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The Story of theLean LaunchPad  www.steveblank.com      @sgblank
8 Startups in 21 Years
21 Years Executing the Plan
Actual Photo of What Happened      When My Plan Had First Contact With Customers
All I Need is the 5-Year Forecast
VC’s and theSoviet Unionare the onlypeople to require5-Year Plans
Is this all there is?
Business         SchoolsProfessors           Students asConsulting           Management         Existing        Companies©...
Business         Schools                                       Business School CurriculumProfessors           Students asC...
Business         SchoolsProfessors           Students asConsulting           Management         Execute                   ...
Business                                 1911: Taylor The Principles of Scientific Management         Schools             ...
Business         Schools                                                                 Business School CurriculumProfess...
?
It Resulted in a Few Hypotheses•   Startups were not smaller versions of large companies•   Startups were aboutsearch, not...
Startups Are Not Smaller Versions       of Large Companies
Startups Are Not Smaller Versions       of Large Companies    Large Companies Execute     Known Business Models
Startups Are Not Smaller Versions       of Large Companies   Startups Search for Unknown         Business Models
What’s A Startup?
A temporary organization      designed to searchfor a repeatable and scalable       business model
A temporary organization      designed to searchfor a repeatable and scalable       business model
A temporary organization      designed to searchfor a repeatable and scalable       business model
A temporary organization      designed to searchfor a repeatable and scalable       business model
Startups Fail Because TheyConfuse Search with Execute
Startups need their own tools,  different from those used    in existing companies
Startups need their own tools,  different from those used    in existing companies
And a Question
Can We Build a Process to        Search?      Before we Execute
Yes• Lead User Research - Von Hippel               • OODA Loop - Boyd• Crossing the Chasm - Moore                    • Que...
Customer Development Process
+
+   +
So I Wrote A “Book”
And Then A ClassMBA 295: Customer DevelopmentCo-taught with: Rob Majteles @ Treehouse Ventures
Eric Ries Extends the Model• Took my class at U.C. Berkeley• Co-founded IMVU, I sat on his board   – 1st implementation of...
Which Turned Into A Better Model                 +          Agile Development
Alex Osterwalder - Business Model• Business Model Generation• Defines what the “search” is about
Which Turned Intoan Even Better Model                  +                  +
+
And that Turned into Another Book
What I Used to Believe       Education
Entrepreneurial Education was       about execution
Entrepreneurial Education was       about execution
What We Now Know    Education
Entrepreneurial Educationbegins with the Search for a      business model
Search                           ExecutionStrategy   Business Model                                               Operatin...
Putting Search first is a          radical changeIt’s not just one more methodology
What We Used to Believe   Instructional Strategies
Cases and a Business Plans weregood entrepreneurial teaching tools
Cases and a Business Plan were     good teaching tools
What We Now KnowInstructional Strategies
Experiential Immersion              ~100 GOOTB connections
Business Model Patterns       Replace Cases                                             Nespresso                         ...
Business Model Competitions Replace    Business Plan Competitions
Business Model Competitions Replace    Business Plan Competitions        http://www.businessmodelcompetition.com/
Search                              ExecutionStrategy        Business Model                                               ...
Classes on EntrepreneurialExecution Follows Search
Entrepreneurship is    Experiential
Let’s Teach it That Way  Entrepreneurship is      Experiential
And Then Into Another Class  Engr 245: The Lean LaunchPad  Co-taught with: Jon Feiber @ MDV                       Ann Miur...
Admission By Application and Team         (business model canvas)     Engr 245: The Lean LaunchPad     Co-taught with: Jon...
VC’s As Part of the Teaching TeamVenture Capitalists        Engr 245: The Lean LaunchPad        Co-taught with: Jon Feiber...
One Mentor Per Team                                             MentorsVenture Capitalists         Engr 245: The Lean Laun...
Joint Engineering & MBA Class                                             MentorsVenture Capitalists         Engr 245: The...
Add LaunchPad Central Software to to       improve the outcomes
Then It Turned Into Another Class   Co-taught with: Jon Feiber @ MDV                        Jim Hornthal @ CMEA           ...
Admission By Application and Team    Co-taught with: Jon Feiber @ MDV                         Jim Hornthal @ CMEA         ...
VC’s As Part of the Teaching TeamVenture Capitalists Feiber @ MDV     Co-taught with: Jon                         Jim Horn...
Mentors are Part of the Team                                                     MentorsVenture Capitalists Jon Feiber @ M...
Then It Turned Into Another ClassManaged by
Trained the TrainersAdded two MoreSchools
Train 9 More Universities
Train 9 More Universities
And Four More SchoolsCo-taught with Murray Low @ Columbia                 Bob Dorf                     Co-taught with: Jon...
And Four More Schools                Add 5-day version of the class                                   5-day VersionCo-taug...
Put the class online 75,000 students                       79
And Then Add an Online Class     enables a “flipped classroom”
Lean LaunchPad Educators Class               •Train 65 educators/quarter               • Run by NCIIA               • Taug...
1,000+ events100+ countries100,000+ entrepreneurs
Add hundreds of Facilitators and Coaches
5-week hands-on courseCurriculum = Stanford, Berkeley, Columbia100’s of locations in 2013
We now know how to make    startups fail less
How?
Teach Them theEntrepreneurial API
Entrepreneurial API = 3 partsPart 1              Business Model Canvas
Entrepreneurial APIPart 1                   +Part 2           Customer Development
Entrepreneurial APIPart 1                            +Part 2Part 3                      +                      Agile Engin...
SearchStrategy           Business Model                     HypothesesProcess         Customer Development,               ...
Search                             ExecutionStrategy          Business Model                                              ...
Story of the lean launch pad jan 2013
Story of the lean launch pad jan 2013
Story of the lean launch pad jan 2013
Story of the lean launch pad jan 2013
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Transcript of "Story of the lean launch pad jan 2013"

  1. 1. The Story of theLean LaunchPad www.steveblank.com @sgblank
  2. 2. 8 Startups in 21 Years
  3. 3. 21 Years Executing the Plan
  4. 4. Actual Photo of What Happened When My Plan Had First Contact With Customers
  5. 5. All I Need is the 5-Year Forecast
  6. 6. VC’s and theSoviet Unionare the onlypeople to require5-Year Plans
  7. 7. Is this all there is?
  8. 8. Business SchoolsProfessors Students asConsulting Management Existing Companies© 2012 Steve Blank
  9. 9. Business Schools Business School CurriculumProfessors Students asConsulting Management • Finance Gov’t& Law • Leadership  Supply Chain • Org Behavior  Ethics • Operations  Global Business • Marketing  Accounting • Strategy  Global Mgmt Existing Companies© 2012 Steve Blank
  10. 10. Business SchoolsProfessors Students asConsulting Management Execute Execute small business, family Existing business, high-tech business, new product Companies development Entrepreneurship© 2012 Steve Blank
  11. 11. Business 1911: Taylor The Principles of Scientific Management Schools 1915: Taussig: Principles of Economics 1923: Knight: Risk, Uncertainty and Profit 1934 Schumpeter: The Theory of Economic Developmentin english 1945 Weissman: Small Business and Venture CapitalProfessors Students as 1947 Myles Mace - 1st entrepreneurship course at HarvardConsulting Management 1952 Kelley & Lawyer: Case Problems in Small Business Management 1953 Small Business Administration formed 1953 C. Roland Christensen: Management Succession in Small and Growing Enterprises 1954 Small Business Management, first MBA small business course at Stanford 19684 schools teaching entrepreneurship 1979 Livesay: American Made 1983 First entrepreneurship course in an engineering school, Univ of New Mexico. 1986 First national business plan competition, University of Miami. 1988 von Hippel: The Sources of Innovation 1993 Karl Vesper New Venture Mechanics 1997 Christensen: The Innovators Dilemma 2000 McGrath &MacMilian: The Entrepreneurial Mindset Execute Execute small business, family Existing business, high-tech business, new product Companies development Entrepreneurship© 2012 Steve Blank Source: Katz, table 1 http://ideas.repec.org/a/eee/jbvent/v18y2003i2p283-300.html
  12. 12. Business Schools Business School CurriculumProfessors Students asConsulting Management • Finance Gov’t& Law • Leadership  Supply Chain • Org Behavior  Ethics • Operations  Global Business • Marketing  Accounting • Strategy  Global Mgmt •EntrepreneurshipSmall Business Execute small business, family Existing business, high-tech business, new product Companies development Entrepreneurship© 2012 Steve Blank Sources: Katz, table 1 http://ideas.repec.org/a/eee/jbvent/v18y2003i2p283-300.html
  13. 13. ?
  14. 14. It Resulted in a Few Hypotheses• Startups were not smaller versions of large companies• Startups were aboutsearch, not execution• Entrepreneurs and their VC’s were executing on guesses• But the facts were outside the building• Planning needed to come before the plan
  15. 15. Startups Are Not Smaller Versions of Large Companies
  16. 16. Startups Are Not Smaller Versions of Large Companies Large Companies Execute Known Business Models
  17. 17. Startups Are Not Smaller Versions of Large Companies Startups Search for Unknown Business Models
  18. 18. What’s A Startup?
  19. 19. A temporary organization designed to searchfor a repeatable and scalable business model
  20. 20. A temporary organization designed to searchfor a repeatable and scalable business model
  21. 21. A temporary organization designed to searchfor a repeatable and scalable business model
  22. 22. A temporary organization designed to searchfor a repeatable and scalable business model
  23. 23. Startups Fail Because TheyConfuse Search with Execute
  24. 24. Startups need their own tools, different from those used in existing companies
  25. 25. Startups need their own tools, different from those used in existing companies
  26. 26. And a Question
  27. 27. Can We Build a Process to Search? Before we Execute
  28. 28. Yes• Lead User Research - Von Hippel • OODA Loop - Boyd• Crossing the Chasm - Moore • Question-based Selling - Freese• Entrepreneurial Mindset - McGrath/MacMillan • Solution Selling - Bosworth• Innovators Dilemma - Christensen • Conceptual/Strategic Selling - Heiman• Profitable Value - Lanning • Spin Selling - Rackham•Lanchester Strategy - Yano • US Marine Corps Warfighting Manual• High Tech Marketing - Davidow • Tipping Point - Gladwell
  29. 29. Customer Development Process
  30. 30. +
  31. 31. + +
  32. 32. So I Wrote A “Book”
  33. 33. And Then A ClassMBA 295: Customer DevelopmentCo-taught with: Rob Majteles @ Treehouse Ventures
  34. 34. Eric Ries Extends the Model• Took my class at U.C. Berkeley• Co-founded IMVU, I sat on his board – 1st implementation of Customer Development – Paired it with an Agile Development Model• Called it the Lean Startup
  35. 35. Which Turned Into A Better Model + Agile Development
  36. 36. Alex Osterwalder - Business Model• Business Model Generation• Defines what the “search” is about
  37. 37. Which Turned Intoan Even Better Model + +
  38. 38. +
  39. 39. And that Turned into Another Book
  40. 40. What I Used to Believe Education
  41. 41. Entrepreneurial Education was about execution
  42. 42. Entrepreneurial Education was about execution
  43. 43. What We Now Know Education
  44. 44. Entrepreneurial Educationbegins with the Search for a business model
  45. 45. Search ExecutionStrategy Business Model Operating Plan + Hypotheses Financial ModelProcess Customer Development, Product Management Agile Development Agile or Waterfall DevelopmentOrganization Customer Development Functional Organization Team, Founder-driven by DepartmentEducation Creativity/Innovation, Busin Organizational ess Model Behavior, HR Design, Customer Mgmt, Accounting, Modeli ng, Strategy, Operations, Development, Startup team Leadership, Marketing, Ma building, Entrepreneurial nufacturing Finance, Agile Development, Customer Funnel: Get/Keep/Grow Market
  46. 46. Putting Search first is a radical changeIt’s not just one more methodology
  47. 47. What We Used to Believe Instructional Strategies
  48. 48. Cases and a Business Plans weregood entrepreneurial teaching tools
  49. 49. Cases and a Business Plan were good teaching tools
  50. 50. What We Now KnowInstructional Strategies
  51. 51. Experiential Immersion ~100 GOOTB connections
  52. 52. Business Model Patterns Replace Cases Nespresso club production Nespresso machines Nespressopo ds distribution channels Nespresso .com productioncoffee facilites B2C 1 x machine distribution sales 56
  53. 53. Business Model Competitions Replace Business Plan Competitions
  54. 54. Business Model Competitions Replace Business Plan Competitions http://www.businessmodelcompetition.com/
  55. 55. Search ExecutionStrategy Business Model Operating Plan + Hypotheses Financial ModelProcess Customer Development, Product Management Agile Development Agile or Waterfall DevelopmentOrganization Customer Development Functional Organization Team, Founder-driven by Department Education Business Model Organizational Design, Customer Behavior, HR Development, Startup team Mgmt, Accounting, Modeling building, Entrepreneurial , Strategy, Operations, Lead Finance, Agile ership, Marketing, Manufact Development, Marketing uringInstructional Experiential, constructivist, l Case, Lecture, SmallStrategies earner-centered, Group, Mentorship inquiry-based
  56. 56. Classes on EntrepreneurialExecution Follows Search
  57. 57. Entrepreneurship is Experiential
  58. 58. Let’s Teach it That Way Entrepreneurship is Experiential
  59. 59. And Then Into Another Class Engr 245: The Lean LaunchPad Co-taught with: Jon Feiber @ MDV Ann Miura-Ko @ Floodgate
  60. 60. Admission By Application and Team (business model canvas) Engr 245: The Lean LaunchPad Co-taught with: Jon Feiber @ MDV Ann Miura-Ko @ Floodgate
  61. 61. VC’s As Part of the Teaching TeamVenture Capitalists Engr 245: The Lean LaunchPad Co-taught with: Jon Feiber @ MDV Ann Miura-Ko @ Floodgate
  62. 62. One Mentor Per Team MentorsVenture Capitalists Engr 245: The Lean LaunchPad Co-taught with: Jon Feiber @ MDV Ann Miura-Ko @ Floodgate
  63. 63. Joint Engineering & MBA Class MentorsVenture Capitalists Engr 245: The Lean LaunchPad Co-taught with: Jon Feiber @ MDV Ann Miura-Ko @ Floodgate
  64. 64. Add LaunchPad Central Software to to improve the outcomes
  65. 65. Then It Turned Into Another Class Co-taught with: Jon Feiber @ MDV Jim Hornthal @ CMEA John Burke @ True Ventures Jerry Engel @ Haas/Monitor Ventures Bhavik Joshi @ Better Place Oren Jacob @ Pixar
  66. 66. Admission By Application and Team Co-taught with: Jon Feiber @ MDV Jim Hornthal @ CMEA John Burke @ True Ventures Jerry Engel @ Haas/Monitor Ventures Bhavik Joshi @ Better Place Oren Jacob @ Pixar
  67. 67. VC’s As Part of the Teaching TeamVenture Capitalists Feiber @ MDV Co-taught with: Jon Jim Hornthal @ CMEA John Burke @ True Ventures Jerry Engel @ Haas/Monitor Ventures Bhavik Joshi @ Better Place Oren Jacob @ Pixar
  68. 68. Mentors are Part of the Team MentorsVenture Capitalists Jon Feiber @ MDV Co-taught with: Jim Hornthal @ CMEA John Burke @ True Ventures Jerry Engel @ Haas/Monitor Ventures Bhavik Joshi @ Better Place Oren Jacob @ Pixar
  69. 69. Then It Turned Into Another ClassManaged by
  70. 70. Trained the TrainersAdded two MoreSchools
  71. 71. Train 9 More Universities
  72. 72. Train 9 More Universities
  73. 73. And Four More SchoolsCo-taught with Murray Low @ Columbia Bob Dorf Co-taught with: Jon Feiber @ MDV Taught by Jim Hornthal Taught by Takashi Tsutsumi@ Hosei
  74. 74. And Four More Schools Add 5-day version of the class 5-day VersionCo-taught with Murray Low @ Columbia Bob Dorf Co-taught with: Jon Feiber @ MDV Taught by Jim Hornthal Taught by Takashi Tsutsumi@ Hosei
  75. 75. Put the class online 75,000 students 79
  76. 76. And Then Add an Online Class enables a “flipped classroom”
  77. 77. Lean LaunchPad Educators Class •Train 65 educators/quarter • Run by NCIIA • Taught with Jerry Engel @ Haas
  78. 78. 1,000+ events100+ countries100,000+ entrepreneurs
  79. 79. Add hundreds of Facilitators and Coaches
  80. 80. 5-week hands-on courseCurriculum = Stanford, Berkeley, Columbia100’s of locations in 2013
  81. 81. We now know how to make startups fail less
  82. 82. How?
  83. 83. Teach Them theEntrepreneurial API
  84. 84. Entrepreneurial API = 3 partsPart 1 Business Model Canvas
  85. 85. Entrepreneurial APIPart 1 +Part 2 Customer Development
  86. 86. Entrepreneurial APIPart 1 +Part 2Part 3 + Agile Engineering Agile Engineering
  87. 87. SearchStrategy Business Model HypothesesProcess Customer Development, Agile DevelopmentOrganization Customer Development Team, Founder-driven Education Business Model Design, Customer Development, Startup team building, Entrepreneurial Finance, Agile Development, MarketingInstructional Experiential, constructivist, leStrategies arner-centered, inquiry- based
  88. 88. Search ExecutionStrategy Business Model Operating Plan + Hypotheses Financial ModelProcess Customer Development, Product Management Agile Development Agile or Waterfall DevelopmentOrganization Customer Development Functional Organization Team, Founder-driven by Department Education Business Model Organizational Design, Customer Behavior, HR Development, Startup team Mgmt, Accounting, Modeling building, Entrepreneurial , Strategy, Operations, Lead Finance, Agile ership, Marketing, Manufact Development, Marketing uringInstructional Experiential, constructivist, Case, Lecture, SmallStrategies learner-centered, inquiry- Group, Mentorship based
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