Introduction to The Lean Startup

AOL UnUOctober 23, 2012

INTRO TO LEAN

Danny BoiceCo-Founder & CTO, Speek / Resident, AOL Fishbowl LabsTwitter: @DannyBoiceDanny@speek.com

Adam BerkDirector, Lean Startup Machine Twitter: @AdamBerk Adam@LeanStartupMachine.com

Eliminate WasteBootstrapping

Product/Market Fit

Pivot

Iterate

Agile Development

Problem/Solution Fit

Customer Development??

??

?

?

UX Design

WHAT IS LEAN?

A set of processes used by entrepreneurs to develop products and markets, combining Agile Software Development, Customer Development and existing software platforms (usually FOSS).en.wikipedia.org/wiki/Lean_Startup

Lean = What to buildAgile = How to build

What is a “pivot”?

A structured course correction designed to test a fundamental new hypothesis about the product.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't ashamed of your product, you shipped too late”- Reid Hoffman

WHY SHOULD I CARE?

Something is fundamentally

wrong

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!!!

FAILUREThe Secret to Success

OMG!!!

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

•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

What’s the point?

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 ConstableUse 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?

•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 ComplexBe 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

MVP Method

1.Problem Exploration: Exists? Who?2.Product Pitch: Collect currency3.Concierge: Deliver customer

experience

Stages increase in opportunity cost

3 Stages...

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 BoardDemo

http://bit.ly/lsm-canvasvideo

Read the fine print on the Canvas

Get Out of the Building

TALK TO PEOPLE

Intensive 3-Day Workshops200 Workshops Globally in 2013