Being Awesome, Going Forth, Innovation, Innovation Mindsets, Lean, Lenses

Charging Up the Wrong Hill

I was enjoying a morning run while listening to an excellent game design podcast, Ludology. In episode 113, Geoff Engelstein discussed the Sunk Cost Fallacy. It works like this:

You’ve played a boardgame for a little while with your friends when you realize no one is having any fun. You turn to your friends and say “Well, we’ve gone this far lads. Might as well see it to the end.” Then you proceed to spend an evening trudging through a less-than-enjoyable experience, just because you did not want to waste the time you had already sunk into it. Instead of stopping after wasting one hour on something, you decide to spend another hour on it just to finish it, essentially spending twice as much for no reward.

It seems silly here, but it happens often in innovation.

Ed Catmull uses a model of two hills in his book, Creativity, Inc.

“People need to be wrong as fast as they can. In a battle, if you’re faced with two hills and you’re unsure which one to attack, the right course of action is to hurry up and choose. If you find out it’s the wrong hill, turn around and attack the other one.” – Ed Catmull

He goes on to say that the only wrong attack, is to go between the hills. The Sunk Cost Fallacy would have your squad start attacking one hill, realize the enemy is on the other hill, but continue to charge up this hill because they already made it part of the way up. “We don’t want to waste that initial charge, sarge.”

The Sunk Cost Fallacy is the enemy to innovation. To understand how to defeat it, well use the Lean Startup principle, the Build-Measure-Learn feedback loop, as a lens.

Build

This is the phase that lets you minimize your sunk cost. Keeping costs low helps you mitigate the opportunities for you to say “We’ve spent so much already on this… we should push forward.” A great way to minimize sunk cost is to prototype as minimally as possible. What are you testing? What’s the cheapest way to validate it? Maybe there is a way to build a Paper Prototype or to smokescreen your prototype? Do not splurge on additional features, functionality, or looks. You just need what is minimally viable.

Measure

Numbers never lie, but we tend to bend their truths from time to time. Set the success metrics for your prototype as early as you can. Do not budge on these numbers and be honest with yourself. If you set a goal of a 5% conversion rate, your test may be successful, but are you really reaching for where you need to go? Be wary of vanity metrics. Focus on the stuff that is going to matter.

For a great model of this, look to baseball and the rise of Sabermetrics. Some statistics are easy to calculate in baseball; like batting average or earned runs average. However, some people started to look at new statistics, ones that really highlighted the value of the player towards creating a winning team. Sabermetrics includes stats like runs created or wins above replacement. You need to find the mechanic or action that your prototype needs to accomplish now, and build a statistic tied directly to that, in its most simplistic form.

Learn

Charging up the wrong hill is ok, as long as when you realize it is the wrong hill, you don't keep charging up because that's what you've always done. Time to find the next hill.
Charging up the wrong hill is ok, as long as when you realize it is the wrong hill, you don’t keep charging up because that’s what you’ve always done. Time to find the next hill.

At this point you’ve tested your prototype, collected your success metric data, and your hypothesis has either succeeded (in which case, ignore me) or it has failed (read on, dear reader!). This is the exciting part. You’ve proven, with numbers, that you’ve charged up the wrong hill and it is time to face facts. Now you get to pivot! This might mean you need to spend more time understanding and building empathy for your customer. This might mean you need to evaluate the constraints of your test. Perhaps your solution has driven too far from the problem. There is a world of opportunity and learning at a pivot point… AS LONG AS YOU DONT KEEP CHARGING UP THE HILL!

But I mean, why would you? You kept your costs low by building a minimally functioning prototype, you set your success metrics early, and you failed/learned. This is a great moment! Celebrate as you get out your tactical map, cross the hill off with a red marker, and proclaim “Time to charge up that other hill!”

Challenge

Has there ever been a time when you charged up a hill even after you new it was the wrong hill?

How did the second half of that charge feel?

What are ways to minimize your sunk cost?

Being Awesome, Failure, Going Forth

A Few Inches To The Left

Driving home on the final day of high school, I fell asleep at the wheel. I awoke only a handful of instants before slamming head on into a telephone pole. Luckily, in those spare milliseconds, I was instinctively wrenched the wheel to the left even though collision was imminent. Continue reading

Going Forth, Innovation, Prototyping

Paper Prototyping as a Creative Catalyst

I think we can all agree that Disney Pixar’s newest film, Inside Out, doesn’t merely tug at your heartstrings. Rather it grabs hold with a death grip and shakes them with a vigor that would make the Grinch weep, even prior to his heart enlargement. If you’ve not seen it yet, prepare your “It’s dusty in here” and “I got something in my eye” crying cover stories and go.

As you shed tears for Bing Bong (and you will) think of one simple fact… At one point, this story sucked.

These are the prototype figures I use for games. These have been knights, museum guards, venture capitalists, and more.
These are the prototype figures I use for games. These have been knights, museum guards, venture capitalists, and more.

It was likely long ago, back in the early pitches and storyboarding phases. However, as Pixar Animation President Ed Catmull states “I’m not trying to be modest or self-effacing. Pixar films are not good at first, and our job is to make them so—to go, as I say, ‘from suck to not-suck.’” He adds “We dare to attempt these stories, but we don’t get them right on the first pass. This is as it should be. Creativity has to start somewhere“.

One key takeaway here is that we, as innovators, must start our creative idea somewhere, tell the story, and figure out how to get it “from suck to not-suck”. In fact, the faster we do this, the better. We don’t want to spend needless hours putting all kinds of sheen, gloss, and functionality into that first prototype because we will likely fail and need to pivot. That is why we need to prototype on paper.

I’ve prototyped a few games just as a means to get an idea down, get it moderately functional, and to give the game idea some quick playtesting. I do not want to spend time or money in making beautiful, final quality game pieces because there are still many aspects that will need developing, balancing, or discarding. In order to prototype quickly, I keep a large stack of 3 by 5 notecards nearby (along with shiny glass beads, sparkly sticker books, and a plethora of dice). These become my makeshift game pieces. The best part is, they aren’t limited to prototyping games. A notecard could represent an app’s splash screen, an email template, or whatever you are innovating. There is always a way.

One quick note: Paper prototyping is a method, a way of making your ideas tangible in a quick, low-cost manner so that your innovative hypothesis can be validated. It does not HAVE to be paper, but whatever material you use should have the same inexpensive and recyclable nature.

Let’s take a look at some reasons why you should prototype of paper early, and often.

Notecards! A prototyper's canvas. These could be login screens, user profiles, or cupcake configurations.
Notecards! A prototyper’s canvas. These could be login screens, user profiles, or cupcake configurations.

YOU CAN PROTOTYPE CHEAP

Notecards can be bought for several on the dollar. This definitely beats the time and effort that would go into developing a digital or physical first version of your innovation. Imagine spending resources to have a first iteration of your innovation built, only to put it in front of some customers and find out that your solution needs some big time overhauling. Instead, if you had paper prototyped that primary version, you might be out a couple dollars. That’s a pretty decent Return on Investment for all the learning you can do with a first prototype.

YOU CAN PROTOTYPE FAST

There you are, sitting with a target customer, showing them your idea. You watch them interact with your prototype and you notice a huge flaw that needs to be addressed. If you’ve built a more elaborate prototype, this pivot can be costly and put a huge delay in your deliverable timelines. All those items in your kanban or development pipeline now have to sit and wait for this first one to be addressed. If you prototyped on paper (and remembered to bring notecards and pencils to your focus group) you can mock up the new screen or feature within seconds! Remember that you are just telling your innovation’s story  so these don’t have to be marketable graphics. They just need to be enough for the customer to see how it works and for you to watch them “interact”.  Plus this reduces your iteration time to something very minimal.

YOU CAN BE DARING

When you aren’t worried about cost of developing a prototype, and you aren’t worried about the time it takes to pivot and persevere into iteration two and beyond, then you can be as adventurous with your prototype as you want to be. You aren’t risking a ton of resources so put those ugly ideas out there! Be disruptive, do things the way no one in your industry does them. If your “out-there” idea crashes and burns, all you are out is a handful of notecards.

YOU CAN PUT THE FLOW IN THE CUSTOMER’S HANDS SOONER

This "paper prototyped" game card could represent your target customer's profile or maybe a feature within your innovation. You can quickly and easily make changes.
This “paper prototyped” game card could represent your target customer’s profile or maybe a feature within your innovation. You can quickly and easily make changes.

The best time to learn about your solution’s fit with your customers is when they are holding it in their hands. When your prototype only lives internally, it will always appear perfect. You need to kick it out of the nest and see if your idea can fly on its own. The faster you can do this, the less time you spend on bad ideas. Even if you don’t have it all figured out yet, get your core mechanics on paper and start asking your customers to look at it. It opens up new idea avenues for you to explore and it helps paint a better picture of what jobs the customer needs your innovation to do. We can all work on understanding our customer better, because they are always changing. Opportunities to learn and grow are valuable, especially when your innovation is in the very formative stages of its lifespan.

Later, we’ll go into some methods on “how” to prototype with paper… but for now, grab your notecards and start iterating!

Challenge

  • For this challenge, you will need 10 notecards.
  • Take 6 notecards and prototype the flow your customer will experience with your prototype.
  • Show it to someone and have them “pretend” its the real deal.
  • Iterate right then and there on any pain points they experience. Use your remaining 4 notecards for any additional or replacement steps in the flow.
  • Identify places you need to pivot and persevere and use more notecards to craft the next version!

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What materials do you use to prototype with? I’d love to see what is in your bag of tricks down in the comment section.