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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

                © 2012 BigVisible Solutions          3
S&P 500 companies now the
shortest life span we’ve ever
seen in recorded history.




           © 2012 BigVisible Solutions   4
The Lean Startup provides a
scientific approach to creating
and managing startups and get
a desired product to
customers’ hands faster.
              -Eric Ries


            © 2012 BigVisible Solutions   5
A startup is a human
institution designed to
deliver a new product or
service under conditions of
extreme uncertainty.
                                        -Eric Ries

          © 2012 BigVisible Solutions                6
Problem   Solution                       Process
                                        Waterfall or
 Known         Known
                                          Agile

 Known     Unknown                         Agile

Unknown    Unknown                      Lean Startup



          © 2012 BigVisible Solutions                  7
We are experiencing an
evolutionary leadership
mismatch.


          © 2012 BigVisible Solutions   8
Problem      Solution                      Process
  Unknown      Unknown                      Lean Startup


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

              © 2012 BigVisible Solutions                  9
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
                                          © 2012 BigVisible Solutions           10
complex                                       complicated
         (guidelines)                                      (good practice)
Lean
Startup


             chaos                                               simple
           (principles)                                    (best practice)


Source: Adapted from Cynefin & Leadership Agility
                                          © 2012 BigVisible Solutions        11
We are experiencing an
organizational structure
mismatch.


          © 2012 BigVisible Solutions   12
We’ve structured our organizations based
on the Industrial Era:

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

               © 2012 BigVisible Solutions   13
Intrapreneurs!
Entrepreneurs
are everywhere.

       © 2012 BigVisible Solutions   14
1982!!!
                              1976!!!




© 2012 BigVisible Solutions            15
… there is hope.

   © 2012 BigVisible Solutions   16
Experiment with
product & process


        © 2012 BigVisible Solutions   17
Sustaining                                                           Disruptive
    Innovation                                                           Innovation


 (kanban)                (scrum)                                         (lean startup)



Source: Adapted from Clayton Christensen
                                           © 2012 BigVisible Solutions              18
Don’t release it to
everyone all at once.


        © 2012 BigVisible Solutions   19
Target specific cohorts
with a/b testing.


         © 2012 BigVisible Solutions   20
Decouple from your
existing brand.


       © 2012 BigVisible Solutions   21
If you experiment in code,
come back to:
 a.   clean it up
 b.   iterate
 c.   productize
 d.   refactor
            © 2012 BigVisible Solutions   22
Right Fidelity
here is my paper prototype!




               © 2012 BigVisible Solutions   23
Wrong Fidelity
here is my paper prototype…




               © 2012 BigVisible Solutions   24
Experiment to align
business & product.



        © 2012 BigVisible Solutions   25
Source: Eric Ries The Lean Startup
                                     © 2012 BigVisible Solutions   26
You cannot learn if
your feedback loops
are broken.


       © 2012 BigVisible Solutions   27
© 2012 BigVisible Solutions   28
© 2012 BigVisible Solutions   29
Just because you can
measure it, does not
mean you should
measure it.

       © 2012 BigVisible Solutions   30
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
                                    © 2012 BigVisible Solutions   31
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
                                      © 2012 BigVisible Solutions                   32
Great Product
+ Wrong Business Model
 Failed Organization


        © 2012 BigVisible Solutions   33
© 2012 BigVisible Solutions   34
Business Models > Business Plans




                              Business Models Canvas




Source: Adapted from Alexander Osterwalder
                                        © 2012 BigVisible Solutions   35
Experiment to align
product & customer.


        © 2012 BigVisible Solutions   36
Source: Steve Blank   © 2012 BigVisible Solutions   37
That’s all good in theory but…
“Your version of Enterprise
and my version of Enterprise
are very different.”

           © 2012 BigVisible Solutions   38
That’s all good in theory but…
“I need to apply this to an
internal project with no
external customers!”

           © 2012 BigVisible Solutions   39
That’s all good in theory but…
“<insert your reason here>”




           © 2012 BigVisible Solutions   40
Problem   Solution                       Process
                                        Waterfall or
 Known         Known
                                          Agile

 Known     Unknown                         Agile

Unknown    Unknown                      Lean Startup



          © 2012 BigVisible Solutions                  41
Do you have unknown
/ unknown’s in your
enterprise?

       © 2012 BigVisible Solutions   42
Start small.




         © 2012 BigVisible Solutions   43
If you have internal users,
then perform customer
discovery & interview them.



          © 2012 BigVisible Solutions   44
They are users who impact
    business metrics.




                                  Finance Manager
Source: Dave Gray “Empathy Map”
                                   © 2012 BigVisible Solutions   45
Start small.




         © 2012 BigVisible Solutions   46
If you have User Stories,
add a Hypothesis that states
the expected outcome on a
specific metric.

           © 2012 BigVisible Solutions   47
Feed the learning back into
the product backlog…




           © 2012 BigVisible Solutions   48
Start small.




         © 2012 BigVisible Solutions   49
If you have a Kanban Board,
    add a Validate Column to
           the very right of it.




          © 2012 BigVisible Solutions   50
Teams should have a healthy
skepticism of the why of the
work you are doing.



           © 2012 BigVisible Solutions   51
If you cannot articulate the
expected outcome, then why
should the team build it?



          © 2012 BigVisible Solutions   52
It’s working if you hear:
“How are we going to
measure that?”


            © 2012 BigVisible Solutions   53
It’s working if you hear:
“We cannot wait that
long to learn!”


            © 2012 BigVisible Solutions   54
Where are the
unknown / unknown’s
in your enterprise?

       © 2012 BigVisible Solutions   55
Questions?




  © 2012 BigVisible Solutions   56
© 2012 BigVisible Solutions   57
David J Bland
              Agile Consultant




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


© 2012 BigVisible Solutions              58

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Lean Startup in the Enterprise

  • 1. Lean Startup in the Enterprise © 2012 BigVisible Solutions
  • 2. David J Bland Agile / Lean / XP / Kanban Startups & Enterprises eCommerce to Counter Terrorism © 2012 BigVisible Solutions 2
  • 3. Alex Osterwalder Eric Ries Steve Blank Dave McClure © 2012 BigVisible Solutions 3
  • 4. S&P 500 companies now the shortest life span we’ve ever seen in recorded history. © 2012 BigVisible Solutions 4
  • 5. The Lean Startup provides a scientific approach to creating and managing startups and get a desired product to customers’ hands faster. -Eric Ries © 2012 BigVisible Solutions 5
  • 6. A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty. -Eric Ries © 2012 BigVisible Solutions 6
  • 7. Problem Solution Process Waterfall or Known Known Agile Known Unknown Agile Unknown Unknown Lean Startup © 2012 BigVisible Solutions 7
  • 8. We are experiencing an evolutionary leadership mismatch. © 2012 BigVisible Solutions 8
  • 9. Problem Solution Process Unknown Unknown Lean Startup Leaders typically are not promoted if they’ve repeatedly stated that they do not know the problem or solution © 2012 BigVisible Solutions 9
  • 10. 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 © 2012 BigVisible Solutions 10
  • 11. complex complicated (guidelines) (good practice) Lean Startup chaos simple (principles) (best practice) Source: Adapted from Cynefin & Leadership Agility © 2012 BigVisible Solutions 11
  • 12. We are experiencing an organizational structure mismatch. © 2012 BigVisible Solutions 12
  • 13. We’ve structured our organizations based on the Industrial Era: - 1 Business Model - Scaling - Predictability - Execution - Organized by Function © 2012 BigVisible Solutions 13
  • 14. Intrapreneurs! Entrepreneurs are everywhere. © 2012 BigVisible Solutions 14
  • 15. 1982!!! 1976!!! © 2012 BigVisible Solutions 15
  • 16. … there is hope. © 2012 BigVisible Solutions 16
  • 17. Experiment with product & process © 2012 BigVisible Solutions 17
  • 18. Sustaining Disruptive Innovation Innovation (kanban) (scrum) (lean startup) Source: Adapted from Clayton Christensen © 2012 BigVisible Solutions 18
  • 19. Don’t release it to everyone all at once. © 2012 BigVisible Solutions 19
  • 20. Target specific cohorts with a/b testing. © 2012 BigVisible Solutions 20
  • 21. Decouple from your existing brand. © 2012 BigVisible Solutions 21
  • 22. If you experiment in code, come back to: a. clean it up b. iterate c. productize d. refactor © 2012 BigVisible Solutions 22
  • 23. Right Fidelity here is my paper prototype! © 2012 BigVisible Solutions 23
  • 24. Wrong Fidelity here is my paper prototype… © 2012 BigVisible Solutions 24
  • 25. Experiment to align business & product. © 2012 BigVisible Solutions 25
  • 26. Source: Eric Ries The Lean Startup © 2012 BigVisible Solutions 26
  • 27. You cannot learn if your feedback loops are broken. © 2012 BigVisible Solutions 27
  • 28. © 2012 BigVisible Solutions 28
  • 29. © 2012 BigVisible Solutions 29
  • 30. Just because you can measure it, does not mean you should measure it. © 2012 BigVisible Solutions 30
  • 31. 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 © 2012 BigVisible Solutions 31
  • 32. 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 © 2012 BigVisible Solutions 32
  • 33. Great Product + Wrong Business Model Failed Organization © 2012 BigVisible Solutions 33
  • 34. © 2012 BigVisible Solutions 34
  • 35. Business Models > Business Plans Business Models Canvas Source: Adapted from Alexander Osterwalder © 2012 BigVisible Solutions 35
  • 36. Experiment to align product & customer. © 2012 BigVisible Solutions 36
  • 37. Source: Steve Blank © 2012 BigVisible Solutions 37
  • 38. That’s all good in theory but… “Your version of Enterprise and my version of Enterprise are very different.” © 2012 BigVisible Solutions 38
  • 39. That’s all good in theory but… “I need to apply this to an internal project with no external customers!” © 2012 BigVisible Solutions 39
  • 40. That’s all good in theory but… “<insert your reason here>” © 2012 BigVisible Solutions 40
  • 41. Problem Solution Process Waterfall or Known Known Agile Known Unknown Agile Unknown Unknown Lean Startup © 2012 BigVisible Solutions 41
  • 42. Do you have unknown / unknown’s in your enterprise? © 2012 BigVisible Solutions 42
  • 43. Start small. © 2012 BigVisible Solutions 43
  • 44. If you have internal users, then perform customer discovery & interview them. © 2012 BigVisible Solutions 44
  • 45. They are users who impact business metrics. Finance Manager Source: Dave Gray “Empathy Map” © 2012 BigVisible Solutions 45
  • 46. Start small. © 2012 BigVisible Solutions 46
  • 47. If you have User Stories, add a Hypothesis that states the expected outcome on a specific metric. © 2012 BigVisible Solutions 47
  • 48. Feed the learning back into the product backlog… © 2012 BigVisible Solutions 48
  • 49. Start small. © 2012 BigVisible Solutions 49
  • 50. If you have a Kanban Board, add a Validate Column to the very right of it. © 2012 BigVisible Solutions 50
  • 51. Teams should have a healthy skepticism of the why of the work you are doing. © 2012 BigVisible Solutions 51
  • 52. If you cannot articulate the expected outcome, then why should the team build it? © 2012 BigVisible Solutions 52
  • 53. It’s working if you hear: “How are we going to measure that?” © 2012 BigVisible Solutions 53
  • 54. It’s working if you hear: “We cannot wait that long to learn!” © 2012 BigVisible Solutions 54
  • 55. Where are the unknown / unknown’s in your enterprise? © 2012 BigVisible Solutions 55
  • 56. Questions? © 2012 BigVisible Solutions 56
  • 57. © 2012 BigVisible Solutions 57
  • 58. David J Bland Agile Consultant [m]: +1 703 945 0700 [ e ]: dbland@bigvisible.com [ u ]: www.bigvisible.com [ t ]: @davidjbland © 2012 BigVisible Solutions 58