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Lean Startup for Smart Entrepreneurs

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Presented at Dublin's excellent LeanCamp event

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Lean Startup for Smart Entrepreneurs

  1. 1. @agilesenseiwww.agilesensei.com written, illustrated and performed by Claudio Perrone
  2. 2. Most startups fail will Yours?
  3. 3. If we keep acting like most entrepreneurs…
  4. 4. … less than 3 people in this room willCreate successful companies*“(*) The only statistics you can trust are those you falsified yourself --(often falsely attributed to) Winston Churchill
  5. 5. July 2009
  6. 6. “July 2009 was the wettest Julyon record in Ireland”
  7. 7. “that month, a new life rocked my world…”
  8. 8. “that month, I left an exceptional companyI helped create from scratch”
  9. 9. “From the very beginning, I had embracedAgile development to grow aworld-class software organization”
  10. 10. We continuously improved ourdevelopment processes…
  11. 11. We crafted opinionated software…“The best softwarehas a vision.The best softwaretakes sides.…Decide whatyour vision is and run with it.”-- 37 signals
  12. 12. We won awardsand respect…
  13. 13. we could almosttouch the sky…
  14. 14. Almost
  15. 15. “July 2009 was the wettest Julyon record in Ireland”
  16. 16. I’ll remember it as the monthmatteo was born
  17. 17. But it is also the monthI had to let go of a dream
  18. 18. … so I became a Lean & Agile consultant!
  19. 19. On my first mission, a cio asked me aquestion that haunts me to this day…
  20. 20. “If you were so smart, why did you fail?”
  21. 21. I became increasingly intrigued by the riseof Lean and its influence in the agile circles
  22. 22. Lean is heavily inspired by Toyota’sbreakthroughs in “operational excellence”
  23. 23. Using Lean and agile, I brought performanceimprovements to many clients around Europe
  24. 24. But that oldquestion still remainedunanswered…
  25. 25. … Until one day
  26. 26. I entered a new world
  27. 27. ... A world that recognized the extraordinarychallenges I once faced “ A startup is a human institution designed to create new products and services under conditions of extreme uncertainty. --- Eric Ries
  28. 28. ... A world that showed how Searching fora business model is different fromexecuting a validated one “ A startup is a temporary organization used to search for a repeatable and scalable business model. --- Steve Blank
  29. 29. It gave me a path to create a sustainablebusiness around products that customers want Customer development data, PROBLEM/ PRODUCT/ SCALE feedback, MARKET insights SOLUTION FIT FIT Customer Company Customer Customer stop creation stop building discovery stop validation Agile development Pivot hypothesis, experiments, insights Problem: Unknown solution: Unknown
  30. 30. ... A path characterized by frequent scientificexperiments… Learn Build (establish an hypothesis) (Build an experiment to test that hypothesis) Measure (Determine a quantitative or qualitative method to evaluate that hypothesis.)
  31. 31. … To accelerate the rate of learning… Learn idea Build (whether to pivot or persevere) (Turn ideas into product) (often a series of MVPs) data Product Measure (How customers respond)
  32. 32. … And measure real progress towards success Acquisition How do users find you? Activation Do users have a great first experience? retention Do users come back? revenue How do you make money? referral Do user tell others? ( see Dave McClure “Pirate” metrics) Cohort analysis
  33. 33. Today
  34. 34. I document my business model(s) explicitly Solution Top 3 Unique Unfair Customer Problems Value Advantage Segments Proposition Key metrics Channels Existing Early alternatives adopters Cost structure Revenue streams www.leancanvas.com
  35. 35. my vision is built on opinions untestedassumptions
  36. 36. … which I systematically validate withexperiments…
  37. 37. … that force me to “get out of the building”
  39. 39. I validate my solutions, OFTEN with low fidelity MVPs
  40. 40. … and Activate enthusiastic earlyvangelists with aglimpse of a future that will come
  41. 41. What willyour future look like?
  42. 42. “ Smart entrepreneurs don’t dream of success. They create the conditions to inevitably converge to it. --- Me (1967 - )
  43. 43. Thank  you!   Claudio  Perrone  claudio@agilesensei.com  www.agilesensei.com  www.twi:er.com/agilesensei