iGap 2013, Assumptions & Experiments Workshop


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Slides from the one-day workshop presented 2/14/2013 in Dublin, Ireland

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iGap 2013, Assumptions & Experiments Workshop

  1. 1. Assumptions, Experiments and MVPs CORE SKILLS FOR LEAN STARTUPS iGap 2012 Dublin, Ireland© LUXR.CO February 2013
  2. 2. © LUXR.CO February 2013
  3. 3. Ask yourself: What 3 assumptions about your customers do you have that, if you are wrong, your business will fail. Write down 3.© LUXR.CO February 2013
  4. 4. Who’s in the room? LIGHTNING FAST! Context (startup, enterprise, consultancy) Role (biz/product, developer, design) Stand up Say your name Weird/Awesome© LUXR.CO February 2013
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  6. 6. LUXr is the trusted coach that helps company founders through their hardest business problems. The LUXr Core Curriculum helps startups deliver products that customers want, need and love to buy. info@luxr.co • http://luxr.co twitter: @luxrco • www.facebook.com/LUXrInc© LUXR.CO February 2013
  7. 7. TWEET! Janice Fraser @LUXRCO @clevergirl www.luxr.co© LUXR.CO February 2013
  8. 8. This is not... A class on how to produce (How do you know itʼs awesome?) an awesome UI A session on making (How do you know these arenʼt production wireframes or a waste of valuable time?) photoshop comps A “perfect approach” or a (1000s of entrepreneurs have rigid point of view on what used these techniques to makes “Great UX.” discover an ideal UX.)© LUXR.CO February 2013
  9. 9. This is not... dogma© LUXR.CO February 2013
  10. 10. Business Model Canvas? Lean Canvas? Sure, either one.© LUXR.CO February 2013
  11. 11. Disclaimer I am not an expert in your business. Only you can be the expert in your business. My job is: • to ask the unasked questions; • to challenge assumptions; • and give you tools to succeed.© LUXR.CO February 2013
  12. 12. Today... My perspective on Lean Startup & UX 3 Workshops Assumptions Experiments “Smallification” And if we have time… MVP Pivot Practice!© LUXR.CO February 2013
  13. 13. Lean Startup (in 15 min)© LUXR.CO February 2013
  14. 14. Lean Startup is NOT Cheap Startup Fast Startup Shortcut Startup© LUXR.CO February 2013
  15. 15. Lean Startup is NOT Low-Ambition© LUXR.CO February 2013
  16. 16. Lean Startup is NOT THE OPPOSITE OF FAT STARTUP© LUXR.CO February 2013
  17. 17. Lean Startup is... An approach for building companies that are creating new products and services in situations of extreme uncertainty. The approach advocates creating small products that test the entrepreneurʼs assumptions, and using customer feedback to evolve the product, thereby reducing waste.© LUXR.CO February 2013
  18. 18. THE NEW CLASSICS 1. List your assumptions. 2. Understand your customers. 3. Experiment. 4. Adjust direction based on evidence.© LUXR.CO February 2013
  19. 19. Get out of the building© LUXR.CO February 2013
  20. 20. CUSTOMER DEVELOPMENT 1. Validate the market for your idea and build a product that solves customersʼ needs. 2. Find a repeatable, cost-effective model for acquiring customers. 3. Acquire customers. 4. Deploy the right organization for scaling.© LUXR.CO February 2013
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  23. 23. A pitch is not customer development© LUXR.CO February 2013
  24. 24. The Influence of Agile “The courage to speak truths, pleasant or unpleasant, fosters communication and trust. “The courage to discard failing solutions and seek new ones encourages simplicity. “The courage to seek real, concrete answers creates feedback.” —Kent Beck© LUXR.CO February 2013
  25. 25. Build measure learn!© LUXR.CO February 2013
  26. 26. © LUXR.CO February 2013
  27. 27. Lean Startup advocates experiments & learning© LUXR.CO February 2013
  28. 28. }© LUXR.CO February 2013
  29. 29. Victory is measured in learning.© LUXR.CO February 2013
  30. 30. This will change how you think about your role, your work, your team, your process.© LUXR.CO February 2013
  31. 31. Risk (unvalidated effort) Plot the difference MAKE release MAKE release MAKE release THINK time© LUXR.CO February 2013
  32. 32. Risk (unvalidated effort) Lots of little wiggles time© LUXR.CO February 2013
  33. 33. Each wiggle is a learning cycle. unvalidated effort MAKE MAKE MAKE release THINK THINK time CHECK© LUXR.CO February 2013
  34. 34. How will you learn? Quantitative Qualitative Generative Surveys Interviews Evaluative Metrics Usability© LUXR.CO February 2013
  35. 35. Not an MVP for lemonade© LUXR.CO February 2013
  36. 36. User Experience© LUXR.CO February 2013
  37. 37. User Experience is... A personʼs perceptions and responses that result from the use or anticipated use of a product, service or system. product UI UX via Ed Lea: http://design.org/blog/difference-between-ux-and-ui-subtleties-explained-cereal© LUXR.CO February 2013
  38. 38. UX cycles = Lean Startup learning loops THINK MAKE Reduc cycle e time, not build time CHECK Generative Research • Ideation • Mental models • Participatory Design • Contextual Inquiry • Concept Maps • THINK Behavior Models • Test Results • Competitive Analysis MAKE Personas • Sketches • Prototypes • Wireframes • Value Prop • Landing View • Hypotheses • Comps • Deployed Code CHECK Evaluative Research • A/B Testing • Site Analytics • Usability Testing • Funnel Analysis • Interruptive Surveys© LUXR.CO February 2013
  39. 39. Design > UI THINK MAKE CHECK Users 1. I need... Needs 2. I want... 3. My goal is... why what how Mary can... Business thinking goes here BUILD Uses MEASURE LEARN Features Sketches, wireframes, pixels This Week Prototypes User Stories Themed Releases© LUXR.CO February 2013
  40. 40. UX brings 10* years of experience, methods, and patterns of work. *20, 30, 50 years© LUXR.CO February 2013
  41. 41. UX people are EXPERTS at “getting out of the building”© LUXR.CO February 2013
  42. 42. The setup.© LUXR.CO February 2013
  43. 43. The job.© LUXR.CO February 2013
  44. 44. Workshop Assumptions My assumption: You donʼt want to waste your time, your career, your patience, or your friendship building something that has no chance of success.© LUXR.CO February 2013
  45. 45. Workshop Assumptions Use a sharpie, work independently, write one idea per sticky. Write down 10 assumptions that you & your team must validate in order to be sure the business idea is a good one. Underline the one word or phrase that summarizes each assumption. Post the teams assumptions on the wall, do a quiet read. Discuss to understand. Stack any duplicates. Divide into 2 piles: Will it kill the company if weʼre wrong? Stack Rank the top pile. Choose the top assumption to move forward into the next step.© LUXR.CO February 2013
  46. 46. Examples 1. Many people will pay to have someone get dogfood or have odd jobs done. 2. People want to run errands like getting dogfood. 3. We believe it is legal in the country of operation 4. This service is useful for disorganized people. 5. This service is useful to time-poor people. 6. 7. 8. 9. 10.© LUXR.CO February 2013
  47. 47. Things To Note Broad ideation helps us find the best thoughts. For fast ideation have a specific prompt, work independently, use paper and pen, set a time limit, and define a number of ideas to create. Ideation applies to many logical thought processes, not just identifying features. Ideation must be followed by efficient decision-making. Arbitrary decisions are necessary when you have little or no data. For best results, do ideation with multiple people. Multi-person ideation relieves pressure for anyone to be a “genius”. Independent ideation, followed by group understanding, followed by fast decision-making is a uniquely efficient pattern of work.© LUXR.CO February 2013
  48. 48. Workshop Experiments Work independently, use a sharpie and white paper. At the top of the paper, state the assumption as hypothesis that can be proved or disproved. Design an experiment to learn if this is true. Briefly describe it. State how you will know if the hypothesis is valid or invalid. This can be quantitative evidence or qualitative. How much time/money/effort will it take? Tape them all to the walls. Discuss as a group.© LUXR.CO February 2013
  49. 49. Experiment Framework Every experiment has three parts: 1. A hypothesis that is provable/disprovable 2. The experiment itself; the thing you build 3. An indicator of result For Example: We believe people like [customer type] have a need for [need/action/ behavior]. The smallest thing we can do to prove that need is [experiment]. We will know we have succeeded when [quantitative/measurable outcome] or [qualitative/observable outcome].© LUXR.CO February 2013
  50. 50. Example Experiments measurable/ assumption experiment observable outcome Prevail upon friend who runs 300- 5% of employees will make a busy people need a service to person company hire. 1 repeat booking help them get menial stuff done Set up a “shop” in reception and 2 wks see if we can get jobs. ad in 10 different offices, diff same 2 weeks. types of companies© LUXR.CO February 2013
  51. 51. Workshop Smallification Take an experiment that was not your own. On a fresh sheet of paper, redesign the experiment: WHAT would you do to get approximately the same learning... ...IN 2 DAYS? ...IN 2 WEEKS? ...IN 2 MONTHS? [each person on the team chooses one time scale] Present your experiment proposal to your team. Decide which experiment to run.© LUXR.CO February 2013
  52. 52. More Things To Note Progress not a function of the quality, size, or # of releases. Smallification can be done by adjusting scope or fidelity. Smaller/faster experiments are usually better. Behavioral experiments are usually better. Small, behavioral experiments are usually best. Founders must balance size/quality and speed of learning. The best option is often not obvious. There is usually insufficient data to make a rational decision The decision-maker is therefore often going to be wrong. Wrong decisions are expected and usually not fatal. Progress is measured in sequential cycles of learning.© LUXR.CO February 2013
  53. 53. Workshop MV P Work independently, with a sharpie write one idea per sticky. Write 10 stickies that represent what your customer needs. Divide them into 2 piles — 5 that matter more, 5 that matter less. Stack-rank the top pile and set the others aside. On stickies, write 10 product features that support that top need. Working at the wall, make a 2x2: Important/Not and Hard/Easy. Place your stickies individually. Remove the stickies below the line. Together, stack rank the stickies on the left. Decide where to cut off the MVP.© LUXR.CO February 2013
  54. 54. Things To Note (last one) Product roadmaps are worse than useless in a startup. On-time, on-budget delivery isnʼt helpful if you built the wrong thing. Build the smallest possible release to deliver on the use. Smallifying a product release is easier when you approach the question incrementally and stepwise. Focusing on a small, single-use product makes it easier to get right. Weʼre not rejecting the big vision. Put your imagined, full-featured solution out on paper, set it aside. You will understand it more rationally after making the small thing.© LUXR.CO February 2013
  55. 55. And now the big finish.© LUXR.CO February 2013
  56. 56. 7 Habits of Highly Effective Entrepreneurs 1. Ideate with friends. 2. Go broad. 3. Say “Tell me about this one.” 4. Ask “who has the D?” 5. Make informed but arbitrary decisions. 6. Prove it. 7. Question perfection.© LUXR.CO February 2013
  57. 57. 4 Power Tools for Entrepreneurs 1. Dump & Sort 2. Working at the Wall 3. Blue-tape 2x2 4. Dot-Voting© LUXR.CO February 2013