What is "Lean"?● Takes its name from "Lean Manufacturing"● Toyota Production System (TPS)● Preserving value with less work● Value is defined as any action or process that a customer would be willing to pay for
Whats a "Startup"?A human institution designed to create newproducts and services under conditions ofextreme uncertainty.
The five principles:1. Entrepreneurs are everywhere2. Entrepreneurship is management3. Validated learning4. Innovation accounting5. Build-Measure-Learn
Entrepreneurs are everywhere● You dont have to work in a garage to be in a startup● All industries● All sectors
Entrepreneurship is management● A startup is an institution, not just a product● Requires management● A new kind of management specifically geared to its context of extreme uncertainty
Validated learning● Startups exist not to make stuff, make money, or serve customers● They exist to learn how to build a sustainable business● This learning can be validated scientifically, by running experiments that allow us to test each element of our vision
Innovation accounting● Improve entrepreneurial outcomes● Hold entrepreneurs accountable● Focus on the boring stuff: ○ How to measure progress ○ How to setup milestones ○ How to prioritize work● This requires a new kind of accounting specific to startups
Build-Measure-Learn● The fundamental activity of a startup is to: ○ Turn ideas into products ○ Measure how customers respond ○ Learn whether to pivot or persevere● All successful startup processes should be geared to accelerate that feedback loop
Experiment #1: Learnings● Recruiters didnt see the value in the list● Felt thats what their job was● "Why would we just pay for a list"● Felt threatened● (and so they should - after all - we are trying to disrupt them!)
Experiment #2: Learnings● Dont offer a flat list● Offer a service where users create lists from people in their own networks (Facebook and LinkedIn)● Well be growing the network of GetListed users without having to do the initial service● Requires strong viral coefficient (V-Co) to maintain sustainable growth
Experiment #3: Hypothesis1. A user creates a list2. Listees are notified via Facebook wall post or LinkedIn message that they have been added to a list3. Listees sign up to GetListed and become users4. Rinse and Repeat5. V-Co of 1+ will be achieved
Experiment #3: MethodBuild and Measure the following:1. Spread of the network New members / lists created2. Conversion New members signed up / new members added3. Cycle Signups who created a list4. Returning users Existing signed in users / existing base users
Next steps...Achieve a V-Co of 1+ by connecting via email andexperimenting with different messaging.● Hey Bosco - Michael just joined GetListed - why not add him to a list?● Hey Bosco - Michael added you to X list - why not list him back?● Hey Bosco - Phil added Michael to X list - why dont you list him?