A problem has been discovered by your team, a good idea has been formulated, and a number of methods for carrying it out have been discussed.
Before you is an important choice: you must decide which of the ideas is truly worth pursuing.
For CEOs the question is which way to allocate their time, money, and attention. Although an idea may appear excellent during a meeting it will not actually provide customers with a genuine reason to buy.
The objective is to select an idea that addresses a real problem, generates value, and can be tested before committing too much.
Start by examining the concept that underlies your idea.
A concept directs the way you think, whereas an idea turns that direction into something specific.
For instance, suppose a manufacturer discovers that customers are annoyed by unexpected equipment downtime. The idea might be:
This will help customers to keep their production going by making maintenance more predictable.
This concept could lead to several ideas:
- A service which spots the early signs of equipment failure.
- One that includes a maintenance subscription with scheduled inspections.
- A program which provides essential parts at the site.
- A design of a simpler machine that makes repairs easier.
- A program for training operators which helps to prevent common failures.
The same concept is supported by each idea, but for each idea different skills, investments, and actions on the part of the customer are required.
The concept illustrates the kind of value that should be created. Once you have chosen an idea, you then know how to go about making it happen.
If you’ve already got an idea, then carry on to find out what its purpose is.
The process can sometimes start with a particular suggestion, for example, ‘Let’s build a customer app.’
Before forming an opinion about the app idea, one should first consider what it ought to achieve.
It is possible that customers have difficulty in locating and ordering replacement parts; in that case, the primary focus is on:
Ensure that customers can obtain the right part without production being delayed.
One solution would be to use an app; other possibilities include scanning the code on the equipment, providing preassembled parts kits, or employing a dedicated parts specialist.
It is important to carry out this step since your initial idea may restrict your thinking. Identifying the true purpose will enable you to see a wider range of options.
Before deciding on the best option, consider a number of different ones.
The discussion tends to become a debate between the supporters and the critics if the team concentrates on a single idea.
Offer your team a number of reliable options to compare.
Improve the things you are currently doing by using vertical thinking, for example by making the ordering process easier, decreasing mistakes, or speeding up delivery.
Try to come up with a new method by using lateral thinking. For instance, what if customers were never required to order spare parts? What if restocking was done automatically? Or perhaps you could take some ideas from another industry?
Ensure that each idea is clear and specific by stating who it benefits, what alterations will take place, and explaining why those changes are important.
For that, ask yourself five questions.
1. Does this idea address a problem that customers actually care about?
A problem can be genuine but not urgent.
Find out how frequently the problem occurs, what expenses it involves, and what actions customers are currently taking. Look out for examples such as lost production, wasted labor, missed deadlines, or additional costs.
The greater the impact, the more justification there is for taking action.
2. Does this idea provide customers with a clear reason to select your business?
The idea of “better service” is not precise enough.
The statement that critical replacement parts are available at your facility when the equipment fails is a clear and specific promise.
Inquire of customers whether they can tell the difference and connect this to something valuable; also consider how easy it would be for your competitors to copy your idea, since while a useful new feature may attract attention, an advantage stemming from your own strengths or systems is more difficult for others to replicate.
3. Does this idea result in good business outcomes?
Customer value should be linked to business value.
Might this idea assist you in achieving higher margins, consistent revenue, better customer retention, or a price at which customers are happy to pay?
Don’t forget to take into account the cost of fulfilling your promise. A service might not be worthwhile even if customers love it if it requires expensive inventory, continuous emergency assistance, or excessive customization.
4. Can your company consistently and reliably carry out this idea?
An idea ought to advance your business, but it should not depend on skills or resources which you cannot realistically acquire.
Work out which people, systems, partners, and investments are required and make clear the promise you are making; if customers rely on getting the parts immediately, having the parts available isn’t always sufficient.
5. What is the easiest test you can carry out in order to obtain useful feedback?
There is no need to run the entire program in order to decide whether it is worth investing in.
As for the parts idea, offer a paid trial to a number of customers using a limited number of key components.
Make sure that the customers do take part, that downtime decreases, and that the figures are reasonable.
Before you start the test, decide on your criteria so that you can easily stop the process, make adjustments to it, or expand on the idea according to what you find out.
To make sure the discussion stays on track, use a scorecard.
Assess each idea by referring to its importance to customers, the extent to which it stands out, its profit potential, how easy it is to deliver, and how simple it is to test.
Use the scores to identify disagreements and underlying assumptions. A serious weakness should not be hidden simply because the score is high. An idea which has low customer demand is not attractive merely because it is easy to carry out.
If you look in detail at the idea which scored the highest, it still requires proof.
The best idea clearly connects a customer problem to a valuable solution and profitable delivery.
Your concept gives you direction. Your options show what’s possible. Your tests reveal which idea is worth the next investment.
A problem has been discovered by your team, a good idea has been formulated, and a number of methods for carrying it out have been discussed.
Before you is an important choice: you must decide which of the ideas is truly worth pursuing.
For CEOs the question is which way to allocate their time, money, and attention. Although an idea may appear excellent during a meeting it will not actually provide customers with a genuine reason to buy.
The objective is to select an idea that addresses a real problem, generates value, and can be tested before committing too much.
Start by examining the concept that underlies your idea.
A concept directs the way you think, whereas an idea turns that direction into something specific.
For instance, suppose a manufacturer discovers that customers are annoyed by unexpected equipment downtime. The idea might be:
This will help customers to keep their production going by making maintenance more predictable.
This concept could lead to several ideas:
- A service which spots the early signs of equipment failure.
- One that includes a maintenance subscription with scheduled inspections.
- A program which provides essential parts at the site.
- A design of a simpler machine that makes repairs easier.
- A program for training operators which helps to prevent common failures.
The same concept is supported by each idea, but for each idea different skills, investments, and actions on the part of the customer are required.
The concept illustrates the kind of value that should be created. Once you have chosen an idea, you then know how to go about making it happen.
If you’ve already got an idea, then carry on to find out what its purpose is.
The process can sometimes start with a particular suggestion, for example, ‘Let’s build a customer app.’
Before forming an opinion about the app idea, one should first consider what it ought to achieve.
It is possible that customers have difficulty in locating and ordering replacement parts; in that case, the primary focus is on:
Ensure that customers can obtain the right part without production being delayed.
One solution would be to use an app; other possibilities include scanning the code on the equipment, providing preassembled parts kits, or employing a dedicated parts specialist.
It is important to carry out this step since your initial idea may restrict your thinking. Identifying the true purpose will enable you to see a wider range of options.
Before deciding on the best option, consider a number of different ones.
The discussion tends to become a debate between the supporters and the critics if the team concentrates on a single idea.
Offer your team a number of reliable options to compare.
Improve the things you are currently doing by using vertical thinking, for example by making the ordering process easier, decreasing mistakes, or speeding up delivery.
Try to come up with a new method by using lateral thinking. For instance, what if customers were never required to order spare parts? What if restocking was done automatically? Or perhaps you could take some ideas from another industry?
Ensure that each idea is clear and specific by stating who it benefits, what alterations will take place, and explaining why those changes are important.
For that, ask yourself five questions.
1. Does this idea address a problem that customers actually care about?
A problem can be genuine but not urgent.
Find out how frequently the problem occurs, what expenses it involves, and what actions customers are currently taking. Look out for examples such as lost production, wasted labor, missed deadlines, or additional costs.
The greater the impact, the more justification there is for taking action.
2. Does this idea provide customers with a clear reason to select your business?
The idea of “better service” is not precise enough.
The statement that critical replacement parts are available at your facility when the equipment fails is a clear and specific promise.
Inquire of customers whether they can tell the difference and connect this to something valuable; also consider how easy it would be for your competitors to copy your idea, since while a useful new feature may attract attention, an advantage stemming from your own strengths or systems is more difficult for others to replicate.
3. Does this idea result in good business outcomes?
Customer value should be linked to business value.
Might this idea assist you in achieving higher margins, consistent revenue, better customer retention, or a price at which customers are happy to pay?
Don’t forget to take into account the cost of fulfilling your promise. A service might not be worthwhile even if customers love it if it requires expensive inventory, continuous emergency assistance, or excessive customization.
4. Can your company consistently and reliably carry out this idea?
An idea ought to advance your business, but it should not depend on skills or resources which you cannot realistically acquire.
Work out which people, systems, partners, and investments are required and make clear the promise you are making; if customers rely on getting the parts immediately, having the parts available isn’t always sufficient.
What is the easiest test you can carry out in order to obtain useful feedback?
There is no need to run the entire program in order to decide whether it is worth investing in.
As for the parts idea, offer a paid trial to a number of customers using a limited number of key components.
Make sure that the customers do take part, that downtime decreases, and that the figures are reasonable.
Before you start the test, decide on your criteria so that you can easily stop the process, make adjustments to it, or expand on the idea according to what you find out.
To make sure the discussion stays on track, use a scorecard.
Assess each idea by referring to its importance to customers, the extent to which it stands out, its profit potential, how easy it is to deliver, and how simple it is to test.
Use the scores to identify disagreements and underlying assumptions. A serious weakness should not be hidden simply because the score is high. An idea which has low customer demand is not attractive merely because it is easy to carry out.
If you look in detail at the idea which scored the highest, it still requires proof.
The best idea clearly connects a customer problem to a valuable solution and profitable delivery.
Your concept gives you direction. Your options show what’s possible. Your tests reveal which idea is worth the next investment.
