“REAL NEEDS” RULE!

Relevant post. We often receive RFP's from existing and new clients that are prescriptive of what form a solution should take. When you probe deeper into how the RFP evolved, it unfolds that organisation is guessing the needs of its customers. The requested set of features in the RFP is derived from a combination of personal preferences, what someone heard a customer say and guesses of what an internal group of people think customers will need.

As outlined in the diagram, an iterative approach to establishing 'needs' that involves real customers (both internal and external to the organisation) is a better approach. However, I would suggest that the diagram is missing the additional step of applying ongoing needs assessment with customers. With the todays hyper-competition, its risky to take a launch and our job is done attitude. Customers needs change rapidly as the move up the scale from new to daily users and there are technology improvements to consider. A need that couldn't be met 6 months ago, may be easily facilitated with a new approach.

An example close to home of how ignoring customers changing needs after launch is dangerous, is how quickly the MYOB accounting software is being displaced by online accounting services. While MYOB has been diligently creating the next release of their SME accounting package, a small company in NZ, xero.com has being quietly flipping the accounting software model on its head: providing the software online as a service, keeping features to a minimum (but what people needed) and making it super easy to use. 

What is interesting is how open xero are asking for customer feedback. On a continual basis they are asking people what they need. Xero's iterative development cycle is supported with an update of their solution every two weeks. Meanwhile MYOB usually launches a version on an annual basis with the 'improvements' being the mandatory tax-table updates and bug fixes to run on new operating systems. Hardly 'need' busting enhancements.

If you go back and review what needs xero was solving on launch, its doubtful that they would have the 10,000 plus customers they now boast, if continuous needs assessment and iterative delivery wasnt baked into their operations. Perhaps as people who work in this space, our role is to educate and inform organisations that needs analysis isn't an activity that just happens at the start of an engagement. It's a continuous process of discovery and delivery. A method that provides an ongoing competitive edge.

Great post Damien B (and great comment Damien M!)

I have seen potential clients include a 200 page requirements document with an RFP. It always seems bizarre to me, partly because it's clear that they haven't talked to any customers to find out what they really need, but also partly because it presupposes an overall solution at a ridiculously early stage.

I always go back to - what's the business problem we're trying to solve here? What are the business objectives? What insights have been drawn from research into their customers and competitors to create a real strategy for solving the problem and achieving the objectives?

Going back to first principles, we really need to ask whether the big complex website is the best way to solve every problem. There are so many digital channels and opportunities today - the days when we could assume that a website is the answer to every problem ended many years ago. And as Damien M noted, many businesses now operate in a hyper-competitive environment where they need truly innovative solutions to the problems just to stay ahead.

Part of the problem here is that digital agencies have become "order takers", just like traditional advertising agencies. And believe me this model isn't working out very well for the traditional agencies. If we're really going to work with our clients to create real value and solve big, important problems for them then we need to be "order makers" who truly understand their businesses and can drive the agenda. If we just end up turning client briefs into websites and campaigns then our future is rather grim.

I call this form of "telling the specialist what to do" instead of listening, Ego Marketing and Ego Management. It is a form of being Dumb. Sure you can do what you want but what if someone else can offer you a better way? To say no to that would be cutting off your nose... ie Dumb Funny how human nature makes us capable of such greatness and stupidity in the same ball of gristle. :-)

This is a challenge for pretty much any professional services business. A client comes to you with a problem, and often they already know the solution they want to their problem and just need someone to execute it.

It takes a bit of strength and courage to go back to a client and say "We've done some more research and based on that we think we have found some alternative solutions" or even sometimes "We understand that you've identified this problem in your business that we can solve, but we think that problem is really a symptom of something else. Let's work together to address the bigger problem and here are some ideas..."

Of course we should never be arrogant and assume that a solution or idea is not right just because it came from the client - in many cases the client will be able to use their insight and experience in their industry to come up with fantastic ideas. But it's important that the agency and the client have the kind of relationship where these conversations happen fluidly and with mutual respect and understanding.