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The Rise of the Lean Machine
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Lean Startup for Smart Entrepreneurs

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Presented at Dublin's excellent LeanCamp event

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Lean Startup for Smart Entrepreneurs

  1. 1. @agilesensei www.agilesensei.com written, illustrated and performed by Claudio Perrone
  2. 2. Most startups fail will Yours?
  3. 3. If we keep acting like most entrepreneurs…
  4. 4. … less than 3 people in this room will Create successful companies* “(*) The only statistics you can trust are those you falsified yourself --(often falsely attributed to) Winston Churchill
  5. 5. July 2009
  6. 6. “July 2009 was the wettest July on record in Ireland”
  7. 7. “that month, a new life rocked my world…”
  8. 8. “that month, I left an exceptional company I helped create from scratch”
  9. 9. “From the very beginning, I had embraced Agile development to grow a world-class software organization”
  10. 10. We continuously improved our development processes…
  11. 11. We crafted opinionated software… “The best software has a vision. The best software takes sides. … Decide what your vision is and run with it.” -- 37 signals
  12. 12. We won awards and respect…
  13. 13. we could almost touch the sky…
  14. 14. Almost
  15. 15. “July 2009 was the wettest July on record in Ireland”
  16. 16. I’ll remember it as the month matteo was born
  17. 17. But it is also the month I had to let go of a dream
  18. 18. … so I became a Lean & Agile consultant!
  19. 19. On my first mission, a cio asked me a question that haunts me to this day…
  20. 20. “If you were so smart, why did you fail?”
  21. 21. I became increasingly intrigued by the rise of Lean and its influence in the agile circles
  22. 22. Lean is heavily inspired by Toyota’s breakthroughs in “operational excellence”
  23. 23. Using Lean and agile, I brought performance improvements to many clients around Europe
  24. 24. But that old question still remained unanswered…
  25. 25. … Until one day
  26. 26. I entered a new world
  27. 27. ... A world that recognized the extraordinary challenges I once faced “ A startup is a human institution designed to create new products and services under conditions of extreme uncertainty. --- Eric Ries
  28. 28. ... A world that showed how Searching for a business model is different from executing a validated one “ A startup is a temporary organization used to search for a repeatable and scalable business model. --- Steve Blank
  29. 29. It gave me a path to create a sustainable business around products that customers want Customer development data, PROBLEM/ PRODUCT/ SCALE feedback, MARKET insights SOLUTION FIT FIT Customer Company Customer Customer stop creation stop building discovery stop validation Agile development Pivot hypothesis, experiments, insights Problem: Unknown solution: Unknown
  30. 30. ... A path characterized by frequent scientific experiments… Learn Build (establish an hypothesis) (Build an experiment to test that hypothesis) Measure (Determine a quantitative or qualitative method to evaluate that hypothesis.)
  31. 31. … To accelerate the rate of learning… Learn idea Build (whether to pivot or persevere) (Turn ideas into product) (often a series of MVPs) data Product Measure (How customers respond)
  32. 32. … And measure real progress towards success Acquisition How do users find you? Activation Do users have a great first experience? retention Do users come back? revenue How do you make money? referral Do user tell others? ( see Dave McClure “Pirate” metrics) Cohort analysis
  33. 33. Today
  34. 34. I document my business model(s) explicitly Solution Top 3 Unique Unfair Customer Problems Value Advantage Segments Proposition Key metrics Channels Existing Early alternatives adopters Cost structure Revenue streams www.leancanvas.com
  35. 35. my vision is built on opinions untested assumptions
  36. 36. … which I systematically validate with experiments…
  37. 37. … that force me to “get out of the building”
  38. 38. …and gather data to verify whether my actions affect customer behavior Hypotheses/ IN PROGRESS GOALs DONE VALIDATED LEARNING BACKLOG SELECTED DESIGN/BUILD PARTIAL VALIDATE FULL VERIFY EXPERIMENTS ROLLOUT QUALITATIVELY ROLLOUT QUANTITATIVELY DONE DONE
  39. 39. I validate my solutions, OFTEN with low fidelity MVPs
  40. 40. … and Activate enthusiastic earlyvangelists with a glimpse of a future that will come
  41. 41. What will your future look like?
  42. 42. “ Smart entrepreneurs don’t dream of success. They create the conditions to inevitably converge to it. --- Me (1967 - )
  43. 43. Thank  you!   Claudio  Perrone   claudio@agilesensei.com   www.agilesensei.com   www.twi:er.com/agilesensei  
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Presented at Dublin's excellent LeanCamp event

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