In the previous article, The Strategy of Sacrifice, we explored how to choose a priority from the work breakdown pyramid. That choice rests on initial evidence that the problem exists. Before committing to a solution, we need a deeper test of what is causing it and what customers value. Validation continues as our understanding grows.
But once you’ve built your pyramid, you hit a new danger zone: competing explanations from different teams.
When you ask a room full of people why a company is losing customers, everyone has an opinion based on their own silo:
Sales says it’s price (because maybe cheap products are easier to sell).
Support says it’s the Digital Experience (because maybe they catch the calls from ‘stuck customers’).
Marketing might say it’s the Product (because maybe they brought in the customer who did not buy).
These are all hypotheses worth investigating. The cost comes when people treat them as facts and start building solutions before checking whether they have identified the real problem. An organization might invest in new technology, redesign a product, or cut prices based on what someone thinks is wrong—spending money and time on changes that may not be needed while the actual problem remains unresolved. That is why “I think” can become the most expensive phrase in business: an untested assumption becomes the basis for an expensive commitment.
Let’s look at the most common “solution” people jump to: price.
It sounds easy: “We’re too expensive. Let’s undercut the competition.” But before you slash your margins, you have to validate if price is actually the problem. If you jump into “solution mode” here without analysis, the consequences are a downward spiral:
You start a price war that destroys industry margins.
You squeeze your suppliers until they quit.
You cut your staff or “cut corners” on quality.
Validation: What is the customer actually buying?
Real validation requires stepping back and asking: What is our customer actually willing to pay for?
Value is subjective. Not everyone buys the cheapest option. In fact, if you know who your customer is, you might find that:
Customer A will pay more for a painless digital experience.
Customer B will pay more for a convenient physical location.
Customer C will pay more for a personal consultation or fast delivery.
If you don’t validate the problem, you might lower your price when you should have actually been fixing your website or opening a new branch.
When you focus your strategy on a specific type of customer and solve their specific friction points, you don’t just stop the bleeding—you create advocates. People may complain about bad experiences, but they also share positive ones.
Assess the problem (Is this a real issue or just an opinion?).
Validate the data (What does the customer actually value?).
Define the requirements (What does a successful fix look like?).
Only then should your people start building solutions.
Now that we’ve validated the big problem, how do we turn that “box” in our pyramid into smaller, more actionable pieces of work that deliver? Moreover, how do we make it a strategic problem that engages the entire organization?