Hartford Business Journal

www.HartfordBusiness.com July 6, 2015 • Hartford Business Journal 21 BIZ BOOKS A strategic approach to learning from failure "F ail Better: Design Smart Mis- takes and Succeed Sooner" by Anjali Sastry and Kara Penn (Harvard Business Review Press, $30.) While innovation fuels the future, fail- ures are inevitable because actions and outcomes are separated by time and things beyond your control. The authors' "Fail Bet- ter" approach systematizes project development and management to include learning experiences and uncovering insights every step of the way. Their three- step approach makes mis- steps work for you. 1. Launching your project requires the right groundwork. Forget the complicated project plan because the devil (i.e. lack of clarity) hides in its details. Instead, keep it "simple, sup- ple and scrappy." Being con- cise ensures that you delve deeply into the causes of the problem, not its symptoms. A concise statement of the problem also contains the specifics of those affected by the process (mostly internal stakeholders) and the outcome (external and internal) stakeholders, a prioritized list of deliver- ables, and ways to measure progress. With that as a base, you can develop key indicators relative to deliverables; these fuel ideas when outcomes differ from expectations. The indicators also allow for rethinking and reprioritizing deliverables. 2. Don't repeat process- es; refine them. Think of the project's activities as learning- by-doing (LBD) rather than following prescribed proto- col. In a way, LBD treats each step as a test of hypotheses. During this ongoing testing process, feedback loops promote opportunities "to mine useful guidance and learning." As LBD unfolds, team members think ahead and make better decisions based upon test results. 3. Using knowledge-sharing to iden- tify and embed the learning in the organization. Assemble an archive of all projects that includes timelines identifying deliverables, priorities, team construction, actions and outcomes. Because no project ever goes as planned, the archive should include shifts within projects and the rea- sons behind them. Encourage the use of the archives by those involved with current projects and when developing the ground- work for future projects. Key takeaway: "The right kind of failure instructs, refines and improves ideas, work products, skills, capacities and teamwork." • • • "Hello Stay Interviews, Goodbye Tal- ent Loss — A Manager's Playbook" by Beverly Kane and Sharon Jordan-Evans (Berrett-Koehler Publishers, $17.95). When business owners look at their income statements they only see revenue and expenses. They don't see the hidden cost of turnover. According to a recent study by Manpower Group, replacing an entry-level employee costs about $6,000; the cost of replacing a mid-level manager could reach upwards of $60,000. The costs relate to conduct- ing a search, lost productivity as others shoulder the load and the cost of training a new- bie. Then there's the morale cost that can't be measured in dollars, but which could result in more turnover. All too often, manag- ers don't realize a valued employee is looking until notice is given. Then, dur- ing the exit interview, they ask, "What can I do to keep you?" The authors believe that variations of the question should have been asked and answered many times while the employee was on the job. Stay interviews are ongoing conversations between the manager and employees that: 1. Provide an opportunity to find out more about what's important to employees; 2. Tell employ- ees that their contributions are valued. When employees know that management listens to them, they become more engaged in their work and less likely to jump ship. Open-ended questions are the tools of the stay interview because they allow employees to express themselves. Some good ones are: "What did you learn this year about yourself?" "What can I do to support your career goals?" "What makes for a great day at work?" The bottom line: Stay interviews identify what managers need to do to keep valued employees. n Jim Pawlak is a nationally syndicated book reviewer. Jim Pawlak EXECUTIVE MANAGEMENT Seven secrets to product management success By Andy Singer P roduct management is an essential func- tion to introduce to any organization. By effectively introducing or optimizing the product management function, a company can be significantly more profitable. Con- versely, ignoring this key function or poor implementation can mean missed profit opportunities. I've had the good fortune of introduc- ing product man- agement into three organizations. While no easy task, the financial rewards for implementing rigorous product management are vast. Here are seven secrets to product manage- ment success: 1. Assure independence: The product management function should never report to the engineering department. By being indepen- dent and neutral, this assures a deeper under- standing of customer perceptions, which can be different from the developer's perceptions. Product management should be the voice of the customer's needs. In fact, product management is most useful to an organization before projects get to engineering. As such, it is a distinctly different function than engineering. 2. Avoid early assumptions: It is impor- tant to avoid making assumptions in the early stages of new product development. Most products fail due to poor market research, so product management must be independent enough that company bias is avoided. We may think the widget we devel- oped is the greatest solution on the planet, but what matters is the customer perception of our widget. 3. Shore up marketing: Across many companies there exists a major imbalance between technology and marketing in how firms allocate resources. Successful compa- nies shore up the marketing side of the house with solid product management and market- ing communications. 4. Weed out the losers: It is during the early research phases where the obvious loser new product ideas should be weeded out, and where the key decisions to commit significant resources are made. These decisions must be made so resourc- es are available to focus on the best ideas. As well, they need to be market driven and unbiased. 5. Learn to differentiate: The most suc- cessful product managers understand how to differentiate products and the need to offer customers a unique value proposition. Learn your customer's business inside out and understand how your product can help them perform better. Also learn to understand their needs, not just what they think they want. 6. Spend time selling: To be a success- ful product manager you must understand your customer base. There is no better way to assure this than by working directly with your sales team selling the product. You will learn information about your customers and the competition that you will never find in a survey. Additionally, you improve your commu- nication and listening skills by working in sales. This will help you both internally and externally as you move forward with product management and your career. 7. Prune and optimize: While good prod- uct management is important to success in the front end of the product life cycle, it is also essential during all phases. Every year product management should take the time to review all products for sales and margin. Your organization will be more efficient and profitable if you prune the losers and adjust pricing as appropriate. Seeking out products that should be discon- tinued, or ones that are selling below cost, is a key responsibility of product management. When done correctly, this process assures a more focused, effective and profitable organization. Product management ultimately should be responsible for the product's success. This means not only technical specifications, but also marketing, pricing, market acceptance and communications. n Andy Singer is the president of Singer Executive Development, a professional training and development company that helps optimize business performance of employees and executives. Andy Singer ▶ ▶ The right kind of failure instructs, refines and improves ideas, work products, skills, capacities and teamwork. ▶ ▶ The most successful product managers understand how to differentiate products and the need to offer customers a unique value proposition.

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