Many organisations are interested in using the proven techniques presented in the Lean Startup methodology. However, most medium to large organisations have to report to stakeholders or stock exchanges and therefore require clear governance procedures. In the past this involved creating extensive business cases and financial models which inevitably took months (or years) to produce. Lean Startup clearly represents a much faster and better way to work. But how can we provide company executive and boards with the information they need to govern their organisation properly?
This presentation presents visualisation tools that were developed in real-world circumstances to transform a corporate environment to run in a Lean Startup manner. We will focus in particular on how to distil and disseminate data into information that both product teams and executives can use to fast-track products to market.
2. Lean Startup Business Planning?
No one reads this!
Problem Solution
Key metrics
Unique value proposition Unfair advantage Customer Segments
Channels
Cost Structure Revenue Streams
top 3 problems top 3 features (MVP that demonstrates UVP)
single, clean, compelling message that states
why you are different and worth buying
can't be easily copied or bought target customers (separate canvas for
different target customers)
key activities you measure (define success)
path to customers (free and paid channels)
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
Lean Business Model Canvas
Designed for: Designed by: On: dd/mm/yyyy
Iteration #
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Text
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Add
Text
Here
Add
Text
Here
Add
Text
Here
Add
Text
Here
copy the post-its
below and paste
them in the canvas
Ash Maurya's lean canvas adaptation of the original google draw template by scrumology.net based on the work of Alexander Ostenwalder . Lucas Cervera
to cre
canvas, go
share
(subscription, ads, freemium...Outline back-of-the-envelope assumptions for life time
value, gross margin, break-even point, etc.)
This describes what we are doing, why we
are doing it and how much it might cost….
But not when or how.
4. Managing your key stakeholders
Most executive managers - 12hour+ work days. VERY LIMITED time to inform them.
5. Stakeholders want to know
• What is the customer problem?
• How are you going to solve it?
• How long do you think it will take?
• When can you launch something to market?
• What is it going to cost?
• What are the expected revenues (and return on
investment)? ……
“BIG PICTURE” questions… to get support and funding.
How do we address these questions and still use Lean
Startup principles to “build the right thing”?
6. Our current tools aren’t so Lean
Problem Solution
Key metrics
Unique value proposition Unfair advantage Customer Segments
Channels
Cost Structure Revenue Streams
top 3 problems top 3 features (MVP that demonstrates UVP)
single, clean, compelling message that states
why you are different and worth buying
can't be easily copied or bought target customers (separate canvas for
different target customers)
key activities you measure (define success)
path to customers (free and paid channels)
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
Lean Business Model Canvas
Designed for: Designed by: On: dd/mm/yyyy
Iteration #
Add
Text
Here
Add
Text
Here
Add
Text
Here
copy the post-its
below and paste
em in the canvas
Ash Maurya's lean canvas adaptation of the original google draw template by scrumology.net based on the work of Alexander Ostenwalder . Lucas Cervera
to create your own copy of this
canvas, go to File/Make a copy and
share it with whoever you want
(subscription, ads, freemium...Outline back-of-the-envelope assumptions for life time
value, gross margin, break-even point, etc.)
And they really don’t address the “big picture” questions
7. Visualise what we are trying to achieve
Need a way to visualise and “tell the
story” about our business/solution
concept.
Why make it visual?
• 90%
of
informa,on
transmi/ed
to
the
brain
is
visual
• Images
are
processed
60,000
,mes
faster
in
the
brain
than
text
• Visuals
improve
learning
ability
by
up
to
400
percent
8. Lean Business Canvas
Hypothesis-driven development
Problem Solution
Key metrics
Unique value proposition Unfair advantage Customer Segments
Channels
Cost Structure Revenue Streams
top 3 problems top 3 features (MVP that demonstrates UVP)
single, clean, compelling message that states
why you are different and worth buying
can't be easily copied or bought target customers (separate canvas for
different target customers)
key activities you measure (define success)
path to customers (free and paid channels)
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
Lean Business Model Canvas
Designed for: Designed by: On: dd/mm/yyyy
Iteration #
dd
ext
ere
dd
ext
ere
Add
Text
Here
dd
ext
ere
Add
Text
Here
Add
Text
Here
copy the post-its
below and paste
them in the canvas
Ash Maurya's lean canvas adaptation of the original google draw template by scrumology.net based on the work of Alexander Ostenwalder . Lucas Cervera
to create your
canvas, go to File/
share it with w
(subscription, ads, freemium...Outline back-of-the-envelope assumptions for life time
value, gross margin, break-even point, etc.)
29. Evidence-based funding
MicroAgencyModel
Technologyplatform
Verticals
Metrics
Resources
KeyMilestone
Every 2 weeks, review experiment
metrics with finance team. Agree how
money should be spent (governance).
Agree next quarter’s activities
based on current experiment results
with finance team (at least monthly)
Initial plan based on inception
outputs – customer interviews, etc.
Team members annotate plan as
required – for example when
critical data will be available.
Separate card wall for
every stream.
Build research and
experimentation into your plan
Note resources
required so costs can
be considered.
30. Closing thoughts
Hypothesis-driven development
• Put the “visual” back into strategic vision. Images are
processed by the brain 60,000 times faster than text.
• Experiments that test the risk in your business plan are
vital. What customers say and what they do varies
greatly. Rely solely on “market research” at your peril.
• Solution doesn’t necessarily mean software. Remember
the “human element” – user experience, sales, service,
education.
• Create “information radiators” - share information visually
to facilitate conversations and better decision making