practice agile, iterative change to refine products and build company culture

The Importance of Core Principles in Business Success

A company's ultimate achievement is propelled by its guiding principles as much as by the products it offers. While a new business might possess a compelling brand narrative and effective public relations, internal coherence is crucial.

Without a shared understanding of core values among staff and leadership, challenges are inevitable.

Fostering Innovation at Heap

At Heap, the analytics company I oversee, a key tenet is the avoidance of stifling innovation through strict, hierarchical control.

Despite holding the position of CEO, I acknowledge that my perspective isn't always the most insightful simply due to my position.

A Product-Centric Approach to Leadership

Optimal outcomes are achieved when leadership is approached with the same methodology used in developing a superior product.

This involves formulating hypotheses, conducting rigorous testing, and iteratively refining strategies.

Once a successful approach is identified, it should be nurtured and expanded.

Innovation flourishes when ideas are allowed to emerge from all levels of the organization, not just dictated from above.

Agile, Iterative Change Compared to Authoritative Directives

Throughout my managerial experience, I have successfully implemented this approach. The scientific method, characterized by its cyclical process of observation, documentation, hypothesis formation, experimentation, analysis, and subsequent reporting, provides a robust framework for both product and process evolution.

Although my methodology isn't as meticulously structured as the scientific method – favoring rapid sprints over science’s deliberate pace – it shares fundamental principles. Before detailing this system, it’s crucial to acknowledge a caveat: While offering a streamlined method for testing new ideas and assessing designs, its effectiveness hinges on a sincere dedication to cooperation and collaboration. Within organizations rigidly defined by hierarchy, it risks fostering groupthink and superficial agreement.

However, iteration should not be used as a pretext for procrastination. Projects may undergo multiple iterations, but these should occur in rapid succession.

Many individuals have encountered situations where directives are issued from leadership with limited regard for the practical realities faced by those directly involved. These often involve unrealistic expectations, such as demanding a 20% revenue increase from a sales team in a mature market, or requiring a 10% cost reduction from an already efficient department. Such actions negatively impact employee morale, breeding resentment and encouraging shortcuts.

Heap proactively avoids these types of detrimental top-down decisions by embracing a collaborative and iterative strategy for implementing change.

The Pitfalls of Top-Down Management

Such decrees are detrimental to morale and often lead to undesirable consequences. They can inspire resentment among employees and encourage the circumvention of established procedures.

Iterative change, conversely, fosters a sense of ownership and shared responsibility. It allows for adjustments based on real-world feedback, leading to more effective and sustainable solutions.

The Value of Iterative Development and Feedback

Our organization consistently leverages the collective expertise of its team members to initially conceptualize and build prototypes. These prototypes can take various forms, including a minimum viable product intended for public release, refined communication strategies for upcoming launches, or a comprehensive guide to internal operational procedures.

However, we recognize that internal evaluation alone is insufficient for achieving true project excellence. Any project, whether it involves product development, messaging adjustments, or pricing structure definition, undergoes rigorous real-world testing. We present our work to potential customers, interested parties, and industry experts to uncover previously unforeseen requirements.

The feedback received from these external sources often necessitates revisions, and this is not viewed as a setback. Instead, it’s considered an integral part of the refinement process that ultimately yields a superior outcome. While a rapid market entry might seem appealing, experience has shown us that it’s often counterproductive.

A hastily launched product can lead to user dissatisfaction, diminished organic promotion, and opportunities for competitors to gain an advantage.

This principle extends beyond external product launches; we apply a similar methodology to internal organizational changes.

Earlier this year, when Heap re-evaluated its foundational principles in response to growth and the challenges presented by remote work, we embraced an iterative and collaborative process. A dedicated team developed a draft of the values document, which received initial approval from leadership.

To guarantee the document’s effectiveness, it was then distributed company-wide for feedback and review. The response was substantial; after carefully analyzing numerous questions and integrating a wealth of suggestions, we were confident in having created a document capable of supporting future expansion.

Ultimately, a company is defined by its people. If its stated principles do not align with the values of its workforce, can those principles genuinely embody the organization’s identity?

Practical Application in Business

For business leaders, regardless of organizational size – from small meetings to global corporations – few strategies prove as effective as iterative testing before full-scale implementation. This approach doesn't even require confinement within the company's internal structure.

At Heap, a common practice is utilizing a “waves” methodology for field testing. When a potential solution is identified, even with some internal disagreement regarding specifics, a team of executives is dispatched to engage directly with current or potential Heap customers over an intensive four-day period.

During the “first wave” presentation, our offerings are showcased alongside proposed applications. Immediately following, the presentation is paused, and the floor is opened to the audience for direct feedback.

Customers articulate their preferences, dislikes, areas of confusion, and suggestions for improvement. This involves conducting two three-hour sessions daily for three consecutive days.

A final debriefing is held on Friday, allowing the executive team to directly absorb both positive and negative insights from the customer experience.

Being direct observers ensures we remain connected to genuine client sentiment, avoiding the potential biases inherent in reports from the sales team or the limitations of multiple-choice surveys.

Through several such waves of testing, alignment is achieved, understanding is deepened, and the team is prepared for forward progress.

The Power of Incremental Improvement

At Heap, growth is fundamentally driven by iterative processes and data analysis. This means our analytics software doesn't necessitate a complete overhaul of a client’s existing business model.

Instead, we focus on identifying and implementing minor, yet impactful adjustments that collectively yield significant improvements.

While occasional breakthrough discoveries do happen, they often arise unexpectedly during routine investigations.

Analyzing the feedback submitted by Heap employees regarding our initial values document illustrates this point perfectly.

A single, defining contribution was difficult to pinpoint, but the combined responses resulted in a far more robust and representative articulation of our company’s core principles.

The Value of Real-World Data

Even the most detailed internal customer personas cannot replicate the nuanced insights gained from observing actual user behavior.

Whether it's optimizing a product or shaping a company culture, a systematic and evidence-based methodology is crucial.

Immediate transformations aren't always achievable, but consistent application of these principles will undoubtedly lead to positive outcomes.

Data-driven decisions are essential for sustained success.

• Focus on small, measurable changes.
• Embrace iterative development.
• Prioritize real-world user feedback.

A methodical approach, grounded in data, is the key to unlocking lasting growth and a strong organizational identity.