AOL UnU
October 23, 2012
INTRO TO LEAN

Danny Boice
Co-Founder & CTO, Speek /
Resident, AOL Fishbowl Labs
Twitter: @DannyBoice
Danny@speek.com
Adam Berk
Director, Lean Startup Machine
Twitter: @AdamBerk
Adam@LeanStartupMachine.com

Product/Market Fit
? Customer Development
Bootstrapping ? Iterate
? UX Design
Eliminate Waste
? Pivot
?
Problem/Solution Fit
Agile Development
?

WHAT IS LEAN?

A set of processes used Agile
to developby
entrepreneurscombining Customer
and markets, and existingproducts
Software Development, software
Development
platforms (usually FOSS).
en.wikipedia.org/wiki/Lean_Startup

Lean = What to build
Agile = How to build

What is a “pivot”?

A structured test athe product. new
course correction
designed toabout fundamental
hypothesis
Build -> Measure -> Learn -> Pivot or
Repeat

What is a “Minimum
Viable Product
(MVP)”?

An MVP is the smallest thing you can
build in order to start measuring and
learning.
“If you aren'tlate”
shipped too ashamed of your product, you
- Reid Hoffman

WHY SHOULD
I CARE?

Something is
fundamentally wrong

Why do products
fail?

Big Idea #1
The vast majority of products fail
NOT because it couldn’t be built...
but because nobody wanted the product.

Steve Blank

“No business plan survives
first contact with customers.”
- Steve Blank

Why do products succeed?

Big Idea #2
“The vast majority of
[successful] startups
abandoned their initial plans
and learned what would and
would not work in the market.”
-Clayton Christensen, The Innovator’s Dilemma

PIVOT!!!

FAILURE
The Secret to Success

OMG!!!

Curious...

LEAN = PROCESS

NOT
Black & White

LEAN’s Mission:
Entrepreneurship & Product
is a Management Science
that can be Learned

YOUR Mission:
Don’t Waste Time Building Something
Before Learning
Whether People Actually Want it

Get Out of the Building
TALK TO PEOPLE

Customer
Development

Who Are
They?

Customer Hypothesis
&
Problem Hypothesis

GOOBing is HARD

What’s the point?
• Uncovers how users think and behave
• Validates assumptions/removes bias
• Shows difference between intent and reality
• Provides direction and data instead of
opinion or speculation
• Provides the ability to inform design

It is NOT
• Surveys
• Focus Groups
• Your Head
• Friends & Family

Go in with 2 to 3 objectives
and have a real conversation. Brant Cooper
Know your goals and questions. Giff Constable
Use a script. Ash Maurya
Use a script. Ash Maurya

3-POINT INTERVIEW
1. Has [insert specific problem] been a
problem for you? (context)
2. Tell me about the last time you dealt
with this problem? (story)
3. What’s your ideal solution for this?
(solution)

No Selling Allowed

Talking to Customers
What is the Problem?
What is the Problem?
• Who, What, When, Where, Why, How
• Avoid Would & Future Tense
• The more you ask someone to imagine
something, the less you can trust their data
• People SAY and DO completely different things.

Find Early Adopters
“FOAMING AT THE
MOUTH”
1. Have the problem
2. Know they have the problem
3. Searched for a solution
4. Hacked their own solution
5. Have budget for a solution

LEAN is Complex
Be Skeptical of Simple Solutions
Be Skeptical of Simple Solutions

3-POINT INTERVIEW
1. Has [insert specific problem] been a
problem for you? (context)
2. Tell me about the last time you dealt
with this problem? (story)
3. What’s your ideal solution for this?
(solution)

PROCESS

Use the
Validation
Board

Use the Manual

Use One Another

OBJECTIVE:
Learn

MVP Method
3 Stages...
1.Problem Exploration: Exists? Who?
2.Product Pitch: Collect currency
3.Concierge: Deliver customer experience
Stages increase in opportunity cost

Minimum Success Criterion
Make a Prediction:
If we [do this], [numeric] of target customers
will [behavior]

Validation Board
• It’s a valuable communication tool
• 5-7 words in black sharpie
• WRITE IN ALL CAPS
• Mentors will enforce strongly
Following guidelines = better experience

Validation Board
Demo
http://bit.ly/lsm-canvasvideo

Read the fine print
on the Canvas

Get Out of the Building
TALK TO PEOPLE

Intensive 3-Day Workshops
200 Workshops Globally in 2013