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David J. Bland discusses what lean startup in the enterprise is, how it works, and how agile principles and practices can help you quickly test and validate your hypotheses and gather customer feedback.
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Lean Startupin the
Enterprise
© 2012 BigVisible Solutions
© 2012 BigVisible Solutions 2
David J BlandAgile / Lean / XP / KanbanStartups & EnterpriseseCommerce to Counter Terrorism
© 2012 BigVisible Solutions 3
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
© 2012 BigVisible Solutions 7
Problem Solution Process
Known Known Waterfall orAgile
Known Unknown Agile
Unknown Unknown Lean Startup
© 2012 BigVisible Solutions 8
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
© 2012 BigVisible Solutions 12
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
© 2012 BigVisible Solutions 14
Entrepreneursare everywhere.Intrapreneurs!are everywhere.
© 2012 BigVisible Solutions 15
1982!!!1976!!!
© 2012 BigVisible Solutions 16
… there is hope.
© 2012 BigVisible Solutions 17
Experiment withproduct & process
© 2012 BigVisible Solutions 18
Sustaining Innovation
Disruptive Innovation
(lean startup)(kanban) (scrum)
Source: Adapted from Clayton Christensen
© 2012 BigVisible Solutions 19
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.
© 2012 BigVisible Solutions 22
If you experiment in code, come back to:
a. clean it upb. iteratec. productized. refactor
© 2012 BigVisible Solutions 23
Right Fidelityhere is my paper prototype!
© 2012 BigVisible Solutions 24
Wrong Fidelityhere is my paper prototype…
© 2012 BigVisible Solutions 25
Experiment to align business & product.
© 2012 BigVisible Solutions 26Source: Eric Ries The Lean Startup
© 2012 BigVisible Solutions 27
You cannot learn if your feedback loops are broken.
© 2012 BigVisible Solutions 28
© 2012 BigVisible Solutions 29
© 2012 BigVisible Solutions 30
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
© 2012 BigVisible Solutions 32
AcquisitionActivationRetentionReferralRevenue
Source: Dave McClure Pirate Metrics
+15% +11% +8%
+5% +7% +10%
+1% +3% +5%
+0% +1% +3%
+0% +1% +5%
© 2012 BigVisible Solutions 33
Great Product+ Wrong Business Model
Failed Organization
© 2012 BigVisible Solutions 34
© 2012 BigVisible Solutions 35
Business Models > Business Plans
Source: Adapted from Alexander Osterwalder
Business Models Canvas
© 2012 BigVisible Solutions 36
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?
© 2012 BigVisible Solutions 56
Questions?
© 2012 BigVisible Solutions 57
Upcoming
Webinar!
© 2012 BigVisible Solutions 58
David J BlandAgile Consultant
[ ]: +1 703 945 0700[ ]: [email protected][ ]: www.bigvisible.com[ ]: @davidjbland
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