Why fighter pilots run startups 090511

5,063 views
3,808 views

Published on

Why fighter pilots run startups 090511

  1. Why Fighter Pilots Run Startups<br />Steve Blank<br />Stanford - School of Engineering<br />U.C. Berkeley - Haas School Of Business<br />www.steveblank.com<br />Twitter: sgblank<br />
  2. I Write a Blog <br />www.steveblank.com<br />
  3. This Talk is Based On<br />Business Model Generation<br />Four Steps to the Epiphany<br />The Lean Startup<br />
  4. The Life of an Entrepreneur<br />
  5. Top Gun dogfight scene<br />
  6. First -What’s A Startup?<br />Six Types of Startups<br />
  7. Startup<br />Lifestyle Startups Work to Live their Passion<br /><ul><li>Serve known customer with known product
  8. Get paid for their passion</li></li></ul><li>Small Business<br />Startup<br />Small Business StartupsWork to Feed the Family<br /><ul><li>Serve known customer with known product
  9. Feed the family</li></li></ul><li>Small Business<br />Startup<br />Exit Criteria<br /><ul><li> Business Model found</li></ul>- Profitable business<br /><ul><li> Existing team</li></ul>< €100K in revenue<br />Small Business StartupsWork to Feed the Family<br /><ul><li>known customer known product
  10. Feed the family</li></li></ul><li>Small Business<br />Startup<br />- Business Model found<br />- Profitable business<br /><ul><li> Existing team</li></ul>< $10M in revenue<br />Small Business Startups<br /><ul><li>5.7 million small businesses in the U.S. <500 employees
  11. 99.7% of all companies
  12. ~ 50% of total U.S. workers</li></ul>http://www.sba.gov/advo/stats/sbfaq.pdf<br />
  13. Scalable<br />Startup<br />Large Company<br />Scalable Startup<br />Search<br />Goal is to solve for:<br /> unknown customer and unknown features <br />
  14. Execute<br />Search<br />Scalable<br />Startup<br />Large Company<br />Exit Criteria<br /><ul><li> Business model found
  15. Total Available Market > €300m
  16. Can grow to €50/year</li></ul>Scalable StartupBorn to Be Big<br />
  17. Scalable<br />Startup<br />Large Company<br /><ul><li> Total Available Market > $500m
  18. Company can grow to $100m/year
  19. Business model found
  20. Focused on execution and process
  21. Typically requires “risk capital”</li></ul>Scalable StartupBorn to Be Big<br />Execute<br />Search<br /><ul><li> In contrast a scalable startup is designed to grow big
  22. Typically needs risk capital
  23. What Silicon Valley means when they say “Startup”</li></li></ul><li>The Transition – Founders Leave<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Build<br />Execute<br />Search<br />Founders depart<br /><ul><li> Operating executives
  24. Professional Mgmt
  25. Process
  26. Beginning of scale</li></li></ul><li>Buyable StartupBorn to Be Sold<br />Search<br />Sell<br />Scalable<br />Startup<br />€3 to 30M Acquisition<br />Goal is to solve for:<br /> Internet, Mobile, Gaming Apps<br />
  27. Buyable Startup<br />Search<br />Sell<br />Scalable<br />Startup<br />€3 to e0M Acquisition<br />Goal is to solve for:<br /> Internet and Mobile Apps<br />Sell to larger company<br />
  28. Scalable<br />Startup<br />Large Company<br /><ul><li>Business Model found
  29. i.e. Product/Market fit</li></ul>- Repeatable sales model<br />- Managers hired<br />What’s A Startup?<br />Search <br />Execute<br />A Startup is a temporary organization used to search for a repeatable and scalable business model <br />
  30. Venture Firms Invest in Scalable and BuyableStartups<br />Small Business<br />Startup<br />Scalable<br />Startup<br />Large Company<br />
  31. Large Company Sustaining InnovationInnovate or Evaporate<br />Sustaining Innovation<br />Transition<br />Scalable<br />Startup<br />Large Company<br /><ul><li> Existing Market / Known customer
  32. Known product feature needs</li></li></ul><li>Large Company Disruptive Innovation<br />New Division<br />Transition<br />Large Company<br />Disruptive Innovation<br /><ul><li>New Market
  33. New tech, customers, channels</li></li></ul><li>Large Company Disruptive Innovation<br />New Division<br />Transition<br />Large Company<br />Disruptive Innovation<br /><ul><li>Build
  34. Partner
  35. Acquire</li></ul> - IP- Talent<br /> - Product<br /> - Customers<br /> - Business<br />
  36. Large Non-Profit<br />Social Startup<br />Social Entrepreneurship Startups<br /><ul><li>Solve pressing social problems
  37. Social Enterprise: Profitable
  38. Social Innovation: New Strategies</li></li></ul><li>Search Versus ExecutionWhy Accountants Don’t Run Startups<br />
  39. Startups Search and Pivot<br />The Search for the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Searching for the Business Model<br /><ul><li> customer needs/product features</li></ul> i.e. Product/Market fit<br /><ul><li>Found by founders, not employees
  40. Repeatable sales model</li></li></ul><li>Startups Search, Companies Execute<br />The Execution of the Business Model<br />The Search for the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br /><ul><li>Business Model found
  41. Product/Market fit</li></ul>- Repeatable sales model<br />- Managers hired<br />Executing a known Business Model<br /><ul><li> Known customers, and product
  42. Profitable</li></ul>~ 150 people<br />
  43. Metrics Versus Accounting<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large<br />Company<br />Traditional Accounting<br /><ul><li>Balance Sheet
  44. Cash Flow Statement
  45. Income Statement</li></li></ul><li>Metrics Versus Accounting<br />The Search for the Business Model<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large<br />Company<br />Startup Metrics<br /><ul><li> Customer Acquisition Cost
  46. Viral coefficient
  47. Customer Lifetime Value
  48. Average Selling Price/Order Size
  49. Monthly burn rate
  50. etc. </li></ul> Traditional Accounting<br /><ul><li> Balance Sheet
  51. Cash Flow Statement
  52. Income Statement</li></li></ul><li>Customer Validation Versus Sales<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large<br />Company<br />Sales<br /><ul><li>Sales Organization
  53. Scalable
  54. Price List/Data Sheets
  55. Revenue Plan</li></li></ul><li>Customer Validation Versus Sales<br />The Search for the Business Model<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large<br />Company<br />Customer Validation<br /><ul><li> Early Adopters
  56. Pricing/Feature unstable
  57. Not yet repeatable
  58. “One-off’s”</li></ul>Sales<br /><ul><li> Sales Organization
  59. Scalable
  60. Price List/Data Sheets
  61. Revenue Plan</li></li></ul><li>Engineering Versus Agile Development<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Engineering<br /><ul><li> Requirements Docs.
  62. Waterfall Development
  63. QA
  64. Tech Pubs</li></li></ul><li>Engineering Versus Agile Development<br />The Search for the Business Model<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Engineering<br /><ul><li> Requirements Docs.
  65. Waterfall Development
  66. QA
  67. Tech Pubs</li></ul>Agile Development<br /><ul><li> Continuous Deployment
  68. Continuous Learning
  69. Self Organizing Teams
  70. Minimum Feature Set
  71. Pivots</li></li></ul><li>Startups Model, Companies Plan<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Business Plan<br /><ul><li>Plan describes “knowns”
  72. Known features for line extensions
  73. Known customers/markets
  74. Known business model</li></li></ul><li>Startups Model, Companies Plan<br />The Search for the Business Model<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Business Model<br />- Unknown customer needs<br /><ul><li> Unknown feature set
  75. Unknown business model
  76. Model found by iteration
  77. Plan describes “knowns”
  78. Known features for line extensions
  79. Known customers/markets
  80. Known business model</li></li></ul><li>All I Need to Do is Execute the Plan<br />
  81. Product Introduction Model<br />Concept/Seed Round<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />
  82. Product Introduction Model<br />The Leading Cause of Startup Death<br />Concept/Seed Round<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />
  83. Product Introduction Model:Two Implicit Assumptions<br />Customer Problem: known<br />Concept/Seed Round<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br /> Product Features: known<br />
  84. Tradition – Hire Marketing<br />Concept/Seed Round<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />- Create Demand<br />- Launch Event<br />- “Branding”<br />- Hire PR Agency<br />- Early Buzz<br /><ul><li> Create Marcom </li></ul> Materials<br />- Create Positioning<br />Marketing<br />
  85. Tradition – Hire Sales<br />Concept/Seed Round<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />- Create Demand<br />- Launch Event<br />- “Branding”<br />- Hire PR Agency<br />- Early Buzz<br /><ul><li> Create Marcom </li></ul> Materials<br />- Create Positioning<br />Marketing<br /><ul><li> Build Sales Organization
  86. Hire Sales VP
  87. Hire 1st Sales Staff</li></ul>Sales<br />
  88. Tradition – Hire Bus Development<br />Concept<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />- Create Demand<br />- Launch Event<br />- “Branding”<br />- Hire PR Agency<br />- Early Buzz<br /><ul><li> Create Marcom </li></ul> Materials<br />- Create Positioning<br />Marketing<br /><ul><li> Build Sales Channel / Distribution
  89. Hire Sales VP
  90. Pick distribution Channel</li></ul>Sales<br />Business <br />Development<br /><ul><li> Hire First Bus Dev
  91. Do deals for FCS</li></li></ul><li>Tradition – Hire Engineering<br />Concept<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />- Create Demand<br />- Launch Event<br />- “Branding”<br />- Hire PR Agency<br />- Early Buzz<br /><ul><li> Create Marcom </li></ul> Materials<br />- Create Positioning<br />Marketing<br /><ul><li> Build Sales Channel / Distribution
  92. Hire Sales VP
  93. Pick distribution Channel</li></ul>Sales<br />Business <br />Development<br /><ul><li> Hire First Bus Dev
  94. Do deals for FCS</li></ul>Engineering<br /><ul><li> Write MRD
  95. Waterfall
  96. Q/A
  97. Tech Pubs</li></li></ul><li>More startups fail from a lack of customers than from a failure of product development<br />
  98. Then why do we have:<br />process to manage product development?<br />
  99. Then why do we have:<br />process to manage product development?<br />no process to manage customer development?<br />
  100. No Business Plan survives first contact with customers<br />
  101. So Search for a Business Model<br />
  102. The Business Model:<br />Any company can be described in 9 building blocks<br />
  103. CUSTOMER SEGMENTS<br />which customers and users are you serving? <br />which jobs do they really want to get done?<br />
  104. VALUE PROPOSITIONS<br />what are you offering them? what is that <br />getting done for them? do they care?<br />
  105. CHANNELS<br />how does each customer segment want to be reached? through which interaction points?<br />
  106. CUSTOMER RELATIONSHIPS<br />what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?<br />
  107. REVENUE STREAMS<br />what are customers really willing to pay for? how? <br />are you generating transactional or recurring revenues?<br />
  108. KEY RESOURCES<br />which resources underpin your business model? which assets are essential?<br />
  109. KEY ACTIVITIES<br />which activities do you need to perform well in your business model? what is crucial?<br />54<br />
  110. KEY PARTNERS<br />which partners and suppliers leverage your model? <br />who do you need to rely on?<br />
  111. COST STRUCTURE<br />what is the resulting cost structure? <br />which key elements drive your costs?<br />
  112. value proposition<br />customer relationships<br />key activities<br />customer segments<br />key partners<br />cost structure<br />revenue streams<br />key <br />resources<br />channels<br />57<br />images by JAM<br />
  113. Solving For Customer Risk:Customer Development<br />Get the Hell Out of the Building<br />
  114. Solving For Customer Risk:Customer Development<br />Get the Hell Out of the Building<br />Country<br />
  115. Product Development<br />Concept/Bus. Plan<br />Product Dev.<br />Alpha/Beta Test<br />Launch/1st Ship<br />+<br />CustomerDevelopment<br />Company<br />Building<br />CustomerDiscovery<br />CustomerValidation<br />Customer Creation<br />Customer Development<br />
  116. Customer Discovery<br />CustomerDiscovery<br />CustomerValidation<br />Company<br />Building<br />CustomerCreation<br />Stop coding, stop selling, start listening<br />Test your hypotheses<br />Continuous Discovery<br />
  117. Customer Validation<br />CustomerDiscovery<br />CustomerValidation<br />Customer Creation<br />Company<br />Building<br />Pivot<br /><ul><li>Repeatable and scalable business model?
  118. Passionate earlyvangelists?
  119. Pivot back to Discovery if no customers</li></li></ul><li>The Pivot<br /><ul><li> The heart of Customer Development
  120. Iteration without crisis
  121. Fast, agile and opportunistic</li></li></ul><li>Pivot Cycle Time Matters<br /><ul><li>Speed of cycle minimizes cash needs
  122. Minimum feature set speeds up cycle time
  123. Near instantaneous customer feedback drives feature set</li></li></ul><li>The Minimum Viable Product (MVP)<br /><ul><li> Smallest feature set that gets you the most …</li></ul> - orders, learning, feedback, failure…<br />
  124. Pivot ExampleRobotic Weeding<br />Talked 75 Customers in 8 Weeks<br />
  125. Our initial plan<br />Confidential<br />
  126. 20 interviews, 6 site visits…We got OUR Boots dirty<br />Weeding<br />Visited two farms in Salinas Valley to better understand problem<br />Interviewed:<br /><ul><li>Bolthouse Farms, Large Agri-Industry in Bakersfield
  127. White Farms, Large Peanut farmer in Georgia
  128. REFCO Farms, large grower in Salinas Valley
  129. Rincon Farms, large grower in Salinas Valley
  130. Small Organic Corn/Soy grower in Nebraska
  131. Heirloom Organics, small owner/operator, Santa Cruz Mts
  132. Two small organic farmers at farmers market
  133. Ag Services of Salinas, Fertilizer applicator</li></ul>Mowing<br />Interviewed:<br /><ul><li>Golf: Stanford Golf course
  134. Parks: Stanford Grounds Supervisor, head of maintenance and lead operator (has crew of 6)
  135. Toro dealer (large mower manufacturer)
  136. User of back-yard mowing system
  137. Maintenance Services for City of Los Altos
  138. Colony Landscaping (Mowing service for stadiums)</li></li></ul><li>Business Plan Autonomous Vehicles for Mowing & Weeding<br />Dealers sell, installs and supports customer<br />Co. trains dealers, supports dealers<br />- Innovation<br />- Customer Education<br />- Dealer training<br />Mowing<br />- Owners of public or commercially used green spaces (e.g. golf courses)<br />- Landscaping service provider<br />Weeding<br />- Farmers with manual weeding operations<br />We reduce operating cost<br />- Labor reduction<br />- Better utilization of assets (eg mow or weed at nights)<br />- Improved performance (less rework, food safety)<br />- Dealers (Mowing and Ag)<br />- Vehicle OEMs (John Deere, Toro, Jacobsen, etc)<br />- Research labs<br />- Mowing Dealers<br />- Ag Dealers<br />Engineers on Autonomous vehicles, GPS, path-planning<br />Asset sale<br />Our revenue stream derives from selling the equipment<br />Dealer discount <br />COGS seek a 50-60% Gross Margin<br />Heavy R&D investment <br />
  139. Found weeding in organic crops is HUGE problem; 50 - 75% of costs<br />Crews of 100s-1000<br />Back-breaking task<br />(Ilegal) labor harder to get <br />1-5 weedings per year/field<br />$250-3,500 per acre and increasing<br />Food contamination risk<br />
  140. Decision to make – mowing vs weeding<br />
  141. Autonomous vehiclesWEEDING<br />Dealers sell, installs and supports customer<br />Co. trains dealers, supports dealers<br />- Innovation<br />- Customer Education<br />- Dealer training<br />- Low density vegetable growers<br />- High density vegetable growers<br />- Thinning operations<br />- Conventional vegetables<br />We reduce operating cost<br />- Labor reduction (100 to 1)<br />- Reduced risk of contamination<br />- Mitigate labor availability concerns<br />- Ag Dealers<br />- Ag Service providers<br />- Research labs<br />- Ag Dealers<br />- Ag Service providers<br />Engineers on Machine Vision<br />Two problems:<br />- Identification<br />- Elimination<br />Asset sale<br />Our revenue stream derives from selling the equipment<br />Dealer discount <br />COGS seek a 50-60% Gross Margin<br />Heavy R&D investment <br />
  142. 1 Week – 1 CarrotBot<br />Confidential<br />
  143. CarrotBot<br />Machine Vision data collection platform<br />Monochrome & Color Cameras<br />Laser-line sweep (depth measurement)<br />Encoders (position/velocity)<br />Onboard data acquisition & power<br />CarrotBot 1.0<br />
  144. The Business Plan Canvas Updated<br /><ul><li>Farming conventions.
  145. Demo, demo, and demo!!
  146. Proximity is paramount
  147. Technology Design
  148. Marketing
  149. Demo and customer feedback
  150. Organic Farmers
  151. Weeding Service Providers
  152. Conventional Farmers
  153. Cost Reduction
  154. Remove labor force pains
  155. Eliminate bio-waste hazards
  156. Research Labs
  157. Equipment Manufacturers
  158. Distribution Network
  159. Service Providers
  160. IP – Patents
  161. Video Classifier Files
  162. Robust Technology
  163. Dealers
  164. Direct Service
  165. Indirect Service
  166. … then Dealers
  167. Asset Sale
  168. Direct Service with equipment rental
  169. … then Asset Sale</li></ul>Value-Driven<br />
  170. Visit Highlights<br />Above: Organic Carrots, 7wks. <br />Top right: Conventional carrots<br />Bottom Right: Very weedy. Will require multiple passes of hand weeding<br />
  171. Visit Highlights<br />Carrot vs. Weeds<br />Due to small root systems, carrots have no chance against weeds <br />
  172. Visit Highlights<br />Organic Broccoli, closely cultivated. Weeds close to plants are hand-picked<br />
  173. Visit Highlights<br />State of the Art in Weeding Technology for Organic Crops<br />
  174. Customer Hypothesis<br />Pre-Test<br />Hypothesis Confirmed<br /><ul><li> Growers interested in own equipment
  175. Industrial (10,000s of acres)
  176. Large (1,000s of acres)
  177. Willing to pay $100k for one unit
  178. Smaller growers (100s of acres) usually subcontract the labor services or rent equipment
  179. All purchases through local dealers
  180. Customer service is essential</li></ul>Post-Test<br />
  181. Customer Map #1 – Industrial Growers<br />Example: Bolthouse Farms – Large Industrial Carrot Producer – 8K acres/yr<br /><ul><li> Equipment Operator
  182. Local Farm Mgr
  183. Cliff Kirkpatrick, visited
  184. Director, Ag Technology
  185. Justin Grove, interviewed</li></ul>Equipment Operator<br /><ul><li> VP, Growing Operations
  186. CFO, CEO (Jeff Dunn)</li></ul>Cliff, Farm Mgr<br />
  187. Customer Map #2 – Service Providers<br />Example: Ag Services – Service Provider, Salinas Valley<br /><ul><li> Equipment Operator
  188. Grower
  189. Service Mgr</li></ul>Me (left), Marty (middle, Service Mgr), Doug (right, Grower)<br /><ul><li> ?? (service mgr’s boss)</li></li></ul><li>The Business Plan Canvas Updated<br /><ul><li>Farming conventions.
  190. Demo, demo, and demo!!
  191. Proximity is paramount
  192. Technology Design
  193. Marketing
  194. Demo and customer feedback
  195. Mid/Large Organic Farmers
  196. Agricultural corporations
  197. Weeding Service Providers
  198. Mid/Large Conventional Farmers
  199. Cost Reduction
  200. Remove labor force pains
  201. Eliminate bio-waste hazards
  202. Research Labs
  203. Equipment Manufacturers
  204. Distribution Network
  205. Service Providers
  206. IP – Patents
  207. Video Classifier Files
  208. Robust Technology
  209. Direct Service
  210. Indirect Service
  211. … then Dealers
  212. Direct Service with equipment rental
  213. ($1,500/d; 120d/yr )
  214. Low density: $1,500/d
  215. High density: $6,000/d</li></ul>Value-Driven<br />
  216. World Ag Expo interviews:the need is real and wide spread<br />10+ interviews at show<br />Everyone confirmed the need<br />Robocrop, UK based, crude competitor sells for $171 K<br />Revenue Stream<br />Mid to small growers prefer a service<br />Large growers prefer to buy, but OK with service until technology is proven<br />Charging for labor cost saved is OK, as we provide other benefits (food safety, labor availability)<br />Confidential<br />
  217. The Business Plan Canvas Updated<br /><ul><li>Farming conventions.
  218. Demo, demo, and demo!!
  219. Proximity is paramount
  220. Technology Design
  221. Marketing
  222. Demo and customer feedback
  223. Mid/Large Organic Farmers
  224. Agricultural corporations
  225. Weeding Service Providers
  226. Mid/Large Conventional Farmers
  227. Research Labs
  228. Equipment Manufacturer
  229. Distribution Network
  230. Service Providers
  231. 2 or 3 Key Farms
  232. Cost Reduction
  233. Remove labor force pains
  234. Eliminate bio-waste hazards
  235. IP – Patents
  236. Video Classifier Files
  237. Robust Technology
  238. Direct Service
  239. Indirect Service
  240. … then Dealers
  241. Direct Service with equipment rental
  242. Low density: $1,500/d
  243. High density: $6,000/d</li></ul>Value-Driven<br /><ul><li> R&D
  244. Bill of Materials
  245. Training & Service
  246. Sales</li></li></ul><li>Autonomous weeding - Final<br />Direct<br />- Provide high quality service at competitive price<br />- Innovation<br />- Customer Education<br />- Dealer training<br />- Low density vegetable growers<br />- High density vegetable growers<br />- Thinning operations<br />- Conventional vegetables<br />We reduce operating cost<br />- Labor reduction (100 to 1)<br />- Reduced risk of contamination<br />- Mitigate labor availability concerns<br />- Ag Service providers<br />- Research Institutes (eg UC Davis, Laser Zentrum Hannover)<br />- 3-4 key farms<br />Direct <br />- Alliance with service providers<br />- Eventually sell through dealers<br />Engineers on Machine Vision<br />Two problems:<br />- Identification<br />- Elimination<br />Service provision<br />- Charge by the acre with modifier according to weed density <br />- Eventually move to asset sale<br />Costs for service provision<br />COGS seek a 50-60% Gross Margin<br />Heavy R&D investment <br />
  247. Why Fighter Pilots Run Startups<br />
  248. No Surprises in an Airline<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Scheduled Airline<br /><ul><li> Scheduled
  249. Routine
  250. Burn rate preplanned</li></li></ul><li>Air-Air Combat is Constant Surprise<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Air-Air Combat<br /><ul><li> Uncertain environment
  251. Rapid, unanticipated changes
  252. Changes lead to disorientation
  253. Burn rate (time, fuel, bullets, $’s)limits window of opportunity</li></li></ul><li>Observe, Orient, Decide and Act:OODA Loop<br />John Boyd<br />
  254. Observe, Orient, Decide and Act:OODA Loop<br /><ul><li>Agility requires continuous interactions with the environment
  255. Winning requires constant assessment of change and ways to mitigate risk
  256. Iterating faster than competitors yields substantial advantage</li></ul> = Victory<br />
  257. 92<br />Boyd’s OODA Loop<br />Observe<br />Orient<br />Decide<br />Act<br />ImplicitGuidance& Control<br />ImplicitGuidance& Control<br />UnfoldingCircumstances<br />CulturalTraditions<br />Observations<br />GeneticHeritage<br />Decision(Hypothesis)<br />Analyses &Synthesis<br />Action(Test)<br />FeedForward<br />FeedForward<br />FeedForward<br />NewInformation<br />PreviousExperience<br />OutsideInformation<br />InteractionWithEnvironment<br />Interaction w/Environment<br />
  258. Customer Development = OODA Loop<br />Observe<br />Orient<br />Act<br />Decide <br />
  259. OODA Loop is Not an Intelligence Test<br /><ul><li>It’s about Agility
  260. It’s about Resilience
  261. It’s not about winning arguments inside the company
  262. Fighters pilots vs. military intelligence</li></li></ul><li>Am IFighter Pilot For a Startup?<br />
  263. Am I an Entrepreneur?Startup Personal Checklist<br />Are you comfortable with:<br />Chaos<br />Uncertainty<br />Are you:<br />Curious<br />Resilient<br />Agile<br />Passionate<br />Driven<br />Articulate<br />Tenacious<br />
  264. EntrepreneurshipYour Role in a Startup<br />Decreasing chaos/reward<br />Founder<br />Co-founder<br />Early Employee<br />Late Employee<br />They don’t require the same risk/personality profile<br />
  265. February 28, 2009<br />One candidate got a C in macroeconomics. “That’s troubling to me,” Ms. Mayer says. “Good students are good at all things.”Marissa MayerGoogle<br />
  266. The “Good Student”<br />Will go to work for Google, Microsoft, NokiaIBM or Apple<br />Successful tech entrepreneurs and grades have at best zero correlation<br />
  267. The Following People Would Never Have Been Hired by Marissa Mayer and Google<br />
  268. Thanks<br />www.steveblank.com<br />

×