made money should get the facts straight. Assuming you have invested 1000 rupees in 2010 in that share, you would have made nothing or probably would have lost a few rupees. In what universe shareholders are getting benefitted? It is futile to even argue that shareholders are the biggest winners. They have not won, but they are still invested as they believe in the direction in which this business is going. And I resonate that feeling.

Last thing is handling employees. Well it has a history of not firing anyone based on poor market conditions. There can be instances of unpleasant experiences. But seriously guys: are you telling me other companies outside are all white & fair in dealing with people. Atleast this organization has a platform that someone can walk in to big boss’s cabin & talk. Can question the seniors openly in the form of blogs, posts & question them on their action.

In all, I feel, it is like a spa treatment. You know after the treatment it is going to be relaxed. But you make faces & sometimes cry when you are pressed at different places in your body!

So give this baby one chance!! :)

What can we learn from Rajni?

(With liberal references from Search god: google!!)

Having been party to plethora of SMS and jokes about Rajni’s supernatural abilities made me wonder what is this all about? How can a simple actor like Rajnikanth can pull out something so great and so extraordinary. And the answer that comes to my mind is powerful branding. May be it is unintentional. Who knows!! 

I do the same thing everywhere - Consistency  

The crux is living the brand. Every action in his movies (although I cannot boast to have seen a lot of his on screen gyrations but I believe he would have done them in all) depicts what Rajni as a brand is.

Your brand is built and conveyed, with every action you take, with every product/service you offer, with every piece of communication you send, and with every contact you make with your customers.

Successful but very well connected on the ground

I was watching a few interviews of the legendary actor and found the guy humble, simple and well connected to the people on the ground.

Its people like you and me who have built stories about him although in lighter vein, these things demonstrate a sort of consistency in Rajni’s action. Consistency in delivery and performing out of world miracles on screen.

Prof Thiru always says “in the long run, companies which have stories to tell will survive”

Customers build brands piecemeal. They build a story about you based upon their experience. Your customer owns your brand - you do not. Your job is to behave as consistently as possible.

Single minded dedication to do the unthinkable – Character fixation!

The other day, I was watching Siva and watching some trailers of Robot. The guy is consistently doing things which normally is: unthinkable.

Attribution theory is at work here:  This theory says that people ascribe characters to the people they meet based on a very few clues around which they spin elaborate stories. So from a gesture, or a turn of phrase, or an intonation of voice, they quickly come to a conclusion as to the sort of person they are dealing with (often within 20 seconds of meeting the person, in fact). These judgements are made not only of people, but also of animals, and even of inanimate objects (what human characteristics do you ascribe to your laptop when it crashes?).

Brands, which function as fictional people, are also ascribed human characteristics. (God in our case of Rajnikanth!!)

In conclusion, brands can therefore be analysed along two key dimensions based on our understanding of Rajni’s actions:

• The level of intimacy they have with their customers (viewers in our case)
• Their level of stature in the world (how the world sees him)

And what is going to take us there?

• The central organising thought of the brand
• The personality of the brand
• The values the brand embodies
• The tastes/dress of the brand, including how it speaks
• The emotional benefits the brand satisfies
• The hard benefits the brand delivers

Survey Findings - Usage of Enterprise 2.0

As promised, these are the survey results regarding usage of Enterprise 2.0. This is our analysis.

We asked questions to the employees of different organizations to understand whether they understand the reason for the recent flourishing of Enterprise 2.0 activities.

•  Large organizations which promote the usage of internal tools which are created on the lines of external social media tools don’t know the motive behind the organization’s investment in these tools. Hence, one point which comes out of this analysis is that communication program on the objectives has to be strengthened.
• Again, in case of IT services organization which has great needs for knowledge management and content management have maximum number of employees who are not in sync with the organization’s objective behind the implementation of Enterprise 2.0.
• Smaller companies seem to be adopted well and due to smaller size, the objectives are spread to the employees and the expectations from the new software is understood by the users and hence better viability of using these Enterprise 2.0 tools.
• In a product based company, there is greater acceptability. This is demonstrated by the fact that the employees use these tools on almost day to day basis and find the usage helpful in terms of increasingtheir professional knowledge. 
• Most of the users prefer the usage of external tools rather than the internal tools which are developed in-house which are more or less the replica of the functionality of the external tools.