optimize everything : a framework for solving your biggest problems through optimization
TRANSCRIPT
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Ryan GarnerCo-Founder & CPO, Clearhead
@ryanTgarner
Experiment Everywhere A framework for solving your BIGGEST problems and winning more in the process
plus many more…
Problem Identification
Solution Design & Validation
have i got a solution for you!“10 test ideas guaranteed to boost the bottom line.”
“Responsive design…Everybody’s doing it.”
“Top 5 experiences to start personalizing now.”
solution
solutionsolution
solution
solutionsolution
solutiongoal
goal
the problems1 Too many inconclusive results
Limited resources being invested on ideas that didn’t yield ROI2
Running into dead-ends 3
why do ideas fail?1 Why do they succeed?
Why are results inconclusive? 2
How do we improve the odds of generating ROI? 3
“A Lesson in Innovation – Why did the Segway Fail?”By: Paul Sloane
“Uber Solves the Fundamental Problem of the Marketplace”By: Steven Horwitz | 6.24.15
“If I had one hour to save the world, I would spend fifty-five minutes defining the problem… and only five minutes finding the solution.” - Albert Einstein
laws of ROI
Returns go up when the problems go down.
Returns go down when the problems go up.
Returns stay flat when the problems stay flat. =
problems returns
our cheat code1 Love your problems. They are your most valuable assets.
Find them. Understand them. Size and prioritize them. 2
Then focus your investments in solving them.3
Take the problems down and ROI goes up. 4
A simple, unifying framework designed to take advantage of this law by focusing our workflow and investments on solving Problems.
Problem Solution Management (PSM)
| Optimize Everything presented by Clearhead16
goals problems
1
2
3
PS
Ps
pS
ps
1
2
3
4
hypothesesprioritized by data
1
3
experimentsvalidated by data
outcomes
product roadmap
design
containment
capabilities
“A good archer is known not by his arrows but by his aim.” - Thomas Fuller
Goals1 Make them S.M.A.R.T.
Prioritize & stack rank 2
Obtain leadership sign-off3
Share across organization. Is everybody on-board? 4
Goals
• specific
• measurable
• actionable
• realistic
• time based
S
M
A
R
T
Ask Yourself?
We want to make it easier for our customers to order.
poorly defined goal
We want to increase order conversion rates by 20% over the next 12 months.
well defined goal
• Identify goals
• Confirm KPIs
• Prioritize & stack rank
• Obtain leadership sign-off
• Share across organization
Steps
? ?
We want to increase order conversion rates by 20% over the
next 12 months.
goal
“a problem well put is half solved.” - John Dewey
Problems1 Find them
Validate that they are real 2
Get to the root3
Size and prioritize4
How to find them1 Internal brainstorm
Session recordings 2
Customer service team3
Customer surveys & research4
Analytics5
Get to the root!
First-time visitors do not understand the filters and facets we are providing to browse our products.
not the root problem
First-time visitors do not want to use filters and facets to browse our products. They want an expert’s recommendation based on their needs, and we don’t currently offer that.
the root problem
?
First time users want an expert’s recommendation based on their needs, and we don’t offer that.
problemWe want to increase order
conversion rates by 20% over the next 12 months.
goal
?
“Determine the thing that can and shall be done, and then we shall find the way.” - Abraham Lincoln
Solution Hypotheses1 Get specific
Will they solve the problem? 2
Will they cause new problems? What?3
Solution Hypotheses
I believe if we design a recommendation tool that uses customer preferences to recommend the most popular matching blender, we can significantly improve order conversion rates.
good hypothesis
• Will it solve the root problem?
• Will it cause new problems?
• Is the change specific?
Ask Yourself?
• Try stating the hypothesis as:
• I believe that…
• If I am right then…
Tips
I believe we should improve how first-time visitors find products.
poorly formed hypothesis
design a recommendation tool that uses customer preferences to recommend the most popular
matching blender
solutionWe want to increase order
conversion rates by 20% over the next 12 months.
goalFirst time users want an expert’s recommendation based on their needs, and we don’t offer that.
problem
?
Experiment
Increase order conversion rates by 20% over the next 12 months
The Goal
First time users want an expert’s recommendation based on their needs
The Problem
Design a recommendation tool that uses a customer’s preferences to recommend them the most popular matching blender
The Solution
Experiment
Increase order conversion rates by 20% over the next 12 months
The Goal
First time users want an expert’s recommendation based on their needs
The Problem
Design a recommendation tool that uses a customer’s preferences to recommend them the most popular matching blender
The Solution
Experiment
Increase order conversion rates by 20% over the next 12 months
The Goal
First time users want an expert’s recommendation based on their needs
The Problem
Design a recommendation tool that uses a customer’s preferences to recommend them the most popular matching blender
The Solution
Experiment
Increase order conversion rates by 20% over the next 12 months
The Goal
First time users want an expert’s recommendation based on their needs
The Problem
Design a recommendation tool that uses a customer’s preferences to recommend them the most popular matching blender
The Solution
Experiment
Increase order conversion rates by 20% over the next 12 months
The Goal
First time users want an expert’s recommendation based on their needs
The Problem
Design a recommendation tool that uses a customer’s preferences to recommend them the most popular matching blender
The Solution
Experiment
Increase order conversion rates by 20% over the next 12 months
The Goal
First time users want an expert’s recommendation based on their needs
The Problem
Design a recommendation tool that uses a customer’s preferences to recommend them the most popular matching blender
The Solution
Every goal. Every problem. Everywhere.
1 Organizational readiness problems
Sales & marketing2
HR / employee retention3
Products of all types - IVR, OTT, IoT4
Everywhere5
Your PSM Portfolio
solution solution
#retain-talent#grow-sales #improve-margins
solutionsolution
hypothesessolution
hypothesessolution
hypotheses
problem problem problem
Takeaways1 Returns go up when problems go down.
Want more returns? Focus your investments on solving them.2
PSM is a framework designed to put problems in the center.3
Experiment everywhere.4
