In the last two weeks we’ve looked at scary, wild, outrageous and threatening occurrences in the business environment and then categorised these using a TOWS analysis. The final step is selecting what to do.
Making a selection is fraught with risk, and doubt. The risk is illustrated by a 2019 CB Insights study of 311 Startups that showed that 42% of startups die because they work on products with no market need the opportunity lacked insight.
But speak to a customer about their current world and they will describe a solution for their current context. It was Henry Ford who said if he asked his customers what they wanted it would be a faster horse.
It’s up to you as a leader to identify the right strategies to implement the most important problems to solve, and then to solve them in a unique way.
HAIR ON FIRE PROBLEM
How I have now learned to identify those problematic solutions is to seek Hair on fire problems.
To illustrate Michael Siebel wrote of his interactions with Marc Andreesen and Sequioa capital
“If your friend was standing next to you and their hair was on fire, that fire would be the only thing they really cared about in this world. It wouldn’t matter if they were hungry, just suffered a bad breakup, or were running late to a meeting—they’d prioritise putting the fire out.
If you handed them a hose—the perfect product-solution—they would put the fire out immediately and go on their way. If you handed them a brick they would still grab it and try to hit themselves on the head to put out the fire. You need to find problems so urgent that users are willing try half-baked, v1, imperfect solutions.”
FINDING A HAIR ON FIRE PROBLEM
Building on this fantastic metaphor Michael Skok adds the 4U framework for finding the perfect customer problem. In fact, if you look inside your own organisation, you should be looking for your own hair on fire problems too… and not just identifying opportunities but also the hair on fire threats you must immediately address.
He describes the perfect hair on fire problem as one which carries one or all of these four attributes:
- Unworkable
- Unavoidable
- Urgent
- Underserved
UNWORKABLE
In an unworkable situation, the customer is unable to complete their business or personal process, and the consequences of this are significant enough to cause the customer to seek a solution. So, does your solution fix a broken business process where there are real, measureable consequences to inaction? Will someone get fired if the issue is not addressed?
*If the answer is yes – then that person will likely be your internal champion.
UNAVOIDABLE
Unavoidable problems are often triggered by an event outside of the customer’s control such as a regulation change, or compliance obligation. In these instances, the problem is unavoidable, and the customer is forced to seek a solution in order to comply. So, is the problem driven by a mandate with implications associated with governance or regulatory control? For example, is it driven by a fundamental requirement for accounting or compliance?
*If the answer is yes – then that group will likely be a champion.
URGENT
Urgent problems are big enough, or painful enough that the customer is unable to live without a solution. Relative to the customer’s other problems, the problem you are solving should take high priority. Ideally your target problem will be at the top of their list of problems to solve. Remember, if you aren’t in the top three of problems in dire need of solution, then you are unlikely to get the required customer attention to make a switch to your solution. So is it one of the top few priorities for a company? In selling into businesses, you’ll find it hard to command the attention and resources to get a deal done if you fall below this line.
*If the answer is yes – then you know you’ll have the attention of the c-suite.
UNDERSERVED
A market with underserved problems will have strategic benefit for organisations looking to create solutions. With less competition in the market, your product will have a stronger chance of success. So, is there a conspicuous absence of valid solutions to the problem you’re looking to solve? Focus on the whitespace in a market or segment.
*If the answer is yes – then you know the market is primed for the solution.
While I’ve focussed on finding customers who’s hair is on fire, this can equally be applied inside your business. All to often, having lived with the inconvenience of having on-fire hair, but in search of the Unworkable, the Unavoidable, the Urgent and or the Underserved you will gain clarity and focus.
I use this metaphor in my modules and it both resonates (with people speaking about “hair on fire” problems or usually the lack thereof) and is memorable (again participants mention this metaphor more than others).