LEAP_MtN_v1 - Moves the Needle

Report
LEAP
LEAN ENTREPRENEUR ACCELERATOR
PROGRAM
Welcome
Topics:
Lean Startup Overview
Make Your Idea Tangible
Lean Experiments
Decisions – The Art of the Pivot
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Agenda Day 1
8:00 – 8:30
8:30 – 9:00
9:00 – 9:30
9:30 – 11:00
11:00 – 11:30
11:30 – 2:30
2:30 – 3:00
3:00 – 3:30
3:30 – 5:00
5:00 +
needed)
Breakfast – Let’s Eat!
Intro to Lean Startup
Enterprise Innovation Spectrum
Doing it – LEAP Loop #1 Exercise
Create Your Experiment
Get Outside – run your experiment!
Close the Loop
Building Your Case
LEAP Loop #2
Optional work time (we’ll stay as late as
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What is LEAP?
Goal: Learn and apply lean startup principles by
doing, so you never go back to the old way.
What to expect:
- Get outside your comfort zone
- The need for speed – we’ll go fast!
- We’re here to help, don’t hesitate to ask
- Have fun!
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How will you do it?
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Ready to LEAP in?
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What is “Lean”?
Elimination of waste in the production and delivery
of value to the customer…
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What is a Startup?
“A startup is an temporary organization
formed to search for a repeatable and
scalable business model.” – Steve Blank
“A human institution designed to create
new products and services under
conditions of extreme uncertainty.” – Eric
Ries
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What is “Lean Startup”?
Elimination of waste in searching for a scalable
business model, or significant business impact.
Goal for lean startups: Learning!
Lean Startup Myths
• Lean = cheap or poor quality
• Only for high tech (hint: it works in large orgs
too)
• Replaces vision with customer demands
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Innovation Spectrum
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How do we search?
Begin with an educated guess
-
OK to begin without the answers, you’re probably wrong anyway.
Change guesses into facts using experiments
- Measure behavior, test hypotheses, capture surprises
- Make decisions based on the results of your experiments
Move through the loop quickly
- Build the absolute minimum required to test your assumptions
- Build your case one experiment at a time
- Get moving – NOW! (rinse and repeat forever)
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Source: Eric Ries, The Lean Startup
Lean
Experimentation
Rigor
Inspiration
Rapid Experimentation Continuum
No Experience
(unknown)
Search
High Risk - many
unknowns
Breakthrough
Innovations
Sustaining
Innovations
(disruptive)
Optimize
Low Risk - few
unknowns
Experienced
(known)
Measure
Focus on the key metrics that matter – ignore vanity
metrics.
-
Measure important customer behavior
Willingness to exchange “currency” (time, attention, $$$)
What activities must we do to deliver customer value
Something else unique to your idea?
Use metrics to eliminate gap between “say vs. do”, focus
on metrics involving “do”.
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Lie Witness News
Why don’t we just ask customers if they will use our
product?
http://www.youtube.com/watch?v=Vp4SnmOxP0U
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Learn and Decide
The output from lean experimentation is new knowledge
and insights about your customer or business model.
•
•
•
•
•
Build a case over time, using multiple experiments
Experiments to learn, not just validate.
Savor the surprises!
Is your confidence increasing or decreasing?
Why, why, why?
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Let’s Get Loopy!
The Lean Startup Loop
Exercise – Run the Loop
0:05 – Review and post your idea (customer + problem + solution)
0:15 - Brainstorm your riskiest assumptions
0:10 – Narrow to your top 3 assumptions
0:05 – Document your Leap of Faith Assumption
0:10 – Brainstorm hypotheses
0:05 – Document a single hypothesis
0:15 - Brainstorm experiments to test hypothesis
0:10 – Narrow to a single experiment
0:05 - Document your experiment
– Build and run your experiment outside with real customers
0:15 – Learn as a team – close the loop
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Exercise 1
Make Your Idea Tangible
Document Your Idea (:05)
Tangible, measurable solution to a specific
customer problem or pain – be specific!
Task: Post 3 sticky notes on your poster
Customer: Who is experiencing the problem.
Problem: What is the customer’s problem
Solution: Your proposed solution to the problem
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What are Assumptions?
“Something taken for granted or
accepted as true without proof”
Opinions vs. Facts
(Hint: What you think is fact, is likely an assumption)
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Exercise 2
Leap of Faith Assumption
Brainstorm Assumptions (:10)
• What customer behaviors must take place for
your solution to be adopted?
• What assumptions are you taking for granted as
fact?
• What keeps you up at night?
Task: Write down as many assumptions as
possible as a team, one assumption per sticky
note.
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Narrow Assumptions (:10)
• What is the biggest assumption that if false, will
cause you product to fail?
• What is most unknown, where do gaps exist?
• Focus on customer behavior related
assumptions
(ex: Sports cars lovers will drive an electric car)
Task: Narrow your assumptions using the LEAN
Loop poster 2x2 grid.
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Post Your Leap of Faith (:05)
This is the riskiest assumption for your business
idea.
“If this is not true, we’re out of business”
(ex: Sports cars lovers want an electric car)
Task: Place a single sticky note of your riskiest,
LOF assumption on your poster.
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Exercise 3
Hypothesis
If we do X, Y% of people will
behave in way Z
X= Your solution (the carrot)
Y% = Your target metric (the number)
Z = The customers’ behavior (the hoop)
Create Hypothesis (:05)
If we do X, Y% of people will
behave in way Z
Task: Write down your hypothesis on a sticky note,
and place on your poster.
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Pitch (:01)
Customer + Problem + Solution + LOF
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Exercise 4
Lean Experiments
Why Lean Experiments?
Reduce the risk associated with resource
investment, move faster with more certainty.
• Change opinions into facts
• Inform our decisions with data and customer
insights
• Separate customer words from behavior – say
vs. do!
Output = Insights + Data
(what did I learn from the customer + what
behavior did I measure)
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Brainstorm Experiments (:15)
•
•
•
•
Will his experiment will test your hypotheses?
Measure real behavior (or as close to it as possible)
Can you get an answer quickly!
Capture surprises as well as data
Important: Use behavior + “currency exchange” to eliminate
say vs. do – NO SURVEYS – KEEP IT HUMAN
(currency = time, money, attention, personal info, usage)
Task: Brainstorm at least 3 different experiment methods
listed your survival guide.
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Choose 1 Experiment (:10)
• Can you get your answers quickly?
• How will you measure behavior?
• How will you interact in person with your target
customer?
Did we mention:
NO SURVEYS + KEEP IT HUMAN
Task: Select the best experiment to run first (use 2x2 for
help)
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Document Experiment (:05)
Task: On your poster, complete a sticky note for
each of the following:
- Describe the experiment
- What specific behavior will you measure?
- What currency will you collect?
- Minimum success criteria (ex: 50% sign-up)
NO SURVEYS!
KEEP IT HUMAN!
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Go! (2:45)
Run your experiment in the wild
- Don’t tell people this is an experiment
- Collect contact info so you can follow-up later
- Ask why or why not – look for surprises!
- Stay out of jail…
Return by 2:15pm
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Learn and Decide
Closing the Loop
What are you looking for?
A strong behavioral response from your target
customer, confirming or denying your hypothesis.
- Did your numeric hypothesis pass or fail?
- Do you know why or why not?
- What surprised you?
Ex: 50% of small business signed up for our online
beta program, providing their email and contact
info.
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Output = Learning
What insights did you encounter which change the
way you think about your customer..?
How painful is the problem? Does it exist at all?
- Vitamin > Medicine > Addictive Drug
Are they trying to solve it today?
- What process, if any, are they taking to solve their problem
What were your biggest surprises?
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The Art of the Pivot
A significant change in direction based on new customer
insights, where the vision remains the same.
Idea: App to help diabetics maintain healthy eating habits.
Insight: “Diabetic caregivers often care more than patients
about maintaining healthy habits”
Pivot to: App for diabetic caregivers instead of diabetics
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Close the Loop (:15)
Based on what you learned, Is your Leap of Faith
true or false..? Why or why not?
If true – Persevere!
- Move on to next leap of faith, repeat loop process
- Push to be more aggressive for next experiment
If false – Pivot!
- Change one or more components of your Idea, Repeat loop process
- Important: leverage insights gathered during your experiment!
Document updates on your poster and canvas
- Create new sticky notes and place them on top of existing notes
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Pitch 2 (:03)
Customer + Problem + Solution + LOF
+ Experiment + Decision
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Let’s Get Loopy Again!
Rinse and Repeat – Forever!
Loop to the Start, Begin Again
•
•
•
•
Review/update your vision and idea
Pick your next Leap of Faith assumption to test
Create a new hypothesis for next experiment
Create the next experiment to test your next
hypothesis
• Run your next experiment with real customers!
Task: As a team, run through the steps of your
poster, asking for mentor help if needed.
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Digital Experiments
Run a digital experiment overnight
• Unbounce.com
• Bit.ly
• Wufoo.com
• MailChimp.com
• Godaddy.com
• Craigslist.com
• Facebook Ads
• Google AdWords
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Congrats!
You Survived Day 1
Agenda Day 2
8:00 – 8:30 Welcome back check-in
9:30 – 10:00 Breaking frame
10:00 – 10:30 Pitch Updates (tell your story)
~11:00 – 2:00 Go outside! Experiment #1
2:00 – 3:00 Closing the loop
3:00 – 4:00 Breaking frame
4:00 – 4:30 Experiment plan #2
4:30 – 5:00 Operationalize LEAP (now what?)
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Day 1 - Reflections
What did you feel and observe?
How is this process different than your current way of
working?
Are we uncovering game-changing ideas for our customers?
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Judge the Search…
Teams are just as important as ideas
-
Teams must demonstrate the ability to “search”, in addition to their
idea’s viability. No team gets it right the first time.
Real customer behavior trumps opinion
-
Teams must demonstrate the ability to generate data from
customers using behavioral experiments.
Evidence builds in small increments over time
-
Teams must move through multiple experiments loops in small
increments, in order to increase confidence over time.
Judge the Business Model
Identify a specific customer
-
Teams must demonstrate understanding of their specific customer
segment, and insights related to the customer’s desired outcomes.
Deliver value to the customer
-
Teams must demonstrate their proposed solution is delivering value
to their target customer, via currency exchange (time, attention,
dollars)
Generate positive business impact
-
Teams must demonstrate Intuit can extract value for shareholders
(and employees as well)
Before we Begin, Review…
•
•
•
•
•
Review/update your vision and idea
Pick your next Leap of Faith assumption to test
Create a new hypothesis for next experiment
Create experiment(s) to test your next hypothesis
Run your next experiment with real customers!
Task: As a team, run through the steps of your
poster, asking for mentor help if needed.
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Pitch – (:03)
Tell Your Story
Vision + Customer + Problem + Solution + LOF +
Experiment 1
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What are you looking for?
A strong behavioral response from your target customer,
confirming or denying your hypothesis.
- Do you know why or why not?
How painful is the problem? Does it exist at all?
- Vitamin > Medicine > Addictive Drug
Are they trying to solve it today?
- What process, if any, are they taking to solve their
problem
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Example – LEAP
• Vision: Create entrepreneurs inside corporations
• Idea: A 2-day “lean competition” for entrepreneurs at big companies
–
–
–
–
Customer Segment: Internal entrepreneurs at corporations
Customer Problem: I don’t know how to move my new idea forward
Value Proposition: Jumpstart your idea while learning lean startup principles
Revenue Model: Fee to attend
• Leap of Faith: If we conduct a startup competition, entrepreneurialminded employees will attend and make rapid progress on their
ideas
• Hypothesis: At least 3 teams will attend an event, and at least 1 team
will validate their business idea with real customers.
• Experiment: Conduct a LEAP competition in San Diego
• Metrics/Currency: Number of entrepreneurs who attend, idea
success, currency is willingness to spend time spent away from day
job.
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Let’s get Loopy - Again!
Repeat until your business is validated (or not)
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Final Loop
Did you get a strong behavioral response from
your target customers?
- Did your numeric hypothesis pass or fail?
- Do you know why or why not?
- What surprised you?
What is your decision as of right now?
- How confident are you in this decision?
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Pitch 3 – Final (:05)
Tell Your Story
Vision + Customer + Problem + Solution + LOF +
Experiment 1, 2, 3 + Final Decision
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Next Steps
• Try it – Don’t wait for permission to run
experiments
• Start small, think big
• Set aside specific time for experiments
• Help each other – you’re in the club
• Include leaders in the process
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Business Model Canvas
Business Model Canvas
Start with Customer, then Business
Use learning from customers to inform how to create business
Vision: Create Intrepreneurs…
IDEA: 48 hour startup competition for corporate intrepreneurs
Corporations
Conferences
Conduct events
Follow-up
coaching
Lean Startup
community (Eric)
LEAP Mentors
LEAP Content
Jumpstart your
idea quickly….
Event + follow-up
support from the
community.
Intrepreneurs
Product Teams
Lean lean startup
principles…
Academies
Find out if
customers like
your idea…
(GMs, pipeline
owners,
shareholders)
Word of Mouth
Have fun!
Per-event: Facilities, facilitators
(~$6,000 est.)
Fees to attend
% of New ideas in market
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Vision: Create Entrepreneurs…
IDEA: 48 hour startup competition for internal entrepreneurs
BUs
Lean Startup
community (Eric)
Conduct events
Follow-up
coaching
LEAP Mentors
LEAP Content
Jumpstart your
idea quickly….
Event + follow-up
support from the
community.
Intrepreneurs
Product Teams
Lean lean startup
principles…
Academies
Find out if
customers like
your idea…
(GMs, pipeline
owners,
shareholders)
Word of Mouth
Have fun!
Per-event model
(~$6,000) + employee time
Fees to attend
% of New ideas in market
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Thanks!
Now go do it!

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