In the fast-paced world of product development, assumptions can often be our greatest blind spots. Yet, they are also essential stepping stones that guide our decisions and strategies. In our new class, we dive deep into the art of working with assumptions, transforming them from potential pitfalls into powerful tools for innovation.
One of the first and most critical lessons in our course is the introduction of assumptions into the product development dictionary. This might seem elementary, but it’s a game-changer. We often overlook the fact that assumptions are being made—sometimes subtly, sometimes blatantly—throughout the product development process.
The moment when you realize that you’ve been making assumptions, not just one or two, but many, is pivotal. Whether you’re developing a new product, discussing its potential future, or creating product backlog items, assumptions are quietly influencing every decision. But here’s the question: What kind of assumptions are you making?
Assumptions in Product Futures: What do you believe the market will want?
Assumptions in Product Backlog Items: Are you assuming the team’s capacity, or the feasibility of certain features?
Recognizing these assumptions is the first step toward a more structured and evidence-based approach to product development.
Once we’ve identified the assumptions, the next critical step is prioritizing and validating them. But not every assumption requires validation. Some are trivial, while others are crucial to the success of your product.
In our class, we explore how to order your assumptions and determine which ones need immediate attention. This process involves asking key questions:
Which assumptions, if wrong, would cause significant setbacks?
Which assumptions are fundamental to the product’s success?
By answering these questions, we can start to prioritize our assumptions, focusing on those that are most likely to impact the product’s outcome.
After prioritizing your assumptions, it’s time to take the next step: transforming assumptions into hypotheses. This is where the real magic happens.
In the course, we place significant emphasis on how to create hypotheses and, more importantly, how to test them. Hypotheses are essentially educated guesses that need to be validated through experimentation.
Example Hypothesis: “If we add feature X, user engagement will increase by 20%.”
Testing: This involves collecting data to either support or refute your hypothesis.
Product development can often feel like navigating a complex tree of hypotheses, each branching off into potential successes or failures. By testing these hypotheses, we gather data that guides our next steps. This iterative process is at the core of effective product development.
Testing hypotheses is crucial, but it’s also resource-intensive. That’s why we focus on managing the costs associated with product development experiments.
One key lesson from the course is understanding the importance of desired signal strength and evidence confidence in the product development process. Here’s the reality: You’ll never have 100% confidence in your hypotheses. So, what’s your desired level of confidence?
High Confidence: Requires more extensive testing and, consequently, higher costs.
Low Confidence: Can be faster and cheaper but comes with higher risks.
Balancing these factors is essential for maintaining a sustainable product development process.
Once you’ve conducted your experiments, the next step is analysis. This is where the data from your hypothesis testing comes into play, informing critical decisions about the product’s future.
We’ll teach you how to take the outcomes of your experiments and use them effectively in your decision-making process. Think of it as targeted learning that enhances your ability to make informed, strategic decisions.
At the heart of this course is the development of a new way of thinking about product development—one that prioritizes learning and critical thinking over gut feelings and assumptions.
We all fall in love with our ideas, but this can be dangerous. This course equips you with the tools to view your ideas objectively, using data and evidence to guide your decisions rather than emotional attachment.
By fostering this mindset, you’ll be better equipped to navigate the complexities of product development, making decisions that are both innovative and grounded in reality.
In summary, our course is designed to transform the way you approach product development by mastering the art of working with assumptions and hypotheses. From recognizing the assumptions you’re making to prioritizing and validating them, crafting and testing hypotheses, and finally, analyzing your experiments—this course covers it all.
Key Takeaways:
Recognize Assumptions: Be aware of the assumptions you’re making throughout the product development process.
Prioritize and Validate: Focus on the most critical assumptions and validate them through targeted experiments.
Hypothesis Testing: Learn to create and test hypotheses using data-driven methods.
Manage Costs: Balance the costs of experimentation with the desired confidence levels.
Critical Thinking: Develop a mindset that prioritizes learning and critical thinking over emotional attachment to ideas.
Join us in this journey to revolutionize your product development process, making it more efficient, data-driven, and ultimately, more successful. 🚀 This course isn’t just about learning new techniques—it’s about changing the way you think and work. So, are you ready to take the next step? Let’s turn your assumptions into opportunities for growth!
If you've made it this far, it's worth connecting with our principal consultant and coach, Martin Hinshelwood, for a 30-minute 'ask me anything' call.
We partner with businesses across diverse industries, including finance, insurance, healthcare, pharmaceuticals, technology, engineering, transportation, hospitality, entertainment, legal, government, and military sectors.
NIT A/S
CR2
