1. July, 2011
Joshua Kerievsky
Industrial Logic, Inc.
Twitter: @JoshuaKerievsky
Prioritizing Happiness
Our Journey To Lean Startup
Copyright (C) 2011, Industrial Logic, Inc. All Rights Reserved.

2. Quality
Code

3. Quality Concept
Code to Cash

4. Quality Concept Becoming
Code to Cash Ultra Lean

5. Complexity & Coverage

6. 0
2
4
6
8
10
12
5/31/2
011
6/1/20
11
6/2/20
11
6/3/20
11
6/4/20
11
6/5/20
11
6/6/20
11
6/7/20
11
6/8/20
11
Continuous Deployment

7. Sales
$2,200,000
$1,650,000
$1,100,000 $2,005,000
$1,748,000
$550,000 $1,222,000
$316,000
$0 $80,000
2007 2008 2009 2010 2011

8. Concept
$
Cash

9. ? 
Hypothesis Happiness

10. Commoditizing Agility
Joshua Kerievsky
Agile 2005
July 2005
Copyright © 2005, Industrial Logic, Inc. All Rights Reserved.

11. Agile Transition Costs
$2,000,000
$1,800,000
Software
$1,600,000 Travel
$1,400,000 Coaching
$1,200,000 Training
$1,000,000
$800,000
$600,000
$400,000 $420,000
$200,000
$0 Assumes 16 days of
coaching/training
15 150 450 per 15-person
community at
Community Size industry rates.

12. Agile eLearning Albums

13. Agile eLearning Albums

14. Hand-Crafted Content

15. Picture = 1000 Words

16. Downloadable Exercises

17. Engaging Videos

18. Feedback Everywhere

19. What Sucks/Rocks?

20. Huh?

21. eLearning Sales
$2,000,000
$1,500,000
$1,000,000
$500,000
$80,000 $316,000
$0
2007 2008

22. Recession

26. Your Score: 62%

27. Game Changer
Your Score: 62%

28. Sales
$2,000,000
$1,500,000
$1,222,000
$1,000,000 $600,000
$500,000
$622,000
$316,000
$0 $80,000
2007 2008 2009

30. Box Set Subscriptions
1200 Subscriptions
1500
1000
500
0
January 2009 - December 2010

31. Kathy Sierra Wisdom

32. Content, Feedback, Cash
• Continuously improve content.
• Answer student questions fast.
• Rapidly fix bugs.
• Prioritize new, large deals.

33. Sales
$2,200,000
$1,650,000
$1,100,000 $2,005,000
$1,748,000
$550,000 $1,222,000
$316,000
$0 $80,000
2007 2008 2009 2010 2011

35. Text

36. Album Usage
Large Purchase
6% Completed: 531
15% Started: 1,256
Untouched: 6,633
Total Albums = 8,420
79%

37. Album Usage
Small Purchase
8% Completed: 10
17% Started: 21
Untouched: 94
Total Albums = 125
75%

38. Album Usage
Tiny Purchase
3% Completed: 1
30% Started: 9
Untouched: 20
67% Total Albums = 30

40. Album Usage
Completed: 227
25%
37% Started: 234
Untouched: 155
Total Albums = 616
38%

41. “A startup is a human
institution designed to
create a new product or
service under conditions
of extreme uncertainty.”
- Eric Ries

42. “A startup is a human
institution designed to
create a new product or
service under conditions
of extreme programming.”
- Not Eric Ries

44. Days

46. What discouraged
you from completing
your studies?

47. What discouraged
you from completing
your studies?
“Work Priorities”
“Other Work Priorities”
“Work Pressure”

49. “These courses are a huge
help for me; I switched into
coding from audio
production, so anything that
covers gaps in my knowledge
is great.”

50. Where Would You
Click To Go To Page 8?

53. 12%
88%
Correct (2)
Incorrect (15)

54. You are on page 20.
Where would you
click to quickly jump
to page 40?

55. Contents
Contents

56. Contents
Contents

57. Contents
18%
82%
Correct (3)
Incorrect (14)
Contents

58. You are on page 20.
Where would you
click to jump ahead
several pages?

59. Shop
View Table of Contents
View Table of Contents

60. Shop
View Table of Contents
View Table of Contents

61. Shop
View Table of Contents
23%
77%
Correct (3)
Incorrect (10)
View Table of Contents

62. You are on page 31.
Where would you
click to quickly jump
ahead several pages?

63. Shop
31
31

64. Shop
31
31

65. Shop
31
23%
77%
Correct (10)
Incorrect (3)
31

66. Know
Thy
User

67. What Is the Most
Popular Day of the
Week For Users
To Log In?

68. Wednesday?
8000
7258
6874
6000 6362
5719
4863
4000
2616
2000 2073
0
Monday Tuesday Wednesday Thursday Friday Saturday Sunday

70. ?

71. 0
22
44
66
88
110
36
May 1
, 2011
55
May 3
, 2011
5856
55
May 5
, 2011
45
20
May 7
, 2011
25
May 9
, 2011
64
May 1
54 52
1, 201
May 1 1
5858
3, 201
1
31
May 1
46
5, 201
1
103
May 1
7, 201
May 1 1
585956
9, 201
1
38
May 2
13
1, 201
1
24
May 2
53
3, 201
1
47
May 2
44
5, 201
1
55
May 2
52
7, 201
1
16
May 2
23
9, 201
May 3 1
1, 201
1
474945
43
Jun 2,
2011
32
18
Jun 4,
2011
24
37
Jun 6,
2011
5655
Jun 8,
2011
53
44
Jun 10
, 2011
2323
Jun 12
, 2011

73. Non-Starters

74. Non-Starters
Skimmers

75. Non-Starters
Skimmers
Dabblers

76. Non-Starters
Skimmers
Dabblers
Connectors

77. Non-Starters
Skimmers
Dabblers
Connectors
Finishers

78. Average Response Time

79. Average Response Time
5 hours

80. Average Response Time
5 hours 6 hours

81. Average Response Time
5 hours 6 hours 50 hours

82. Know
Thy
Ecosystem

83. Ecosystem Happiness

84. Ecosystem Happiness
User

85. Ecosystem Happiness
User
Evaluator

86. Ecosystem Happiness
User
Evaluator
Buyer

87. Ecosystem Happiness
User SW Manager
Evaluator
Buyer

88. Ecosystem Happiness
User SW Manager
Evaluator Distributor
Buyer

89. Ecosystem Happiness
User SW Manager
Evaluator Distributor
Buyer Coach

90. Ecosystem Happiness
User SW Manager
Evaluator Distributor
Buyer Coach
IL Developer IL Sales

91. Measuring Usage

92. Measuring Usage
32%
68%

93. Measuring Usage
32%
68%
Used
Not Used

94. Measuring Usage
32%
68%
Used
Not Used

95. Laura Klein
Lean UX Feature Fake
Expert

96. Laura Klein
Lean UX Feature Fake
Expert
16 users from 4 countries
are online right now.
Join the chat.

97. Laura Klein
Lean UX Feature Fake
Expert
16 users from 4 countries
are online right now.
22% Join the chat.
78%
Used
Not Used

98. Laura Klein
Lean UX Feature Fake
Expert
16 users from 4 countries
are online right now.
22% Join the chat.
78%
Used Unlikely Neutral Likely
Not Used 1 7 6

99. 0
400
800
1200
1600
Apr 1,
2011
Apr 4,
2011
Apr 6,
2011
Apr 8,
2011
Apr 10
, 2011
Apr 12
, 2011
Apr 14
, 2011
Apr 16
, 2011
Apr 18
, 2011
Apr 20
, 2011
Apr 22
, 2011
Apr 24
, 2011
Apr 26
, 2011
Apr 28
, 2011
May 1
, 2011
May 3
, 2011
Analyzing Page Views
May 5
, 2011
May 7
, 2011
May 9
, 2011
May 1
1, 201
1

100. 0
400
800
1200
1600
Apr 1,
2011
Apr 4,
2011
Apr 6,
2011
Apr 8,
2011
Launch
Apr 10
, 2011
Apr 12
, 2011
Apr 14
, 2011
Apr 16
, 2011
Apr 18
, 2011
Apr 20
, 2011
Apr 22
, 2011
Apr 24
, 2011
Apr 26
, 2011
Apr 28
, 2011
May 1
, 2011
May 3
, 2011
Analyzing Page Views
May 5
, 2011
May 7
, 2011
May 9
, 2011
May 1
1, 201
1

101. 0
400
800
1200
1600
Apr 1,
2011
Apr 4,
2011
Apr 6,
2011
Apr 8,
2011
Launch
Apr 10
, 2011
Apr 12
, 2011
Apr 14
, 2011
Apr 16
, 2011
Apr 18
, 2011
Apr 20
Training
, 2011
Apr 22
, 2011
Apr 24
, 2011
Apr 26
, 2011
Apr 28
, 2011
May 1
, 2011
May 3
, 2011
Analyzing Page Views
May 5
, 2011
May 7
, 2011
May 9
, 2011
May 1
1, 201
1

102. 0
400
800
1200
1600
Apr 1,
2011
Apr 4,
2011
Apr 6,
2011
Apr 8,
2011
Launch
Apr 10
, 2011
Apr 12
, 2011
Apr 14
, 2011
Apr 16
, 2011
Apr 18
, 2011
Apr 20
Training
, 2011
Apr 22
, 2011
Apr 24
, 2011
Apr 26
, 2011
Webinar
Coaching,
Apr 28
, 2011
May 1
, 2011
May 3
, 2011
Analyzing Page Views
May 5
, 2011
May 7
, 2011
May 9
, 2011
May 1
1, 201
1

103. 0
400
800
1200
1600
Apr 1,
2011
Apr 4,
2011
Apr 6,
2011
Apr 8,
2011
Launch
Apr 10
, 2011
Apr 12
, 2011
Apr 14
, 2011
Apr 16
, 2011
Apr 18
, 2011
Apr 20
Training
, 2011
Apr 22
, 2011
Apr 24
, 2011
Apr 26
, 2011
Webinar
Coaching,
Apr 28
, 2011
May 1
, 2011
May 3
, 2011
2nd
Analyzing Page Views
May 5
, 2011
Webinar
May 7
, 2011
May 9
, 2011
May 1
1, 201
1

104. 0
400
800
1200
1600
Apr 1,
2011
Apr 4,
2011
Apr 6,
2011
Apr 8,
2011
Launch
Apr 10
, 2011
Apr 12
, 2011
Apr 14
, 2011
Apr 16
, 2011
Apr 18
, 2011
Apr 20
Training
, 2011
Apr 22
, 2011
Apr 24
, 2011
Apr 26
, 2011
Webinar
Coaching,
Apr 28
, 2011
May 1
, 2011
May 3
, 2011
2nd
Analyzing Page Views
May 5
, 2011
Webinar
May 7
, 2011
May 9
, 2011
May 1
1, 201
Email
1
Student

105. Usage Improvements
∆ 6% ∆ 14%
24% 25% 29%
42%
62% 14% 56%
19%
29%
May 9 May 17 June 1

106. Happiness

107. Happiness
Hypothesis
Experiment

108. Happiness
Hypothesis
Plan
Experiment

109. Happiness
Build Hypothesis
Plan
Experiment

110. Happiness
Build Hypothesis
Plan
Experiment

111. Companies
That Take
Happiness
Seriously

112. Powered
by Service!

114. Love Metrics

115. Love Metrics
Delivered customer benefit?

116. Love Metrics
Delivered customer benefit?
Customers actively using it?

117. Love Metrics
Delivered customer benefit?
Customers actively using it?
Customers tellings
others about it?

118. Smiley.37Signals.com

121. “We Strive For
Happiness --
Not Satisfaction”

122. Bob Charette:
“Manage Your
Customer’s Risks”

123. July, 2011
Joshua Kerievsky
Industrial Logic, Inc.
Twitter: @JoshuaKerievsky,
@IndustrialLogic
Thank You!