Upgrade to Pro — share decks privately, control downloads, hide ads and more …

Lean Planning for Nimble Agencies

Lean Planning for Nimble Agencies

From the Mirren New Business Conference 2012

The Difference Engine

May 02, 2012
Tweet

Transcript

  1. Stuff I’ve done. ads campaigns websites games strategies businesses products

    media hosting hackathons mentoring start-ups writing a little code presenting an absurd number of decks
  2. Full management teams Assuming the customer is known Assuming the

    features are known Assuming growth happens by execution High burn rate Swinging for the fences The results for start-ups:
  3. Principles of Lean Start-ups Assume customer and features are unknowns

    Continuous customer interaction Revenue goals from day one No scaling until revenue Low burn by design, not crisis
  4. Google #Firestarters: Agile Planning Do Agencies Need to Think Like

    Software Companies? Let the stealing begin...
  5. the ‘insight & creativity’ waterfall Client Briefing Planning Creative Briefing

    Creative The Sell PROFIT ? Research Testing Media Production Accounts Planning Creative
  6. we take orders Agencies facilitate and manage the production and

    placement of advertising on behalf of their clients. The client asks, and she shall receive. 1
  7. “we don’t get paid to think” The traditional model: Billings

    = The total cost to produce & place advertising Revenue = ~10% of billings Profit = ~15% of revenue 2
  8. it’s hard enough to keep up with our own industry...

    Clients Consumers Ad Agencies Media Agencies Production Houses Publishers
  9. our process is wasteful Client Briefing Planning Creative Briefing Creative

    The Sell PROFIT ? Research Testing Media Production Accounts Planning Creative Agency 3rd Parties 3
  10. our hand-offs can be more like show-downs “I don’t need

    any more ideas. We’ve got plenty of ideas. I need to know what to make.” - Anonymous Creative Director
  11. we’re struggling with product-market fit “What do you want from

    me? Fine writing? Or do you want to see the goddamned sales curve stop moving down and start moving up?” - Rosser Reeves 5
  12. ...fired for only a few Bad strategy, bad creative, bad

    service. http://www.rswus.com/survey/2011-survey-clients-look-ahead-at-agencies
  13. three reality checks Client briefs are not to be trusted

    they are often disconnected from the real business objective, and assume facts not always in evidence Our business model is double-sided we have to design for both our economic buyer (the client) and our end-user (the consumer) Strategy isn’t (solely) about research and testing it’s about efficiently seeking a campaign model that scales - and this doesn’t have to be expensive or delay ideas
  14. Principles of Lean ad agencies Assume the client briefs are

    hypotheses to be tested. Continuous customer interaction - with both client & consumer. Establish clear goals for the campaign from day one. Start simple, iterate on successes and learn from failures. Create right-sized, integrated teams, and use the right resources & tools as they are needed. Keep score with clients, vendors & partners.
  15. a note: I open source ideas & models. So all

    of the models & frameworks you’re about to see in this deck are in the Creative Commons. Using them is not stealing my IP. Please use them. Mahalo.
  16. start with the business problem What is the problem your

    client is trying to use advertising to solve? 1
  17. start with the business problem “How is their bonus calculated?”

    “Who do you report to?” “Who approves the work?” “Who owns the budget?” What is the problem your client is trying to use advertising to solve? 1
  18. start with the business problem “How is their bonus calculated?”

    “Who do you report to?” “Who approves the work?” “Who owns the budget?” “What can we influence/change?” “What is the business problem?” “What’s the root cause of the problem?” “Who owns the parts of the value chain?” What is the problem your client is trying to use advertising to solve? 1
  19. charge for strategy Call it discovery, campaign planning, client roadmaps,

    etc. Do the work to understand your client’s business (note: this is different from their ‘brand’). Involve your client in this process - do stakeholder interviews, workshops, etc. Don’t call it an add-on or suggest it as optional. Charge enough that it looks like it matters as much as it does. Connect it to measurement & KPIs. 2
  20. they pay for strategy. just not from you. Reason #1:

    They don’t think agencies do strategy - and if you don’t have a highly visible planning team, with a history of solving business problems, why should they? Reason #2: They don’t trust agencies to be honest - they think you’re learning what you want to learn to make the work you want to make. Reason #3: They believe in ‘best in class’ when buying agency services - but are constantly frustrated by the inefficiencies.
  21. What are the most important costs inherent in our business

    model? Which Key Resources are most expensive? Which Key Activities are most expensive? ATeT]dTBcaTP\b Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? 2WP]]T[b 2dbc^\TaAT[PcX^]bWX_b 2dbc^\TaBTV\T]cb RWP]]T[_WPbTb) 0fPaT]Tbb  7^fS^fTaPXbTPfPaT]TbbPQ^dc^daR^\_P]hzb_a^SdRcbP]SbTaeXRTb. !4eP[dPcX^]  7^fS^fTWT[_Rdbc^\TabTeP[dPcT^da^aVP]XiPcX^]zbEP[dT?a^_^bXcX^]. "?daRWPbT  7^fS^fTP[[^fRdbc^\Tabc^_daRWPbTb_TRX R_a^SdRcbP]SbTaeXRTb. #3T[XeTah  7^fS^fTST[XeTaPEP[dT?a^_^bXcX^]c^Rdbc^\Tab. $0UcTabP[Tb  7^fS^fT_a^eXST_^bc_daRWPbTRdbc^\Tabd__^ac. <Pbb<PaZTc =XRWT<PaZTc BTV\T]cTS 3XeTabX TS <d[cXbXSTS?[PcU^a\ TgP\_[Tb ?Tab^]P[PbbXbcP]RT 3TSXRPcTS?Tab^]P[0bbXbcP]RT BT[UBTaeXRT 0dc^\PcTSBTaeXRTb 2^\\d]XcXTb 2^RaTPcX^] For whom are we creating value? Who are our most important customers? What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? EP[dT?a^_^bXcX^]b :Th0RcXeXcXTb :Th?Pac]Tab :ThATb^daRTb 2^bcBcadRcdaT What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? RWPaPRcTaXbcXRb =Tf]Tbb ?TaU^a\P]RT 2dbc^\XiPcX^] {6TccX]VcWT9^Q3^]T| 3TbXV] 1aP]SBcPcdb ?aXRT 2^bcATSdRcX^] AXbZATSdRcX^] 0RRTbbXQX[Xch 2^]eT]XT]RTDbPQX[Xch RPcTV^aXTb ?a^SdRcX^] ?a^Q[T\B^[eX]V ?[PcU^a\=Tcf^aZ ch_Tb^UaTb^daRTb ?WhbXRP[ 8]cT[[TRcdP[QaP]S_PcT]cbR^_haXVWcbSPcP 7d\P] 5X]P]RXP[ \^cXePcX^]bU^a_Pac]TabWX_b) >_cX\XiPcX^]P]STR^]^\h ATSdRcX^]^UaXbZP]Sd]RTacPX]ch 0R`dXbXcX^]^U_PacXRd[PaaTb^daRTbP]SPRcXeXcXTb Xbh^daQdbX]Tbb\^aT) 2^bc3aXeT][TP]TbcR^bcbcadRcdaT[^f_aXRTeP[dT_a^_^bXcX^]\PgX\d\Pdc^\PcX^]TgcT]bXeT^dcb^daRX]V EP[dT3aXeT]U^RdbTS^]eP[dTRaTPcX^]_aT\Xd\eP[dT_a^_^bXcX^] bP\_[TRWPaPRcTaXbcXRb) 5XgTS2^bcbbP[PaXTbaT]cbdcX[XcXTb EPaXPQ[TR^bcb 4R^]^\XTb^UbRP[T 4R^]^\XTb^UbR^_T fffQdbX]Tbb\^ST[VT]TaPcX^]R^\ CWT1dbX]Tbb<^ST[2P]ePb >]) 8cTaPcX^]) 3TbXV]TSQh) 3TbXV]TSU^a) Day Month Year No. ch_Tb) 0bbTcbP[T DbPVTUTT BdQbRaX_cX^]5TTb ;T]SX]VAT]cX]V;TPbX]V ;XRT]bX]V 1a^ZTaPVTUTTb 0SeTacXbX]V gTS_aXRX]V ;Xbc?aXRT ?a^SdRcUTPcdaTST_T]ST]c 2dbc^\TabTV\T]cST_T]ST]c E^[d\TST_T]ST]c Sh]P\XR_aXRX]V =TV^cXPcX^]QPaVPX]X]V HXT[S<P]PVT\T]c ATP[cX\T<PaZTc This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http:/ /creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
  22. collaborate to learn 3 http://www.startuplessonslearned.com/ “We always have a vision

    that is clearly articulated, big enough to matter & shared by the whole team. “Our goal is always to discover which aspects of this vision are grounded in reality & adapt those aspects that are not.” This vision is the ‘brief’...
  23. PLACE BETS: generate hypotheses before ‘finding insights’ About the customer.

    About what matters to them. About how they live their lives.
  24. PLACE BETS: generate hypotheses before ‘finding insights’ About the customer.

    About what matters to them. About how they live their lives. About what they desire or how we can solve a painful problem.
  25. PLACE BETS: generate hypotheses before ‘finding insights’ About the customer.

    About what matters to them. About how they live their lives. About what they desire or how we can solve a painful problem.
  26. do what, now? Talk to people - not respondents. Not

    a lot: 5-10. Get the people you meet to introduce you to other people they know who do things a little differently. Don’t use a “facility” - try to go to where they are when they use the product or interact with the category/brand.
  27. measure to succeed You know the old adage... “Half my

    advertising is working... I just don’t know which half.” KPIs aren’t making this better, most of the time. 5
  28. http://anjalir.wordpress.com/2011/04/12/sxsw-in-retrospect-the-last-of-the-launch-and-leave-ems/ “You need to add value to people's lives, not

    just expect them to participate because you goddamn well asked them to.” Mel Exon, BBH Labs
  29. measure like a pirate “[Vanity Metrics are] numbers that make

    us look good but don’t really help make decisions.” - Eric Ries, The Lean Start-up Actionable (a.k.a. ‘Pirate’) Metrics: Acquisition: users from misc channels come to site, landing page, widget, etc Activation: users enjoy 1st site visit, "happy" user experience Retention: users re-visit site multiple times Referral: users like product enough to refer others referral happens via email, links, blogs, widgets, word-of-mouth, etc Revenue: users conduct monetization behavior (e.g., buy, download, affiliate sale trackback) * *
  30. Bonus round: do it again. “It isn’t iterative if you

    only do it once.” - probably one of the made by many guys
  31. Bonus round: do it again. “It isn’t iterative if you

    only do it once.” - probably one of the made by many guys Learn
  32. Bonus round: do it again. “It isn’t iterative if you

    only do it once.” - probably one of the made by many guys Build Learn
  33. Bonus round: do it again. “It isn’t iterative if you

    only do it once.” - probably one of the made by many guys Build Measure Learn