pragmatic marketer: volume 6, issue 2

8/14/2019 Pragmatic Marketer: Volume 6, Issue 2

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Also in this issue...

To Startup orNot to Startup?

The New LeaderDevelopment Dilemma

and How to Fix It

Utilizing Co-Design toCreate Market-Driven Products

Coming soon!Pragmatic

Marketing’snew book!Read an exclusivepreview inside!


http://slidepdf.com/reader/full/pragmatic-marketer-volume-6-issue-2 2/32T h e I n d u s t r y S t a n d a r d f o r Te c h n o l o g y P r o d u c t M a n a g e m e n t a n d M a r k e

New Rules of Marketing ™

Create a strategy to reach buyers directly

Visit www.pragmaticmarketing.com/newrules

or call (800) 816-7861 to register

Viral Marketing? Search Engines? Blogs?

C o n t a c t us t o c o n d u c t

t h is

s e m i n a r o ns i t e a t y o u r c o m p a n y o r

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The New Rules of Marketing™ seminar shows youhow to leverage the potential that web-basedcommunication offers your business:

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search engines reward with high rankings. Utools like blogs, podcasts, webcasts and socenhance your online presence.

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online marketing strategy and an action-planonline thought leadership for your organizat

Based on the best-selling book,The New Rules of Marketing & PR: How to use news releases, blogs,podcasting, viral marketing & online media to reachbuyers directly by David Meerman Scott, the New Rulesof Marketing seminar will show you how to reach buyerdirectly with information they want to hear.

Create a Strategy to Reach Buyers Directly



4 Why Didn’t We Think of That?Products and services that resonate.By Craig Stull, Phil Myers and David Meerman Scott

Hit products and services like the iPod, Starbucksand FedEx were seemingly embraced by the marketovernight. But it wasn’t luck, creativity or marketingthat led to their success.

Anyone can create hits that resonate if they stop guessing whatpeople need and start building deep connections to what theirbuyers value most. With a strategy for achieving market resonancethat has been developed over fifteen years,Tuned In shows readershow to find unsolved problems in the marketplace and createbreakthrough experiences that people want to buy.

14 To Startup or Not to Startup?By Paul Young and John Milburn

To a big-company product manager, workingfor a startup can look like a dream. Havinga huge impact on the company’s success orfailure—coupled with the rush that comesfrom knowing that your ability to listento the market guided the company to newheights—can make the red tape of a largecompany look boring and stodgy. Here aresome pros and cons to consider beforemoving to a start-up.

21 The New Leader Development Dilemmaand How to Fix It By Art Petty and Rich Petro

Why not promote our best and brightest to lead?After all, these individuals proved themselves asindividual contributors, managing projects orproducts, or serving customers. Their high levelof performance in the past bodes well for theirpotential as a manager. Or does it?

28 Utilizing Co-Design to Create Market-Driven ProductsBy Patrick Howell Designers are not typically users of a product, yet they oftenengineer a product with little or no end user involvement—andwithout understanding in advance how it will be received by thetargeted audience. It’s a risky proposition. To design a successfulproduct, you must figure out who is going to use it and understandwhat problem it is solving. But let’s take it one step further…formaximum success, products should be co-designed bythe intended audience.

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bout Pragmatic Marketing®

ounded in 1993, Pragmatic Marketing providesaining, consulting services and an onlinemmunity for product managers, marketersd business leaders at thousands of technology mpanies.

e have trained more than 45,000 productanagement and marketing professionals using theagmatic Marketing Framework, a common senseproach to identifying market problems, buildinge right solution and creating effective go-to-marketategies. Over 90% of attendees rate the trainingessential or very useful to their careers.

ur Consulting Services provide technology mpanies with implementation support andstom services designed to enhance the trainingceived at Pragmatic Marketing’s seminars orsite workshops.

he online community at PragmaticMarketing.comthe first-choice destination for technology productanagement and marketing professionals. Withore than 35,000 visitors per month, this dynamicsource center contains hundreds of articles, a jobard, book reviews, instructional webinars, links

peer networking groups and much more.sit www.PragmaticMarketing.com to learn more.

The Pragmatic Marketer™

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The Pragmatic Marketer•

Volume 6, Issue 2, 2008•

3

Inside this issue:Volume 6 Issue 2 • 2008



The Japanese salaryman works notoriously long hours. He’s in the office until 10:00 or11:00 p.m. and often goes out for drinks

and maybe some karaoke singing withcolleagues after that. But there’s aproblem. In the big cities such as Tokyoand Osaka, the last train leaves for thesuburbs around midnight. So as a resultof a long day and a few beers, whena Tokyo office worker gets on that lasttrain, he often falls asleep.

Sometimes he misses his stop.

When the train pulls into the station at theend of the line, the conductors pass throughthe cars and find a surprising number of sleeping salarymen. They do what’s necessary to wake up the wage warriors and push themout the train door. The dazed salarymen

then make their way into the quiet night— briefcases in hand, neckties askew—and findthemselves in a rice-growing country townmany miles from the city. They’re also farfrom their home stops, which passed by anhour before (perhaps as they were dreamingof that perfect rendition of “Take Me Home,Country Roads” at the karaoke bar).

Next train home? Not ‘til first thing in themorning, still three or four hours away. Ataxi? Several hundred bucks. Instead, ouraccidental travelers notice a hotel just acrossthe street! And there are vacancies!

And so the blue-suited businessmen headtoward their unexpected deliverance. Whenthey arrive at the hotel, they’re greeted andperhaps handed a toilet kit with toothbrushand razor. Best of all, they’ll pay far less thanthey would have for taxi fare. A place to sleepuntil morning…problem solved.

Chapter 1

Why Didn’t We Think of Products and services that reson

Excerpted fromTuned In: Uncover the extraordinary opportunities that lead to business breakthroughsby Craig Stull, Phil Myers, and David Meerman Scott.Used with permission. To be published by John Wiley & Sons, Inc., June 20ISBN-13: 978-0470260364$27.95

4•


Volume 6, Issue 2, 2008



Who would have thought to build ahotel at the end of a train line, farfrom anywhere important? Well, smart

Japanese hotel owners tuned in to apreviously ignored market problemthat a well placed hotel could fix.They identified a particular buyer of hotel services (the overworked andexhausted salaryman), and they’vebuilt growing, profitable businessesaround that niche—in the least likely places, like lonely towns many milesfrom the nearest big city. (Similar inns,such as Wellbe Hotels in Nagoya,have sprung up near stations in busy business centers and cater to those

who miss that last train completely.)

We’re fascinated with success storieslike these—buyer experiences thatresonate because they perfectly address market problems that peopleare prepared to pay money to solve.

We’ve identified the patterns of success(and failure), and in these pages we’llintroduce you to dozens of productsand services that resonate with theirmarkets. We’ll also tell you about somethat don’t, and we’ll explain why not.Most importantly, we’ll teach you theTuned In Process so you can replicatethe winners’ success in your ownorganization.

Tuned In shows you how to findoverlooked marketplace problemsthat, if solved, bring in customers

who willingly buy your productsand services without being coerced.

Tuned In—the processIn the book, we will share theTuned In Process, a six-step methodfor creating a resonator : a productor service that so perfectly solvesproblems for buyers that it sells itself.Starbucks, American Idol, and Googleare resonators. Were these productsand services created by peoplesmarter, luckier, or born with moretalent than the rest of us? No. We’llshow you that real success in themarketplace is not based on creativity or clever marketing. Anyone can createproducts and services that resonate.

All you need to do is stop guessing what people need and start spending your time building real and deepconnections to what your buyers valuemost. We’ll show you how to apply the Tuned In Process to find unsolvedproblems in your marketplace andhow you can create breakthroughexperiences for which people areeager to spend money.

As we introduce the Tuned In Process, we’ll use dozens of examples of companies that have tuned in to theirmarkets and created resonators. We’vestudied the introduction of thousands

of products, including those fromlarge, well-known companies suchas Ford Motor Company, Microsoft,and GE; breakout bestsellers from

Apple, Red Bull, and Google; andniche offerings from players youmay never have heard of, such asNational Community Church, GoPro,and Zipcar.

We’ll explore what it takes to transform your organization by cultivating atuned in culture and how to becomeand remain a market leader.

What’s fascinating about the tuned inapproach is that it works amazingly

well for all kinds of organizations. We’ve identified nonprofits, business-to-business enterprises, e-commerce

companies, independent consultants,churches, and even dentists andlawyers who have created resonatorsand built growing and profitablebusinesses. Although they servea wide variety of markets, thesedifferent types of organizations allhave the same potential to discoverresonators. By being tuned in,they can listen intently, embracebuyer needs passionately, and workdiligently to create the best possiblecustomer experience.

Any organization—companies large and small, nonprofits,government agencies, entrepreneurs and independent

professionals, even churches, authors, and rock bands—canbenefit from getting tuned in, because they’ll start to create the

products and services that people want to buy.



5



STEP 1: Find Unresolved Problems How do we know what markets and productson which to focus?

Step 2: Understand Buyer Personas How do we identify who will buy our offering?

Step 3: Quantify the ImpactHow do we know if we have a potential winner?

Step 4: Create Breakthrough Experiences How do we build a competitive advantage?

Step 5: Articulate Powerful Ideas How do we establish memorable concepts that speakto the problems buyers have?

Step 6: Establish Authentic Connections How do we tell our buyers that we’ve solved theirproblems so they buy from us?

The Tuned In Processincludes six steps

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Why Didn’t We Think of That? Products and services that resonate.



The realtor who resonates

In our experience, real estate agentslack differentiation—other than thecompany names on their businesscards and the kind of cars they driveto ferry clients from house to house.Other than these characteristics,realtors seem interchangeable, don’t

they? When you go to list a home,a realtor says, “Sign here. We take6% commission, and I’ll need anexclusive agreement… By the way,how soon can you have the houseclean so I can show it?” And like mostsalespeople, many realtors immediately talk discounting by asking, “What’sthe lowest price you would sell thehome for?” By being insular and notunderstanding the true problems facedby people who want to sell theirhomes, the typical real estate agentfocuses on the wrong things.

We’ve often mused about howmuch more successful realtors

would be if they tuned in to theirmarketplaces. What if a realtor spenttime understanding market problemsfirst? Could he or she then build abreakthrough product experience in what most people say is a commodity business ? After all, real estate listingservices are all pretty much the same,right? What if this renegade agent alsoused the Tuned In Process to establishauthentic connections with buyers—

would they earn more business asa result? Could real estate servicesresonate and create a platform to builda thriving and profitable business?Could someone break out of the pack?

Well, we have our answer, or rather,our agent. His name is Russell Shaw,and he has been a realtor in thePhoenix area for 30 years. Shaw isassociated with a realty firm, butthat’s where his similarity with otherrealtors ends. He approaches buildingand marketing his services by beingtuned in. Shaw built his business,the Russell Shaw Group, by firstunderstanding the problems thatsellers face:

“I want my home to sell• fast. ”

“I want to• get as much money formy house as I can.”

“I would like to• avoid realtor’s commissions if I can, but I hesitateto try selling my home myself because of the risks involved.”

“If my realtor is not meeting my •expectations, I don’t want to be stuck with a long-term contract. ”

Shaw’s breakthrough productexperience is the “No Hassle Listing.”Using Shaw’s service, sellers list withhim for a reasonable 4% fee, but stillhave the option to sell their homesthemselves and owe him nothing(although they can still use RussellShaw Group to help with the escrow

work for a 1% fee if they wish).

“Our objectives are to get you themost money in the least time and

with the fewest hassles,” Shaw says.“We want to provide the best servicein the industry. Period. We want tomake you so satisfied you listed yourhome with us that you will gladly refer us to your friends.”

Shaw articulates his idea by statingthat he is “applying for a job” with

you. If you aren’t happy with thejob he does, you can fire him at any time with no obligations or costly

consequences. But odds are that you will be happy, because the averagehome listed with Russell Shaw Group,even during the slow 2007 housingmarket, sells in less than 30 days

(versus 108 days for other realtors inthe area), and most of Shaw’s listingssell for the full price. If you’ve eversold a home, you’ll likely agree withus that this idea is a resonator.

Shaw spent two years identifying

and refining his ideas about whichproblems resonate with home sellers.He tuned in. Shaw even givespotential clients a list of 14 questionsto ask his competitors, questionsthat show the No Hassle Listingsystem is in a class by itself. Shawgenerates so much business from itthat he requires a support staff of 16people, including six listing/buyingspecialists, two transaction managers,seven administrators, and even amarketing manager!

Finally, a realtor who understandsthe problems sellers face and has asolution for them! While the averagerealtor sells eight to 12 homes a year,and “top” realtors sell 22 to 30 homesa year, Shaw sold a remarkable 418homes in 2006.

“Many agents think their mostimportant job is satisfying thecustomer,” Shaw says. “I don’t thinkthat’s true. I believe that satisfyingthe customer is simply the minimumrequirement for staying in business. My staff and I work constantly to improveour systems, processes, and services togo well beyond the standard level of ‘service’ provided by most agents.”

Would you recommend your realtorto your friends?

We’re convinced that if tuned inpeople like Shaw can build a resonatorin a crowded and long-establishedmarket like real estate, you can too.



7

Why Didn’t We Think of That? Products and services that re



Getting tuned inHow hard is it to get connected to amarket and create a product or servicethat people want to buy? Based on ourdecades of experience working withthousands of companies, we’re here

to tell you that getting tuned in is not difficult. But creating a resonator doesrequire a new way of thinking abouthow you build products and servicesand how you introduce them to themarketplace. Most organizations aretuned out. In fact, we see all kinds of organizations make the same commonmistakes again and again.

Here are a few common mistakes thatcause products and services to fail:

Guessing • —Assuming company insiders know more than buyersdo about what they want to buy

Assuming • —Basing products andservices on what current customers request rather than on anunderstanding of unsolved problemsthat potential customers will pay money to fix

Telling • —Trying to create a need in the market by relying onexpensive advertising or an army of salespeople

We’ve developed the Tuned In Processto allow companies to create successagain and again. We see these sameprinciples at work in a wide range of successful product experiences, suchas business-to-business technology products, fast food chains, andprofessional services firms. We knowfor certain that if you apply the sixsteps of the Tuned In Process to yourown business (no matter what yousell), you will have a much betterchance at success.

The resonator

The process for replicating successstarts with getting tuned in topotential customers. Understanding

your market and your buyers throughin-depth interviewing is by farthe most effective way to discover

unresolved market problems thatpeople will pay money to solve.Meeting with potential buyers ontheir own turf (in their homes or

workplaces or even on the street)is the starting point for identifyinga resonator: a breakthrough productor service that buyers immediately understand has value to them, evenif they have never heard of yourcompany or its products before.The iPod is a resonator. Whenit launched, FedEx was a hugeresonator, and it still is.

The Anatomy of a Resonator:

The perfect solution to a•specific problem

A product or service that people• want to buy without being coerced

An offering that establishes a real•and direct connection to what yourmarket values most

An idea that people immediately •understand has value to them, even

if they have never heard of yourcompany or its productsand services

When you see a powerful, smartly articulated idea for a productor service that solves a problemfor you, such as the iPod (“1,000Songs in Your Pocket”) or FedEx(“When It Absolutely, Positively Has to Be There Overnight”), youimmediately grasp its meaning. It resonates. These words aren’t mere

taglines or slogans dreamed upby an agency and peddled withexpensive advertising. You can learnto systematically develop powerfulideas like these by studying theTuned In Process.

Tuned in organizations are much morelikely to create resonators. The cultureof tuned in companies incorporatesfocused, “outside-in” thinking, insteadof the typical inside-out orientation.In other words, the tuned in company constantly listens to, observes, andunderstands the problems that buyers

(“outsiders”) are willing to pay money to solve instead of holding endlessmeetings of company “insiders”—alltrying to guess what people want.The tuned in organization is alwayslooking for more opportunities tocreate resonators.

The tuned in organizationThe most successful organizations aretuned in to their markets. Leaders atthese companies largely ignore thecompetition. Instead, they focus theirenergies on the problems that buyersare willing to spend money to solve.The concept applies to any business,product, or service:

Tuned in companies • —large andsmall, established and upstart— resonate when they create productspeople want to buy. Nintendo’s Wiirevolutionized the gaming industry

when it created a fun, simple,interactive experience that enabledgroups of friends and families toplay virtual sports, action, and

war games without any previousexperience with video games.

The• tuned in entrepreneur solvesreal problems in the market ratherthan creating some widget becausehe or she thinks it’s cool. RichardBranson, a serial entrepreneur, hasdeveloped 350 companies over a30-year career through his Virginbrands, each aligned to solve adiscrete market problem that heand his team identified.

“1,000 Songs in Your Pocket”

“When It Absolutely, Positively Has To Be There Overnight”

8•



Why Didn’t We Think of That? Products and services that resonate.



The• tuned in professional services firm (lawyers, doctors, accountants)doesn’t just create a “me-too”practice and stick the same oldadvertisement in the Yellow Pages.Instead, these firms leverage thenew rules of marketing to build anonline audience. Search for anythingrelated to Kansas and family lawand you’ll find Grant D. Griffithsat the top of the list. Griffiths takesa thought-leadership approachto marketing his firm; and,consequently, he makes connectionsthat bring him several new potentialcustomers a week…free.

The• tuned in nonprofit understandspeople’s motivation for contributingmoney and time to a cause. Habitatfor Humanity has experienced more

than a decade of consistent growthin donations of time and money,due in a large part to its creativestrategies for partnering with localcommunity, church, youth, andgovernment organizations. Habitatfor Humanity has built more than200,000 homes.

The• tuned in politician understands voter problems and the reasons why people vote for a particularcandidate. Barack Obama’s campaignraised more than $31 million in its

initial phases (top among all U.S.presidential candidates in theearly part of 2007) with a platformcentered on a powerful idea, “ The Audacity of Hope. ” At this writing,the election is still a long way off,and Obama is not the frontrunner.But his upstart candidacy clearly resonates with many voters.

The• tuned in church connects topeople’s spiritual and emotionalneeds with services that resonateacross traditional and non-traditionalmediums. Joel Osteen now countsmore than 42,000 weekly attendeesat his services, and millionsmore through his TV and onlinecommunications. His book, Your Best Life Now, has sold more than2.5 million copies.

The• tuned in entertainer, rock band,or motivational speaker understandsthe tastes or needs of his potentialaudience. Jon Stewart tuned in to

young TV viewers and resurrecteda fake news program that attracted astrong and committed daily audienceon an obscure cable channel. Hishumor and creative representationof current events resonated acrossage groups, building a strongfollowing in his time slot.

We’d argue that the• tuned in job seeker creates a better picture of themselves as a candidate foremployment when they talk aboutsolving an employer’s problemsrather than embellishing theirown credentials.

IsTuned In for you? At this point, we suspect that you’resaying to yourself something such as“Hey, that’s obvious!” or “It soundseasy.” We frequently hear thesesorts of reactions when we presentthese ideas live in our speechesand seminars. If that’s what you’rethinking, you’re right! One of thebeautiful things about getting tunedin is that it’s easy to understand howto do it. In fact, many successfulbusiness leaders had been applyingthese principles successfully longbefore we began teaching the processor writing it down in this book.

But hold on!

You’re probably also thinking: “If it’s so easy to understand and itmakes so much sense, why don’tmore companies get tuned in?” As itturns out, numerous organizationalpitfalls can get in the way. We meet

with companies all the time whoseexecutives struggle to answer some

very basic questions:

What business are we in?•

What businesses are we• not in?

Who are our buyers?• What’s unique about what we offer?•

What’s our positioning strategy?•

How can we compete?•

Why do the other guys seem•to win more often?

How can we turn a profit?•

When we hit these walls with businessleaders, we ask ourselves why. Howcould they not have any answersto these fundamental questions?

What we’ve come to realize is thatmost business professionals justaren’t tuned in.

Rather than focusing on buyers and their problems, the organizations that struggle to resonate in their marketplace are the ones that develop offerings from the inside out.

Instead of going out into themarketplace to try to understandpeople’s problems and then bringingthis information back to the company,tuned out companies try to developproducts exclusively within theirown walls, based solely on whatthey already know. Then they try allsorts of gimmicks and buy expensiveadvertising to take the dissonant ideasout into the market. This inside-outapproach (what we call being tunedout) is much more likely to leadto failure—and to struggles withanswering questions like those above.

Craig Stull is founder and CEO of Pragmatic Marketing, Inc., and author of the industry-standard Pragmatic Marketing Framework, which has been used to train 45,000 entrepreneurs, executives, marketers, and product managers.

Phil Myers is President of Pragmatic Marketing, Inc. During his business career,he has led three technology start-ups through initial public offerings and launched seven products to market that became category leaders.

David Meerman Scott is the author of The New Rules of Marketing & PR ,a frequent keynote speaker, and the developer of Pragmatic Marketing’s New Rules of Marketing seminar.



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Why Didn’t We Think of That? Products and services that re



You can read more from Craig, Phil and David on their blog at www.TunedInblog.com

Authors of Tuned In: Uncover the extraordinary opportunities that lead to business breakthroughs (L to R) Craig Stull, Phil Myers,and David Meerman Scott

Why us?

Why now?

The authors recently spoke withKristyn Benmoussa, Editor-in-Chief of The Pragmatic Marketer , todiscuss the background for theTuned In book.

Q. Where did the idea forTuned In come from?The three of us had beenindependently studying whatmade some companies, productsand/or marketing campaignsresonate while others made usask “who hit the stupid buttonon that one?”. And our clientshad been telling us for yearsthat they wanted an overview of the process we teach, but in aneasy-to-digest package to share

with the whole organization. Werealized that we had discovereda market problem—a need fora book like this one—and that

we had the collective knowledgeto solve it.

Q. Why are there threeauthors?Because we couldn’t fit fournames on the cover? Seriously,the truth is, together we couldbuild the “whole solution”

where independently we wereonly focused on one aspectof the problem. One of thereally interesting things webegan to understand clearly from the research was that thethree dimensions of leadership,product management, andmarketing all suffered from thesame challenges. And that theconcept of “tuning in” was theplatform solution that allowedeach to excel.

Q. What research wentinto Tuned In ?

We knew a lot of things when we started the project. We hadindependent research telling usthat market-driven companies

were 31% more profitable, spenttwice as much on research as they did on development, and had 20%higher customer satisfaction rates.

We wanted to dig deeper thoughso we dug into the seven yearly surveys Pragmatic Marketing hasconducted since 2000, personally interviewed more than 100 CEO’sand organizational leaders, andran a quantitative analysis across2,700 respondents. The objective

was to identify and correlate the winning DNA behind successfulbusinesses, leaders, productsand marketing campaigns. Welearned exactly why some of theirproducts and services fail whileothers succeed.

Q. What is the essence ofwhat you uncovered?That getting tuned in isn’t just anice-to-have ingredient, it’s a got-to-have for success. We found thatit works for individuals in theirjobs, organizations in their plansfor growth and for virtually any key strategy decisions such ashow to choose which product toinvest in. The Tuned In Processidentifies six steps that are simplein their own right but so powerfulin combination that they form anactionable roadmap for creatingproducts, services, or ideas thatresonate right out the gate and,maybe even more importantly,sustain value over time.

10•





Q. Who should readTuned In ? Tuned In is for everyone whomarkets a product or service,from product managers tomarketers to leaders. Size of business or opportunity isirrelevant. We found singleemployee entrepreneurs,doctors, lawyers, politicians,authors, entertainers, evenrock stars who appliedthe process to succeed.Non-profits and for-profitbusinesses. Million dollarbusinesses to multi-billiondollar conglomerates. Highfliers to turnarounds. Thefoundation applies universally.

We developed the book toprovide a common baselinefor success in any situation.

Q. How easy was it todetermine who wastuned in and who wastuned out?

Easier than we initially thought. You simply observe

what they do and where they spend their time. Tuned in

companies know exactly whothey are—they’ve discovered what their market values mostand they operate in a worldof clarity. They spend timeon things that really matterand ignore those that don’t.Surprisingly, tuned incompanies spend very littletime worrying aboutcompetition. Tuned outindividuals and companiesare just the opposite. They self-justify, self-rationalize and

spend lots of time internally thrashing around identity-oriented questions like “whatbusiness are we really in?”

Q. What was thebiggest surprise in thebook research?For us, that experiencesmatter so much. Going in,

we suspected that a majoraccelerator to the Tuned InProcess was focusing onfinding problems vs. findingbreakthroughs. But, the

value of building a completecustomer experience andfocusing on all the touchpoints to ensure that they resonate and connect waspretty enlightening. When

we found a minister in Washington DC who createdthe fastest-growing churchby transforming the Sunday experience and each day of the week, we had a real “aha!moment.” It’s not the product,it’s the experience that is yourcompetitive edge.

Q. Is there anything you’ll do differently atPragmatic Marketingnow that you’ve writtenthe book?

Yes. Lots of things. One of the really compelling aspectsof the Tuned In concept isthat it isn’t a Six Sigma ratingsystem that takes you yearsto measure and a decade toperfect. It’s a daily index.

We do some things really well at Pragmatic Marketingotherwise we wouldn’t havehad such success. But, wecan tell you with certainty that we’ll move much morerapidly to continuously

improve the experience we offer our customers sothat adopting the PragmaticMarketing methodology is not an infrequenttraining exercise but aneveryday support systemthat enables our customersto be at their absolutebest at being tuned in.

P r e - o r d e r n o w

a n d g e t y o u r c o p y

h o t o f f t h e p r e s s e s i n J u n

Preorder atwww.PragmaticMarketing.c



11



The Pragmatic Marketing Framework is the standard forproduct managers and marketers at thousands of companies.Since 1993, more than 45,000 people have been trainedusing this market-driven approach to creating and launchingtechnology products.

Are your product management and marketingoverloaded with tactical activities, spending time supporting Development and Sales rathefocusing on the strategic issues of the organi

The Pragmatic Marketing Framework

© 1993-2008 Pragmatic Marketing



Visit www.PragmaticMarketing.com or call (800) 816-7861

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Align your organization with the market. Identify gaps between your current state and best practice to enable your strategy and tactics to focus on market-driven success.

Accelerate your product plan. Uncover the market problems your product can solve in its next release.

Optimize your go-to-market programs. Understand recent wins & losses, and how evaluators review youroffering to create compelling marketing messages in the language of your buyers.

For more than 35,000 visitors per month, PragmaticMarketing.com is a dynamic, growing resource center withhundreds of articles, tips and techniques, expert blogs, a job board, book reviews, informative webinars, linksto peer networking groups and much more.

In addition to the extensive published schedule,training can be conducted onsite at your officeallowing a more focused discussion for yourspecific goals.



By Paul Young and John Milburn

14•





Challenges in astart-up environment The Pragmatic Marketing Frameworkhelps define the strategic role of product management. It is organized

with strategic activities on the left,and it transitions to tactical ones onthe right. In a start-up environment,the overall lack of resources typically pressures the product manager tospend an inordinate amount of timeon the right, or tactical, side. There arerarely pre-sales engineers to delegatethe presentations to; no intranet FAQsor RFP responses; no “canned” demosto generate technical interest; nogo-to-market departments for launchactivities and plans. The “buck stopshere” with the product manager in astartup, and it can appear that productmanagement in a startup is hopelessly mired in tactical activities.

Let’s take a step back. What valuedoes a product manager add to astart-up environment, and is that

value primarily tactical?

In an established company, the roleof product management is usually fairly well defined. In a startup, you must define what being a productmanager means. Our experience isthat this means regularly asking forforgiveness instead of permission.

Time is your biggest enemy in astartup. Every second is precious,and you don’t have time to convenemeetings for minutiae.

At a large company, it may be enough to be a productmanager , but in a startup youmust be a product leader. Being a leader means that

you have the confidence

to invent a new way of doing thingsand to say “ This is our new productmanagement process.” You arethe only person who can define

what product management meansin a startup.

At a start-up company, your boss

doesn’t have the time to micromanage your activities, and you have to bea self-starter. Since startups attractsmart, confident people—all of whom

want to make an impact—the productmanager who doesn’t forcefully statehis or her strategies and lead theproduct will be pushed into beingtactical by default. To make this shift,

you have to live “on the framework”— the Pragmatic Marketing Framework.

Pragmatic Marketing teaches the what of product management. In a start-up

company, implementing the how isusually up to the product manager as well. In theory, executives, your boss,and your peers may understand thestrategic value of product management.In practice, there are so many tacticalactivities that need to get done thatproduct managers can easily findthemselves buried just trying to “keepthe lights on.” In order to transitionfrom the right side, or tactical side of the framework to the left, or strategic,product managers must think aboutthe value they bring—relative to how

the company came to be today.

Focus on focusing When the start-up company got itsinitial funding, on what facts did theinvestors base their decision to invest?From the left side of the PragmaticMarketing Framework, of course!

At a minimum, investors want to knowanswers to questions such as:

What is your competitive•differentiation and barriers to entry (Distinctive Competence)?

What market problems will your•company and its products solve(Market Problems)?

How will you beat the competition•(Competitive Analysis)?

Do you have a business case•(Business Case)?

As a result, some people may thinkthat all of the strategy work is done,and now it’s time for execution.Don’t buy it; if the executives wantedtactical, they could have hired a salesengineer, technical support rep, orproject manager for far less than they are paying for you. You, as the productmanager are uniquely positioned by

your dialogue with the market tospot the blind spots in the company’sstrategy and fill them with productor effective market positioning.

16•



To Startup or Not to Startup?



The Achilles’ heel of every startupis what happens after the initialfunding. Product managers are quickly pulled to the far right. There are salespeople to train and provide withtools, websites to build, tradeshows toquarterback, datasheet, press releasesand other collateral to proof, t-shirtsand hors d’œuvres for the VIPs toorder. What about lead generation oroutbound marketing activities? Whereare the whitepapers?

Where many product managers failin this environment is when they getmired in the tactical activities and lackthe strength or ability to return to theleft. That is a strong statement—but,if you find yourself constantly stuckon the right side, it may be time fora heart–to-heart talk with yourself or your boss.

The position of product manager is astrategic one. And, if your activities arecompletely tactical, you are either notadding the right kind of value, or youare no longer a product manager—

you are more like the product janitor . Even worse, you may bedirectly contributing to the company’sproblems by allowing everyone inthe company to be less market-facing.Product and planning decisionsthat are based solely on right-handinformation succeed on legacy

and luck. To become tuned in,a product manager must have theinternal fortitude to explain thatthe right side is a necessary ,but insufficient plan forcompany success.

In a start-up company, productmanagers must play a dual, andoftentimes schizophrenic role—anotheraspect that is drastically differentthan that of a large company. Productmanagers must ensure that deals arebeing closed, so they wind up selling

or in a sales support role. They areoften the authors of contracts andare closely involved with negotiatingdiscounts and other contract terms.But, while they are delivering on thetactics, they must work diligently to

build a vision and direction for theentire company that will take thembeyond the early wins and provide asound basis for future growth.

Startup product managers mustalso learn to deal effectively withegomaniacs. While definitely not

unique to young companies, startupshave a tendency to attract Type A, aggressive personalities. Often,the confidence required to founda company and grow it into anorganization large enough to requireproduct management spills intogeneral cockiness on the part of thefounding team. Some startups evenhave different classes of employees— those who were there from thebeginning and carry the war woundsof working inside the founder’s garage,and the new guys who just don’tunderstand (hint: You are the latter).The lead technical person who hasbeen there from the start will be thefirst to challenge you. “Who are youto tell us what to develop? Yeah, I’llread your fancy ‘MRD’ just as soon asI finish my impossibly long bug list(which means never).” This is a bigissue for a new product manager. Intheory, you wield great influence overthe products and decisions that drivethe company, but it won’t ever matterif the people you need to help you

aren’t on board with you. You must be aggressive, too, butchoose your battles. Build relationships

with the key players you need, such asthe V.P. of Development, or you’ll befinished before you start.

The risk/reward equationMost people believe that working for astart-up company entails much greaterpersonal risk than working for a large,established company. But, the financial

or career risk is debatable; just askanyone who’s been laid off from alarge company.

Venture capitalists will tell you thatstartups have a greater chance of success when the founders havemade a significant personal financialstake—that spending their own money creates a higher level of commitmentand desire to succeed. But, rarely arefounders of today’s start-up companiesinvesting their life’s savings or riskingthe security and futures of theirfamilies to start companies. Not thattheir investments aren’t sizable, but asa percentage of their overall wealth,most founders have fall-back strategies.

And if the venture fails, foundershave little difficulty finding othercompanies to lead.

But let’s go back to the productmanagers who weren’t founders. Hereagain, living through a company thatfails is not a “scarlet letter” againstfuture positions. Many executivesagree that product managers canlearn more through failed companiesthan with successes. In fact, having acouple of failures can actually enhance

your marketability for future positions– if you can demonstrate a learningeffect that benefits your next role.

Startups are all about taking greatrisks for great rewards, so a start-upcompany typically rewards a moreaggressive, risk-taking attitude toincrease the odds of the investors

getting a multiplier in return on theirinvestment. The freedom to takeproduct risks is more acceptable and

visible in a startup. But, successfulproduct managers in large companiesare also risk-takers. The difference isthat the exposure to failure is greaterin a start-up environment sinceproduct failures in large companiesare easier to absorb.



17

To Startup or Not to Startu



Money and lifeCan you make more money at astartup? Generally, no. Sure, we allknow product managers who arefinancially set for life because of anIPO or acquisition they were lucky enough to have lived through. But,for every one wealthy professional,

we can show you many more thatdid not make the big payday. Goodcompanies fail. The stock can becomeso diluted that only the largestinvestors or the original foundersmake any significant return. Yet many of us are still plugging away, withthe dream of a significant financialevent in the future.

For professionals with similareducation and experience, theoverall financial package (benefits,insurance, and salary) is generally higher in a large company thanin a startup. Even the foundersand C-level executives can usually make more in a large company. Butthat is not the point. Startups giveproduct managers the chance to stepup to higher responsibility levels,perhaps as a director or manager,much more quickly than in large,established companies.

The ability to lead other productmanagers and make hard decisionsis a key skill for which all product

managers should strive if they aspireto lead an organization in the future.Most successful product managers atstart-up companies will tell you thatthe compensation package is not why they are working so hard. Rather, it isbecause they love the independence,the responsibility level, the senseof achievement, and the overallthrill of winning that a start-upenvironment provides.

Work-life balance Achieving a good work-life balance is something

with which all productmanagers—regardless of company size, industry,or experience level— constantly struggle. Ina startup, the pressure ison to achieve results at allcosts. Often, this fosters aheightened sense of team,since everyone is in thesame boat—sink or float.The money counter isalways ticking, however,and most startups neverachieve profitability.

That pressure can manifestitself in ever-more hoursand ever-more encroachmentinto your personal time. Asin any company, achievinga good work-life balance is amatter of good time management,prioritization, and boundary-settingabilities. Turn off the “crackberry”and have a quiet dinner with yoursignificant other. Your email willstill be there in a few hours, and

your company should respect youfor drawing a line in the sand.

You can work in a startup andstill have a life—we do itevery day.

Should you work for astartup or a large company?Look in a mirror. Analyze what youare good at and enjoy doing:

Are you impatient? Or, to be even•clearer, do you have maniacalimpatience? If so, then a startupmight be a great fit. In largecompanies, patience and long-termplanning are more important to youroverall survival and career growth.

Aggressive behavior can be a huge•plus in a startup. A Darwinianapproach is often the only way tosucceed and survive. Teaming andcommunication skills are of fargreater importance than individualaggressiveness in large companies.

Paul Young is a product management professional with more than seven years of experience in hardware, software, and services product management

and marketing. Currently, he serves as the Director of Product Management at a high- tech startup in Austin, Texas. In the past 18 months, he has instituted the Pragmatic Marketing Framework, using it to drive more than a dozen successful products and features to market. Paul has also held product management

positions with NetSolve and Cisco Systems. You can read his blog at productbeautiful.com and can contact him at [email protected]

18•



To Startup or Not to Startup?



Are you driven by leading projects without•a formal organization structure, or do

you aspire to manage people andorganizations? Both startups and largecompanies need good managers andleaders, but there are many moremanagement opportunities in largecompanies than in startups.

Can you blaze new trails, or do you like•a well-worn and defined path? Pricing,

packaging, and market segmentation are very difficult in a start-up environment.There is no track record or installedbase to analyze, and sales people may

wield much more power in productdecisions. In large companies, thereare typically well-defined practices

and processes.

• Personal relationships in astartup are generally not as

deep or long-lasting as in largecompanies. The social networkin a startup is the drive to make thecompany successful—not in nurturing andsupporting the team. In large companies,teamwork and overall teaming skills arekey principles of behavior—and usually part of individual performance plans.

If you have the skills and attitude to workin a startup, don’t be afraid to make theleap. Good product management skills willfollow you. Regardless of where you ply

your trade, if you understand what it means

to be tuned in, if you remember that “youropinion, although interesting is irrelevant,”and if you have a good sense of what youare good at and like to do, then you willsucceed in any environment.

John Milburn is an instructor with Pragmatic Marketing, where he teaches Practical Product Management, Requirements that Work,and Pragmatic Roadmapping, as well as on-site workshops. Throughout his 20+-year career, he has managed and announced over 40 hardware and software products, as well as launched a venture-backed start-up company,Lane15 Software. He has also held product management and general management positions at IBM, Dell, VTel, and Texas Instruments. You can see John featured on Pragmatic Marketing’s online community (www.pragmaticmarketing.com) with written articles and webinars. Contact

John at [email protected]

Visit the online community atPragmaticMarketing.com

Review 8 years of • Annual ProductManagement and Marketing Survey results

Attend a• webinar by one of today’s industry thought-leaders

Read• hundreds of articles on productmanagement, marketing and leadership

strategies

Visit the• Job Board to see companies lookingto hire product managers and marketers

Read• profiles of companies who haveachieved success using the PragmaticMarketing Framework

Stay connected with your industry peers•by joining a local Product Management Association

Participate in• online networking withLinkedIn and Facebook groups

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For information on exhibit sales and sponsorships,contact National Sales Manager Carol Samost at

[email protected].

The SMP event is brought to you by King Content, publisher of Software Magazine.

The fourth annual SMP Event will takeplace from Wednesday to Friday, May 7-9,2008. The conference program willconcentrate on four themes:

Effective product managementEffective product marketingProduct portfolio managementExecutive management.

We will run four tracks of speakers overtwo days, open the event with a WelcomeReception and hold a NetworkingReception in the Exhibit Hall on Thursdayevening, May 8.

2008 SMP event exhibitors to date include:AutoDemoFeaturePlan/Ryma Technology SolutionsIdeascope (Orasi Software)

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For more information and updates visit www.smpevent.com



There is a problem in your firm that jeopardizing performance, reducingmorale and potentially sending your talent running for the doors. You are a contributor to this issue, and for thepart, neither you nor your peers are dmuch about it. Ironically, this problemeasily cured through focus, time andattention, and once cured, promises thelp you and your organization for years to come.

The problem—we promote our mostperformers into leadership roles witheffectively educating them on the chof leadership and then we leave themto sink or swim in this most difficult Time and again, well-intentioned malook around at the talent available tostrengthen their management ranks athey tap a high-performing individuacontributor, a superstar soloist, on theshoulder for promotion to the promiland of management.

And, why not promote our best and bto lead? After all, these individuals pthemselves as individual contributomanaging projects or products, or secustomers. Their high level of perforin the past bodes well for their potenas a manager. Or does it?

The answer is, “maybe,” or “it dependSmart people that perform at high leshould be challenged and their careedevelopment supported. It is core to leader’s role to seek out talented indand provide them with opportunitiesgrow their experience and increase thcontribution to the organization. The stop on the fast track development pis usually a stint in people managemsomething the superstar soloist is eatackle as part of their development. Tintentions are noble all of the way arso what’s wrong with this situation?

The New Leader Development DAnd How to By Art Petty and Rich Petro



21



Like so many plans in business andin life, it is not the intentions thatare flawed, but rather the execution.In our combined fifty plus years of leading and advising leaders, we haveobserved a common scenario play out hundreds of times across many companies and industries. Talentedearly-career professionals are thrustinto the minefield of leadership

without much more than a paton the back and a hearty, “goget ‘em tiger.”

Otherwise competent, experiencedleaders facilitate this process, perhapslosing track of the fact that leadingis hard work and doubly so for thenewly minted manager. They sendtheir most valuable players out intothe world to wander blindly through

the difficult and awkward leadershipstart-up process, and then wonder when things go awry.

Instead of establishing a solidmentoring and monitoring program,the interaction between the twoquickly reduces to task orientationor fire fighting, with “quality time”reserved for the annual performancereview. The fact that this scenariois so clearly wrong, does notkeep well-intentioned and capableexecutives from perpetuating this

vicious cycle over and over again.The irony is, that the cure is low cost,easy to implement, and all partiesfrom the new leader to the promotingmanager and the broader organizationstand to gain considerably fromimproving this process.

Leading effectively is hard workCore to our theme is that leadingeffectively is hard work, andbecoming a great leader requires time,experience and tremendous personal

commitment. Rare is the personthat steps out of an independentcontributor role and is immediately competent at the task of leading.

The challenges of motivating, guiding,developing and supporting others are

very different than the challenges thatthe soloist faces in managing theirown work or even collaborating withothers. The approaches to creatingan effective working environment,

building a culture of innovationor developing an operationally excellent team are generally learnedover time and through considerabletrial and error.

Given the complexities of moving

through start-up to competence asa leader, we believe that a processthat includes thoroughly educatingthe prospective new manager on therealities and challenges of leadership,and a focused program of mentoringand monitoring post-promotion

with the promoting manager, willdramatically improve the success rateand performance of new leaders.

Leadership development is a two-person processGiven the frequency that we haveobserved really smart people (leadersand aspiring leaders) end up in this“new leader development dilemma,”it would be easy to focus fault onthe promoting manager for failingto properly screen and educatecandidates pre-promotion, as wellas for failure to provide the propermentoring and guidance so criticalto the effective start-up of the newmanager. And while this blame ispartially deserved by the promotingmanager, the superstar soloist cumnew manager is not without culpability in creating this dilemma.

The decision to pursue a leadershiprole is a significant choice and oftenmade for all of the wrong reasonsand in ignorance of the real role of aleader. Many early career professionals

view “management” as the fast track,and the best way to quickly improvecompensation, get a nice title on thebusiness card and maybe even landan office with a door.

The combination of the aspiringmanager focusing on the “allure of the visible,” and the promoting managernot effectively pre-educating thecandidate or providing the appropriatestructure support post-promotion,is the double whammy that almostguarantees less than optimal results.This dilemma is only resolved throughthe focus and combined effortsof both parties.

The costs of perpetuating pooleadership development practiOrganizations and leaders that lackthe rigor to pre-educate and thenmentor and monitor their newmanagement talent, incur significantand recurring costs, both opportunity and real. The true impact of mismanaging this process is only partially visible on the expense linethrough recruiting and training costs,

while the most serious effects are asa result of the loss of experienced,high-potential knowledge workers andthe resultant impact of these losses onlong-term business performance.

Consider the following four stresspoints from mismanaging the new-leadership development process:

Your high-potential talent is•almost assured to flounder or fail,potentially risking their long-terminvolvement with the firm.

The morale and performance of the•broader team is adversely affected asthe new leader operates unguidedand makes frequent rookie mistakes.

Teams under-perform as a result•of mismanagement, jeopardizingthe achievement of key objectives.Missed milestones, project misfires

or quality problems are materialissues to organizations, and poormanagement practices are alwaysat the center of these problems.

The future of the organization is•jeopardized if a talent drain becomesepidemic. Your best people are theleast likely to put up with shoddy management practices, and will mostdefinitely seek greener pastures.

It is difficult to fathom many otherscenarios that are more damaging toan organization’s short and long-termsuccess than mismanaging the talentpool. The costs of the above issuesare well documented in the annalsof business schools and writings,and the impact of missing deadlines,mistreating clients and generally operating with a disgruntled workforce are obvious.

22•





Ironically, the fi rst steps toeradicating these problems areeasily implemented, low cost andguaranteed to provide improvedresults. Once institutionalized, thesepositive new leader developmentpractices promise to pay dividendsfar into the future!

Leadership screeningPart of your job is to ensure that thecandidate does their homework.

We have all seen the disastrousresults of a high-performing individualcontributor moving into a leadershiprole only to fail. The sports world isrife with examples of former all starsmoving into coaching positions andthen falling flat on their faces. Theskills that helped them electrify crowds as an individual performerare very different than the skillsrequired for successful coaching. Thegut wrenching part is that the failureis not from lack of effort or desire,but rather an issue of fit.

As a manager, you must be keenly aware of the need for professionalsto make thoughtful and informedcareer decisions. While it is never yourrole to make career path decisionsfor others, you can work to ensurethat the aspiring leader understandsthe role they are considering andthe demands that this role willplace on them.

Our experience has sold us on the value of applying basic, grass rootspractices in developing team members.

While we all read about well-healedcorporations with vast training anddevelopment programs, the fact is thatmost managers do not find themselvesin those settings. In the absence of

vast resources, good old-fashionedcommon sense can carry the day.

A great way to help an associateconsidering a career in leadership isto challenge them to research andthink through the answers to threefundamental questions:

Are you familiar with the skills•necessary to lead?

Do you understand what it’s like•to live in a leader’s shoes?

Do you personally own the decision•to pursue a leadership role?

The first two questions are really asking the individual to understandthat the skills that electrified crowdsin the past are different than the skillsthat will mold and motivate a teamas a leader. A helpful starting place isto provide the aspiring manager thefollowing two tables, which contrastthe roles of individual contributoras well as the skills required foreach role.

The tables and questions are what werefer to as “Dialogue Helper,” usefulfor kicking off difficult discussions anddriving focus to the right issues. It isessential for both parties: the aspiringleader and the promoting managerto talk with candor and open mindsregarding the realities, challenges andrewards of leadership, and comparingand contrasting the roles is a usefulstarting point.

Skill ContrastsIndividual Contributor Leader

Problem SolvingLike to cross problems off your list.Focus on solution and task completion.Tendency toward convergent thinking toidentify solution sets.

Excited by problems and see them as opportunities.Divergent thinking prevails as a means to evaluate thepossible “what ifs” which could provide quantum leaps.

Comfort with Ambiguity

Routines and procedures are generally structured, escalation process and rulesof engagement predetermined.

Responsible for determining appropriate next steps inuncharted areas. What is or isn’t allowed is significantly broader and often unclear.

Role ContrastsIndividual Contributor Leader

Accountability

Largely accountable for your own work,

and to a lesser degree collaborating withothers. You will be largely responsible forassuring your own skills stay applicable,competitive.

Emphasis on deliverables executed by others, emphasis

on collaboration within your team and across teams.Ultimately, you are judged by how much you get out of others, and characteristics beyond pure output are alsocritical. Establishing an environment that is creative,collaborative and results-oriented is important. Developingothers will also be a key requirement.

Working“ lifestyle”

Work-related issues are more likely leftat work. Infrequent demands on yourtime beyond 9-5. Stress is often centeredon tangible things such as deliverables,deadlines and sometimes problem-solving.

Expect to take work home, to ball games, on vacation, etc.Stress often comes from less tangible, “what if” aspects of this role. Plan to have constant “contact capability” with

your peers, manager and perhaps customers. The higherthe level, the less likely the work is to revolve around theclock or calendar.



23

The New Leader Development Dilemma and How t



Another valuable discussion tool is TheLeader’s Charter™ reproduced below,

which describes in general terms, thescope and responsibilities of a leader.

With apologies for the run-onsentence, this powerful descriptionof a leader’s role can serve as aneducation tool as well as the outlinefor a detailed discussion over whatit means to lead and the mind-setand commitment that it takes to besuccessful. Additionally, the Chartergoes beyond the contrasts of thetwo sides of the career ladder (soloperformer or leader) and sheds lightson expectations for performance.

Who owns the decision topursue a leadership role?There is a bit more art to managingthe process around the third

leadership screening question andthe “ownership” of the decisionto pursue a leadership role. As anexperienced leader, much like aparent, knowing when, where, andhow much to push is a judgment callthat varies from person to personand situation to situation. You wantto encourage people who exhibitpotential for leadership but you wantto avoid imposing your desires or

values on them.

As a leader or a parent, youunderstand how easy it is to influencethe people around you. If you haveencouraged your daughter to play tennis but she really prefers golf, youshouldn’t force her to step on thecourt. Pushing her to be the numberone singles player against her will,or promoting a highly competentand happy individual contributor toa management role for the wrongreasons are costly leadership mistakes.Ultimately, it is the leader’s role toprovide opportunities and insightson career options for their associates,leaving the decision of what choicesto pursue to the individual.

Don’t forget to leverage your Human Resources teamFinally, in order to help others withtheir career plans, you need to beaware of what opportunities areavailable in your firm. You should havecomprehensive knowledge of careeralternatives and likely developmentplans in your organization, and if youdo not, schedule some quality time

with your Human Resources executive.If your organization is young orhas not formalized their philosophy and approach to developing theirpeople, then take the initiative to

work with some other managers andcreate a framework for this importanttopic. Not having a good answer oncareer path options for the talentedprofessional sitting across the deskfrom you is simply not acceptable.

Your commitments to helping yourcharges understand their careerchoices as well as the implications of these choices (for example, the very different lives of leaders and individualcontributors) are foundational tohelping everyone make informed andeffective decisions. The pre-promotiondiscussions are learning experiencesfor all parties, and essential tohelping you and your talentedassociates avoid the new leadershipdevelopment dilemma.

The Leader’s Charter

Your primary role as a leader is to create an environment that facilitates high individual and team

performance against company and industry standards,innovation in process, programs and approaches,

collaboration where necessary for objective achievement and the development of your associates in roles that

leverage their talents and interests and that challenge them to pursue new and greater accomplishments.

24•





The work of building a leaderbegins after the promotionOnce all the parties have conductedtheir due diligence and decided toproceed with the promotion of asoloist to a first-time manager, thereal work of leadership developmentbegins. The promoting manager’s closeinvolvement at this stage is essential tothe effective development of the newleader. An important first step for thepromoting manager is to establish a“Leadership Development To-Do” listthat includes the following:

Provide the new manager with a •clear picture of the organization’s strategies and objectives.

The new manager must have contextfor their role, and this can only begained through a solid understandingof the organization’s strategies, key objectives and the role that the newmanager is expected to play instrategy execution.

The objective for all managersshould be to have their charges onthe same page, and this discussionstarts with what is going on in themarket and how the firm seesthemselves growing, innovating andbeating the competition. Additionally,the new manager will quickly needto ensure that their team’s activitiesare aligned with the firm’s objectives,and an understanding of thestrategies, objectives and marketforces is essential to realizingthis alignment.

Clarify the primary mission •of the new manager

The grounding in strategy andobjectives is fundamental knowledgerequired by the new manager, and adetailed understanding of their role

in executing against these objectivesis key to garnering quick results. Thenew manager needs to understand

where they fit on the continuum of caretaker to change agent, and whatautonomy they have for prosecutingtheir mission. The promoting andnew managers must be on the samepage for all parties to succeed,and this important context aroundmission is the responsibility of thepromoting manager to describe andthen to support.

Collaborate with the new manager •on a 100-day start-up plan

While the context suggested in thefirst two items is critical knowledgefor the new manager, what to do

with it is equally important. Weadvise promoting managers to

work with their newly mintedleaders and formalize a 100-day start-up plan that includes issuesranging from introductions andgetting to know the team toevaluating key staff members,adjusting priorities and introducingnew processes or approaches.Inherent in this plan developmentis that the promoting managerunderstands clearly what they

want from the function and wherethey want their new managerto invest their time.

The 100-day action plan is essentialto help the new leader understand

what they should be doing andserves as a great opportunity for alignment between the twomanagers. At a minimum, progressagainst the plan as well as therelevance of the objectives and taskson the plan should be reviewedevery two weeks by both partiesand updated accordingly.

Establish a detailed communications • plan with the new manager

To ensure that the properamount (and type) of guidanceis provided the new leader, weencourage promoting managers

to establish a communicationsplan that encompasses fourtypes of interactions: operational,developmental, emergency and ad hoc.

Regular weekly operationsdiscussions provide the opportunity to review priorities (the 100-day plan), milestone achievement,problems and potentialcountermeasures. Developmentaldiscussions should occur monthly and focus on the new leader’sperformance, lessons-learned,staff development and complexpeople/team issues.

Emergency discussions are hopefully rare, and we simply recommendthat there is an established protocolfor the two on how to handle 911topics. Implicit in a good 911 planis the understanding of what anemergency is, and the agreementof the promoting manager that they

will shift gears immediately and pay attention if the alarm rings.

And finally, the promotingmanager should seek out ampleopportunities for “no agenda” orad hoc discussions to “touch base”and casually see how things aregoing. Taken together, the disciplineestablished through formaldiscussions on operations anddevelopment, access for emergenciesand frequent unscheduledconversation, combine to ensurethat the two managers stay inlock step with each other duringthe crucial start-up phase. Of coursethis communications structure

works great for leaders and theirexperienced managers as well.



25

The New Leader Development Dilemma and How t



© Strategy & Management Innovations, LLC.Reprinted with permission.

Art Petty, founder and principal, is a leader, strategist and team-builder with over 22 years of experience directing the growth, global expansion and rise to market leadership of large and small organizations in a variety of industries.

Petty’s employer and client list includes firms in the software, business intelligence, professional services, electronics, life safety, building automation,retail automation, direct marketing and mailing automation markets in the U.S., Europe and Asia.

Art is an accomplished speaker and published writer. His consulting focus emphasizes the integration of pragmatic strategy development,disciplined execution of the strategy plan and constant cultivation of leadership talent. You can reach Art at [email protected]

Rich Petro, Leadership Practice Lead and Principal in the firm is an accomplished executive leader with nearly 25 years of human resources experience in settings varying from manufacturing to services to software,large and small organizations,

and both private and public entities. Rich blends a comprehensive understanding of all facets of

human resources with solid business acumen to develop unique, forward-thinking solutions to the most challenging problems. He has particularly strong skills in assessment, leadership development and succession planning and he sees these key areas as inextricably linked not only to each other, but to overall organizational success.

Rich is an accomplished speaker and presenter, and has personally developed many programs and seminars on topics that included compliance, leadership

philosophy and applied skills. You can reach Rich at [email protected]

Art and Rich are the authors of Practical Lessons in Leadership—A Guidebook for Aspiring and Experienced Leaders , published in 2007.

Tying it all togetherCreating a culture of effective leadershipdevelopment doesn’t require expensiveconsultants and large training budgets.It starts with recognition by the seniorleadership that successful identification and

development of their next generation of leaders is a priority objective in line withthe firm’s overall strategy.

The simple steps of educating prospectivenew managers on the realities andchallenges of leading will work to minimizecostly, mistaken promotions. Honest andopen dialogue about the different skillsrequired for success as an individualcontributor or a leader, and discussingthe expectations of a leader as describedin the Leader’s Charter, are powerfulpre-promotion tools.

Once a decision has been made to proceed,the promoting manager must establish andcommit to a discipline of education andcommunication to help the new leaderthrough the start-up phase. The costs fromfailing at the development of new leadersare astronomical and the benefits fromsucceeding remarkable.

It is within your power to transform yourorganization’s leadership developmenteffectiveness, and your only investment will be your time. After all, you are aleader and time and attention are your

most valuable currencies.

Take-awayIf you take away one high-levelobservation from this article let it bethis: practices are more powerful thanprograms. You may have internal orexternal programs at your disposal,but they are not a substitute for youractive involvement in developingnew leaders.

We have presented an outline forsolving this profound and costly dilemma that requires just oneknown resource (yourself), noout-of-pocket expenses, and canbe implemented immediately.Now it’s up to you to do yourpart in breaking the back of thenew leadership developmentdilemma in your firm!

26•



The New Leader Development Dilemma and How to Fix It



Achieving Best Practice inProduct Management and Marketing

with Pragmatic Marketing

To gain a better understanding of what Pragmatic Marketing can do for you, please

visit www.pragmaticmarketing.com/services or call (800) 816-7861.

Implementation of any changeframework is hard. As an executiveor business unit leader, you know thesteps involved and could probably doit yourself. But your goal is to driveprofit, customer satisfaction or othercorporate metrics, not change internalprocesses. You just don’t have the timeor resources to lead the effort, and bea coach to the entire team.

What you need is a trusted consultant who knows your business and canimplement enough process to createefficiencies without forcing the entirecompany through an upheaval. Withan expert you trust, there is no trialand error but immediate resultsin the key areas of success for amarket-driven company:

Market sensing•

Speed to market•

Product adoption•

Product launch•

Customer satisfaction•

As experts in what works and whatdoesn’t, Pragmatic Marketing canaccelerate your implementation of amarket-driven framework, helping youchange the organization rapidly andeffectively with minimum disruption.The seminars and workshops we teachhave provided the basis for successfulshifts in corporate strategy, break-through products and market-leadershippositions for many organizations.Quite simply, the Pragmatic MarketingFramework has become the industry standard because it works!

Engagement Details A usual project begins with aknowledge exchange, in whichmembers of your executive team review

what it means to be truly market-drivenand how your current organizationis aligned to meet that goal. Withan understanding of your current

environment, Pragmatic Marketingcan then suggest a course of action toachieve success that includes one ormore of the following:

Alignment with your market by •identifying gaps between your currentorganizational state and best practice,then creating a plan to addressthe misalignment.

Acceleration of your product plan by •uncovering market problems whichcan be used to develop the businesscase for new product development.

Optimization of your go-to-market•programs by analyzing your existingsolutions to current market problems,and using this knowledge to drivemarketing programs and saleseffectiveness.

Reinforcement of market-driven•principles by delivering a series of tactical sessions focused on specifictasks from the Pragmatic MarketingFramework.



27



When it comes to creating newproducts, most are never influencedor validated by the actual people

who buy and use them. All too often,products are conceived by designersin the following way:

“ What a great idea! I don’t know what market problem it solves or what market need it fills,but I know ‘I’ will like it.”

Designers are not typically users of a product, yet they often engineera product with little or no enduser involvement—and withoutunderstanding in advance how it

will be received by the targetedaudience. It’s a risky proposition.Unfortunately, history suggests thatmost products designed in this way

will be market failures.

To design a successful product, youmust figure out who is going to useit and understand what problem itis solving. But let’s take it one stepfurther…for maximum success,products should be co-designedby the intended audience.

What is co-design?Co-design is a participatory designpractice following User-CenteredDesign (UCD). It involves targetedusers—whether they are responsiblefor buying the product or simply usingit—to create market-driven productsthat create more customer demand,user adoption, satisfaction, and,ultimately, product profitability.

By interacting, observing, andunderstanding what users need—andby bringing target users in from theoutside to design products—co-designincreases the likelihood of productmanagement (and product!) success.Beyond that, by getting users involvedto co-design the product early on, youcan avoid the costly fixes later due tocommitting expensive resources andtime without a user-centric design.

Before you begina co-design project There are three key points toconsider before embarking onany co-design project:

1. Collaboration is king. Co-designedproducts are created with designers,customers, and/or users workingtogether collaboratively. It is notjust a process—it’s a philosophy.The designer holds target usersin high esteem and considersthem experts in the product areabecause they ARE. Customers andusers participate as equal memberson the design team.

UTILIZINGCO-DESIGNTO CREATEMARKET-DRIVEN

PRODUCTS By Patrick Howell

28•





2. Keep it in context. Throughuser research or contextualinquiry—the study of users in theirenvironments—product managersare able to identify “problemopportunities” and verify them by observing and gathering field data

from users in their daily context.This contextual knowledge servesas the initial input to create userpersonas, scenarios, and, eventually,a design solution. What’s importantto remember: The more time youspend understanding user context,the less time and money you willspend solving the problem.

3. Start by defining the “who.” Aproduct must be designed to enableusers to achieve goals—effectively and efficiently making his/her

tasks easier to perform with theproduct than without it. Userpersonas (profiles) are created tobaseline user needs, expectations,demographics, and target marketsegmentation. Clearly defining who

will be using the product is themost critical step before co-designcan begin.

Tips for planning an effectiveco-design workshopProper planning is essential to conducta co-design workshop. Here aresome tips that will help you achieveco-design success:

Be prepared. Review all of your•research and analysis to ensurethorough knowledge of theproblem domain. How are usersaccomplishing things today? Whatare the issues? Create user scenariosthat represent current workflows toutilize during the co-design session.Prepare an agenda with a clearunderstanding and purpose of eachagenda item and the techniques you

will use. Confirm attendees andensure all participants are notified

of dates and times.Choose participants carefully.•

Attendees at the co-design workshopshould include:

– A facilitator and also a separatenote-taker to capture detailedfield notes

– A minimum of two target usersand a maximum of eight

– One developer (engineer) to gaininsight, user context, and thebuy-in of others

Location, location, location. Reserve•the right type of space—participantsmust be comfortable during the

workshop. Plan to use flipcharts andPost-it notes to capture details andconcepts. Make sure to have plenty of table space and a whiteboard.Bring a digital camera to capture

whiteboard notes and concepts.

Give your users a voice. Always•remember to ensure you give usersa voice in the co-design process.They know more than you doabout their jobs, experience, useenvironments, needs, and wants.Understand that they are never

wrong. Don’t tell them what they should do. Don’t lead them; they often will simply follow. Lastly,remember who will be buying theproduct after its release.

Identify product champions. These•customers/users are incredibly creative and provide fantasticproduct ideas and solutions. They

will want to stay involved long-term.

Interviews, user observation, and user surveys will help you understand user goals and tasks.Unlike traditional interviews, these techniques consist of watching users do their work andinteract with colleagues. Here’s what to look for:

Are users efficient?•

Do they have the information they need?•

What information is most relevant?•

What are the environmental conditions like?•

Are there environmental constraints?•

What is automated vs. manual?•

What is missing?•

Do they have physical constraints?•

What are their key job requirements?•

The goal is to gather as much data as possible from these exercises to define thecharacteristics of your audience and what problem(s) your new design will solve.

Answering key questions BEFORE a design workshop



29



Patrick Howell is VP of Product Design for neubloc, LLC.,an international software product design and development

firm. He has more than 20 years experience as an interaction architect and graphic user interface designer. He leads a team of award-winning Information Architects, Usability Engineers and Graphic Designers. neubloc helps their clients produce

market-driven products, from strategy to execution and maintenance using onshore and offshore resources. To contact neubloc , email

[email protected] or [email protected] or visit www.neubloc.com

Guiding a co-design workshopto optimize results Having up to eight people in a

working session at the same time canbe challenging. Providing structure

will keep the workshop focused andproductive. Here are three steps tohelp you guide a successfulco-design workshop:

Step 1 Get started

Clearly communicate the agenda•and then ask participants tointroduce themselves. Next, providea quick overview of what usability means; this will be an opportunity to get participants thinking aboutuseable products and why they

are participating as experts. Clearly communicate objectives andexpectations, and identify whateach participant expects as anoutcome of the workshop.

Referencing user scenario diagrams,•discuss existing system and domainissues and validate the workflow. Besure to capture refinements throughdiagramming to extract and structurethe issues. It puts your participants’input into proper context. Whenfinished, identify and document theusability goals that the design mustmeet. Does the product need toenable efficiency? Does it need tobe easy to learn? How frequently

will it be used?

Step 2 Let the co-design begin

After goals have been defined and•are visible to all participants, let theco-design exercise begin! Use someunfinished concepts or competingproducts as a catalyst, good and bad,to get the creative juices flowing.

You will learn just as much from thebad ideas as you will from the good.Most importantly, your participants

will be encouraged to contribute.

Engage users for concepts, but never•reject an idea. Simply put it on theback burner for future use or anotherneed. When hearing suggestions,have that person illustrate or drawthe concept rather than the facilitator.It will create a sense of ownership.

Tape concepts and screens (if a• software product) to the wall for allto see. Keep moving around theroom to keep it interactive andexciting. The more fun participantsare having, the better thedesign session.

Step 3 Test and validate

The co-design process is iterative.• After the session, the designer usesthe output of the workshop as adesign input. Users aren’t off thehook yet! After a high-level prototypeproduct has been developed,conduct a usability study to test therefined design. This form of testingis performed one-on-one betweenfacilitator and user. Throughstructured usability testing of tasks,the effectiveness, efficiency, andsatisfaction of the design can bemeasured without leading orinfluencing users.

Target users will again give you• valuable insight and feedback, which helps refine the design

before expensive developmentbegins. Depending on thecomplexity and size of the designeffort, this step is often repeatedto cover different features and/ordesign enhancements.

Back to the futureBefore you release your product tomarket, create mechanisms to monitor

what users and buyers think of yourproduct. Build an online community experience that allows users andbuyers of your product to share ideas

with one another. Users will openly discuss popular features…and thosethat are not. You will literally get aglimpse into future improvements.

In addition, users may provide insightto unintended uses of the product.Either a new market opportunity ornew feature ideas will surface. Thebest way to maintain the lifecycle of

your product is to know what users will want in the future.

30•



Utilizing Co-Design to Create Market-Driven Products



Visit www.PragmaticMarketing.com or call (800) 816-7861

Is your company getting the most from its invin product management and marketing?

Does your product management and marketing fumore structure or a repeatable process?

ragmatic Marketing’s seminars have been attended by more than 45,000 product management and marketing

In addition to the extensive published schedule, training can be conductedonsite at your office, saving travel time and costs for attendees, and allowing

a much more focused discussion on internal, critical issues.

Training Seminarsfor Product Management

Practical Product Management defines thestrategic role of product management using thePragmatic Marketing Framework. From how toidentify market problems to delivering a successfulproduct plan.

Requirements That Work shows how to createa Market Requirements Document (MRD) usingpersonas, goals, and use cases that everyone onthe product team can understand.

Pragmatic Roadmapping teaches techniquesfor developing, consolidating and communicatingproduct plans, strategy and vision to multipleaudiences—both inside and outside the company.

Training Seminarsfor Product Marketing

Effective Product Marketing teaches how tocreate successful go-to-market strategies using astructured, repeatable framework that supports anorganization’s goals for growth in revenue, marketawareness and customer retention.

New Rules of Marketing shows how to harnessthe power of online marketing using blogs, viralmarketing, podcasts, video, search engine marketingand thought-leadership to reach buyers directly.



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BPhilad

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AtlantaSan Diego

Tampa

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The Pragmatic Marketer™ 8910 E. Rai ntre e Drive • Scottsdale, AZ 85260

New Rules of Marketing

Visit our website for future dates in these cities!

Upcoming SeminarsCall (800) 816-7861 or go to www.pragmaticmarketing.com to register

Practical Product Management ® Requirements That Work ™ Effective Product Marketin

ntroduces a framework that gives product managers theools to deliver market-driven products that people want touy. Focuses on the practical aspects of juggling daily tacticalemands of supporting the channel with strategic activitiesecessary to become expert on the market.

Delivers practical tools and processes industry marketing and marketing com who want to improve their strategic co with the sales organization. Learn howprocess to develop, execute and measustrategies that ensure product success.

April 21 - 22 (23)* .........Boston (Waltham), MAApril 21 - 22 (23)* .........San Francisco (Burlingame), CA

April 28 - 29 (30)* ........San Diego (Del Mar), CAMay 5 - 6 (7)* ...............Toronto, ON, CanadaMay 7 - 8 (9)* ...............Austin, TXMay 13 - 14 (15)* ..........Raleigh (Durham), NCMay 13 - 14 (15)* ..........San Francisco (Burlingame), CAMay 19 - 20 (21)* ..........Reston, VAMay 19 - 20 (21)* ..........St. Louis (Chesterfield), MOune 2 - 3 (4)* ...............Boston (Bedford), MAune 9 - 10 (11)* ...........Birmingham, ALune 9 - 10 (11)* ...........San Francisco (Burlingame), CAune 17 - 18 (19)* .........Newark, NJune 17 - 18 (19)* .........San Francisco (Palo Alto), CA

une 23 - 24 (25)* .........San Francisco, CAune 25 - 26 (27)* ........Montreal, QC, Canadauly 7 - 8 (9)*................San Francisco (Burlingame), CAuly 9 - 10 (11)* ............Boston (Bedford), MAuly 15 - 16 (17)* ..........Minneapolis, MNuly 21 - 22 (23)*..........San Francisco (Burlingame), CAuly 21 - 22 (23)*..........Toronto, ON, Canadauly 28 - 29 (30)* .........Columbus, OH

Day 3 is Requirements That Work

April 23 .........................Boston (Waltham), MAApril 23 .........................San Francisco (Burlingame), CA

April 30 .........................San Diego (Del Mar), CAMay 7 ............................Toronto, ON, CanadaMay 9 ............................Austin, TXMay 15 ..........................Raleigh (Durham), NCMay 15 ..........................San Francisco (Burlingame), CAMay 21 ..........................Reston, VAMay 21 ..........................St. Louis (Chesterfield), MOJune 4 ...........................Boston (Bedford), MAJune 11 ..........................Birmingham, ALJune 11 ..........................San Francisco (Burlingame), CAJune 19 ..........................Newark, NJJune 19 ..........................San Francisco (Palo Alto), CA

June 25 .........................San Francisco, CAJune 27 .........................Montreal, QC, CanadaJuly 9 ............................San Francisco (Burlingame), CAJuly 11 ...........................Boston (Bedford), MAJuly 17...........................Minneapolis, MNJuly 23 ..........................San Francisco (Burlingame), CAJuly 23 ..........................Toronto, ON, CanadaJuly 30 ..........................Columbus, OH

Provides a repeatable method for product planning resultingin a Market Requirements Document that others read anduse. Establishes clear roles for product planning teammembers and teaches a process that creates an executableplan that delivers solutions that sell.

April 22 - 23 ..................Austin, TX

April 29 - 30 ..................PhiladelphMay 6 - 7 .......................San FranciMay 13 - 14 ...................Toronto, OJune 3 - 4 ......................Chicago (NJune 10 - 11...................Boston (BedJuly 16 - 17 ...................San FrancisJuly 23 - 24 ...................Atlanta, GA

Teaches technology company marketthe power of online marketing using podcasts, video, search engine markthought-leadership. Learn a step-by-sbuilding an online marketing strategyactionable plan to reach your buyers

May 8 ............................San FranciMay 15 ..........................Toronto, ONJune 5 ...........................Chicago (NJune 12..........................Boston (BedfoJuly 15...........................San FrancisJuly 22 ..........................Atlanta, GA

April 29 .........................San Francisco (Burlingame), CAune 6 ...........................Austin, TX

Pragmatic Roadmapping ™

ffers techniques for developing, consolidating andommunicating product plans and vision to multipleudiences—both inside and outside the company. Designedor members of the product management, marketing andevelopment teams tasked with planning product directionnd communicating product strategy.

pragmatic marketer: volume 6, issue 2

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