Open Source Tools For Change Agents Lean Service Creation 2.0 - Futurice
Open Source Tools For Change Agents Lean Service Creation 2.0 - Futurice
Hanno Nevanlinna
Risto Sarvas
Change
Agents - the what, the how and the why
L E A N SERVICE CR E AT ION
Content
Introduction ............................................................................................. 10
Scaling Learning on a Corporate Level Interview with Marco Ryan, Wärtsilä ...54
Client Case: Vapo. How to Change and Never Turn Back? ................................82
The Danger with Tools. Interview with Kristian Luoma, OPLabs ..................... 88
LSC is a Movement, Not a Method Interview with John Oswald, Futurice ...... 90
The Canvases: Lean Service Creation the Handbook 2.0 .............................. 104
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Introduction
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IN 2013, ONE OF FUTURICE’S clients made an on what to prioritize, where to invest time and
exceptional request. Instead of an assignment to resources, and so on.
create new digital services, they asked Futurice to Lean Service Creation seemed like a set of
teach them how they work. tools that aids with all of those issues. I wanted
That was when the process known as Lean to find out if such simple poster canvases can
Service Creation was formulated into a series of actually help solve them. Even more, I wanted to
canvases for the first time. Since then, Futurice see what happens to people who work with them.
has printed the series of tools in over 15,000 Furthermore, it seemed to me that the
distributed booklets and taught people how to pioneering culture of Futurice, a company built
use them in dozens of companies, universities on the values of autonomy, transparency and
and public institutions. trust, is embedded in the Lean Service Creation
The impact of the simple set of poster process.
canvases has been incredible, yet to a certain For a company to actually rely on its staff to
extent invisible: known only to those who transform the business and create new value by
participated in the process, and to the staff of focusing on the customer seems self-evident, but
Futurice who facilitated them. reality is often far from it.
The ramifications of the process have been, Based on what I know of Futurice, their
more often than not, profound, sometimes thriving business is actually linked to those
even revolutionary, for both individuals and values and autonomy of the personnel in
organizations. This is why the creators of LSC everyday life.
tools decided to share not only the tools in Founded in 2000 on software development,
another print run of the canvas set, but also the Futurice has since grown into a business of over
user experiences and insights of people who have 500 people in five countries with a turnover of
adopted them. 50 million euros. Having been honoured twice
When Hanno Nevanlinna, Head of Culture as the best workplace in Europe, the company is
at Futurice, called me to get recommendations very serious about developing its autonomous,
for good writers, I felt tempted. Even though my humane culture even further.
daily work as a management consultant is far So I agreed to accept Hanno’s request, with
from that of a reporter, the thinking behind the a hidden motive to learn the tools myself. I
Lean Service Creation process appealed to me. attended several one-day courses and company
demo sessions, interviewing the developers of
THE REASON IS SIMPLE: in digital transformation, the tools, the Futurice staff members using them
companies and organizations often struggle with and clients implementing them.
the whole process of change: both the what and
the how. The need to change is there, even the
will for renewal, too often overlapping with far
too many simultaneous projects and urgent daily
matters to attend to, on top of conflicting views
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Marjaana Toiminen
April 2018, Helsinki
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The
Revolution
from
Within
A set of posters for new business
development trigger a transformation of
thought and action
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THE FRAMING
It started out, as new thinking often does, with The need to formulate a sustainable, repeat-
atoms of insight gained during a long, unbroken able and transformative process for creating new
succession of days, weeks, months and years. digital services had been present in Futurice’s
Even for Isaac Newton, the apple that struck practice for years. The need to crystallize this and
his head would have been no more than a minor share it grew as its potential was revealed in their
nuisance if he had not already been reflecting on daily life, in their work with customers.
the idea of gravity.
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That is how Lean Service Creation came into The set of tools has expanded and the process
being in 2013, as a client requested Futurice to itself has evolved over the years. The relevance,
teach them how they work in creating digital potential uses and purposes of the process have
services. That is when the Futurice way of think- grown dramatically – perhaps even exponentially.
ing, which has now grown into the Lean Service In every industry, the spread of new digi-
Creation process, was documented for customers tal technologies and the rise of new disruptive
for the first time. threats are transforming business models and
Since then it has been tested in dozens of organizations. Globalization, changing customer
organizations, proven useful and even revolu- behaviour, the lowering of market entry barriers,
tionary by thousands of users. Multinational along with the rise of the data-driven platform
corporations such as Wärtsilä, Tesco, Telia and economy, all pose potential threats to businesses
BMW have successfully implemented it at scale. from the industrial age.
Educational institutions, organizations within the Amid the accelerating speed of change, the
public sector and a vast number of companies of ability to adapt, change and react has become a
all sizes and various business sectors have bene- crucial skill for all organizations, regardless their
fitted from it. size or industry.
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We might claim that there is not a single to act upon intentions. Or, a company might lack
company, institution, association or government a shared vision of the future and even a shared
service where the rapid shift sparked by digital language to analyse the transformation they face.
transformation has not brought about fundamen- In the digital business environment, the pro-
tal changes. cesses of the analogue world may no longer be
sufficient, or they may have even become outdat-
But there are. Of course there are. ed altogether. Yet companies need to adapt, need
to grow, need to transform.
THERE MIGHT BE an awareness of the digital shift,
but no urge to change. There might be a compul-
sion, but not a need. There might be a willingness
to change, but indecision as where to focus, no
structure to make it happen in the midst of all
the everyday hassles.
Or, even more frequently, there might be a
strategy and will to change, but also an inability
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itself is a
Yet an astonishing number of companies still
seek growth primarily via cost reduction. The
need to change is far more common than the
trigger for
courage to transform.
According to Barry O’Reilly, author of Lean En-
terprise, only 29% of companies on the Fortune
a more
500 list have plans for new products as a source
of growth. If the number is accurate, the lack of
innovation is in stark contrast with the countless
fundamental
possibilities of the digital era.
“We have an amazing ability in digital technol-
ogy to iterate in seconds, to capture volumes of
renewal, for
data on how users behave and engage with our
systems at scale. Yet most of the processes we
build around our business operations are slow
rewiring the
and legacy-oriented. We have long, slow feedback
loops that do not match the speed of the market
or the complexity we are dealing with. Yet this
– and think.”
NO WONDER companies and organizations are
perplexed and even anxious as they watch the
digital age unfold.
“The digital age is the age of uncertainty, a
period of transformation that is impacting all
industries. The business logic that has served
for decades may collapse unexpectedly or be
challenged by a newcomer, a disruptor,” says
Eeva Raita, Head of Culture Advisory at Futurice.
Raita has facilitated LSC processes for companies
of different sizes and strategies in Finland and
Germany.
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Additionally, in an old-fashioned company the municates to staff. Managers are used to talking
staff multitask and divide their creativity and on a meta-level, not in a way that is tangible in
focus across many different kinds of projects at everyday life,” says Hanno Nevanlinna, Director
the same time. of Culture at Futurice.
That division is an oversimplification of the Transformation is not only about the products.
diverse world of organizations, but it reveals the It is about the culture, the shared understanding.
fundamental issue: the way a company is organ- The culture of a company is always initiated from
ized, what it measures, how it collaborates and the top.
communicates, both internally and with its cus- “Digital transformation means transforming
tomers, has implications for its ability to thrive in the leader’s role as well. In our experience, this
the digital age. is often the hardest part. We face it quite often
The success of a company in the 21st century when developing new digital services for our
may even depend on these factors. clients. The digital environment is essentially a
The first step towards thriving in the digital transparent one, in which management need to
age is grasping the fundamental nature of the be able to give reasons and argue for their vision,”
change. Digitizing services, investing in tech- Nevanlinna says.
nology or adding competencies are not enough. “No customer has ever approached us with a
According to a recent study by Microsoft, digitiz- request of changing the management. But that is
ing parts of an existing business or developing often where the process leads,” he says.
new initiatives around technology are unlikely “Customer-centricity, which is at the heart of
to succeed unless the company has transformed Lean Service Creation, transforms the role of the
its culture and organization to support the digital manager into an enabler. The role of the manage-
transformation. ment is not smaller – on the contrary. Learning
“Some years ago, the main driver for devel- to enable development processes is not easy, but
oping digital services was having them ‘because it is crucial. The transformation is often hard for
our competitors have them’. Now, the motives any executive, as it often goes deep into the iden-
have more to do with the digitalization of the tity of the leader.”
economy. But executives may still find it hard to
articulate a strategy in a way that really com-
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is less about
not depend on a single team or on the company’s
“digital stars”. Innovation has to be embedded
across, and to be the responsibility of, all teams.
technology
“There are two levers in any organization: sur-
vival anxiety and learning anxiety. Our business
is going to die if we don’t do something! That
and more
is survival anxiety. The aim of reducing learn-
ing anxiety is to enable ordinary people to do
extraordinary things, to enable an endless flow of
about how
capability and growth.”
In addition to relieving anxiety, LSC triggers
empowerment.
we think
“This is a set of tools that empowers the in-
formation age office workers in companies and
institutions. The tools empower workplaces and
and act.”
make them better for the people who work in
them. Better workplaces, happier people. That
is what Futurice aims for: We want to leave a
much bigger footprint on the world than just the
products we develop. For us, it is important that
tools that trigger change are spread and adopt-
ed,” Sarvas says.
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Lean Service
Creation
MANIFESTO
LEAN SERVICE CREATION (LSC) is a systematic and In practice LSC consists of a set of canvases that
adjustable way for multidisciplinary teams to outline the relevant phases in a successful ser-
create new services. LSC stems from Futurice’s vice creation process. Asking the right questions
experience with thousands of software projects at the right time is by far the most important
and it stands on the shoulders of Lean Startup, part of creating a product or service. Each LSC
Agile methods and Design thinking. Hence, LSC canvas poses a series of questions appropriate
is more than a service design process. LSC is your for a particular phase of the process. Keep in
Sherpa guide through all the phases of creating mind, however, that there is no orthodox order of
services from early ideation to finishing the last canvases that you must obey and follow! Rather,
lines of code. LSC is open for modifications and should always
be adjusted to the project at hand.
What is unique about LSC is that is has a social
mission: to make the best practices of design & Importantly, LSC is much more than ink on
development freely accessible to everyone. That paper. It is, first and foremost, about the mindset
is why LSC is free to use, free to adapt, and free and practices that enable the creation of success-
to grow. This has made LSC probably the most ful services. Hence, what counts at the end of the
validated and used open source service creation day is not whether you use LSC canvases, other
process on the planet. It is used from Finland to canvases, or no canvases at all. What counts is
Brazil and from big corporations and universities whether you really are able to live and work by
to startups. these basic principles:
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All for
the Team,
Team for
All
1
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principle
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Love
the
problem
2
not the solution
principle
Us humans are rigged to create solutions
and then falling in love with them because
they are our babies. That’s why the world
is full of technical solutions looking for a
problem. You should fall in love with the
problem, not the solution. A real problem
will not disappear that easily, but you
should be able to change your solution very
quickly. Love your customer’s problems.
Love your organisation’s business problems.
Try millions of solutions that solve them
both at the same time.
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3
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principle
No matter
what you do, be
transparent
about it
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principle
Never stop
iterating, never
stop learning
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EVERY STEP IN creating a new service is a learning worship micro-level targets that are far removed
point. No matter if you fail or succeed in your from reality. The sign of a good goal and target
step, you should learn from it. And to learn is is that they are also iterated and changed as the
often to go backwards and iterate. To be able to team learns and gets smarter. Demand broad
go back and forth is to have good clear goals that clear goals from your executives that leave room
leave room for iteration. The enemy of iteration for learning and iteration.
is a detailed project plan that forces the team to
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5
principle
See
45
Forest,
the
See Trees,
the
Spot
Squirrel
the
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You Are
the
Change
Agent (and here’s the best
toolbox you could have)
“AFTER GOING IN-DEPTH into the Lean Service with the customer. To succeed in that your nar-
Design process, I have realized it is about giv- rative has to be clear and you have to be concise
ing structure to any creative process, regardless with it at all the touchpoints, right down to the
of the end result. Up to now, coming from the last detail.
advertising world, I have regarded all tools as Technology should be the great enabler for
nonsense, as unsuited to creative work. But in all achieving that, but too often it is far from it.
those years in marketing I have secretly longed
for a framework, a structure. The creative indus- I fell in love with this method, even though I of-
try takes a sceptical view of any creative process ten find myself hating technology, or the fact that
or method, relying more on its ability to create technology is not developed on the users’ own
magic. terms, and not focusing on the people that ac-
tually use it. I also hate digitization gone wrong,
Marketing and advertising are business sectors or executed badly. It is a horrendous mistake to
that really need tools like this. Before, we used think that simply by creating digital self-service
to talk about integrated marketing, but now it is functions you will make people happy.
more about building a relationship and engaging
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Technology and design enable intuitive and en- bigger and better by sharing them within the pro-
joyable user experiences that are almost uncon- cess. You become part of it: you claim ownership
scious to the user: the customer simply enjoys of the process and your own work in a new way.
following or using your service, without necessar- You don’t get chances like that in a regular
ily rationally understanding why. That’s far more meeting where you are trying to decide onabout a
meaningful than just producing an application or project. This sort of live-business/live-action role
digitalizing a service. That is using technology in play has potentially huge ramifications for learn-
a creative, user-centric way. I have called this ap- ing together as a team and as a company.
proach the new creative – a combination of brand
and technology. After all, in the ever-accelerating digital trans-
formation, companies have a responsibility to
Lean Service Creation provides the language and help their employees to learn to think and act in
the process for making all this happen. It is crea- the complex business environment. Here’s the
tive thinking at its core, limitless design enabled method for that.
by technology.
On an individual level, being able to see where
Before I got acquainted with lean, I was almost the world is heading, being more perceptive,
afraid of it. It has become a synonym for cost-ef- recognizing and seeing the context behind the
ficient. Companies may think they are lean when transformation is certainly an advantage, for your
they kill new projects as fast as possible. ‘Yep, own personal choices as well. When entire busi-
we failed fast. Check’. More than ever you need ness areas are transformed and get disrupted,
to understand the big picture, the strategy that you as an individual realize that you, too, can be
sparks experiments. Lean must not replace think- a change agent. You can be a part of the change,
ing. You still need to be ruthlessly analytical to one of the architects of the future.
pick out the best ideas. The yellow Post-its on the You don’t need to just let it happen to you.
wall won’t help you unless you use your analyti-
cal skills. The problem with methods is that you Yes, you guessed it, I think we should be talking
tend to trust them in the wrong way. The world about a revolution here. Even though it’s a series
doesn’t change by itself. of canvasses. But clearly also something bigger.
Much bigger.”
On a corporate level, or within an organization of
any size, the great advantage of lean is that peo-
ple learn how to get out of their silos and collab-
orate in a meaningful way. The method is funda-
mentally inclusive. If you work in the back office,
you can participate in the co-creation of new
business ideas. If you consider yourself a creative
genius, you can make your brilliant insights even
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CLIENT CASE: Ossi Porri, Development Manager at Helen (presently at Leanheat Oy)
When
lean and
corporate
collide
Matching corporate culture with lean service
creation isn’t always easy. Especially when
the approaches applied diverge radically from
corporate routines.
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“How can
HIGHLY QUALIFIED EXPERTS find it surprisingly
hard to rely on anything other than their own
processes
someone to grab it. It was a tremendous change
at Helen to turn to the customer and ask them
what they want. It meant a change of principles.
calendar is
become no more than brand-polishing
campaigns – harmless and ineffective. They don’t
spring from the need to reorganize the business,
booked up
to find new income streams that will carry the
business into the future.
for months
Once companies grow big enough, say, into
billion-euro enterprises, the people at the top
can see their priority as being not to make
and months
mistakes, that is, to avoid decisions that might
lead to risk taking. For example, if a phase in the
corporate-innovation process involves making
ahead?”
business plans for the next 20 years, you know
the outcome will be completely artificial. No one
can make solid plans for an untested idea that
will last for two decades. In comparison, it’s easy
for the executives to maintain the status quo and
avoid risks.
*Fake Advertisement is a phase in the Lean Service Creation process, where the team
creates an ad of the prototype being designed, imagining it as it were if actually realized.
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Helen is a Finnish energy production company with 400 000 clients. Ossi Porri is a
development manager for new digital energy services. He is presently at Leanheat Oy.
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“Innovations become no
more than brand-polishing
campaigns if they don’t
spring from the need to
reorganize the business.”
Ossi Porri
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FLASH VIEW:
Marco Ryan, Chief Digital Officer at Wärtsilä
Scaling
on a
Corporate
Level
Any successful transformation requires
communication and collaboration. LSC tools
can be a way for people to realise the true
value of them, Marco Ryan says.
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Also, you need management support to make the and changing them in any profound way. Lean
most of it. That can be as simple as resource pri- Service Creation can help break down that re-
oritization, with dedicated time for that built into sistance. It can be a way for people to realise the
the process in sufficient measure. It’s no good true value of collaboration and communication.
getting people excited about something, then Sometimes they even turn into avid advocates of
saying you still have to manage your everyday the subject.
tasks simultaneously. And to make the process
feel safe, the leaders need to be able to say that In our innovation strategy at Wärtsilä we active-
it is a learning process, you can and are allowed ly encourage our colleagues to suggest internal
to fail. startups. We think of them as intrapreneurs. We
are interested in the incubator methodology,
The essential thing is collaboration and commu- but we also look at acquisitions and early-stage
nication. There might be resistance to developing partnerships. We’ve set up an acceleration centre
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at Wärtsilä, where we learn about, test and scale about them. For example, I developed a mobile
these issues and learn the culture that goes with app that I put on the market to make sure I
them. understood the processes involved. I am a data
scientist by background, you see.
How do you apply the digital mindset to big
companies? How do you change the clock speed? You need to be curious. You need people who are
These are the vital questions for corporations willing to collaborate and communicate. Then
right now. We need to do things faster, to be you need to rely on them to try their best and
more ruthless in our processes. If you change the deliver.
culture in a corporation so that collaboration and
communication function on a new level, if you
get that buy-in, you are able to scale at a pace
that startups can very rarely achieve.
Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy
markets. By emphasising sustainable innovation, total efficiency and data analytics, Wärtsilä maximises the
environmental and economic performance of the vessels and power plants of its customers.
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VOICES FROM THE INSIDE: Juha Pesonen, Lean Service Creation Coach,
Senior UI & Concept Designer at Futurice
Trust
the
Process
– you will be surprised at what you are capable of doing with it
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“One of
the best
experiences is seeing
how the group finds a shared
language and is able to work
in a structured manner,
with visible goals, which it
achieves.”
Juha Pesonen
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The agile working methodology and Futurice’s One of the advantages of LSC from a staff view-
Lean Service Creation process are somewhat sim- point is that the process gives participants a
ilar. Like the agile process, LSC proceeds in steps. context in which to shine, to show off their skills
You come back to your initial ideas, iterate, and and abilities. During the programme, it is normal
develop them further. The cycle of iteration is for the participants to glow with excitement,
actually very close to the agile process. But agile, everyone is filled with enthusiasm. Participants
too, is just a method. It doesn’t have the business with various backgrounds discover that they get
context built in. more out of themselves than they ever thought
they would. And that the process adds to their
What it has in common with lean thinking is the skills and abilities, rather than diminishing them,
ideology of failing fast. You avoid making point- as some might fear.
less investments in products that won’t solve real
problems or fulfil actual needs. In a way, you could One phase that quite often causes tension is
call it risk management. But in comparison with when the company’s decision processes collide
lean development and the Lean Startup philos- with the LSC process. Middle-management hier-
ophy, the Lean Service Creation process that we archies and responsibilities can become obstacles
have developed at Futurice allows you to concen- to the process. On the other hand, the LSC pro-
trate much more on the customer at every stage. cess can reveal inefficiencies in the company that
might otherwise have remained hidden. In some
One of the most surprising discoveries over the organizations, the management has allocated
years has been the flexibility of the tools: you can space for LSC programmes, letting them function
create a campaign for a political party, to dis- like internal startups within the corporation.
cover a way to reach the voters – or, for example,
plan a landfill site, using the same tools. It’s truly It has been necessary to come up with tools to
remarkable the range of things you can create integrate the LSC programme into the organiza-
with LSC. tion’s management systems. So far, Lean Service
Creation has been a tool for the development
For me, the most profound lesson has been trust- team. Now, we are about to introduce tools for
ing the process. I never imagined myself to be a the management team as well.
process-oriented person. I have been a designer,
someone who is innovative and imaginative. But I have coached LSC programmes ranging from
in the end, the ideas are the easy part. Falling in one-day crash courses to schemes that last
love with them is a major temptation. The pro- weeks, months or years. One of the best experi-
cess makes you validate your ideas from all the ences is seeing how the group finds a shared lan-
relevant angles. Yet it leaves you room to use your guage and is able to work in a structured manner,
capabilities and gives you space to form insights with visible goals, which it achieves.”
throughout the various phases.
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Consistency
and
Customer
Focus
at Scale
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“TELIA IS A prominent telecom provider in the corporation. It spurred a lot of enthusiasm, every
Baltics and in Nordics. These days, we use the team worked hard on their concepts and demos,
Lean Service Creation process at a large scale even competed with eachother. The implementa-
throughout the company, and the importance of tion of the demo phase was almost like a game,
the tools have been recognized at the top level. there was voting and prices and so on. For us it
There might be approximately ten LSC programs really worked, it lifted the spirits and brought
ongoing in Telia as we speak. And, at the moment people together. The collaboration between
we are launching a LSC process that we steer by people who hardly knew eachother was superb.
ourselves. We have created a lot of new compe- All ideas were treated equally, everyone had the
tence within the company with LSC and are now courage to speak up.
able to operate on our own. Obviously, it makes
us extremely proud to be able to say that. Iteration was at the core of the project. At each
phase, we had the possibility to pivot, change
My first encounter with the process was the crash direction if needed. And we did, after a mutual
course, one day deep dive into the system. It decision. We had an investor meeting regular-
was perplexing at first, and I did not really get it. ly, in order to introduce new findings and the
The concept idea we worked on was something assumptions that had changed, new possibilities
we came up with just to learn the process. The for piloting concepts, and of course, for feed-
relevance of Lean Service Creation hit me, when back. This was very unusual for the corporation.
we started working on an existing, actual project, There was nothing formal in the process, and the
a real problem. decision making process differed radically from
the traditional one. It was a pure development
At the time of our very first LSC course, the project backed by the management.
company had launched an inner startup working
model with its own management structure and After having finished the LSC course the big
steering group. There were three teams working question was, how to move on. We had worked
within that program with lean service creation our way through the canvases and had come
tools, and I was in one of them. Our aim was to up with the MVP, the pilot. My role was to figure
renew some of our key business areas, a b2b net- out, how to organize the actual development of
work formerly called Datanet. During the program the concept after the LSC course was over. More
we developed a highly advanced version of it, canvases for that phase would have been needed.
called Telia SD-WAN, which has turned out to be The solution I came up with, was to go back to
a huge success in our service offering for b2b cli- the most important achievements we had made
ents. To describe it simply: it is a faster and more in the process, the major findings and slice each
efficient network for companies for internal use. one of them into a separate development item
to go forward. Recently, as I have heard, Futurice
Essentially, the Lean Service Creation process has created more canvases to cover this part of
made us feel like a real startup within a big the process as well.
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There are two major advantages in the Lean Once I got familiar with the process, it surprised
Service Creation process. First, it prioritises the me how widely used most of the tools are. It is
voice of the customer in creating new services. not about Futurice pulling developing tools from
The second is that all teams do it in a similar their sleeve, it is about compiling classic, well
manner. To have a consistent way of focusing known processes together. So if there is someone
on the customer is immensely important for a who doubts these methods, I would encourage
large corporation. It brings certainty, clarity and them to get to know the origin of the tools. They
transparency. are known worldwide, but not in the way Futurice
uses them.”
For us, Lean Service Creation is not a process
with a start and an end, but rather the way we
work at Telia, an essential part of it. To co-create
with our customers, to test fast and iterate is
always the way we initiate new things. Also, we
use the tool box in various ways, sometimes we
might pull out one specific canvas, and work only
that one phase. Recently, for example, we wanted
to test whether the positioning of two of our cus-
tomer products was optimal. We worked on the
business model canvas to find out.
Telia is a multinational telecommunications operator and service provider in the Nordic and Baltic countries. The publicly
listed corporation has a turnover of 2,4 billion euros. The Finnish company employs approximately 3 000 people and has a
turnover of 1,29 billion euros
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Get Naked
and
Listen
The Lean Service Creation process starts with
getting rid of all your preconceived notions
about your idea and your audience. It also
means cutting through the bullshit on an
organizational level, getting past the titles, the
hierarchies that can interfere.
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Communicate
and
collaborate
– then define the future
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Client Case:
How
Jukka Helin, Head of Digital Customer Experience at Vapo (presently at Kela)
to
Change
and Never
Turn Back?
The digital transformation in Vapo, a Finnish
heat and fuel company, was launched when
the top management started investing in
growth. Lean Service Creation process enabled
the shift in thinking: from a fuel production
company to a service oriented one.
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when peat is
In other words, we might be excellent at problem
solving, but are we good at stepping out of the
box entirely? We also need to be aware that we
turned into a
all have our own ideological and experiential
baggage when we start working on new ideas or
making changes.
It is fair to say that this way of working is noth- Prior to that, we had launched digital platforms,
ing new, in the software business it has been for instance, a web shop for all of our services.
the standard for ages. Simply because of a lack Our business is very straightforward: we burn
of resources it has been necessary to slice the peat in the furnace that heats a building or an
process into small modules and to try things out entire city.
before moving on. This is has been at the core of But now the question was a more profound
software development, but it hasn’t been called a one: What does it mean when peat is turned into
method. a service? This, for example: You install sensors
in the peat silos to gather data, how often peat
So, obviously, I am more interested in what can transports are needed, then you customize and
be gained from the process than in the process streamline the order and delivery process, and
itself. develop the best digital applications to make
And to be able to achieve anything valuable it easy, seamless and cost efficient. Once you
with this, the executive level has to grasp the are thinking about your business as a custom-
thinking behind Lean Service Creation. What is er-need-based service, a variety of opportunities
being done, and to what end. open up.
At VAPO, an energy production company, the It has now been one and a half years since
digital transformation was initiated by top man- we started practising Lean Service Creation to
agement. After a few tough years with declining generate these new business opportunities. This
profits, multiple organizational changes, layoffs is a fairly short time in the company’s history. I
and public criticism of our ecological profile, am very proud of what we’ve achieved: We have
our top management began investing in future learned to listen to our clients and their needs,
growth. They put effort into recruiting scientists and to collaborate on new business ideas based
and digital talents, developing sustainable energy on them in a new, iterative way. The entire execu-
solutions, and outlining the transformation of the tive team has been involved in and committed to
business. At that point, there was no talk of the all the LSC projects and the whole programme.
method needed to support the change.
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Vapo is a Finnish heat and fuel company, the world’s leading peat industry company, and a pioneer in bioenergy
development. Jukka Helin currently works as Group Manager at Kela, social insurance institution of Finland.
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FLASH VIEW:
Kristian Luoma, Head of OP Labs
Danger
The
Tools
with
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OP Financial Group is the largest bank and insurance operator in Finland. OP Lab is their digital innovation accelerator program.
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LSC is a
Movement,
Not a
Method
John Oswald has built a career in scaling
design methods in large consultancies. He sees
Lean Service Creation as a movement that
aims to make companies “future capable”.
Conceiving of LSC as a methodology misses the
point, Oswald argues.
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is to develop
profession. We could be articulating a broader
movement that has a culture with deep roots in
humility and ethics.
humans and
You act differently when you work well together,
everything in business is different when you’ve
got each other´s back.
in order to
There is a huge risk of seeing it as a method-
ology. It is not a methodology at its core. It is a
mindset involving problem solving and collabo-
develop
ration. A more accurate label would be to call it
“lean change enablement”, since it is a mindset
society.”
that helps conduct experiments that themselves
evolve entire ways of working.
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Innovation strategy is a contradiction in terms. You mentioned that you read a lot.
Strategy is a word that has become highly com- What books would you recommend to
moditized. The traditional approach is that you future-oriented change agents?
do a lot of benchmarking, “hypnotize first and First, Reinventing Organizations by Frederic Laloux,
proof later”. You align the Board of the company an important book for all organizations. Second,
with things that are not offensive to anyone. The Cluetrain Manifesto, this is a view onto the
changing world by some of the real founding
Innovation is the opposite. It means discovering, forces of the internet: Rick Levine, Christopher
not what people need now, but what their un- Locke, Doc Searls, and David Weinberger, written
spoken needs are, then iterating on continuously at the turn of the millennium. Third, a piece of
iterating on what you learn. wonderful fiction by Dave Eggers, called the Circle
Thought Experiment. Fourth, Purity by Jonathan
Franzen, one of the great storytellers of our time.
The book shows the humanity behind all the
progress, and paints a very realistic picture of
just how damaging some of what we do on the
internet can be.
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“LSC is a mindset
involving problem solving
and collaboration. A more
accurate label would be to call
it ‘lean change enablement’,
since it is a mindset that helps
conduct experiments that
themselves evolve entire ways
of working.”
John Oswald
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Four
things to
remember
- Notes for a random LSC user
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1.
LSC brings structure and focus
to service creation, but leaves
room for creativity
THE WORLD is full of tools for service creation, but creation process and helps them to focus on the
most of them only help you with a certain phase right questions at the right time. This is typically
or task (take a business model canvas for an what people are looking for: simple tools that
example). What I like about LSC is that contains a guide the process, but don’t take too much atten-
curated set of canvases that walk you through all tion, so that the team can focus on what’s really
the steps needed for creating and/or developing relevant - the content.
services and products.
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2.
LSC is all about iterative
development and learning to
appreciate ‘good enough’
ONE OF THE cornerstones of LSC is constant on producing working software and maximis-
iteration and learning. This is why LSC itself is an ing the work not done, LSC helps teams to get to
example of iterative development. I don’t think it things done.
ever will be finished. At the same time, what I like
most about LSC is that it teaches teams to settle
for good enough to get things done.
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3.
LSC is practical and
empowers people to
take action
4.
LSC is no silver bullet
IT IS GOOD to remember that, as the name sug- For a company to really become iterative, cus-
gests, LSC is a toolset for lean service creation. tomer-centric, and transparent as a whole, a lot
Originally developed for the creation of services more has to change than the service and product
and products, it fits best for service and product development process. The organisation has to
development and also quite nicely for creating rethink its structures, practices, and processes –
and developing processes in a lean way. and how all of this is led and managed.
It’s no silver bullet that will solve all of a leader’s, This is why we at Futurice are increasingly focus-
organisation’s or even a team’s troubles and chal- ing on client projects where we not only coach
lenges. Instead, it will support the team to create teams but also their leaders to drive a more pro-
services and products in a lean way. found change in the organisation.
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The
Canvases
Lean Service Creation
the Handbook 2.0
Hanno Nevanlinna
Juha Pesonen
Risto Sarvas
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Dear Reader
Lean Service Creation (LSC) goes back to 2013 when one of nce in a while we find ourselves contemplating what’s
our clients, instead of asking us to deliver an app for them, behind the success. Perhaps LSC got one thing right from the
wanted us to teach them how to create digital services. beginning it’s not reall about the tools and the methods,
That’s when the first set of tools and canvases, combining it’s about people t’s what ou ma e out of it is not
lean principles, design thinking, and agile philosophy, were something ou ust download off the internet and plug in
put together as a package for our clients to utilize. Feels like The real power of LSC is that it has been designed with great
a century ago! respect to the people facing the challenge of creating a new
business. And we want to do it together with you. So, please
Now, in February 2018, over 15 000 printed LSC books have pretty please give us feedback, join our events, be in touch,
been distributed, and countless more downloaded. LSC and help us make LSC better.
has been taught directly to thousands of individuals, it has
become the cornerstone of digital transformation in com- [email protected] and www.leanservicecreation.com are
panies, such as Wärtsilä, Telia, BMW, Tesco, and Posti, and always there to listen. Join the Facebook group and the
it is even being taught in universities. Most importantly, LSC LinkedIn community as well. With respect and gratitude to
is utilized for what it was originally intended to do: helping all you innovators, creators, and change agents out there
teams achieving success in business critical projects! who are making LSC into something bigger.
Nowadays, LSC has a steady team behind it at Futurice. In On behalf of the whole LSC team,
addition to the original creators of the package, there’s
Eeva Raita, Salla Heinänen, Lina Yassin and Mirkka Länsisalo Risto, Hanno, and Juha
developing LSC coaching, and Nelli Myllylä curating LSC com-
munities. Not to mention our dear friends & colleagues both
inside and outside of Futurice, who have been invaluable
with their suggestions and feedback. Have a careful read at
the credits section to appreciate the communal effort!
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LSC AS A SET OF TOOLS design, research, marketing and so on. LSC makes it possible
To put it simply, LSC is a set of canvases in a loose order of for you, your team, bosses, stakeholders, sub-contractors,
preference. The goal is to provide you and your team with a customers etc. to have an equal ground. No one can hide be-
checklist, and a way to organise the answers. The canvases hind their own jargon (not the bosses, not the experts) and
are designed to be physical posters on a wall so that your everyone is given a voice to give feedback and to be creative.
team can collaborate, discuss and work together in the same
physical space. LSC AS A COMPANY CULTURE
Imagine a group of people sharing the same language for
LSC AS ACTIONS AND BEHAVIOUR tools, actions, and thin ing That’s when our whole com-
As described above, the canvases are more than passive pany culture begins to transform. Transform to what? LSC
questions and tools. LSC encourages certain actions and implies an organisation that is reactive to change, rapid in its
behaviour. The canvases gently push you to create concrete iterations, and constantly learning. And because of all this,
results: to facilitate co-creation, give and receive quality it is successful in creating new business. To achieve this, LSC
feedback, experiment, try out and prototype, fail fast, iter- supports a new type of leadership, where both top execu-
ate and learn, tackle problems step-by-step, turn abstract tives and grassroot experts are leaders because they are fol-
things into something tangible and show, listen and talk to lowed and respected. And these leaders make mistakes and
others. learn from them, they get their hands dirty when required,
they trust people and help them succeed.
LSC AS THINKING AND ATTITUDE
nce ou adopt tools and actions ou probabl find LSC AS SOCIAL CHANGE
ourself re ecting on our old wa s of thin ing That is the What is one of the major forces shaping our societies? ICT
point! implies a specific mentalit eware of functional innovations, products and services that create new business.
silos. Aim for multidisciplinary teams and give all experts an That is why the people who have the skills, tools, and
equal voice. Rock beats scissors and concrete results beat thinking to create new business have a lot of societal power.
a pre defined process e holistic, see the bigger conte t This power should be equally available to everyone – not
Embrace uncertainty. Co-design with customers. Maximise solely to a small group of educated professionals. That is why
realism to overcome self deception lwa s validate uild, we actively make LSC open, free, and available so that any-
Measure, Learn. Have an open and curious mind. Have fun one anywhere can learn, apply, and create new products and
while working. Go home, kiss your spouse, and give your services, and shape the society via Lean Service Creation. We
Mom a call (i.e., there are more important things in life than would like you to join the movement!
LSC :).
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WHO HAVE USED THE CANVAS SET AND THE CANVASES WORK BEST AS:
HOW? • A comprehensive checklist that you have looked at your
• Product development teams in traditional service from all angles.
organizations while starting to use new kind of • A simple step-by-step process to introduce into a
customer centric and e perimental wor ow multi-disciplinary team to create a shared language
• Experienced service designers use the set to remind and a common methodology.
them of business uestions and more technical issues • A visible, fast, and easy way of communicating your
• Business people use it to operationalize a customer- work to other people and encouraging them to give
centric core into their wor quality feedback.
• Engineers use the canvases to integrate design • n eas toolbo to adapt and appl to different t pes
thinking into their agile work methods and of services and different e isting wor cultures
architecture planning • A proven tool to create new innovative services fast,
• Start-ups use it to communicate their ideas and to see e cientl , and holisticall
where to go ne t • A step-by-step way to introduce and teach how new
• R&D organisations use it to form a shared language business is created in the digital era.
and an agile and customer centric wa of wor ing
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SERVICE VISION
SPRINT
115
GROWING IT HUGE
DEFINING AND
BUILDING THE
MVP
116
SERVICE VISION SPRINT Iterate until success criteria from management passed
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120
WEEKLY :)
Draw your smile and tell us how you feel. Encourage your the upcoming tasks you’ve got on your to-do list, or wander
team to share what is going on in their lives, both private off topic
and professional. We human beings are an undivided
whole egative life e periences outside of wor can affect A team member could for example draw a downward smile
our mood and work performance. And that’s ok! No-one’s and explain that their one-year-old baby was ill and kept
expecting you to be Superman. them up the whole night t’s up to ou how graphic ou
wanna be
This part might sound li e the gooe stuff , but our team
is all you’ve got! So make sure you do your absolute best to The important thing is to ta e care of one another s there
keep them motivated. something that you or another teammate could do to
support the tired colleague? Also remember to keep in mind
NAME the big picture ne or two sleepless nights here and there
might be fine, but several in a row is alarming
In most cases this is pretty obvious. But if you are working
with a new multidisciplinary team full of people you’ve never HOLIDAYS
met before, it might be good idea to snap a photo of each
teammate – If it’s OK with them! Note down your upcoming holidays on the canvas so they’re
visible! t’s so eas to forget that an essential team member
WEEK 1, 2, 3... is ing off to awaii in two wee s time anaging absences
in advance allows the project to run smoothly and also lets
Draw your smiley on a sticky note. Tell your teammates how the luc vacationist to en o his time off without interrup-
ou’re doing e concise and time e cient oncentrate on tions
your moods and the reasons behind them – don’t spell out all
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AGILE BOARD
Agile methodologies have their own ways to
hold a weekly and daily tasks organized and
visible. Usually it’s some kind of a board in the
project room’s wall.
The most important function of an agile board is to visualise IN PROGRESS
for the whole team what we’re working on, how the work In progress means that really is actively working on the task.
is proceeding and who is responsible for what. It helps the If you stop working on it, Remove it. Who is working on which
team to see the bigger picture and where they can be of tas se color coding, magnets, or whatever prop oats our
help to one another. In the wider context, the agile board boat to indicate who’s doing what? As a rule of thumb: max
links with the backlog. Product owner has the prioritized list, two items per team member. Taking on a lot of parallel work
but it is always the team that autonomously pulls some of might loo nice on the board, but is proven to be ine cient
the highest ordered items to be worked on the sprint. Context switches are poison for the teams velocity.
Keep the team focused on the right tasks and track the TESTING
progress. To be honest this canvas is way too small for real Before the stories and tasks are done, they have to be tested.
project work. It’s basically a placeholder for your teams own Always do the tests as soon as possible. If not, you end up
favourite way – Scrum board, Kanban, whatever feels best building on unvalidated work.
for the team. – Do it yourself: use white board, magnets,
masking tape, magic paper. If you have a multi-site team, it DONE
might be good idea to go digital. If you are not familiar with Whoo! You guys are progressing. Stack completed stories
agile tools, do some googling: “Scrum board”, “Kanban”, and stories here. Be honest with yourself and the team.
“agile board”! Prepare yourself mentally. Something you considered to be
ready might get re-assigned to in-progress. You never know
STORIES what might come up.
A good story is a high-level description with essential infor-
mation for the team to work on. We recommend cutting the DEFINITION OF DONE
implementation work to small stories that bring clear value You’ve successfully completed your task, implemented the
to the customer or your business. Remember the KPI’s. The new feature and it seems to be working. But is it really done?
team is not a feature factory. eople might have ver different perceptions of what e actl
constitutes as done. Have you, for example, done integra-
TODO tion, performance, stability, user acceptance and regression
Cut the stories into pieces and smaller tasks. There should testing, as well as refactoring, release notes, code reviews,
always be a step small enough to do with couple of spare and user documentation? It’s not that you need to necessar-
hours. Achieving tangible goals is motivating even if they ily do all of the above. Just be aware that done is a relative
were small. concept! The important thing is to create clear, shared rules
that are visible to all team members at all times.
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RETROSPECTIVE
128
RETRO DIAMONDS
Add it to this canvas so that you will remember it yourself Our Greatest Retro findings
better and our colleagues from different teams can learn You probably decided to do some changes in the previous
from your crown jewels. retro. Which one of those changes turned out to be the best
By having these publicly visible you will also communicate one? if you did multiple really good changes, add them all!
actively that you are constantly developing the core, your
team.
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EXPERIMENTING
If you were working on something obviously extremely ut all the stic notes on this first column Tal them over
di cult and complicated, li e the first landing on the moon, brie Then vote on which ones ou thin are most critical
would ou ust assume that our calculations are right, the
gear wor s smoothl , operating in the ero gravit goes as HOW TO EXPERIMENT
ou assumed and the astronauts are read for the mission, You can do this step with all the assumptions or just the most
cause the loo fit and smart o ou wouldn’t ust put the critical ones. However, it is better to write down all the as-
pieces together and start the countdown nstead ou would sumptions before planning the experiments. An experiment
cut the process into pieces and start step b step e peri is a simple, fast, and inexpensive way to get maximal knowl-
ments with the engines, hardware, human factor and so on edge (learning) about your assumption. A good experiment
needs some creativity: it is so easy to fall into traditional
This canvas will help ou focus on what is meaningful and methods that are often too cumbersome or heavy. For exam-
critical in getting our business up and running This is the ple, “We assume that our client organisations are willing to
antidote for idiotic corporate culture where ou should install new wi fi to their venues low and heav e peri-
follow the o cial process steps no matter what ccord ment et’s have a mar eting research agenc conduct a
ing to our orporate nnovation rocess we should build a stud about it ast and ine pensive e periment e , we
protot pe, because we are in phase although we all now the venue managers ’ll pic up m phone and call
can see from this canvas that the most critical thing is to test three of them right now to see what the thin about it
the value proposition ll in all ou should be doing what is
important, not what is in a process SUCCESS CRITERIA
The problem with assumptions is that they are your own
OUR RISKIEST ASSUMPTIONS assumptions t is e tremel important to define the success
t this stage of the process ou have made a lot of criteria before doing the experiment, because often the
guesses and assumptions ome of the assumptions might results from the experiment require some interpretation,
be educated, but for sure there are also some assumptions and… well... we humans love to interpret so that it looks like
that are hard to recogni e n how, it’s time have a loo at we were right in the very beginning.
all those places where ou had to move on rather than spend
da s figuring out the right answer KEY FINDINGS
This is where the most valuable knowledge is gathered. This
This is how it goes gather our team around this canvas is where you write down the things you learned from the
ach person lists one or two critical assumptions on a stic experiment. You will, of course, learn whether you met the
note critical assumption is such that if it is wrong, the success criteria or not. And you will learn lots of other things
whole service vision fails The assumption can be about as well: e.g., about communicating your value proposition,
technolog , business, customer, the pro ect itself, our about technological choices in building the experiment,
organisation it can be whatever is critical for building what about your customers when recruiting them to participate in
ou have planned and our concepts success at this moment the experiment, and so on.
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First of, everybody should know what the goal of your project
is ou’d be surprised how often problems in pro ects actuall
arise from bad briefs. Second, the team should understand
why it is important to achieve the goal, and third, how the
results will be measured on’t mess up a perfectl nice
project with the wrong metrics!
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FOR MANAGEMENT
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TRENDS
This enables you to form strategies, instead of mindlessly HOW DOES THE MEGATREND SHOW UP
reacting to what competitors are doing, and lead the way. IN ADVERTISEMENT, MEDIA, SOCIAL
MEDIA, ENTERTAINMENT AND PRODUCTS
This canvas is a tool to make the megatrends visible in your
business. It’s a good idea to give this as a homework for the Do the same exercise in the advertisement and entertain-
team and management so the can fill it some da s while ment world These give ou view on what’s happening ne t
doing their daily routines. in the domain. They communicate about the value shifts.
136
STRATEGIC BUSINESS
OBJECTIVES
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SUCCESS IS A PROCESS
The most typical problem is that when the MVP is out the CURRENT STATUS
management is just looking at the revenue it’s bringing Where are we now compared to the Success criteria? What
and dooming it as a failure. This canvas tries to create the are we doing and e perimenting efill this wee l
discussion on seeing the different phases and setting phase
specific metrics t should ma e visible the wor needed to ust to clarif per wee ou are filling onl one column at a
create a successful product or service. Fill it up with the most time.
relevant stakeholders.
140
SERVICE VISION
SPRINT
After this you will know what your service is all about. You
will have a validated value proposition and a tested business
case.
142
BUSINESS OBJECTIVE
& CONTEXT
Why is your company doing this? What business
objective are you solving by building this
product or service? This is where you tie your
project to the larger context of your company.
Therefore, it is essential to start off together with the WHO NEEDS TO BE INVOLVED?
manager, who came up with the business need/service/ There are probably other people to keep onboard as well.
product idea in the first place t’s reall important to Who are the internal stakeholders? People from other
consider what is the expected business impact of whatever projects? Any veterans who have earned their battle scars?
it is that ou’re designing t will help ou focus on the Third parties that are essential in providing the service to the
right goals and ma e decisions independentl ou’re not customer? Brand and marketing? Customers will be listed in
ust building an app or a service ou’re tr ing to achieve the following canvases.
something bigger
HOW WILL WE KNOW THAT WE HAVE
WHAT IS OUR BUSINESS OBJECTIVE? SUCCEEDED
hich business goal problem need opportunit of our Imagine yourself one year from now. How do you know that
compan are ou solving This should be an ob ective that you succeeded in achieving the business objective? Number
can be solved in man wa s good business ob ective does of customers rofit Twelve percent growth ame
not impl a pre defined solution medal from the king of Sweden? – Does your boss agree
with this? Next, answer the same questions for one month
WHY IS IT IMPORTANT? from now. Think about the process. – How do you know your
ou should be doing something that has a meaning and cre project is proceeding smoothly?
ates a positive impact when successful ow does it fit our
compan ’s strateg our department’s strateg n WHAT ENABLES US?
other reasons wh this particular business ob ective is more Is there some special resources that gives your team or
important than others company an advantage doing this? – Existing user pool or
infrastructure? Unique data, knowhow or resources?
BASED ON WHAT FACTS?
hat data do ou have to bac all this up acts over opin RISKS, RESTRICTIONS AND THINGS WE
ions This uestion is here for two reasons NEED TO TAKE INTO ACCOUNT
a ing sure we have the facts collected wh we should A limited budget or schedule? Your huge corporate bureau-
do this project cracy? Too many internal stakeholders? Your current business
t gives a common ground for the team and manage is doing too well to support risk-taking? Or perhaps you know
ment transparenc that your team lacks certain skills?
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IMMERSION
We know. You have lots of ideas and the team
wants to start the fun hands-on design work
from the scratch. – Stop!
Take some time and go trough these questions with the team. are working on, but there has to be a reason why you and all the
Doing your background work properly will save you weeks other people love it. What is the thing that makes it so catching?
of time later. And remember: it’s not a shame to copy and
learn from the best solutions in the market. Discover the best WHAT DATA DO WE HAVE ABOUT THE TOPIC? If you have
solutions around and build on that. been working on the branch for years or you even have exist-
ing service or user pool related to the topic you are working
OUR BEST GUESS OF THE CUSTOMER’S PROBLEM At this on, you most probably have valuable data about it. Exclusive
stage, what is your best guess of the problem that is worth data might be your unique advantage on the market. – Do not
solving for your customer. Don’t worry if you are unsure, underestimate the value of it.
just write down your educated guess. Btw, this is also your
best guess of who your customers are ;) Knowing how your WHAT DOES IT TELL US? What does the data tell you about
customers use your existing services doesn’t mean that you the users? How many are there, how much they pay, how
understand the customer’s point of view, their daily life and often they use your service, how many have left the service
their problems worth solving. and so on oo also the trends of the figures f suitable ou
can use the Growth Hacking canvas to map your conversion
HOW IS THE CUSTOMER SOLVING THE PROBLEM / funnel. What does the data tell you of your old business and/
HANDLING THE NEED NOW? Your business competitors are or competitors business an ou find an business opportu-
not often the only alternatives the customer has in solving nity that you should try to take advance of?
his/her problem. You might be competing for the customer’s
time and attention. The competition might be the customer’s WHAT NEW DATA DO WE NEED? What data would be valu-
friends and a good bottle of wine. Or even better: often a able to have before moving forward with the concept? Should
viable alternative to your solutions is for the customer to just we add better analytics to our current service before trying to
let it be and do nothing at all. That’s a real competitor. guess what to fi s the relevant information trapped to some
other division of the company? Typically there is more data
PUBLIC DEBATE AROUND THE TOPIC What do the papers available than is accessible directly to you / your team. What
write about your topic? What about social media? The confer- data do we need? Do we need to order a market research? Do
ences in your business? This is a great way to understand the some cross anal es of the data we alread have
problems, feelings and current issues surrounding your topic.
Also, your service should aim to bring something new to this WHAT ARE WE GOING TO DO TO GET IT? Share the tasks
debate: a solution everyone is craving for. and define who will be responsible a e sure ou get all the
relevant data fast enough so that you really build the next
HOTTEST RELATED START-UPS AND INSPIRING SERVICES phases of LSC on top of hard facts. If there is a 3 week que to
When was the last time you were inspired by a cool new service? the data analyst buy some bun and try to get ahead of the
n our wor n our private life ist the awesome stuff that line. Learn to do the analyses yourself. Do whatever it takes to
inspires you. It might have nothing to do with the service you get the data.
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CUSTOMER GROUPING
Start with one group, unless it is bloody obvious that there DESCRIPTION
are two clearl different ones s ou learn more about our Write down three bullet points that describe a person that
customers and their problems, ou probabl find rationale to fits our group Thin it li e this if a person wal s up to ou,
split the group what are the three most important things so that you know
whether this person is in your group or not.
h, and defining our groups b basic demographics is
simpl la ifferent groups have different problems worth PROBLEM (ASSUMED) WORTH
solving ove the problem! SOLVING
rom the customer’s perspective a customer who fits into
COMMON IN ALL CUSTOMER this group, of course) what is the problem s/he has that
GROUPS is worth solving nd if ou haven’t et tal ed to an real
ou can start with this bo or fill it last The point is that person in this group, write down your assumption.
our groups might have different problems, but neverthe-
less, there could be common things among them f the MAIN GROUP? WHY/WHY NOT?
are common enough, perhaps the can all become our The thing that is bound to happen is that you will have more
customers than one group. Unless you have rock solid reasons for work-
ing with several groups at the same time, choose one
GROUP NAME as your primary group. Then write down your rationale: why
up ou better name our group rite it on a stic note, is this the main group and why the others are not. Keep in
ou will change it man times later on nd while ou’re at mind, you can come back to this canvas anytime and make a
it, draw a picture that represents our group r wh not new decision. (Unless you ordered the “LSC Canvases Stone
print a descriptive photo ave fun with it lab pecial dition n that case our decisions might be
well... carved in stone. :P)
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INSIGHT
Get out of your office and meet some real
people! What you are looking for are insights
about your customers/end users and to find a
problem worth solving.
That’s wh our first interviews are so called problem inter THINKS AND FEELS
views ou are doing our best to see the world from their Every successful service resonates on an emotional level.
perspective and to find a problem that ou might solve for Therefore, you need to understand how people think and
them s for facts and e amples, as them to draw a picture feel about the topics related to the problem domain. What
if need be s wh , as wh again, and then as wh once were the feelings and aspects related on the need / existing
more Then as wh The should tal of the time, ou wa dealing with the problem id ou find something
ust softl guide them and as for clarifications if need be the users really liked or was there something frustrating or
o not, repeat, T tal or as about our solutions or painful? Write in down. If you forgot to ask them how they
ideas for a service The gods of ethnograph shall smite ou felt about things, call them bac ow! nd don’t forget to
if ou present a solution at the problem interview stage! m do that for the next interview.
mediatel after each interview, write down the three most
important findings ow man should ou interview tart SURPRISED US
with five ee also the end of this boo let There we have What unexpected things you learned? Something new? This
added a special cheat sheet for doing good interviews is pure gold: this is you learning about your customers!
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ow ou are welcome to this canvas, where ou finall have in detail. “What did you do next? Why? How did it go? How
the permission to create ideas for solutions that solve your it could have been better
business problem AND solve the problems worth solving for
your customers. POSITIVE ASPECTS AND EMOTIONS
These are the positive thoughts, feelings, aspects, emotions,
irst fill the inner circle based on the insight from the inter- results etc. that the customer has in getting solving those
views and then brainstorm around them to find large and needs.
small ideas. Do not hesitate to use any good ol’ brainstorm-
ing techniques here, such as How Might We… statements IDEAS THAT SOLVE THE CUSTOMER’S
or other tips’n’tricks for breaking mental logjams hindering PROBLEM
creativity. After you have selected the needs, problems and emotions
you are going to solve, you can start to brainstorm solutions.
USER NEED/PROBLEM deate small or large ideas that fill the user need or solves
From the interviews select the customers needs and prob- their problem The idea doesn’t need to be
lems that you want to solve to reach your original business a full idea, it can ust solve one angle of it ou might even
objective. call them just features.
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We call this phase The Death Star. It might be somewhat the- When you are done. Use time to discuss and justify each
atrical but it reminds you that you have to make decisions. one’s opinions n general ou might consider the outer circle
Are you really ready to proceed? Should you iterate, or even as the positive side and inner end as the negative ut it’s
kill the concept and take several really up to you. There are not strict rules or thresholds on
steps backward. In the words of Obi-Wan Kenobi: “That’s no what is good enough. If you want, you can set the thresholds
moon...” in advance when you have set the goals for the project.
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CUSTOMER ENGAGEMENT
A product is much more than just interaction
between the user and the interface. Consider
yourself lucky if your customers like your
value proposition so much that they go
through the effort of getting your UI in front
of their faces.
A good service is a continuous cycle of getting new leads and something valuable worth trying. Is it a brochure, a landing
turning them into happy customers. A successful service is page with valuable information, a free trial, a discount cou-
one that succeeds in helping customers take the next step pon, or a personal visit from you?
in the cycle by becoming advocates for your service. To keep .
that c cle turning and not churning, ou need to define PURCHASE
activities, resources and partners. The customer should by now have a good idea of the value
you are proposing for them. How do you make them buy
AWARENESS your service? What are they thinking at this stage and what
Where are your customers? Where do they go to when are their alternatives? How can you help them make a
the problem worth solving rises? Do they call their niece purchase decision? Remember, sometimes there is no money
or nephew? Do they search for an answer from Google? moving at this stage (e.g., your service is free of charge, or
Do they pick up a manual? Maybe ask Facebook friends? free to download). This is really about the decision to acquire
– Whatever the answer, you should be there where your the service and the decision to start using it.
customers are, and when they are in the right mindset. That
is when they should become aware of your service. Write USE
down 2–3 most important places/ways and how you catch Yay! They did the purchase and you are on the right track.
their attention. owever, it doesn’t end here ow ou need to deliver the
promises you have made in the value prop. To put it simply,
ENGAGEMENT you need to get them to use your service! Write here what
Now they’ve heard about your service. Great. But you happens the ver first time the use it irst impressions are
need to get them to engage more with the service, to do important. »
something that makes them think that your service might be
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CUSTOMER ENGAGEMENT
USE MORE another These are our answers to the problems identified in
They say that a huge majority of mobile apps are used only the hat prevents trac
once. So how do you get them back to your service again
and again? Plan a way to make the service an integral part of KEY ACTIVITIES?
their work/life/thoughts/actions! At this stage you have a good idea of how your customer
journey (ideally) goes from one step to another. Look at the
ADVOCATE journey and now identify the most important activities you
How to change the customer to your sales person? If the need to do to keep that circle rolling. Actively monitoring
customer really loves your service, she is probably willing to search keywords in Google? Service desk at the brick-and-
share and recommend it to other people. Save your market- mortar o ce elivering the product to the customer’s
ing costs and find a strateg to reall ma e it viral! home? Getting credit-card payments for your service? It is
usually good to separate the activities to keep the service
WHAT PREVENTS? wor ing, and the activities to build the service in the first
You can look at the customer journey as a circle with two place.
trac s The first trac is listing the obstacles that currentl
ma e it di cult for our customer to move from one phase KEY RESOURCES?
to another. They can be thoughts, feelings, prejudice as What are the most important resources you need to have
well as physical obstacles, missing touchpoints or lack of (or already have) to keep the circle rolling? Your existing
functionality. customer base in your CRM system? Data on actual use? A
trusted brand? A working distribution channel? A working
WHAT ENABLES? billing/invoicing relationship with the customers?
This is the second track of the circle. List here how you will
make it easy for the customer to go from one step (phase) to KEY PARTNERS?
another These are our answers to the problems identified in ouldn’t it be nice if ou could do ever thing ell, often
the hat prevents trac ou can’t and more often ou shouldn’t a be there is an
existing business that does not compete with you but has
WHAT PREVENTS? a working delivery channel or a fantastic customer rela-
You can look at the customer journey as a tionship, or just the perfect brand. Or maybe they are your
circle with two trac s The first trac is listing the obstacles suppliers that provide you with the gadgets or raw materials.
that currentl ma e it di cult for our customer to move Whatever the case, list here the partners plus the key activi-
from one phase to another. They can be thoughts, feelings, ties and resources they bring to your customer journey circle.
prejudice as well as physical obstacles, missing touchpoints
or lack of functionality.
WHAT ENABLES?
This is the second track of the circle. List here how you will
make it easy for the customer to go from one step (phase) to
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This is the canvas for seeing if this makes any sense from vices and your revenue is indirect? And what is the model of
the perspective of costs and revenue. Sometimes people getting that revenue: monthly subscription, one-time fee,
like to jump into these questions earlier than this. Howev- pay-per-use…?
er, we believe that there lies a danger of calculating the
business without having a good enough understanding of HOW ARE CUSTOMERS PAYING TODAY?
your customers and the actual thing you should build for HOW MUCH?
them. Like all the questions in these canvases, some answers If you have found a problem worth solving, then people are
might require lot of work. Therefore, you have to use your already dealing with it somehow – if not, the problem you
judgment in balancing between “best guess” and “accurate have found is probably not big enough to be a true business
data”. Start with your best guesses and then dig deeper only case. Anyway, often they already pay something to someone
on the most critical ones. at some stage of their current solution. And remember: Time
Who pays whom? How much? is money!
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To do this, you should have a good idea of the existing solu- COST STRUCTURE?
tions that people have and the price perceptions they have Best things in life are free, but running a service is not one of
about related services et i mo potif mo them. What are most important costs? – Salaries, adver-
martphone apps ocial networ ing tools trategic tising, fuel for trucks, service and upkeep of your backend,
digitali ation consulting da royalties for IPR owners...? It is usually good to separate
development costs and the running costs to see how much
TOTAL ADDRESSABLE MARKET? it takes to make it happen and how much it takes to keep it
So how much are there people who fall into your segment? running. Again, start with your guesstimates and then dig
Three, 3 000 or 3 million? Total addressable market is abso- deeper when needed.
lutely everyone who could buy this. What is your market?
Local, national, global? KEY ELEMENTS OF EBIT?
EBIT is earnings before interests and taxes. In other words,
POTENTIAL TARGET MARKET? our profit, which is revenue minus costs imple, isn’t it
The fact of the matter is, not everyone will buy your service owever, there are sometimes e elements that in uence
or product The might get the competitor’s product, the the EBIT more than others. Is there some cost that changes
might not have the money at the moment, or whatever. This depending on, for example, the weather? Is there a revenue
is your educated guess of how many customers you actually stream that has better margins than others? Is there some
could get, if all goes well. Yes, it is tricky to estimate, but just element that ou should optimi e more than others
do it.
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VALIDATION
So we have a concept and in the old world
we would now start to apply for financing for
the implementation. But in the LSC model we
need to go and test if our assumptions are
correct, and does the concept rock or not.
Guess which approach saves more money? Keep in mind: HOW TO VALIDATE YOUR CUSTOMER
don’t aim to prove you have a great concept, aim to proof it GROUP’S WILLINGNESS TO PAY
sucks. Be honest to yourself and put your baby to the test. s the customer’s problem such that the she is willing to pa
for it ow much on’t guess, validate! nsert our plan
HOW TO VALIDATE YOUR VALUE here. Use fake selling, interviews etc.
PROPOSITION
Take your value proposition and test it. Don’t ask for mere RESULTS
opinions about it but instead measure the effects se the Insert your results from the three tests here. Be honest to
fake ads, user interviews, live landing pages, prototyping, pi- yourself!
loting or whatever it takes to validate your value proposition.
CONCLUSION
The best way to know if your solution is crap, is to get the What kind of conclusions do you draw from the results?
customers give you something of value. Will they pay real
money to get it? Really hand you over 10€, not just say that VOTING
they would? Or perhaps they agree to a pilot study? Or they As a team, vote on your opinion about the conclusions. Two
give you their contact information to take part in further dimensions: have the tests been extensive enough and was
interviews? However, often at an early stage it is enough to it a success or not as a test? Did it get validated or not? If you
see whether the customer understands your solution at all :) get con icting responses ou need to discuss them
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DEFINING
AND BUILDING
THE MVP
fter the ervice ision print it’s time to start building the
service irst ou need to define what’s the ver first launcha-
ble version of the service and what kind of metrics should you
be following.
When you know what to build just do it. But do it using all
the team tools described in the first section of the handboo
Use the weekly :) to follow your team moods and to create
empathy. Use retrospectives to evolve as a team. Slice up the
work using agile methods (Scrum, Kanban,...). And then have
the weekly meetings where you make sure that you are still
validating and not doing agile in a sandbox.
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We’ve had countless of hours of debates about what exactly re uirements ou wrote down in the usiness ob ective
an MVP is and what it should be. Is anything built for an Context phase. What was the business objective, strategic
experiment an MVP or does an MVP have to be something goal, validated learning or whatever reason made this pro-
“bigger”? In a nutshell, we wanted to re-name the concept ject important? What do you have to achieve with the MLP
to spare you the interesting, but sometimes less fruitful for it to be meaningful for your company needs?
discussions that the term inspires ;)
There might be other aspects you have to take into account
Really, we want to emphasize that the MLP should focus in the MLP: regulation, your company brand, data protec-
on building the minimum that your customers will fall in tion, etc. If you decide to take a risk and cut corners, you
love with. That being said, it’s pointless to build a MLP that should do it intentionally, not out of ignorance.
doesn’t bring enough value for your own strategic/business
goals. MINIMUM IMPLEMENTATION?
ou have now defined the minimum value to our customer
USER NEEDS? and your business the MLP has to deliver. Taking both into
The MLP doesn’t help you validate your value proposition or account, what is the absolutely minimum you must do to
product mar et fit if it doesn’t provide real value to the end make it happen?
user. So it has to be lovable. Make a prioritized list of the as-
pects and values you must, at the very least, deliver to your Minimum really means minimum: if a feature or investment
customer. Don’t make a long list of features. There is only can be left for later, leave it.
one way to really prioritize: it has to be a numbered list.
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MVP BACKLOG
In a nutshell, we wanted to re-name the concept to spare model of your service (we have no idea what people would
you the interesting, but sometimes less fruitful discussions actually pay for this). Or perhaps the business question is
that the term inspires ;) about your competitors.
This canvas is the tool to move from planning to executing. END USER VERIFICATION?
You have your assumptions in the Experimenting canvas and Do you have the segment right? Are these really the people
you have the features for the MLP (i.e., MVP). So let’s list that ou will target first ave ou validated our value
them into an actionable backlog (i.e., a fancy todo list). This proposition enough re ou tal ing the customer’s lan-
canvas is the antidote for endless planning and analysis: you guage?
simply list the things to be done to get the MVP out there.
ote! This is not a technical bac log for building stuff ere THE BACKLOG
you list all required actions, and they might include asking The most important thing about a backlog is not how it is
for more budget, contacting potential partners etc. structured. The important thing is that it is actually followed
and things get done ere is our first bac log to get ou
TECHNICAL ISSUE? started. List here the tasks (or user stories) to be implement-
Look at the Experimenting board, and transfer from that ed in your MVP. Then in the To Do part list the name of the
board the most burning technical issue (assumption) at the person who is going to do the task. When the person starts
moment. What technical assumption is both most important doing it, move it to the In Progress column, and when it is
and most probably be the trickiest to implement or is the done, move it to the last one. This helps the team to see who
biggest question mark? is doing what, and it helps the individual to see what needs
to be done. It is good practice to have a limit on how many
BUSINESS QUESTION? tas s one person can have in progress at the same time
Again, look at the Experimenting board, and transfer from Otherwise you lose focus and nothing gets done. In the long
that board the most burning business question (assumption) run, your backlog probably grows and you need to build a
at the moment. It might be about your company’s business new one that is bigger and takes up a whole wall. However,
(we do not have funding), or it might be about the business start with this and you have a running start.
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WHAT TO MEASURE?
VALUE PROPOSITION METRICS and how will you know that you have succeeded? Should
e write here the problem worth solving ou have identified ou measure revenue, profit or costs s our business goal to
for your customers. Your value proposition should address acquire new customers? Or perhaps your business goal is to
this problem. In other words, what should you measure to raise the profit margin of the core service of our compan
help you make sure your value proposition is understood
and speaks to your customers? Or even better, that they
accept or buy your value proposition? Sometimes it might be
measuring the recommendations (e.g., net promoter score),
a survey every week, or regularly interviewing a handful of
customers.
SERVICE METRICS
Start by writing here most important part of your service.
Have a look at the Customer Engagement canvas. Have a
look at the Most Lovable Product canvas. What is the most
important element at this stage, and how do you measure
it? Awareness and clicks on your web ads? The amount of
downloads? Purchase decisions? The recommendation tool
you built?
BUSINESS METRICS
o bac to the ver first canvas, the usiness oals and imi-
tations canvas. What is the business problem you are solving
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GROWTH HACKING
hen ou go live with our service, ou finall get actual, goal for the phase, mark that as well.
hard data eal users, real actions and real business ow
the main thing is to continue iterating the service to ma e it B. THE WHY
roc , and then grow it huge! h isn’t the conversion ow better h are we losing us-
ers? The analytics might only reveal that there is a problem,
The same wor ow applies to this phase as well uild, but not the reason behind it f ou don’t now the reason
easure, earn onstantl conduct e periments and you need to do some research. User tests and user interviews
validate our assumptions a e changes to the service and are typically a good way to start.
measure the effects nd if the changes ou did don’t have
the desired effects, a good idea t picall is to roll bac to the C. MOST CRITICAL BLOCKER RIGHT NOW
previous version The same rule applies not onl to digital here to focus ne t t pical setup is that as ou don’t get
services but also to ever thing from ph sical products to enough users through the funnel you (or the management)
process enhancements want to increase marketing. But if you have a problem say
in registration process, e tra mar eting won’t ust be about
ove our data, now it, breath it and above all be interested spending money but creating huge amount of disappointed
in the wh behind it The fre uenc with which ou should customers.
use this canvas depends on our release c cle
o carefull select the most critical issue to focus on first,
A: VISUALIZE YOUR ANALYTICS figure out a solution, ma e an e periment out of it and
tart b mapping our anal tics ood idea is to draw it so measure the effect
that ou can ma e the progress visible This helps to create
trust towards the rest of the organi ation raw the per-
centage of people moving from one phase to another rite
down also the actual amount of users usage f ou have a
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Credits
The canvases have been put together, iterated, modified,
and/or actively used by Hanno Nevanlinna, Juha Pesonen,
Risto Sarvas, Eeva Raita, Nelli Myllylä, Mirkka Länsisalo,
Mari Piirainen, Yrjö-Kari Koskinen, Anna Kolehmainen, Suvi
Numminen, Tuomo Laine, Oleg Grenrus, Oskar Ehnström,
Heli Ihamäki, Antti Partanen, Sebi Tauciuc, Salla Heinänen,
Janetta Ekholm, Kalle Tuomi, Jussi Hacklin, Anastasiia Kozina,
Virpi Vaittinen, Jaana Olsson, Magno de Santana Silva, Ville
Tervo, Minna Mustakallio, Altti Rautalahti, Ilkka Auer, Anniina
Lehtinen, Pikka-Maaria Laine, Liisa Korpela, Luiz Soyer, Barry
O’Reilly, OP Saksa, and tens of other experts who have con-
tributed in making LSC better. You know who you are <3
We want to make this the best and most usable toolset out
there, and share it to everyone for free.
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Appendix 1
LSC Interviewing Cheat Sheet. hat did ou thin when ow did ou then
• Use a lot the words why, how, and what.
• Let them speak! Roughly 20% of you talking and 80%
W R the interviewed.
A good interview is a discussion, not an interrogation. Build
trust by having a relaxed and friendly atmosphere.
LOOK OUT, IT’S A TRAP!
• Introduce yourself and other interviewers, and their eople are friendl and ou’re a nice person Therefore, the
role in the interview. want to please you with their answers, and tell you what
• Tell the reason and theme of the interview on a broad the thin ou want to hear umans, can’t live with them,
level. can’t live without them evertheless, here are a few tric s
• Tell what will happen to the answers: who will see on’t show our cards on’t tell them what ou assume
them, how will you use them etc. or what you think is a good solution for their problems (the
• Remind that all answers and comments are important, solution interview is for that
especially criticism. • Avoid questions that reveal what wouldbe the answer
• Remind that you are there to learn from the inter- you are looking for.
viewed person, that s/he is the expert here. Remind • on’t generali e, be specific
also that there are no right or wrong answers. • Leave a few seconds of silence between their answer
• Start with questions that are easy to answer so that you and your next question. They might continue with
get the conversation owing interesting stuff to fill the silence
• For example, age, job title, job, where do they live, in • ct stupid s them wh
what kind of a house
FINALLY
R OF Remember to thank them for their time and valuable com-
The goal of the interview is to see the world from his/her ments.
perspective, and to understand what problems, needs, de- • Use the opportunity: ask them a permission to inter-
sires, wants etc. there might be. Be prepared to dig deeper view again and if they know anyone that you could
than the first obvious answer Tr to figure out their motives interview.
and rationale for thinking, doing or feeling in a certain way. • Immediately after the interview: write down three
What are their underlying goals & motives? things that you found interesting or popped into your
• Ask for concrete examples: “Tell me about the last time mind during the interview!
you...”
• Avoid questions that can be answered simply yes or
no. Ask open-ended questions, such as “Why do you...
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HANNO NEVANLINNA
anno is one of uturice’s founders and has been an integral
part of steering the agency from a startup to an internation-
al company that creates award-winning services and has
o ces in ma or cities in four different uropean countries
t uturice he has founded the compan ’s design team and
worked as head of HR as well as Director of Culture.
JUHA PESONEN
A humanist by heart and inclination, Juha has worked
on hundreds of innovative and demanding B2C and B2B
projects, putting his concept and UX design know-how to
use in helping major European companies thrive in a rapidly
changing business environment and weather the disruptive
storms of mobile technology and digitalisation.
RISTO SARVAS
Risto lives a double life. Most of his waking hours he helps
large corporations engineer their work culture in this
blissful age of digitalisation. He is an adjunct professor at
Aalto University where he constantly learns from his clever
students. Risto has lead a research group and a design team,
he has won teaching and design awards, and he has created
international art exhibitions as well as radical business
innovations.
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