LeanMantra - Lean Startup Workshop

LeanMantra.in
Lean Startup workshop on April 13 2013

http://twitter.com/mtrajan
http://twitter.com/natwar86
http://twitter.com/mohanmax
http://twitter.com/vaidyatcr
http://twitter.com/bookbuzzrceo

Introduction ( 1 min each)
Name

About Self (30 seconds elevator pitch style)

What do you hope to get from this workshop

Agenda

Team Introduction
9:30 AM
9:50 AM Introduction to Lean (What & Why do Lean) Presentation
10:10 AM Idea Identification for activity & exercise Activity
10:30 AM Idea Selection ( through voting) Activity
10:40 AM Group/Team Formation Activity
10:50 AM Coffee Break
11:05 AM Introduction to Business Model Canvas Presentation
11:35 AM Create Business Model Canvas for your idea Activity
11:55 AM Introduction to validation board Presentation
12:05 PM Validation board activity ( Design expirement for problem hypothysis) Activity
12:20 PM What is an MVP ? Presentation
12:40 PM Lunch
Presentation &
1:40 PM How to interview customers (Including video) + wallet activity Actvity
2:20 PM Problem Interview Script creation Activity
2:40 PM Get out of the building to talk to the customers Exercise
4:40 PM Back from customer interviews Activity
4:40 PM Coffee Break
5:00 PM Problem Hypothesis Validation Learnings Share Activity
5:30 PM Address by Gautam Sinha Presentation
6:00 PM Feedback and Close

Is this the right team to build this ?

Will the Impact happen ?

Society
at Large

Stake
holder
s
Customers

Risk – the twin brother of uncertainty

Technology Risk – Can it be even built ?

Product Risk – What use case is most
important ?

Execution Risk – Can you get it done ?

Customer Risk – Will customers pay for
it and recommend ?

Market Risk - Aggregated Customer
risk

Law of life – Resources are limited

Your Time
Your Money
Your Energy
Your Supporters Patience

So order of addressing risk matters

99 % of the case

Removing Tech Risk
Removing Product Risk
Removing Execution Risk
Removing Customer Risk Market Risk
Limited Resources

You Run out

Lean

 Accomplish your business objectives
wasting a minimum of resources,
especially time

 Business Objective – Is you product
the right fit with the market

Lean Startup

It is language for startup product
management best practices.

Key tenet

Eliminating unknowns about customer/
market before anything increases the
odds of success

Lean Startup Provides
Mindset

Toolset

Motto

Product Startup Stages

Lean Startup Mindset

Learn before you execute

Lean Startup Toolset – MVP

Debug before you build

Lean Startup Motto

Minimize cycle
time

Stages of Product Startup

Problem/Solution Fit

User/Experience Fit

Product/Market Fit

Business Model/Growth Fit

Start with a problem statement

Dissect the Idea Anatomy

Vision ?
Problem ?
Solution ?
Beneficiary ?

List your guesses

Make a list of unknowns

Rank based on negative impact of
these unknowns

Experiment with unknowns in the
ranked order

FIRST TOOL – BUSINESS
MODEL CANVAS (BMC)

Business Model Canvas
 Every business can be described through 4
fundamental aspects
What is the offer at hand ?
Who is it for ?
What is needed for delivering the offer
What does it cost and can be expected in
return for the offer
 BMC splits this into 9 blocks

BMC IS THE
BALANCE SHEET OF AN IDEA

CUSTOMER SEGMENTS

which customers and users are you serving? which jobs do
they really want to get done?

images by JAM

Document Your Customer Segment(s)
Who is your early adopter?

Take an uncomfortably narrow guess

What problem can you solve for them?

How would they describe their problem?

Do you satisfy a basic need?

How important is it?

Can they afford it?

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5:00

VALUE PROPOSITION

what are you offering them? what job is that getting
done for them?
Value Proposition is a concise statement of the problem
& solution for that problem

images by JAM

Document Your Value Proposition

• Product: How do you do it? What does your
solution look like?
• Competition: What do customers do today?
• Technology / Market Insight: Why is the
problem so hard to solve?

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5:00

Simpa Networks

Simpa networks: provide energy via solar panels
through pay as you go format for bottom of the
pyramid customers

Disclaimer: We had no inside information in creation of these Business
Model. The BMC have been created using publicly available information
like websites, reports, personal experience etc.

Designed for 11-04-2013
The Business Model Canvas Iteration #

Key Partners Key Activities Value Proposition Customer Relationship Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

ACTIVITY – NOW AS A TEAM
CREATE THE BUSINESS MODEL
CANVAS FOR YOUR IDEA

20 mins

Activity Outputs

 Filled business model canvas
Clear description of Customer Segment
 Value Proposition Articulation

Problem Statement Separately
articulated
Solution Statement Separately
articulated

IF BMC IS BALANCE SHEET OF
YOUR IDEA THEN VALIDATION
BOARD IS P&L STATEMENT OF
YOUR IDEA

“A PIVOT IMPLIES LEARNING
SO SIGNIFICANT THAT
CHANGE OF COURSE IS
NEEDED” – TREVOR OWENS

Keep track of pivots

Design Experiments

Keep track of pivots

Design Experiments Measure Learning

LEARNING FASTEST IS THE
ONLY COMPETITIVE
ADVANTAGE

Example – Book Reviewer Relation
Management

 Book Reviewer Relationship
Management Software for
Authors is a Proposed New
Feature of the BookBuzzr Book
Marketing Suite.

Book Reviewer
Relationship Management

ACTIVITY – NOW AS A TEAM
FILL THE VALIDATION BOARD
FOR YOUR IDEA

15 min

Activity Output

Filled Validation Board for Problem
& Customer Hypothesis, riskiest
assumption

What is an MVP

Coined by Frank Robinson

smallest possible experiment to
test a specific hypothesis, all the
way up to the the tangible
realization of a product vision

Things to keep in mind (MVP)
 Is not a stripped version of the product
 It is a customer risk reduction tool for

customer
 Can also be thought as your idea debugger

 At very first level represents value proposition
rendered in some form that target customer
can experience and react to.

Things to keep in mind (MVP)
 Every idea has a different MVP
 B2C
 SMB

 B2B
 Mobile
 Web
 Physical Products
Each take different shape & form

MVP suitable for Problem Hypothesis

Customer Observation

&

Customer Interviews

NEXT SECTION

Customer Interview

LETS DO AN ACTIVITY FIRST

12 mins

Customer Interview Exercise
• Pair up with your neighbor

• To solve
• “Understand how he/she uses wallet/purse”

• Take 2 mins to write down the questions you wish to ask

• Take 5 mins to ask the questions and get answers

• Make notes when he/she is giving answers

• Group read out : 5 mins

IT IS SUPER EASY TO MESS
UP THE INTERVIEWS

“ANYBODY WILL SAY YOUR
IDEA IS GREAT IF YOU ANNOY
THEM FOR LONG ENOUGH”
@ROBFITZ

This slide is attributed to @RobFitz

 Never ask about their opinion
 Ask about their life

 Ask about specifics in the past

 (“Talk me through last time you

had this….”


WHAT ARE SOME
GOOD/BAD QUESTIONS

“Do you think it is a good idea”


“Would you buy a product that
solved this problem”


“How do you currently deal with
this problem”

“Talk me through last time you had
this problem”


“How much would you pay for
this”


“How much money does this
problem cost you”


“Who else I should talk to ?”


We had a customer meeting , did
we make progress

“Sounds great I love it”


“Brilliant let me know when it
launches”


Compliment + stalling tactic = they
don’t care


“Couple of people I can introduce
when you are ready”
( Is there a valid reason it cant be
now ?)


“I would definitely buy that”


DANGER – People can’t predict
their own behavior – FALSE
POSITIVE


Opinions are worthless


Real Learning

Concrete fact about customer lives

Solid Commitments

Not opinions


False positives create heartbreak
and waste in Build Measure Learn
cycle


Commitment is best signal

Give money
If not atleast conversation advance


Examples of advancement
Permission to contact again

Clear next meeting

Intro to decision maker

Commitment to run trial

Pre purchase


COMPLIMENTS ARE
COMMITMENTS


Rules for good conversation

Ask open ended questions
That leave with a commitment.


Interview in groups of 2
one person interviews and other
takes notes

Capture emotions
Use emotion symbols
 Happy
 Sad
 Don’t care
! Workflow
[] Problem
~ Obstacle
Emotions tell you how passionate he is about

Customer Interview Exercise (Again)
• Pair up with your neighbor (in this room )

• To solve
• “Understand how he/she uses wallet/purse”

• Take 2 mins to write down the questions you wish to ask

• Take 5 mins to ask the questions and get answers

• Make notes when he/she is giving answers

• Read out : 5 mins

SAMPLE PROBLEM
INTERVIEW SCRIPT

ACTIVITY – COMPLETE
VALIDATION BOARD &
PROBLEM INTERVIEW SCRIPT

20 mins

Activity Output

 Complete the method & measure
section of validation board
 Complete your own problem
interview script
 Identify 10 customer

EXERCISE
GO OUTSIDE OF THE
BUILDING
(CUSTOMER INTERVIEWS)

2 hours

SHARE PROBLEM HYPOTHESIS
EXPERIMENT RESULTS

Where are we ?

Problem / Solution User/Experience Product/Market
Idea Fit Fit Fit

Problem
Hypothesis Biz Model/Growth
Testing Fit

THANKS
Like us at
http://facebook.com/leanmantra

Contact@LeanMantra.in

LeanMantra - Lean Startup Workshop

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