Agile for Startups

Startups?

Version 0 – 1.0 (Creation)
Version 1.0 – 1.1 (Improvement)
Version 1.1 – 2.0 (Reinvention)

Startups fail due to lack of customers
Period.

Product Development Model
Launch
Alpha/Beta
Test
Product
Development
Concept /
Business Plan

Requirements
Specification
Design
Problem: Known
Solution: Known
Implementation
Verification
Maintenance

Product Owner
In-house Customer
Problem: Known
Solution: Unknown

“A few months after this first launch, the project's customer representative — a key role in the Extreme Programming methodology — quit due to burnout and stress, and couldn't be replaced.”

?
?
?
?
?
?
Problem: Unknown
Solution: Unknown

Startups are Tightly Coupled
Business, Marketing, Sales, Engineering, Testing, Operations, Support

?
Problem: Unknown
Solution: Unknown

Customer Development!
Problem: Unknown
Solution: Unknown

Customer
Discovery
Customer
Validation
Customer
Creation
Scaling
Company
stop
stop
stop
stop
Data
Feedback
Insights
Hypothesis
Experiments
Insights
Problem: Unknown
Solution: Unknown

Customer Development
Started with a Question:
If startups fail due to lack of customers, not product development failure then why do we have evolved processes for product development and nothing for customer development

Product Development Model
Launch
Alpha/Beta
Test
Product
Development
Concept /
Business Plan

Resulted in the following Hypotheses:
Dollhouse Fallacy, Not small big companies
Iteration not Execution
Entrepreneurs and VC operate on guesses
Facts are outside the building

Iteration vs. Execution
stop
stop
stop
stop
Customer
Creation
Scaling
Company
Customer
Discovery
Customer
Validation
Search for a business
Grow the business
Product/Market Fit

Customer Discovery
Verify
Test Product
Hypothesis
Test
Problem Hypothesis
State your Hypothesis
Product Features
Product Benefits
Key Assumptions
Deployment Model
Friendly First Contacts
“Problem” Presentation
Customer Understanding
Market Knowledge
Synch with Dev
Product Presentation
More Customer Visits
Advisory Board
Summarize Problem
Summarize Product
Verify Business Model
Go/No Go?
Fail Fast!
Take what you learned and iterate on the idea

Customer Validation
Verify
Develop Positioning
Sell to Earlyvangelist
Preparing to Sell
Articulate the value proposition
Create sales tools
Build Sales roadmap
ID the “closer”
Formalize Advisory Board
Contact Earlyvangelists
Sell them!
Refine sales process
Selling is truth
Gather data
Cycle times
Web traffic
Decision maker
Org charts
Product
Company
Present to Influencers
Present to Analysts
Back to Customer Discovery

Available on CafePress or Amazon

The Lean Startup
Eric Ries
http://www.startuplessonslearned.com/

Lean Startup
Commodity Technology Stack
Customer
Development
Agile
Development

Minimize the TOTAL time through the loop
IDEAS
Learn
Build
CODE
DATA
Measure

Speed Wins

Minimum Viable Product (MVP)
The smallest feature set that does the job, barely
Have to be willing to look bad!
The anti-launch, no press mentality
Start the validated learning process

Continuous Deployment
Ship Multiple Times per Day
Cluster Immune System
You will screw up, but you will also recover
Small batch sizes, minimizes waste!
It matters that you decode the problem before you scale the solution

Pivot
At each iteration through the loop…
Based on what you’ve built, what data do you have, what did you learn?
Where should we go next?
Staying grounded in what you learn
Most successful startups pivot

PayPal – CyberCash for PDA’s…Online Payments for eBay
Microsoft - BASIC Interpreter…Global OS Domination
Flickr – Online Games…Photo sharing

LeanStartUp Practice is Evolving
IDEAS
Learn
Build
Learn Faster
Build Faster
5 Whys – Root Cause
Customer Advisory Board
Falsifiable Hypotheses
Product Owner Accountability
Customer Personas
Cross Functional Teams
Unit Tests
Usability Tests
Continuous Integration
Incremental Deployment
Open Source Tools
Cloud Computing
Cluster Immune System
Just-In-Time Scaling
Refactoring
MVP
CODE
DATA
Measure
Measure Faster
Funnel Analysis
Cohort Analysis
Net Promoter Score
Search Engine Marketing
Split Tests
Web Analytics
Heat Maps
Voice of Customer

Follow These People
Steve Blank, Haas School, Stanford
http://steveblank.com/
Lean Startups
Eric Ries
http://startuplessonslearned.com/
AARRR!
Dave McClure
http://500hats.com/
@sgblank
@ericries
@davemcclure

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Agile for Startups

by Jim Murphy

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