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AOL UnU
 October 23, 2012
INTRO TO LEAN
Danny Boice
Co-Founder & CTO, Speek /
Resident, AOL Fishbowl Labs
Twitter: @DannyBoice
Danny@speek.com

Adam Berk
Director, Lean Startup Machine
Twitter: @AdamBerk
Adam@LeanStartupMachine.com
Product/Market Fit


  ?    Customer Development


 Bootstrapping     ?   Iterate
                              ?   UX Design




                 Eliminate Waste

?      Pivot
                  ?
                  Problem/Solution Fit

Agile Development
                   ?
WHAT IS LEAN?
A set of processes used Agile
               to developby
entrepreneurscombining Customer
and markets, and existingproducts
Software Development, software
Development
platforms (usually FOSS).
en.wikipedia.org/wiki/Lean_Startup
Lean = What to build
Agile = How to build
What is a “pivot”?
A structured test athe product. new
              course correction
designed toabout fundamental
hypothesis
Build -> Measure -> Learn -> Pivot or
Repeat
What is a “Minimum
  Viable Product
     (MVP)”?
An MVP is the smallest thing you can
build in order to start measuring and
learning.
“If you aren'tlate”
shipped too ashamed of your product, you
- Reid Hoffman
WHY SHOULD
  I CARE?
Something is
fundamentally wrong
Introduction to The Lean Startup
Introduction to The Lean Startup
Why do products
     fail?
Big Idea #1


   The vast majority of products fail
   NOT because it couldn’t be built...

but because nobody wanted the product.
Steve Blank
“No business plan survives
first contact with customers.”
           - Steve Blank
Why do products succeed?
Big Idea #2

     “The vast majority of
     [successful] startups
  abandoned their initial plans

 and learned what would and
 would not work in the market.”

-Clayton Christensen, The Innovator’s Dilemma
PIVOT!!!
Introduction to The Lean Startup
FAILURE
The Secret to Success
OMG!!!
Introduction to The Lean Startup
Introduction to The Lean Startup
Introduction to The Lean Startup
Curious...
LEAN = PROCESS
NOT
Black & White
LEAN’s Mission:
Entrepreneurship & Product
 is a Management Science
     that can be Learned
YOUR Mission:
Don’t Waste Time Building Something
         Before Learning
  Whether People Actually Want it
Get Out of the Building
TALK TO PEOPLE
Customer
Development
Who Are
 They?
Customer Hypothesis
        &
Problem Hypothesis
GOOBing is HARD
What’s the point?
• Uncovers how users think and behave
• Validates assumptions/removes bias
• Shows difference between intent and reality
• Provides direction and data instead of
  opinion or speculation
• Provides the ability to inform design
It is NOT

 • Surveys
 • Focus Groups
 • Your Head
 • Friends & Family
Go in with 2 to 3 objectives
                            and have a real conversation. Brant Cooper
                           Know your goals and questions. Giff Constable
Use a script. Ash Maurya
Use a script. Ash Maurya
3-POINT INTERVIEW

1. Has [insert specific problem] been a
  problem for you? (context)
2. Tell me about the last time you dealt
  with this problem? (story)
3. What’s your ideal solution for this?
  (solution)
No Selling Allowed
Talking to Customers
        What is the Problem?
        What is the Problem?
• Who, What, When, Where, Why, How
• Avoid Would & Future Tense
• The more you ask someone to imagine
  something, the less you can trust their data
• People SAY and DO completely different things.
Find Early Adopters

“FOAMING AT THE
MOUTH”
1. Have the problem
2. Know they have the problem
3. Searched for a solution
4. Hacked their own solution
5. Have budget for a solution
LEAN is Complex
Be Skeptical of Simple Solutions
Be Skeptical of Simple Solutions
3-POINT INTERVIEW

1. Has [insert specific problem] been a
  problem for you? (context)
2. Tell me about the last time you dealt
  with this problem? (story)
3. What’s your ideal solution for this?
  (solution)
PROCESS
Use the
Validation
  Board
Use the Manual
Use One Another
OBJECTIVE:
  Learn
Introduction to The Lean Startup
Introduction to The Lean Startup
MVP Method
3 Stages...
1.Problem Exploration: Exists? Who?
2.Product Pitch: Collect currency
3.Concierge: Deliver customer experience

       Stages increase in opportunity cost
Introduction to The Lean Startup
Minimum Success Criterion



          Make a Prediction:
  If we [do this], [numeric] of target customers
                   will [behavior]
Validation Board


•   It’s a valuable communication tool
•   5-7 words in black sharpie
•   WRITE IN ALL CAPS
•   Mentors will enforce strongly

Following guidelines = better experience
Validation Board
        Demo
http://bit.ly/lsm-canvasvideo
Read the fine print
  on the Canvas
Get Out of the Building
TALK TO PEOPLE
Introduction to The Lean Startup
Intensive 3-Day Workshops
200 Workshops Globally in 2013

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Introduction to The Lean Startup

Editor's Notes

  1. Danny and Adam - introduce themselves
  2. Danny - here are some of the terms you’ll see and hear around lean. we’ll briefly talk about them throughout this session.
  3. Danny - so to start off I suppose we should answer the most basic question: “What is Lean”. Ask if anyone in audience knows.
  4. Danny - it’s using the scientific method to determine what to build then using Agile and Free Open Source Software to build it.
  5. Danny - A lot of people get confused about the delineation between Lean and Agile. Lean determines WHAT to build. Agile is HOW you build.
  6. Danny - you’ll hear this a lot. ask if anyone knows what a pivot is in the audience.
  7. Danny - A core concept of Lean is to fail fast. Product dev projects typically have a finite amount of money and resources. The secret is to get it right before you run out of cash. building, measuring and learning is key to that. If you got something wrong then validate it objectively as early as possible and adjust before it’s too late.
  8. Danny - MVP, ask if anyone knows what this is in audience.
  9. Danny - This is probably one of the hardest things to do. As product and tech people we tend to want to wait to let users see our app until it’s in a very high quality state. Building an MVP and getting it in front of people is the key to Lean. You have to have just the minimum thing to use to start measuring and learning. The sooner the better.
  10. Hand off to Adam to take majority from here.
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  60. Adam - talk about LSM?
  61. Adam - talk about LSM?