Class 10 · Movement 02
Diagnosing
the Business
Session 10 · Consulting
Session 10 · The terrain

No engineer has ever worked there.

393,000

US firms with $5–25M revenue (Census SUSB, 2022) — real payrolls, real operations, and almost none employ an engineer.

$36–63K/yr

their entire technology relationship: an MSP — outsourced IT maintenance — at ~$36–63K/yr for a 30-person firm, patching and backups. Zero build capability on the premises.

76%of SMB CEOs use gen-AI personally (Vistage Q4 2025)
~18%of firms deploy it in any function (Census BTOS)

Two surveys, people vs firms — but the direction is unmistakable: an implementation gap, not an awareness gap. The divide from class 02, standing in a warehouse. Closing it is the job.

Census SUSB 2022 · Vistage Q4 2025 · Census BTOS · compendium Part II — “Middle-Market America”
Session 10 · The doctrine

Stated requirements lie politely.

The trap

“Often what the customer describes in scoping doesn’t match the data and system reality on the ground.— Colin Jarvis, OpenAI, Head of Forward-Deployed Engineering

The doctrine

Build against observed pain: “you capture the tacit knowledge of how they work, not just the flattened ‘list of requirements’ model.” — Qureshi, eight years a Palantir FDE. That capture is what the weekly visits are for.

The unglamorous truth

Most forward-deployed time is getting access to data, cleaning it, and integrating it. When you evaluate a problem, grade the pipeline, not just the demo — where does the data live, and will they let you touch it?

Compendium Part II — “Forward-Deployed Engineering: History & Practice”
Session 10 · The technique

Ask about their life — not your idea.

Rule 1 · The Mom Test

Talk about their life, not your idea — an owner will politely bless any idea you pitch. Their daily reality can’t lie to you.

Rule 2 · The past, not the future

Three openers that always work: “Walk me through yesterday.” · “When did this last happen — what did it cost?” · “How do you handle it today?” Specifics about the past beat opinions about the future (“would you use…” invites a polite yes).

Rule 3 · Talk less, then dig

You’re there to listen. When something hurts: five whys down to the root, and shadow the work — watch the quote actually get made.

Worked example — fictional CT distributor
Owner:“We need AI for marketing.”Why?“Sales are flat.”Why?“We lose bids — quotes take three days.”Why?“Pricing needs stock counts…”Why?“…and inventory lives in one Excel file only Dana updates.”

The stated problem was marketing. The real one is a three-day quote cycle standing on one spreadsheet. That’s the find. And notice who had the answer: Dana. Interview the people who do the work — not only the owner.

Fitzpatrick, The Mom Test · compendium Part II · the exchange is fictional, for technique only
Session 10 · What to look for

Some problems are AI-shaped.

Reach for these

Repetitive · rule-describable · data-touching. Internal utilities, glue between systems that don’t talk, document and data chores — the work someone does every Tuesday with 40 browser tabs open.

Leave these alone

Payments, compliance, core customer data → established SaaS, full stop.If that IS their loudest pain, the deliverable becomes selecting and implementing the right SaaS — still a win, still scoped. (Class 15 makes this a rule with a checklist.)

Why the owner can’t see the use case: nobody who can build has ever stood in their building. They’ve seen chatbots, not their own Tuesday. When you shadow the work, you are the eyes — the use case is usually the third thing you watch someone do by hand.
Compendium Part II — problem selection · class-15 preview (build-vs-buy)
Session 10 · The three verbs

Listen. Diagnose. Then scope one thing.

Listenthe Mom Test — their life, their past, their Tuesday; you mostly quiet
Diagnosefive whys to the root · shadow the work · grade the pipeline, not the demo
Scopeone problem worth solving — chosen, named, and written down (class 13 turns this into a wall)
Next class: saying what you found in the owner’s language — answer-first structure, plain words, borrowed trust. (Shadowing, recording and data confidentiality get written rules in the engagement letter — class 16. Never wing those.)
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