Think Like an Agilist Denver
Startup Week

Ryan Martens @RallyOn

Social MISSION

A founda-on for the mobilize
ci-zen engineers around the globe with our employees, customers and partners

Zach Nies@zachnies

Why I careabout startups

Font Samplerhttp://media.kelbymediagroup.com/layersmagazine/images/columns/artoftype/may06/glyph-set.jpg http://en.wikipedia.org/wiki/File:Caslon-schriftmusterblatt.jpeg

2,500,000 CustomersRevolutionized an industry

Amazingteam, culture, product, and process

One problem…

Bad business

Revolutionized nothing

Amazing team, culture,product, process

I love to change industries

Apply new disciplinesto your startup

Become disciplined explorers…

who know how tobalance exploration
and execution

Increase yourodds of success

Typical approach

h;p://www.flickr.com/photos/isaacmao/380257543

Market research Product definition Product
requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS

Market research Product definition Product
requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS

Market research Product definition Product
requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS

Market research Product definition Product
requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS

Market research Product definition Product
requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS

Market research Product definition Product
requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS

Market research Product definition Product
requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS

HOW MANY GUESSES?

FIRST CONTACT WITHPOTENTIAL CUSTOMERS

h;p://www.flickr.com/photos/oregondot/4132135156

Create a plan topredict the
future h;p://www.flickr.com/photos/isaacmao/380257543

Why doesn’tthis work?

Need to create an environmentto
discover the future

Increase yourodds of success

Discover the future Vision &
Empathy Culture Business Model Frame Frame Frame Frame Build & Ship Build & Ship Build & Ship Build & ShipLearn Learn Learn Learn Test & Measure Test & Measure Test & Measure Test & Measure

Lean Startup

Customer Development

Explore Execute h;p://www.slideshare.net/sblank/the-­‐startup-­‐owners-­‐manual-­‐sxsw-­‐11954724

Frame Frame Build & Ship
Build & Ship LearnLearn Test & Measure Test & Measure Explore h;p://www.slideshare.net/sblank/the-­‐startup-­‐owners-­‐manual-­‐sxsw-­‐11954724

Startups are NOT smaller versionsof
big companies

Discover and solvecustomer’s problem

Explore h;p://www.slideshare.net/sblank/the-­‐startup-­‐owners-­‐manual-­‐sxsw-­‐11954724

Business Model

1 4 3 9 2
8 5 7 6

Example – iPod

+ Margin & Profit Walkman
for the digital age Design, Manufacturing, Marketing, Supporth;p://www.flickr.com/photos/mrmonochrome/93535053 h;p://www.flickr.com/photos/75001512@N00/4683351383

Now you havea bunch of
guesses

h;p://www.flickr.com/photos/isaacmao/380257543

Obscure the guesses with details

Guesses Frame & Empathize Learn
& Share Build & Ship Test & Measure Knowledge

Big Guess:We understand theproblem a
customer wants solved

Who isfeeling the pain?

What painare they feeling?

How do they makethat pain
go away today?

“Customers don’t care about your
solution. They care about their problems. Dave McClure

h;p://www.flickr.com/photos/adac-o/2535502416

Typicalmarket research: Customer attributes

h;p://www.flickr.com/photos/serpicolugnut/172616929

Innovationmarket research: Customer circumstances

h;p://www.flickr.com/photos/indigoprime/2481346616

h;p://www.flickr.com/photos/twostoutmonks/664314897

Milkshake Test What job isyour
solution being hired to perform?

Problem Interview Overview

Problem Interview Overview

Example - Iridium

1987

1987 1999 $5.2 B

1987 1999 $5.2 B 30,000
not 42M

1987 1999 $5.2 B 30,000
not 42M Sold for $25M

Next big guess: Our productsolves
the customer’s job to be done

Test yourlow fidelity Minimum Viable
Product

Limited accessto a rough prototype

Example - $40 MVP

Next big guess:Our business model
can be profitable

High level business model h;p://www.forentrepreneurs.com/saas-­‐metrics/

Pivot orPersevere?

Explore h;p://www.slideshare.net/sblank/the-­‐startup-­‐owners-­‐manual-­‐sxsw-­‐11954724

Explore h;p://www.slideshare.net/sblank/the-­‐startup-­‐owners-­‐manual-­‐sxsw-­‐11954724

Next big guess:We can sell
our offer or We can acquire and retain users

Next guess:We know how to
sell our product

Product PositioningFor (target customers)Who (have
the following problem)The (product name) is a (describe theproduct or solution)That provides (key benefit)Unlike (reference competition),The product/solution (describe the keypoint of competitive differentiation)

You ?

You

FindEarlyvangelists

Next guess:Our draft sales planwill
close or activate customers

You

h;p://www.flickr.com/photos/-nfoilraccoon/5555060858

Get out and sell* *as
founders,not by hiring sales people

Sales Funnelh;p://www.flickr.com/photos/carlagates247/5524789016

Activation Funnelh;p://www.flickr.com/photos/500hats/577630547

Product Roadmap 8/31/10 10/30/10
1/?/11 3/?/11 Release 1 Release 2 Release 3 Release 4Theme: UI Theme: Reporting Theme: Dashboards Theme: AdminFor X, this UI release For <who>, this release For <who>, this release For <who>, this releaseprovides <what value> provides <what value> provides <what value> provides <what value>Key Features: Key Features: Key Features: Key Features: 1. Feature A 4. Feature B’ 7. Feature B’’ 10. Feature F 2. Feature B 5. Feature C’ 8. Feature D’ 11. Feature G 3. Feature C 6. Feature D 9. Feature E

Next guess:We can position our
company brand

h;p://www.flickr.com/photos/bikracer/4571472032

Pivot orPersevere?

Pivot or Persevere checklist

Executeh;p://www.slideshare.net/sblank/the-­‐startup-­‐owners-­‐manual-­‐sxsw-­‐11954724

Explore Execute h;p://www.slideshare.net/sblank/the-­‐startup-­‐owners-­‐manual-­‐sxsw-­‐11954724

“Get out ofthe building!”Steve Blank

“Meaningemerges through interaction” Dave Snowden

Empathy and insight

Build empathy for ourusers and
customers

h;p://www.flickr.com/photos/skillerphotos/7875656716

Design Thinking h;p://www.flickr.com/photos/rkeefer/164636147

?

Uncertainty

Uncertaintymakes it difficult

Where doesuncertainty live?

Brown, Tim (2009-­‐09-­‐16). Change by
Design (Kindle Loca-on 1984). Harper Collins, Inc.. Kindle Edi-on.

Where are you?

Brown, Tim (2009-­‐09-­‐16). Change by
Design (Kindle Loca-on 1984). Harper Collins, Inc.. Kindle Edi-on.

Level of uncertainty Brown, Tim
(2009-­‐09-­‐16). Change by Design (Kindle Loca-on 1984). Harper Collins, Inc.. Kindle Edi-on.

When toexplore vs execute?

What to doExecute Brown, Tim
(2009-­‐09-­‐16). Change by Design (Kindle Loca-on 1984). Harper Collins, Inc.. Kindle Edi-on.

What to do Brown, Tim
(2009-­‐09-­‐16). Change by Design (Kindle Loca-on 1984). Harper Collins, Inc.. Kindle Edi-on.

What to do BigCompanies Brown,
Tim (2009-­‐09-­‐16). Change by Design (Kindle Loca-on 1984). Harper Collins, Inc.. Kindle Edi-on.

BigCompanies h;p://www.flickr.com/photos/ironnickel/6076087519

Startupsh;p://www.flickr.com/photos/elcapitan/2387917709

30 yearsof science

Unordered Ordered High LowUncertainty UncertaintyChaotic
Complex Complicated Simple

Unordered Ordered Complex ComplicatedChaotic Simple

Unordered Ordered Complex Complicated Chaotic
Simple

Unordered Ordered E E x
x p e l c o u r t e e

Unordered Ordered E D m
e e l r i g b e e r a n t t e

Unordered Ordered P r P
e p l a a r n e

Unordered Ordered E n t
G M r e a e n n p e a r r g e a e n l r e u r

Ideal team sizesComplex Complicated <
30 People < 150 People < 7 People > 150 PeopleChaotic Simple

Example – Taxi Cabs

h;p://www.flickr.com/photos/emilyrides/5048843409

Brown, Tim (2009-­‐09-­‐16). Change by
Design (Kindle Loca-on 1984). Harper Collins, Inc.. Kindle Edi-on.

Apply new disciplinesto your startup

Become disciplined explorers…

Don’t squander your time

buildingthe wrong business

Do what you love

Love what you do

Books that informed this talk

People who informed this talk
David Max Ash ClaytonSnowden Boisot Maurya Christensen Frank H. Eric Knight RiesGeoffrey Steve Moore Blank

h;p://www.flickr.com/photos/fla;op341/224597838

@zachnies @RallyOn#DenverStartupWeek