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Separating Value from Waste

Being an electrical engineer by training, I like the analogy of signal vs. noise. If we think of this in relation to product development, we get a powerful analogy. Signal is what adds value, noise is everything else. Today we are in a hyper stressed world. We are expected to get more done in less time and we are constantly bombarded with noise. We have conversations, meetings, emails, phone calls, voice mails, texts, chats, IMs, screen shares, video chats, Facebook walls, all vying for our attention. Everything seems to move fast, even frantic.

The amount of noise has increased dramatically over the last decades. Yet has the signal changed? The signal is still the same. The formula for value is fairly simple, not easy, but simple: deliver significant value to your customers. It feels like this is harder to do today than ever before. I would argue that a big portion of why this is harder to do is the ratio between signal and noise has increased significantly. Today, we are all scattered in a million directions and so finding the signal, the value, among the noise is very hard. We lose the signal and we end up wasting a lot of time on noise. This makes us feel busy, but it doesn’t add value.

We need methods and tools to deliver signal, the value, and ignore noise. In electrical engineering there are two approaches to focusing on the signal.

  • Filter out the noise – In engineering, we build circuits and algorithms to separate out and eliminate the noise. As the ratio of noise to signal increases, this becomes harder and harder to do. The same is true for product development. We build features that are never used, add functionality that isn’t necessary or spend time resolving issues that our core customers don’t have and don’t care about.

    Good process filters out noise. It focuses you on the steps at hand and creates standards for communication and interaction between people. For software development, Agile becomes a great way to filter out the noise brought upon by a lack of clarity, focusing on a steady diet of done, using resources effectively and creating a smooth journey for everyone.
  • Amplify the signal – The other approach is to amplify the signal so that it is stronger and therefore clear. In engineering, we use circuits to amplify signals. In product development, we need tools that amplify the activities that deliver value.

    Vision, a clear roadmap and a release plan are great amplifiers when grounded in what they deliver for a core customer. Having a clear vision aligns people and focuses them on delivering value. The roadmap and release plan then takes that vision and provides the steps for how we are moving towards the vision. They highlight the next steps on the path, aligning people on the next actions that will move the product towards the vision. Process, as well as filtering, can also amplify the signal. Like a well-designed circuit, a good process focuses on the value delivered and keeps everyone focused on the vision.

Thinking about your product development in terms of filtering out noise and amplifying signal can help focus your product on the value it is delivering. This will make your product more successful, while making your team less stressed and anxious.

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