Lean Startup in the Enterprise

Lean Startup
in the

Enterprise

© 2012 BigVisible Solutions

David J Bland
Agile / Lean / XP / Kanban
Startups & Enterprises
eCommerce to Counter Terrorism

© 2012 BigVisible Solutions 2

Alex Osterwalder Eric Ries

Steve Blank Dave McClure


S&P 500 companies now the
shortest life span we’ve ever
seen in recorded history.


The Lean Startup provides a
scientific approach to creating
and managing startups and get
a desired product to
customers’ hands faster.
-Eric Ries


A startup is a human
institution designed to
deliver a new product or
service under conditions of
extreme uncertainty.
-Eric Ries


Problem Solution Process
Waterfall or
Known Known
Agile

Known Unknown Agile

Unknown Unknown Lean Startup


We are experiencing an
evolutionary leadership
mismatch.



Leaders typically are not promoted if
they’ve repeatedly stated that they
do not know the problem or solution


need more most leaders
leaders here

complex complicated
(guidelines) (good practice)

chaos simple
(principles) (best practice)

maybe even here
Source: Adapted from Cynefin & Leadership Agility

complex complicated
(guidelines) (good practice)
Lean
Startup

chaos simple
(principles) (best practice)

Source: Adapted from Cynefin & Leadership Agility

We are experiencing an
organizational structure
mismatch.


We’ve structured our organizations based
on the Industrial Era:

- 1 Business Model
- Scaling
- Predictability
- Execution
- Organized by Function


Intrapreneurs!
Entrepreneurs
are everywhere.


1982!!!
1976!!!


… there is hope.


Experiment with
product & process


Sustaining Disruptive
Innovation Innovation

(kanban) (scrum) (lean startup)

Source: Adapted from Clayton Christensen

Don’t release it to
everyone all at once.


Target specific cohorts
with a/b testing.


Decouple from your
existing brand.


If you experiment in code,
come back to:
a. clean it up
b. iterate
c. productize
d. refactor

Right Fidelity
here is my paper prototype!


Wrong Fidelity
here is my paper prototype…


Experiment to align
business & product.


Source: Eric Ries The Lean Startup

You cannot learn if
your feedback loops
are broken.


Just because you can
measure it, does not
mean you should
measure it.


Which of these metrics provide the
most insight into a product?
a. 1,000,000 unregistered unique visits
b. 500,000 visitors who view 2+ pages
c. 250,000 visitors who engaged for 10+ seconds
d. 20000 users with registered email address
e. 1000 monthly subscribers

Source: Adapted from Dave McClure

Acquisition +15% +11% +8%

Activation +5% +7% +10%

Retention +1% +3% +5%

Referral +0% +1% +3%

Revenue +0% +1% +5%

Source: Dave McClure Pirate Metrics

Great Product
+ Wrong Business Model
Failed Organization


Business Models > Business Plans

Business Models Canvas

Source: Adapted from Alexander Osterwalder

Experiment to align
product & customer.


That’s all good in theory but…
“Your version of Enterprise
and my version of Enterprise
are very different.”


“I need to apply this to an
internal project with no
external customers!”


“<insert your reason here>”


Waterfall or
Known Known
Agile

Known Unknown Agile



Do you have unknown
/ unknown’s in your
enterprise?


Start small.


If you have internal users,
then perform customer
discovery & interview them.


They are users who impact
business metrics.

Finance Manager
Source: Dave Gray “Empathy Map”

Start small.


If you have User Stories,
add a Hypothesis that states
the expected outcome on a
specific metric.


Feed the learning back into
the product backlog…


Start small.


If you have a Kanban Board,
add a Validate Column to
the very right of it.


Teams should have a healthy
skepticism of the why of the
work you are doing.


If you cannot articulate the
expected outcome, then why
should the team build it?


It’s working if you hear:
“How are we going to
measure that?”


It’s working if you hear:
“We cannot wait that
long to learn!”


Where are the
unknown / unknown’s
in your enterprise?


Questions?


David J Bland
Agile Consultant

[m]: +1 703 945 0700
[ e ]: dbland@bigvisible.com
[ u ]: www.bigvisible.com
[ t ]: @davidjbland


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