lean startup in the enterprise, aubrey smith

Lean Startup in the Enterprise

Becoming A Responsive Organization

Aubrey Smith | [email protected]

2

$300,000

3D Printer

Zach Smith and Bre Pettis

4

Strategys MakerBotFocus

Strategy

Market, Problems, Solutions

People

Products

Process

Accountability

Culture

Tomorrow

Grow

Unknown

Entrepreneurs

Disruptive

Iterative and Responsive

Innovation Account and Funding

Discover

Today

Optimize

Known

MBAs

Core Focused

Linear Command & Control, Rules, Efficient

Traditional Accounting

Execution

5

The Big vs. The Small

SCALE DISTRIBUTION NETWORK PROCESS EXPERITSE

FOCUS SIMPLICITY TALENT SPEED TRUTH

Recreate

6

Growth is…hard.

7

Management is…hard.

8

Growth management is…the hardest.

Enterprise Growth DesertEnterprise Growth Desert

Companies are dying

faster than ever before.

Technology has changed the playing

field.

Competitors are from new places and unfamiliar industries.

Lean Startup in the Enterprise | Aubrey Smith 9

10

ExternalitiesEasy to Blame

Companies can’t afford to innovate

Innovation may require future borrowing needs

Regulation won’t let us

Good ideas are hard to come by

11

Biases Working Against UsPsychological

Confirmation Bias

Recency Bias & Human Cognitive Limits

Winners’ Curse

12

Biases Working Against UsSocial / Political Biases

Execution Obsessed

13

Biases Working Against UsSocial / Political Biases

Crave Predictability

14

Typical Organization Chart

15

Stop. Wasting. Time.

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Question becomes…Should vs Can.

17Lean Startup in the Enterprise | Aubrey Smith

From Linear to Responsive

Linear Command and Control Control Through Learning Loops

Specification

Output

Build

Learn Measure

Task


…But In Enterprise, Nothing’s Simple

Linear Command and Control Control Through Learning Loops

Specification

Output

Task

19

Step 1

Build

Learn Measure

20

Step 2

20

2

PortfolioVision

3

PortfolioManagement

1

Executive Vision

Executive Leadershi

p

Opportunity/ Portfolio Team

PMO

Actionable Thin Slice

5

Market Opportunity

Technology Commercial

6

MeasureMetrics

Product Architecture

Loop 1 Vision Loop

Loop 2 Portfolio

Loop

Loop 3Market

OpportunityLoop

Loop 4 Performance

Loop

21

This is very hard.

22

Begin with “Thin Slices”

23

Start small to get big.

24

…

24

2

PortfolioVision

3

PortfolioManagement

1

Executive Vision

Executive Leadership

Opportunity/ Portfolio Team

PMO

Actionable Thin Slice

6

MeasureMetrics

Product Architecture

5

Market Opportunity

Technology Commercial

Loop 3Market

OpportunityLoop

25

Lean Startup

Transformation

Incubate& Disrupt

“Learn by doing”

Accelerate& Grow

“Build the mechanism

to scale”

Transform

“Implement Scaling”


Incubate TransformAccelerate

People

Process

Product

Accountability

Culture

Small teams

Learning Loop:

Limited

H3 - Key technology

“breakthroughs”

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

Portfolio teams;

Cross-portfolio teams

Learning Loop:

Portfolio Management

H2 - Cross-portfolio bets;

Extensions from the core

Executive teams; Portfolio

teams; P&L teams

Learning Loop:

Entire Organization

H1 - Core driven

product lines

27

Incubate

28

Teams: Learn in 90 Days

The Startup within Enterprise

- Builds organization learning- Evidence-building for scaling

- Small, co-founder led - Incubation- Typically, technology-led- Housed in R&D or Labs

Potential Team Cadence

• Week 1 – Kick off• Problem, Solution, Business Model

• Week 2- Launch MVP 1• Week 3 – Collect Metrics• Week 4 – Pivot or Persevere• Week 5-9 – Launch MVP 2• Week 10 – Collect Metrics• Week 12 – Pivot or Persevere

29

The Tesla Problem

Lab:Fertile ground for test & learn

Will they ever leave?

30

Accelerate


Growth Curves We LikeValue

Time


WH

ER

E T

O P

LA

Y

HOW TO WIN

TRANSFORMATIONAL

Developing breakthroughs and inventing things for markets that don’t yet exist

ADJACENT

Expanding from existing business into “new to the company” business

CORE

Optimizing existing products for existing customers

Serv

e e

xis

ting

mark

ets

&

custo

mers

En

ter

adja

cent

ma

rkets

, se

rve

ad

jace

nt

cu

sto

me

rs

Cre

ate

new

mark

ets

, ta

rget

new

custo

mer

needs

Use existing products & assets Add incremental products & assets Develop new products & assets


TRANSFORMATIONAL

ADJACENT

CORE

A Leading Consumer

Goods Company

A Diversified

Industrials Company

A Midstage

Technology Firm

80%

18%

2%

70%

20%

10%

45%

40%

15%

What’s the right portfolio mix?

Add: Intuit’s Mix

Lean Startup in the Enterprise | Aubrey Smith 34

35

Industry

Competition

Maturity

36

The Executive Vision

The vision should be….

Be aspirational

Be defined from the customer’s perspective

Allow room for optionality or pivots

Define what’s in and what’s out of scope

Avoid ambiguous financial targets

37


H3

H2

H1

What does your portfolio look like today?

What should your portfolio look like?

Describe factors impacting your portfolio

Portfolio - Exercise

1.Industry

2.Competition

3.Maturity

Where are you in the progression?

(Incubate, Accelerate, Transform)

How does the company progress from one

stage to another?

39

Tools & Support

Incubate& Disrupt

“Learn by doing”

Accelerate& Grow

“Build the mechanism

to scale”

Transform

“Implement Scaling”

Aubrey Smith | [email protected]

Appendix

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