"Lunch 'n Learn" Deck on "The Lean Startup"
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The document summarizes key principles from Eric Ries' book "The Lean Startup" for running startups using an experimental "lean" approach. It discusses five main principles: (1) entrepreneurs are everywhere, (2) entrepreneurship is management, (3) validated learning through experiments, (4) building minimal products to test assumptions using the "Build-Measure-Learn" process, and (5) using "Innovation Accounting" to measure progress towards growth goals. The presentation provides examples of applying each principle and encourages the audience to consider testing ideas using the lean startup methodology.
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"Lunch 'n Learn" Deck on "The Lean Startup"
- 1. INTRO TO THE LEAN STARTUP LUNCH & LEA(R)N - DEC 2015
- 2. WHY DO I CARE? I’M A 3X “WANT-TREPRENEUR”. ▸ 2007: Online Social Language Learning! #fail ▸ 2008-2010: Emotive Social Profiles! #fail! ▸ 2012-?: Dance Online! (fail date TBD) FOX INTERACTIVE MEDIA - 2006 QUIT GOOD JOB, 9 MONTHS SPAM & RICE, $$$$ FAMILY LOAN THAT I’M STILL PAYING BACK 2 YEARS DEV OUTSIDE DAY JOB, ALMOST LOST FUTURE WIFE 3 MONTHS DEV, $$ AD SPEND LEARNED SOME THINGS!
- 4. REDUCED WASTE & EMPHASIZED LEARNING I READ THIS BOOK
- 5. 5 PRINCIPLES WHAT IS THE LEAN STARTUP?
- 6. PRINCIPLE #1: ENTREPRENEURS ARE EVERYWHERE. Eric Ries LEAN PRINCIPLE #1: ENTREPRENEURS ARE EVERYWHERE.
- 7. A STARTUP: A HUMAN INSTITUTION DESIGNED TO CREATE NEW PRODUCTS AND SERVICES UNDER CONDITIONS OF EXTREME UNCERTAINTY. Eric Ries LEAN PRINCIPLE #1: ENTREPRENEURS ARE EVERYWHERE.
- 8. I THINK WE’RE A STARTUP. Me LEAN PRINCIPLE #1: ENTREPRENEURS ARE EVERYWHERE.
- 9. PRINCIPLE #2: ENTREPRENEURSHIP IS MANAGEMENT. Eric Ries LEAN PRINCIPLE #2: ENTREPRENEURSHIP IS MANAGEMENT.
- 10. A STARTUP IS AN INSTITUTION, NOT JUST A PRODUCT, AND SO IT REQUIRES A NEW KIND OF MANAGEMENT SPECIFICALLY GEARED TO ITS CONTEXT OF EXTREME UNCERTAINTY. Eric Ries LEAN PRINCIPLE #2: ENTREPRENEURSHIP IS MANAGEMENT.
- 11. BECAUSE STARTUPS OFTEN ACCIDENTALLY BUILD SOMETHING NOBODY WANTS, IT DOESN’T MATTER MUCH IF THEY DO IT ON TIME AND ON BUDGET. Eric Ries LEAN PRINCIPLE #2: ENTREPRENEURSHIP IS MANAGEMENT.
- 12. THE GOAL OF A STARTUP IS TO FIGURE OUT THE RIGHT THING TO BUILD— THE THING CUSTOMERS WANT AND WILL PAY (OR SIT THROUGH ADS) FOR — AS QUICKLY AS POSSIBLE. Eric Ries LEAN PRINCIPLE #2: ENTREPRENEURSHIP IS MANAGEMENT.
- 13. GIVEN OUR COMPETITIVE MARKET AND LEAN TEAM, I FEEL THE IDEAS WE IMPLEMENT SHOULD BE MANAGED LIKE STARTUPS TO ACHIEVE MEASURABLE RESULTS AS QUICKLY AND EFFICIENTLY AS POSSIBLE. LEAN PRINCIPLE #2: ENTREPRENEURSHIP IS MANAGEMENT.
- 14. PRINCIPLE #3: VALIDATED LEARNING. Eric Ries LEAN PRINCIPLE #3: VALIDATED LEARNING.
- 15. STARTUPS EXIST TO LEARN HOW TO BUILD A SUSTAINABLE BUSINESS. Eric Ries LEAN PRINCIPLE #3: VALIDATED LEARNING.
- 16. THIS LEARNING CAN BE VALIDATED SCIENTIFICALLY BY RUNNING FREQUENT EXPERIMENTS THAT ALLOW ENTREPRENEURS TO TEST EACH ELEMENT OF THEIR VISION. Eric Ries LEAN PRINCIPLE #3: VALIDATED LEARNING.
- 17. PRINCIPLE #4: BUILD-MEASURE-LEARN. Eric Ries LEAN PRINCIPLE #4: BUILD-MEASURE-LEARN.
- 18. THE FUNDAMENTAL ACTIVITY OF A STARTUP IS TO TURN IDEAS INTO PRODUCTS, MEASURE HOW CUSTOMERS RESPOND, AND THEN LEARN WHETHER TO PIVOT OR PERSEVERE. Eric Ries LEAN PRINCIPLE #4: BUILD-MEASURE-LEARN.
- 19. ALL SUCCESSFUL STARTUP PROCESSES SHOULD BE GEARED TO ACCELERATE THAT FEEDBACK LOOP. LEAN PRINCIPLE #4: BUILD-MEASURE-LEARN. Eric Ries
- 20. LEAN PRINCIPLE #4: BUILD-MEASURE-LEARN. THE LEAN WAY TO BUILD-MEASURE-LEARN ▸ Take your great idea (“Vision”) and identify its Leap-of-Faith assumptions. Identify the riskiest assumption. ▸ Devise the smallest thing you can build in order to test that assumption (“MVP”). ▸ Release MVP and measure user engagement. ▸ Learn from the data whether your assumption was validated. ▸ If so, great! Build and test the next assumption of your Vision. ▸ If not, decide whether to change your idea/strategy (“pivot”) or persevere.
- 21. THE LEAN STARTUP METHOD BUILDS CAPITAL- EFFICIENT COMPANIES BECAUSE IT ALLOWS STARTUPS TO RECOGNIZE IT’S TIME TO PIVOT SOONER, CREATING LESS WASTE OF TIME AND MONEY. LEAN PRINCIPLE #4: BUILD-MEASURE-LEARN. Eric Ries
- 22. WHAT IDEAS CAN YOU THINK OF THAT COULD BE APPROACHED IN A “LEAN” WAY? LEAN PRINCIPLE #4: BUILD-MEASURE-LEARN.
- 23. PRINCIPLE #5: INNOVATION ACCOUNTING. Eric Ries LEAN PRINCIPLE #5: INNOVATION ACCOUNTING.
- 24. TO IMPROVE ENTREPRENEURIAL OUTCOMES AND HOLD INNOVATORS ACCOUNTABLE, WE NEED TO FOCUS ON THE BORING STUFF: HOW TO MEASURE PROGRESS, HOW TO SET UP MILESTONES, AND HOW TO PRIORITIZE WORK. Eric Ries LEAN PRINCIPLE #5: INNOVATION ACCOUNTING.
- 25. LEAN PRINCIPLE #5: INNOVATION ACCOUNTING. ACCOUNT FOR INNOVATION WITH 3 LEARNING MILESTONES ▸ Learning Milestone #1: Choose your Engine of Growth and baseline its key metrics. ▸ “Sticky” Growth Engine: Growth = (User Acq Rate >> Churn Rate) ▸ “Viral” Growth Engine: Growth = (Viral Coefficient > 1.0) ▸ “Paid” Growth Engine: Growth = (Rev per User >> User Acq Cost) ▸ Learning Milestone #2: Tune your engine with MVPs that actually drive its metrics. ▸ Learning Milestone #3: Over time, see if your numbers are trending towards Growth — If not, decide whether to Pivot or Persevere!
- 26. WHAT DO YOU THINK? THANKS FOR LISTENING!