Gennaro Cuofano's Blog, page 105

Product Breakdown Structure

A product breakdown structure (PBS) is a hierarchical visual representation of project outcomes or deliverables.

Understanding the product breakdown structure

A product breakdown structure is a diagrammatic hierarchical representation of project outcomes and provides a clear and concise illustration of what the project must deliver. The PBS is also beneficial for teams since it reduces a complex project or product into more manageable components.

At the top of the product breakdown structure is the final product, with elements of the product represented in various subcategories below. The PBS is similar to another project management tool called the work breakdown structure (WBS), which organizes project work into smaller sections and deliverables.

In the context of project management, the PBS precedes the WBS with a focus on determining the desired outputs required to achieve project goals. The WBS is then crafted to identify the activities and tasks that will support those outputs. 

Many favor this approach to project management because it removes ambiguity and avoids assumptions that can result in inefficiencies. The common mantra is that the “PBS defines where you want to go while the WBS tells you how to get there.”

Example of a product breakdown structure

Here is a brief look at a product breakdown structure for a third-party software installation. Under this product are the following categories and subcategories:

Project initiation document.Software installed – third-party software, servers, database software.Software tested – test plans, test scripts, test system.Training delivered – training plan, training venue, training material.Software delivery to users – software download, post-install test script.

Notice in the above that products may be described as nouns or as outcomes in the past tense. Most product breakdown structures will also be annotated with a list of products and associated product descriptions. These set the standards for product quality and responsibility early on in the project life cycle.

Once the PBS has been completed, decision-makers can create a product flow diagram to define the delivery plan logic.

How to create a product breakdown structure

Creating a product breakdown structure involves a team of individuals sharing their unique perspectives on a particular project. 

Many businesses choose to conduct brainstorming sessions between departments where employees can collaborate to define the various categories and sub-categories. This can be done on a whiteboard or with notecards and post-it notes.

Whatever method is chosen, the teams must discuss each project and reorganize the components where necessary. For complex projects, it may be worthwhile to use mind mapping and project management software such as MindView.

Key takeaways:A product breakdown structure (PBS) is a hierarchical visual representation of project outcomes or deliverables. It provides a clear and concise illustration of project deliverables while also reducing complexity.In a PBS, products are described as either nouns or outcomes in the past tense. Once the illustration has been completed, decision-makers can create a product flow diagram to define the delivery plan logic.To create a product breakdown structure, teams from multiple departments must collaborate and share their unique perspectives. The PBS itself be completed on a whiteboard or with note cards, but more complex projects may require dedicated project management software.

The post Product Breakdown Structure appeared first on FourWeekMBA.

Trompenaars’ Cultural Dimensions

Trompenaars’ cultural dimensions comprise a framework for cross-cultural communication in the workplace. 

Understanding Trompenaars’ cultural dimensions

Trompenaars’ cultural dimensions for cross-cultural workplace communication were developed by Fons Trompenaars and Charles Hampden-Turner. To develop their model, the pair spent more than a decade researching the cultural values and preferences of more than 46,000 managers across 40 countries.

The results of the research were then published in a 1998 book entitled Riding The Waves of Culture: Understanding Diversity in Global Business. Trompenaars and Hampden-Turner found that managers from various cultures differed in specific and sometimes predictable ways since each culture had its own system of thinking, beliefs, and values.

These systems were then represented on seven cultural dimensions that comprise the framework itself. Each dimension guides employees and managers to help them understand different cultural backgrounds, improve working relationships, and avoid instances of cultural faux pas. 

In the following sections, we will take a look at each dimension in more detail.

The seven cultural dimensions1 – Universalism versus particularism: Universalism – cultures that consider laws, rules, and obligations to be more important than relationships. Universalism espouses clear instructions and procedures, consistency, and objective decision-making. Examples include the US, UK, and Australia.Particularism – these cultures believe relationships dictate the rules by which they live and that each situation may require a different response. As a result, they favor autonomy, flexibility, and relationship-building. Examples include Russia and China.2 – Individualism versus communitarianismIndividualism – where freedom and personal achievement are celebrated and rewarded and linked to the needs of others or the organization as a whole. Employees are autonomous, creative, and allowed to make mistakes. This is commonly seen in Australia, Scandinavia, New Zealand, and the US and UK.Communitarianism – a belief that the group is more important than the individual, providing safety and assistance in exchange for loyalty. Individuals are not praised publicly and no favoritism is displayed. Examples include Japan and many Latin American countries.3 – Specific versus diffuseSpecific – these employees keep their personal and professional lives separate and believe that colleagues can work together without necessarily liking each other. This dimension is common in the West.Diffuse – where employees see overlap between their personal and professional life. Countries such as Russia, India, and Spain consider good personal relationships key to meeting organizational objectives.4 – Neutral versus affectiveNeutral – employees suppress their emotions and tend not to reveal what they are thinking or feeling. There is a tendency to “stick to the point” during interactions.Emotional – this describes employees who are more than willing to express emotions at work in a spontaneous manner. Emotions, they believe, build trust and rapport and can also be used to manage conflict before it escalates.5 – Achievement versus ascriptionAchievement – these are cultures that value and reward performance irrespective of rank or seniority. A person’s worth is directly correlated with what they do and titles are used only when relevant.Ascription – these are cultures that value an employee based on power, position, or title. Those with authority are shown the utmost respect and are never up-staged. Ascription is common in France, Italy, Japan, and Saudi Arabia.6 – Sequential time versus synchronous timeSequential time – employees who value sequential time prefer events to occur in a logical order and consider planning, commitment, and punctuality to be of supreme importance. This describes the classic “time is money” culture that is prevalent in the USA, UK, and Germany, among others.Synchronous time – here, employees consider the past, present, and future to be intertwined. They are happy to work on multiple projects simultaneously and do not see plans as rigid or unchangeable. Examples include Mexico and Argentina.7 – Internal direction versus external directionInternal direction – those with internal direction believe they have control over their environment and how they work with other individuals and teams. By extension, they allow others to develop and take control of their own environment. Conflict is handled openly and constructively.External direction – those with external direction believe their environment controls them. Their actions revolve around conflict avoidance or minimization. This is done by providing direction, regular feedback, and constant reassurance. When it does occur, conflict tends to be managed quietly and efficiently.Key takeaways:Trompenaars’ cultural dimensions for cross-cultural workplace communication were developed by Fons Trompenaars and Charles Hampden-Turner. The pair surveyed over 46,000 managers in 40 countries to create a framework of how different cultures interact in the workplace.Trompenaars’ cultural dimensions help organizations foster better relationships between employees with different cultural backgrounds. Knowledge of the various dimensions helps individuals avoid making a cultural faux pas. Trompenaars’ seven cultural dimensions are universalism versus particularism, individualism versus communitarianism, specific versus diffuse, neutral versus affective, achievement versus ascription, sequential time versus synchronous time, and internal direction versus external direction. Collectively, the dimensions address factors such as work style, leadership style, time management, autonomy, performance, decision-making, and the importance of rules and regulations.

The post Trompenaars’ Cultural Dimensions appeared first on FourWeekMBA.

What is the CIA triad? CIA triad explained

The CIA triad consists of three principles that form the basis of an organization’s security systems and policies.

Understanding the CIA triad

The CIA triad is not at all affiliated with the American intelligence service. Instead, it is a common and respected framework that underpins an organization’s security infrastructure.

The CIA triad is an acronym of three principles: confidentiality, integrity, availability. Any time a website is taken down, a system is attacked, or an individual falls for a phishing scam, you can bet that at least one of these principles has been contravened.

Within an organization, security teams evaluate vulnerabilities and threats based on their potential effect on each principle in the triad. In more specific terms, teams assess applications, data, and critical systems and then endeavor to reduce risk via the implementation of controls.

The three principles of the CIA triad

Let’s now take a look at the three principles in more detail:

Confidentiality 

This describes the ability of the organization to protect private or otherwise sensitive information from unauthorized access. In some organizations, employees will have access to different levels of information based on rank or experience. Information can also be categorized according to the level of damage that would occur if it was obtained by an entity without the required permissions. 

Confidentiality can be violated via deliberate acts such as network reconnaissance, escalation of system privileges, and electronic eavesdropping. However, it can also occur due to less intentional acts such as the sharing of user accounts or non-existent authentication systems.

Integrity 

In essence, this means the organization can make assurances that its information has not been tampered with in any way. These assurances mean the information in question is trusted, authentic, and reliable. To maintain integrity, data should also be protected while it is in use, in transit, and in storage.

Integrity can be comprised in much the same way as confidentiality, but direct and indirect attacks can be prevented with digital certificates, version control, auditing, and encryption, to name a few measures.

Availability

Availability means systems, applications, and data are accessible to authorized users when needed. Information should be readily and consistently available and its access should not require an inordinate amount of time.

Availability is often comprised when there is a natural disaster and subsequent power outage with no recovery system in place. Natural disasters such as floods and snowstorms may also physically prevent employees from traveling to the workplace, which impacts the availability of business-critical applications and systems. More malicious impacts on availability include ransomware and denial-of-service (DoS) attacks.

To bolster this CIA triad principle, organizations can utilize redundant systems that are programmed to become available whenever a primary system has been compromised. Availability can also be increased by ensuring that software and security systems are upgraded when necessary, a process that some businesses tend to neglect.

Key takeaways:The CIA triad consists of three principles that form the basis of an organization’s security systems and policies.When a website is taken down, a system is attacked, or an individual falls for a phishing scam, at least one of three principles of the CIA triad has been comprised.The CIA triad’s three principles are confidentiality, integrity, and availability. Confidentiality describes the ability of the organization to protect sensitive information, while integrity ensures that information is authentic and has not been tampered with. Availability, on the other hand, describes systems, applications, and data that is accessible to authorized users when needed.

The post What is the CIA triad? CIA triad explained appeared first on FourWeekMBA.

409A Valuation

A 409A valuation is an appraisal of the fair market value of a private company. Conducted by a third-party, independent appraiser, the valuation assesses the company’s common stock that is reserved for its founders and employees.

Understanding a 409A valuation

The 409A valuation was introduced in 2005 in response to the Enron accounting scandal that occurred four years earlier. In essence, the Internal Revenue Service (IRS) wanted to stop company executives from exploiting equity loopholes. 

When the 409A was finalized in 2009, private companies had a framework to follow for valuing their private stock. Since the valuation is performed by an impartial third party, the IRS can assume it to be reasonable under most circumstances.

Startup companies must pay for a 409A assessment before they can set the price at which employees can purchase or receive common stock. For startups, this is often an important part of attracting the necessary talent since the stock is offered tax-free. It also allows the founders to pay their employees in equity when cash is typically scarce.

Why is a 409A necessary?

409A valuations are necessary because the value of a company’s common stock is not publicly available on a stock exchange. As a result, the IRS stipulates that a “reasonable method” of determining free market value (FMV) is performed. This involves an independent assessment of FMV every 12 months.

When these conditions are met, the IRS awards the company “safe harbor” status, which simply means it considers the valuation valid unless proven otherwise. Without this safe harbor, the company may be liable for a substantial tax penalty. Indeed, if the IRS determines that equity was not issued at fair market value, employees may be taxed immediately and fined an additional 20% of their holdings.

When is a 409A required?

As we discussed earlier, a 409A is required every 12 months and whenever a company issues its first round of common stock. These valuations must also be performed when a material event occurs, such as: 

Qualified financing – where preferred equity, convertible debt, or common shares are sold to institutional investors at a predetermined price. Acquisitions, mergers, and IPOs.Secondary sales of common stock.Missing or exceeding financial projections, and A shift in business model.409A valuation methodologies

Independent appraisers typically choose from three standard valuation approaches:

Income approach – for businesses with positive cash flow and sufficient revenue this is the favored approach. Value is determined by subtracting the total liabilities of the company from the total free market value of its assets.Market approach – when a company requires a 409A valuation after raising capital, appraisers normally use the OPM backsolve method. This is used for complex capital structures where there are multiple equity classes. For example, new investors pay fair market value for their equity while other investors receive preferred stock. In other cases, financial data such as net income, revenue, or EBITDA may be used from similar public companies to estimate value.Asset approach – the most common approach for early-stage startups that do not generate revenue and have not yet raised capital. Here, valuation is determined by calculating the net value of assets.Key takeaways:A 409A valuation is an appraisal of the fair market value of a private company. Conducted by a third-party, independent appraiser, the valuation assesses the company’s common stock that is reserved for its founders and employees.A 409A is required every 12 months and whenever a company issues its first round of common stock. They are also required for material events such as mergers, acquisitions, IPOs, qualified financing, and a business model pivot, among others.Appraisers tend to use one of three methods when performing a 409A valuation. These are the income approach, market approach, and asset approach. The type of approach chosen depends on the maturity of the company and whether capital has been raised.

The post 409A Valuation appeared first on FourWeekMBA.

What is earn to give? Earn to give explained

Earn to give is the practice of securing a well-paid career with the intention to donate a sizeable percentage of the resultant income to charity.

Understanding earn to give

In essence, earn to give is based on the assumption that wealthy individuals have the potential to do the most good in the world. Consider Bill Gates, for example, whose charitable foundation tackles complex problems such as poverty, water security, and access to proper healthcare. 

Would Gates be able to make such an impact if he worked for UNICEF or Médecins Sans Frontières? While some may scoff at the relationship between software development and social good, it is clear that the success of Microsoft has enabled Gates to have a tremendous positive impact on poor and underserved societies.

With that said, it is worth nothing that earn to give is not a practice restricted to the super-rich. When one considers that the average non-profit CEO salary is just $65,000 a year, it would not be difficult for even a moderately wealthy individual to have a positive impact and donate money to their cause of choice.

Earn to give suitability 

Earn to give will not be suitable for everyone and it’s also important to avoid seeing the practice as purely a numbers game. 

We believe earn to give is best suited to individuals in the following situations:

Those who consider themselves an ideal fit for a better-paying position. Don’t accept a position as a lawyer, for example, if you hate the idea of practicing law. Employee fit is ultimately determined by their level of excellence. When individuals excel in their roles, they tend to be more satisfied and earn more money.Those who want to acquire new skills in a better-paying position. Skill acquisition is a component of career capital, which also comprises connections, credentials, and financial resources that enable employees to become more productive.Those who are uncertain as to which cause they want to align themselves with. As opposed to working for an NGO dedicated to a specific cause, earn to give enables the  individual to shift where their donations are directed without having to seek new employment.Those who want to donate to a cause that is constrained by a lack of funding as opposed to a lack of talent.What are some of the best earn to give professions?

There are numerous high-paying professions, but only a few have the proper balance of flexibility, outlook, and income. Two of the most desirable roles that satisfy these factors are tech startup founders and quantitative hedge fund traders.

In terms of industry, earn to give is an ideal fit for:

Data science.Management consulting.Early-stage startups.Software engineering.Actuarial (statistical) science.Nursing.Marketing, andAllied health, such as optometry, radiography, and pathology.Key takeaways:Earn to give is the practice of securing a well-paid career with the intention to donate a percentage of the resultant income to charity.Earn to give will not be suitable for everyone. Indeed, it is most suitable for those who see themselves as a good fit for a better-paying position and want to acquire new skills in the process. It is also suitable for individuals who are unsure about the particular cause they want to support.Earn to give works best in professions that have an appropriate balance of flexibility, outlook, and income. The two most desirable professions are a tech startup founder and quantitative hedge fund manager, but many other suitable roles are easier to break into.

The post What is earn to give? Earn to give explained appeared first on FourWeekMBA.

Brainstorming Examples

Brainstorming is a broad and diverse discipline where individuals come together to discuss ways that a business can grow, improve, innovate, problem-solve and make better decisions. 

Brainstorming tends to be less common in companies with a hierarchical structure where top-down decisions are the norm. In more collaborative companies where employees have more autonomy, however, various brainstorming methods are utilized to deliver better outcomes.

In this article, we’ll discuss one hypothetical and one real-world example of brainstorming at work.

The marketing team for a meditation app

In the first example, consider a hypothetical remote marketing team that wants to find ways to encourage consumers to purchase the paid version of a meditation app.

The session facilitator starts by selecting an online remote brainstorming tool such as Miro, which allows the team to generate ideas in real-time using diagrams and sticky notes. Before the meeting, the facilitator also asks each team member to review the problem in their own time so that they come prepared.

The initial brainstorming session contains six people including the leader: a product marketing manager, a product manager, a UX designer, a content producer, and a demand generation manager. This assortment of roles is an ideal cross-functional mix and ensures that ideas come from a range of backgrounds and expertise.

The session then progresses as follows:Present the problem – in other words, how can the business encourage consumers to use the paid version of the meditation app?Five-minute review – then, the facilitator allows the team to record their thoughts on the problem for 5 minutes.Word association game – a further 10 minutes is spent on a word association game to help the creative juices start to flow. Words can either be spoken or written down and in this scenario may include “streamlined”, “ad-free”, “relaxation”, “undistracted”, “functionality”, and “rewards”.Vote on ideas – after the time has elapsed, the facilitator asks the five participants to vote on their favorite words.Brainstorm – for 20 additional minutes, the most popular words from step four form the basis of creative solutions to the problem from step one. No idea must be considered impractical or unrealistic. List creative ideas – using mind maps, sketches, sticky notes, or a combination thereof, the team generates a list of potential solutions. For the sake of brevity, some of the ideas may include offering freemium features for a limited time, utilizing referral or reward programs, and charging consumers to remove the intrusive advertising from the free version.Conclude – in the final step, the facilitator ends the brainstorming session and schedules a meeting where the team will vote on the idea(s) with the most potential.National Gallery of Art

Museum staff at the National Gallery of Art in Washington, D.C., wanted to formulate strategies that delivered a better experience for visitors. Staff realized that many visitors did not feel comfortable or confident interacting with the art on display because, in their own words, they “were not art people.”

To solve this problem, the museum held a brainstorming session where participants drew possible solutions on a piece of paper for 8 minutes. After the time had elapsed, each presented their solutions to the group. Another session of equal duration followed as solutions were further refined based on input from other participants.

One solution that had merit involved requiring users to attend a lecture on the museum and its collection beforehand. However, the team wondered if the idea was too prescriptive. In other words, what would happen if a visitor did not want to attend the lecture? It was also noted that this idea would be expensive to maintain since staff would need to be employed to deliver the lectures each day.

From this failed attempt came another solution to show shorter, on-demand videos that museum visitors did not have to watch if they weren’t interested. The videos, which would be shown in the museum’s atrium, would allow visitors to develop the skills to interact confidently with art. After the team agreed it was the correct solution, it was implemented in the gallery to great success.

Key takeaways:Brainstorming is a broad and diverse discipline where individuals come together to discuss ways that a business can grow, improve, innovate, problem-solve or make better decisions.In the first example, a marketing team wants to brainstorm ideas to encourage users to use a paid version of a meditation app. The team consisted of six people in six different roles to create an ideal cross-functional mix.In the second real-world example, the National Gallery of Art in Washington, D.C., used brainstorming to solve the problem of museum visitors feeling out of their depth when viewing art. Short, on-demand videos that allowed visitors to increase their understanding proved to be the most viable solution.

The post Brainstorming Examples appeared first on FourWeekMBA.

ERP System: Enterprise Resource Planning

ERP systems collect and analyze business information to allow companies to maintain efficient operations as they expand.

Understanding ERP systems

ERP systems are based on the principles of enterprise resource planning where software is used by businesses to manage their daily operations. The term “ERP” was coined in the 1990s by the Gartner Group, but primitive ERP systems have existed for over a century. 

American power tool manufacturer Black and Decker was the first company to combine the Material Requirements Planning (MRP) and Economic Order Quality (EOQ) systems with a mainframe computer in 1964.

In the modern context, ERP systems allow organizations to track the majority of their business activities in areas such as risk management, project management, supply chain operations, procurement, human resources, and accounting, to name a few. More complex ERP systems incorporate enterprise performance management software that assists with planning, budgeting, and reporting of financial results.

The importance of ERP software for businesses of all shapes and sizes cannot be understated. It allows multiple departments  with their own optimized systems to be accessed and managed in a single interface. By extension, this allows departments to easily share information that can be used to improve productivity across the organization. 

The business value of ERP systems

The most obvious business value that ERP systems provide is bottom-line savings that result from productivity increases. However, there are also several other specific business benefits such as:

More useful insights derived from real-time information reporting.Enhanced collaboration between departments as users can share requisition, purchase order, and contract data easily.More effective risk management and compliance as a result of better financial controls and overall data integrity.A streamlined and consistent infrastructure with all business activities sharing the same look and feel. This also contributes to an increase in productivity. Superior user adoption rate as employees benefit from a common design and user experience.Several different ERP deployment methods, including on-premise, cloud, or a combination of the two. Cloud-based ERP systems have become very popular in the past few years.The ability to synthesize vast amounts of information into charts, graphs, and reports that illustrate or highlight important trends and increase employee buy-in.ERP system providers

So who are the main ERP system providers in the market today? Let’s take a look at some familiar and not-so-familiar companies below:

Microsoft – it may come as no surprise that Microsoft has been a dominant force in ERP systems for many years. Products include Dynamics NAV and Dynamics AX, with both based on technology the company acquired in 2001.SAP – the first SAP ERP system was launched in 1972 and today, the company can boast over 425,000 customers in most of the world’s countries.Epicor – headquartered in Austin, Texas, Epicor has been selling ERP systems for over 25 years with a particular focus on retail, services, distribution, and manufacturing.Infor – New York City-based Infor is one of the companies leading the push toward cloud-based ERP systems. Infor has over 68,000 global customers with a large network of software partners promoting its products.Oracle – another Texas-based company and the second-largest in the world by market capitalization and revenue. Like Microsoft, Oracle entered the ERP space after several acquisitions in the early 2000s.Key takeaways:ERP systems collect and analyze business information to allow companies to maintain efficient operations as they expand.ERP software allows multiple departments – each with their own optimized systems and tasks – to be accessed and managed through a single interface. This provides many cost-saving and productivity-related benefits.Notable companies in the ERP space today include Microsoft, SAP, Epicor, Infor, and Oracle.

The post ERP System: Enterprise Resource Planning  appeared first on FourWeekMBA.

SMED: Single-Minute Exchange of Die

The SMED method is a framework for reducing the time associated with completing an equipment changeover.

Understanding the SMED method

The SMED (single minute exchange of die) method is a lean production framework to reduce waste and increase production efficiency. The “single-minute” aspect of the method refers to the goal of reducing equipment changeover time by any number in the single digits. That is, in any time under ten minutes.

Like similar lean process improvement strategies, the SMED method originated at Toyota in the 1950s after inefficiencies were identified in the process of molding body parts. When different parts of the car body needed to be molded, it took between two and eight hours to load the necessary tools into the equipment. This laborious process combined with the fact that Toyota had to purchase extra land to store the vehicles caused a lot of waste. 

To speed up the process, Toyota made modifications to the machinery and vehicle components and also re-ordered the steps in the molding process. By the 1970s, the equipment changeover time was occurring in a matter of minutes.

Today, the SMED method can be used in any industry or situation requiring a changeover of product or equipment. The most commonly mentioned examples are in software development and motor racing where pit crews need to change tires and drivers as quickly as possible.

The two principles of the SMED method

Generally speaking, the SMED method incorporates both internal and external setup components.

1 – External 

External components are process steps or parts that can be replaced while a product or piece of equipment is still in operation. 

For external components, the primary focus is preparation. This means the tools, materials, or other important resources are available before the changeover takes place. A Formula 1 pit crew, for example, does not search for new tires once the driver has pulled into the pit lane. Instead, they are pre-arranged on the tarmac at precisely the point where the driver will stop. 

2 – Internal 

Internal components require the product or piece of equipment to be non-operational before the changeover can take place. One example of an internal component is the molding equipment Toyota made more efficient in the 1970s.

Note that the goal for any team using the SMED method is to transform internal components into external components wherever possible.

Where is the SMED method most effective?

The SMED method is most effective in the following situations:

The process is performed frequently.The process is a bottleneck whose resolution will have immediate and significant benefits.Employees involved in the changeover are adequately trained and have bought into the change itself.The duration of the changeover is long enough that an appreciable improvement is possible, andThere has been historical variance in past changeover times. For example, if one year the change over time was 7 hours and the next it had reduced to 45 minutes.Key takeaways:The SMED method is a framework for reducing the time associated with completing an equipment changeover.The SMED method incorporates internal or external setup components. External components are process steps that can be altered while the process itself is still running, while internal components are those where the process must be halted. The goal for any team is to have more external components and fewer internal components.The SMED method is effective in situations where processes are performed repeatedly or for bottlenecks whose resolution will result in process efficiency gains. The method is also useful when there has been significant variance in changeover time.

The post SMED: Single-Minute Exchange of Die appeared first on FourWeekMBA.

Feedback Methods

Employee feedback can be an incredibly effective way to increase performance, improve levels of collaboration and trust, and lead to mutually beneficial outcomes for leaders and their subordinates. 

However, some organizations avoid the crucial feedback process for fear of making their employees uncomfortable. Worse still, some employees receive feedback that is detrimental to their productivity or mental well-being.

It would be a stretch to suggest that effective feedback is an art form, but it is an essential skill that all leaders need to possess. To that end, various context-dependent feedback methods can be used to ensure employee evaluations do more good than harm.

Feedforward

In essence, the feedforward feedback method involves giving an employee pointers for how they can improve for the future. The creator of the method, Marshall Goldsmith, noted that it is better to help people be right rather than prove them wrong. In the latter case, negative feedback often puts the employee on the defensive and causes discomfort in the leader.

Say for example that an employee delivered a sub-par sales presentation. Instead of the superior berating their performance, they can work with the employee to prepare them for future presentations with specific, positive suggestions. This way, the employee avoids having to relive the negative experience and focuses only on what they are able to control.

DESC

The DESC feedback technique was developed by Sharon and Gordon Bower in their book Asserting Yourself. DESC is an acronym of four steps that helps individuals become more assertive during difficult conversations:

Describe – the individual starts by outlining the behavior or situation as thoroughly and objectively as possible. Here, it’s important to stick to the facts.Express – in the second step, the individual expresses their thoughts and feelings about the behavior or situation. Sentences must be phrased using “I” and not “You”, which tends to make people defensive.Specify – this is where the individual clarifies what they would prefer to happen. For example, “I would like us to meet before the next presentation to discuss some effective communication strategies.”Consequences – the consequences (both positive and negative) of the behavioral change should be listed at this point. Many employees will want to know why a superior is asking them to change before committing to the process.360-degree dinner

The 360-degree dinner feedback method is popular with many organizations and for good reason. The method, which is a scaled-back version of the standard 360-degree feedback approach, involves inviting a team of employees to dinner where feedback is given over a meal.

The team leader starts by asking those at the table to evaluate their performance, behavior, or any other issue they feel is important. The process is then repeated for each employee and individuals who provide feedback are thanked for their contributions.

This method can also be used for remote teams who share their respective dinner times with others on a platform such as Zoom.

Key takeaways:Employee feedback can be an incredibly effective way to increase performance, improve levels of collaboration and trust. However, many leaders and organizations avoid it because of the awkward or uncomfortable situations that can result.The feedforward feedback method involves giving an employee pointers for how they can improve for the future. It rightly leaves past actions in the past because they cannot be changed and focuses on how future performance can be improved.The DESC technique helps individuals in most contexts assert themselves in a situation where feedback is necessary but may cause discomfort. The 360 degree dinner is a less formal method that invites employees and leaders to receive and offer feedback for others around a dinner table.

The post Feedback Methods appeared first on FourWeekMBA.

Customer Discovery Examples

In essence, customer discovery is a scientific, customer-centric process that solidifies or validates an assumed product-market fit. The phrase itself was first coined by entrepreneurs and authors Steve Blank and Eric Ries, with both known for their contributions to lean methodologies for startups.

The process of customer discovery involves steps that resemble the traditional scientific method. The team must first observe and define a problem or market need and then develop a hypothesis-based solution in the form of a business idea. Once these steps have been completed, the team conducts an experiment to test a product concept and verify their hypothesis. 

Experiments are based on the collection of mostly qualitative data that helps the organization understand how consumers think, act, or feel when they engage with a product or service. From this research, internal teams can create products that align with their customers.

Customer discovery, like the scientific method on which it is based, also allows businesses to formulate solutions that are free from personal bias, assumptions, or the opinions of friends, family, co-workers, or industry experts. 

Let’s now take a look at two examples of how customer discovery was used to improve the outcomes for HubSpot and Casper.

HubSpot

When software marketer and developer HubSpot embarked on a website overhaul, it researched its visitors to determine the sorts of words that would resonate with them most. With assistance from several copywriters, HubSpot identified three core types of website visitors and defined the desired outcomes, priorities, anxieties, and pain points for each.

Any patterns or recurring themes were then identified, such as commonly used words or oft-repeated soundbites. At this point, the company incorporated these patterns and themes into its website copy across the homepage, product pages, and other areas.

The new, customer-driven copy was trialed for three weeks, with a subsequent 35% increase in demo requests, 27% increase in post-launch product registrations, and a nearly 100% increase in the site’s overall conversation rate.

Casper

Casper is a startup that sells sleep-related products such as mattresses, pillows, bed frames, duvets, sheets, blankets, and even dog beds. The company used the customer journey process to identify that customers were most likely to consider purchasing a new mattress between the hours of 1 and 3 AM. 

Casper also learned from interacting with its customers that a very unique set of triggers caused them to think more seriously about improving the quality of their sleep. For example, some were motivated to buy a new mattress after welcoming a new dog into the family. Others were motivated by young children who had started to crawl into bed with them overnight, while others still were recently divorced and were experiencing difficulty sleeping alone.

Based on this detailed customer journey, Casper created content for those who had trouble falling asleep and targeted keywords such as “how to get to sleep earlier” in its content marketing campaigns. Readers who then landed on the Casper website were served ads that the company hoped would move them closer to a purchase decision. Ads were shown to users in the middle of the night and filtered according to whether each had experienced any of the triggers noted earlier.

Casper’s customer discovery efforts no doubt contributed to the company becoming a $1.1 billion unicorn in a saturated market, with approximately 175 online mattress companies forming since Casper was founded in 2014.

Key takeaways:Customer discovery is a scientific, customer-centric process that solidifies or validates an assumed product-market fit.HubSpot used customer discovery during a complete website overhaul, researching its visitors to determine the sorts of words that would resonate with them most. By incorporating patterns and recurring themes into its copy, the company was able to boost conversion rates, demo requests, and product registrations.Online mattress company Casper also used customer discovery to identify an unmet need in consumers who had difficulty sleeping. By targeting specific keywords and trigger points, the startup was able to reach unicorn status in a saturated market full of copycat businesses.

The post Customer Discovery Examples appeared first on FourWeekMBA.