The greatest risk to business today is the pace of change, and entrepreneurship is the solution. This talk provides a preview of Eric Ries' Leader's Guide, which provides a framework for implementing Lean Startup throughout a company.

1. How corporates can lean in to the future
with Lean Startup
Making Elephants Dance
Janice Fraser
Director, Innovation Practice
November 2015

2. Keep in touch!
@clevergirl

3. 3 Pivotal points in time…and a fourth

4. Let’s take a moment to remember 1987.

5. Let’s take a moment to remember 1987.

6. Let’s take a moment to remember 1987.

7. Let’s take a moment to remember 1987.

8. Let’s take a moment to remember 1987.

9. Let’s take a moment to remember 1987.

10. “To meet the demands of
the fast-changing
competitive scene, we
must simply learn to love
change as much as we
have hated it in the past.”
–Tom Peters, 1987

15. Now let’s take a moment to consider today.

16. Now let’s take a moment to consider today.

17. Software is disrupting entire industries
$6B Valuation
Financial Services
$19B Valuation
Transportation
$3.2B Acquisition by Google
Home Automation
$3.3B Valuation
Travel & Hospitality
$20B Valuation
Entertainment

18. S&P 500 churn since 2002
ADDED TO the index LEFT the index

19. The greatest risk for any
business today is the pace
of change.

20. Our management theories are 100 years old, defining
“management” as creating efficiency through:
Source: Management Theory and Practice, G. A. Cole, 2004

21. Planning
Our management theories are 100 years old, defining
“management” as creating efficiency through:
Source: Management Theory and Practice, G. A. Cole, 2004

22. Planning
Organizing
Our management theories are 100 years old, defining
“management” as creating efficiency through:
Source: Management Theory and Practice, G. A. Cole, 2004

23. Planning
Organizing
Motivating
Our management theories are 100 years old, defining
“management” as creating efficiency through:
Source: Management Theory and Practice, G. A. Cole, 2004

24. Planning
Organizing
Motivating
Controlling
Our management theories are 100 years old, defining
“management” as creating efficiency through:
Source: Management Theory and Practice, G. A. Cole, 2004

25. Planning
Organizing
Motivating
Controlling
Our management theories are 100 years old, defining
“management” as creating efficiency through:
Source: Management Theory and Practice, G. A. Cole, 2004

26. For 100 years, the business
world has emphasized
planning and control as a
means of ensuring predictable
outcomes.

28. When change is your greatest threat,

29. When change is your greatest threat,
plans and predictions are (literally)

30. When change is your greatest threat,
plans and predictions are (literally)
unbelievable.

31. Tom Peters saw the problem
coming in 1987, but nobody
really figured out what to do
about it, until now.

32. Entrepreneurship is the solution,
creating a steady stream of innovation
that leads and responds to change.

33. Lean Startup is a management approach
that mitigates the risk of change, turning
it into an asset that can be leveraged, by
supporting entrepreneurship throughout
any company.

34. Lean Startup is not religion.
These are not rigid rules set in stone.
I don’t care if you use the jargon.
It’s the thought behind your action that counts.

35. JUNE & PETE’S
Wedding Cake
A STORY

36. JunePete

37. April
May
June
July
August

38. sedonaweddingcakes.com

39. freebestpictures.blogspot.com

40. thekitchn.com

41. Zoe Clark, The Cake Parlour

42. Zoe Clark, The Cake Parlour

44. sedonaweddingcakes.com

45. sedonaweddingcakes.com

46. sedonaweddingcakes.com
Zoe Clark, The Cake Parlour

47. Lean Startup

48. Lean Startup methodology
reconceives all our efforts as
experiments with a simple goal:
To test our strategies to see
which parts are working and
which are not.
—Eric Ries, The Leader’s Guide

49. 1. Begin with a clear hypothesis.
2. Test predictions empirically by giving
customers a chance to take some action.
3. Measure customer behavior.
4. Make a decision to act based on what
you’ve learned.

50. How do you retool for
entrepreneurship when your
management structure is
optimized for planning and
accountability processes that
look like this?
Analyze
Plan
Stakeholders
Feedback
Revise
Budget (staged-gate system)
Approve
Execute
Measure

51. Level 1: Project processes
Start prioritizing assumptions, running experiments, measuring outcomes,
and making learnings-based decisions.
Level 2: Broad company culture
Share the experience and value with leadership. Share the know-how with
teams. Emphasize experiential learning and corporate storytelling.
Level 3: Deep operating systems
Yes, You Can. Retool incentive, budget allocations, and other management
mechanisms.
To change your company, target three levels:

52. How The Process Level Works

53. release
release
MAKE
MAKE
THINK
release
MAKE
RISK=UNVALIDATEDEFFORT
TIME
Plot the difference

54. Lots of little wiggles
release
release
MAKE
MAKE
THINK
release
MAKE
RISK=UNVALIDATEDEFFORT
TIME

55. Lots of little wiggles
release
release
MAKE
MAKE
THINK
release
MAKE
RISK=UNVALIDATEDEFFORT
TIME

56. release
release
MAKE
MAKE
THINK
release
MAKE
RISK=UNVALIDATEDEFFORT
TIME
Each wiggle is a learning cycle
Build
Measure
Learn

57. It’s a blow to our egos when we
discover that a lot of our beliefs
about the future are wrong.
But when we get over that, it’s quite
liberating. We realize that we don’t
need to know everything.
We can put our ideas to the test and
change course based on what we
learn.
—Eric Ries, The Leader’s Guide

58. • Teams shift questioning from “can this be done” to “should
this be done?”
• Seeing predictions falsified inspires exploration and fosters
informed humility.
• Seeing customers actions creates confidence.
• Confidence creates a drive for definitive action.
• Experimentation discourages vagueness and ambiguity.
Impact of working at the Project Process level

59. Fostering the Entrepreneurial Culture

60. Fostering the Entrepreneurial Culture
Leadership
Your vision is your destination, and anything (or anyone) that gets in the way needs to be
open to change. People are the engine. Do your beliefs and values support or hinder
entrepreneurial innovation?

61. Fostering the Entrepreneurial Culture
Leadership
Your vision is your destination, and anything (or anyone) that gets in the way needs to be
open to change. People are the engine. Do your beliefs and values support or hinder
entrepreneurial innovation?
Storytelling
Tell stories at all levels of the organization, in large and small ways, all the time. How do
we talk about success and failure? What values are our stories reinforcing?

62. Fostering the Entrepreneurial Culture
Leadership
Your vision is your destination, and anything (or anyone) that gets in the way needs to be
open to change. People are the engine. Do your beliefs and values support or hinder
entrepreneurial innovation?
Storytelling
Tell stories at all levels of the organization, in large and small ways, all the time. How do
we talk about success and failure? What values are our stories reinforcing?
Team Structure
Entrepreneurial teams are cross-functional, collaborative, and fully dedicated. Recognize
the systems that are creating drag on your startup teams and begin devising strategies to
change them.

63. Change the Deep Operating Systems LAST
Project Finance
Establish startup boards that function like investors. Startups don’t fail, the just run out
of money.
Accountability
Re-evaluate how the Corporation monitors progress, manages risk, and measures
effectiveness. Implement an innovation accounting system that monitors value creation.
Performance Management
Rewarding people in both monetary and non-monetary ways for outcomes and value
creation, rather than mere output. It’s about the value of what you do not the quantity of
what you do.

65. Thank you!
@clevergirl