Lean Principles for Nonprofits: Because Your Annual Plan is a Fraud

1. LEAN PRINCIPLES FOR NONPROFITS BECAUSE YOUR ANNUAL PLAN IS A FRAUD

2. INTRO • Kayvon K • • Facebook.com/kayvank7 • Email: k@kahzoom.com • • Twitter: @kayvonk To book an appointment: Go to :kahzoom.com/now and click on the orange BOOKNOW button Please also use #leanxvan

3. WHAT IS LEAN STARTUP?

4. CORE IDEAS MINIMIZE WASTE Lean startup philosophy seeks to eliminate wasteful practices and increase value producing practices during the product development phase so that startups can have a better chance of success without requiring large amounts of outside funding, elaborate business plans, or the perfect product.

5. CORE IDEAS BUILD SOMETHING THEY ACTUALLY WANT Customer feedback during product development is integral to the lean startup process, and ensures that the producer does not invest time designing features or services that consumers do not want.

6. CORE IDEAS Lean startup philosophy counter-balance the infinite capacity of human to self-delusion

7. CORE IDEAS WHAT IS A STARTUP? A human institution designed to deliver a new product or service under conditions of extreme uncertainty.

8. CORE IDEAS If innovation is all about operating within conditions of extreme uncertainty, and if we are first and foremost in search of answers and only THEN building our products, then we have to get a lot better at getting answers quickly (and yes, social change work nearly always operates under conditions of “extreme uncertainty.”) Innovation succeeds at specific point of equilibrium changes – when things are about to change, not after they've changed

9. CORE IDEAS To do this, we have to get better at what is called “validated learning” – getting clear data around our core assumptions – by iterating through a BUILD – MEASURE – LEARN cycle

10. WHY LEAN IS IMPORTANT? WHAT IS THE POINT? Unfair Advantage An organization practicing lean principles has an unfair advantage against a completely equivalent organization that doesn’t.

11. ACHIEVING FAILURE Majority of organization are very good at Achieving Failure Definition: successfully executing a bad plan If we're building something nobody wants, what does it matter if we accomplish it

12. ACHIEVING FAILURE The method of accountability in traditional management is about projecting into the future and measuring success by how they do compared to the forecast. "Lean" comes from manufacturing. Manufacturing doesn't do not waterfall anymore. The customer is the most important part of the production line. But we have to know who is the customer?

13. WHAT IS THE MAIN GOAL OF A START-UP? • It can also be applied to a project, new feature, a product development process.

14. WHAT IS THE MAIN GOAL OF A START-UP? TO FIND OUT WHAT WORKS

15. WHAT IS THE MAIN GOAL OF A START-UP?

16. THE LEAN STARUTUP CYCLE

17. THE LEAN STARUTUP CYCLE The main determinant of whether / how quickly we innovate is how quickly we can go through the BUILD – MEASURE – LEARN cycle

18. THE LEAN STARUTUP CYCLE The faster we go, the more quickly we learn, the more often we pivot, the less time we waste

19. THE LEAN STARUTUP CYCLE We optimize for learning and build organizations that are made to adapt quickly

20. THE LEAN STARUTUP CYCLE Lean startup its about teaching startups to speed up their learning. (This makes sense, but it’s not how we (any of us) act most of the time)

21. THE LEAN STARUTUP CYCLE Startup = Experiment

22. BUILDING A STARTUP What does it take to go from an idea to implementation?

23. BUILDING A STARTUP Waterfall (Product) Development

24. BUILDING A STARTUP It used to be: A. We will write a (business) plan? B. Then we would know everything there is to know 1. Operating plan 2. Financial Model C.And we simply execute that plan

25. BUILDING A STARTUP Reality: No plan survives the first contact with clients

26. BUILDING A STARTUP Reason: Startups are not a smaller version of lagers companies • Startups search • Companies execute Search for what? Execute what?

27. BUILDING A STARTUP We still need a plan Planning that comes before The (business) Plan

28. BUILDING A STARTUP So a "Search Plan" first Then an "Operating Business Plan" to execute

29. BUILDING A STARTUP Tool: The Business Model Canvas •To organize your thinking •To get out of the building • To test the hypothesis • And update our canvas

30. BUILDING A STARTUP

33. BUILDING A STARTUP What problem are we solving? What are we building? And for whom? Who is the customer?

35. BUILDING A STARTUP Who are they? Why would they buy? Persona? Multiple Customer Segments

37. BUILDING A STARTUP How do we distribute our product? How our products from out company gets to our customers?

39. BUILDING A STARTUP How do I get customers? How do I keep them? How do I grow them?

41. BUILDING A STARTUP What value is customer paying for? What is the strategy to capture that value

43. BUILDING A STARTUP What are the most important assets we need to make business model work? Finance, Physical, Intellectual, Human

49. BUILDING A STARTUP What are the COSTS to operate the business model?

50. BUILDING A STARTUP Tool: The Business Model Canvas •To organize your thinking •To get out of the building • To test the hypothesis • And update our canvas

51. BUILDING A STARTUP Tool: Lean Canvas •To organize your thinking •To get out of the building • To test the hypothesis • And update our canvas

52. THE LEAN STARUTUP CYCLE

54. BUILDING A STARTUP Do people have this problem?

55. BUILDING A STARTUP Is there a match between problem and solution?

56. BUILDING A STARTUP Repeat * Until proven

58. BUILDING A STARTUP Creating end-user and demand

59. BUILDING A STARTUP The scalable organization to do it all

60. BUILDING A STARTUP Tool: Validation Board •To get out of the building •To iterate

62. BUILDING A STARTUP Get out of the building: 1. Design experiments 2. Run tests 3. Get data 4. Repeat

63. BUILDING A STARTUP It is about a search for a business model that works

64. RESOURCES

65. • Kayvon K • • Facebook.com/kayvank7 • Email: k@kahzoom.com • • Twitter: @kayvonk To book an appointment: Go to :kahzoom.com/now and click on the orange BOOKNOW button Please also use #leanxvan