Grow Your Business Using Lean Startup Principles

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Thanks everyone who attended this PMI Silver Spring Chapter meeting. Feel free to favorite this if you like it.

Note: Be sure to look for Easter eggs for insider details.

Abstract
Since Eric Ries published his book “The Lean Startup” in 2011, many companies have embraced this method to create new businesses and products. Hector Del Castillo will discuss how you can apply these principles to take a structured approach to create a business and build products to accelerate business growth. Hector will share a few case studies of successes and failures, discuss what he’s observed that’s new and different to accelerate business growth by focusing on creating a sustainable competitive advantage. He will focus on the importance of managing key resources, key activities and tasks needed to implement strategic objectives in a lean startup organization.

This discussion will focus on how lean startup methodology can help entrepreneurs, advisers and investors launch a new company and accelerate business growth.

About Hector Del Castillo
Hector Del Castillo helps executives, senior managers and entrepreneurs transform ideas into a great business. He also helps founders, entrepreneurs, inventors, makers, investors, business leaders and community leaders connect, share, and learn from each other to create products customers love. Connect with Hector to learn more about how you can get involved.

Hector is a Certified Product Manager (CPM®) and Certified Product Marketing Manager (CPMM®). He earned M.S. degrees in Electrical Engineering from the University of California at Santa Barbara and the University of Texas at El Paso and a Bachelor’s Degree in Electrical Engineering from the University of Texas at El Paso.

Consultation Appointment
Need help transforming your product idea into a great business?
Set up a free initial 30-minute consultation appointment and let me know how I can help you grow your business, resolve a business challenge, or accelerate your career growth. Learn more at http://bit.ly/1heVQiK.

You can connect with me at http://linkd.in/hdelcastillo. I look forward to hearing from you.

Regards,
Hector Del Castillo
Connect: http://linkd.in/hdelcastillo
Follow: @hmdelcastillo

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Grow Your Business Using Lean Startup Principles

  1. 1. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Hector Del Castillo linkd.in/hdelcastillo
  2. 2. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Follow: @AIPMM @hmdelcastillo Use: #LeanStartup Tweet!
  3. 3. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Participate and Win! Must be present to win! One lucky winner will get a free copy of the Guide to the Product Management and Marketing Body of Knowledge (ProdBOK®)
  4. 4. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo What We Will Discuss • Introduction • Benefits of Lean Startup • Lean Startup Methodology • What Lean Startups Do Differently • Case studies • Q & A
  5. 5. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Why adopt Lean Startup?
  6. 6. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Nearly 75% of venture- supported startups fail. - Shikhar Ghosh Source: “The Venture Capital Secret: 3 Out of 4 Start-Ups Fail,” Deborah Gage, Wall Street Journal, Sep 20, 2012
  7. 7. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Provides a scientific approach to creating and managing successful startups.
  8. 8. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Company Dropbox, Inc. Initial release September 2008 Stable release 2.10.27 (July 31, 2014; 11 days ago [1] ) [±] Preview release 2.11.6 (August 6, 2014; 5 days ago [1] ) [±] Development status Active Written in Python [2] , Go [3] Operating system Microsoft Windows, Mac OS X, Linux, iOS, Android,Symbian, BlackBerry OS, MeeGo Haarmattan Type Online backup service License Proprietary software (Windows & Mac clients and Linux Dropbox daemon), CombinedGPLv2/Proprietary [4] (Linux Nautilus) Alexa rank 112 (June 2014) [5] Website dropbox.com Source: Wikipedia. Dropbox @ Startup Lessons Learned Conference 2010
  9. 9. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo What’s a Startup?
  10. 10. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo “A startup is an organization formed to search for a repeatable and scalable business model.” - Steve Blank
  11. 11. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo “An organization dedicated to creating something new under conditions of extreme uncertainty.” - Eric Ries
  12. 12. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Howwellcanyoupredictresults? + Complexity Situation has many interconnected parts. Some information is available or can be predicted, but the volume can be overwhelming to process. Volatility Situation is unexpected or unstable and may be of unknown duration, but it’s not necessarily hard to understand. Information is often readily available. - Ambiguity Causal relationships are completely unclear. No precedents exist; you face “unknown unknowns.” Uncertainty Despite a lack of some information, the situation’s cause and effect are known. Change is possible but not a given. - + How much do you know about the problem? Source: Nathan Bennett and G. James Lemoine “What VUCA Really Means For You,” Harvard Business Review, Jan 2014
  13. 13. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo What’s Lean Startup?
  14. 14. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo A method for building new businesses and launching new products.
  15. 15. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Changes Emphasis • Experimentation • Customer Feedback • Iterative Design • Elaborate Planning • Intuition • Waterfall Design Lean Startup Traditional
  16. 16. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Five Key Principles 1. Entrepreneurs are everywhere. 2. Entrepreneurship is management. 3. Practice validated learning. 4. Set up Build-Measure-Learn process. 5. Use innovation accounting system. Source: Ries, Eric (2011-09-13). “The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses,” Crown Publishing Group.
  17. 17. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Vision 1. Start 2. Define 3. Learn 4. Experiment Steer 5. Leap 6. Test 7. Measure 8. Pivot (or Persevere) Accelerate 9. Batch 10. Grow 11. Adapt 12. Innovate Source: Ries, Eric (2011-09-13). “The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses,” Crown Publishing Group.
  18. 18. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Vision Product Strategy Optimization Pivot Change Source: Ries, Eric (2011-09-13). “The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses,” Crown Publishing Group.
  19. 19. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo Pivot = A change in strategy without a change in vision
  20. 20. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo Company Intuit Canada Type Unlimited liability corporation Industry Computer software Founded Edmonton (1992) Founder(s) Bruce Johnson, Chad Frederick Headquarters Mississauga, Ontario, Canada Products Personal finance, accounting and tax return software Parent Intuit Source: Wikipedia.
  21. 21. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo What Lean Startups Do Differently
  22. 22. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo 1. Sketch Their Hypothesis Source: Blank, Steve, “Why The Lean Startup Changes Everything,” Harvard Business Review, May 2013.
  23. 23. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo 2. Seek Customer Feedback Source: Blank, Steve, “Why The Lean Startup Changes Everything,” Harvard Business Review, May 2013.
  24. 24. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo “We must learn what customers really want, not what they say they want or what we think they should want.” - Eric Ries
  25. 25. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo 3. Develop Quickly and Responsively Source: Blank, Steve, “Why The Lean Startup Changes Everything,” Harvard Business Review, May 2013.
  26. 26. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo 4. Customers Decide What’s MVP Minimum Viable Product?Target Customer Core Actual Whole
  27. 27. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo 5. Use Metrics To Pivot
  28. 28. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo Market Customer Business Organization Product Source: ProdBOK® Knowledge Areas Customer /Market Development Product Development/Improvement
  29. 29. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo Company Evernote Corporation Stable release 5.5.2.4187 / 24 July 2014; 18 days ago Development status Active Operating system Microsoft Windows, OS X, Chrome OS, Android, BlackBerry OS, BlackBerry Tablet OS, iOS, webOS, Windows Mobile, Windows Phone Type Notetaking software License Freemium Alexa rank 468 (June 2014) [1] Website evernote.com Source: Wikipedia.
  30. 30. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo Warnings • A business model is not a replacement for a business plan • Understand the whole product not just features • Beware of burning out your product team seeking to achieve MVP too quickly • Don’t skimp on product architecture • Ensure your exit strategy rewards executives, managers, and collaborators who helped your company succeed
  31. 31. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Key Takeaways • Provides a scientific approach1 • Adopt a learning process2 • Emphasizes process adoption3 • Highlights customer feedback4 • Focus on responsive development5 • Use metrics to pivot6 • Allows a business to quickly scale7
  32. 32. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Poll
  33. 33. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Hector Del Castillo • Senior consultant with over 15 years of experience transforming products to wealth for technology companies • AIPMM Body of Knowledge (ProdBOK®) Contributor • Established companies – Jet Propulsion Laboratory, Lucent Technologies, MEI Technologies • Small companies and startups – Nextone Communications, Smith Micro Software • Launched 30+ Products for global deployment – HW/SW, Telecom, Enterprise Mobility, Information Security Services, Professional Development • Certified PMP®, CPM® and CPMM® • University of California at Santa Barbara, MS EE • University of Texas at El Paso, MS EE, BS EE 36
  34. 34. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Q & A Hector Del Castillo, CPM, CPMM Product Innovation Consultant linkd.in/hdelcastillo @hmdelcastillo hmdelcastillo@gmail.com
  35. 35. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Need Assistance? Need help transforming your product idea into a great business? Set up a free initial 30-minute consultation appointment and let me know how I can help you. Learn more at: http://bit.ly/1heVQiK
  36. 36. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Upcoming Events Project Management Day of Service, Jan 19, 2015 PMI is serving those who serve others. We are seeking passionate leaders to plan and coordinate a community outreach event of unprecedented scale to benefit charities and nonprofit organizations working to improve society. Don’t miss this chance to serve your community, interact with like-minded PMs, sharpen your leadership skills, and earn PDUs; apply now! Learn more here: http://bit.ly/pmdos15. 2014 Project Management Symposium, Sep 26th This forum is focused on developing skills for project managers through professional development. You can earn up to 7 PDUs throughout the day. It is also an opportunity for employers to meet experienced project managers seeking new career opportunities, and matching interests and expertise to their needs. Learn more here: http://bit.ly/1q2gwJG. ProductCamp DC, Oct 11th This is a user-driven, collaborative event for product leaders that are passionate about creating great products customers love. Admission is free, but you must RSVP. Learn more here: http://productcampdc.org/. Interested in increasing your brand awareness? Interested in reaching a targeted audience? Contact me at hmdelcastillo@gmail.com.
  37. 37. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Upcoming Learning Opportunity Oct 30-31, 2014 – Bethesda, MD Course Preview Learn more here: http://bit.ly/CILCourse. Interested in attending this course at a convenient location near you? Contact us.
  38. 38. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Upcoming Courses Certified Product Manager® Sep 8-9, 2014 – Boston Metro Area Dec 8-9, 2014 – DC Metro Area Certified Product Marketing Manager® Sep 10-11, 2014 – Boston Metro Area Dec 10-11, 2014 – DC Metro Area Click on the dates above for more information. If you have a team of 10 or more that you want to certify, contact us.
  39. 39. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo Please Join Us Again! Meetup: Building A Startup Ecosystem For Economic Growth Aug 18th Meetup: DC Lean Startup Mentor Panel (Braintrust) Aug 20th Webcast: Transform Your Career With An AIPMM Certification Aug 21st AIPMM Webinar Series: http://aipmm.com/aipmm_webinars Global Product Management Talk http://www.blogtalkradio.com/prodmgmttalk Call For Speakers: http://www.boldpm.com/call_for_speakers Topic Suggestions: support@aipmm.com Announcements: http://www.aipmm.com/subscribe LinkedIn: http://www.linkedin.com/company/aipmm Membership: http://www.aipmm.com/join.php Certification: http://aipmm.com/html/certification/

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