Lean Leadership

How I Became One of the .004%

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A few weeks ago, I was asked to blog about the patent using Lean Start-up, before @EricReis wrote his first book.  Thanks to @adamberk for the suggestion, and here we go-

Based on numbers publish by U.S. Patent office and Inc. Magazine, roughly 150,000 patents are issued within the United States each year.  Not shockingly given the current state of women in STEM fields, only 8% of those U.S. Patents are awarded to women.  This means only 12,000 U.S. women per year become patent holders, on a U.S. population of approximately 340 Million. Any woman issued a U.S. is part of an exclusive .004% club.   I became a member of this exclusive .004% club in both 2010 and 2016.

 

This patent was not the result of expertise, but the disciplined use of Design Thinking and Lean Start-up methods.

 

In 2010, and twice in 2016, I was awarded patents for the design of a glucose meter.  Unique as a commercial product, this glucose meter recommends custom insulin doses for individual diabetics, under the care a physician.  So, I must be an MD?  A medical researcher?  Surely at the very least, I must know a diabetic?  The answer to these usual assumptions is “No”.  I had exactly zero experience with diabetes, medical devices, and had never even worked in the general area of consumer products.  In fact, this wasn’t even the specialty of Menlo Innovations, the company I contracted with at the time. 

If it wasn’t expertise that put me in the .004%, then what was it?  This patent was the result was the disciplined use of Design Thinking and Lean Start-up methods.   These methods require high levels of empathy, creativity, low ego, and collaborative capabilities.  Companies are consistently winning with Design Thinking, Lean Start-up, so their use is gaining traction in the market.  These approaches were creating opportunities women even before the terms were coined.  Here is how it worked for me.

A client company had a vision of a world where diabetics could, under the care of a physician, get customized recommendations for insulin from a programmable glucose meter.  They contracted with Menlo Innovations to design and build a product that would fulfill that vision.  Along with a partner, I was given the task to figure out what we needed to do to gather the data we needed, then to use that data to design the glucose meter. With no prior knowledge, we didn’t have many assumptions about the lives of diabetics, or even what made for a good glucose meter.  We decided to go to the source and start learning from diabetics.   

Starting with empathy for our potential customers and the fact that all use glucose meters. We devised an experiment that would incorporate both. 

Starting with empathy for our potential customers and the fact that all use glucose meters.  We devised an experiment that would incorporate both.  While we went to local drug stored and purchased every available glucose meter, Project Managers worked to identify diabetics who would be willing to meet us at Panera Bread for an hour to talk to us about their experience as a diabetic.  Within 2 days, we had 10 diabetics and 10 glucose meters and were ready to run an experiment to determine what diabetics thought was the best existing glucose meter on the market.

First, we met our subjects at Panera Bread for a 90 minute session.  For a $25.00 Panera gift card, our diabetic subjects spent the first half our simply talking about their life experience.  One of us took notes, while the other asked questions and then, when appropriate, deeper questions about the challenges life as a diabetic.  This helped us build a well-rounded understanding of the challenges facing diabetic patients in general, but also allowed us a deep pool of data to pull from when fleshing out a full picture for others who would eventually help build out the product.

…we asked them to think out loud about the choices they were making.

Second, we dumped all 10 glucose meters out on the table in front of our users and asked them to place them from left to right.  To the left of the line were the “I hate this” glucose meters, and to right, the “I love this” meters.  While these potential customers worked on their subjective placement from 1 to 10, we asked them to think out loud about the choices they were making.  We were very surprised by the amount of thinking they did during the process and the passion they felt about their choices.  All ten participants shared detailed feelings and personal stories about features, shapes, feel, and even colors of the meters, sometimes in far more detail than we would have ever anticipated.

Both the rational and irrational seemed to inform each person’s decision about whether they would place a meter in the 4th instead of the 5th position, or in the 9th instead of the 10th.  This process looked very messy and seemed very personal, subjective, and multivariate.  However, over ten such interviews and experiments, a very clear picture began to emerge about where there was agreement and triangulation, versus when there was an outlier.

 

The fact that many established product companies spend millions implementing new products and features without a single experiment with customers is shocking.

 

Third, we combined the data into findings, collaborated in a group to determine what was similar and what was unique feedback.  Interesting, there was no emerging leader in glucose meters, there were only leading Features and leading placements of Features.   It was from this initial experiment, with less than 3 weeks of calendar time, that the prototype design for the 2010 patent was created.  We then pulled from Agile, continuing to learn and create iterations of the initial prototype,  then run more experiments.  All-in-all, by running experiments in iterations, I spent less than 6 months on a project that yielded 3 patents.

It’s amazing that such simple and seemingly non-scientific experimentation with potential customers can be powerful, efficient, and even patent-worthy.

It’s a little counter intuitive that such simple and seemingly non-scientific experimentation with potential customers can be that powerful, efficient, and even patent-worthy.  The fact that many established product companies spend millions implementing new products and features without running even one experiment with customers is shocking.  It’s worth mentioning that this patent was commercialized both domestically and internationally.  This effort resulted in a commercial product as well.  I thank Menlo Innovations for enabling such rewarding work – Rich Sheridan remains ahead of the market in leveraging Design Thinking and Lean Start-up.

I would love to hear from others in the .004% - I invite you to respond or comment with your story and perhaps we can find a way to increase these numbers.  Do you know a .004% member?  please forward this to them…I understand many have been so busy they haven’t had time to do the math!

Digital Transformation Changes the Game

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I was working with a large company that had started piloting a Digital Delivery model in one business line.  They had co-located the business, technology, and support functions.  The pilot was a success – the team had delivered improved product line performance in less than 6 months.  They had even trained the call center and created a marketing campaign.  However, the rest company continues to use old PMO model of percent allocating resources to projects.  They were delivering more projects than ever…but with increasing client attrition.   

The COO had called a meeting with his direct reports to discuss expanding the teaming model, but had gotten push back from his leadership team.  They said they communicated the urgency of client losses to their organizations, and that pulling people away from active projects would cause disruption and delays.  

Next he called a meeting with me and here's an except:

COO: I don't get it.  How am I going to convince these guys that we need to rapidly expand the team model so we can release full solutions out to our clients?  They all know we have a big problem with client attrition.  They tell me they are communicating urgency to their people, but the first pilot team released a solution that stopped client erosion – and they did it 10 months early. 

Me: Think of it like this: Most of your employees are experts and excellent at the jobs they have today.  They are like professional-level bowlers who are awesome at bowling strikes.  All day, they get a ball, they bowl strikes.  The more strikes, the more your leadership is rewarding them.  Leaders and management communicate urgency, everyone says “You got it, Boss!” and start to bowl strikes faster. Now you are saying "We are all going to start playing BASKETBALL!"

COO: But this is what I want.  I want teams that can deliver on a common goal, working together - getting solutions out to market for our business and for our clients.  We can't have individuals bowling strikes with no understanding of what is happening on the 'other lanes.'

Me:  Yes!  Here is what is happening on the ground, though.  We say: "Today, we are going to start learning how to play BASKETBALL" and we hear: "GREAT... but can I still use a bowling ball?  See, I already know how to use a bowling ball, and it’s still a ball.  I’ll even call it a basketball.” We explain that people get hurt when they try to catch a pass if you use a bowling ball, and the next question is “Well, can I at least stay in this alley, it has hard wood floors? It’s narrow, and I can put up bumpers if I want to –”.  This conversation slows down any move to model we used with the pilot team.

COO:  And now, by communicating urgency to their people, my leadership team has basically told everyone “Bowl Faster!”

This is a common scenario.  Though every organization may have a different structure or business model when they start, Digital Transformation must fundamentally change the game you are playing.  Messages that your leadership sends through the hierarchy (or rumor mill) can make or break employee willingness change the way they work.  

How many of your company goals can be met if your Leaders communicate the same rules they have for over a decade, but with more urgency?   The answer is NONE.  Your Leadership’s understanding of this fundamental concept, as well as the communication of it to the rest organization is imperative. 

…and sports analogy usually helps. :)