Experienced Agile teams can be 4 times more productive than non-Agile teams. But how much of this increased productivity is wasted on building the wrong things? By using concepts from The Lean Startup you can dramatically improve your ability to build functionality that users want, will pay to have, and use. This talk will introduce the key ideas of The Lean Startup and how you can use these concepts in you business, even if you aren’t at a startup.

1. Combining Agile &
Lean Startup Practices

2. Zach Nies

3. @zachnies

4. Why am I here today?

6. Success, but they
weren’t living any
dream

7. Discover & promote
the tools that enable
success while living
the dream

8. How I got here

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

12. 2,500,000
customers

16. Vision: Reinvent
collaboration

17. Amazing team,
exactly the culture I
dreamed of creating

18. Great product

19. One problem:
Bad business

20. Wasted effort

21. Why am I doing this?

22. Live inside the Internet

24. Building the
wrong things

25. For the
wrong people

26. Biggest waste
in our industry

27. Features Used in a Typical System
Often or always Sometimes
used: 20% Rarely
16%
19%
Never
Often
45%
13%
Always
7%
Rarely or never
Standish Group Study Reported at XP2002 by Jim Johnson, Chairman used: 64%
© 2004 Poppendieck.LLC

28. !"#$%%&&&'()*+,-**(.//*'012%34--*&+,5'!326

29. Proven science and
Lean Startup
practices

30. Build the correct
things for the right
people

31. !"#$%%&&&'7+084'012%#!131*%14-51,913%:;<=;<>;>?6

32. We have recipies

35. !"#$%%-,'&+8+#-9+.'145%&+8+%@#+4./A219-/6

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38. M-08I6N-,36.,96OC,3!+.6H,94-*'6PQ34-2-6R4154.22+,56PQ#/.+,-9$6P2(4.0-6O!.,5-'6
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39. !"#$%%019-(-"-4'012%(/15*%9.B+9A/.4+(--%.40!+B-%=KKL%KL%=:%+,3419)0+,5D8.,(.,D.3DQ0/.+2'.*#Q6

42. Which recipe?

46. Becoming a chef

47. Gaussian
distributions
!"#$%%.4Q+B'145%.(*%01,9D2.3%K:;=KK:6

48. Gaussian
distributions
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49. Probabilities

50. 80 / 20

51. Power laws and Pareto distributions
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52. Other Pareto distributions
!"#$%%.4Q+B'145%.(*%01,9D2.3%K:;=KK:6

53. Low probability
events have higher
impact

54. Possibilities

55. An example

56. 8’1’’
2’5’’
3.3 x
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57. !"#$%%&&&'7+084'012%#!131*%Y)4B-3*1,%:<?L:V:<KL6

58. Bill Gates
The
Entire
610 x
Room

59. 99.8 / 1

60. Business involves
many Pareto
distributions

61. !"#$%%&&&'7+084'012%#!131*%B+43)./-C-*--%?;KZK?=?>>6

62. How do we make
sense of this?

63. Plausible Probable
Unordered Ordered

64. Plausible Probable
Unordered Ordered

65. Plausible Probable
Unordered Ordered

66. Plausible Probable
S E
e x
a e
r c
c u
h t
e
Unordered Ordered

67. Plausible Probable
Established
Startup
Company
Unordered Ordered

68. A little more to
this at scale

69. Plausible Probable
Unordered Ordered

70. Plausible Probable
Chaotic Complex Complicated Simple
Unordered Ordered

71. Plausible Probable
Complex Complicated
Chaotic Simple
Unordered Ordered

72. Plausible Probable
Complex Complicated
Chaotic Simple
Unordered Ordered

73. The Cynefin Framework
Complex Complicated
Cause & Effect is only Cause & Effect is not
apparent in obvious, understood
retrospect, and not through analysis and
repeatable is repeatable
Disorder
Cause & Effect is
Cause & Effect is not obvious to all and is
perceivable repeatable
Chaotic Simple
Unordered Ordered

74. How about an
example?

75. Music Industry in 2000 - Napster
Complex Complicated
Independent Managing a large tour
musicians self
publishing online
Disorder
Managing a NIN tour
Major label online
distribution CD distribution
Chaotic Simple
Unordered Ordered

76. Taking action

78. Taking Action
S E
e x
a e
r c
c u
h t
e
Unordered Ordered

79. Existing Product & Users
Complex Complicated
Disorder
6
Chaotic Simple

80. New Product or Users
Complex Complicated
Disorder
6
Chaotic Simple

81. Search or
Execute?

82. Where are you?
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83. What to do
Execute
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84. What to do
Execute
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85. Execute

87. Flow of Value
Feature to Release
@3.8-!1/9-46
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6]-BD_#*6
75+%
2)1"(8'%9$):#;.-%
!"#$% &#$'()#% &#$'()#%% &#$'()#%!.% &#$'()#%/#$"0% &#$'()#% &#$'()#%
*#+,-.% /#$"0%'1%2(336 *#4#3156#.'6 '1%/#3#$+#% /#3#$+#% <166(.,8$'#"%
Product
Features
Story to Code
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=#$6% ?'1)0%/#$"0% ?'1)0%!.% ?'1)0% ?'1)0%
]-B6`6W-*36
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2)1"(8'%7A.#)%
>$8:31-% '1%2(33% 2)1-)#++% B88#5'#"% /#3#$+#"%
Delivery
Team

88. Idea to Customer
9$.$-#6#.'%=#$6%
*#3,4#)0%=#$6+%
2)1"(8'%9$):#;.-%
?$3#+%@%?(551)'%
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23$..,.-% ?'##),.-% @%EB% a <(+'16#)% ?(88#++%
a >(+,.#++% a B3318$;1.+% a &#$'()#% a ?$3#+% a H+#)%?$;+I$8;1.%
Portfolio 2),1),;#+% /#3#$+#+% a =#8D.,8$3%
a =D#6#+% a /#4#.(#+%
a >("-#'% a &#$'()#%
/1$"6$5+%%
Allocations
Themes
Feature to Release
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2)1"(8'%9$):#;.-%
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*#+,-.% /#$"0%'1%2(336 *#4#3156#.'6 '1%/#3#$+#% /#3#$+#% <166(.,8$'#"%
Product
Features
Story to Code
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=#$6% ?'1)0%/#$"0% ?'1)0%!.% ?'1)0% ?'1)0%
]-B6`6W-*36
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2)1"(8'%7A.#)%
>$8:31-% '1%2(33% 2)1-)#++% B88#5'#"% /#3#$+#"%
Delivery
Team

89. Phases hide uncertainty

90. ;6 =6 <6 :6 >6 ?6 Z6
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Big 6bH
6@C*3-2DW6
6 66
Bang!
;6 ?6
>6
=6
<6 :6

91. ;6 =6 <6 :6 >6 ?6 Z6
O!.43-4 6]-*+5, 6@#-06 6 6O19- 6 6H00-#3DW 6 6@C*3-2DW6 6bH
Design
6 66
;6
Chosen! ?6
>6
=6
<6 :6

92. Existing Product & Users
Complex Complicated
Disorder
6
Chaotic Simple

93. Mitigate uncertainty
;%=6 >6 ?6
O!.43-4 6R41313C#- 6 6H5+/-6T-/-.*-*6 66 6 6 6@C*3-2DW6bH 6
66
;%=6 >6
<',%:',6
<';%:%;6 <'=%:'=6 <'<%:'<6

94. Mitigate uncertainty
;%=6 >6 ?6
O!.43-4 6R41313C#- 6 6H5+/-6T-/-.*-*6 66 6 6 6@C*3-2DW6bH 6
66
;%=6 >6
Design
<';%:%;6 <'=%:'=6 Chosen!
<'<%:'<6
<',%:',6

95. 2-4x ?

96. Slack
!"#$%%&&&'7+084'012%#!131*%>&.%?:KKVVZ=<;6

97. Search

98. “Not all those who
wander are lost
J.R.R. Tolkien

99. !"#$%%&&&'7+084'012%#!131*%8/-.40!1*%:>:;KZ=ZKZ6

100. !"#$%%&&&'7+084'012%#!131*%?L;;:ZL;cdK:%?=L?:LLZLZ6

101. Anthropologist

102. !"#$%%&&&'7+084'012%#!131*%0!)08*+22+,*%=L;VKL?<K<6

103. “Get out of
the building!”
Steve Blank

104. “The only valid model of a
complex system is the
system itself.
Murray Gell-Mann

105. 4 Dots

106. 6 Connections

107. 64 Patterns

108. 10 Dots

109. 45 Connections

110. ? Patterns

111. Patterns
35,184,372,088,832

112. In business a few
patterns are more
valuable than all
the rest

113. Searching
is finding
those patterns

114. !"#$%%&&&'7+084'012%#!131*%49-012%:<:<V=<:<L6

115. Track
Experiment Run and Validated
Hunch Hypothesis
Design Measure Learning
The flow of knowledge

116. Experiment
Design

117. !"#$%%&&&'7+084'012%#!131*%B+43)./-C-*--%?;KZK?=?>>6

118. Lean Startup
and
Customer Development

119. !"#$%%&&&'*/+9-*!.4-',-3%*(/.,8%3!-D*3.43)#D1&,-4*D2.,)./D*Q*&D;;V>:Z=:6

120. !"#$%%&&&'*/+9-*!.4-',-3%*(/.,8%3!-D*3.43)#D1&,-4*D2.,)./D*Q*&D;;V>:Z=:6

121. !"#$%%&&&'*/+9-*!.4-',-3%*(/.,8%3!-D*3.43)#D1&,-4*D2.,)./D*Q*&D;;V>:Z=:6

122. !"#$%%&&&'*/+9-*!.4-',-3%*(/.,8%3!-D*3.43)#D1&,-4*D2.,)./D*Q*&D;;V>:Z=:6

124. Development
Marketing
Sales

125. Problem Team
Solution Team

126. Problem Team
Solution Team

127. For whom, what
problem are you
solving?

130. Find prospects
and
Earlyvangelists

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

132. Problem Interview

133. Who is
feeling the pain?

134. What pain
are they feeling?

135. How do they make
the pain go away
today?

136. !"#$%%&&&'7+084'012%#!131*%49-012%:<:<V=<:<L6

137. Testable
hypothesis

138. Problem Interview Overview
Running Lean by Ash Maurya, page 118.

140. !"#$%%&&&'7+084'012%#!131*%.9.0U1%=><>>K=:;?6

141. Typical
market research:
Customer
attributes

142. !"#$%%&&&'7+084'012%#!131*%*-4#+01/)5,)3%;Z=?;?V=V6

143. Innovation
market research:
Problem discovery

144. !"#$%%&&&'7+084'012%#!131*%*-4#+01/)5,)3%;Z=?;?V=V6

145. What is your
competition?

146. !"#$%%&&&'7+084'012%#!131*%,8.4+2%?Z?;LVKV=V6 !"#$%%&&&'7+084'012%#!131*%;?<<V?L:cdKK%=:VL=ZK;?K6

147. !"#$%%&&&'7+084'012%#!131*%/+8-A3!-A54.,9A0.,C1,%>??;L?<:K;6 !"#$%%&&&'7+084'012%#!131*%Y145-(4.e+/%=:=;?V?;=;6

148. Milkshake Test
What job is your
solution being
hired to perform?

149. Where are you?
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150. Types of Innovation
Sustaining
Sustaining
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151. Types of Innovation
Disruptive
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152. !"#$%%&&&'7+084'012%#!131*%B+43)./-C-*--%?;KZK?=?>>6

153. Solution Interview

154. Problem Team
Solution Team

155. Who:
Early adopters

156. How:
Make money

157. What:
Primary problem

158. The
[feature name]
will solve the
[problem name]

159. Testing your low
fidelity MVP

161. Solution Interview Overview
Running Lean by Ash Maurya, page 142.

164. Build the MVP

165. Find
Earlyvangelists

167. O)*312-46T-/.U1,*!+#*66
F-(%f1(+/-6R419)03*6J#'KL##5KJ)1A%
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168. Test Positioning

169. Product Positioning
For (target customers)
Who (have the following problem)
The (product name) is a (describe the
product or solution)
That provides (key benefit)
Unlike (reference competition),
The product/solution (describe the key
point of competitive differentiation)

170. Sales Roadmap
L%<;%;K6 ;K%<K%;K6 ;%h%;;6 <%h%;;6
Release 1 Release 2 Release 3 Release 4
Theme: UI Theme: Reporting Theme: Dashboards Theme: Admin
For X, this UI release For <who>, this release For <who>, this release For <who>, this release
provides <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

171. Get out and sell

173. Pivot
or
Persevere?

174. Integrate into
execution

175. Transition
team
!"#$%%&&&'7+084'012%#!131*%208.C*.B.5-%:VZ>V<Z>L6

176. !"#$%%&&&'7+084'012%#!131*%B+43)./-C-*--%?;KZK?=?>>6

177. Primary books that informed this talk

178. People who informed this talk
David Max Ash Clayton
Snowden Boisot Maurya Christensen
Mark Eric
Newman Ries
Geoffrey Steve
Moore Blank

179. !"#$%%&&&'7+084'012%#!131*%7."1#<:;%==:>VZL<L6

180. @zachnies