Design Thinking

Dieter Rams Principles of Good Design

Innovative
Makes a product useful
Aesthetic
Understandable
Unobtrusive
Honest
Long-lasting
Thorough down to the last detail
Environmentally friendly
Minimal

The CIRCLES Method

Comprehend the situation

o What is it?
o Who is it for?
o Why do they need it?
o When is it available?
o How dowse it work?
Identify the customer
o Personas
Research the customers needs
Cut out unnecessary/low-priority items
o Use story points to prioritize
List solutions
o Reversal Method
Reverse the situation to help uncover new
possibilities
o Attribute Method
List all product attributes. Mix and match to get
interesting combinations
o Why Method
Challenge the status quo and ask why the question is
being asked
Evaluate tradeoffs
o Use a pros vs. cons list
Summarize recommendations
o Tell the interviewer which product or feature youd
recommend (Be specific and confident!)

o Recap why its beneficial

o Explain why you preferred this solution

Tips

Think big
o Avoid me too ideas
E.g. I would create a Google+ feature similar to
Facebook Groups
o Avoid integration ideas
E.g. I would integrate YouTube with Android
Have at least three ideas
o Your first idea is usually your worst
Interview Visually
o Draw diagrams etc. on a whiteboard
Memorize design best practices
o Web design patterns
o Mobile design patterns
o Desktop application design patterns
Five Whys

Sample Questions

Tell me about a product you use frequently. Why do you like it?
Tell me about a product you think is designed poorly.
How would you improve [PowerPoint, LinkedIn, Yelps app]?
What killer feature would you build for [Chrome, Google Image
Search]?

Estimation
Two methods
Pick one or ask interviewer to pick
Top Down
Bottom Up

Tips

Be sure to keep assumptions & calculations written down so you

can see them and dont forget them
Use units in calculation
Talk throughout the calculation

Pricing
Three Methods

Value-based pricing (customers willingness-to-pay)

Competitive pricing (what do vendors of substitutes charge?)
Cost-based pricing (cost plus a fixed markup)

Tips

Consider impact of price changes on existing customers

Consider revenue and cost of new customers
Consider cannibalization, competitive response etc.
Porters Five Forces

Sample Questions

How should Amazon price the Kindle Fire HD?

Metrics
AAERM Metrics

Acquisition
o Get customers to show up and do lazy sign-up
Activation
o Get lazy signers to fill in profile
Engagement
o Get activated users to use the site
Retention
o Keep customers coming back
Monetization
o Extract revenue from customers
Average Revenue Per User (ARPU)
Average Revenue Per Paying User (ARPPU)
Average Revenue Per Daily Active User (ARPDAU)
Life-Time Value (LTV)
Cost Of Acquisition (COA)
Conversion Rate

Three Loops
Data Loop

Viral Loop

Compulsion Loop

1. Data Loop
User adds more information e.g. upload a picture, update status
2. Compulsion Loop
User checks application frequently e.g. see how farm has grown,
how many tokens acquired
3. Viral Loop
User invites friends to try the service e.g. adding connections

Tips

Freemium vs. traditional

A/B Testing
Cohorts daily, weekly, monthly, quarterly, yearly etc.

New Markets Checklist

Market Characteristics

Size
Growth
Profit Margins
Trends
o Customer Preferences
o Regulatory & Geopolitical Risk
o Technology

Competitive Environment

Number of Competitors
Competitors Resources
o Financial
o Employees
o Partner Ecosystem
o Sophistication

Competitors Unique Competencies

o Differentiated Products
o Access to Distribution Channels

Company Fit

Expertise
Economies of Scale
Access to Distribution Channels
Good relationships with suppliers
Related to existing brand promise

Sample Questions

Should Amazon sell ovens or oven mitts?

CEO-Level Strategy Questions

Competitive Issues
Acquisition Opportunities
Complimentary Products
Corporate Values

Sample Questions

Youre the CEO of Google and Quora is in play. Microsoft and

Facebook are bidding for it. Should Google participate in it and
why? (M&A)
Youre the CEO of Yellow Cab. How do you respond to Uber?
(Competition)
How does Company X make money and what are the biggest
threats? (Competition)

Creating Vision

Think Big
o No room for me too products
Influence and Morale
o PMs have to sell vision
Credibility
o Goal must be big but doable
Solve a Problem
o Cool pursuits that dont solve problems arent worth it
Sell a Solution
o Chart out a path to how your vision will be implemented

Passing the Stress Test

Understand why the interviewer asks such questions

o Usually about cultural fit
Manage the stress
o Use exposure therapy (Practice with a buddy!)
Separate the question from the emotion
o Approach the question in a thoughtful, intellectually
curious way

Behavioral Interviews

Owner vs. Participant

o Which one are you?
Good vs. Great Achievement
o How would team/feature/product/customer have done
without you?
Think Outside the Box
o Pick a solution not given in the list of options to
demonstrate creativity

Sample Questions
Tell me a time when you
Developed customer and product requirements
Convinced engineering to build a particular feature
Made a tradeoff between two technical alternatives
Created the product roadmap, vision and strategy
Led a team
Dealt with a difficult team member
Executed a plan that grew top-line results
Took initiative when not asked to do so
Made an important decision under time pressure
Analyzed a large data set
Gained consensus
Adjusted your project plan to accommodate unforeseen issues
Juggled multiple projects at once
Managed the complete project lifecycle

Storytelling
Tips

Colorful characters and settings

o People and places have names

o Youre at the center of the story

o Every hero has a villain
o Summarize the who, what, why, when and how of what
you're describing
Conflict
o Every good story has a conflict that needs to be resolved.
o Unreasonable constraints, impossible deadlines, earthshattering consequences
Resolution
o Complete the story and have a satisfying ending

DIGS
Dramatize the Situation
All jobs are just a series of calls, emails and meetings. Explain
the impact of your series of them.
Indicate the Alternatives
What other options did you consider and why did you pick the
one you did?
Suggest three alternatives
Go through what you did
Put the listener in your shoes and tell the story of how you
resolved the situation
Summarize your Impact
State the numbers
Qualitative impact is OK too E.g. praise from a customer or CEO