Starting Lean - Running an Agile Enterprise

Russ Lewis
Russ LewisAgile coach & engagement lead (DevOps program) at a worldwide Investment Bank
••
Agile Process Improvement
Starting Lean
Based on Ash Maurya’s book Running Lean
Presented by
Russ ā€œThe Agiliserā€ Lewis
russ.lewis@storm-consulting.com
www.storm-consulting.com
Ā© Storm Consulting 2014. All rights reserved. Not to be reproduced without prior written consent.
1
Agile Process Improvement
www.storm-consulting.com
Ā© Storm Consulting 2014. All rights reserved. Not to be reproduced without prior written consent.
2
Agile Process Improvement
Agenda
Lean canvas
Prioritisation
Validation
Summary
Appendices
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
3
Agile Process Improvement
Summary of Running Lean
• Document your ā€œplan Aā€ using Lean Canvas
• Identify the riskiest parts of the plan
• Systematically test your plan
• Iterate
– Build, measure, learn
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
4
ā€œRunning Lean is a systematic process for iterating from plan A
to a plan that works.ā€
Ash Maurya, Running Lean
Agile Process Improvement
Lean Canvas
• Lean technique for mapping a business plan
– Fast, cheap, and without waste
– But customer is not involved
• Ideal for
– Defining a product / service for development
– Creating the business model for start-up
– Reviewing and refining a growth opportunity
• Output is a validated business roadmap
– ā€œInvestableā€ at stage 1 - family, friends and fools
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
5
Agile Process Improvement
Lean Canvas Template
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
6
Problem
Competition
Solution
Metrics
Unique Value
Proposition
High level
concept
Unfair
Advantage
Channels to
Market
Customer
Segments
Early adopters
Costs (fixed / direct) Revenue Streams
1
4
8
9
5
3 2
67
Agile Process Improvement
Model each Segment / Product
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
7
Agile Process Improvement
Agenda
Lean canvas template
Prioritisation
Validation
Summary
Appendices
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
8
Agile Process Improvement
Prioritisation of Models
• Select ONE business model to focus-on
– Assess your customer’s pain
• Value ā€œmust-haveā€ problems
– Favour channels that are easier to access
– Consider the margins & market size
– Feasibility
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
9
Agile Process Improvement
3 Sets of Risks
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
10
Problem
Competition
Solution
Metrics
Unique Value
Proposition
High level
concept
Unfair
Advantage
Channels to
Market
Customer
Segments
Early adopters
Costs (fixed / direct) Revenue Streams
1 2
4 3
3 1
24
21
3
4
Agile Process Improvement
ā€œRight Productā€ Risk
1. Problem worth solving?
2. Define Minimal Viable
Product (MVP)
3. Build MVP to validate &
demonstrate UVP
4. Verify at large scale
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
11
Problem
Competition
Solution
Metrics
Unique Value
Proposition
1 2
4
3
 Solution fits the Problem
Agile Process Improvement
ā€œPath to Customerā€ Risk
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
12
Unfair
Advantage
Channels to
Market
Customer
Segments
Early adopters
3
1
2
4
1. Identify who is feeling the pain
2. Who really wants an answer now?
3. Define the early channels
4. Identify scalable inbound channels
 Product fits the Market
Agile Process Improvement
ā€œIs it a Viable Businessā€ Risk
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
13
Problem
Competition
Costs (fixed / direct) Revenue Streams
24
1
3
1. Competition / alternatives / price
2. Test pricing through verbal commitment
3. Test pricing through sign-ups
4. Optimise cost structure
- to make the business work
 Scalable (investable) business
Agile Process Improvement
Agenda
Lean canvas template
Prioritisation
Validation
Summary
Appendices
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
14
Agile Process Improvement
Investing in the Next Level
• Move from ā€œgood ideaā€ to ā€œgood idea for a businessā€
– Requires entrepreneurship
• Running an Agile business
– Customer involvement essential
– Iteration inevitable
• Output is a validated business
– ā€œInvestableā€ at stage 2 by real investors
• Although you will likely turn them away
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
15
Agile Process Improvement
A Systematic Approach
1. Understand the problem via face to face (problem) interviews
– Problem worth solving?
– Who has this problem?
– How is it solved today?
2. Define the solution - conduct solution interviews
– Customer demo of mock-up or visualisation
– Will the solution work?
– Who are the early adopters?
– Does the pricing model work?
3. Concurrently build MVP, marketing site and define sales funnel
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
16
Agile Process Improvement
A Systematic Approach Contd
4. Validate qualitatively – MVP interview
– Build MVP and soft-launch to early adopters
– Do they recognise the UVP?
– Will they provide testimonials
– Are there enough pull / early adopters to support conversion learning?
– Define and monitor conversion funnel
5. Verify quantitatively
– Launch (MVP) to larger audience
– Tweak model to improve prospect acquisition
– Plan how the business will scale
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
17
Agile Process Improvement
Interview Guidelines
• Build a frame around learning, not pitching
– Mostly listening, bring someone to make notes
– Probe for evidence, not anecdotes
– Testable hypotheses
• Wide selection of interviewees initially
– Start with people you know, ask for introductions from them
– 30-60 interviewees
– Script email requests for interviews
– Outsource interview scheduling
• Follow a script
• 20-30 mins
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
18
Agile Process Improvement
Interview Validations
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
19
Problem
Current
solutions
Solution
Metrics
Unique Value
Proposition
High level
concept
Unfair
Advantage
Channels to
Market
Customer
Segments
Early adopters
Costs (fixed / direct) Revenue Streams
PI
PI
SIPI
SI
SI
Agile Process Improvement
Problem Interview Exit Criteria
• Can identify demographics of an early adopter
• Have a must-have problem
• Can describe how customers solve the problem today
• Have interviewed at least 10 people
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
20
Agile Process Improvement
Solution Interview Structure
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
21
Agile Process Improvement
Solution Interview Exit Criteria
• Can identify demographics of an early adopter
• Have a must-have problem
• Can define minimum features needed to solve this problem
• Have a price the customer is willing to pay
• Can build a business around it
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
22
Agile Process Improvement
Problem Interview Structure
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
23
Agile Process Improvement
Distil UVP
• Learning to date refines the Unique Value Propositions
– Informs the Unfair Advantage too
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
24
Problem
Current
solutions
Solution
Metrics
Unique Value
Proposition
High level
concept
Unfair
Advantage
Channels to
Market
Customer
Segments
Early adopters
PI
PI
SIPI
SI
Agile Process Improvement
Define, Develop & Deliver MVP
• Define Minimum Viable Product
– Must-have features only
– Everything else goes on the backlog
– Resist new features
• Features must be ā€œpulledā€
– By customers
• Focus on delivering the minimum
– Faster delivery = rapid learning
– This is a learning stage
– Use continuous deployment
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
25
Problem
Current
solutions
Solution
PI
PI
SI
Agile Process Improvement
Sales Funnel - ā€œPirate Metricsā€
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
26
Acquisition
Activation
Retention
Revenue
Referral
Users find you
Great first experience
Users return for more
Getting paid
Users tell other users
Pirate Metrics are Dave McClure’s term – they spell AARRR
Agile Process Improvement
Acquisition Sub-funnel
• Acquisition involves
marketing website
• Customer path
– From 1st landing to
interested prospect
• 1 Page per step
– Primary call to
action = next step
– Secondary call =
more information
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
27
Agile Process Improvement
Activation Sub-funnel
• Activation is
customer’s first activity
• Architect the flow for
learning
– Iterate to get it right
– Optimise it later
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
28
Agile Process Improvement
Track Metrics
• Track acquisition, activation and revenue
• ā€œCohortsā€ track specific activities
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
29
Agile Process Improvement
MVP Interview
• Last of the three start-up validation interviews
– Final learning stage before scale-up
– Validation of a good business idea
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
30
Agile Process Improvement
MVP Interview Validations
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
31
Problem
Current
solutions
Solution
Metrics
Unique Value
Proposition
High level
concept
Unfair
Advantage
Channels to
Market
Customer
Segments
Early adopters
Costs (fixed / direct) Revenue Streams
MVP
I
MVP
I
MVP
I
Agile Process Improvement
MVP Interview Structure
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
32
Agile Process Improvement
MVP Interview Exit Criteria
• MVP demonstrates and delivers UVP
• Price is right
• Validate UVP on marketing website
• Customers make it through to activation
• Channels will drive sufficient acquisitions
• MVP will drive sufficient conversions to revenue
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
33
Agile Process Improvement
Agenda
Lean canvas template
Prioritisation
Validation
Summary
Appendices
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
34
Agile Process Improvement
Summary
• Running an Agile Business is a learning process
– Plan A is a starting point
– It’s OK to be wrong, as long as you learn from it
– Always update your canvas
• Customer engagement is crucial
– Validate assumptions
– Improve messages
– Prove the market
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
35
Agile Process Improvement
Calls to Action
• Buy the book – it’s an inspiration
– Includes introduction email, and full interview scripts
– Ash gets the royalties for his work and the graphics I have shown
• Tell me the problems you are facing right now
– I’m a registered and approved GrowthAccelerator coach
• Sign-up for the Storm Consulting blog
– Loaded with Agile goodness for firms of all sizes and experience
www.storm-consulting.com
Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent.
36
1 of 36

Recommended

Running Lean: Op zoek naar een ondernemingsmodel dat werkt by
Running Lean: Op zoek naar een ondernemingsmodel dat werktRunning Lean: Op zoek naar een ondernemingsmodel dat werkt
Running Lean: Op zoek naar een ondernemingsmodel dat werktPeter Rutten
967 views•61 slides
Life's too short to build something nobody wants by
Life's too short to build something nobody wantsLife's too short to build something nobody wants
Life's too short to build something nobody wantsMartin Christensen
2.6K views•17 slides
Running lean at myhammer.de (leanstartupmeetup berlin july 2011, #LSMupBLN au... by
Running lean at myhammer.de (leanstartupmeetup berlin july 2011, #LSMupBLN au...Running lean at myhammer.de (leanstartupmeetup berlin july 2011, #LSMupBLN au...
Running lean at myhammer.de (leanstartupmeetup berlin july 2011, #LSMupBLN au...Gregor Gross
1.5K views•35 slides
Running Lean in some slides by
Running Lean in some slidesRunning Lean in some slides
Running Lean in some slidesThiago Paiva
2.2K views•23 slides
Running Lean: Iterate from Plan A to a Plan that Works by
Running Lean: Iterate from Plan A to a Plan that WorksRunning Lean: Iterate from Plan A to a Plan that Works
Running Lean: Iterate from Plan A to a Plan that WorksLauren Byrd
895 views•21 slides
IA Van innovatief idee tot succesvol product (IC O-VL) Sessie 1 Peter Rutten by
IA Van innovatief idee tot succesvol product (IC O-VL) Sessie 1 Peter RuttenIA Van innovatief idee tot succesvol product (IC O-VL) Sessie 1 Peter Rutten
IA Van innovatief idee tot succesvol product (IC O-VL) Sessie 1 Peter RuttenIkinnoveer
620 views•64 slides

More Related Content

Viewers also liked

Unlocking India’s gaming potential: The next billion gamers by 2022 by
Unlocking India’s gaming potential: The next billion gamers by 2022Unlocking India’s gaming potential: The next billion gamers by 2022
Unlocking India’s gaming potential: The next billion gamers by 2022Chandan Singh
293 views•14 slides
Web by
WebWeb
WebVivi1427
259 views•5 slides
Conference powerpoint by
Conference powerpointConference powerpoint
Conference powerpointsunjungle
274 views•7 slides
Lean canvas 25 februari by
Lean canvas 25 februariLean canvas 25 februari
Lean canvas 25 februariEvert Moolhuijsen
1.3K views•68 slides
Running lean - YearOneLabs, Montreal by
Running lean - YearOneLabs, MontrealRunning lean - YearOneLabs, Montreal
Running lean - YearOneLabs, MontrealAsh Maurya
1.9K views•53 slides
20141013ę‰‹ę·˜ę·±åŗ¦ē”Øęˆ·é€›č”Œäøŗē”Øęˆ·ä½“éŖŒē ”ē©¶ęŠ„å‘Šv1.0 by
20141013ę‰‹ę·˜ę·±åŗ¦ē”Øęˆ·é€›č”Œäøŗē”Øęˆ·ä½“éŖŒē ”ē©¶ęŠ„å‘Šv1.020141013ę‰‹ę·˜ę·±åŗ¦ē”Øęˆ·é€›č”Œäøŗē”Øęˆ·ä½“éŖŒē ”ē©¶ęŠ„å‘Šv1.0
20141013ę‰‹ę·˜ę·±åŗ¦ē”Øęˆ·é€›č”Œäøŗē”Øęˆ·ä½“éŖŒē ”ē©¶ęŠ„å‘Šv1.0Jingguo Jiang
460 views•40 slides

Viewers also liked(14)

Unlocking India’s gaming potential: The next billion gamers by 2022 by Chandan Singh
Unlocking India’s gaming potential: The next billion gamers by 2022Unlocking India’s gaming potential: The next billion gamers by 2022
Unlocking India’s gaming potential: The next billion gamers by 2022
Chandan Singh•293 views
Web by Vivi1427
WebWeb
Web
Vivi1427•259 views
Conference powerpoint by sunjungle
Conference powerpointConference powerpoint
Conference powerpoint
sunjungle•274 views
Running lean - YearOneLabs, Montreal by Ash Maurya
Running lean - YearOneLabs, MontrealRunning lean - YearOneLabs, Montreal
Running lean - YearOneLabs, Montreal
Ash Maurya•1.9K views
20141013ę‰‹ę·˜ę·±åŗ¦ē”Øęˆ·é€›č”Œäøŗē”Øęˆ·ä½“éŖŒē ”ē©¶ęŠ„å‘Šv1.0 by Jingguo Jiang
20141013ę‰‹ę·˜ę·±åŗ¦ē”Øęˆ·é€›č”Œäøŗē”Øęˆ·ä½“éŖŒē ”ē©¶ęŠ„å‘Šv1.020141013ę‰‹ę·˜ę·±åŗ¦ē”Øęˆ·é€›č”Œäøŗē”Øęˆ·ä½“éŖŒē ”ē©¶ęŠ„å‘Šv1.0
20141013ę‰‹ę·˜ę·±åŗ¦ē”Øęˆ·é€›č”Œäøŗē”Øęˆ·ä½“éŖŒē ”ē©¶ęŠ„å‘Šv1.0
Jingguo Jiang•460 views
Schumpeterian Theory on Entrepreneurship!!! by Kalio Soye Robbie
Schumpeterian Theory on Entrepreneurship!!!Schumpeterian Theory on Entrepreneurship!!!
Schumpeterian Theory on Entrepreneurship!!!
Kalio Soye Robbie•313 views
Photography 2 class 4 pp by Laura Sita
Photography 2 class 4 pp Photography 2 class 4 pp
Photography 2 class 4 pp
Laura Sita•244 views
Running lean startup with agile 20130810 by Kulawat Wongsaroj
Running lean startup with agile 20130810Running lean startup with agile 20130810
Running lean startup with agile 20130810
Kulawat Wongsaroj•2.5K views
Running lean by INNOGYZER.com
Running leanRunning lean
Running lean
INNOGYZER.com•1.4K views
Lean startup by Ramon
Lean startupLean startup
Lean startup
Ramon•646 views
Emily y natalia 6a by Nata0326
Emily y natalia 6aEmily y natalia 6a
Emily y natalia 6a
Nata0326•149 views
Why User Experience? by Interakt
Why User Experience?Why User Experience?
Why User Experience?
Interakt•9.1K views

Recently uploaded

sample.potx by
sample.potxsample.potx
sample.potxMaryna Yurchenko
24 views•3 slides
VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 11/2023 ISSUE by
VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 11/2023 ISSUEVCOSA - VIETNAM COTTON - YARN MARKET REPORT - 11/2023 ISSUE
VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 11/2023 ISSUEVietnam Cotton & Spinning Association
37 views•26 slides
Giampietro_DIG Summit v1.2.pptx by
Giampietro_DIG Summit v1.2.pptxGiampietro_DIG Summit v1.2.pptx
Giampietro_DIG Summit v1.2.pptxbradgallagher6
15 views•11 slides
Amazing Opportunities: PCD Pharma Franchise in Kerala.pptx by
Amazing Opportunities: PCD Pharma Franchise in Kerala.pptxAmazing Opportunities: PCD Pharma Franchise in Kerala.pptx
Amazing Opportunities: PCD Pharma Franchise in Kerala.pptxSaphnixMedicure1
25 views•11 slides
Navigating the Complexity of Derivatives Valuation šŸ“ˆ by
Navigating the Complexity of Derivatives Valuation šŸ“ˆNavigating the Complexity of Derivatives Valuation šŸ“ˆ
Navigating the Complexity of Derivatives Valuation šŸ“ˆValAdvisor
17 views•6 slides
Netflix Inc. by
Netflix Inc.Netflix Inc.
Netflix Inc.125071027
14 views•11 slides

Recently uploaded(20)

Giampietro_DIG Summit v1.2.pptx by bradgallagher6
Giampietro_DIG Summit v1.2.pptxGiampietro_DIG Summit v1.2.pptx
Giampietro_DIG Summit v1.2.pptx
bradgallagher6•15 views
Amazing Opportunities: PCD Pharma Franchise in Kerala.pptx by SaphnixMedicure1
Amazing Opportunities: PCD Pharma Franchise in Kerala.pptxAmazing Opportunities: PCD Pharma Franchise in Kerala.pptx
Amazing Opportunities: PCD Pharma Franchise in Kerala.pptx
SaphnixMedicure1•25 views
Navigating the Complexity of Derivatives Valuation šŸ“ˆ by ValAdvisor
Navigating the Complexity of Derivatives Valuation šŸ“ˆNavigating the Complexity of Derivatives Valuation šŸ“ˆ
Navigating the Complexity of Derivatives Valuation šŸ“ˆ
ValAdvisor•17 views
Netflix Inc. by 125071027
Netflix Inc.Netflix Inc.
Netflix Inc.
125071027•14 views
Promoting the SEO to the C-Suite by Ash Nallawalla
Promoting the SEO to the C-SuitePromoting the SEO to the C-Suite
Promoting the SEO to the C-Suite
Ash Nallawalla•14 views
The Talent Management Navigator Performance Management by Seta Wicaksana
The Talent Management Navigator Performance ManagementThe Talent Management Navigator Performance Management
The Talent Management Navigator Performance Management
Seta Wicaksana•39 views
2023 Tracking Volunteers in Bloomerang.pdf by Bloomerang
2023 Tracking Volunteers in Bloomerang.pdf2023 Tracking Volunteers in Bloomerang.pdf
2023 Tracking Volunteers in Bloomerang.pdf
Bloomerang•25 views
Bloomerang_Forecasting Your Fundraising Revenue 2024.pptx.pdf by Bloomerang
Bloomerang_Forecasting Your Fundraising Revenue 2024.pptx.pdfBloomerang_Forecasting Your Fundraising Revenue 2024.pptx.pdf
Bloomerang_Forecasting Your Fundraising Revenue 2024.pptx.pdf
Bloomerang•194 views
Taryn_Stejskal_The 5 Practices of Highly Resilient People 30 Nov 2023 Officer... by bradgallagher6
Taryn_Stejskal_The 5 Practices of Highly Resilient People 30 Nov 2023 Officer...Taryn_Stejskal_The 5 Practices of Highly Resilient People 30 Nov 2023 Officer...
Taryn_Stejskal_The 5 Practices of Highly Resilient People 30 Nov 2023 Officer...
bradgallagher6•25 views
yasin-ppt.pptx by samanolia75
yasin-ppt.pptxyasin-ppt.pptx
yasin-ppt.pptx
samanolia75•21 views
Navigating EUDR Compliance within the Coffee Industry by Peter Horsten
Navigating EUDR Compliance within the Coffee IndustryNavigating EUDR Compliance within the Coffee Industry
Navigating EUDR Compliance within the Coffee Industry
Peter Horsten•68 views
3Q23_EN.pdf by irhcs
3Q23_EN.pdf3Q23_EN.pdf
3Q23_EN.pdf
irhcs•17 views
davood_keshavarz_david_keshavarz_criminal_conviction_prison_sentence_judgemen... by morshedislam3
davood_keshavarz_david_keshavarz_criminal_conviction_prison_sentence_judgemen...davood_keshavarz_david_keshavarz_criminal_conviction_prison_sentence_judgemen...
davood_keshavarz_david_keshavarz_criminal_conviction_prison_sentence_judgemen...
morshedislam3•22 views

Starting Lean - Running an Agile Enterprise

  • 1. Agile Process Improvement Starting Lean Based on Ash Maurya’s book Running Lean Presented by Russ ā€œThe Agiliserā€ Lewis russ.lewis@storm-consulting.com www.storm-consulting.com Ā© Storm Consulting 2014. All rights reserved. Not to be reproduced without prior written consent. 1
  • 2. Agile Process Improvement www.storm-consulting.com Ā© Storm Consulting 2014. All rights reserved. Not to be reproduced without prior written consent. 2
  • 3. Agile Process Improvement Agenda Lean canvas Prioritisation Validation Summary Appendices www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 3
  • 4. Agile Process Improvement Summary of Running Lean • Document your ā€œplan Aā€ using Lean Canvas • Identify the riskiest parts of the plan • Systematically test your plan • Iterate – Build, measure, learn www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 4 ā€œRunning Lean is a systematic process for iterating from plan A to a plan that works.ā€ Ash Maurya, Running Lean
  • 5. Agile Process Improvement Lean Canvas • Lean technique for mapping a business plan – Fast, cheap, and without waste – But customer is not involved • Ideal for – Defining a product / service for development – Creating the business model for start-up – Reviewing and refining a growth opportunity • Output is a validated business roadmap – ā€œInvestableā€ at stage 1 - family, friends and fools www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 5
  • 6. Agile Process Improvement Lean Canvas Template www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 6 Problem Competition Solution Metrics Unique Value Proposition High level concept Unfair Advantage Channels to Market Customer Segments Early adopters Costs (fixed / direct) Revenue Streams 1 4 8 9 5 3 2 67
  • 7. Agile Process Improvement Model each Segment / Product www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 7
  • 8. Agile Process Improvement Agenda Lean canvas template Prioritisation Validation Summary Appendices www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 8
  • 9. Agile Process Improvement Prioritisation of Models • Select ONE business model to focus-on – Assess your customer’s pain • Value ā€œmust-haveā€ problems – Favour channels that are easier to access – Consider the margins & market size – Feasibility www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 9
  • 10. Agile Process Improvement 3 Sets of Risks www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 10 Problem Competition Solution Metrics Unique Value Proposition High level concept Unfair Advantage Channels to Market Customer Segments Early adopters Costs (fixed / direct) Revenue Streams 1 2 4 3 3 1 24 21 3 4
  • 11. Agile Process Improvement ā€œRight Productā€ Risk 1. Problem worth solving? 2. Define Minimal Viable Product (MVP) 3. Build MVP to validate & demonstrate UVP 4. Verify at large scale www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 11 Problem Competition Solution Metrics Unique Value Proposition 1 2 4 3  Solution fits the Problem
  • 12. Agile Process Improvement ā€œPath to Customerā€ Risk www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 12 Unfair Advantage Channels to Market Customer Segments Early adopters 3 1 2 4 1. Identify who is feeling the pain 2. Who really wants an answer now? 3. Define the early channels 4. Identify scalable inbound channels  Product fits the Market
  • 13. Agile Process Improvement ā€œIs it a Viable Businessā€ Risk www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 13 Problem Competition Costs (fixed / direct) Revenue Streams 24 1 3 1. Competition / alternatives / price 2. Test pricing through verbal commitment 3. Test pricing through sign-ups 4. Optimise cost structure - to make the business work  Scalable (investable) business
  • 14. Agile Process Improvement Agenda Lean canvas template Prioritisation Validation Summary Appendices www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 14
  • 15. Agile Process Improvement Investing in the Next Level • Move from ā€œgood ideaā€ to ā€œgood idea for a businessā€ – Requires entrepreneurship • Running an Agile business – Customer involvement essential – Iteration inevitable • Output is a validated business – ā€œInvestableā€ at stage 2 by real investors • Although you will likely turn them away www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 15
  • 16. Agile Process Improvement A Systematic Approach 1. Understand the problem via face to face (problem) interviews – Problem worth solving? – Who has this problem? – How is it solved today? 2. Define the solution - conduct solution interviews – Customer demo of mock-up or visualisation – Will the solution work? – Who are the early adopters? – Does the pricing model work? 3. Concurrently build MVP, marketing site and define sales funnel www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 16
  • 17. Agile Process Improvement A Systematic Approach Contd 4. Validate qualitatively – MVP interview – Build MVP and soft-launch to early adopters – Do they recognise the UVP? – Will they provide testimonials – Are there enough pull / early adopters to support conversion learning? – Define and monitor conversion funnel 5. Verify quantitatively – Launch (MVP) to larger audience – Tweak model to improve prospect acquisition – Plan how the business will scale www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 17
  • 18. Agile Process Improvement Interview Guidelines • Build a frame around learning, not pitching – Mostly listening, bring someone to make notes – Probe for evidence, not anecdotes – Testable hypotheses • Wide selection of interviewees initially – Start with people you know, ask for introductions from them – 30-60 interviewees – Script email requests for interviews – Outsource interview scheduling • Follow a script • 20-30 mins www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 18
  • 19. Agile Process Improvement Interview Validations www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 19 Problem Current solutions Solution Metrics Unique Value Proposition High level concept Unfair Advantage Channels to Market Customer Segments Early adopters Costs (fixed / direct) Revenue Streams PI PI SIPI SI SI
  • 20. Agile Process Improvement Problem Interview Exit Criteria • Can identify demographics of an early adopter • Have a must-have problem • Can describe how customers solve the problem today • Have interviewed at least 10 people www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 20
  • 21. Agile Process Improvement Solution Interview Structure www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 21
  • 22. Agile Process Improvement Solution Interview Exit Criteria • Can identify demographics of an early adopter • Have a must-have problem • Can define minimum features needed to solve this problem • Have a price the customer is willing to pay • Can build a business around it www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 22
  • 23. Agile Process Improvement Problem Interview Structure www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 23
  • 24. Agile Process Improvement Distil UVP • Learning to date refines the Unique Value Propositions – Informs the Unfair Advantage too www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 24 Problem Current solutions Solution Metrics Unique Value Proposition High level concept Unfair Advantage Channels to Market Customer Segments Early adopters PI PI SIPI SI
  • 25. Agile Process Improvement Define, Develop & Deliver MVP • Define Minimum Viable Product – Must-have features only – Everything else goes on the backlog – Resist new features • Features must be ā€œpulledā€ – By customers • Focus on delivering the minimum – Faster delivery = rapid learning – This is a learning stage – Use continuous deployment www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 25 Problem Current solutions Solution PI PI SI
  • 26. Agile Process Improvement Sales Funnel - ā€œPirate Metricsā€ www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 26 Acquisition Activation Retention Revenue Referral Users find you Great first experience Users return for more Getting paid Users tell other users Pirate Metrics are Dave McClure’s term – they spell AARRR
  • 27. Agile Process Improvement Acquisition Sub-funnel • Acquisition involves marketing website • Customer path – From 1st landing to interested prospect • 1 Page per step – Primary call to action = next step – Secondary call = more information www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 27
  • 28. Agile Process Improvement Activation Sub-funnel • Activation is customer’s first activity • Architect the flow for learning – Iterate to get it right – Optimise it later www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 28
  • 29. Agile Process Improvement Track Metrics • Track acquisition, activation and revenue • ā€œCohortsā€ track specific activities www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 29
  • 30. Agile Process Improvement MVP Interview • Last of the three start-up validation interviews – Final learning stage before scale-up – Validation of a good business idea www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 30
  • 31. Agile Process Improvement MVP Interview Validations www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 31 Problem Current solutions Solution Metrics Unique Value Proposition High level concept Unfair Advantage Channels to Market Customer Segments Early adopters Costs (fixed / direct) Revenue Streams MVP I MVP I MVP I
  • 32. Agile Process Improvement MVP Interview Structure www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 32
  • 33. Agile Process Improvement MVP Interview Exit Criteria • MVP demonstrates and delivers UVP • Price is right • Validate UVP on marketing website • Customers make it through to activation • Channels will drive sufficient acquisitions • MVP will drive sufficient conversions to revenue www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 33
  • 34. Agile Process Improvement Agenda Lean canvas template Prioritisation Validation Summary Appendices www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 34
  • 35. Agile Process Improvement Summary • Running an Agile Business is a learning process – Plan A is a starting point – It’s OK to be wrong, as long as you learn from it – Always update your canvas • Customer engagement is crucial – Validate assumptions – Improve messages – Prove the market www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 35
  • 36. Agile Process Improvement Calls to Action • Buy the book – it’s an inspiration – Includes introduction email, and full interview scripts – Ash gets the royalties for his work and the graphics I have shown • Tell me the problems you are facing right now – I’m a registered and approved GrowthAccelerator coach • Sign-up for the Storm Consulting blog – Loaded with Agile goodness for firms of all sizes and experience www.storm-consulting.com Ā© Storm Consulting 2013. All rights reserved. Not to be reproduced without prior written consent. 36