The Startup Owner's Manual

CHAPTER 6Customer Discovery, Phase Three: “Get Out of the Building” and Test the Product Solution

STEVE’S PHONE RANG AND THE VOICE ON THE end said, “You don’t know me but I just read your book and think I need your help.” That was the day we got to know one of the most innovative startups within a “Fortune 500” corporation (#6): General Electric’s Energy Storage division.

Prescott Logan, the unit’s brand-new general manager, recognized that his unit’s new sodium industrial battery was a disruptive innovation, which GE traditionally does well, but aimed at a market where the end users were unknowns. Logan realized his division looked more like a multimillion-dollar startup with all the usual startup uncertainty, but located within a huge, execution-oriented company. He needed a framework or architecture to help his team deal with a “white space” market and apply startup “search” and customer discovery principles at a company known for “six sigma” execution.

Energy Storage was buying capital equipment, breaking ground on a massive factory, and out making sales calls—in full “execute” mode, the way most big companies work—based on a ton of diligence and an external consultant’s 30,000-foot view of the opportunity, but not likely having had enough face-to-face end user conversations.

Soon after the call, the customer-facing team came to the ranch to map a customer discovery plan. ...