Background    The company is an investment firm based in Europe.  They focus on commercial real  estate investments, as the company believes that client demand for such  investments is high.  The company’s clients are high net worth individuals and  institutions based in the Middle East.  They have three European-based employees,  all senior executives who had previously worked together at a successful Middle  East-based investment bank.  The executives bring varied expertise to the company,  a plethora of contacts across the Middle East, Europe and the US, and many years of  experience among them. The executives believe the company has excellent access to  deal flow.     Challenge  After one year in business, the company had not completed any investments.   Management thought this was due to number of reasons, and noted that they had  obtained multiple client mandates to bid on several opportunities.  The executive  team described their frustration and asked for assistance in identifying insights and  possible solutions to complete investments with their client base.        Selection  For this assignment I selected the Learning Launch Tool.  This tool allows the user to  test ideas in the marketplace, preferably in a fast and inexpensive way.  I selected  this tool as a means to help the executives test a new business idea; this tool allows  them to test their hypothesis and assumptions around key customer needs.  I  understood that this tool would help the company validate certain beliefs about  investor demands.  Additionally, it would allow the company to uncover any unmet  or unarticulated customer needs, which they had not previously explored.    Application  I reviewed material gathered in interviews with the executive team.  According to  the team, one reason they had not completed any real estate investments was,  “Current real estate prices are high in the locations where our clients want to invest.   Our clients, especially certain institutional clients, seek cost generative, high  yielding investments, which are very difficult to source in an expensive market.”  I  proposed that the company test the hypothesis: “Clients only want deals that meet  specific, measurable outcomes; customer needs are only return driven and they do  not appreciate other benefits apart from measurable outcomes.”    To test this assumption, informed by the Learning Launch Tool, I asked the  executives if they had considered investments that would bring great publicity and  goodwill to their clients, even if it did not match their return requirements.  Further,  I advised the company to pursue a small investment using non-traditional financial  technology (“fintech”) solutions during the investment process.  During the  interview process, management noted that one of their key clients was based in a  country that was pushing its financial sector to innovate in the fintech space.  The  rational for this test was that executing such an investment would generate a very  positive response from government and local press for their client.  Therefore, the

hypothesis about whether or not the client would modify their investment criteria  for the intangible benefits could be tested.  The executives at the company  responded positively to approach I suggested.  They presented the idea to their  client, who was also very interested in exploring it.  They are scheduled to discuss  the idea further with the client and explore a potential pilot program.     Insight and Approach  It will take more time to fully understand if the solution presented for this particular  challenge will be effective.  Evidence that the company and their client want to  pursue the solution reflects positively on the tool.  However, to gain an even better  understanding of why the company has not executed other investments would  require further identification, unpacking and testing of assumptions.    This tool is very powerful and effective for this challenge.  I can see how it could be  applied to many types of difficult business problems.  However, I believe there are at  least two key areas to ensure success with the tool.  The first, as Professor Ed Hess  discussed, is confirmation bias.  The desire to see one’s hypothesis proven correct is  high.  To mitigate this risk, the professor suggested a multi-functional team inclusive  of a skeptic to work on the challenge.   This is something I would like to incorporate  into the process next time.   The second way to gain a better outcome is a well- designed, systemic approach to ensure that an exhaustive list of assumptions is  challenged.     From this assignment and the application of the Learning Launch tool, I have  learned that one must quickly test and critique apparent observations and industry  norms to get new answers.  Applying this tool to a specific challenge allows one to  continually peel back the layers and test assumptions to arrive at more meaningful  solutions in a quick, efficient and often low cost manner.


Background The company is an investment firm based in Europe . They focus on commercial real estate investments , as the company believes that client demand for such investments is high . The company ’s clients are high net worth individuals and institutions based in the Middle East . They have three European - based employees , all senior executives who had previously worked together at a successful Middle East - based investment bank . The executives bring varied expertise to the company , a plethora of contacts across the Middle East , Europe and the US , and many years of experience among them . The executives believe the company has excellent access to deal flow . Challenge After one year in business , the company had not completed any investments . Management thought this was due to number of reasons , and noted that they had obtained multiple client mandates to bid on several opportunities . The executive team described their frustration and asked for assistance in identifying insights and possible solutions to complete investments with their client base . Selection For this assignment I selected the Learning Launch Tool . This tool allows the user to test ideas in the marketplace , preferably in a fast and inexpensive way . I selected this tool as a means to help the executives test a new business idea ; this tool allows them to test their hypothesis and assumptions around key customer needs . I understood that this tool would help the company validate certain beliefs about investor demands . Additionally , it would allow the company to uncover any unmet or unarticulated customer needs , which they had not previously explored . Application I reviewed material gathered in interviews with the executive team . According to the team , one reason they had not completed any real estate investments was , “ Current real estate prices are high in the locations where our clients want to invest . Our clients , especially certain institutional clients , seek cost generative , high yielding investments , which are very difficult to source in an expensive market . ” I proposed that the company test the hypothesis : “ Clients only want deals that meet specific , measurable outcomes ; customer needs are only return driven and they do not appreciate other benefits apart from measurable outcomes . ” To test this assumption , informed by the Learning Launch Tool , I asked the executives if they had considered investments that would bring great publicity and goodwill to their clients , even if it did not match their return requirements . Further , I advised the company to pursue a small investment using non - traditional financial technology ( “ fintech ” ) solutions during the investment process . During the interview process , management noted that one of their key clients was based in a country that was pushing its financial sector to innovate in the fintech space . The rational for this test was that executing such an investment would generate a very positive response from government and local press for their client . Therefore , the hypothesis about whether or not the client would modify their investment criteria for the intangible benefits could be tested . The executives at the company responded positively to approach I suggested . They presented the idea to their client , who was also very interested in exploring it . They are scheduled to discuss the idea further with the client and explore a potential pilot program . Insight and Approach It will take more time to fully understand if the solution presented for this particular challenge will be effective . Evidence that the company and their client want to pursue the solution reflects positively on the tool . However , to gain an even better understanding of why the company has not executed other investments would require further identification , unpacking and testing of assumptions . This tool is very powerful and effective for this challenge . I can see how it could be applied to many types of difficult business problems . However , I believe there are at least two key areas to ensure success with the tool . The first , as Professor Ed Hess discussed , is confirmation bias . The desire to see one ’s hypothesis proven correct is high . To mitigate this risk , the professor suggested a multi - functional team inclusive of a skeptic to work on the challenge . This is something I would like to incorporate into the process next time . The second way to gain a better outcome is a well- designed , systemic approach to ensure that an exhaustive list of assumptions is challenged . From this assignment and the application of the Learning Launch tool , I have learned that one must quickly test and critique apparent observations and industry norms to get new answers . Applying this tool to a specific challenge allows one to continually peel back the layers and test assumptions to arrive at more meaningful solutions in a quick , efficient and often low cost manner .