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Lean User Experience in a Lean Startup

Great User Experience is critical to product success. Can you get great user experience at startup speed? Pathfinder Software's Bob Moll and Bernhard Kappe share how design methods can be applied to the hypthesize-test-learn processes of a lean startup, and the benefits of doing so before product development begins. This talk was presented at the Chicago Lean Startup Circle.

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Lean UX
         Chicago Lean Startup Circle



 Bernhard Kappe                                          Bob Moll
      CEO                                                UX Lead
Pathfinder Software                                  Pathfinder Software


                     http://pathfindersoftware.com                        Copyright © 2011 Pathfinder Software
The Fastest Path to Product Success




http://pathfindersoftware.com       Copyright © 2011 Pathfinder Software
The Fastest Path to Product Success
            Lean Startup
                  Lean UX
                       Agile Development
                               Lean Marketing
                                  Lean Metrics




http://pathfindersoftware.com                     Copyright © 2011 Pathfinder Software
Let’s do a little
 matchmaking.


     http://pathfindersoftware.com   Copyright © 2011 Pathfinder Software
Lean Startup, Meet UX
•   User Experience is critical to
    product success: Bad user
    experience will sink great
    business solutions

•   UX designers talk to users, do
    rapid prototyping, and do testing
    to validate (sound familiar?)

•   UX designers have talent,
    experience, and techniques that
    are really useful in a lean startup



                         http://pathfindersoftware.com   Copyright © 2011 Pathfinder Software
UX, Meet the Lean Startup
•   You’re frustrated that no one on
    the business side values user
    research, prototyping and
    validating with users, right?

•   Lean Startup practitioners are
    business people who believe
    that talking to customers,
    prototyping and validation are
    core to their business.
    (And they have a great personality too)




                              http://pathfindersoftware.com   Copyright © 2011 Pathfinder Software

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Lean User Experience in a Lean Startup

  • 1. Lean UX Chicago Lean Startup Circle Bernhard Kappe Bob Moll CEO UX Lead Pathfinder Software Pathfinder Software http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 2. The Fastest Path to Product Success http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 3. The Fastest Path to Product Success Lean Startup Lean UX Agile Development Lean Marketing Lean Metrics http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 4. Let’s do a little matchmaking. http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 5. Lean Startup, Meet UX • User Experience is critical to product success: Bad user experience will sink great business solutions • UX designers talk to users, do rapid prototyping, and do testing to validate (sound familiar?) • UX designers have talent, experience, and techniques that are really useful in a lean startup http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 6. UX, Meet the Lean Startup • You’re frustrated that no one on the business side values user research, prototyping and validating with users, right? • Lean Startup practitioners are business people who believe that talking to customers, prototyping and validation are core to their business. (And they have a great personality too) http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 7. You two seem like you’d make a great couple. How can we get you together? http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 8. A Definition of Lean UX Applying design methods (UX) to the hypothesize-test-learn processes of a Lean Startup http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 9. Origin of Lean UX Lean UX: Coined by Janice Fraser of LUXr in San Francisco Josh Seiden Jeff Gotthelf Zach Larson ... http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 10. Our Talk Tonight: 3 Questions 1 What is a Lean Startup? 2 How are UX Methods Used in Developing a Lean Startup? 3 What Makes Someone Effective with Lean UX? http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 11. Question 1 What is a Lean Startup? http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 12. The Classic Startup (un-Lean) • Write Business Plan • Get Funding • Build Software • Launch • Get Feedback • Start Version 2 http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 13. Sounds like Classic Waterfall! • Build on Assumptions • Launch • Find Out Your Business Assumptions are Wrong • Try to Change at Scale • Run Out of Time and Money http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 14. If Nobody Buys... = • On Time • On Budget Failed • High Quality Software • Great User Experience http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 15. Reality 9 out of 10 new products fail. http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 16. Why They Fail • A Problem Not Worth Solving • Building the Wrong Solution • Can’t Get Customers to Pay • Can’t Get Customers Cheaply Enough http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 17. Another Approach: “Lean” http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 18. Just to Clarify... Lean Startup = Cheap and Bootstrapped http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 19. Lean Manufacturing A production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Working from the perspective of the customer who consumes a product or service, "value" is defined as any action or process that a customer would be willing to pay for. http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 20. “Translation” If customer won’t pay for it, it’s not valuable Don’t spend resources on stuff that’s not valuable http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 21. How do you figure out what’s valuable? http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 22. Toyota Product System (TPS) • Challenges: form a long term vision and meet challenges with courage and creativity • Kaizen: (continuous improvement) - Improve business operations continuously, always driving for innovation and evolution • Genchi Genbutsu: (go and see) - Go to the source to find the facts to make correct decisions, build consensus and achieve goals at best speed http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 23. Go to the Customer • Genchi Genbutsu = Get Out of the Building! (Go to the source (the customer) to find the facts) http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 24. Lean Startup • A scientific method for creating innovation • Goal: Discover a business model that works before you run out of time and money • Experiments to validate business model hypotheses • Fast Cycle Time: Need to go through experiments as quickly as possible, with as little wasted effort as possible. http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 25. The “Lean” Concept Uses a Hypothesize Scientific Approach to Test Discover What Learn Works with Less Revise Waste http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 26. Question 2 How are UX methods used in Developing a Lean Startup? http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 27. Lean Startup Business Model Customer Discovery Customer Segments Problem Interviews Solution Interviews MVPs Product Development Customer Validation http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 28. Lean Startup Business Model Customer Discovery Customer Segments UX techniques can be Problem Interviews applied to more than Solution Interviews just product MVPs development Product Development Customer Validation http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 29. Using UX for Business Model Generation http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 30. Brainstorm a Lean Canvas http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 31. UX Method: Team Brainstorm Name a unique way we add value http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 32. Customer Discovery Searching for Problem/Solution Fit • Get Earlyvangelists • Problem Interviews • Solution Interviews • Build and Test a Series of MVPs • Get First Paying Customers • Pivot? http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 33. UX Method: Prototype Landing Pages to Find Earlyvangelists Landing Pages: First Iteration of Brand and Visual Design http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 34. Using UX for Problem Interviews http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 35. Problem Interviews • Find Out Demographics • Validate Their Top 3 Problems • Rank the Problems • Describe How They Currently Solve the Problems http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 36. Problem Interviews • Pair Interviewing with UX designer • Card Sorting • Use Problem Interview Results to Drive Segments and Personas http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 37. UX Method: Card Sort Too much Hard to use time Expensive! No person e with behind Was te tim s your websit e ext ra step http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 38. UX Method: Card Sort 1 Expensive! 4 Too much time 2 Hard to use e with Was te tim s ext ra step 3p No 5 erson behin d your websit e http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 39. UX Method: Visualize the Personas, Goals http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 40. Using UX for Solution Interviews http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 41. Solution Interviews • Recap Demographics and Problem • Describe and Show Solution (don’t sell it!) • Does it resonate? • What’s most important, What can you take away, what’s missing? • Can you get insight into channels? • Ask about pricing http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 42. Solution Interviews Approach: Show things, let them talk http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 43. UX Method: Design an infographic to restate problem http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 44. UX Method: Low Fi Prototypes http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 45. Paper Prototype Show about 6 screens, ask them to prioritize. 4 5 2 6 3 1 http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 46. Paper Prototype What can be taken away? what’s missing? 4 5X 2 X 6 1 3 http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 47. Paper Prototype You are drilling down to MVP 1 2 3 4 http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 48. Using UX for MVP (Product Development) http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 49. Minimum Viable Product “Enough to Validate” Will people use it? Will they buy it? http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 50. Screenflow Movie Prototype Initial MVP • Screenflow Movie of Mockups • Landing Page - Sign Up if You’re Interested • Posted on Hacker News and Digg Result: 90,000 Signups in Three Days http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 51. That’s Validation http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 52. Build-Test Process for the MVP Inception Agile Small Releases iterations http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 53. Build the Core, Not Everything http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 54. Agile Iterations http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 55. Time-Boxed UX Workshops (1-2 hours) http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 56. UX Method: Create a Storyboard (Wall) http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 57. UX Method: Prototype and Test http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 58. Once You’ve Validated Problem/Solution Fit and Get Paying Customers ... Move on to Customer Validation http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 59. Product/Market Fit Path to Product Market Fit 9000 Customer Acquisition Cost Customer Lifetime Value/3 6750 4500 Product/Market Fit: LTV/3 >= CAC 2250 0 Month 1 Month 2 Month 3 Month 6 Month 5 Month 6 Month ? Month 8 Month 9 Month 16 Month 11 Month 12
  • 60. Reducing Customer Acquisition Costs with UX • Does the Experience Match the Marketing? • Changes to Optimize Customer Acquisition Funnel/ Experience for New Users http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 61. Increasing LTV with UX • Improve value (and price) through: • adding features • improving features • taking away features • Reduce churn by finding and fostering loyalty behaviors (optimize the customer retention funnel) http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 62. UX in Customer Validation • You have real users and precise usage data on individuals - analyze it! • Make small changes fast (hours, not weeks to get into production) • When you make changes - A/B test (or do multivariate if you have big enough volumes.) http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 63. Question 3 What Makes Someone Effective with Lean UX? http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 64. Team Player Design + product management + development = 1 product team http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 65. Brainstorming Come up with lots of ideas quickly, then pick the best and test them http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 66. Visualizing Get ideas on a wall in pictures where everyone can see them http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 67. Listening Get out of the building and talk to people, hear what they say, what they mean http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 68. Rapid Prototyping Skill Hypothesize - Prototype - Test (repeat) http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 69. Passion for Problem Solving Get immersed in the people and problem domain - you’ll be more creative http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 70. No Sacred Cows Flexibility to throw things out and try something new http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 71. Summary Team Player Brainstorming Visualizing Listening Rapid Prototyping Skill Passion for Problem Solving No Sacred Cows http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 72. Lean Startup + UX http://pathfindersoftware.com Copyright © 2011 Pathfinder Software
  • 73. Thanks for your attention! Find out more: Pathfindersoftware.com Bernhard: bkappe at pathf.com Bob rmoll at pathf.com http://pathfindersoftware.com Copyright © 2011 Pathfinder Software

Editor's Notes

  1. Organizer of the Chicago Lean Startup Circle. How many are new here? How many are lean startup practitioners? How many are designers or IAs?\n
  2. Bob Moll is our Lead User Experience Designer\nMention Pathfinder, the company Bob and I work for. \nWe work with both startups and established companies to launch successful products. We launch more products in a year than the average product manager does in a career.\n\n\n
  3. The Lean Startup approach is integral to how we work with customers: Advise them on Customer development, practice lean ux, agile development, lean marketing and metrics. We help our customers accelerate, and build capacity so they can do it themselves. \n\n
  4. \n
  5. \n
  6. \n
  7. \n
  8. It’s a way for lean startup and ux to work together. \n\n
  9. Coined and championed by Janice Fraser of LUXR, person x, y, z etc. Pathfinder is practicing and championing this approach here in Chicago.\n
  10. \n
  11. \n
  12. Models for building software: \n\nClassic Waterfall: Write Specs, Build Software, Roll it Out and See What Happens.\nModified: Add a lot of testing to deal with bugs at the end. \n\nResult: Crappy software that cost too much to build and took too much time. \n\nLots of failure: Late, Over Budget, Buggy, Hard to Use, Missing Features.\n\n
  13. \nIt’s because you have bad, incomplete, faulty requirements. Business requirements.\nThat’s why we invented agile, that’s why we added UXD. But we never added the feedback loop on the business side! \n
  14. \n
  15. It’s not unusual for new products to fail. In fact, 9 out of 10 do.\n
  16. \n
  17. So this is where the lean startup comes in.\n
  18. Lean Startup does not equal cheap and bootstrapped, although some are. Companies like Groupon, Zynga, etc. have lots of capital to apply, and use lean startup methods. \n
  19. Instead it comes from lean manufacturing\n
  20. \n
  21. The question is, how do you figure out what’s valuable?\n
  22. Both Lean Manufacturing and Agile come from Toyota Production System. The key concept here for us is Genchi Genbutsu (go and see.) \n
  23. In a lean startup, Genchi Genbutsu is turned into Get Out of the Building!\n
  24. \n
  25. \n
  26. \n
  27. \n
  28. \n
  29. \n
  30. We like to use the lean canvas for documenting business model assumptions.\n\nUse this to document your hypotheses about problems, customer segments, about solutions, unique value proposition, unfair advantages, channels, key activities costs and revenues.\n\nThe one lean ux principle: one team. Get all the heads in the room for this. Share it with the team. \n
  31. Lean ux concept: You are all one team. Get the whole team in the room to brainstorm, timebox it. Put it on a wall. Update it and share with the group and with advisors when you change it.\n
  32. \n
  33. You use different channels to get earlyvangelists for customer interviews, but usually you drive them to a landing page where you can qualify them (are they in your assumed target market, and can/will they talk to you.) \n\nHere’s where you can start defining your brand and your tone, your visual design. Do it fast, don’t waste a ton of time here, but do it.\n
  34. \n
  35. If it’s not in their top problems, they’re not likely to take action, let alone pay.\n
  36. UX folks are good at doing these interviews. If you have one, consider pairing with them on this. They understand how to dig out demographics and how to ask questions on how they currently solve problems. \n\n\n\n
  37. \nCard Sorting - if you put the problems on cards, and add new problems that they mention, and put them on cards, you give them someting tactile that makes it much easier for them to perform a prioritization.\n
  38. We think that card sorting makes for more accurate prioritization\n
  39. Find out - through groupings on problems, solutions and demographics: Segments. These segments may have very different problems and solutions, you may need to sell to them in very different ways, and they may have very different revenue models. (Different canvases.)\n\nCapture these in personas - A way of visualizing the customers. A name, a face, their goals, etc. Really useful when you’re thinking about them, and designing for them.\n\n
  40. \n
  41. This is another great place to pair. UX folks are good at doing these interviews. Good ones know how to avoid the bias that you naturally will show - you want to avoid bias, and avoid selling.\n\n
  42. \n
  43. Here’s an example of an infographic that Todd Wyder has used for his company to describe his software. Much easier than a big description. Visualize it, save a thousand words.\n
  44. Prototype - Our preference is towards hand sketched screenshots at the beginning. As low fi as possible at this stage, because you’ll be changing this rapidly and often.\n\nLow-fi prototypes - prototype using pencil, paper, post-its, physical objects\n\n\nbring to life a scenario, and have an experience. \n\nSome audiences don’t understand, some times there’s a need for more high fi. - but it’s rare. \n\nExample: A client we work with has a series of physical products around color calibration, color matching, etc. used by professional photographers, designers, etc. This was all about color, so you needed to have higher fidelity prototypes that involved and showed the color. \n\n\n\nStory Flows - In a fixed number of frames (say 8, give or take), show the key points of each of the workflows or business flow your design will address\nLow-fi prototypes - prototype using pencil, paper, post-its, physical objects\nStory video - turn a low-fi prototype or storyboard into a simple video that can be used to validate the idea with customers\nCustomer testing - using created artifacts (low-fi prototype or story video) to conduct customer interviews - can they understand the concept, would they buy it?\nPriority Diagram - what would your product look like if you could only implement 3 features? 5 features? etc.\n\n
  45. \n
  46. \n
  47. \n
  48. \n
  49. Minimum Viable Product is Not the Minimum Product to Make a Profit\n MVP is: the minimum to Validate a Hypothesis.\n MVP is not static: Interim MVPs\n\n
  50. \n
  51. Another example: Glif, a kickstarter project for an attachment that lets you mount an iphone on a tripod.\n
  52. \n
  53. \n
  54. \n
  55. \n
  56. \n
  57. \n
  58. \n
  59. So one of your big risks is that you won’t get to product/market fit. A rule of thumb we use is having customer acquisition costs being less than or equal to one third of lifetime value of the customer. You want to make profit, so you have cost of goods sold, general and administrative, sales and marketing, R&D. If your cost of customer acquisition is too high, you won’t make money. \nYou don’t know what the lifetime value is at the beginning, for a number of reasons - pricing model may not be defined, customer segments, channels, etc., churn, and how much control you have over it, etc. Same with customer acquisition costs. At the beginning, you’re testing a lot, and not everything will work. You get better over time. Some take time to kick in.\n \n
  60. Changes to test might be things like layouts, calls to action, lazy vs. upfront registration, help, chat, button colors, sequencing of flows, how much functionality gets exposed for new users, etc. \n
  61. \n
  62. You now have real live customers. That means you have quantitative data you can work with to see what works and what doesn’t \nYou want to make small changes fast and a/b test according to your metrics (customer acquisition and retention) \n
  63. \n
  64. \n
  65. \n
  66. \n
  67. \n
  68. \n
  69. \n
  70. \n
  71. \n
  72. \n
  73. \n