Lean startup


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Lean startup

  1. 1. Lean Startup Benjamin Mitchellhttp://twitter.com/benjaminm http://blog.benjaminm.net benjaminm@benjaminm.net
  2. 2. What is a startup? A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertaintyIndependent of company size, sector, economy or industry
  4. 4. BUT 9/10 Startups Fail jeffc5000
  5. 5. Achieving FailureIf nobody wants what we build, does it matter if it’sOn time?On budget?High quality?Beautifully designed?Achieving failure = successfully executing a bad plan
  6. 6. 66% of Successful Startups Changed Plans annethelibrarian
  8. 8. Lean Startup is a systematic process foriterating from Plan A to a plan that works before running out of resources
  9. 9. Thought Experiment:BottleneckAt the end of a project orproduct ..If you had to throweverything away andbuild it againHow long would it take?
  10. 10. Learning is the bottleneck
  11. 11. What is learning?Learning = The detection and correction of errorError = What you expected – what occurredLearning occurs when an action:• Produces a desired result for the first time• A previous error is corrected
  12. 12. Single & Double Loop Learning @benjaminm
  13. 13. What happened?Ask me questions to see ifyou can work out whathappened in the followingscenarioI will answer only yes orno
  14. 14. There is a cabin in the woodsThere are lots of dead bodies
  15. 15. Minimize TOTAL time through the loop
  16. 16. US: F-86 Technically Inferior Destinys Agent
  17. 17. Focus on Verifiable Hypothesis
  18. 18. There’s much more…Learn Faster Build FasterSplit Tests Unit TestsCustomer Interviews Usability TestsCustomer Development Continuous IntegrationFive Whys Root Cause Incremental DeploymentAnalysis Free & Open-SourceCustomer Advisory Board ComponentsFalsifiable Hypotheses Cloud ComputingProduct Owner Cluster Immune SystemAccountability Measure Faster Measure Faster Just-in-time ScalabilityCustomer Archetypes Refactoring Split Tests Funnel AnalysisCross-functional Teams Developer Sandbox Clear Product Owner Cohort AnalysisSemi-autonomous Teams Minimum Viable Product Continuous Deployment Net Promoter ScoreSmoke Tests Usability Tests Search Engine Marketing Real-time Monitoring Real-Time Alerting Customer Liaison Predictive Monitoring
  19. 19. 3 Stages of a StartupSource: Ash Muarya – Running Lean
  21. 21. Product/Market Fit the Agile way: Blame the Product OwnerXP’s On-site Customer orScrum’s Product OwnerTake responsibility forunderstanding &delivering what customerswantYou can’t blame me – Iwas too busy typing!
  22. 22. Instead of “we can buildit” we start with:• Do customers have this problem?• If we solved it, would they pay for it?• Would they buy it?Then:• Can we build it?
  23. 23. Innovation Accounting The Three Learning Milestones1. Establish the baseline- Build a Minimum Viable Product (MVP)- Measure how customers behave right now2. Tune the engine- Experiment to see if we can improve metrics from the baseline towards the ideal3. Pivot or Persevere- When experiments reach diminishing returns, it’s time to pivot
  24. 24. Source: Ash Muarya – Running Lean
  25. 25. Iterating vs Incrementinghttp://www.agileproductdesign.com/blog/dont_know_what_i_want.html
  26. 26. Actionable Metrics• Actionable – Avoid vanity metrics – Was this change an improvement? What caused it?• Accessible – Easily accessible and understandable – Focus on customers and their actions not piles of data• Auditable – Data must be credible to those who use it – People will challenge the data if it challenges them
  27. 27. Metrics Are People Too
  28. 28. Focus on what people do, not what they say
  29. 29. Pirate Startup Metrics (AARRR) Acquisition How can users find you? Activation Do users have a great experience? Retention Do users come back? Revenue How do you make money? Referral Do users tell others
  30. 30. Cohort Analysis Weekly Cohort (By Join Date)Source: Ash Muarya – Running Lean
  31. 31. Wasted Time SourcesWasted Time Area Sum of Team Time WastedInternal 457 Desktop PC 98 Development Technology 82 Builds 72 Process Issue 51 Technical Debt 36 Merging 25 Team Technology 15 Specifications 15External Team 420 Pricing Engine A 145 Document Generation Team 81 Pricing Engine B 41 Single Sign On 39 Pricing Engine C 33 Oracle Database 24 XML Data Architecture 17 Pricing Engine D 10Common Environment 56 Jira 18 Wiki 16Grand Total 935
  32. 32. Pivots• A pivot is a change designed to test a new fundamental hypothesis about the product, business model or engine of growth• A startup’s runway is the number of pivots it can still make• Pivots take courage
  33. 33. The Lean Startup• Lean Startup is a systematic process for iterating from Plan A to a plan that works before running out of resources• Stop wasting people’s time
  34. 34. Any Questions?Feel free to connect:Read my blog http://blog.benjaminm.netFollow me on twitter http://twitter.com/benjaminmE-mail me benjaminm@benjaminm.net
  35. 35. • http://www.flickr.com/photos/atomicf4i/2541443089/• http://www.flickr.com/photos/perspective/68242009/• http://www.flickr.com/photos/messagingrobot/556165 3945/• http://www.flickr.com/photos/peter_roberts/4457615 801/• http://www.flickr.com/photos/icatus/2992269179/• http://www.flickr.com/photos/bjora857/393147861/• http://www.flickr.com/photos/lorenjavier/5998488533 /• http://www.flickr.com/photos/swisscan/1850486419/