Tucked away in Eric Ries's seminal book, "The Lean Startup," is probably the most important tool in the Lean Startup Methodology. It's on page 23 of the book and it does not even have a formal name in the book. I and other people are calling it, the "Vision-Strategy-Product (VSP) Pyramid." I'm now calling it Vision-Strategy-Pyramid (VSP) 1.0. In my view, the VSP Pyramid 1.0 provides the single and most important conceptual framework for the classic Lean Startup method. The VSP Pyramid 1.0 is probably the most overlooked tool or weapon in the arsenal of a Lean Startup. Yet, deeply understanding the VSP Pyramid 1.0 can reveal nearly all the key ideas, principles, and tools of the Lean Startup Methodology. A question, of which I constantly think is: Why is VSP Pyramid 1.0 so underused in the Lean Startup community? In other words, why is there such a great gap between the most holistic tool of the Lean Startup method and the many but disparate and ineffective tools that are used in the Lean Startup methodology? My hypothesis is that the VSP Pyramid - with its mention of "Vision" and "Strategy" - is reminiscent of Business Planning. And as Steve Blank is wont to say, "No Business Plan survives first contact with a customer." In fact, 'antagonists' of the traditional business plan such as Alexander Osterwalder have gone as far as saying, "Burn Your Business Plan;" they've even held bonfires! I frankly feel that all this rhetoric about business planning and business plans is at best, misguided. Rather than burn a business plan, we need a new type of business plan in this age of increasing volatility, uncertainty, complexity, and ambiguity. We need a lean business plan. My proposal is that we use a "Lean Plan" which is a Minimum Viable Plan of a tradition business or strategic plan. The above Lean Plan, which is based on Eric Ries's VSP Pyramid, features the VSP Pyramid 2.0. The diagram above illustrates uses an "iceberg graphic organizer" which is tied to the concept of a Business Model Engine. The Lean Plan or VSP Pyramid 2.0 can be used to rapidly generate, test, and validate ideas especially for the business model of a Lean Startup. Unlike in a traditional business plan, the Lean Plan is simple, easy, and fast to prepare as well as use. In addition, the strategy of a Lean Startup can be converted into operational hypotheses that can be rapidly tested with a view to validating or rejecting them. In addition, the Lean Plan facilitates visualization of concepts like Problem-Solution Fit, Product-Market Fit, Pirate Metrics, Validated Learning, Business Model, and Pivot. If there's one tool that ties paradigm, ideas, principles, and tools of the Lean Startup methodology, it is the Lean Plan or Vision-Strategy-Product (VSP) Pyramid 2.0. If you're thinking of starting a project with great risk and uncertainty, your best bet is starting with a template of the Lean Plan. Good luck ...

1.
PRODUCT
Lean
Plan
(LP)
3
P’s
of
the
Lean
Planning
Cycle:
Problem.
Plan.
Prototype.
Feedback;
Fitness
(Demand
vs.
Supply)?
VALUE
CREATION
VALUE
CAPTURE
VALUE
DELIVERY
Business
Model
Engine
Register
at
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to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing

2. LEAN
PLAN
(Topic/Element:
Storycard)
MARKET/CUSTOMER/
PROBLEM/
JOB-­‐TO-­‐GET-­‐DONE:
Project
ID:
………………………………………………
Date:
…………………………
Phase/Round/Experiment:
…………………………..………………………..………
Lessons
Learned;
Insights:
……………………………………………….…………….
Decision
(Persevere/Pivot;
Abandon):
……………………………………………
PRODUCT
What
is
the
(Minimum
Viable)
Product/Service
as
well
as
set
of
success
criteria?
VALUE
PROPOSITION
What
is
the
MagneFc
Value
ProposiFon?
STRATEGY
What
is
the
Winning
Strategy?
VISION
What
is
the
Vision,
Dream,
or
Leap
of
Faith?
Lean
Plan
(LP)
3
P’s
of
the
Lean
Planning
Cycle:
Problem.
Plan.
Prototype.
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing

3. LEAN
STARTUP
PLAN
(Topic/Element:
Storycard)
MARKET/CUSTOMER/
PROBLEM/
JOB-­‐TO-­‐GET-­‐DONE:
Project
ID:
………………………………………………
Date:
…………………………
Phase/Round/Experiment:
…………………………..………………………..………
Lessons
Learned;
Insights:
……………………………………………….…………….
Decision
(Persevere/Pivot;
Abandon):
……………………………………………
PRODUCT
What
is
the
(Minimum
Viable)
Product/Service
as
well
as
set
of
success
criteria?
VALUE
PROPOSITION
What
is
the
MagneFc
Value
ProposiFon?
STRATEGY
What
is
the
Winning
Strategy?
VISION
What
is
the
Vision,
Dream,
or
Leap
of
Faith?
q Landing
Page
q Pretotype
q Online
Video
q Prototype
q Pilot
q Full
scale
q Online
Ad
q Performance
q Cost
(Size)
q Quality
q Inaccessibility
q Time
q Brand
q InteracXvity
q Complexity
q Blue
Ocean
q DisrupXon
Spot
(Low
Cost)
q Sweet
Spot
q Luxury
Spot
(Diff.)
Lean
Plan
(LP)
3
P’s
of
the
Lean
Planning
Cycle:
Problem.
Plan.
Prototype.
q Red
Ocean
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing

4. Vision-­‐Strategy-­‐Product
(VSP)
Pyramid
1.0
Source:
Ries,
E.
(2011)
The
Lean
Startup.
Crown
Business:
New
York;
p.
23.
VALUE
CREATION
VALUE
CAPTURE
PRODUCT
STRATEGY
VISION
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing

5. Examples
of
Lean
Plans

6.
PRODUCT
Dropbox’s
Lean
Plan
(LP)
Feedback;
Fitness
(Demand
vs.
Supply)?
VALUE
CREATION
VALUE
CAPTURE
VALUE
DELIVERY
Business
Model
Engine
Example
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing

7. LEAN
PLAN
(Topic/Element:
Storycard)
MARKET/CUSTOMER/
PROBLEM/
JOB-­‐TO-­‐GET-­‐DONE:
Share
files
across
devices
Project
ID:
Dropbox
Date:
…………………………
Phase/Round/Experiment:
…………………………..………………………..………
Lessons
Learned;
Insights:
……………………………………………….…………….
Decision
(Persevere/Pivot;
Abandon):
……………………………………………
PRODUCT
What
is
the
(Minimum
Viable)
Product/Service
as
well
as
set
of
success
criteria?
Dropbox
(SaaS:
Cloud
Storage)
VALUE
PROPOSITION
What
is
the
MagneFc
Value
ProposiFon?
Extremely
easy-­‐to-­‐use
file
sharing
STRATEGY
What
is
the
Winning
Strategy?
Blue
Ocean
Strategy
(Performance
vs.
Complexity)
VISION
What
is
the
Vision,
Dream,
or
Leap
of
Faith?
Create
“Magic-­‐like
Experience”
Dropbox’s
Lean
Plan
(LP)
Example
q Landing
Page
q Pretotype
q Online
Video
q Prototype
q Pilot
q Full
scale
q Online
Ad
q Performance
q Cost
(Size)
q Quality
q Inaccessibility
q Time
q Brand
q InteracXvity
q Complexity
q Blue
Ocean
q DisrupXon
Spot
(Low
Cost)
q Sweet
Spot
q Luxury
Spot
(Diff.)
q Red
Ocean
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing

8.
PRODUCT
iPod’s
Lean
Plan
(LP)
Feedback;
Fitness
(Demand
vs.
Supply)?
VALUE
CREATION
VALUE
CAPTURE
VALUE
DELIVERY
Business
Model
Engine
Example
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing

9. LEAN
PLAN
(Topic/Element:
Storycard)
MARKET/CUSTOMER/
PROBLEM/
JOB-­‐TO-­‐GET-­‐DONE:
Listen
to
music
Project
ID:
Apple
Date:
…………………………
Phase/Round/Experiment:
…………………………..………………………..………
Lessons
Learned;
Insights:
……………………………………………….…………….
Decision
(Persevere/Pivot;
Abandon):
……………………………………………
PRODUCT
What
is
the
(Minimum
Viable)
Product/Service
as
well
as
set
of
success
criteria?
iPod
(Portable
Digital
Music
Player)
VALUE
PROPOSITION
What
is
the
MagneFc
Value
ProposiFon?
“A
Thousand
Songs
in
Your
Pocket”
STRATEGY
What
is
the
Winning
Strategy?
Luxury
Spot
Strategy
(Performance
vs.
Complexity)
VISION
What
is
the
Vision,
Dream,
or
Leap
of
Faith?
Create
“Insanely
Great
Experience”
iPod’s
Lean
Plan
(LP)
Example
q Landing
Page
q Pretotype
q Online
Video
q Prototype
q Pilot
q Full
scale
q Online
Ad
q Performance
q Cost
(Size)
q Quality
q Inaccessibility
q Time
q Brand
q InteracXvity
q Complexity
q Blue
Ocean
q DisrupXon
Spot
(Low
Cost)
q Sweet
Spot
q Luxury
Spot
(Diff.)
q Red
Ocean
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing

10. Appendix
Plaaorm
of
the
Lean
Planning
Cycle

11. Lean
Planning
Spectrum
Tools
For
Product
InvenYon,
InnovaYon,
and
Improvement
Invent
Improve
Innovate
Classic
Business
Plan/
Six
Sigma
Methodology/
Business
Model
Iceberg/…
Design
Thinking/Value
Engine
Map/
Lean
Startup
Methodology/
Innovator’s
Method/…
Brainstorming/O.T.H.E.R.
Loop/
TRIZ/Blue
Ocean
Strategy/
Innovator’s
DNA/…
Lean
Planning
Cycle
(Idea)
(Prototype)
(Product)
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing
Pre-­‐feasibility
Project
Interim
Feasibility
Project
Final
Feasibility
Project
Change
(Chaos)
Stability
(Order)

12. Problem
Plan
Prototype
Lean
Planning
Cycle:
3
P’s
Lean
Planning
Cycle
3
P’s
of
the
Lean
Planning
Cycle:
Problem.
Plan.
Prototype.
CUSTOMER
……………………………………..
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing

13. Problem
Plan
Prototype
Lean
Planning
Cycle:
2
Oceans
Lean
Planning
Cycle
Blue
Ocean
Strategy
Red
Ocean
DisrupYon
(ROD)
Strategy:
Red
Ocean
Value
Curve.
Blue
Ocean
Value
Curve.
CUSTOMER
……………………………………..
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing
Red
Ocean
Strategy
(Strategy
Canvas/Value
Curve)
Blue
Ocean
Strategy
(Strategy
Canvas/Value
Curve)

14. Lean
Planning
Cycle
Lean
Startup
Methodology
3
Legs
of
the
Lean
Startup
Methodology:
Customer
Development.
VSP
Pyramid.
Agile
Development.
Problem
Plan
Prototype
Lean
Planning
Cycle:
3
Legs
of
Lean
Startup
Customer
Development
(“Get
Out
Of
the
Building”)
CUSTOMER
……………………………………..
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing

15. Lean
Planning
Cycle
Lean
Startup
Methodology
3
Legs
of
the
Lean
Startup
Methodology:
Customer
Development.
VSP
Pyramid.
Agile
Development.
Problem
Plan
Prototype
Lean
Planning
Cycle:
3
Legs
of
Lean
Startup
Customer
Development
(“Get
Out
Of
the
Building”)
Product
Strategy
Vision
VSP
Pyramid
(“Business
Model
Engine”)
CUSTOMER
……………………………………..
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing

16. Lean
Planning
Cycle
Lean
Startup
Methodology
3
Legs
of
the
Lean
Startup
Methodology:
Customer
Development.
VSP
Pyramid.
Agile
Development.
Problem
Plan
Prototype
Lean
Planning
Cycle:
3
Legs
of
Lean
Startup
Build
Measure
Learn
Customer
Development
(“Get
Out
Of
the
Building”)
Agile
Development
Product
Strategy
Vision
VSP
Pyramid
(“Business
Model
Engine”)
CUSTOMER
……………………………………..
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing

17. Lean
Planning
Cycle
Six
Sigma
Methodology
DMAIC
Cycle:
Define.
Measure.
Analyze.
Improve.
Control
Problem
Plan
Prototype
Lean
Planning
Cycle:
DMAIC
q D:
Define
q M:
Measure
q A:
Analyze
q C:
Control
q I:
Improve
CUSTOMER
……………………………………..
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing

18. Lean
Planning
Cycle
IntegraXng
Six
Sigma
and
Lean
Startup
Methodologies
The
One
Tool
You
Need
for
Lean
Improvement
and
Lean
InnovaYon.
Problem
Plan
Prototype
Lean
Planning
Cycle:
Universal
Problem
Solving
Tool
Build
Measure
Learn
Customer
Development
(“Get
Out
Of
the
Building”)
Agile
Development
Product
Strategy
Vision
VSP
Pyramid
(“Business
Model
Engine”)
q D:
Define
q M:
Measure
q A:
Analyze
q C:
Control
q I:
Improve
CUSTOMER
……………………………………..
Register
at
www.visionaryd.com
to
learn
more
about
the
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing

19.
FOCUS
OF
VALIDATION
TOOLS
LEAN
STARTUP
SNOWMAN
(Topic)
VISION/STRATEGY
PRODUCT/SERVICE/BUSINESS
MODEL
1.
Idea
2.
Pretotype
3.
Prototype
4.
Pilot
5.
Full-­‐scale
q Brainstorming
q Blue
Ocean
q O.T.H.E.R.
Loop
q TRIZ/…
q Design
Thinking
q Value
Eng.
Map/…
q Lean
Startup
Methodology
q Six
Sigma
q Bus.
Plan
q Bus.
Model
Iceberg/…
CUSTOMER
(Community)
PROBLEM
JOB
TO
GET
DONE
BUILD
(Develop)
MEASURE
LEARN
BENEFIT
(e.g.,
Insights)
COST
DURATION
DECISION
(Abandon?)
Lean
Planning
Roadmap
HolisXcally
Organize,
Plan,
and
Manage
Every
Lean
InnovaXon
and
Improvement
Project
Register
at
www.visionaryd.com
to
learn
more
about
Lean
Planning
Cycle.
Lean
Startup
Coach.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h<p://businessmodels.ning.com
&
h<p://twi<er.com/RodKuhnKing
SOLUTION