Purpose
Structure product decisions using Teresa Torres' Opportunity Solution Tree — a visual hierarchy that connects business outcomes to customer opportunities to potential solutions to validation experiments. Prevents teams from jumping to solutions before understanding the opportunity space.
Key Concepts
The Tree Structure
OUTCOME
(Business goal)
/ | \
Opportunity Opportunity Opportunity
(Customer need/pain point)
/ \ |
Solution Solution Solution
(Ideas to address opportunity)
/ \
Experiment Experiment
(Cheapest way to test)
Rules
- Outcomes are business results you're trying to drive (from OKRs)
- Opportunities are customer needs, pain points, or desires (from discovery)
- Solutions are ideas for addressing opportunities (brainstormed)
- Experiments are the cheapest way to test if a solution works
- Always compare 3+ solutions per opportunity before picking one
Application
Step 1: Define the Outcome
**Desired Outcome:** [From OKR — e.g., "Increase 7-day activation from 28% to 55%"]
**Why this outcome:** [Connection to business strategy]
Step 2: Map Opportunities
**Opportunities (customer needs that, if addressed, would drive the outcome):**
1. [Opportunity 1 — e.g., "Users don't understand core value during trial"]
- Evidence: [Interview quotes, data]
- Size: [# users affected]
2. [Opportunity 2 — e.g., "Data connection step is too technical"]
- Evidence: [Drop-off data]
- Size: [# users affected]
3. [Opportunity 3]
Step 3: Generate Solutions (3+ per opportunity)
**Solutions for Opportunity 1:**
| Solution | Effort | Confidence | Notes |
|----------|--------|-----------|-------|
| [Solution A] | [S/M/L] | [H/M/L] | [Rationale] |
| [Solution B] | [S/M/L] | [H/M/L] | [Rationale] |
| [Solution C] | [S/M/L] | [H/M/L] | [Rationale] |
Step 4: Design Experiments
**Experiment for [chosen solution]:**
- **Type:** [Prototype test / Fake door / A/B test / Concierge]
- **What we'll learn:** [Specific question]
- **Success criteria:** [Metric + threshold]
- **Duration:** [Days/weeks]
- **Cost:** [Effort to run]
Quality Rubric
| Dimension | 0 | 1 | 2 |
|---|---|---|---|
| Outcome | Not defined | Vague goal | Measurable from OKR |
| Opportunities | Assumed | Listed from intuition | Evidence-backed from research |
| Solution Diversity | 1 solution (pet idea) | 2 solutions | 3+ solutions compared |
| Experiments | None (just build it) | High-cost experiment | Cheapest test possible |
| Evidence | All assumption | Some data | Research-backed at each level |
References
Related Skills
skills/strategy/okr-framework/SKILL.md— Outcome comes from OKRsskills/discovery/problem-statement/SKILL.md— Opportunities from validated problemsskills/growth/ab-test-design/SKILL.md— Experiment design
External Frameworks
- Teresa Torres, Continuous Discovery Habits (2021)
Skill type: Component Domain: Specification & Design