Starting, building and operating a nonprofit organization is done under conditions of extreme uncertainty, but we plan with confidence. Enormous energy is put into Five Year Strategic Plans, Annual Plans and Quarterly plans, but then real life intrudes and the reality is that there's only the vaguest resemblance between our plans and our actual work. So much wasted time! There's got to be a better way. Kayvon Khalilzadeh of Lean Startup Vancouver will introduce us to the concept of the lean startup Lean Startup is a methodology that favours experimentation over elaborate planning, customer feedback over intuition, and iterative design over traditional “big design up front” development. Although the methodology is just a few years old, its concepts—such as “minimum viable product” and “pivoting” have quickly taken root in the start-up world. Now it's time for the nonprofit sector to adopt this innovative approach. Slides from @kayvonk

1. LEAN PRINCIPLES FOR
NONPROFITS
BECAUSE YOUR ANNUAL PLAN IS A FRAUD

2. INTRO
•
Kayvon K
•
•
Facebook.com/kayvank7
•
Email: k@kahzoom.com
•
•
Twitter: @kayvonk
To book an appointment:
Go to :kahzoom.com/now
and click on the orange BOOKNOW button
Please also use #leanxvan

3. WHAT IS LEAN STARTUP?

4. CORE IDEAS
MINIMIZE WASTE
Lean startup philosophy seeks to eliminate
wasteful practices and increase value
producing practices during the product
development phase so that startups can have a
better chance of success without requiring
large amounts of outside funding, elaborate
business plans, or the perfect product.

5. CORE IDEAS
BUILD SOMETHING THEY ACTUALLY WANT
Customer feedback during product
development is integral to the lean startup
process, and ensures that the producer does
not invest time designing features or services
that consumers do not want.

6. CORE IDEAS
Lean startup philosophy counter-balance the
infinite capacity of human to self-delusion

7. CORE IDEAS
WHAT IS A STARTUP?
A human institution designed to deliver a new
product or service under conditions of extreme
uncertainty.

8. CORE IDEAS
If innovation is all about operating within conditions of
extreme uncertainty, and if we are first and foremost in
search of answers and only THEN building our
products, then we have to get a lot better at getting
answers quickly (and yes, social change work nearly
always operates under conditions of “extreme
uncertainty.”)
Innovation succeeds at specific point of equilibrium
changes – when things are about to change, not after
they've changed

9. CORE IDEAS
To do this, we have to get
better at what is called
“validated learning” –
getting clear data around
our core assumptions – by
iterating through a BUILD
– MEASURE – LEARN
cycle

10. WHY LEAN IS IMPORTANT?
WHAT IS THE POINT?
Unfair Advantage
An organization practicing lean principles has
an unfair advantage against a completely
equivalent organization that doesn’t.

11. ACHIEVING FAILURE
Majority of organization are very good at
Achieving Failure
Definition: successfully executing a bad plan
If we're building something nobody wants, what
does it matter if we accomplish it

12. ACHIEVING FAILURE
The method of accountability in traditional
management is about projecting into the future and
measuring success by how they do compared to the
forecast.
"Lean" comes from manufacturing. Manufacturing
doesn't do not waterfall anymore.
The customer is the most important part of the
production line. But we have to know who is the
customer?

13. WHAT IS THE MAIN GOAL
OF A START-UP?
•
It can also be applied to a project, new
feature, a product development process.

14. WHAT IS THE MAIN GOAL
OF A START-UP?
TO FIND OUT WHAT WORKS

15. WHAT IS THE MAIN GOAL
OF A START-UP?

16. THE LEAN STARUTUP
CYCLE

17. THE LEAN STARUTUP
CYCLE
The main determinant of whether / how quickly
we innovate is how quickly we can go through
the BUILD – MEASURE – LEARN cycle

18. THE LEAN STARUTUP
CYCLE
The faster we go, the more quickly we learn,
the more often we pivot, the less time we waste

19. THE LEAN STARUTUP
CYCLE
We optimize for learning and build
organizations that are made to adapt quickly

20. THE LEAN STARUTUP
CYCLE
Lean startup its about teaching startups to
speed up their learning.
(This makes sense, but it’s not how we (any of
us) act most of the time)

21. THE LEAN STARUTUP
CYCLE
Startup = Experiment

22. BUILDING A STARTUP
What does it take to go from an idea to
implementation?

23. BUILDING A STARTUP
Waterfall (Product) Development

24. BUILDING A STARTUP
It used to be:
A. We will write a (business) plan?
B. Then we would know everything there is to know
1. Operating plan
2. Financial Model
C.And we simply execute that plan

25. BUILDING A STARTUP
Reality:
No plan survives the first contact with clients

26. BUILDING A STARTUP
Reason: Startups are not a smaller version of
lagers companies
• Startups
search
• Companies
execute
Search for what? Execute what?

27. BUILDING A STARTUP
We still need a plan
Planning that comes before The (business)
Plan

28. BUILDING A STARTUP
So a "Search Plan" first
Then an "Operating Business Plan" to execute

29. BUILDING A STARTUP
Tool: The Business Model
Canvas
•To
organize your thinking
•To
get out of the building
•
To test the hypothesis
•
And update our canvas

30. BUILDING A STARTUP

31. BUILDING A STARTUP

32. BUILDING A STARTUP

33. BUILDING A STARTUP
What problem are we
solving?
What are we building?
And for whom?
Who is the customer?

34. BUILDING A STARTUP

35. BUILDING A STARTUP
Who are they?
Why would they buy?
Persona?
Multiple Customer
Segments

36. BUILDING A STARTUP

37. BUILDING A STARTUP
How do we
distribute our
product?
How our products
from out company
gets to our
customers?

38. BUILDING A STARTUP

39. BUILDING A STARTUP
How do I get
customers?
How do I keep them?
How do I grow them?

40. BUILDING A STARTUP

41. BUILDING A STARTUP
What value is customer paying for?
What is the strategy to capture that value

42. BUILDING A STARTUP

43. BUILDING A STARTUP
What are the most important assets we need to
make business model work?
Finance, Physical, Intellectual, Human

44. BUILDING A STARTUP

45. BUILDING A STARTUP

46. BUILDING A STARTUP

47. BUILDING A STARTUP

48. BUILDING A STARTUP

49. BUILDING A STARTUP
What are the COSTS to
operate the business model?

50. BUILDING A STARTUP
Tool: The Business Model
Canvas
•To
organize your thinking
•To
get out of the building
•
To test the hypothesis
•
And update our canvas

51. BUILDING A STARTUP
Tool: Lean Canvas
•To
organize your thinking
•To
get out of the building
•
To test the hypothesis
•
And update our canvas

52. THE LEAN STARUTUP
CYCLE

53. BUILDING A STARTUP

54. BUILDING A STARTUP
Do people have this problem?

55. BUILDING A STARTUP
Is there a match between problem and
solution?

56. BUILDING A STARTUP
Repeat * Until proven

57. BUILDING A STARTUP

58. BUILDING A STARTUP
Creating end-user and demand

59. BUILDING A STARTUP
The scalable organization to do it all

60. BUILDING A STARTUP
Tool: Validation Board
•To
get out of
the building
•To
iterate

61. BUILDING A STARTUP

62. BUILDING A STARTUP
Get out of the building:
1. Design experiments
2. Run tests
3. Get data
4. Repeat

63. BUILDING A STARTUP
It is about a search for a
business model that works

64. RESOURCES

65. •
Kayvon K
•
•
Facebook.com/kayvank7
•
Email: k@kahzoom.com
•
•
Twitter: @kayvonk
To book an appointment:
Go to :kahzoom.com/now
and click on the orange BOOKNOW button
Please also use #leanxvan