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
"Founders that learnare more successful"
"Startups that pivotonce or twice raise 2.5x the money"
ProblemIts hard to determine the best person for a job(both ways).
SolutionIf we could create a list of the best people for agiven profession...● Employers could find the best people● The best people could land jobs perfectly matched to their skills
Smoke test● What can we test before we build anything?● What can we do before we have to build?● How can we find out if anyone finds this list valuable enough to pay for it?
Experiment #1: HypothesisRecruiters will pay for a list of top talent in aprofession.
Experiment #1: MethodCreate a list of 50 fake software engineers andsell it to 25 recruiters for $200 each.
Experiment #1: ResultsNo lists were sold.
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!)
Pivot or Persevere?
Experiment #2: HypothesisIn order to avoid expensive recruiter fees,businesses will pay for a list of top talent in aprofession.
Experiment #2: MethodTake our list of 50 fake software engineers andsell it to 25 businesses for $200 each.
Experiment #2: ResultsNo lists were sold.
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
Pivot or Persevere?
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?