1. But when bringing customers to usability tests - saw that all assumptions failed
2. Example
2.1. Personal experience with IMVU
2.1.1. They had a great strategy
2.1.2. All of the code was thrown out
2.1.3. He could have spent his time on the beach
2.1.4. His excuse for feeling better:
2.1.4.1. He learnt from it
2.1.5. What if instead of writing so much code, they would have written a mock download page describing the product
2.1.5.1. It would have resulted in the same result
2.1.6. Blank developed a system for finding your customer
2.1.7. This was very upsetting for him
2.1.7.1. something taking 3 hours is just as good as writing 25K lines of code
2.1.8. If he learnt the important thing on customer after 6 months, why did it take 6 months?
3. In real-life, all of the important work is in the photo-montage act, though its the most boring, from story-telling perspective
4. bio stages
4.1. wrode code
4.2. managed ppl writing code
4.3. managed ppl managing ppl writing code
4.4. now
4.4.1. coaching ppl managing ppl managing ppl writing code
5. Help stop wasting the time of people doing startups
6. Lean Startup tries to make it a science, to stop wasting ppl's time
7. Waterfall copied from factory assembly line
7.1. moving goods from 1 dept to another
8. A thoery of enterpreneurship to guide our behavior
9. so, which of these are success stories, in the sense of meeting the vision & plan of founders & employees
10. a human institution trying to create something new, under conditions of high uncertainty
11. About
12. Goal
13. 5 Principles
13.1. Everyone are enterpreneurs
13.2. Enterpreneurship is management
13.3. Validated learning
13.4. "Build - measure - learn" loop
13.5. Innovation accounting
14. Consider the way startup stories are told
14.1. e.g.
14.1.1. Ghost busters
14.1.2. The social network
14.2. Stories of startups have 3 parts
14.2.1. The protogonist having a great idea
14.2.2. The photo-montage - bringing everything to work
14.2.3. Success & its implications
14.3. What do we do in that part that makes a difference
14.3.1. Figure out which customers to listen to, & which not
14.3.2. Prioritizing features
14.3.3. How do we make people accountable
14.4. How can we make the photo-montage part more effective
15. What is a startup
15.1. enterpreneurship is a career
15.1.1. doing it means you're no longer an engineer/designer/&c
15.2. Startup = Experiment
15.2.1. just like in science
15.2.1.1. hypothesis
15.2.1.2. thoery which suggest which experiments will test it
15.2.1.3. prediction
15.2.1.4. conducting an experiment
16. Wasting time
16.1. The solution is not technical
16.2. The problem is not building things efficiently
16.2.1. But rather building things that no one wants
16.3. Most startups fail
16.3.1. <map of web2.0 startups logos in 2006, predicted to change the world>
16.3.2. <same map in which the companies that were closed/acquired by 2009 are marked>
17. The dominant question
17.1. Not
17.1.1. Can it be built?
17.2. But
17.2.1. Should it be built?
17.2.2. Can it result in a sustainable business
18. Enterpreneurship is management
18.1. Our goal is to create an institution, not just a product
18.2. When we'll look at the way we manage work today in a few decades, we'd laugh on the primitive ways & absurd stupidity
19. Pivot
19.1. The 1st thing in the toolbox
19.2. What do successful startups have in common?
19.3. The successful startups don't have better ideas than the failed ones
19.4. Successful startups differ in how they handle difficulties:
19.4.1. they didn'g give up & went home
19.4.2. nor did they continued till they hit the ground
19.4.3. they pivoted
19.4.3.1. they held one firm leg in what they've learned so far
19.4.3.2. & moved the other leg a bit - changing just 1 aspect of their business at a time
20. The premise of Lean Startups
20.1. Reduce the time between pivots
20.2. Will increase our odds of success
20.3. before we run out of money
20.4. Speed wins
20.5. The runway:
20.5.1. how many pivot opportunity do I have left
20.6. figure out to pivot sooner
21. Methodology
21.1. Good for circumstances when problem & solution are known
21.2. this is long time after it was abandoned in assembly line
21.3. factories switched to Lean manufacturing
22. Achieving failure
22.1. If we're building something no one wants
22.2. What does it matter if we'er
22.2.1. on time
22.2.2. on budget
22.2.3. with high quality
22.2.4. with beautiful design
22.3. We're according to milestones
22.3.1. no body using our products as expected
22.4. That's what startup failure looks like
23. Lean manufacturing
23.1. Deming
23.1.1. "The customer is the most important thing in the production line"
23.1.2. If the customer doesn't care about some stuff, don't do it
23.2. When applied to software, the solution was Agile methodology
23.2.1. Unit of progress:
23.2.1.1. A line of working code
23.3. The problem with Agile
23.3.1. In startups - there's no customer to guide the programmers
23.3.1.1. We don't know who the customer is
24. R
24.1. Blank developed a system for finding your customer
24.2. Unit of progress:
24.2.1. Validated learning
24.3. If you don't know who the customer is, you don't know what quality is
24.3.1. the goal is to learn how to build a sustainable business
24.4. In lean manufacturing, there's a clear separation between value & waste
24.4.1. What's good to the customer is value
24.5. In Lean startup, value is only in what helps us learn
24.5.1. validated learning
24.5.1.1. backup learning quantitavily
24.5.2. everything else is a complete waste of time
24.5.2.1. eliminate it
24.6. Minimum Viable Product
24.6.1. Containing only what's necessary to learn whether our plan is correct or not
24.7. Feedback loop
24.7.1. Ideas ->
24.7.2. Buid ->
24.7.3. Code ->
24.7.4. Measure ->
24.7.5. Data ->
24.7.6. Learn ->
24.8. This is the pivot
24.9. The goal is to minimize time through the loop
24.9.1. Every advice that gets us faster in this feedback loop is good
24.10. Lean startup is about accelerating the feedback loop
24.10.1. Code faster
24.10.2. Measure faster
24.10.3. Learn faster
25. Innovation Accounting
25.1. How can you make people accountable for their work when they need to develop something new?
25.1.1. How can you assess their progress / achievements
25.2. Focus on 3 learning milestones
25.2.1. Tune th engine
25.2.1.1. Experiment on how to improve the metrics
25.2.1.2. Which assumes there's someone that can give us authorative defintive answer on design questions
25.2.1.3. Do split testing to verify that changes indeed change the metrics
25.2.2. Establish the baseline
25.2.2.1. build MVP
25.2.2.2. Measure how customers bahve right now
25.2.2.3. A model allowing to predict:
25.2.2.3.1. if customers behave currently in this way, we'll have zillions of them in the future
25.2.2.4. find out where you are now
25.2.2.4.1. e.g.
25.2.3. PIvot or persevere
25.2.3.1. When experiments diminish metrics, it's time to pivot
25.2.3.1.1. or when the growth derivative flattens, before hitting the target metrics
25.2.3.2. Schedule the meeting in advance for making the decision
25.2.3.3. It's not simple to determine whether a Product-Market fit was reached, but Lean Startup suggests a methodic "scientific" way to do that
25.3. Do specific per-customer predictions
25.3.1. Do specific per-customer predictions
26. Further questions answered in the coming book
26.1. How do we know when to pivot?
26.2. what's the relation between the Vision, Strategy, Product?
26.3. What should we measure?
26.4. How do products grow?
26.5. Are we creating value?
26.6. What's in the MVP?
26.7. Can we go faster?
27. Q&A
27.1. Which products should Google pivot on?
27.1.1. Google have a management problem
27.1.1.1. when launching a product, they have their brand name, & if it's needs pivot it's embarassing for Google
27.1.2. They should have launched in small scale without the Google brand
27.1.3. Companies should provide a platform for experimentation to developers
27.1.4. Have clear analytics of whether they succeed or not
27.1.5. Even though everything that Google launched immediately gets maximal exposure & download?
27.1.5.1. Yes
27.1.5.1.1. Marketing is something you can always do, but you shouldn't market trongly bad products
27.1.5.1.2. Really great products have an inherent organic growth capability
27.1.6. Pivots should be celebrated
27.1.6.1. Celebrate the learning, not the failure
27.1.6.2. Succeeded to get away from failure
28. Further reading
28.1. 4 steps to epiphany
28.1.1. Book by Steve Blank
28.2. Book coming out in sept, 2011
28.3. Conf
28.3.1. http://sllconf.com
28.4. Links
28.4.1. http://lean.st
28.4.2. http://startuplessonslearned.com
28.4.3. http://theleanstartup.com
28.4.4. @ericries
28.4.5. #leanstartup
28.4.6. [email protected]