The Power of Optimizing What You Have
#81 - The Hidden Cost of Shiny Object Syndrome in Business Innovation
Hello friends! I hope you’re having a great weekend!
Today I want to talk about something that might be a little technical and mainly relatable for people working in the technology sector, but hopefully many of you will recognise this framework is applicable across a lot of business dimensions. I read a very interesting newsletter on this concept of driving growth to your product not by “Building new things” but rather by optimising what you already have.
It’s basically the concept of avoiding pouring water in a leaky bucket, and to rather fixing the bucket first. While this sounds very intuitive, there are a lot of forces in business that push to the other side: “we need to build xxx to grow!”.
The Shiny Objects Syndrome
I call this tendency of focusing on new things rather than optimising the existing ones “The Shiny Object Syndrome” (SOS). On the positive side, SOS can stimulate innovation, keeping companies on the cutting edge of technology and market trends. This relentless pursuit of novelty encourages continual learning and adaptation, which is vital in industries that are rapidly evolving. Moreover, it can lead to diversification, potentially opening up new revenue streams and reducing dependence on existing markets.
However, the most significant drawback is the lack of follow-through. As new projects are constantly picked up, older ones are frequently abandoned before they can realize their full potential. This not only leads to wasted resources—both time and money—but also can cause organizational strain. Teams may become demoralized by the constant shift in direction, which can lead to confusion and a lack of cohesive strategic focus. Additionally, this syndrome can dilute a brand's identity if a company continually chases trends rather than building a solid foundation on core products and values.
Why Businesses Chase New Technologies Over Enhancing Existing Ones
When thinking about the nature of this issue of being attracted by “shiny new things” I tried to form an opinion of what could be the driving forces behind this tendency.
One one hand I feel this is a human nature of continuously looking at opportunities of improvement rather than optimization, this might also be due to the fact that “new” things are usually sexier and funnier. It’s easier to build a new building rather than fixing an existing one. I also noted down some more “corporate dynamics” types of incentives:
Organizational Structure and Metrics: The way many companies are structured—with different teams responsible for different products or features—can contribute to a focus on new developments. Success metrics in such environments often reward the creation and launch of new products rather than the enhancement of existing ones. Bonuses and promotions often hinge on delivering new projects and innovations, creating a bias towards creating new features rather than optimizing existing ones.
Risk Aversion: In many corporate settings, there's a prevailing belief that it’s safer to invest in new, distinct projects rather than to rework or enhance existing offerings. This perception stems from a risk-averse culture where new projects are seen as opportunities for clear gains without altering systems that customers already depend on. As a result, companies may opt for projects with straightforward, measurable outcomes rather than undertaking the complex task of refining existing operations, which may carry uncertain risks.
Technological Seduction: The rapid pace of technological advancement creates a constant stream of new tools and capabilities that businesses can adopt. This "technological seduction" can lead companies to prioritize the integration of new technologies over the optimization of current systems. The allure of having the latest tech can overshadow the need to address more mundane but critical improvements that would provide more substantial benefits in the long run. We’re all seeing this happen in real time right now with the GenAI wave, everyone is building GenAI tools…often pitching it as the magic wand that solves all problems!
Market Pressure: Competitors’ actions often drive companies to embark on new initiatives in order to keep up or stay ahead in the market. This pressure can lead to a cycle where companies continuously roll out new products or features to match or outpace their competitors, sometimes at the expense of nurturing and refining their existing offerings.
Rethinking Growth with the ARIA Framework
In the environment I just described, where increasing feature addition has a lot more incentives vs the optimisation of the current feature set, I found very interesting the framework described in the newsletter that the author branded “ARIA - Analyze, Reduce, Introduce, Assist”.
Principle #1: Analyze
The Analyze stage of the ARIA framework serves as the foundation for identifying and prioritizing the features that can drive significant growth within a product. This principle involves a deep dive into the existing data to discern which features are not only popular among users but are also crucial levers for the product's success in terms of user retention, acquisition, and revenue generation.
Identify Key Features Correlated with Growth: The first step is to pinpoint the features that have a strong correlation with important growth metrics. This requires a comprehensive analysis of user interaction data to determine which features are most frequently used by the highest-value customers or those who convert on desired goals. This analysis helps in focusing efforts on enhancing features that already show potential to contribute significantly to the company's objectives.
Calculate Usage Metrics for Key Features: Once the key features are identified, the next step is to measure their current usage rates and understand how deeply they are ingrained in the user experience.
Focus on Features with Low Usage Metrics: After assessing the engagement levels, the focus shifts to features that are critical but underutilized. These features often represent untapped potential within the product. Enhancing these features could lead to increased user satisfaction and retention. The analysis might reveal that users are unaware of certain functionalities or find them too complex to use, which are opportunities for targeted improvements.
Principle #2: Reduce (aka “less is more”)
The Reduce principle in the ARIA framework aims to lower the barriers to feature engagement by simplifying the user's interaction with the product.
Reduce Steps in the Process: A critical aspect of reducing friction is to streamline the number of steps required to complete a task within the feature. This involves analyzing the user journey and identifying any unnecessary or overly complex steps that can be removed or consolidated. Simplifying the process not only makes the feature more accessible but also reduces the time and effort required from the user, leading to higher completion rates and more frequent usage.
Reduce Effort per Step: Beyond just minimizing the steps, it's crucial to make each remaining step as effortless as possible. This might involve optimizing user interface elements to be more intuitive, reducing the amount of information users need to input, and employing smarter defaults that anticipate user preferences.
Reduce Cognitive Load: Another significant aspect of reducing friction is minimizing the cognitive load on the user. This means making the feature easier to understand and use without extensive thought or analysis. Techniques can include better in-app guidance, clearer labeling, and more interactive tutorials that help users learn by doing rather than overwhelming them with information. By making the feature more approachable, users are more likely to try it, adopt it, and ultimately integrate it into their regular workflow.
An interesting concept to do this is leveraging “Negative weblabs”: setting up experiments specifically to identify and eliminate underperforming features. This method, used by several companies, involves rigorous testing to determine whether certain features should be discontinued, ensuring that only the most effective and valuable features remain active.
Principle #3: Introduce
The next step of the framework emphasizes increasing user awareness and engagement with existing features. This step focuses on strategically promoting these features to enhance their visibility and utility among the user base, which is crucial for driving adoption and deeper integration into user habits.
Increase Feature Awareness: The primary goal here is to ensure that users are fully aware of the features available to them. This involves implementing targeted communication strategies such as in-app notifications, feature highlights, and educational content at optimal moments in the user journey. The timing of these communications is key; they should be presented in a context that feels natural and immediately relevant to the user, increasing the likelihood of engagement.
Contextual Feature Introduction: Introducing features within their relevant context greatly increases the chances that users will engage with them. For example, a video editing app might highlight its advanced editing tools when a user spends a significant amount of time on basic edits.
Use of Onboarding and Tutorials: Effective onboarding processes and tutorials can play a significant role in feature adoption. These tools should be designed to seamlessly guide users through the feature’s functionality in an engaging and interactive way.
Principle #4: Assist
The final principle in the ARIA framework is about providing users with the necessary tools and support to effectively utilize features, thereby enhancing their overall experience and satisfaction with the product. This principle focuses on making it easier for users to integrate features into their regular usage patterns through additional aids and supportive elements.
Optimize User Guidance: Effective assistance often involves providing users with clear, intuitive guidance on how to use features optimally. This can include detailed help sections, FAQ pages, and responsive customer support channels. The aim is to remove any ambiguity about the feature's functionality and to resolve user queries or issues swiftly, thereby reducing frustration and potential barriers to feature use.
Enhance Learning with Interactive Tutorials: Interactive tutorials and walkthroughs can significantly improve user understanding and engagement by demonstrating the feature's value and application in real-time.
Utilize Templates and Examples: Providing users with templates or pre-filled examples can dramatically lower the entry barrier for complex features. These resources help users get started quickly and see the potential impact of fully utilizing the feature, increasing the likelihood of continued use.
Leverage Advanced Technologies: Employing technologies like AI and machine learning can further assist users by automating complex processes or suggesting actions based on past behavior. For example, a photo editing app might use AI to suggest optimal filters based on the lighting and subject of a photo, thereby simplifying the editing process and enhancing user satisfaction.
Fix the bucket!
The principles encapsulated by the ARIA framework are not limited to product development but are broadly applicable across all business practices, particularly in the digital and marketing products. The concept of optimizing existing assets before adding new ones can be likened to the familiar adage of "fixing the leaky bucket." In business, this means ensuring that your existing operations, products, and strategies are sound and effective before pursuing expansion or introducing new elements.
In the world of digital products, this strategy is vital. It’s easy to be lured by the potential of new features and innovations. However, if the existing infrastructure or feature set has significant flaws, new features are likely to exacerbate problems rather than contribute to business growth. Prioritising a solid foundation ensures that new features can be integrated smoothly and will perform as intended, enhancing the user experience and increasing overall satisfaction.
Similarly, in marketing, it's crucial to optimise existing channels and strategies before expanding into new territories or tactics. For example, if an email marketing campaign has poor engagement rates, simply increasing the frequency of emails is unlikely to solve the underlying issue. Instead, analysing and improving the content and targeting of these emails will likely yield better results. This approach ensures that efforts and resources are not wasted but are used to enhance the effectiveness of current strategies.
Have you ever found yourself captivated by the allure of new technologies, or are you naturally focused on optimising what's already working?
Have a fantastic weekend
Giovanni