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When the Boardroom is Bits
When the Boardroom is Bits
When the Boardroom is Bits
When the Boardroom is Bits
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When the Boardroom is Bits

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  • 1. When The Boardroom is Bits<br />Steve Blank<br />www.steveblank.com<br />Twitter: sgblank<br />
  • 2. This Talk<br /><ul><li>10 Things We Learned in the Last Year ………………………
  • 3. Experienced Advice Matters
  • 4. Solving the Early Stage-Experience Gap
  • 5. The Boardroom is Bits</li></li></ul><li>First<br />10 Things We Learned in the Last Year<br />
  • 6. #1<br />Business Schools turned 300 years of business experience into an MBA<br />
  • 7. #1<br />Business Schools turned 300 years of business experience into an MBAMBA = Masters of Business Administration<br />
  • 8. #2<br />Tech Entrepreneurship + Venture Capital is ~50 Years OldStartups are Smaller Versions of Large Companies<br />
  • 9. #2<br />Tech Entrepreneurship + Venture Capital is ~ 50 Years OldStartups are Smaller Versions of Large Companies<br />
  • 10. #2<br />×<br />Tech Entrepreneurship + Venture Capital is ~ 50 Years OldStartups are Smaller Versions of Large Companies<br />oops<br />
  • 11. #3<br />Companies execute business modelsStartups search for business models<br />
  • 12. #3<br />Companies execute business modelsStartups search for business models<br />
  • 13. #3<br />Companies execute business modelsStartups search for business models<br />✓<br />
  • 14. #4<br />A startup is a temporary organization designed to search for a scalable and repeatable business model<br />
  • 15. #5<br />Startups need their own tools, different from those used in existing companies<br />
  • 16. #5<br />Startups need their own tools, different from those used in existing companies<br />
  • 17. #6<br />Customer Development = process to searchBusiness Model Canvas is the ScorecardAgile Engineering is How We Build Startups<br />
  • 18. #7<br />Customer Development =process to searchBusiness Model Canvas =the ScorecardAgile Engineering is How We Build Startups<br /><ul><li>Farming conventions.
  • 19. Demo, demo, and demo!!
  • 20. Proximity is paramount
  • 21. Technology Design
  • 22. Marketing
  • 23. Demo and customer feedback
  • 24. Research Labs
  • 25. Equipment Manufacturers
  • 26. Distribution Network
  • 27. Service Providers
  • 28. Cost Reduction
  • 29. Remove labor force pains
  • 30. Eliminate bio-waste hazards
  • 31. Organic Farmers
  • 32. Weeding Service Providers
  • 33. Conventional Farmers
  • 34. IP – Patents
  • 35. Video Classifier Files
  • 36. Robust Technology
  • 37. Dealers
  • 38. Direct Service
  • 39. Indirect Service
  • 40. … then Dealers
  • 41. Asset Sale
  • 42. Direct Service with equipment rental
  • 43. … then Asset Sale</li></ul>Value-Driven<br />
  • 44. #8<br />Customer Development is the process used to searchBusiness Model Canvas is the ScorecardAgile Development is How We Build Startups<br />
  • 45. #9<br />Startups that pivot 1 or 2 times:<br /><ul><li> raise 2.5x more money
  • 46. have 3.6x better user growth
  • 47. 52% less likely to scale prematurely</li></ul> than startups that pivot more than 2 times or not at all<br />Startup Genome Report<br />
  • 48. #9<br />Startups that pivot 1 or 2 times:<br /><ul><li> raise 2.5x more money
  • 49. have 3.6x better user growth
  • 50. 52% less likely to scale prematurely</li></ul> than startups that pivot more than 2 times or not at all<br />Startups that have:<br /><ul><li> helpful mentors
  • 51. listen to customers,
  • 52. learn from startup thought leaders</li></ul>Raise 7x more money and have 3.5x better user growth<br />Startup Genome Report<br />
  • 53. #10<br />We’ve cracked the code in teaching entrepreneurship<br />
  • 54. #10<br />We’ve cracked the code in teaching entrepreneurship<br />http://steveblank.com/category/lean-launchpad/<br />
  • 55. What Have We Learned in the Last Year?<br /> Startups ≠ MBA toolset<br /> Startup Toolset<br />Customer Development<br />Business Model Canvas<br />Agile Development<br />We have real data that this works<br />A Better Way to Teach Entrepreneurship<br />
  • 56. What’s Next?<br />
  • 57. Hypothesis:Experienced Advice Matters<br />
  • 58. Hypothesis:Experienced Advice Matters<br />
  • 59. You1board at a time<br />
  • 60. You1board at a time<br />VC’s6 - 12 boards at a time<br />
  • 61. You1board at a time<br />VC’s6 - 12 boards at a time<br /> X<br />Avg 4 years per board<br />
  • 62. You1board at a time<br />VC’s6 - 12 boards at a time<br /> X<br />Avg 4 years per board<br /> X<br />2 VC’s per board<br />
  • 63. You1board at a time<br />VC’s6 - 12 boards at a time<br /> X<br />Avg 4 years per board<br /> X<br /> 2 VC’s per board<br />=<br />~50-100x Pattern Recognition<br />
  • 64. You1<br />
  • 65. You1<br />VC’s50 - 100<br />
  • 66. You1<br />VC’s50 - 100<br />(Discount for 7 Deadly Sins)<br />
  • 67. 50 - 100 ≥ 1<br />
  • 68. 50 - 100 ≥ 1<br />The Early Stage-Experience Gap<br />
  • 69. Solving the Early Stage-Experience Gap<br />
  • 70. Venture Funded companies have boards<br />Angel Funded companies often do not<br />Experienced Advice is sparse outside of technology clusters<br />
  • 71. Venture Funded companies have boards<br />Early Stage companies often do not<br />Experienced Advice is sparse outside of technology clusters<br />
  • 72. Venture Funded companies have boards<br />Angel Funded companies often do not<br />Experienced Advice is sparse outside of technology clusters<br />
  • 73. Why Have a Board Meeting?Investor<br />Fiduciary Responsibility<br />Company has asymmetric information<br />Board has legal responsibility to their Limited Partners<br />Maximize Investment Potential<br />Board has asymmetric knowledge 50-100x experience <br />Good board asks hard questions<br />
  • 74. Why Have a Board Meeting?Founder<br />Board Guidance<br />50-100x more experience = Pattern recognition<br />Multiple opinions across VC’s<br />Board Network <br />Customers, Partners, Recruiting, Financing <br />Obligation<br />It came with the check<br />
  • 75. Board Meetings Are Heavyweight Processes Antithesis of Lean<br />
  • 76. Board Meetings Are Heavyweight Processes Antithesis of Lean<br />
  • 77. Board Meetings Haven’t Evolved<br />
  • 78. We Act Like It’s the 19th Century<br />Why do we need to get together in one room?<br />Why do we need to wait a month to see progress?<br />Why don’t we have standards for what you want?<br />Why haven’t we adopted the tools we build/sell?<br />
  • 79. How to Run a Board Meeting<br />Logistics<br />Send out board materials 2 days before, have board dinner<br />Approve minutes, stock grants<br />Business Highlights/Lowlights<br />summary of key events since last meeting<br />Financials versus Budget<br />waterfall charts<br />Management asks the board to help<br />strategy, markets, key hires, introductions.<br />Executive session<br />Meet without management to discuss performance<br />
  • 80. How to Run a Board Meeting<br />Logistics<br />Approve minutes, stock grants<br />Business Highlights/Lowlights<br />summary of key events since last meeting<br />Financials versus Budget<br />waterfall charts<br />Management asks the board to help<br />strategy, markets, key hires, introductions.<br />Executive session<br />Meet without management to discuss performance<br />Misc<br />Send out board materials 2 days before, have board dinner<br />Why?<br />
  • 81. What’s Wrong With a Board Meeting?<br />Time between meetings (every 4-6 weeks)<br />Strategy-to-tactic-to implementation lag<br />Often no follow-up on the outcomes<br />Diffuse board member attention (sits on 6-12 boards)<br />Punctuated Exec Staff Performance<br />“The Get Ready for the Board Meeting” drill<br />It’s often a performance rather than a snapshot<br />No standards for what each side does<br />What is the entrepreneur supposed to be doing?<br />What are the board members supposed to be contributing?<br />
  • 82. What’s Wrong With a Board Meeting?<br />Time between meetings (every 4-6 weeks)<br />Strategy-to-tactic-to implementation lag<br />Diffuse board member attention (sits on 6-12 boards<br />Punctuated Exec Staff Performance<br />“The Get Ready for the Board Meeting” drill<br />It’s often a performance rather than a snapshot<br />No standards for what each side does<br />What is the entrepreneur supposed to be doing?<br />What are the board members supposed to be contributing?<br />Why?<br />
  • 83. Solution:Make The Boardroom Bits<br />
  • 84. We Can Do This Via the Net<br />
  • 85. We Can Do This Via the Net<br />24/7<br />
  • 86. We Can Do This Via the Net<br />Connecting Advisors to/from Anywhere<br />
  • 87. Focus on What’s Important<br />It’s about the search for the business model<br />Not income statement, cash flow, balance sheet<br />Advice/Guidance about metrics around the search<br />What are the Business model hypotheses?<br />What are the most important hypotheses to test now?<br />Progress of validating each hypotheses<br />What are the iterations and Pivots – and why?<br />
  • 88. Continuous Information Access<br />Founders / mgmt team invest 1 hour a week<br />Structured blog<br />Unstructured data<br />Formal business model canvas<br />Real-time advisor/board feedback<br />
  • 89. We Made Students Blog Their Progress<br />
  • 90. How?<br />Customer Development<br />The Process<br />Narrative<br />Interviews<br />Surveys<br />Videos<br />Prototypes<br />Business Model Canvas<br />Scorekeeping<br />Real-time Feedback<br />Physical Reality Checks<br />Skype<br />Face-to-face<br />
  • 91. We Made Students Blog Their Progress<br />It Changed Everything<br />
  • 92. Interview<br />
  • 93. Photos<br />Videos<br />
  • 94. Surveys<br />
  • 95. Interview<br />& Photos<br />
  • 96. Competitive Analysis<br />
  • 97. Key Findings<br />
  • 98. A/B Test Results<br />
  • 99. Key Question<br />
  • 100. Strategy<br />
  • 101. Business Model Canvas as the Scorecard<br />
  • 102.
  • 103. Business Canvas Change Progress <br />1<br />
  • 104. Business Canvas Change Progress <br />2<br />
  • 105. Business Canvas Change Progress <br />3<br />
  • 106. Business Canvas Change Progress <br />4<br />
  • 107. Business Canvas Change Progress <br />5<br />
  • 108. Business Canvas Change Progress <br />6<br />
  • 109. Business Canvas Change Progress <br />7<br />
  • 110. Demo<br />Ben Mappen<br />Lean LaunchLab<br />
  • 111. Product Demo<br />
  • 112.
  • 113. CANVAS diagram is interactive and “stateful”<br />
  • 114. CANVAS diagram is interactive and “stateful”<br />Enter your hypotheses here<br />
  • 115. CANVAS diagram is interactive and “stateful”<br />Test your hypotheses and<br />record learnings in blog format<br />
  • 116. CANVAS diagram is interactive and “stateful”<br />Test your hypotheses and<br />record learnings in blog format<br />Interviews<br />Surveys<br />Videos<br />Photos<br />etc<br />
  • 117. CANVAS diagram is interactive and “stateful”<br />Test your hypotheses and<br />record learnings in blog format<br />Invite your advisors and investors to your project<br />
  • 118. CANVAS diagram is interactive and “stateful”<br />Test your hypotheses and<br />record learnings in blog format<br />Invite your advisors and investors to your project<br />They can view progress<br />by flipping thru your CANVAS diagrams<br />
  • 119. CANVAS diagram is interactive and “stateful”<br />Test your hypotheses and<br />record learnings in blog format<br />Invite your advisors and investors to your project<br />They can view progress<br />by flipping thru your CANVAS diagrams<br />They can post feedback and leave comments inline<br />
  • 120. CANVAS diagram is interactive and “stateful”<br />Test your hypotheses and<br />record learnings in blog format<br />Invite your advisors and investors to your project<br />They can view progress<br />by flipping thru your CANAVAS diagrams<br />They can post feedback and leave comments inline<br />Get email alert when new<br />feedback comes in<br />
  • 121. CANVAS diagram is interactive and “stateful”<br />Test your hypotheses and<br />record learnings in blog format<br />Invite your advisors and investors to your project<br />They can view progress<br />by flipping thru your CANAVAS diagrams<br />They can post feedback and leave comments inline<br />Get email alert when new<br />feedback comes in<br />The Lean<br />Board Meeting<br />
  • 122. Sign up for private beta (FREE)<br />http://www.leanlaunchlab.com<br />@leanlaunchlab<br />Ben Mappen<br />benmappen@gmail.com<br />
  • 123. What Does this Change?For Angel-Funded Startups<br />Angel funded startups can now get experienced advice<br />No longer requires board commitment for involvement<br />Encourages investors who need visibility<br />Ends repetition at each investor coffee<br />Turns adhoc startups into strategy-driven startups<br />Invites investor participation in the process<br />Professionalize the “throw it against the wall and see if it sticks”<br />Highly time-efficient for investor and founders<br />Eliminates Geography as a barrier to investment!<br />
  • 124. What Does this Change?For VC’s and Angels<br />For the first time a structure for “search”<br />Real-time monitoring of startup progress<br />Zero-lag for coaching and course-correction<br />Immediate follow-up on board meeting outcomes<br />Allows a single VC to multiply their reach and/or depth<br />Eliminates Geography as a barrier to investment!<br />
  • 125. Show Me the Money<br />
  • 126. It’s about time!<br />Email me <br />jdf@mdv.com<br />
  • 127. Great Experiment<br />Email me <br />ann@floodgate.com<br />
  • 128. This Solves A Real Problem<br />
  • 129. This Solves A Real Problem<br />I thought it was such a good idea I Just funded the Lean LaunchLab<br />Email me:<br />shawn@menloventures.com<br />
  • 130. Lets experiment with the idea<br />Now at Gould Investments<br />Email me:<br />Kathryn@gouldinvestments.com<br />
  • 131. Wouldn’t miss trying this!<br />Email me:<br />eric@ingroup.com<br />
  • 132. Thanks<br />

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