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Lean Startups
The Manufacturing of Innovation
Lean Startup presentation at Kellogg Entrepreneurship Conference
Who am I?



john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
Founder of Blueleaf.com




                     Who am I?



john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
Founder of Blueleaf.com

                          Board Member oneforty


                     Who am I?



john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
Founder of Blueleaf.com
                                                   Mentor at Techstars
                          Board Member oneforty


                     Who am I?



john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
Founder of Blueleaf.com
                                                    Mentor at Techstars
                          Board Member oneforty


                     Who am I?
                             One of the first Boston Chicken Franchisees




john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
Founder of Blueleaf.com
                                                             Mentor at Techstars
                                  Board Member oneforty


                             Who am I?
                                      One of the first Boston Chicken Franchisees

Product Management at a series of startups




       john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
Founder of Blueleaf.com
                                                             Mentor at Techstars
                                  Board Member oneforty


                             Who am I?
                                      One of the first Boston Chicken Franchisees

Product Management at a series of startups

                                             Investment Banker for Tech Cos

       john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
Lean Startups
Name has caused confusion
Toyota Production System




       Lean Manufacturing
Minimize waste ...




                     http-//www.flickr.com/photos/editor/172690560/sizes/l/in/photostream/.jpg
Not cheap or bootstrapped
Startups?
It’s where innovation happens
What is a startup?
What is a startup?
• A startup is a human institution designed to deliver a new product or
  service under conditions of extreme uncertainty

• Nothing to do with size of the company, sector of the economy or
  industry
Said Differently ...
Innovation
Innovation Manufacturing
Innovation Manufacturing
Repeatable process for creating market accepted innovation
Innovation Manufacturing


Apply lean manufacturing principles and the scientific method to
                  the process of innovation
Lean Startups


Apply lean manufacturing principles and the scientific method to
                  the process of innovation
CAUTION_http-//www.flickr.com/photos/32315759@N00/452776240/sizes/z/in/photostream/
Methodology Can’t
Replace Judgement
Or Replace Vision
Why bother with this?
Source: Eric Ries
Most Innovations Fail
                        Source: Eric Ries
It doesn’t need to be that way . . .
Why Do Startups Fail?
Lack of Customers
Question?
Does it make sense that we have
product development process ...
                              Source: Steve Blank
... but a not a Customer
 Development Process?
Entrepreneurial
 Superpowers
Vision / Delusional
                       Capacity




Entrepreneurial
 Superpowers
Vision / Delusional
                       Capacity



                        Bias for Action
Entrepreneurial
 Superpowers
Steve Blank Hypotheses

•   Entrepreneurs and Investors are generally executing on guesses

•   Startups aren’t small versions of large organizations

•   They are about learning/discovery, not execution

•   Need to surface hypotheses/assumptions and test against facts

•   However, the Facts Live Outside of the Building
Led to Customer
Development Model




                    Source: Steve Blank
Customer Development is at the
    Heart of Lean Startups
Surface Hypotheses & Test
Facts Live Outside of the Building
Separate Vision from Delusion
Customer Development
Eric Ries Extended Model

•   Steve realized the Problem was unknown,

•   Eric’s Insights

    •   Given that the Solution is also unknown

    •   Agile development needed to match Customer development speed
Built To Learn

           IDEAS




  LEARN             BUILD




   DATA
                    CODE


          MEASURE
John Boyd’s Insight

                     IDEAS




            LEARN             BUILD




             DATA
                              CODE


                    MEASURE
John Boyd’s Insight

OODA Loop               IDEAS




               LEARN             BUILD




                DATA
                                 CODE


                       MEASURE
John Boyd’s Insight

              OODA Loop                     IDEAS




•   Observe, Orient, Decide, Act   LEARN             BUILD




                                    DATA
                                                     CODE


                                           MEASURE
John Boyd’s Insight

            OODA Loop                          IDEAS




• Observe, Orient, Decide, Act        LEARN             BUILD




• Depends on accurate external data    DATA
                                                        CODE


                                              MEASURE
John Boyd’s Insight

              OODA Loop                        IDEAS




• Observe, Orient, Decide, Act        LEARN             BUILD




• Depends on accurate external data    DATA
                                                        CODE


                                              MEASURE


• Speed through the loop beats
  quality of iteration
Changes Context of Progress
Not About Working Big Plan
Progress
                 =
Validated Learning About Customers
Or we can accelerate into a brick wall
Changes scope of
development efforts
Changes scope of
               development efforts
• Huge feature lists don’t make sense
Changes scope of
               development efforts
• Huge feature lists don’t make sense
Changes scope of
               development efforts
• Huge feature lists don’t make sense

• Actual working product may not make sense
Changes scope of
               development efforts
• Huge feature lists don’t make sense

• Actual working product may not make sense
Changes scope of
               development efforts
• Huge feature lists don’t make sense

• Actual working product may not make sense

• Create the smallest amount of “product” necessary to learn
Minimum Viable Product
Product / Market Fit
“Do whatever is required to get to product/market fit. Including:

                      changing out people,
                     rewriting your product,
                  moving into a different market,
         telling customers no when you don’t want to,
         telling customers yes when you don’t want to,
   raising that fourth round of highly dilutive venture capital

                     —whatever is required.”



                  — Marc Andreessen
                http://blog.pmarca.com/2007/06/the-pmarca-gu-2.html
Great Startups Adjust To Facts
The Pivot




     http://startuplessonslearned.blogspot.com/2009/06/pivot-dont-jump-to-new-vision.html
The Pivot
• What do successful startups have in common?
 • They started out as digital cash for PDAs, but evolved into online
   payments for eBay.
 • They started building BASIC interpreters, but evolved into the world's
   largest operating systems monopoly.
 • They were shocked to discover their online games company was actually
   a photo-sharing site.




                                       http://startuplessonslearned.blogspot.com/2009/06/pivot-dont-jump-to-new-vision.html
The Pivot
• What do successful startups have in common?
 • They started out as digital cash for PDAs, but evolved into online
   payments for eBay.
 • They started building BASIC interpreters, but evolved into the world's
   largest operating systems monopoly.
 • They were shocked to discover their online games company was actually
   a photo-sharing site.




                                       http://startuplessonslearned.blogspot.com/2009/06/pivot-dont-jump-to-new-vision.html
The Pivot
• What do successful startups have in common?
 • They started out as digital cash for PDAs, but evolved into online
   payments for eBay.
 • They started building BASIC interpreters, but evolved into the world's
   largest operating systems monopoly.
 • They were shocked to discover their online games company was actually
   a photo-sharing site.

• Pivot: change directions but stay grounded in what we’ve learned.


                                         http://startuplessonslearned.blogspot.com/2009/06/pivot-dont-jump-to-new-vision.html
The Pivot




      PIVOTCARTOON_http-//www.newyorker.com/humor/issuecartoons/2010/04/26/cartoons_20100419#slide=2
On Pivots




            @dbinetti
On Pivots




            @dbinetti
On Pivots
• Pivots are restatements of your business model; not synonymous with
  product change




                                                                        @dbinetti
On Pivots
• Pivots are restatements of your business model; not synonymous with
  product change




                                                                        @dbinetti
On Pivots
• Pivots are restatements of your business model; not synonymous with
  product change

• Pivots are a consequence of learning about your business, not just your
  product




                                                                            @dbinetti
On Pivots
• Pivots are restatements of your business model; not synonymous with
  product change

• Pivots are a consequence of learning about your business, not just your
  product




                                                                            @dbinetti
On Pivots
• Pivots are restatements of your business model; not synonymous with
  product change

• Pivots are a consequence of learning about your business, not just your
  product

• Pivots are vision-driven, not testing driven


                                                                            @dbinetti
Speed Wins ...
What about management process?
Leading & Managing Lean
Leading & Managing Lean
• People don’t rally around experiments - “It’s the vision stupid”
Leading & Managing Lean
• People don’t rally around experiments - “It’s the vision stupid”
Leading & Managing Lean
• People don’t rally around experiments - “It’s the vision stupid”

• Everything starts with vision then rigorously test against actual results
Leading & Managing Lean
• People don’t rally around experiments - “It’s the vision stupid”

• Everything starts with vision then rigorously test against actual results
Leading & Managing Lean
• People don’t rally around experiments - “It’s the vision stupid”

• Everything starts with vision then rigorously test against actual results

• Optimize Total Time through the loop
Leading & Managing Lean
• People don’t rally around experiments - “It’s the vision stupid”

• Everything starts with vision then rigorously test against actual results

• Optimize Total Time through the loop
Leading & Managing Lean
• People don’t rally around experiments - “It’s the vision stupid”

• Everything starts with vision then rigorously test against actual results

• Optimize Total Time through the loop

• Traditional management tools are not built for extreme uncertainty
Leading & Managing Lean
• People don’t rally around experiments - “It’s the vision stupid”

• Everything starts with vision then rigorously test against actual results

• Optimize Total Time through the loop

• Traditional management tools are not built for extreme uncertainty
Leading & Managing Lean
• People don’t rally around experiments - “It’s the vision stupid”

• Everything starts with vision then rigorously test against actual results

• Optimize Total Time through the loop

• Traditional management tools are not built for extreme uncertainty

• Iteration speed is governed by speed of learning not “building”
Start with Vision and adjust
Unit Economics & Biz model
      NOT projections
Openness NOT command and
          control
Learning Can Be Scary
Innovation accounting
Innovation accounting
• Establish the Baseline
  • Build the minimum viable product
  • Measure how customers behave right now
Innovation accounting
• Establish the Baseline
  • Build the minimum viable product
  • Measure how customers behave right now
Innovation accounting
• Establish the Baseline
  • Build the minimum viable product
  • Measure how customers behave right now

• Tune the Engine
  • Experiment to move metrics from baseline to ideal
Innovation accounting
• Establish the Baseline
  • Build the minimum viable product
  • Measure how customers behave right now

• Tune the Engine
  • Experiment to move metrics from baseline to ideal
Innovation accounting
• Establish the Baseline
  • Build the minimum viable product
  • Measure how customers behave right now

• Tune the Engine
  • Experiment to move metrics from baseline to ideal

• Pivot or persevere
  • When experiments reach diminishing returns some distance from goal
Lean Startup presentation at Kellogg Entrepreneurship Conference
In Action - Stanford Lean Launchpad
Lean Startup presentation at Kellogg Entrepreneurship Conference
Lean Startup presentation at Kellogg Entrepreneurship Conference
Lean Startup presentation at Kellogg Entrepreneurship Conference
Lean Startup presentation at Kellogg Entrepreneurship Conference
Lean Startup presentation at Kellogg Entrepreneurship Conference
Lean Startup presentation at Kellogg Entrepreneurship Conference
Tactical fun with MVPs
Minimum Viable Product
• Minimum set of features needed to learn from earlyvangelists - visionary
  early customers
  • Avoid building products that nobody wants
  • Max learning per $

• Probably much more minimum than you think
Minimum Viable Product
• Visionary customers can “fill in the gaps” on missing features, if the
  product solves a real problem

• Allows us to achieve a big vision in small increments without going in
  circles

• Requires a commitment to iteration

• MVP is only for BIG VISION products; unnecessary for minimal products
Minimum Viable Product
Minimum Viable Product
• Smoke testing with landing pages, adwords
Minimum Viable Product
• Smoke testing with landing pages, adwords
• SEM on $5 per day
Minimum Viable Product
• Smoke testing with landing pages, adwords
• SEM on $5 per day
• In-product split testing
Minimum Viable Product
•   Smoke testing with landing pages, adwords
•   SEM on $5 per day
•   In-product split testing
•   Paper prototypes
Minimum Viable Product
•   Smoke testing with landing pages, adwords
•   SEM on $5 per day
•   In-product split testing
•   Paper prototypes
•   Keynote products
Minimum Viable Product
•   Smoke testing with landing pages, adwords
•   SEM on $5 per day
•   In-product split testing
•   Paper prototypes
•   Keynote products
•   Concierge tests
Minimum Viable Product
•   Smoke testing with landing pages, adwords
•   SEM on $5 per day
•   In-product split testing
•   Paper prototypes
•   Keynote products
•   Concierge tests
•   Cohort and Engagement
MVP Fears
MVP Fears
• False negative: “customers would have liked the full product but the MVP
  sucks, so we abandoned the vision
MVP Fears
• False negative: “customers would have liked the full product but the MVP
  sucks, so we abandoned the vision
MVP Fears
• False negative: “customers would have liked the full product but the MVP
  sucks, so we abandoned the vision

• Visionary complex “Customers don’t know what they want”
MVP Fears
• False negative: “customers would have liked the full product but the MVP
  sucks, so we abandoned the vision

• Visionary complex “Customers don’t know what they want”
MVP Fears
• False negative: “customers would have liked the full product but the MVP
  sucks, so we abandoned the vision

• Visionary complex “Customers don’t know what they want”

• Too busy to learn: “it would be faster to just built it right, all this measuring
  distracts from delighting customers”
Lean Startup Principles
Lean Startup Principles
• Innovation & Entrepreneurship is management
Lean Startup Principles
• Innovation & Entrepreneurship is management
Lean Startup Principles
• Innovation & Entrepreneurship is management

• Validated Learning
Lean Startup Principles
• Innovation & Entrepreneurship is management

• Validated Learning
Lean Startup Principles
• Innovation & Entrepreneurship is management

• Validated Learning

• Build - Measure - Learn
Lean Startup Principles
• Innovation & Entrepreneurship is management

• Validated Learning

• Build - Measure - Learn
Lean Startup Principles
• Innovation & Entrepreneurship is management

• Validated Learning

• Build - Measure - Learn

• Speed through the loop beat quality
Lean Startup Principles
• Innovation & Entrepreneurship is management

• Validated Learning

• Build - Measure - Learn

• Speed through the loop beat quality
Lean Startup Principles
• Innovation & Entrepreneurship is management

• Validated Learning

• Build - Measure - Learn

• Speed through the loop beat quality

• Innovation Accounting
People and Resources


                             Text




john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
People and Resources
• Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad



                                   Text




    john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
People and Resources
• Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad
   - Book: 4 Steps to the Epiphany


                                   Text




    john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
People and Resources
• Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad
   - Book: 4 Steps to the Epiphany
• Eric Ries - www.startuplessonslearned.com
                                   Text




    john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
People and Resources
• Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad
   - Book: 4 Steps to the Epiphany
• Eric Ries - www.startuplessonslearned.com
   - Book: The Lean Startup         Text




    john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
People and Resources
• Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad
   - Book: 4 Steps to the Epiphany
• Eric Ries - www.startuplessonslearned.com
   - Book: The Lean Startup         Text
• Patrick Vlaskovits & Brant Cooper - Vlaskovits.com, market-by-numbers.com




    john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
People and Resources
• Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad
   - Book: 4 Steps to the Epiphany
• Eric Ries - www.startuplessonslearned.com
   - Book: The Lean Startup         Text
• Patrick Vlaskovits & Brant Cooper - Vlaskovits.com, market-by-numbers.com
   - The Entrepreneurs Guide to Customer Development




    john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
People and Resources
• Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad
   - Book: 4 Steps to the Epiphany
• Eric Ries - www.startuplessonslearned.com
   - Book: The Lean Startup         Text
• Patrick Vlaskovits & Brant Cooper - Vlaskovits.com, market-by-numbers.com
   - The Entrepreneurs Guide to Customer Development
• Meetup.com, local Lean Startup Circle Meetups - ~20,000 members globally




    john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
People and Resources
• Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad
   - Book: 4 Steps to the Epiphany
• Eric Ries - www.startuplessonslearned.com
   - Book: The Lean Startup         Text
• Patrick Vlaskovits & Brant Cooper - Vlaskovits.com, market-by-numbers.com
   - The Entrepreneurs Guide to Customer Development
• Meetup.com, local Lean Startup Circle Meetups - ~20,000 members globally
  http://lean-startup.meetup.com/



    john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
People and Resources
• Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad
   - Book: 4 Steps to the Epiphany
• Eric Ries - www.startuplessonslearned.com
   - Book: The Lean Startup         Text
• Patrick Vlaskovits & Brant Cooper - Vlaskovits.com, market-by-numbers.com
   - The Entrepreneurs Guide to Customer Development
• Meetup.com, local Lean Startup Circle Meetups - ~20,000 members globally
  http://lean-startup.meetup.com/
• Lean Startup Circle online - ~4,000 members with active discussions


    john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
People and Resources
• Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad
   - Book: 4 Steps to the Epiphany
• Eric Ries - www.startuplessonslearned.com
   - Book: The Lean Startup         Text
• Patrick Vlaskovits & Brant Cooper - Vlaskovits.com, market-by-numbers.com
   - The Entrepreneurs Guide to Customer Development
• Meetup.com, local Lean Startup Circle Meetups - ~20,000 members globally
  http://lean-startup.meetup.com/
• Lean Startup Circle online - ~4,000 members with active discussions
  https://groups.google.com/group/lean-startup-circle
    john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast

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Lean Startup presentation at Kellogg Entrepreneurship Conference

  • 3. Who am I? john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 4. Founder of Blueleaf.com Who am I? john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 5. Founder of Blueleaf.com Board Member oneforty Who am I? john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 6. Founder of Blueleaf.com Mentor at Techstars Board Member oneforty Who am I? john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 7. Founder of Blueleaf.com Mentor at Techstars Board Member oneforty Who am I? One of the first Boston Chicken Franchisees john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 8. Founder of Blueleaf.com Mentor at Techstars Board Member oneforty Who am I? One of the first Boston Chicken Franchisees Product Management at a series of startups john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 9. Founder of Blueleaf.com Mentor at Techstars Board Member oneforty Who am I? One of the first Boston Chicken Franchisees Product Management at a series of startups Investment Banker for Tech Cos john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 11. Name has caused confusion
  • 12. Toyota Production System Lean Manufacturing
  • 13. Minimize waste ... http-//www.flickr.com/photos/editor/172690560/sizes/l/in/photostream/.jpg
  • 14. Not cheap or bootstrapped
  • 17. What is a startup?
  • 18. What is a startup? • A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty • Nothing to do with size of the company, sector of the economy or industry
  • 22. Innovation Manufacturing Repeatable process for creating market accepted innovation
  • 23. Innovation Manufacturing Apply lean manufacturing principles and the scientific method to the process of innovation
  • 24. Lean Startups Apply lean manufacturing principles and the scientific method to the process of innovation
  • 30. Most Innovations Fail Source: Eric Ries
  • 31. It doesn’t need to be that way . . .
  • 35. Does it make sense that we have product development process ... Source: Steve Blank
  • 36. ... but a not a Customer Development Process?
  • 38. Vision / Delusional Capacity Entrepreneurial Superpowers
  • 39. Vision / Delusional Capacity Bias for Action Entrepreneurial Superpowers
  • 40. Steve Blank Hypotheses • Entrepreneurs and Investors are generally executing on guesses • Startups aren’t small versions of large organizations • They are about learning/discovery, not execution • Need to surface hypotheses/assumptions and test against facts • However, the Facts Live Outside of the Building
  • 41. Led to Customer Development Model Source: Steve Blank
  • 42. Customer Development is at the Heart of Lean Startups
  • 44. Facts Live Outside of the Building
  • 47. Eric Ries Extended Model • Steve realized the Problem was unknown, • Eric’s Insights • Given that the Solution is also unknown • Agile development needed to match Customer development speed
  • 48. Built To Learn IDEAS LEARN BUILD DATA CODE MEASURE
  • 49. John Boyd’s Insight IDEAS LEARN BUILD DATA CODE MEASURE
  • 50. John Boyd’s Insight OODA Loop IDEAS LEARN BUILD DATA CODE MEASURE
  • 51. John Boyd’s Insight OODA Loop IDEAS • Observe, Orient, Decide, Act LEARN BUILD DATA CODE MEASURE
  • 52. John Boyd’s Insight OODA Loop IDEAS • Observe, Orient, Decide, Act LEARN BUILD • Depends on accurate external data DATA CODE MEASURE
  • 53. John Boyd’s Insight OODA Loop IDEAS • Observe, Orient, Decide, Act LEARN BUILD • Depends on accurate external data DATA CODE MEASURE • Speed through the loop beats quality of iteration
  • 54. Changes Context of Progress
  • 55. Not About Working Big Plan
  • 56. Progress = Validated Learning About Customers
  • 57. Or we can accelerate into a brick wall
  • 59. Changes scope of development efforts • Huge feature lists don’t make sense
  • 60. Changes scope of development efforts • Huge feature lists don’t make sense
  • 61. Changes scope of development efforts • Huge feature lists don’t make sense • Actual working product may not make sense
  • 62. Changes scope of development efforts • Huge feature lists don’t make sense • Actual working product may not make sense
  • 63. Changes scope of development efforts • Huge feature lists don’t make sense • Actual working product may not make sense • Create the smallest amount of “product” necessary to learn
  • 65. Product / Market Fit “Do whatever is required to get to product/market fit. Including: changing out people, rewriting your product, moving into a different market, telling customers no when you don’t want to, telling customers yes when you don’t want to, raising that fourth round of highly dilutive venture capital —whatever is required.” — Marc Andreessen http://blog.pmarca.com/2007/06/the-pmarca-gu-2.html
  • 67. The Pivot http://startuplessonslearned.blogspot.com/2009/06/pivot-dont-jump-to-new-vision.html
  • 68. The Pivot • What do successful startups have in common? • They started out as digital cash for PDAs, but evolved into online payments for eBay. • They started building BASIC interpreters, but evolved into the world's largest operating systems monopoly. • They were shocked to discover their online games company was actually a photo-sharing site. http://startuplessonslearned.blogspot.com/2009/06/pivot-dont-jump-to-new-vision.html
  • 69. The Pivot • What do successful startups have in common? • They started out as digital cash for PDAs, but evolved into online payments for eBay. • They started building BASIC interpreters, but evolved into the world's largest operating systems monopoly. • They were shocked to discover their online games company was actually a photo-sharing site. http://startuplessonslearned.blogspot.com/2009/06/pivot-dont-jump-to-new-vision.html
  • 70. The Pivot • What do successful startups have in common? • They started out as digital cash for PDAs, but evolved into online payments for eBay. • They started building BASIC interpreters, but evolved into the world's largest operating systems monopoly. • They were shocked to discover their online games company was actually a photo-sharing site. • Pivot: change directions but stay grounded in what we’ve learned. http://startuplessonslearned.blogspot.com/2009/06/pivot-dont-jump-to-new-vision.html
  • 71. The Pivot PIVOTCARTOON_http-//www.newyorker.com/humor/issuecartoons/2010/04/26/cartoons_20100419#slide=2
  • 72. On Pivots @dbinetti
  • 73. On Pivots @dbinetti
  • 74. On Pivots • Pivots are restatements of your business model; not synonymous with product change @dbinetti
  • 75. On Pivots • Pivots are restatements of your business model; not synonymous with product change @dbinetti
  • 76. On Pivots • Pivots are restatements of your business model; not synonymous with product change • Pivots are a consequence of learning about your business, not just your product @dbinetti
  • 77. On Pivots • Pivots are restatements of your business model; not synonymous with product change • Pivots are a consequence of learning about your business, not just your product @dbinetti
  • 78. On Pivots • Pivots are restatements of your business model; not synonymous with product change • Pivots are a consequence of learning about your business, not just your product • Pivots are vision-driven, not testing driven @dbinetti
  • 82. Leading & Managing Lean • People don’t rally around experiments - “It’s the vision stupid”
  • 83. Leading & Managing Lean • People don’t rally around experiments - “It’s the vision stupid”
  • 84. Leading & Managing Lean • People don’t rally around experiments - “It’s the vision stupid” • Everything starts with vision then rigorously test against actual results
  • 85. Leading & Managing Lean • People don’t rally around experiments - “It’s the vision stupid” • Everything starts with vision then rigorously test against actual results
  • 86. Leading & Managing Lean • People don’t rally around experiments - “It’s the vision stupid” • Everything starts with vision then rigorously test against actual results • Optimize Total Time through the loop
  • 87. Leading & Managing Lean • People don’t rally around experiments - “It’s the vision stupid” • Everything starts with vision then rigorously test against actual results • Optimize Total Time through the loop
  • 88. Leading & Managing Lean • People don’t rally around experiments - “It’s the vision stupid” • Everything starts with vision then rigorously test against actual results • Optimize Total Time through the loop • Traditional management tools are not built for extreme uncertainty
  • 89. Leading & Managing Lean • People don’t rally around experiments - “It’s the vision stupid” • Everything starts with vision then rigorously test against actual results • Optimize Total Time through the loop • Traditional management tools are not built for extreme uncertainty
  • 90. Leading & Managing Lean • People don’t rally around experiments - “It’s the vision stupid” • Everything starts with vision then rigorously test against actual results • Optimize Total Time through the loop • Traditional management tools are not built for extreme uncertainty • Iteration speed is governed by speed of learning not “building”
  • 91. Start with Vision and adjust
  • 92. Unit Economics & Biz model NOT projections
  • 93. Openness NOT command and control
  • 96. Innovation accounting • Establish the Baseline • Build the minimum viable product • Measure how customers behave right now
  • 97. Innovation accounting • Establish the Baseline • Build the minimum viable product • Measure how customers behave right now
  • 98. Innovation accounting • Establish the Baseline • Build the minimum viable product • Measure how customers behave right now • Tune the Engine • Experiment to move metrics from baseline to ideal
  • 99. Innovation accounting • Establish the Baseline • Build the minimum viable product • Measure how customers behave right now • Tune the Engine • Experiment to move metrics from baseline to ideal
  • 100. Innovation accounting • Establish the Baseline • Build the minimum viable product • Measure how customers behave right now • Tune the Engine • Experiment to move metrics from baseline to ideal • Pivot or persevere • When experiments reach diminishing returns some distance from goal
  • 102. In Action - Stanford Lean Launchpad
  • 110. Minimum Viable Product • Minimum set of features needed to learn from earlyvangelists - visionary early customers • Avoid building products that nobody wants • Max learning per $ • Probably much more minimum than you think
  • 111. Minimum Viable Product • Visionary customers can “fill in the gaps” on missing features, if the product solves a real problem • Allows us to achieve a big vision in small increments without going in circles • Requires a commitment to iteration • MVP is only for BIG VISION products; unnecessary for minimal products
  • 113. Minimum Viable Product • Smoke testing with landing pages, adwords
  • 114. Minimum Viable Product • Smoke testing with landing pages, adwords • SEM on $5 per day
  • 115. Minimum Viable Product • Smoke testing with landing pages, adwords • SEM on $5 per day • In-product split testing
  • 116. Minimum Viable Product • Smoke testing with landing pages, adwords • SEM on $5 per day • In-product split testing • Paper prototypes
  • 117. Minimum Viable Product • Smoke testing with landing pages, adwords • SEM on $5 per day • In-product split testing • Paper prototypes • Keynote products
  • 118. Minimum Viable Product • Smoke testing with landing pages, adwords • SEM on $5 per day • In-product split testing • Paper prototypes • Keynote products • Concierge tests
  • 119. Minimum Viable Product • Smoke testing with landing pages, adwords • SEM on $5 per day • In-product split testing • Paper prototypes • Keynote products • Concierge tests • Cohort and Engagement
  • 121. MVP Fears • False negative: “customers would have liked the full product but the MVP sucks, so we abandoned the vision
  • 122. MVP Fears • False negative: “customers would have liked the full product but the MVP sucks, so we abandoned the vision
  • 123. MVP Fears • False negative: “customers would have liked the full product but the MVP sucks, so we abandoned the vision • Visionary complex “Customers don’t know what they want”
  • 124. MVP Fears • False negative: “customers would have liked the full product but the MVP sucks, so we abandoned the vision • Visionary complex “Customers don’t know what they want”
  • 125. MVP Fears • False negative: “customers would have liked the full product but the MVP sucks, so we abandoned the vision • Visionary complex “Customers don’t know what they want” • Too busy to learn: “it would be faster to just built it right, all this measuring distracts from delighting customers”
  • 127. Lean Startup Principles • Innovation & Entrepreneurship is management
  • 128. Lean Startup Principles • Innovation & Entrepreneurship is management
  • 129. Lean Startup Principles • Innovation & Entrepreneurship is management • Validated Learning
  • 130. Lean Startup Principles • Innovation & Entrepreneurship is management • Validated Learning
  • 131. Lean Startup Principles • Innovation & Entrepreneurship is management • Validated Learning • Build - Measure - Learn
  • 132. Lean Startup Principles • Innovation & Entrepreneurship is management • Validated Learning • Build - Measure - Learn
  • 133. Lean Startup Principles • Innovation & Entrepreneurship is management • Validated Learning • Build - Measure - Learn • Speed through the loop beat quality
  • 134. Lean Startup Principles • Innovation & Entrepreneurship is management • Validated Learning • Build - Measure - Learn • Speed through the loop beat quality
  • 135. Lean Startup Principles • Innovation & Entrepreneurship is management • Validated Learning • Build - Measure - Learn • Speed through the loop beat quality • Innovation Accounting
  • 136. People and Resources Text john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 137. People and Resources • Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad Text john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 138. People and Resources • Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad - Book: 4 Steps to the Epiphany Text john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 139. People and Resources • Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad - Book: 4 Steps to the Epiphany • Eric Ries - www.startuplessonslearned.com Text john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 140. People and Resources • Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad - Book: 4 Steps to the Epiphany • Eric Ries - www.startuplessonslearned.com - Book: The Lean Startup Text john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 141. People and Resources • Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad - Book: 4 Steps to the Epiphany • Eric Ries - www.startuplessonslearned.com - Book: The Lean Startup Text • Patrick Vlaskovits & Brant Cooper - Vlaskovits.com, market-by-numbers.com john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 142. People and Resources • Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad - Book: 4 Steps to the Epiphany • Eric Ries - www.startuplessonslearned.com - Book: The Lean Startup Text • Patrick Vlaskovits & Brant Cooper - Vlaskovits.com, market-by-numbers.com - The Entrepreneurs Guide to Customer Development john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 143. People and Resources • Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad - Book: 4 Steps to the Epiphany • Eric Ries - www.startuplessonslearned.com - Book: The Lean Startup Text • Patrick Vlaskovits & Brant Cooper - Vlaskovits.com, market-by-numbers.com - The Entrepreneurs Guide to Customer Development • Meetup.com, local Lean Startup Circle Meetups - ~20,000 members globally john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 144. People and Resources • Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad - Book: 4 Steps to the Epiphany • Eric Ries - www.startuplessonslearned.com - Book: The Lean Startup Text • Patrick Vlaskovits & Brant Cooper - Vlaskovits.com, market-by-numbers.com - The Entrepreneurs Guide to Customer Development • Meetup.com, local Lean Startup Circle Meetups - ~20,000 members globally http://lean-startup.meetup.com/ john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 145. People and Resources • Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad - Book: 4 Steps to the Epiphany • Eric Ries - www.startuplessonslearned.com - Book: The Lean Startup Text • Patrick Vlaskovits & Brant Cooper - Vlaskovits.com, market-by-numbers.com - The Entrepreneurs Guide to Customer Development • Meetup.com, local Lean Startup Circle Meetups - ~20,000 members globally http://lean-startup.meetup.com/ • Lean Startup Circle online - ~4,000 members with active discussions john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast
  • 146. People and Resources • Steve Blank - www.steveblank.com, includes the Standford Lean Launchpad - Book: 4 Steps to the Epiphany • Eric Ries - www.startuplessonslearned.com - Book: The Lean Startup Text • Patrick Vlaskovits & Brant Cooper - Vlaskovits.com, market-by-numbers.com - The Entrepreneurs Guide to Customer Development • Meetup.com, local Lean Startup Circle Meetups - ~20,000 members globally http://lean-startup.meetup.com/ • Lean Startup Circle online - ~4,000 members with active discussions https://groups.google.com/group/lean-startup-circle john@blueleaf.com - @johnprendergast - About.Me/JohnPrendergast

Notes de l'éditeur

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  12. In particular, eliminate work that doesn’t create value (for Customers)\n\nWhat is the greatest source of waste in a startup? Innovation process or product development?\n\nBuilding something no one wants\n
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  23. Mention the religious wars on lean methodology\n\nThis is about the Meta principles, not a checklist or cookie cutter formula\n
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  28. Ask audience about how many of them are or were entrepreneurs, created new products etc.\n
  29. Ask audience for reasons\n
  30. They had no interest, thought it sucked, it was too expensive etc. etc.\n
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  32. Hold up Kellogg brochure\n
  33. No. So, why is that?\n
  34. The capacity for vision (cough) combined with our bias for action (cough) makes innovators prone to jumping over knowledge gaps and running through indifference without even noticing.\n\nThat gets us in a lot of trouble.\n
  35. The capacity for vision (cough) combined with our bias for action (cough) makes innovators prone to jumping over knowledge gaps and running through indifference without even noticing.\n\nThat gets us in a lot of trouble.\n
  36. A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty\n
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  45. Tell John Boyd’s story of discovering patterns in aerial combat in Vietnam \n
  46. Tell John Boyd’s story of discovering patterns in aerial combat in Vietnam \n
  47. Tell John Boyd’s story of discovering patterns in aerial combat in Vietnam \n
  48. Tell John Boyd’s story of discovering patterns in aerial combat in Vietnam \n
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  51. What is Validated learning?\n
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  61. The premise of the lean startup is simple: if we can reduce the time between these major iterations, we can increase the odds of success.\n
  62. The premise of the lean startup is simple: if we can reduce the time between these major iterations, we can increase the odds of success.\n
  63. The premise of the lean startup is simple: if we can reduce the time between these major iterations, we can increase the odds of success.\n
  64. We knew these ideas were big when we saw this\n
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  71. If we can reduce the time between pivots\n \n We can increase the odds of success\n \n Before we run out of money, support etc.\n \n Runway = # of iterations remaining\n
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  102. Talk through stories and examples of using these tactics\n
  103. Talk through stories and examples of using these tactics\n
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  105. Talk through stories and examples of using these tactics\n
  106. Talk through stories and examples of using these tactics\n
  107. Talk through stories and examples of using these tactics\n
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