1. Otto Freijser
Scaling Lean
Startup in an
Enterprise

2. Otto Freijser
Lean Startup Evangelist / Coach
@ofreijser

3. Sparking entrepreneurial action
Partner at:
enjoy helping teams in organisations such as:

4. Standing on the shoulders of Giants ☺

5. Lean
Startup
for
corporate
s?

6. WE START
WITH A
VISION

7. WE PROCEED
WITHOUT
VALIDATING

8. Traditional product development process
Develop
technology /
product
Create
Marketing
Position
Create
Sales Plan
Bring to
Market

9. Dr. Robert G. Cooper. “Doing It Right.” Product Development Institute. 2006 77%
Frost & Sullivan. “Growth Process Toolkit: New Product Development.” 2008 0.3%
Frost & Sullivan. “Growth Process Toolkit: New Product Development,” 2008. 1%
Andrew Campbell and Robert Park. “Stop Kissing Frogs.” Harvard Business Review. July-August 2004.
1%
Dr. John Sviokla. “The Calculus of Commerce.” DiamondCluster International. 2004 3%
Corporate Strategy Board. “Stall Points” 1998. Cited in Clayton Christensen and
Michal Raynor “The Innovator’s Solution.” page 5. 5%
Andrew Campbell and Robert Park. “Stop Kissing Frogs.” Harvard Business Review. July-August 2004.
10%
Kevin Clancy and Randy Stone. “Don’t Blame the Metrics.” Harvard Business Review. June 2005.
10%
Corporate Strategy Board. “Overcoming Stall Points.” 2006. 10%
PricewaterhouseCoopers. “Shaking the Money Tree.” Slide 33. US Venture Liquidity, 2001-2007. Q3 2008. 11%

10. Average: 17% of
product introductions
are successful

11. 17

13. WE CAN’T AFFORD
TO MISS THE TARGET

14. NO DRAMATIC FAILURES

15. WE CAN LEARN
FROM STARTUPS

16. - Steve Blank
"A startup is not a
smaller version of a
big organisation."

17. "A human institution
designed to create a new
product or service under
conditions of extreme
uncertainty."
Eric Ries

18. How do you create a blockbuster new product?
Develop
technology /
product
Create
Marketing
Position
Create Sales
Plan
Bring to
MarketXXXX

20. No business plan
survives first
contact with
customers!

21. 66%
Changes their
original plan –
drastically

23. Search Execution
Goal: Find a repeatable
and scalable business.
(internal) startup.
Goal: Execute on a given
business, financial, and
operating plan.
Process driven hierarchy.

24. Analysis
Requirement
Specification
Design
Development
Testing and
Integration
Implementation
/ Deployment
Goal: Find a repeatable
and scaleable business
Search Execution

26. LIFE’S TOO SHORT...
TO BUILD SOMETHING NOBODY

28. In large
companies, the
mistakes just have
additional zeros
in them
Steve Blank

29. Customer
discovery
Customer
validation
Search
Problem / Solution Fit Product / Market Fit
Pivot
Growth
Hacking
Company
Building
Execute

30. You learn by doing
You can't learn kung-fu by watching
Bruce Lee movies

33. We use Lean Startup as a set of tools,
principles and behaviours that will…
Get you closer to customers
Increase your speed to market
Increase the chance of succes
Make it easier to get things done

34. “Lean startup is a basic philosophy that
systematically identifies risk in a business
model and designs research and
experimental methods to bring more certainty
to the business. We do this through rapid
iteration of our business model.”
Tristan Kromer
TRIKRO.com

38. Build
Measure
Learn (BML)
Learn Build
Meas
ure
Plan A assumptions
Every loop consists of one
or more experiments

39. Reverse the loop Learn Build
Meas
ure
Plan A assumptions
1. What do we need to learn?
2. What data or information
do we measure to learn this?
3. What do we need to build to
get the data we want to measure.

41. So, how do we apply
this to our corporate
world?

45. O
u
r
f
i
r
s
t
e
i
g
h
t
i
d
U
n
a
c
c
e
p
t
a
Speedboat Managers

46. T
o
t
a
l
l
y
b
r
a
n
d
n
e
n
’
t
h
a
v
e
p
r
e
c
e
d
e
n
c
e
f
o
r
t
Speedboat Lawyers

47. W
i
l
l
y
o
u
s
p
o
n
s
o
r
o
u
r
n
O
h
,
n
o
,
n
o
.
T
h
a
t
’
s
n
o
t
i
Speedboat Business Unit

48. C
a
n
w
e
h
a
v
e
s
o
m
W
h
a
t
’
s
y
o
u
r
5
y
e
a
r
Speedboat Finance
We made it up
Denied.

50. 50
STARTUP
ENDUP
How do you become
big without breaking?
Install an ‘OS’,
that assumes
that you
are wrong
“Duh” – Peter Senge

52. ”New Corporate” = Ambidextrous / Dual-core
+
Combining Search (Speed) & Execution (Efficiency)
A ? A B
Startup = Speedboot Corporate = Oil tanker

53. Fast
Scaling
Organize
for Innovation

54. Fast
Scaling
Organize
for Innovation

55. INNOVATION STAGES
VISIONING GOVERNANCE EXPLORE EXPERIMENT

56. Macro
economic
Forces
Industry
forces
Market
Forces
Key
Trends
Company
Goal / Way to PlayVisioning

57. A
B,C,D,
ETC?
A B

58. THREE HORIZONS OF INNOVATION
Goals
Scope
Unscertainties
Approach
Unique Products
Growht Options
HIGH
R&D
Unique Products
High Business value
MED
R&D
Products
Current Business
LOW
R&D

60. Supporting innovation project teams

61. Innovation
Accounting
AAARR
VS
Execution
Financial
KPI

62. measure relevant progress

63. Stage gated funding

65. don’t DO Innovation, manage the Innovation Funnel

66. When will you
get to revenue?
What is
your 5 year
proforma?
When is it
ready to
launch?
How much revenue
will
you get?
Questions
that should
never be
asked

67. (Much) better questions ☺
What is your
vision with this
project?
How big is the market
you are approaching?
Which elements of
your business model
have you validated?
Which require further
exploration?
Do you have
a launching customer
in
mind?
Is this 10x better than
what is currently out
there, if not yet how
can we make it 10x
better?

68. EMPOWER more teams to
launch more, earlier and smaller….

69. Cool Solution
Customer
Customer
Customer
Customer
Customer
X
X
X
X
X
☹€ €
€
Solution-first Thinking

70. Cool Customer
Problem
Problem
Problem
X
X
☺Problem
Solution
X
SolutionSolution
€
€
Lean Customer Development

71. Turn assumptions
into facts and data
points

72. Systematically testing Business model
assumptions

73. Launch a Minimum Viable Ecosystem
DEFINE AND DESIGN MINIMUM VIABLE ECOSYSTEM
And learn what works and what doesn’t, by starting small with only the minimum viable requirements to allow 2-3
teams to run through one cycle of the Validation Loop, minimizing waste and maximising speed of learning.

74. Launch a Minimum Viable Ecosystem
SUPPORT VALIDATION SPRINTS

75. Launch a Minimum Viable Ecosystem
DRIVE CONTINOUS ITERATION

76. NO YES
Status
Focus
Duration
Metrics
Scale
Idea Explore Validate Grow Sustain Retire
Search for Business Model Execute against Business Model
Early Adopters Early Majority, Late Majority, Laggards
Weeks Year(s)Days Months
Customer Development, Innovation
Accounting, Lean Analytics, Pirate Metrics Revenues, Profit-Margins, ROI, IRR, NPV
Understand what to focus on and when in the Product Lifecycle
Company BuildingMarket Discovery Process

78. Fast
Scaling
Organize
for Innovation

79. A Revolution At Work
Learning organizations adopt a learn by doing
approach, have a bias for action, and design for
reflection and iteration.
Open organizations make information easily accessible
and open to all. Everyone has the information they
need at all times.
Networked organizations enable people to work easily
in teams that cut across functions and geographies,
and even extend beyond the formal boundaries of the
organization.
79

80. - so firstly, Spotify organise their teams in a super interesting way.
- they have very fluid structures where teams are organised in to chapters, squads and guilds.
- the design here is all about enabling a culture which is product and user focused first, and encouraging people from different teams to have very grey edges
to the roles they perform.

81. - Zappos, are another company who demonstrate a very innovative post bureaucratic culture.
- They’re incredibly people focused, both obesessionally about their customer but also in realising that their culture is their brand.
- This book, is their 2014 culture book. You can download it for free online.
- Each year they publish this, which is co-written by all the staff, as a manifesto for the values and culture that they believe in.
-
- Inside you’ll find stuff about their core values and vision, their flat self organising structure, notes from new joiners on what joining Zappos has done for
them, and a real sense of purpose and mission about where the company is going next.

82. - It would’ve been hard to touch on innovative culture without mentioning google
- this slide is taken from a great deck I’d recommend you take a look at on slide share called ‘How Google Works’ and it’s a very astute google like observation
- It simply says ‘innovation can’t be owned or ordained, it needs to be allowed. You can’t tell innovative people to be innovative, but you can let them’.
- And it’s thinking like that from Eric Schmidt and the team at Google that has really enabled them to scale this entrepreneurial, inquisitive mindset throughout
their teams.

83. - I love this example of post bureaucratic thinking from Nordstrom
- This is a company with 67,000 employees and this is there employee handbook. All of it.
- So on one side it says employee handbook and on the other it say ‘our one rule. Use good judgment in all situations’.
- I think this is a real demonstration of a company who are trying to drive culture by focusing on value, not policies.

84. HAVE A
SHARED PURPOSE
ORGANIZE AS LEAN,
X-FUNCTIONAL TEAMS
DISTRIBUTE
AUTHORITY
OPERATE
ON A RHYTHM
WORK IN SPRINTS
PATTERNS
IN TODAY’S
MOST CAPABLE TEAMS
MEET WITH PURPOSE
STEER DYNAMICALLY
VALUE CONSENT
(NOT CONSENSUS)
DEFAULT TO OPEN
HAVE
EDITABLE
RULES
CULTIVATE
PSYCHOLOGICAL
SAFETY
RITUALIZE
LEARNING + REFLECTION

85. ORGANIZED
TO EXECUTE
ORGANIZED
TO LEARN
HIRING Conformers, Rule followers
Creative problem solvers,
experimenters
TRAINING Learn before you do Learn from doing
MEASURING PERFORMANCE Did you do it right? Did we learn?
ORG STRUCTURE Silos & separated expertise
Cross-functional,
integrated expertise
PROCESS GOALS Drive out variance
Use variance to adapt
and improve
Source: “Teaming: How Organizations Learn, Innovate, and Compete in the Knowledge Economy”, by Amy C. Edmondson

86. If we can build a great team,
we can build a great organization.
Team

88. Innovators
Or
Innovations?

89. Mindset ToolsetSkillset

90. Ownership
(80%)

91. Never Give Up
(20%)

92. Hacker HipsterHustler

93. HELPER
The person who gets down to
business and get's stuff done.
They are true teamplayers and are
masters in managing conflict, they
are the glue of the team, who
enjoy putting their skills in service
of making things happen.
HACKER
The one most likely to sit quietly
through a board meeting until
uttering the three sentences that
answers the all important question
of "how?" the new idea can be
brought into reality.

94. Bring in outsiders to join a team

95. Toolset
Lean Startup Growth Hacking Value Proposition Canvas Pitch Training Customer Development Online collaboration &
e-learning
Business Model Canvas MVP Team Composition Stakeholder Management Design Thinking Jobs to be Done

96. Practices
that shift
Mindsets

97. Fast
Scaling
Organize
for Innovation

98. EXPLORE EXPERIMENT

99. AGILE
Sprint Weekly demo & retrospectiveSprint KANBANExperiment backlog
1 week
24 hr
Daily standup
B
M
L
Learnings & next steps

101. Our success at Amazon is
a function of how many
experiments we do per year,
per month, per week, per
day…
Jeff Bezos
CEO and Founder Amazon

103. How certain are you?
Closed
ControlledEfficient
Open
NetworkLearning
PurposePurpose
Assumes that you’re
RIGHT
Assumes that you’re probably
WRONG
INDUSTRIAL RESPONSIVE

104. Also applying to your Ecosystem Design

106. Nurturing Innovation takes time

107. Adaptive Culture
Is all about making
change work

111. Imagine your corporate culture as a garden

112. 112
STARTUP
ENDUP
Install an ‘OS’,
that assumes
that you
are wrong
“Duh” – Peter Senge

113. Bringing
it all
together

114. Ideas aren’t
facts

115. It’s all about
the team

116. Fail fast
& often!

117. Before launch:
“Fluffy expectations land”

118. After launch:
“Bad mean reality”

119. Also, you most of the
time have no idea what
your doing……

120. It needs practices and
training!!

121. Any
questions?
www.perpetulon.com
@ofreijser
otto.freijser@perpetulon.com