Discovery-Driven Planning (DDP) is a framework used to approach business ventures and projects characterized by high uncertainty. It allows companies to systematically uncover and test assumptions, adapting plans as new learnings emerge. This method is particularly beneficial for new market entries, product launches, or innovative initiatives, where traditional planning methods based on predictable outcomes are less effective.
Define the project's success metrics and ultimate objectives. | List all assumptions underlying the project's success. | Convert assumptions into testable hypotheses. | Develop a reverse income statement to understand financial implications. | Create a milestone planning chart to identify critical checkpoints. | Implement a learning plan to test hypotheses and validate assumptions.
Regularly review and update assumptions based on new data. | Focus on key metrics that will drive decision-making. | Encourage a culture of learning and flexibility within the team.
Reduces risk by identifying and testing assumptions early. | Increases flexibility and adaptability in project planning. | Enhances learning and insights from the project process.
Can be time-consuming due to continuous testing and validation. | May require more resources to adapt to changing plans. | Potentially difficult to maintain focus on original project goals.
Launching a new product in an unfamiliar market. | Entering a business venture with high levels of uncertainty.
Projects with clear, well-understood markets and customer needs. | Situations where speed to market is more critical than learning.