LEAPLEAN ENTREPRENEUR ACCELERATOR
PROGRAM
Welcome
Topics: Lean Startup OverviewMake Your Idea TangibleLean ExperimentsDecisions – The Art of the Pivot
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Agenda Day 18:00 – 8:30 Breakfast – Let’s Eat!8:30 – 9:00 Intro to Lean Startup9:00 – 9:30 Enterprise Innovation Spectrum9:30 – 11:00 Doing it – LEAP Loop #1 Exercise11:00 – 11:30 Create Your Experiment11:30 – 2:30 Get Outside – run your experiment!2:30 – 3:00 Close the Loop3:00 – 3:30 Building Your Case3:30 – 5:00 LEAP Loop #25:00 + Optional work time (we’ll stay as late as needed)
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What is LEAP?Goal: Learn and apply lean startup principles by doing, so you never go back to the old way.
What to expect: - Get outside your comfort zone- The need for speed – we’ll go fast!- We’re here to help, don’t hesitate to ask- Have fun!
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How will you do it?
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Ready to LEAP in?
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What is “Lean”?Elimination of waste in the production and delivery of value to the customer…
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What is a Startup?
“A startup is an temporary organization formed to search for a repeatable and scalable business
model.” – Steve Blank
“A human institution designed to create new products and services
under conditions of extreme uncertainty.” – Eric Ries
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What is “Lean Startup”?Elimination of waste in searching for a scalable business model, or significant business impact.
Goal for lean startups: Learning!
Lean Startup Myths• Lean = cheap or poor quality• Only for high tech (hint: it works in large
orgs too)• Replaces vision with customer demandsCopyright © 2013 Moves the Needle LLC All Rights Reserved
Innovation Spectrum
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How do we search?Begin with an educated guess- OK to begin without the answers, you’re probably wrong
anyway.
Change guesses into facts using experiments- Measure behavior, test hypotheses, capture surprises- Make decisions based on the results of your experiments
Move through the loop quickly- Build the absolute minimum required to test your
assumptions- Build your case one experiment at a time- Get moving – NOW! (rinse and repeat forever)
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Source: Eric Ries, The Lean Startup
Lean Experimentation
Rigor Inspiration
Rapid Experimentation Continuum
Sustaining Innovations
BreakthroughInnovations
(disruptive)
No Experience(unknown)
Experienced(known)
OptimizeLow Risk - few unknowns
SearchHigh Risk - many
unknowns
MeasureFocus on the key metrics that matter – ignore vanity metrics.
- Measure important customer behavior- Willingness to exchange “currency” (time,
attention, $$$)- What activities must we do to deliver customer
value- Something else unique to your idea?
Use metrics to eliminate gap between “say vs. do”, focus on metrics involving “do”.
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Lie Witness NewsWhy don’t we just ask customers if they will use our product?
http://www.youtube.com/watch?v=Vp4SnmOxP0U
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Learn and DecideThe output from lean experimentation is new knowledge and insights about your customer or business model.
• Build a case over time, using multiple experiments
• Experiments to learn, not just validate.• Savor the surprises! • Is your confidence increasing or decreasing?• Why, why, why?
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Let’s Get Loopy!The Lean Startup Loop
Exercise – Run the Loop0:05 – Review and post your idea (customer + problem + solution)
0:15 - Brainstorm your riskiest assumptions0:10 – Narrow to your top 3 assumptions0:05 – Document your Leap of Faith Assumption
0:10 – Brainstorm hypotheses0:05 – Document a single hypothesis
0:15 - Brainstorm experiments to test hypothesis0:10 – Narrow to a single experiment0:05 - Document your experiment
– Build and run your experiment outside with real customers0:15 – Learn as a team – close the loop
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Exercise 1Make Your Idea Tangible
Document Your Idea (:05)Tangible, measurable solution to a specific customer problem or pain – be specific!
Task: Post 3 sticky notes on your posterCustomer: Who is experiencing the problem.Problem: What is the customer’s problem Solution: Your proposed solution to the problem
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What are Assumptions?
“Something taken for granted or accepted as true without proof”
Opinions vs. Facts
(Hint: What you think is fact, is likely an assumption)
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Exercise 2Leap of Faith Assumption
Brainstorm Assumptions (:10)• What customer behaviors must take place
for your solution to be adopted?• What assumptions are you taking for
granted as fact?• What keeps you up at night?
Task: Write down as many assumptions as possible as a team, one assumption per sticky note.
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Narrow Assumptions (:10)• What is the biggest assumption that if false,
will cause you product to fail?• What is most unknown, where do gaps exist?• Focus on customer behavior related
assumptions
(ex: Sports cars lovers will drive an electric car)
Task: Narrow your assumptions using the LEAN Loop poster 2x2 grid.
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Post Your Leap of Faith (:05)This is the riskiest assumption for your business idea.
“If this is not true, we’re out of business”
(ex: Sports cars lovers want an electric car)
Task: Place a single sticky note of your riskiest, LOF assumption on your poster.
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Exercise 3Hypothesis
If we do X, Y% of people will behave in way Z
X= Your solution (the carrot)Y% = Your target metric (the number)Z = The customers’ behavior (the
hoop)
Create Hypothesis (:05)
If we do X, Y% of people will behave in way Z
Task: Write down your hypothesis on a sticky note, and place on your poster.
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Pitch (:01)
Customer + Problem + Solution + LOF
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Exercise 4Lean Experiments
Why Lean Experiments?Reduce the risk associated with resource investment, move faster with more certainty.
• Change opinions into facts• Inform our decisions with data and customer insights• Separate customer words from behavior – say vs. do!
Output = Insights + Data(what did I learn from the customer + what
behavior did I measure)Copyright © 2013 Moves the Needle LLC All Rights Reserved
Brainstorm Experiments (:15)
• Will his experiment will test your hypotheses?• Measure real behavior (or as close to it as possible)• Can you get an answer quickly!• Capture surprises as well as data
Important: Use behavior + “currency exchange” to eliminate say vs. do – NO SURVEYS – KEEP IT HUMAN
(currency = time, money, attention, personal info, usage)
Task: Brainstorm at least 3 different experiment methods listed your survival guide.
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Choose 1 Experiment (:10)
• Can you get your answers quickly?• How will you measure behavior?• How will you interact in person with your target
customer?
Did we mention:NO SURVEYS + KEEP IT HUMAN
Task: Select the best experiment to run first (use 2x2 for help)
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Document Experiment (:05)Task: On your poster, complete a sticky note for each of the following:- Describe the experiment- What specific behavior will you measure?- What currency will you collect?- Minimum success criteria (ex: 50% sign-up)
NO SURVEYS!KEEP IT HUMAN!
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Go! (2:45)Run your experiment in the wild- Don’t tell people this is an experiment- Collect contact info so you can follow-up
later- Ask why or why not – look for surprises!- Stay out of jail…
Return by 2:15pm
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Learn and DecideClosing the Loop
What are you looking for?A strong behavioral response from your target customer, confirming or denying your hypothesis.- Did your numeric hypothesis pass or fail?- Do you know why or why not?- What surprised you?
Ex: 50% of small business signed up for our online beta program, providing their email and contact info.
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Output = LearningWhat insights did you encounter which change the way you think about your customer..?
How painful is the problem? Does it exist at all? - Vitamin > Medicine > Addictive Drug
Are they trying to solve it today?- What process, if any, are they taking to solve their
problem
What were your biggest surprises?Copyright © 2013 Moves the Needle LLC All Rights Reserved
The Art of the PivotA significant change in direction based on new customer insights, where the vision remains the same.
Idea: App to help diabetics maintain healthy eating habits.
Insight: “Diabetic caregivers often care more than patients about maintaining healthy habits”
Pivot to: App for diabetic caregivers instead of diabetics
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Close the Loop (:15)Based on what you learned, Is your Leap of Faith true or false..? Why or why not?
If true – Persevere!- Move on to next leap of faith, repeat loop process- Push to be more aggressive for next experiment
If false – Pivot!- Change one or more components of your Idea, Repeat loop
process - Important: leverage insights gathered during your experiment!
Document updates on your poster and canvas - Create new sticky notes and place them on top of existing
notes Copyright © 2013 Moves the Needle LLC All Rights Reserved
Pitch 2 (:03)
Customer + Problem + Solution + LOF + Experiment + Decision
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Let’s Get Loopy Again!Rinse and Repeat –
Forever!
Loop to the Start, Begin Again
• Review/update your vision and idea• Pick your next Leap of Faith assumption to
test• Create a new hypothesis for next experiment• Create the next experiment to test your next
hypothesis• Run your next experiment with real
customers!
Task: As a team, run through the steps of your poster, asking for mentor help if needed.
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Digital ExperimentsRun a digital experiment overnight• Unbounce.com• Bit.ly• Wufoo.com• MailChimp.com• Godaddy.com• Craigslist.com• Facebook Ads• Google AdWords
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Congrats!You Survived Day 1
Agenda Day 28:00 – 8:30 Welcome back check-in9:30 – 10:00 Breaking frame10:00 – 10:30 Pitch Updates (tell your story)~11:00 – 2:00 Go outside! Experiment #12:00 – 3:00 Closing the loop 3:00 – 4:00 Breaking frame4:00 – 4:30 Experiment plan #2 4:30 – 5:00 Operationalize LEAP (now what?)
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Day 1 - ReflectionsWhat did you feel and observe?
How is this process different than your current way of working?
Are we uncovering game-changing ideas for our customers?
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Judge the Search…Teams are just as important as ideas- Teams must demonstrate the ability to “search”, in addition
to their idea’s viability. No team gets it right the first time.
Real customer behavior trumps opinion- Teams must demonstrate the ability to generate data from
customers using behavioral experiments.
Evidence builds in small increments over time- Teams must move through multiple experiments loops in
small increments, in order to increase confidence over time.
Judge the Business Model
Identify a specific customer- Teams must demonstrate understanding of their specific
customer segment, and insights related to the customer’s desired outcomes.
Deliver value to the customer- Teams must demonstrate their proposed solution is
delivering value to their target customer, via currency exchange (time, attention, dollars)
Generate positive business impact- Teams must demonstrate Intuit can extract value for
shareholders (and employees as well)
Before we Begin, Review…• Review/update your vision and idea• Pick your next Leap of Faith assumption to
test• Create a new hypothesis for next experiment• Create experiment(s) to test your next
hypothesis• Run your next experiment with real
customers!
Task: As a team, run through the steps of your poster, asking for mentor help if needed.
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Pitch – (:03)
Tell Your Story
Vision + Customer + Problem + Solution + LOF + Experiment 1
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What are you looking for?A strong behavioral response from your target customer, confirming or denying your hypothesis.- Do you know why or why not?
How painful is the problem? Does it exist at all? - Vitamin > Medicine > Addictive Drug
Are they trying to solve it today?- What process, if any, are they taking to solve
their problem
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Example – LEAP• Vision: Create entrepreneurs inside corporations• Idea: A 2-day “lean competition” for entrepreneurs at big
companies– Customer Segment: Internal entrepreneurs at corporations– Customer Problem: I don’t know how to move my new idea forward– Value Proposition: Jumpstart your idea while learning lean startup
principles– Revenue Model: Fee to attend
• Leap of Faith: If we conduct a startup competition, entrepreneurial-minded employees will attend and make rapid progress on their ideas
• Hypothesis: At least 3 teams will attend an event, and at least 1 team will validate their business idea with real customers.
• Experiment: Conduct a LEAP competition in San Diego• Metrics/Currency: Number of entrepreneurs who attend, idea
success, currency is willingness to spend time spent away from day job.
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Let’s get Loopy - Again!Repeat until your business is validated (or
not)
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Final LoopDid you get a strong behavioral response from your target customers?- Did your numeric hypothesis pass or fail?- Do you know why or why not?- What surprised you?
What is your decision as of right now?- How confident are you in this decision?
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Pitch 3 – Final (:05)
Tell Your Story
Vision + Customer + Problem + Solution + LOF + Experiment 1, 2, 3 + Final Decision
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Next Steps• Try it – Don’t wait for permission to run
experiments• Start small, think big• Set aside specific time for experiments• Help each other – you’re in the club• Include leaders in the process
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Business Model Canvas
Business Model Canvas
1 1
2
Start with Customer, then BusinessUse learning from customers to inform how to create business
1 1
2
3
3
5
5
6
4 CUSTOMERBUSINESS
Vision: Create Intrepreneurs…
Jumpstart your idea quickly….
Lean lean startup principles…
Find out if customers like your idea…
Have fun!
Intrepreneurs
Product Teams
Academies
(GMs, pipeline owners, shareholders)
Fees to attend
% of New ideas in market
Word of Mouth
Event + follow-up support from the community.
LEAP MentorsLEAP Content
Conduct eventsFollow-up coaching
Corporations
Conferences
Lean Startup community (Eric)
Per-event: Facilities, facilitators(~$6,000 est.)
IDEA: 48 hour startup competition for corporate intrepreneurs
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Jumpstart your idea quickly….
Lean lean startup principles…
Find out if customers like your idea…
Have fun!
Intrepreneurs
Product Teams
Academies
(GMs, pipeline owners, shareholders)
Fees to attend
% of New ideas in market
Word of Mouth
Event + follow-up support from the community.
LEAP MentorsLEAP Content
Conduct eventsFollow-up coaching
BUsLean Startup community (Eric)
Per-event model(~$6,000) + employee time
IDEA: 48 hour startup competition for internal entrepreneurs
Vision: Create Entrepreneurs…
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Thanks!
Now go do it!