Monthly Archives: March 2010

Crowdsourcing ideas for Canada's future

Yesterday, I posted Canada’s Innovation Gap (part 3) where I discussed some ideas for solving the lack of innovation that exists in Canada.

This weekend, the Liberal Party of Canada is hosting a conference in Montreal focusing on Canada’s future.  The conference is called Canada at 150: Rising to the Challenge. It’s a non-partisan conference bringing people from different industries,  political views and areas of Canada together to discuss 5 key challenges related to the nation. Those challenges are:

  • Jobs Today and Tomorrow: the Productive Society of 2017
  • Real life issues for Canadian families: How do we care?
  • Energy, Environment, economy: Growth and Responsibility in 2017
  • The Creative and Competitive economy
  • A strong presence in the world of 2017: Commerce, values, and relationships

What’s great about this is the relatively open process they’ve used to get the participation from all parts of the country. Clearly with an agenda like this, the topic of innovation was discussed.

The following panel discussion, along with Q&A is well worth watching. Some really frank and honest comments are made.

(click on the image or click here to go to the video. NOTE: The first minute or so is in French and then it moves into an English discussion. )

A great comment from the early part of the discussion came from panelist Roger Martin, Dean of the Rotman School of Management, University of Toronto.  He gives his definition of innovation and invention.

Innovation does not equal invention.  Invention is producer driven. Someone says, I want to have some kind of gadget. And they dream it up in their lab or basement or garage. And it may not be of interest to anyone else. That’s invention.

Innovation is driven from the user or the consumer side…it’s about improving the experience of the end user or consumer.

Note the point that innovation is driven from the user or consumer perspective. It doesn’t mean they drive the innovation, but that their needs must be central to the innovation process.

Later on, when answering a question about the role of taxpayers and the government in helping spur innovation, Martin says quite bluntly:

I made the distinction earlier about invention and innovation. The problem for Canada and it’s been this way for a long time is we don’t have an innovation policy in Canada. Unless you call benign neglect a policy. We have an invention policy and in fact all of our money goes for invention and that’s the gross error.

I love this statement as it’s so straight forward and unapologetic. We need more people like Martin to speak out this way.

I strongly recommend listening to the full discussion. They discuss value of design in new product development, the reasons for lack of commercial success for Canadian “invention”, the sad state of the VC industry in Canada and much more. It’s very honest and in many places quite astute, and I feel, long overdue.

Saeed

Canada’s Innovation Gap (part 3)

Innovation GapNOTE: This is a bit of a long post, but it is also long overdue. In it, I present some needed steps to address the innovation issue in Canada. So, bear with me on the length and I really would like to hear your thoughts on the topic.

Back in the fall, I wrote part 1 and part 2 of this series.

Part 1 talked about the overall problem that was described in an article in the Globe and Mail on the same topic.

In part 2, I wrote about the Conference Board of Canada’s annual study entitled How Canada Performs,  A Report Card on Canada, and in particular Canada’s consistently miserable ranking on Innovation.

The final numbers for the 2009 Report Card are finally(!) out, and yet again, Canada scores a D on Innovation.

(click to enlarge)

Here’s a video from 2008 describing the issues identified in the report. Nothing has changed from 2008 to 2009 so the comments are still valid.

According the video above, The biggest problem Canada faces regarding innovation is:

our failure to turn good ideas into products and services that can be sold on the world markets.

Did Edison actually invent the lightbulb?

Here’s a story to illustrate this point. I’m sure you’ve heard of Thomas Edison. Who hasn’t?

But have you heard of James Woodward or Thomas Evans? Probably not.

Woodward and Evans, two Canadians living in Toronto in the 1870s created the first electric lamp with a shaped rod of carbon held between electrodes in a glass bulb. The gas in the bulb was nitrogen. They patented this invention in Canada in 1874.

They tried to raise capital to form a company to further research and develop the product, but were met with ridicule. Who could possibly use such a thing?

In 1876 Woodward received a US patent for the invention. In 1879 Edison bought out the patent completely and used it in his own pursuit of electric light.

It’s important to note that Edison was working simultaneously on his own electric light as was British inventor Sir Joseph Swan. In 1880, Swan and Edison teamed up to create the first commercially viable bulb.

So did Edison “invent” the lightbulb? Clearly no. But he was the first to bring a viable bulb to market and make it available to the masses. And that’s why he’s remembered for the lightbulb, and Woodward and Evans are not.

Groundhog Day all over again?

This story, unfortunately, has been repeated many times over since the 1880s. There are many similar examples of Canadian innovations and technology that only gained broad success AFTER being bought by foreign companies or AFTER the inventors went to the US or overseas to more receptive markets. Whether in software, hardware, biotech, or other areas, the story repeats itself into the present.

Finding solutions

So what can be done to start changing this truly sad state of affairs? Here are few suggestions. They are not comprehensive, nor fully fleshed out, but to me these are important steps that must be taken.

  1. Fully utilize the skills and abilities of the Canadian workforce
  2. Fix the financing issues for entrepreneurs
  3. Match technologists with experienced Product Management and Marketing  resources early on
  4. Create a national culture that celebrates innovation
  5. Resource industries can no longer be the primary focus of Canada’s international trade strategy

I’d certainly love to hear what you have to say. Whether you live in Canada or not, it doesn’t matter. No country is immune to this problem, though certainly some countries have far more focus on it than others.

1. Fully utilize the skills and abilities of the Canadian workforce

This is a message for employers. Canada has an educated, driven and skilled workforce capable of making great contributions in the workplace — if given the opportunity.

A recent article in the Globe and Mail entitled, Returning Canadians Chilled by Workforce, looks at the experiences of people with overseas experience coming back to Canada. The following quote from the article talks about Roy Pereira’s experience after returning to Canada from Silicon Valley.

Instead of his experience translating into a valuable asset for Canadian companies, he discovered it was much more difficult than he expected to find a job that allowed him to use his skills and knowledge.

I totally agree and experienced the same thing. When I was looking to move back to Canada from California,  most interviewers focused on the Canada/US exchange rate and salary differences in the two locations. They didn’t care about my skill set, my contacts, my experience etc.

This narrow minded thinking impacts everyone, new immigrants as well as returning expatriates. There needs to be a cultural change made by employers. We are competing in a global economy and international experience and contacts are invaluable in that regard.

People are truly the most important assets knowledge-based companies have, and employers and managers MUST learn how to use those skills to their advantage instead of trying to force fit people into narrow definitions that do little, if anything, to truly benefit from the skills people have available.

2. Fix the financing issues for entrepreneurs

This topic could fill several blog posts alone, so I’m going to focus on one very specific point.

Canada’s venture capital community is a mess. Don’t believe me, then read the articles in this series entitled The Future of Venture Capital in Canada.

When I say, fix the financing issues, the reality is that there needs to be a better, more symbiotic model that can help both the entrepreneurs and the financiers become successful.

Most tech companies in Canada don’t need millions of dollars in series A and B financing. What they need most is targeted assistance very early on. As Rick Segal says:

… we have to learn how to fail faster.When it comes to software, you can build, test, rework, and test again for under $100,000. We need a structure in place that allows that kind of money to be thrown at something to see if it works, and if it doesn’t, kill it and try something different.

He’s basically talking about dollar amounts that are traditionally supplied by Angel funds. A healthy and efficient Angel funding network would do wonders to help small entrepreneurs get over that initial hump and get some market validation.

Or perhaps something more like YCombinator is needed in Canada.  Either way, small amounts of well targeted early stage funding will have a huge impact on moving small companies forward to the next stage in their evolution. There is a lot of room for improvement in this area.

3. Match technologists with experienced Product Management and Marketing  resources early on

OK, this may sound completely self-serving but it isn’t. It’s absolutely true and absolutely critical.  And it goes to the heart of what the Conference Board of Canada identified as the biggest weakness we face in innovation. i.e. taking good ideas and turning them into successful products.

The early stage funding model as described above is about being lean.  Given that, there is little margin for unnecessary mistakes. So, while it may be good to fail fast, failing fast for the wrong reasons is stupid. And even worse is working on something that is bound to fail and not knowing it for far too long.

This is where focused Product Management will add significant value for early stage companies, because success is not simply about the technology or the product that is built. It’s about being lean and efficient, ruthlessly efficient in all the steps needed to bring the product to market and make it successful.

Everything from identifying the right market problems to solve, finding valuable market segments, positioning products against competition, defining pricing models and launching products are critical to success. In short Product Management will help the technologists focus on the right problems and the optimal outcomes. These are not skills that are widely available in Canada, let alone in the high tech industry in general. But they do exist and need to be utilized.

Look back to my post on Bill Campbell of Intuit and you can see that Silicon Valley has the same issues.

Only with the combination of technical skills, necessary funding AND market knowledge can success rates for entrepreneurs improve.

4. Create a national culture that celebrates innovation

Canada has many examples of innovators in it’s history. The telephone, electron microscope, the zipper(!), insulin and newsprint were all invented by Canadians. But, with the exception of Bell’s telephone, very little of this history is taught to Canadians in school. We have a society that is frightfully ignorant of it’s own history and accomplishments.

Not only do we need to teach our children and students about Canada’s history of innovation, but we also need to change the culture to celebrate and focus on innovation today.

How can we do this? Use the Participation model, but apply it to Innovation!

Participaction, started in the early 1970s, was (and still is) a national initiative to get Canadians to be more physically active. It included TV, Radio and print advertising. It included corporate sponsored runs and other activities. There were Participation challenges in various cities across Canada.  It got the country moving again and is credited with creating a bit of a fitness craze in the 1980s in Canada.

We need an analogous program to get Canadians aware of our history of innovation, and both the value and potential that it can bring to this country. Like Participaction, the program must be multi-faceted and continuous over a period of many years. Education, events and initiatives to bring people with ideas, money and market savvy together would help accelerate the efforts of entrepreneurs across the country.

A coordinated Participaction-like program could help reshape the innovation landscape in Canada over the next 10 years.

5. Resource industries can no longer be the primary focus of Canada’s international trade strategy

I’ve left this one to last because it may be the most contentious and least likely to happen in the short term.

Canada is a resource rich country. There’s no denying that. But for far too long resources like oil, gas, lumber, coal, potash, nickel, gold have dominated both the economy and the political mind. But we need to change that. Resources will play a prominent role in the Canadian economy for decades to come, but software, green-tech, biotech, life sciences and other knowledge based industries must grow in size and economic influence in Canada.

Our political leaders are far too focused on short term economic incentives and promoting low value jobs in the resource sector. They do this because it is easy to do and has short term political benefits. It also supports the current power structures in this country, as they have significant interests in resource industries.

The resource sector can’t be ignored, but focusing on it cannot be done to the detriment of high-tech, biotech and other industries where Canada can make significant gains.

Alberta was “king of the world” 2 years ago, sitting atop hundreds of BILLIONS, if not TRILLIONS of dollars of oil in the tar sands. Today, with the world economy depressed and both the demand for and price of crude oil well below peak levels, things don’t look so bright there. Yes, demand for oil will pick up, but other factors including alternative fuels and ecological awareness of the impact of excavating the tar sands are working against Alberta.

Why not learn a lesson from this and invest in a more diversified economy while there is still time? We need policies that look to the next decade and the next generation, not simply to the next budget or the next election campaign.

Canada needs a diversified, technologically efficient economy that can utilize the intelligence, knowledge and drive of it’s population.  There is little debate on that point.

The key questions are how best and how soon it can be done.  I’ve outlined a few suggestions here. I’d love to hear from the rest of you on this topic, whether you live in Canada or elsewhere, because I’m sure Canada is not unique in this regard.

Saeed

P.S. Here’s a great Canada focused blog that covers this topic as well as many others related to the future prosperity of Canada. It is both thoughtful and insightful. I highly recommend it.

http://dontleavecanadabehind.wordpress.com/

ProductCamp Toronto Spring 2010

A quick announcement that a time and date for the next ProductCamp Toronto  has been set.

The Date: Sunday May 30, 2010

The Location: Ryerson’s Ted Rogers School of Management in downtown Toronto.

More information will be coming in the near future, but mark the date and stay tuned.

For those using Twitter, keep watching the  #pct3 hashtag.

Saeed

WWANPD (What would a normal person do?)

I was walking with my friend Michael last week in the Oakland hills, and he came out with the most hilarious question: What would a normal person do?

Product managers often gripe:

  • My boss says I should be more strategic, yet I am assigned only tactical projects
  • We say we want to be market driven, but I’m not allowed to call a customer without the sales person on the line
  • We ask “why did we lose this account”, but no product managers are allowed to interview the buyer
  • They say I’m essential to the company, but I never get a raise, and I never get promoted

Ask yourself: In this situation, what would a normal person do?

Or meme it: WWANPD?

- Alan

If you love something, set it free

I’ve been looking for some new exercise routines, and came across two very interesting techniques: the 5×5 “strong lift“, and “Muscle Activation Technique” (MAT). These two both compete in a sea of different ideas for exercising … it’s a very competitive space.

But their web and information strategies are very different MAT is losing a huge potential market by holding on tight to its IP. Strong Lift is killing in the market by giving away the message for free.

Strong Lift 5×5 offers a fairly conventional strength training routine. They vary the workouts somewhat from the standard (5 sets of 5 reps each, rather than a few sets of 8, 10, or 12), and they have a way of increasing the weight systematically, and they start at a very low weight for several weeks. But Strong Lift isn’t very new. It should be boring.

MAT, by contrast, is a radical technique that offers non-linear improvements over time. The author discovered new science that can dramatically improve strength and range of motion with very little time and effort invested. It should be exciting.

But these two methods are marketed in very different ways. MAT is limiting its potential very substantially by using a conventional marketing model:

  • Little or no free information
  • Short videos that are promotional but have little value
  • You can’t get started with MAT without spending $80
  • MAT is focused on training teachers, not you and me … so they sell training courses for $400+

By contrast, the Strong Lifts 5×5 website gives a lot away for free:

  • Free eBook that gives away the technique, tells you how to do it
  • Blog with tons of free information
  • Daily email list with suggestions on how to get started

Which one is winning? I think MAT has the potential to revolutionize physical fitness. Strong Lifts is just another exercise regimen. But by giving away so much free content, Strong Lifts claims to be the #1 strength training website in the world, with readers from 180 countries.

Here’s a graph showing relative traffic on these sites.

Last month, stronglifts had 85,000 visitors, while MAT had 215.

Something tells me that MAT has a lot to learn about letting go of their idea … if you love something, set it free.

- Alan

PS: I’m such a fan of MAT that I’d love it if you all emailed them and told them what they’re missing! Here’s their email. And contact form.

Who cares about the soft stuff?

The longer I live, the more I internalize it: We succeed or fail to a large extent because of our ability to establish and sustain good relationships. Yes, you need a strategy and need to be smart enough, but PMs need to be leaders. If no one is following you, you’re not a leader!

Think about your own career ups and downs. How many of failures are you blaming on others? And how many successes do you chalk up to your own brilliance? I suggest that you take a look inward and you’ll find the seeds of many of the problems you experience in the outside world.

My friend and colleague Michael Papanek has just launched a new blog covering topics that will help you in your career as a product manager. Michael specializes in strategies, skills and tools to implement change. Michael has taught me a ton about collaboration, leadership, and personal and organizational change. If you’d like a sample of his thinking, here are some articles to get you started:

Hearing the hardest feedback

Five steps to giving feedback

Driving success? Try fewer controls

Removing stop signs in your organization

Finally, I interviewed Michael a few weeks ago on what he calls the “Resilient Relationship”. You can hear our discussion here.

Every PM should be thinking about leadership and organizational issues!

- Alan

The Power of Differentiation

Have you ever walked by a hot dog vendor on the street and wondered how they compete with other similar vendors?

If you haven’t, that’s understandable. If you have, you’re likely an overworked Product Manager.

Do they try to differentiate on price, location, variety of condiments, selection of drinks, cleanliness? Do you think they even think about differentiation?

They probably don’t think about it much unless a competitor co-locates very close to them.

Regardless, have you ever seen a hot dog vendor with line ups an hour long? Do you think major international media outlets would take turns interviewing one particular vendor in a major city?

Well, this is exactly what happened to one specific street vendor during the recent Winter Olympics in Vancouver.

The vendor is known as Japadog, and serves a unique variation on the frankfurter. Japadog can most simply be described as a Japanese take on hot dogs.

Most of the meat in the buns is either beef sausage or bratwurst, although they do offer fish sausage and promise a Kobe beef sausage  in the future.

Toppings include items such as seaweed, bonito flakes, mashed potatoes, cabbage, teriyaki sauce and Japanese mayo. Here’s the menu from one of their cart locations.

(click image to enlarge)

While this may sound strange to hot dog traditionalists, it’s incredibly popular with Vancouverites and visitors to the city.

The media attention received by Japadog, particularly during the recent Olympics, made it so popular that expansion plans to other cities are in the works.

The lesson here is simply a reminder of something we all know, but often forget. Differentiation is your friend. Find a unique way to position and offer your product to the market, particularly when the market is commoditized (as is the case with many hot dog vendors), and you create the opportunity to rise above those competitors and attract both market share and recognition.

Look at virtually any market leading product and you can usually clearly identify how it’s makers created compelling differentiation  from it’s competitors.

And for those of you who want to learn more about Japadog, here’s a short video.

Saeed

Questions for Product Managers

It started with an interview on Red Canary, talking to Product Management leaders in Toronto, including Alan Armstrong, Stephen Pollack, Lee Garrison and Roy Pereira.

Interestingly enough, I know all of these people personally. I have worked with  Lee & Alan, worked for Stephen, and know Roy through very close common contacts.

In the interview, they each answered the following six questions:

  1. Tell us about the best product you’ve ever encountered? Why do you like it?
  2. How do you know a great product manager when you meet one?
  3. What’s your favorite interview question?
  4. When is the best time for a start-up to hire a product manager?
  5. What has been the defining moment in your career?
  6. Mistakes. What was your biggest?

Steve Johnson took up the challenge and posted his answers to those questions on his blog, and most recently Scott Sehlhorst did the same.

I thought it was time to join the discussion myself.  So here are my answers to those same six questions.

Tell us about the best product you’ve ever encountered? Why do you like it?

I’m a big fan of any product that “just works” or surprises/delights me in some way. I don’t have a “best” product, but here are a few that I really like and use regularly.

  • The Blackberry – It does what it promises,efficiently and in a very compact form factor. It’s not perfect, but it’s really good, and it can take a beating like no other device I’ve seen. I’ve dropped my Blackberry many times and it is no worse for wear. To quote an old advertising phrase — “it takes a licking and keeps on ticking”.
  • Dyson vacuum cleaner — I’ve blogged about Dyson previously, but after 3 years, the thing still sucks more than any other vacuum and leaves it’s competition in the dust. Sorry couldn’t resist. :-) What really amazes me about it is that their customer service is also really great. A small part broke on the bottom of the machine. I called the toll-free number clearly visible on the cleaner itself. The person on the phone quickly confirmed which part was broken and they shipped me a replacement free of charge a couple of days later. The cleaner was clearly designed for this kind of diagnosis and service. Awesome.
  • The Honda Civic — We’re a Honda family so I don’t have experience with other brands of cars, but then why would I need to? I love the Civic because it just works. I’m terrible when it comes to maintenance and oil changes etc. but even with minimal attention it gets me where I need to go.  It’s both totally reliable and easily affordable. That’s what I want in a car.

How do you know a great product manager when you meet one?

If a product manager adheres to all of these rules, then they must be great! :-)  Certainly product managers need to be smart, analytic, understand technology and markets, and be great communicators and leaders.

But if there is one thing that I think really defines a great product manager, it’s the ability to “connect the dots” in seemingly unrelated or conflicting contexts.  Perhaps another way to say this is product managers need a strong mixture of creativity, curiosity and intuition.

Steve Johnson answered this question with the line:

A great product manager sees patterns.

Scott wrote:

Great product managers are polymaths, with several areas of deep expertise and skill.

While written differently, these are similar answers and tie in well with the ability to connect dots.

A lot of times product managers need to find solutions to problems that are highly constrained — usually WRT budgets, resources or time. Finding solutions that satisfy business, technical and market requirements, and being able to sell those solutions to executives or other doubting Thomases are hallmarks of a great product manager.


What’s your favorite interview question?

The one I like to ask potential product managers is:

What one word best describes Product Management?

I’ve asked that question on the blog. Here are the results.

It’s always interesting to observe interviewees struggle with the question as it usually catches them off guard. And of course, once they come with an answer, the obvious follow up question is “Why?”

When is the best time for a start-up to hire a product manager?

This is a great question and core to how our industry understands and values Product Management.  I’m clearly biased here, but I have to agree with Stephen Pollack’s response:

Thirty days before you start the company.

This answer also lines up perfectly with what Bill Campbell of Intuit said about Product Management.

Too many people don’t actually realize the full scope of the Product Management role. It’s not just about product requirements, even at the very earliest stages of a company. I’ve seen too many founders of companies create offerings (I won’t call them products), that didn’t completely address market problems, that weren’t differentiated from competitors, or  that didn’t target specific market segments and problem domains.

And what happened then? They brought in “a product manager” to help address the issues. Sorry, way too late. Why spend another year and potentially millions of dollars to fix problems that you could have addressed right at the start?

What has been the defining moment in your career?

I’d say it was leading the Product Management efforts of the flagship product of a public company in Silicon Valley. The release was described by the CTO as “the biggest, most ambitious release in company history.”

That effort consumed my focus  for almost 2 years, and I learned so much during that period. I’ve shared some of it publicly.

I ran a large beta program during that release and used that experience to write this article on betas.

I gained a greater understanding of how to optimize cross-team communication.

I also gained some insights into leadership, particularly when dealing with people across departments, geographies and areas of focus.

Mistakes. What was your biggest?

I’ve certainly made my share.  My biggest was probably not understanding (for far too long) the impact personal motivations and politics played in Product Management. I’ve written that for product managers,  “Every activity is part of a sale.

Virtually everything we do in Product Management relates to influencing others to support our goals. In most companies, Engineering won’t simply do what the PM asks.  Darn. :-)  And certainly in larger organizations, with significant constraints, misaligned objectives and even compensation conflicts, people will focus on what is of benefit to them. They will optimize locally (i.e. what’s best for them or their team).

A lot of what Product Management is about to get teams to optimize globally (i.e. what’s best for the product or the business), sometimes at the cost of local optimization. This is where selling becomes important. The sale is in getting other teams to agree to do what you need, and to get that, you have to understand their motivations, drivers, goals and objectives. Once I understood that, life became much easier for me as a product manager.

Saeed

P.S. I’d love to see the Cranky PM’s answers to these questions.

Google Buzz Fail

Tom Grant has a great article today on Google Buzz: “You Do Not Understand Collaboration“.

Tom sums up the mistaken approach thusly: “It worked for us inside the firewall, so we never thought it’d have a problem outside the firewall”. Well put. He goes on to talk about the differences between enterprise collaboration and social networking, and some interesting observations about requirements for collaboration tools. Another quotable phrase: “not everyone is using collaboration tools to solve the same problem”.

My question is whether Google will learn key PM lessons from Buzz, or whether Buzz foreshadows an inside-out approach from Google that could severely limit the success of its future products.

- Alan

Shop Talk Q&A with Steve Johnson

PM guru Steve Johnson just posted his responses to the Red Canary Shop Talk Q&A. Great answers Steve! I love Steve’s interview question: “What’s your favorite MS Office app?” … the answer will tell you a lot about where your applicant is focused, in marketing, sales, or development! Check out Steve’s views on other topics, such as when should PM be hired at a startup, and a previously unannounced (?) book to be written some day by Steve.

- Alan