Sunday, February 2, 2014

Discovery-Driven Planning






Last week’s discussion was about social venture ideation and different methods in assessing the feasibility of an idea. One of the articles from the required readings, “Making Social Ventures Work”, mentioned the Discovery-Driven Planning tool which I wanted to look into further. The tool provides a good framework to develop a plan for new venture ideas.

There are five disciplines to the tool: 1) framing 2) benchmarking 3) strategic translations of operations 4) assumption testing and 5) managing to milestones.

The Discovery-Driven Planning tool is about creating a plan that is not built on hard evidence as the venture is knew and unknown. Benchmark parameters should be established so that the team knows what the market should be like in order for the venture to be successful. The key to this tool is that once new evidence is found, it has to be incorporated in the plan. From there tasks and milestones can be adjusted, as needed. Keeping a list of the most critical assumptions is also important because the assumptions will have to be tested. After the assumptions are tested, they should be supported by solid data and be incorporated into the evolving plan. Once a firmer base has been established, major investments can take place.

As an individual, new to the social entrepreneur world, learning about this tool is very valuable. From what I have learned, understanding the market of interests can make or break your venture. You could have the greatest product or service in the country but if the market is not right, it will not succeed. What the Discovery-Driven Planning tool addresses is that it is ok for activities to deviate from the original plan. Markets are always changing. Therefore you should do everything you can to mitigate risk in order to make your venture successful.

My question is at what point in a venture is it too far to turn back? What other successful tools are used to analyze the market?

Source: http://ritamcgrath.com/ee/images/uploads/Discovery_Driven_Planning.pdf

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