Product Management 101 @ HETIC

Product Management 101 @ HETIC

Talk given @ HETIC, a french university, on Product Management and, more specifically, the Customer Development methodology from Steve Blank.

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Gilles Bertaux

January 26, 2015
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Transcript

  1. Product Management 101

  2. None
  3. Strategic Planner Balistik#Art Mention Growth + Design TOTEMS Product Design

  4. Dataparis.io + data.gouv.fr HETIC’s projects

  5. What does it mean to be a Product Manager? How

    do you build great products? How to get products ideas? Our Planning
  6. What does it mean to be a Product Manager? 1

  7. Product Manager != Project Manager

  8. What How When Who Why Product Manager Project Manager ’’Ian

    Mc Allister GM Amazon
  9. Product Manager == Project Manager’s « client »

  10. « CEO of Product » That is, advocate for the

    Business and the End User
  11. Market Analysis & Business Customers Analysis Product Roadmap & Specifications

    How it should be
  12. Market Analysis & Business Customers Analysis Product Roadmap & Specifications

    UX Design Bug tracking + Dev Growth + PR How it is most times
  13. Then, should a PM have a technical background? It depends.

  14. Technical basics requirements How web dev works (front-end, deployment, server

    implications) How mobile dev works (guidelines, deployment…) APIs & Integrations Data Analysis (Basic SQLs, Excel, Stats…) Dev best practices
  15. How to be a good PM? Always know the current

    status and context, Jump from small details to big picture, Be a good communicator and make things easy for people, Know your customers and think through the edge cases, Have thick skin.
  16. Eventually, it’s mostly about empathy.

  17. How to develop empathy?

  18. Cool Reads: Good Product Manager/Bad Product Manager Behind Every Great

    Product
  19. How do you build great products? 2

  20. First, people don’t buy products. They buy better version of

    themselves.
  21. None
  22. « There are no facts inside your building » ’’Steve

    Blank Serial Entrepreneur
  23. Therefore, build through Customer Development.

  24. Customer Discovery > Customer Validation > Customer Creation > Company

    Building Customer Development Process MVPs / Agile Development
  25. #1 Customer Discovery: What should I build and for whom?

    Hypothesis (Problem, MVP, Pricing, Demand Creation, Market, Competition) Test Problem Reality Check & MVP Test MVP Verify or Iterate
  26. Testing a problem You can measure interest with a Landing

    Page, But eventually, you should « get out of the building » Customer Discovery Customer Validation Customer Creation Company Building
  27. Running Interviews Open ended questions and avoid yes/no, Abstract your

    problem by a level, Pay close attention to emotions, Challenge your hypothesis, Shut up. Customer Discovery Customer Validation Customer Creation Company Building
  28. Fuck surveys. Customer Discovery Customer Validation Customer Creation Company Building

  29. MVP != Small/Cheap Product Customer Discovery Customer Validation Customer Creation

    Company Building
  30. MVP != Broken Product Customer Discovery Customer Validation Customer Creation

    Company Building
  31. MVP == Hypothesis tester Customer Discovery Customer Validation Customer Creation

    Company Building
  32. MVPs are not necessarily coded Customer Discovery Customer Validation Customer

    Creation Company Building
  33. TOTEMS + Steve B. Anecdote

  34. « Do things that don’t scale » ’’Paul Graham YC

    Co-Founder
  35. #2 Customer Validation: Have I built something people want? Get

    ready to sell finished MVP, Sell to « earlyvangelist », Measure Product/Market fit Verify or Iterate
  36. Get ready to sell Articulate a Unique Value Proposition (what,

    who, why) Product website (Landing, Pricing, SU/SI, About, Tour) Define AARRR & Conversion Funnel Drive « just enough » trafic, validation != growth Customer Discovery Customer Validation Customer Creation Company Building
  37. « Build it and they will come,” is not a

    strategy; it’s a prayer » ’’Steve Blank Serial Entrepreneur
  38. Sell! Sell! Sell! But sell it first to the interviewees

    Customer Discovery Customer Validation Customer Creation Company Building
  39. Measure Product/Market fit Basic conversion dashboard that measures AARRR metrics

    Activation and Retention are most critical Customer Discovery Customer Validation Customer Creation Company Building
  40. Product/Market fit: Are we there yet? Are you making money?

    Is it satisfying? Are you getting referrals? Did you create habits? Customer Discovery Customer Validation Customer Creation Company Building
  41. #3 Customer Creation: Have I built something people want? Sell

    from few to many, Choose market type (existing, re-segmented, new) Define positioning, Prepare launch.
  42. Dropbox Launch + Reddit

  43. #4 Company building: Now what? Build company culture & missions,

    Hire management & leadership culture, Go mainstream.
  44. None
  45. Cool Reads: 4 steps to epiphany Lean startup

  46. How to get products ideas? 3

  47. « The way to get startup ideas is not to

    try to think of startup ideas » ’’Paul Graham YC Co-Founder
  48. #Don’ts

  49. Don’t solve problems no one else have Be aware of

    what people what and what the reality is
  50. Don’t take things for granted Question everything.

  51. College != Entrepreneurship Open your mind to a leading field.

    Drop entrepreneurship classes.
  52. Painful & Unsexy ideas

  53. #Dos

  54. Live in the future, then build what's missing. Be empathetic

    & be on the leading edge of some rapidly changing field
  55. Just. Build. A.k.a the power of side projects

  56. Do the job you’re trying to solve Get to know

    the stakes and find what is missing
  57. Find dying / frozen industries Disrupt. That. Shit.

  58. Number of people who want to use your product How

    much they want it
  59. Competition is one of the signs of a good idea

    Find what are they overlooking. Just go ask users.
  60. French products don’t suck. Sacrebleu. 4

  61. None
  62. None
  63. Your turn to build a product Elevator pitch + MVP

    5
  64. Elevator Pitch Describe your startup idea What problem are you

    trying to solve? Who has it? What are you going to build? How will you attract potential users/customers? How are you going to make money? Who will you compete with?
  65. Institutions / Governments Your clients

  66. Emerging Markets Your market

  67. Energy Food/Water Education Internet Infrastructure Finance Transport Housing Santé

  68. Summarize in 3 minutes.

  69. [PDF] http://inft.ly/3bUYKmV

  70. Pitch Reviews 60 min 6

  71. Slack

  72. None
  73. What metrics should I track for SAAS products? Introduction to

    SAAS metrics 7
  74. LTV, Churn, MRR, Cohorts, Average Revenue per Customer, Cost per

    Acquisition, [Key activity Metric for YOUR product]…
  75. Churn Rate = Churned Customers / Total Customers If 1000

    / 60 000?
  76. MRR (Monthly Recurring Revenue) = Total Number of Customers *

    (Total Revenue / Numbers of Customers)
  77. CAC = Total cost of Sales & Marketing / No

    of Deals closed
  78. Months to recover CAC How many months of revenue from

    a customer are required to recover your cost of acquiring that customer (CAC)
  79. LTV = Life Time Value?

  80. Customer Life Time = 1/Churn Rate If 3% monthly churn?

  81. LTV = Customer Life Time * Average MRR per Account

    Simply put: LTV = ARPU / Churn
  82. Cohort Group of customers that started in the same month

  83. Ugly table from hell Cohort Analysis

  84. Growth hacking your product Rapid & Scalable Growth 8

  85. Airbnb & Craiglist

  86. Hotmail

  87. Hubspot

  88. How to structure a product team? Tools + Workflow examples

    9
  89. Team Communication Aim for inbox zero

  90. But, be smart about e-mails Streak + Rapportive + Sidekick

  91. Assign tasks & Visualize roadmap Everyone should know who’s working

    on what Really cool example
  92. Iterate on Product Prototype fast, together.

  93. Test Test fast and easy

  94. Reach to your Customers Personalized event-triggered messages

  95. Automated workflow examples Github commit + merges in Slack #Product

    If upgrade/subscription push Yo/Slack #Biz New Github issue = New Trello card Open card with Slack snippet ….
  96. Build an effective product roadmap Tips & Examples 10

  97. A few tips first.

  98. #1 Set company principles & Focus Pin it to the

    board. Everyone should know it, always.
  99. Quora example: « We help the world get their questions

    answered now, and we create a lasting resource for others who may have the same question in the future. We focus on getting high quality questions and answers. »
  100. #2 Set goals and progress SMART goals.

  101. #3 Update based on product feedback What's been going on

    recently with the product? What has been delivered since the last roadmap update?
  102. #4 Near term product improvements What are you going to

    be focusing until next quarter? List & explain the themes.
  103. #4 Long term product improvements What are the most important

    themes over the next year?
  104. #5 Individual Projects What? Which Theme? When to ship?

  105. How to build features? Problem/Solution spaces + Ramen Framework

  106. Problem/Solution spaces

  107. Problem space User benefit Solution space Product repercussion

  108. I hate to enter my credit card number Let’s allow

    buyers to pay in one click Amazon’s One Click Buying
  109. Problem space Customer Understanding Solution space What users can react

    to
  110. Ramen: user feedback for startups 5-10 min Q&A to understand

    user needs 30-50 min non-directed feedback 5-10 min explain features
  111. Prioritize your features Introducing the Kano model & small tweaks

  112. None
  113. “Must be”: The essential feature, if this does not appear

    then our user will be deeply frustrated and unsatisfied. “Delighter”: A feature that can cause a great satisfaction if it exist. “Perfomance”: A feature that gives a lot of satisfaction or dissatisfaction proportionally to its promises. Prioritize based on your users
  114. Product features formula Fp = (Un + Bv) - (e

    + t)
  115. Un = Defining the User Needs ≤ 10 The satisfaction

    score from 0 to 5 is defined by user feedback. Combos: Must Be = 2, Delighter = 1, Perfomance = 1.5 Un = [0-5]*[2,1.5,1] ≤ 10
  116. Bv = Define Business Value ≤ 10 How this will

    profit to my business (acquisition, activation, retention…)?
  117. e = Define effort to build Estimate effort to build

    in scale from 1 to 0 (learning curve, infrastructure issues…)
  118. T= Define time factor ≤ 10 Estimate time scoring

  119. Fp (Feature Price) = Feature Value - Feature Efforts Feature

    efforts = t + e Feature value = Un + Bv Sweet spot No go Not sure Not now
  120. Ressources Blogs & people to follow 11

  121. 8 Blogs to follow http:/ /www.bhorowitz.com/ http:/ /avc.com/ http:/ /andrewchen.co/

    http:/ /cdixon.org/ http:/ /dcurt.is/ http:/ /zachholman.com/ http:/ /joel.is/ http:/ /steveblank.com/
  122. 8 PMs to follow https:/ /twitter.com/joulee https:/ /twitter.com/ianmcall https:/ /twitter.com/brian_lovin

    https:/ /twitter.com/kowitz https:/ /twitter.com/danolsen https:/ /twitter.com/pdavies https:/ /twitter.com/lukew https:/ /twitter.com/joshelman Bonus: https:/ /twitter.com/gillesbertaux/following
  123. hello@gillesbertaux.com + @gillesbertaux