Product Story — Fail Fast

I’ve developed solutions for many different businesses. My contacts span a variety of industries. This allows me to ask a domain expert for advice on thorny problems. My relationships are part of my value.

Once, I was pricing a new semi-exotic type of electricity option. It was due to trade and clear on Intercontinental Exchange. After considering and researching the product, I did not see a good way to price it.

I reached out to a friend who was one of the largest options traders in U.S. power, and we walked through it together. He explained to me that the product was hard to hedge and was unlikely to trade significant volumes. As we went through the math, I too became convinced that this product would not drive much new revenue. A trader shorting the option could not easily hedge her risk.

I shared my concerns with my manager and the project lead for the roll-out. They informed me that there was heavy demand for this option. I needed to continue working on the pricing model.

A few days later, the ICE Chief Strategy Officer dropped by my desk. He wanted to know why I felt the new electricity option was going to fail. I explained my position in detail. The CSO thanked me for my candor.

The project leader managed to release the product, but volumes were very weak. ICE retired the product after three months. 

It is important to seek critical feedback and incorporate it. In this case, we wasted resources. The story is here to showcase my relationships and my confidence. Given solid research, I will challenge consensus.