Lean Startup ― Unleash Your Inner Entrepreneur, Pivot to Grow | Will Jeffrey | Skillshare

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Lean Startup ― Unleash Your Inner Entrepreneur, Pivot to Grow

teacher avatar Will Jeffrey, Professional Agile Trainer

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

11 Lessons (23m)
    • 1. Course Introduction

      1:17
    • 2. Lean Startup 101

      2:35
    • 3. The Lean Startup Principles

      1:39
    • 4. From Innovation to a Potential Solution

      1:36
    • 5. The Five Basic Building Blocs

      1:29
    • 6. > Identify Assumptions

      2:48
    • 7. > Build an MVP

      1:48
    • 8. > Use Validated learning

      3:05
    • 9. > Build, Measure, and Learn

      1:09
    • 10. > Pivot or Persevere

      3:38
    • 11. Wrapping Up

      2:07
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About This Class

Learn how to apply the method to build and launch successful product like Google, Facebook, Slack, Dropbox, Zappos, Intuit, General Electric, Toyota, etc..

Lean Startup is a revolutionary technique.that provides you with a toolset to minimize failure and increase your chances of success.

Rather than wasting time creating elaborate business plans, The Lean Startup offers entrepreneurs—in companies of all sizes—a way to test their vision continuously, to adapt and adjust before it’s too late. It provides a scientific approach to creating and managing successful startups in a age when companies need to innovate more than ever.

Who should take this course:

  • Managers who want to learn how to innovate
  • Startups that don't want to screw up
  • Anyone who develops new products in complex environments
  • Anyone who wants to learn Lean Startup

What you'll learn​:

  • The basic principles of Lean Startup methodology
  • How important it is to create a system of "innovation accounting" within your company so that everyone is building products that meets customers needs
  • The easiest and fastest ways to build minimum viable products so you can get your product launched as quickly as possible
  • What "The 3 A's" are and how to make sure all of the metrics you look at are actionable, accessible and auditable

​​Recommended class:

Meet Your Teacher

Teacher Profile Image

Will Jeffrey

Professional Agile Trainer

Teacher

Will has over 20 years of Software Development experience with his last 15 years in the role as Project Manager, Scrum Master and Agile Coach Master.

He managed or facilitated projects of different scale, project size from dozen man-days to hundred man-years.

He has trained & coached hundreds of professionals, including senior leaders in Fortune 500, startups, and entrepreneurial companies, to accelerate their impact and influence, and grow into their next-level of authentic and inspired leadership.

He now splits his time coaching executives, managers, as well as building up Scrum Masters, Product Owners, and Agile Coaches internally.

 

What Are Will's Core Skills

• Certified Scrum Master (10+ years running Web, Desktop & Mobile projec... See full profile

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Transcripts

1. Course Introduction: Hi everyone. My name is Will Jeffrey and welcome to my course. I'm an Agile coach, helping teams to get better and doing what they love. Lean startup is a new field tested philosophy that provides you with a toolset to minimize failure and increase your chances of success. Learn why hundreds of companies from financial services companies like Wealthfront to social companies like IMB due to large corporations such as intuit or using this revolutionary technique. But what is lean startup? Or more importantly, how do I implement Lean principles into my own company? The goal of this course is to answer these questions. What you learn, the basic principles of lean startup methodology, how important it is to create a system of innovation accounting within your company so that everyone is building products that meets customers needs. The easiest and fastest ways to build minimum viable products so you can get your product launched as quickly as possible. What the three A's are, and how to make sure all of the metrics you look at our actionable, accessible and auditable. We hope you will enjoy this course. 2. Lean Startup 101: A burst of innovation in the software sector was unleashed in part by the transition from shipping software and shrink-wrapped boxes to releasing in the Cloud. Time between updates has gone from a year or more to days or even hours. And by virtue of being online, companies can immediately see how users respond. Software development has been transformed. Eric Reese popularized this new approach to continuous innovation in his 2011 bestselling book, The Lean Startup. As he said, startup success can be engineered by following the process. Which means it can be learned, which means it can be taught. What is The Lean Startup? The Lean Startup Method teaches you how to drive a startup, how to steer, when to turn and went to persevere and grow a business with maximum acceleration is a principled approach to new product development. The lean startup provides a scientific approach to creating and managing startups and get a desired product to customers hands faster. Too many startups begin with an idea for a product that they think people want. They then spend months, sometimes years perfecting the product without ever showing the product, even in a very rudimentary form to the prospective customer. When they fail to reach broad uptake from customers. It is often because they never spoke to perspective customers and determine whether or not the product was interesting. When customers ultimately communicate through their indifference that they don't care about the idea, the startup fails. The lack of a tailored management process has led many a startup, or as RIS terms them, a human institution designed to create a new product or service under conditions of extreme uncertainty. To abandon all process. They take a Just Do It approach that avoids all forms of management. But this is not the only option. Using the lean startup approach, companies can create order, not chaos by providing tools to test a vision continuously. Lean isn't simply about spending less money. Lean isn't just about failing fast, failing cheap. It is about putting a process, a methodology around the development of a product. The lean startup methodology has as a premise that every start-up is a grand experiment that attempts to answer a question. The question is not, Can this product be built? Instead, the questions are, should this product be built? And we build a sustainable business around this set of products and services. 3. The Lean Startup Principles: This experiment is more than just theoretical inquiry. It is a first product. If it is successful, it allows a manager to get started with his or her campaign, enlisting early adopters, adding employees to each further experiment or iteration, and eventually starting to build a product. By the time that product is ready to be distributed widely. It will already have established customers. It will have solved real problems and offer detailed specifications for what needs to be built. Here are the five lean startup principles. Entrepreneurs are everywhere. You don't have to work in a garage to being a startup. Entrepreneurship is management. A startup is an institution, not just a product. So it requires management. A new kind of management specifically geared to its context. Validated learning. Startups exist not to make stuff, make money, or serve customers. They exist to learn how to build a sustainable business. This learning can be validated scientifically by running experiments that allow us to test each element of our vision. Innovation accounting, to improve entrepreneurial outcomes and to hold entrepreneurs accountable, we need to focus on the boring stuff. How to measure progress, how to set up milestones, how to prioritize work. This requires a new kind of accounting specific to startups. Build measure, learn. The fundamental activity of a startup is to turn ideas into products. Measure how customers respond, and then learn whether to pivot or persevere. All successful startup processes should be geared to accelerate that feedback loop. 4. From Innovation to a Potential Solution: When most people think of innovation, they picture brainstorming sessions, co-creation workshops, and hackathons replete with colorful posted stuck on every bear surface. Brainstorming new ideas can be heavy and fun. However, if your goal is to maximize impact, good solutions to your problem may already exist. Although they are among the most innovative companies on the planet, Google didn't invent web search and Facebook didn't invent social networking. What they did was dramatically improve upon the algorithms, user experience, and features of their predecessors. Similarly, before we leap to the conclusion that what's missing is a dose of inspiration. We should be open to the possibility that what's actually missing, maybe the perspiration required to improve, adapt, expand, operationalize, or replicate and existing intervention. The fallacy of the big idea is that it will change everything. A good idea is indeed important, but we are more likely to achieve our goals if we don't become too wet to any one solution, including our own. Instead of looking for the answer, think of each as an option to try it and allow data for performance in the real-world, serve as your guide. Now that you have a potential solution for your problem, remember that it is only the starting point, was the 1% inspiration. What comes next is the core of innovation, the 99% perspiration that turns a theoretical concept into cold hard results through experimentation and learning. 5. The Five Basic Building Blocs: In essence, Lean Startup applies the rigor of the scientific method to systematically test the biggest risk factors that might cause a product or service to fail. By doing so efficiently, you can deploy precious resources to their greatest effect. Don't think of this as a linear process, but rather a set of techniques to employ driven by the knowledge gained through experimentation. What's important is to stay focused on your goal, the honest about what you do and do not know at any stage, and constantly find ways to learn and improve. Let's see the five basic building blocks of Lean Startup. Identify assumptions. What must or write for your solution to work, and what could possibly go wrong. Build a minimum viable product or MVP. Run one or more experiments to test the riskiest assumptions as quickly and as cheaply as possible. Use validated learning, gathered data from your MVP and compare it to expected success criteria to determine what works and what doesn't. Build, measure, and learn. The strongest indicator for success is how quickly you can complete each iteration cycle, pivot or persevere on a regular basis. Step back to take a hard look at whether you are at the point of diminishing returns and need to consider a new tack or gaining traction and can proceed with more elaborate experiments. Let's discuss the first block, identify assumptions. 6. > Identify Assumptions: We may have lots of ideas about what might work. But how do we determine what will work in the face of complex problems and untested solutions in dynamic contexts, we can maximize our chance of success by systematically addressing risks. This begins with an inquiry adapted from the well-established scientific method to tease out the key assumptions that are likely to make or break our solution. By testing these potential points of failure upfront, we can increase our confidence before considering a greater investment. Risk. Therefore, firmly believes that startup success is not necessarily about having a great idea or even being in the right place at the right time. It is about following the right processes. Consequently, the Lean Startup model is based on the following one. Fast cycle times to focusing on what the customer wants without asking them. First, three, using scientific approaches to make decisions. When we land on a promising solution, it's natural to become emotionally attached. After all, we could have a way to alleviate enormous suffering or open the door to tremendous opportunity. On the other hand, naysayers may shoot you down. Senior, non-traditional approaches, impractical or even crazy. The trick is to find the balance between faith and dismissal. Let's call it cautious optimism. Before making a big investment in even the most exciting idea is printing to identify our underlying assumptions First, you might articulate these in the form of sentences that begin with, I believe, or answer tough questions such as, what could possibly go wrong that could cause this to fail? What has to go right for this to work? Will people want to buy US or adopted? Will they be enthusiastic enough to come back and bring their friends and family? Is it more cost-effective than existing alternatives? Does it lead to lasting positive change? This is the time to play devil's advocate. The same team members and stakeholders who helped to brainstorm new ideas can also help to identify key assumptions. Bringing on the skeptics and break out the sticky notes. They will see important angles that you might miss. Don't see this as shooting down your idea, but rather making it stronger. But don't go overboard. It's not necessary to delineate every last possibility that might cause a hitch. Most of those can be accommodated as they arise. What we're looking for are the biggest risk factors or killer assumptions that will determine success or failure. Start with the most obvious. Continue to ask hard questions along the way and allow others to emerge. As you learn. Let's discuss the second block, minimum viable product or MVP. 7. > Build an MVP: With a set of prioritized assumptions in hand, the next step is to formulate one or more hypotheses that will validate or invalidate them. While an assumption represents a general belief about what will happen, such as, I believe people will buy my product. A testable hypothesis precisely articulates a provisional theory that can be proven or disproven. Such as, if 20 people are offered my product for $10, then 60% will agree to buy it. This if-then structure is one way to make test the if peace and the expected result. The van piece explicit hypothesis should be objectively measurable so that success or failure is not a matter of debate. Each hypothesis can be tested through controlled experiments using one or more MVPs. Think of an MVP as the cheapest and quickest prototype or proxy that can enable learning. The faster we can learn, the less time and money we are likely to waste pursuing a fruitless path. An MVP consists of running a test and comparing the results to the original hypothesis to prove it right or wrong. If the test fails, the experiment can be tweaked using different messaging or targeting based on what was learned, then rerun. In some cases, the solution may require a more significant redesign or need to be scrapped altogether. When testing a hypothesis, observing actual behavior is far more accurate and revealing them asking hypothetical questions. This is where the MVP comes in. The aim is to create a simple prototype, mockup or simulated experience to see how people react. Are they confused, uninterested, or do they beg you for the product itself? Let's see the next block, validated learning. 8. > Use Validated learning: The process of validated learning looks at hard data on what works to confirm a hypothesis. It cuts through the emotion and politics that can often drive decision-making and instead focuses on empirically demonstrated evidence. Before deploying an MVP document, the key hypotheses you're testing, what data you will collect and most crucially, measurable success metrics. Establishing your criteria and advance will keep you honest and prevent confirmation bias. In which attachment to an idea can lead teams to find some evidence that it's working. These same criteria can also form the basis of an agreement with executives or funders on the results needed to unlock further investment. There's a crucial distinction between what the lean startup calls vanity metrics versus actionable metrics. Vanity metrics tend to reference cumulative or gross numbers as a measure of reach in the absence of any data on the cost entailed and ensuing impact achieved, they give no indication of whether an intervention is working or better than another alternative. With enough time or money. Reach can be increased through brute force. Big numbers may simply mean someone is good at telling a story and raising money. On the other hand, actionable metrics measure the value growth or impact being delivered at the unit level. In the business world, this is analogous to the unit economics, the profit made on each sale, as opposed to the aggregate users or revenues during the.com bubble of startups fueled by plentiful venture capital built up big audiences at a financial loss. Of course, they soon came crashing down as the fundamentals weren't there. These data points, Dr. feedback loops can be tested and improved through experiments and indicate whether a solution is on track. When the targets are achieved, scaling becomes far easier and more cost effective. What matters is how much he spent a train each person, what percentage of them get jobs, and whether they stay and grow in those jobs. If you can make the biggest difference in long-term employment with the fewest dollar spent, you will have a meaningful competitive advantage in a way to magnify impact. Actionable metrics must adhere to the three A's. Actionable. For a data report to be considered actionable, it must indicate a clear line of cause and effect, leaving no gray areas for success or failure to be erroneously attributed to the behavior of different departments accessible. Many reports are completely indecipherable, too many managers and employees who need to use them as a base for making decisions. Reports therefore, need to be as simple as possible, as widely accessible as possible to ensure that the entire team is on board auditable. The reports must contain true facts. For example, the data must be reliant on the real behavior of our interactions with the customers. Beyond trekking, learning for each MVP, consider replacing your traditional project dashboard that highlights vanity metrics with one that tracks progress against innovation metrics. This can rally stakeholders, ensure transparency, and build engagement. Let's go to the fourth blog. Build, measure and learn. 9. > Build, Measure, and Learn: Now that we've identified our hypotheses, built a minimally viable product, measure the results, and started to learn. It's time to do it all over again. After all, the build measure learn feedback loop is at the core of the Lean Startup model. We start by building an MVP or an experiment to test our assumption. Then we measure the data to validate or invalidate our hypothesis. Lastly, we learned from this. If the experiment was a success, we test the next riskiest assumption. If it was a failure, we improve the solution. We pivot to a new idea or a new problem. When we think fast feedback loops, we tend to focus on the early startup stage in which we are running rapid experiments to home in on product market fit for a new solution. This usually involves lots of lightweight MVPs and little scaffolding. But establishing the culture and infrastructure for ongoing Build Measure Learn cycles can also help drive continuous innovation and improve performance for more mature products and services. Let's discover the last block, pivot or persevere. 10. > Pivot or Persevere: After taking a few spins through the build measure learn cycle, how will you know when to claim success, keep going or acknowledge failure? On a regular basis, we need to step back and consider what we've learned and draw conclusions from our experiments. Knowing when we have hit the limits of our current path and need to pivot is essential to innovation. Identifying success is easy. After running tests and making improvements, have you met your success criteria that targets for conversion rate, referrals, changed behavior, cost structure, et cetera, that indicate your model will work. If so, it's time to take the next step. By starting small, you will have learned important lessons that make a bigger investment appropriate. Though of course, risks will remain. But don't think for a minute you are done experimenting. Rather, you're simply ready to move to the next stage of learning that incorporates a more realistic scenario, higher-fidelity solution, expanded audience. On the other hand, if you haven't reached your targets, but are making substantial headway productively learning through experiments and have additional ideas to test buckled down and persevere. However, don't fall victim to wishful thinking. Think of how microwave popcorn is made of Pop starts slowing down. If there is a gap of more than two seconds, you better hit stop or your popcorn and will burn. Deciding whether to pivot or persevere is similar. When the pace of learning and progress towards your success criteria has stalled for a while. It's a good time to re-evaluate. Is your learning resulting in new improvements that are just as or more promising than your previous ones. If a key assumption has been invalidated or your model continues to fall far short of your success criteria. It's time to pivot. In the Lean Startup, Eric defines a pivot as a change in strategy without a change in vision. Remember, loving the problem rather than the solution. Here's a good opportunity to practice. Stay focused on the goal you defined, but it may be time to consider a new path. Is there another promising solution that may use an alternative business model, positioning, technology, or delivery mechanism. If not, as another strategy to reach your goal, you may need to pivot and tackle an altogether different underlying problem. Deciding whether to pivot or persevere often entails a tough discussion that can affect people very personally. It's difficult not to have an emotional attachment to a solution you've been pouring your heart and soul into for weeks or months. Understandably, the tendency is to kick the can down the road hoping for an ever diminishing likelihood of better news. This is particularly true in the social sector, where almost anything we try as helping someone at least somewhat making it even harder to discontinuous solution that is showing a benefit. Scheduling regular meetings in advance about whether to pivot or persevere can ensure this important reflection happens while relieving the day-to-day pressure of continuous scrutiny. A couple of failed experiments in a row may just be a natural part of the cycle. Instilling the discipline to step back regularly, perhaps once every month or quarter will yield valuable perspective. Ask the question, what evidence do we have to indicate are presumed solution will solve the problem and achieve our goal. One approach reprieve, the London-based human rights advocacy organization has taken us to empower small teams to experiment with multiple approaches as they tackled big problems. As a counterbalance to this autonomy, the teams come together quarterly for a pivot or persevere session to review data and evaluate how well each effort is working. Having a regular mechanism to step back and assess, help prevent people from becoming too attached to their own programs. 11. Wrapping Up: The lean startup model is a global phenomenon faithfully used by individual entrepreneurs and huge companies around the world to astonishing results. The Lean Startup Business model is a novel approach to the development and innovation of new products. It focuses on speedy iteration, customer insight, creative vision and sizable ambition simultaneously, it is based on the following one fast cycle times two, focusing on what the customer wants without asking them first. Three, using scientific approaches to make decisions. Validated learning and fast experimentation are integral to the lean startup business method. By the time the first iteration of a product has been distributed, it will have amassed a few customers and provided a wealth of data concerning what is and is not working in reality. Rather than hypothesizing about what may work in the future, minimum viable products and VPs are essential to the lean startup method as they facilitate the process of validated learning as quickly as possible. Lean startups must measure their successes and failures optimally to excellent lean startup tools to effectively measure our results innovation, accounting and actionable metrics. The lean startup model approach is pivoting as a structured form of change, which is testing out a new hypothesis about the product business model or the engine of growth. This is the very heart of the lean startup business model. It's what makes companies who implement the methods so robust as if they need to pivot. They have all the tools validated, learning freedom to experiment and BP's innovation account and accountable metrics in which to do so with both dynamism and courage. Learn from your customers, build in their feedback to create a better product, be fast experiments to see what works and what does not always be prepared when the business does not work for you. Don't give up. Just try to find new ways to be successful.