Mark Davis of DFJ Gotham Ventures posted this nice summary list of six types of risk that venture capitalists typically examine when evaluating a potential investment.
- Management Risk
- Product Risk
- Revenue Model Risk
- Market Risk
- Competitive Risk
- Partnership Risk
Read the full article here
Michael had a great framework for explaining how each person’s daily activities fit into the larger company objectives. He called it “VMGOSPA”, an acronym for the following framework:
I had the pleasure of hearing Avinash Kaushik, Google’s analytics evangelist, speak when he came to our CS377W class at Stanford this quarter (the “Stanford Facebook class“). He’s an amazing speaker, really breathing life and purpose into the too-often dry topic of web analytics.
He’s promoting a new way of looking at web analytics, what he calls “Web Analytics 2.0”. Avinash’es central message is that analytics cannot stand alone as a decision driver in organizations; rather analytics need to be considered in the context of additional data (from customers, competitors, and other internal sources) in order to drive rational decisions.
Avinash has a brilliant decision framework, consisting of the five decision inputs that should be considered in order to gain insight into customer behavior and drive optimal decisions. He calls this “The Five Pillars” and here’s the cliff’s notes summary:
Setting objectives for yourself and for others is a critical organizational function. This will be painfully clear to anyone who’s ever sat in a team meeting where some “critical corporate goal” was described but no specific actions were assigned and everyone left the meeting wondering, “Ummm, so what am I supposed to do now?”
The SMART framework helps make objectives crystal clear so that anyone who is on the assigning or the receiving end of a SMART objective really understands exactly what actions are going to take place, by when, and how to measure success.
SMART is an acronym for:
- Specific: is the objective described in concrete, actionable detail?
- Measurable: what quantitative measurements will tell us when the objective has been achieved?
- Attainable: is the objective really achievable within budget and schedule constraints?
- Results-oriented: what tangible work output does the objective produce? (i.e., not just conversations and ideas)
- Time-driven: what is the due date for the objective?
It can be a lot of stuff to consider and anyone responsible for launch of a product (e.g., product manager, product marketing manager, or a business unit lead) needs to think about “product design” from multiple levels.
Personally, as a product manager, I like to think about “product design” as the sum of five design perspectives:
“The Five Forces” are Michael E. Porter’s framework for assessing the level of competitive intensity industry participants should expect to see. Highly competitive industries are likely to produce lower average profitability for participants in that market. Useful for rationalizing market entry or market exit decisions. E.g., competitors should seek out markets where the Five Forces are less severe, and exit markets with strong pressure from one or more of the Five Forces.