entrepreneurs

Jobs to be Done? It's All About Substitutes

img.phpWhen thinking about who your real competition is, it is helpful to step back and think broadly about all the different ways that the problem you're addressing can be solved. Clay Christensen and his disciples have come up with a framework - Jobs to be Done - and are trying to create a movement around this concept to help understand the competitive environment and how to refine products. They've even created their own hashtag - #JTBD - on Twitter to engage others in the conversation. But is it really that new?

To me, this is just a reformulation of the economics concept of a substitute (let's skip the math for now). The challenge for people in technology is that they tend to consider only perfect substitutes - competition that looks, smells and tastes like them - instead of stepping back and considering gross (or net) substitutes. To me, that's all this "jobs to be done" stuff is about - what are other ways that people are going about solving their problems?

A good example of this is when I was at a client discussing the merit of spending marketing dollars to promote a marquee feature of a product - photo sharing - that no one was using. When I asked the product manager who the competition was for this feature, he immediately started listing all the products in their space - little black boxes that were networked-enabled and had storage options.

The real answer was Facebook and Instagram (and now Google, Apple and Dropbox, among others). The product manager didn't step back to understand what are the real alternatives (the substitutes) for the act of storing and sharing photos with others rather than just other consumer electronics that have some photo sharing capabilities (or not).

No amount of "marketing" to promote this feature would have helped. Consumers already left this feature behind, which is why there was no adoption.

So, as a product manager, it is important to understand not only what a feature does, but also why it should exist and how it solves a problem in a way that's better than what they do today in general. Step out of your own space and look around. And if you need the #JTBD framework to help you, that's fine. You should be thinking that way anyway.

Top Ten Best Practices for Managing Your Board

One of the most challenging things an entrepreneur must do is communicate effectively with his or her board. After spending countless hours with lots of entrepreneurs helping them prepare for board meetings and working with lots of boards to get what they need from their entrepreneurs, I’ve come up with a list of ten practices that make for good relations with this critical group of experts as you build your product and get it ready to go to market. How many of these do you regularly practice today? Choose the ones where you're deficient, and dig in. You'll get more out of your board relationships, and so will they.

  1. Understand how the board operates. Who is the alpha dog? How do the members communicate with each other? Know who your sponsor is. Respect the structure and fit in.
  2. Organize your thoughts ahead of time. Edit ruthlessly. Be concise. Use pictures, diagrams, infographics to convey messages.
  3. Never surprise your board. Reach out ahead of board meetings and run ideas past people. Use your sponsor to share good news and bad news ahead of board meetings and ALWAYS have a solution in mind if what you are sharing is a problem.
  4. Assign each board member a “role” in your mind to provide advice, counsel, context, whatever, and use them for that. Build a relationship with each one on a specific platform.
  5. Speak Metrics. Your preferred way of communicating may be words or pictures or even voice. But board members, especially venture capitalists,speak metrics. Learn the language and convey your points in it.
  6. Know more about your business than they do. Drop a “golden nugget” or two that they don’t know about your market, your competitors, your industry. Assume that they think you know everything about your business. Add something new each time you meet.
  7. Forecast accurately. A forecast is not a hope. And hope is not a strategy. Use a framework. Be conservative. Meet your forecasts. And if you will not meet them, let the board know ahead of time—why and what you are going to do about it. Start with your sponsor.
  8. Be confident. You are the CEO. There are people’s expectations and money resting on your decisions. Take the responsibility seriously and project accordingly.
  9. Set expectations. Be the voice of reason as it relates to goals and objectives that are first reviewed by and agreed upon by the board—before the clock starts ticking. Then remember to continue to set expectations in every conversation and especially every meeting. What is happening next and how does it fit in the plan and move the company forward?
  10. Provide follow-up that is also well organized, thoughtful and concise. Show your board that you took note of their questions and took the time to get the answers. Send them additional nuggets of good news between board meetings that show progress from the last meeting.