Lean Startup for Smart Entrepreneurs

@agilesenseiwww.agilesensei.com written, illustrated and performed by Claudio Perrone

Most startups fail will Yours?

If we keep acting like most entrepreneurs…

… less than 3 people in this room willCreate successful companies*“(*) The only statistics you can trust are those you falsified yourself --(often falsely attributed to) Winston Churchill

July 2009

“July 2009 was the wettest Julyon record in Ireland”

“that month, a new life rocked my world…”

“that month, I left an exceptional companyI helped create from scratch”

“From the very beginning, I had embracedAgile development to grow aworld-class software organization”

We continuously improved ourdevelopment processes…

We crafted opinionated software…“The best softwarehas a vision.The best softwaretakes sides.…Decide whatyour vision is and run with it.”-- 37 signals

We won awardsand respect…

we could almosttouch the sky…

Almost

“July 2009 was the wettest Julyon record in Ireland”

I’ll remember it as the monthmatteo was born

But it is also the monthI had to let go of a dream

… so I became a Lean & Agile consultant!

On my first mission, a cio asked me aquestion that haunts me to this day…

“If you were so smart, why did you fail?”

I became increasingly intrigued by the riseof Lean and its influence in the agile circles

Lean is heavily inspired by Toyota’sbreakthroughs in “operational excellence”

Using Lean and agile, I brought performanceimprovements to many clients around Europe

But that oldquestion still remainedunanswered…

… Until one day

I entered a new world

... A world that recognized the extraordinarychallenges I once faced “ A startup is a human institution designed to create new products and services under conditions of extreme uncertainty. --- Eric Ries

... A world that showed how Searching fora business model is different fromexecuting a validated one “ A startup is a temporary organization used to search for a repeatable and scalable business model. --- Steve Blank

It gave me a path to create a sustainablebusiness around products that customers want Customer development data, PROBLEM/ PRODUCT/ SCALE feedback, MARKET insights SOLUTION FIT FIT Customer Company Customer Customer stop creation stop building discovery stop validation Agile development Pivot hypothesis, experiments, insights Problem: Unknown solution: Unknown

... A path characterized by frequent scientificexperiments… Learn Build (establish an hypothesis) (Build an experiment to test that hypothesis) Measure (Determine a quantitative or qualitative method to evaluate that hypothesis.)

… To accelerate the rate of learning… Learn idea Build (whether to pivot or persevere) (Turn ideas into product) (often a series of MVPs) data Product Measure (How customers respond)

… And measure real progress towards success Acquisition How do users find you? Activation Do users have a great first experience? retention Do users come back? revenue How do you make money? referral Do user tell others? ( see Dave McClure “Pirate” metrics) Cohort analysis

I document my business model(s) explicitly Solution Top 3 Unique Unfair Customer Problems Value Advantage Segments Proposition Key metrics Channels Existing Early alternatives adopters Cost structure Revenue streams www.leancanvas.com

my vision is built on opinions untestedassumptions

… which I systematically validate withexperiments…

… that force me to “get out of the building”

…and gather data to verify whether myactions affect customer behavior Hypotheses/ IN PROGRESS GOALs DONE VALIDATED LEARNING BACKLOG SELECTED DESIGN/BUILD PARTIAL VALIDATE FULL VERIFY EXPERIMENTS ROLLOUT QUALITATIVELY ROLLOUT QUANTITATIVELY DONE DONE

I validate my solutions, OFTEN with low fidelity MVPs

… and Activate enthusiastic earlyvangelists with aglimpse of a future that will come

What willyour future look like?

“ Smart entrepreneurs don’t dream of success. They create the conditions to inevitably converge to it. --- Me (1967 - )

Thank you! Claudio Perrone claudio@agilesensei.com www.agilesensei.com www.twi:er.com/agilesensei

Lean Startup for Smart Entrepreneurs

by Claudio Perrone on Jun 27, 2012

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