lean startup in the enterprise

Lean Startupin the

Enterprise

© 2012 BigVisible Solutions

© 2012 BigVisible Solutions 2

David J BlandAgile / Lean / XP / KanbanStartups & EnterpriseseCommerce to Counter Terrorism

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Eric RiesAlex Osterwalder

Steve Blank Dave McClure

© 2012 BigVisible Solutions 4

S&P 500 companies now the shortest life span we’ve ever seen in recorded history.

© 2012 BigVisible Solutions 5

The Lean Startup provides a scientific approach to creating and managing startups and get a desired product to customers’ hands faster.

-Eric Ries

© 2012 BigVisible Solutions 6

A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.

-Eric Ries

Not Just 4 Startups

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Problem Solution Process

Known Known Waterfall orAgile

Known Unknown Agile

Unknown Unknown Lean Startup

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We are experiencing anevolutionary leadershipmismatch.

© 2012 BigVisible Solutions 9

Problem Solution Process

Unknown Unknown Lean Startup

Leaders typically are not promoted if they’ve repeatedly stated that they do not know the problem or solution

© 2012 BigVisible Solutions 10

most leadersneed moreleaders here

Source: Adapted from Cynefin & Leadership Agility

maybe even here

simple

complicatedcomplex

chaos(best practice)

(good practice)(guidelines)

(principles)

© 2012 BigVisible Solutions 11Source: Adapted from Cynefin & Leadership Agility

simple

complicatedcomplex

chaos(best practice)

(good practice)(guidelines)

(principles)

LeanStartup

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We are experiencing anorganizational structuremismatch.

© 2012 BigVisible Solutions 13

We’ve structured our organizations based on the Industrial Era:

- 1 Business Model- Scaling- Predictability- Execution- Organized by Function

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Entrepreneursare everywhere.Intrapreneurs!are everywhere.

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1982!!!1976!!!

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… there is hope.

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Experiment withproduct & process

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Sustaining Innovation

Disruptive Innovation

(lean startup)(kanban) (scrum)

Source: Adapted from Clayton Christensen

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Don’t release it to everyone all at once.

© 2012 BigVisible Solutions 20

Target specific cohorts with a/b testing.

© 2012 BigVisible Solutions 21

Decouple from your existing brand.

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If you experiment in code, come back to:

a. clean it upb. iteratec. productized. refactor

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Right Fidelityhere is my paper prototype!

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Wrong Fidelityhere is my paper prototype…

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Experiment to align business & product.

© 2012 BigVisible Solutions 26Source: Eric Ries The Lean Startup

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You cannot learn if your feedback loops are broken.

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Just because you can measure it, does not mean you should measure it.

© 2012 BigVisible Solutions 31

Which of these metrics provide the most insight into a product?

Source: Adapted from Dave McClure

a. 1,000,000 unregistered unique visitsb. 500,000 visitors who view 2+ pagesc. 250,000 visitors who engaged for 10+ secondsd. 20000 users with registered email addresse. 1000 monthly subscribers

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AcquisitionActivationRetentionReferralRevenue

Source: Dave McClure Pirate Metrics

+15% +11% +8%

+5% +7% +10%

+1% +3% +5%

+0% +1% +3%

+0% +1% +5%

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Great Product+ Wrong Business Model

Failed Organization

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Business Models > Business Plans

Source: Adapted from Alexander Osterwalder

Business Models Canvas

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Experiment to alignproduct & customer.

© 2012 BigVisible Solutions 37Source: Steve Blank

© 2012 BigVisible Solutions 38

That’s all good in theory but…“Your version of Enterprise and my version of Enterprise are very different.”

© 2012 BigVisible Solutions 39

That’s all good in theory but…“I need to apply this to an internal project with no external customers!”

© 2012 BigVisible Solutions 40

That’s all good in theory but…“<insert your reason here>”

© 2012 BigVisible Solutions 41

Problem Solution Process

Known Known Waterfall orAgile

Known Unknown Agile

Unknown Unknown Lean Startup

© 2012 BigVisible Solutions 42

Do you have unknown / unknown’s in your enterprise?

© 2012 BigVisible Solutions 43

Start small.

© 2012 BigVisible Solutions 44

If you have internal users, then perform customer discovery & interview them.

© 2012 BigVisible Solutions 45

They are users who impact business metrics.

Finance Manager

Source: Dave Gray “Empathy Map”

© 2012 BigVisible Solutions 46

Start small.

© 2012 BigVisible Solutions 47

If you have User Stories, add a Hypothesis that statesthe expected outcome on aspecific metric.

© 2012 BigVisible Solutions 48

Feed the learning back into the product backlog…

© 2012 BigVisible Solutions 49

Start small.

© 2012 BigVisible Solutions 50

If you have a Kanban Board, add a Validate Column to

the very right of it.

© 2012 BigVisible Solutions 51

Teams should have a healthy skepticism of the why of the work you are doing.

© 2012 BigVisible Solutions 52

If you cannot articulate the expected outcome, then why should the team build it?

© 2012 BigVisible Solutions 53

It’s working if you hear:

“How are we going to measure that?”

© 2012 BigVisible Solutions 54

It’s working if you hear:

“We cannot wait that long to learn!”

© 2012 BigVisible Solutions 55

Where are the unknown / unknown’s in your enterprise?

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Questions?

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Upcoming

Webinar!

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David J BlandAgile Consultant

[ ]: +1 703 945 0700[ ]: dbland@bigvisible.com[ ]: www.bigvisible.com[ ]: @davidjbland

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