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Lean Startup in the Enterprise

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David Bland
David Bland

David J. Bland discusses what lean startup in the enterprise is, how it works, and how agile principles and practices can help you quickly test and validate your hypotheses and gather customer feedback.

BusinessTechnology
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Lean Startup in the Enterprise © 2012 BigVisible Solutions
David J Bland Agile / Lean / XP / Kanban Startups & Enterprises eCommerce to Counter Terrorism © 2012 BigVisible Solutions 2
Alex Osterwalder Eric Ries Steve Blank Dave McClure © 2012 BigVisible Solutions 3
S&P 500 companies now the shortest life span we’ve ever seen in recorded history. © 2012 BigVisible Solutions 4
The Lean Startup provides a scientific approach to creating and managing startups and get a desired product to customers’ hands faster. -Eric Ries © 2012 BigVisible Solutions 5
A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty. -Eric Ries © 2012 BigVisible Solutions 6
Problem Solution Process Waterfall or Known Known Agile Known Unknown Agile Unknown Unknown Lean Startup © 2012 BigVisible Solutions 7
We are experiencing an evolutionary leadership mismatch. © 2012 BigVisible Solutions 8
Problem Solution Process Unknown Unknown Lean Startup Leaders typically are not promoted if they’ve repeatedly stated that they do not know the problem or solution © 2012 BigVisible Solutions 9
need more most leaders leaders here complex complicated (guidelines) (good practice) chaos simple (principles) (best practice) maybe even here Source: Adapted from Cynefin & Leadership Agility © 2012 BigVisible Solutions 10
complex complicated (guidelines) (good practice) Lean Startup chaos simple (principles) (best practice) Source: Adapted from Cynefin & Leadership Agility © 2012 BigVisible Solutions 11
We are experiencing an organizational structure mismatch. © 2012 BigVisible Solutions 12
We’ve structured our organizations based on the Industrial Era: - 1 Business Model - Scaling - Predictability - Execution - Organized by Function © 2012 BigVisible Solutions 13
Intrapreneurs! Entrepreneurs are everywhere. © 2012 BigVisible Solutions 14
1982!!! 1976!!! © 2012 BigVisible Solutions 15
… there is hope. © 2012 BigVisible Solutions 16
Experiment with product & process © 2012 BigVisible Solutions 17
Sustaining Disruptive Innovation Innovation (kanban) (scrum) (lean startup) Source: Adapted from Clayton Christensen © 2012 BigVisible Solutions 18
Don’t release it to everyone all at once. © 2012 BigVisible Solutions 19
Target specific cohorts with a/b testing. © 2012 BigVisible Solutions 20
Decouple from your existing brand. © 2012 BigVisible Solutions 21
If you experiment in code, come back to: a. clean it up b. iterate c. productize d. refactor © 2012 BigVisible Solutions 22
Right Fidelity here is my paper prototype! © 2012 BigVisible Solutions 23
Wrong Fidelity here is my paper prototype… © 2012 BigVisible Solutions 24
Experiment to align business & product. © 2012 BigVisible Solutions 25
Source: Eric Ries The Lean Startup © 2012 BigVisible Solutions 26
You cannot learn if your feedback loops are broken. © 2012 BigVisible Solutions 27
© 2012 BigVisible Solutions 28
© 2012 BigVisible Solutions 29
Just because you can measure it, does not mean you should measure it. © 2012 BigVisible Solutions 30
Which of these metrics provide the most insight into a product? a. 1,000,000 unregistered unique visits b. 500,000 visitors who view 2+ pages c. 250,000 visitors who engaged for 10+ seconds d. 20000 users with registered email address e. 1000 monthly subscribers Source: Adapted from Dave McClure © 2012 BigVisible Solutions 31
Acquisition +15% +11% +8% Activation +5% +7% +10% Retention +1% +3% +5% Referral +0% +1% +3% Revenue +0% +1% +5% Source: Dave McClure Pirate Metrics © 2012 BigVisible Solutions 32
Great Product + Wrong Business Model Failed Organization © 2012 BigVisible Solutions 33
© 2012 BigVisible Solutions 34
Business Models > Business Plans Business Models Canvas Source: Adapted from Alexander Osterwalder © 2012 BigVisible Solutions 35
Experiment to align product & customer. © 2012 BigVisible Solutions 36
Source: Steve Blank © 2012 BigVisible Solutions 37
That’s all good in theory but… “Your version of Enterprise and my version of Enterprise are very different.” © 2012 BigVisible Solutions 38
That’s all good in theory but… “I need to apply this to an internal project with no external customers!” © 2012 BigVisible Solutions 39
That’s all good in theory but… “<insert your reason here>” © 2012 BigVisible Solutions 40
Problem Solution Process Waterfall or Known Known Agile Known Unknown Agile Unknown Unknown Lean Startup © 2012 BigVisible Solutions 41
Do you have unknown / unknown’s in your enterprise? © 2012 BigVisible Solutions 42
Start small. © 2012 BigVisible Solutions 43
If you have internal users, then perform customer discovery & interview them. © 2012 BigVisible Solutions 44
They are users who impact business metrics. Finance Manager Source: Dave Gray “Empathy Map” © 2012 BigVisible Solutions 45
Start small. © 2012 BigVisible Solutions 46
If you have User Stories, add a Hypothesis that states the expected outcome on a specific metric. © 2012 BigVisible Solutions 47
Feed the learning back into the product backlog… © 2012 BigVisible Solutions 48
Start small. © 2012 BigVisible Solutions 49
If you have a Kanban Board, add a Validate Column to the very right of it. © 2012 BigVisible Solutions 50
Teams should have a healthy skepticism of the why of the work you are doing. © 2012 BigVisible Solutions 51
If you cannot articulate the expected outcome, then why should the team build it? © 2012 BigVisible Solutions 52
It’s working if you hear: “How are we going to measure that?” © 2012 BigVisible Solutions 53
It’s working if you hear: “We cannot wait that long to learn!” © 2012 BigVisible Solutions 54
Where are the unknown / unknown’s in your enterprise? © 2012 BigVisible Solutions 55
Questions? © 2012 BigVisible Solutions 56
© 2012 BigVisible Solutions 57
David J Bland Agile Consultant [m]: +1 703 945 0700 [ e ]: dbland@bigvisible.com [ u ]: www.bigvisible.com [ t ]: @davidjbland © 2012 BigVisible Solutions 58

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Lean Startup in the Enterprise

  • 1. Lean Startup in the Enterprise © 2012 BigVisible Solutions
  • 2. David J Bland Agile / Lean / XP / Kanban Startups & Enterprises eCommerce to Counter Terrorism © 2012 BigVisible Solutions 2
  • 3. Alex Osterwalder Eric Ries Steve Blank Dave McClure © 2012 BigVisible Solutions 3
  • 4. S&P 500 companies now the shortest life span we’ve ever seen in recorded history. © 2012 BigVisible Solutions 4
  • 5. The Lean Startup provides a scientific approach to creating and managing startups and get a desired product to customers’ hands faster. -Eric Ries © 2012 BigVisible Solutions 5
  • 6. A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty. -Eric Ries © 2012 BigVisible Solutions 6
  • 7. Problem Solution Process Waterfall or Known Known Agile Known Unknown Agile Unknown Unknown Lean Startup © 2012 BigVisible Solutions 7
  • 8. We are experiencing an evolutionary leadership mismatch. © 2012 BigVisible Solutions 8
  • 9. Problem Solution Process Unknown Unknown Lean Startup Leaders typically are not promoted if they’ve repeatedly stated that they do not know the problem or solution © 2012 BigVisible Solutions 9
  • 10. need more most leaders leaders here complex complicated (guidelines) (good practice) chaos simple (principles) (best practice) maybe even here Source: Adapted from Cynefin & Leadership Agility © 2012 BigVisible Solutions 10
  • 11. complex complicated (guidelines) (good practice) Lean Startup chaos simple (principles) (best practice) Source: Adapted from Cynefin & Leadership Agility © 2012 BigVisible Solutions 11
  • 12. We are experiencing an organizational structure mismatch. © 2012 BigVisible Solutions 12
  • 13. We’ve structured our organizations based on the Industrial Era: - 1 Business Model - Scaling - Predictability - Execution - Organized by Function © 2012 BigVisible Solutions 13
  • 14. Intrapreneurs! Entrepreneurs are everywhere. © 2012 BigVisible Solutions 14
  • 15. 1982!!! 1976!!! © 2012 BigVisible Solutions 15
  • 16. … there is hope. © 2012 BigVisible Solutions 16
  • 17. Experiment with product & process © 2012 BigVisible Solutions 17
  • 18. Sustaining Disruptive Innovation Innovation (kanban) (scrum) (lean startup) Source: Adapted from Clayton Christensen © 2012 BigVisible Solutions 18
  • 19. Don’t release it to everyone all at once. © 2012 BigVisible Solutions 19
  • 20. Target specific cohorts with a/b testing. © 2012 BigVisible Solutions 20
  • 21. Decouple from your existing brand. © 2012 BigVisible Solutions 21
  • 22. If you experiment in code, come back to: a. clean it up b. iterate c. productize d. refactor © 2012 BigVisible Solutions 22
  • 23. Right Fidelity here is my paper prototype! © 2012 BigVisible Solutions 23
  • 24. Wrong Fidelity here is my paper prototype… © 2012 BigVisible Solutions 24
  • 25. Experiment to align business & product. © 2012 BigVisible Solutions 25
  • 26. Source: Eric Ries The Lean Startup © 2012 BigVisible Solutions 26
  • 27. You cannot learn if your feedback loops are broken. © 2012 BigVisible Solutions 27
  • 28. © 2012 BigVisible Solutions 28
  • 29. © 2012 BigVisible Solutions 29
  • 30. Just because you can measure it, does not mean you should measure it. © 2012 BigVisible Solutions 30
  • 31. Which of these metrics provide the most insight into a product? a. 1,000,000 unregistered unique visits b. 500,000 visitors who view 2+ pages c. 250,000 visitors who engaged for 10+ seconds d. 20000 users with registered email address e. 1000 monthly subscribers Source: Adapted from Dave McClure © 2012 BigVisible Solutions 31
  • 32. Acquisition +15% +11% +8% Activation +5% +7% +10% Retention +1% +3% +5% Referral +0% +1% +3% Revenue +0% +1% +5% Source: Dave McClure Pirate Metrics © 2012 BigVisible Solutions 32
  • 33. Great Product + Wrong Business Model Failed Organization © 2012 BigVisible Solutions 33
  • 34. © 2012 BigVisible Solutions 34
  • 35. Business Models > Business Plans Business Models Canvas Source: Adapted from Alexander Osterwalder © 2012 BigVisible Solutions 35
  • 36. Experiment to align product & customer. © 2012 BigVisible Solutions 36
  • 37. Source: Steve Blank © 2012 BigVisible Solutions 37
  • 38. That’s all good in theory but… “Your version of Enterprise and my version of Enterprise are very different.” © 2012 BigVisible Solutions 38
  • 39. That’s all good in theory but… “I need to apply this to an internal project with no external customers!” © 2012 BigVisible Solutions 39
  • 40. That’s all good in theory but… “<insert your reason here>” © 2012 BigVisible Solutions 40
  • 41. Problem Solution Process Waterfall or Known Known Agile Known Unknown Agile Unknown Unknown Lean Startup © 2012 BigVisible Solutions 41
  • 42. Do you have unknown / unknown’s in your enterprise? © 2012 BigVisible Solutions 42
  • 43. Start small. © 2012 BigVisible Solutions 43
  • 44. If you have internal users, then perform customer discovery & interview them. © 2012 BigVisible Solutions 44
  • 45. They are users who impact business metrics. Finance Manager Source: Dave Gray “Empathy Map” © 2012 BigVisible Solutions 45
  • 46. Start small. © 2012 BigVisible Solutions 46
  • 47. If you have User Stories, add a Hypothesis that states the expected outcome on a specific metric. © 2012 BigVisible Solutions 47
  • 48. Feed the learning back into the product backlog… © 2012 BigVisible Solutions 48
  • 49. Start small. © 2012 BigVisible Solutions 49
  • 50. If you have a Kanban Board, add a Validate Column to the very right of it. © 2012 BigVisible Solutions 50
  • 51. Teams should have a healthy skepticism of the why of the work you are doing. © 2012 BigVisible Solutions 51
  • 52. If you cannot articulate the expected outcome, then why should the team build it? © 2012 BigVisible Solutions 52
  • 53. It’s working if you hear: “How are we going to measure that?” © 2012 BigVisible Solutions 53
  • 54. It’s working if you hear: “We cannot wait that long to learn!” © 2012 BigVisible Solutions 54
  • 55. Where are the unknown / unknown’s in your enterprise? © 2012 BigVisible Solutions 55
  • 56. Questions? © 2012 BigVisible Solutions 56
  • 57. © 2012 BigVisible Solutions 57
  • 58. David J Bland Agile Consultant [m]: +1 703 945 0700 [ e ]: dbland@bigvisible.com [ u ]: www.bigvisible.com [ t ]: @davidjbland © 2012 BigVisible Solutions 58