Has your company been struggling to meet the needs of consumers despite extensive work on product development? Your problem may lie in how well you understand your customers. In Continuous Discovery Habits (2021), Teresa Torres presents a transformative approach to product management, arguing that successful product teams must engage in continuous discovery alongside their delivery efforts. Rather than treating customer research as a sporadic activity, Torres advocates making it an integral weekly...
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According to Torres, conventional product development focuses on delivery, which is the process of creating your product and getting it into the hands of consumers. Discovery, on the other hand, is the process of conceptualizing and selecting the product you’ll make. Torres suggests that many companies overemphasize delivery metrics (like on-time shipping and budget adherence) while underinvesting in discovery, leading to products that may be well-executed but don’t meet customer needs. (Shortform note: Torres’s advice is primarily geared toward digital product development, but it may also be applicable to other types of products.)
For example, a company that sells digital courses might invest a great deal of time and energy into developing and launching a course on a niche topic like extreme mountain biking only for the product to flop because customers aren’t interested in it. Even though the company did everything right with delivery—they got it out on time and under budget—they failed to do sufficient discovery work to make sure the product was something customers would want.
To remedy this, **Torres recommends that companies engage in habits that promote...
Torres explains that, without discovery practices, companies will be unable to keep up with customer needs and desires. Therefore, to maintain a practice of ongoing discovery, companies should interview customers no less than once a week.
However, a challenge with customer interviews is that customers usually aren’t very good at describing their own behavior. Their thinking is constrained by cognitive biases and a lack of understanding of what could be different. For example, a customer might say they base their decisions about which laptop to buy based on how much memory it has, but in reality, the computer’s appearance may have a greater impact on their purchasing habits.
(Shortform note: In Predictably Irrational, Dan Ariely expands on the idea that customers aren’t very good at describing their own behavior. He argues that we have two selves that drive our decisions: one that’s in a “cool state” that can make decisions rationally, and another that’s in an emotionally aroused state, which leads us to make...
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Torres points out that product development teams often already have a few ideas compiled for solving issues they’ve noted. However, these tend to be the first or second solutions they’ve thought of, and research shows that our first ideas are rarely our best ones. Instead, it’s important to generate many ideas in order to stimulate the creative process and come up with the best solution.
(Shortform note: In Where Good Ideas Come From, Steven Johnson expounds on how good ideas develop. He explains that ideas don’t magically appear out of nothing; rather, they build on existing knowledge and ideas, which can help explain why the more ideas you come up with, the better each new idea...
The next step is to identify the underlying assumptions behind the decisions you’re making—assumptions you’re likely unaware of. Every assumption you make represents a risk that your solution won’t succeed. You may have come up with three solutions that seem promising, but if they’re based on faulty assumptions, they’ll be doomed to failure.
Torres outlines five key categories of assumptions that product teams need to consider: Desirability assumptions relate to whether customers want and will value the solution. Viability assumptions concern whether the solution makes business sense and will provide adequate returns. Feasibility assumptions address whether the team can build the solution from both technical and organizational perspectives. Usability assumptions examine whether customers can use the solution. Ethical assumptions consider potential harms and negative impacts of the solution.
(Shortform note: We make assumptions because our brains evolved to take shortcuts in order to reduce the amount of information we’d need to process to make decisions. These shortcuts...
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Jerry McPheeOnce you’ve identified your assumptions, test them one at a time. Torres says your goal is to assess whether you have sufficient evidence to believe that an assumption is true. If you don’t, you’ll need to remove that assumption from your decision-making process and revise your product development pipeline accordingly. This helps you mitigate your risks and ensure you’re making the best, most well-thought-out product development decisions possible.
(Shortform note: To determine which assumptions to test first, consider using the assumption slam model. This is a chart that allows you to graph your assumptions based on their importance and how much evidence (or knowledge) you already have that they’re correct. You should prioritize testing the assumptions that are high in importance but low in knowledge, as these represent the greatest risk if they turn out to be wrong.)
To test your assumptions, Torres recommends that you simulate a customer experience. Rather than asking customers what they would do hypothetically, *recruit customers to participate in simulations where they can demonstrate...
Now that you’ve gathered all this discovery information, you can apply it to product development. At this stage, you’ll start doing your delivery work in tandem with your ongoing discovery work. While some view delivery and discovery as separate processes, Torres argues that discovery and delivery are deeply intertwined—discovery work often requires some delivery to test assumptions in a real environment, and delivery work generates new insights that can be fed back into discovery.
(Shortform note: Some companies separate teams for discovery and delivery, but this stage of integrating the two means that it’s important to have the same people working on both of these processes. While separate teams can offer different benefits and innovations, it’s impractical to have one team coming up with innovative solutions and a completely different team implementing them—separating your discovery and delivery teams means that your delivery team often won’t know how to implement solutions from discovery, and the discovery team might not be able to incorporate insights gained from delivery. Thus, product management expert Marty Cagan asserts that [the same team responsible for...
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Torres argues that successful product teams must engage in continuous discovery alongside their delivery efforts to create products that truly meet customer needs. Let’s explore how you can implement her key discovery practices.
Think about a product or service your team is currently working on. Using Torres’s opportunity solution tree (OST) framework, write down your desired outcome—the value you want to create for your customers. Remember to focus on the outcome rather than specific outputs or features.