Lean startup

Lean Startup Benjamin Mitchellhttp://twitter.com/benjaminm http://blog.benjaminm.net benjaminm@benjaminm.net

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

STARTUP =EXPERIMENT

BUT 9/10 Startups Fail jeffc5000

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

66% of Successful Startups Changed Plans annethelibrarian

STOPWASTINGPEOPLE’STIME

Lean Startup is a systematic process foriterating from Plan A to a plan that works before running out of resources

Thought Experiment:BottleneckAt the end of a project orproduct ..If you had to throweverything away andbuild it againHow long would it take?

Learning is the bottleneck

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

Single & Double Loop Learning @benjaminm

What happened?Ask me questions to see ifyou can work out whathappened in the followingscenarioI will answer only yes orno

There is a cabin in the woodsThere are lots of dead bodies

Minimize TOTAL time through the loop

US: F-86 Technically Inferior Destinys Agent

Focus on Verifiable Hypothesis

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

3 Stages of a StartupSource: Ash Muarya – Running Lean

INSIDE THE BUILDING THERE AREONLY OPINIONS

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

Source: Ash Muarya – Running Lean

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

Metrics Are People Too

Focus on what people do, not what they say

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

Cohort Analysis Weekly Cohort (By Join Date)Source: Ash Muarya – Running Lean

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 benjaminm@benjaminm.net

• 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/

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Lean startup

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Lean startup

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