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
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!
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?
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
Iterating vs Incrementinghttp://www.agileproductdesign.com/blog/dont_know_what_i_want.html
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
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
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
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
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
Any Questions?Feel free to connect:Read my blog http://blog.benjaminm.netFollow me on twitter http://twitter.com/benjaminmE-mail me firstname.lastname@example.org