Lean Startup

Stefan ROOCK
Stefan ROOCKCEO, Agile Coach at it-agile GmbH
Stefan Roock, Henning Wolf
                                         @it-agile.de
                            Twitter: @StefanRoock, @HenningWolf
                               Scrum Gathering Barcelona 2012


Sonntag, 30. September 12
This Session




Sonntag, 30. September 12
Lean Startup in a Nutshell




Sonntag, 30. September 12
Velocity rules!




                                                    implementation


 Copyright MrTMan. http://www.flickr.com/photos/teijo/680594567/sizes/l/in/photostream/

Sonntag, 30. September 12
imp
                                  lem
                                        ent
                                              ati
                                                    on

Sonntag, 30. September 12
Customers‘
                            needs


                                imp
                                      lem
                                            ent
                                                  ati
                                                        on

Sonntag, 30. September 12
Velocity doesn‘t matter!




Copyright by machanucha. http://www.flickr.com/photos/chinny_chin_chin00/4917467665/sizes/l/in/photostream/

Sonntag, 30. September 12
‘rs
                                 ed me
                               ne sto
                                   s
                                Cu


                            implementation


Sonntag, 30. September 12
Focus of Lean Startup
         unclear



                                 Lean
                                Startup
           Features




           clear
                      certain                           uncertain
                                          Technology

Sonntag, 30. September 12
„Startup“




         „A startup is a human institution
    designed to create a new product or service
     under conditions of extreme uncertainty.“
                                         Eric Ries
Sonntag, 30. September 12
Build Measure Learn Cycle
                                       Ideas



                            Learn              Build




                              Data
                                               Code



                                     Measure




Sonntag, 30. September 12
Plan Backwards
                                                           What do I need
   What do I                                                to build to
  want to learn?                             Ideas          measure it?

                            Learn                       Build




                              Data
                                                        Code



                                           Measure


                                         How can I
                                        measure that?
Sonntag, 30. September 12
Experiment!
 What do I want to                                        What do I need to
      learn?                                Ideas         build to measure it?


                            Learn                      Build

                                      Experiments

                              Data
                                                       Code



                                         Measure


                                        How can I
                                       measure that?
Sonntag, 30. September 12
Minimum
               Viable
              Product




Sonntag, 30. September 12
Pivot                      Ideas

                                              Learn             Build



                                               Data             Code

                              Ideas
                                                      Measure


       Learn            Persevere     Build



            Data
                                      Code


                            Measure


Sonntag, 30. September 12
We
           wanted
          to get to
          know it!

Sonntag, 30. September 12
Would you invest your own money
            for the development of the
              product? (via Kent Beck)




Sonntag, 30. September 12
Isolation from it-agile
                                  (separate office,
                                  email autoreply,
                                              etc.)




Sonntag, 30. September 12
Check Assumptions




Sonntag, 30. September 12
Premise
                            Online discussions suck!

                            Our vision is to build a tool
                            that makes decision making
                            easier online than face-to-
                            face!



                  Form groups of 3 to 6.
                Collect assumptions! (5 min.)
Sonntag, 30. September 12
Lean Startup „Lifecycle“


              Problem/                   Product/
                                                     Scale
              Solution                    Market

                             Learning                Growth
                            Experiment              Experiment




Sonntag, 30. September 12
Lean Startup „Lifecycle“


              Problem/                   Product/
                                                     Scale
              Solution                    Market

                             Learning                Growth
                            Experiment              Experiment




                       In same groups:
         What kind of assumptions did you collect?
      Find at least one for Problem/Solution! (5 min.)
Sonntag, 30. September 12
Optimize: Learnings per unit of time



                            M VP




Sonntag, 30. September 12
Startup March: Continuous Delivery
                                                          t day 3
                                                n t life a
                                       ci de we            t day 5
                            Discuss2De r went life a
                                Disc umete




               after that
     >15 releases per day

Sonntag, 30. September 12
Minimum
               Viable
              Product


              Viable for whom?

Sonntag, 30. September 12
„The MVP is that version of the
  product that enables a full turn
of the Build-Measure-Learn loop
with a minimum amount of effort
         and the least amount of
             development time.“
                        Eric Ries




              Viable for us,
         not necessarily the
                 customer!


Sonntag, 30. September 12
MVP Examples
 Paper Mockup

                       AdWords Campaign


                                      M VP
        Concierge MVP
                            Feature
          Video              Fake

                   Software
                   Prototype

Sonntag, 30. September 12
Metrics




Sonntag, 30. September 12
our hope   the reality




Sonntag, 30. September 12
few
                                  us
                                    er




                                                    cs
                                         s




                                               etri
                                                 m
                                             ess
                                         usel
Sonntag, 30. September 12
Lean Startup „Lifecycle“
                                                  Quantity
                                           Quality
              Problem/                          Product/
                                                                         Scale
              Solution                           Market

                                Learning                                 Growth
                            Experiment: Pivot                     Experiment: Optimization


                Build                             Build                       Build
              Interview                           MVP                        Product

     Learn            Measure           Learn           Measure      Learn          Measure

Sonntag, 30. September 12
Lean Startup „Lifecycle“
                                       In same groups:
                            Choose a Problem/Solution assumption.
                                 Whom would you talk to?
                                What would you ask? (5 min.)

              Problem/                          Product/
                                                                         Scale
              Solution                           Market

                                Learning                                 Growth
                            Experiment: Pivot                     Experiment: Optimization


                Build                             Build                       Build
              Interview                           MVP                        Product

     Learn            Measure           Learn           Measure      Learn          Measure

Sonntag, 30. September 12
MVPs
                                         Size = effort and feedback cycle length
               high

                                                                                    the Product
                                                                   A/B Testing
                                                   Concierge MVP
           Product Fidelity



                                                                                 Software
                                                                                 Prototype


                                      Paper                                                  Video
                                     Mockup

                                     Paper
                                     Sketch

                                    Interview                                                Ad-Words-
                                                                                             Campaign
                low
                              few                                                                    many
                                                Coverage (Number of Customers)

Sonntag, 30. September 12
In same groups:
    Choose a Product/Market assumption and define
                  a MVP! (10 min.)
                       AdWords Campaign
  Paper Mockup
                                            M VP
        Concierge MVP
                            Feature
          Video              Fake

                   Software
                   Prototype
                                      ...
Sonntag, 30. September 12
Pivot                      Ideas

                                              Learn             Build



                                               Data             Code

                              Ideas
                                                      Measure


       Learn            Persevere     Build



            Data
                                      Code


                            Measure


Sonntag, 30. September 12
Product

                            Strategy   Pivot

                             Vision

Sonntag, 30. September 12
Business Architecture Pivot
    Zoom-in
    Pivot                                                 Technology Pivot
                                      Channel Pivot
     Zoom-out Pivot


    Customer Segment Pivot                                   Pivot
                     Value Capture Pivot
                                                           Examples

               Customer Need Pivot

                                              Engine of Growth Pivot
    Platform Pivot

Sonntag, 30. September 12
Lean Startup and Scrum?


Sonntag, 30. September 12
Shared
                             Product
                            Ownership




Sonntag, 30. September 12
Shared
                                Product
                               Ownership
                            No problem in our case.




Sonntag, 30. September 12
Shared
                            ScrumMaster
                                role




Sonntag, 30. September 12
Shared
                            ScrumMaster
                                role
                             That was a problem!




Sonntag, 30. September 12
Sprints? What do you think?
         We had 2-day
           Sprints.            We had monthly Sprints and the
                              Review was the Pivot or Persevere
                                          Meeting.


                                           It just wasn‘t Scrum.
          The learnings were the real
             product increments.

                                        Scrum would only be usefull
                                              during scaling.

Sonntag, 30. September 12
Daily Scrums:
                            four per day




Sonntag, 30. September 12
Check assumptions everywhere

                                ...


              Sprint Reviews          usability labs




                                ...



field observations, interviews             live metrics
Sonntag, 30. September 12
Experiments Board
                                                                          Live
    Assumption              Feature          MVP          Validation                    Results
                                                                          since

                                          Build feature                              Categories make
   Categories help to       Define and
                                           and ignore                                  posts shorter.
       structure             visualize                    Ask the users   03/05/12
                                           edge cases                                Structure doesn‘t
      discussions           categories.
                                           and scaling                                   improve.

   Users return more                                       20% more
    often if they are    eMail            Send eMails       visits for
                                                                          03/10/12
    informed about    notifications         manually          existing
       new posts.                                          discussions.



             ...



Sonntag, 30. September 12
Take Aways
       •   Get out of the building
       •   Check assumptions
       •   Build Measure Learn
       •   Optimize: learnings / unit of time
       •   Minimum Viable Product (MVP)
       •   Enterprise within the Enterprise
       •   Quantitative metrics don‘t work with a small user base




Sonntag, 30. September 12
Thank you for your participation!
      Feel free to contact me:
      stefan.roock@it-agile.de
Sonntag, 30. September 12
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Lean Startup

  • 1. Stefan Roock, Henning Wolf @it-agile.de Twitter: @StefanRoock, @HenningWolf Scrum Gathering Barcelona 2012 Sonntag, 30. September 12
  • 3. Lean Startup in a Nutshell Sonntag, 30. September 12
  • 4. Velocity rules! implementation Copyright MrTMan. http://www.flickr.com/photos/teijo/680594567/sizes/l/in/photostream/ Sonntag, 30. September 12
  • 5. imp lem ent ati on Sonntag, 30. September 12
  • 6. Customers‘ needs imp lem ent ati on Sonntag, 30. September 12
  • 7. Velocity doesn‘t matter! Copyright by machanucha. http://www.flickr.com/photos/chinny_chin_chin00/4917467665/sizes/l/in/photostream/ Sonntag, 30. September 12
  • 8. ‘rs ed me ne sto s Cu implementation Sonntag, 30. September 12
  • 9. Focus of Lean Startup unclear Lean Startup Features clear certain uncertain Technology Sonntag, 30. September 12
  • 10. „Startup“ „A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty.“ Eric Ries Sonntag, 30. September 12
  • 11. Build Measure Learn Cycle Ideas Learn Build Data Code Measure Sonntag, 30. September 12
  • 12. Plan Backwards What do I need What do I to build to want to learn? Ideas measure it? Learn Build Data Code Measure How can I measure that? Sonntag, 30. September 12
  • 13. Experiment! What do I want to What do I need to learn? Ideas build to measure it? Learn Build Experiments Data Code Measure How can I measure that? Sonntag, 30. September 12
  • 14. Minimum Viable Product Sonntag, 30. September 12
  • 15. Pivot Ideas Learn Build Data Code Ideas Measure Learn Persevere Build Data Code Measure Sonntag, 30. September 12
  • 16. We wanted to get to know it! Sonntag, 30. September 12
  • 17. Would you invest your own money for the development of the product? (via Kent Beck) Sonntag, 30. September 12
  • 18. Isolation from it-agile (separate office, email autoreply, etc.) Sonntag, 30. September 12
  • 20. Premise Online discussions suck! Our vision is to build a tool that makes decision making easier online than face-to- face! Form groups of 3 to 6. Collect assumptions! (5 min.) Sonntag, 30. September 12
  • 21. Lean Startup „Lifecycle“ Problem/ Product/ Scale Solution Market Learning Growth Experiment Experiment Sonntag, 30. September 12
  • 22. Lean Startup „Lifecycle“ Problem/ Product/ Scale Solution Market Learning Growth Experiment Experiment In same groups: What kind of assumptions did you collect? Find at least one for Problem/Solution! (5 min.) Sonntag, 30. September 12
  • 23. Optimize: Learnings per unit of time M VP Sonntag, 30. September 12
  • 24. Startup March: Continuous Delivery t day 3 n t life a ci de we t day 5 Discuss2De r went life a Disc umete after that >15 releases per day Sonntag, 30. September 12
  • 25. Minimum Viable Product Viable for whom? Sonntag, 30. September 12
  • 26. „The MVP is that version of the product that enables a full turn of the Build-Measure-Learn loop with a minimum amount of effort and the least amount of development time.“ Eric Ries Viable for us, not necessarily the customer! Sonntag, 30. September 12
  • 27. MVP Examples Paper Mockup AdWords Campaign M VP Concierge MVP Feature Video Fake Software Prototype Sonntag, 30. September 12
  • 29. our hope the reality Sonntag, 30. September 12
  • 30. few us er cs s etri m ess usel Sonntag, 30. September 12
  • 31. Lean Startup „Lifecycle“ Quantity Quality Problem/ Product/ Scale Solution Market Learning Growth Experiment: Pivot Experiment: Optimization Build Build Build Interview MVP Product Learn Measure Learn Measure Learn Measure Sonntag, 30. September 12
  • 32. Lean Startup „Lifecycle“ In same groups: Choose a Problem/Solution assumption. Whom would you talk to? What would you ask? (5 min.) Problem/ Product/ Scale Solution Market Learning Growth Experiment: Pivot Experiment: Optimization Build Build Build Interview MVP Product Learn Measure Learn Measure Learn Measure Sonntag, 30. September 12
  • 33. MVPs Size = effort and feedback cycle length high the Product A/B Testing Concierge MVP Product Fidelity Software Prototype Paper Video Mockup Paper Sketch Interview Ad-Words- Campaign low few many Coverage (Number of Customers) Sonntag, 30. September 12
  • 34. In same groups: Choose a Product/Market assumption and define a MVP! (10 min.) AdWords Campaign Paper Mockup M VP Concierge MVP Feature Video Fake Software Prototype ... Sonntag, 30. September 12
  • 35. Pivot Ideas Learn Build Data Code Ideas Measure Learn Persevere Build Data Code Measure Sonntag, 30. September 12
  • 36. Product Strategy Pivot Vision Sonntag, 30. September 12
  • 37. Business Architecture Pivot Zoom-in Pivot Technology Pivot Channel Pivot Zoom-out Pivot Customer Segment Pivot Pivot Value Capture Pivot Examples Customer Need Pivot Engine of Growth Pivot Platform Pivot Sonntag, 30. September 12
  • 38. Lean Startup and Scrum? Sonntag, 30. September 12
  • 39. Shared Product Ownership Sonntag, 30. September 12
  • 40. Shared Product Ownership No problem in our case. Sonntag, 30. September 12
  • 41. Shared ScrumMaster role Sonntag, 30. September 12
  • 42. Shared ScrumMaster role That was a problem! Sonntag, 30. September 12
  • 43. Sprints? What do you think? We had 2-day Sprints. We had monthly Sprints and the Review was the Pivot or Persevere Meeting. It just wasn‘t Scrum. The learnings were the real product increments. Scrum would only be usefull during scaling. Sonntag, 30. September 12
  • 44. Daily Scrums: four per day Sonntag, 30. September 12
  • 45. Check assumptions everywhere ... Sprint Reviews usability labs ... field observations, interviews live metrics Sonntag, 30. September 12
  • 46. Experiments Board Live Assumption Feature MVP Validation Results since Build feature Categories make Categories help to Define and and ignore posts shorter. structure visualize Ask the users 03/05/12 edge cases Structure doesn‘t discussions categories. and scaling improve. Users return more 20% more often if they are eMail Send eMails visits for 03/10/12 informed about notifications manually existing new posts. discussions. ... Sonntag, 30. September 12
  • 47. Take Aways • Get out of the building • Check assumptions • Build Measure Learn • Optimize: learnings / unit of time • Minimum Viable Product (MVP) • Enterprise within the Enterprise • Quantitative metrics don‘t work with a small user base Sonntag, 30. September 12
  • 48. Thank you for your participation! Feel free to contact me: stefan.roock@it-agile.de Sonntag, 30. September 12