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 written, illustrated
 and performed by
 Claudio Perrone
Most startups fail
                     will Yours?
If we keep acting like most entrepreneurs…
… less than 3 people in this room will
Create successful companies*




“(*) The only statistics you can
 trust are those you falsified
 yourself
 --(often falsely attributed to) Winston Churchill
July 2009
“July 2009 was the wettest July
on record in Ireland”
“that month, a new life rocked my world…”
“that month, I left an exceptional company
I helped create from scratch”
“From the very beginning, I had embraced
Agile development to grow a
world-class software organization”
We continuously improved our
development processes…
We crafted opinionated software…


“The best software
has a vision.
The best software
takes sides.
…
Decide what
your vision is and run with it.”
-- 37 signals
We won awards
and respect…
we could almost
touch the sky…
Almost
“July 2009 was the wettest July
on record in Ireland”
I’ll remember it
  as the month
matteo was born
But it is also the month
I had to let go of a dream
… so I became a Lean & Agile consultant!
On my first mission, a cio asked me a
question that haunts me to this day…
“If you were so smart,
   why did you fail?”
I became increasingly intrigued by the rise
of Lean and its influence in the agile circles
Lean is heavily inspired by Toyota’s
breakthroughs in “operational excellence”
Using Lean and agile, I brought performance
improvements to many clients around Europe
But that old
question still
  remained
unanswered…
… Until one day
I entered a new world
... A world that recognized the extraordinary
challenges I once faced




 “      A startup is a human institution
        designed to create new products
        and services under conditions of
        extreme uncertainty.
                                    --- Eric Ries
... A world that showed how Searching for
a business model is different from
executing a validated one




 “      A startup is a temporary
        organization used to search for
        a repeatable and scalable
        business model.
                                 --- Steve Blank
It gave me a path to create a sustainable
business around products that customers want

                      Customer development                                   data,
              PROBLEM/            PRODUCT/          SCALE                     feedback,
                                   MARKET
                                                                             insights
              SOLUTION
                 FIT                 FIT


                                             Customer          Company
  Customer               Customer
                                      stop   creation   stop
                                                               building
  discovery    stop      validation




                                                                           Agile development
              Pivot


                                             hypothesis,
                                             experiments,
                                             insights




                       Problem: Unknown                                   solution: Unknown
... A path characterized by frequent scientific
experiments…




      Learn
                                                                                Build
  (establish an
  hypothesis)
                                                                              (Build an experiment
                                                                              to test that hypothesis)




                                         Measure
           (Determine a quantitative or qualitative method to evaluate that hypothesis.)
… To accelerate the rate of learning…




      Learn
                                      idea                   Build
  (whether to pivot
  or persevere)                                           (Turn ideas into product)




                                                             (often a series of
                                                             MVPs)


                      data
                                                       Product

                                 Measure
                             (How customers respond)
… And measure real progress towards success



           Acquisition        How do users find you?

           Activation       Do users have a great first experience?


          retention
                              Do users come back?


           revenue            How do you make money?

           referral            Do user tell others?


       ( see Dave McClure
       “Pirate” metrics)



                                            Cohort analysis
Today
I document my business model(s) explicitly


                    Solution
     Top 3                        Unique        Unfair      Customer
     Problems                     Value         Advantage   Segments
                                  Proposition




                    Key metrics                 Channels
     Existing                                               Early
     alternatives                                           adopters




     Cost structure                      Revenue streams




       www.leancanvas.com
my vision is built on opinions untested
assumptions
… which I systematically validate with
experiments…
… that force me to “get out of the building”
…and gather data to verify whether my
actions affect customer behavior


   Hypotheses/                    IN PROGRESS
      GOALs                                                           DONE       VALIDATED
                                                                                 LEARNING


     BACKLOG     SELECTED   DESIGN/BUILD   PARTIAL     VALIDATE        FULL        VERIFY
                            EXPERIMENTS    ROLLOUT   QUALITATIVELY   ROLLOUT   QUANTITATIVELY

                                   DONE
                                                                                        DONE
I validate my solutions, OFTEN with low fidelity MVPs
… and Activate enthusiastic earlyvangelists with a
glimpse of a future that will come
What will
your future
 look like?
“   Smart entrepreneurs
    don’t dream of success.
    They create the conditions
    to inevitably converge to it.
                         --- Me (1967 - )
Thank	
  you!	
  

                                 Claudio	
  Perrone	
  




claudio@agilesensei.com	
  
www.agilesensei.com	
  
www.twi:er.com/agilesensei	
  

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Lean Startup for Smart Entrepreneurs

  • 1. @agilesensei www.agilesensei.com written, illustrated and performed by Claudio Perrone
  • 2. Most startups fail will Yours?
  • 3. If we keep acting like most entrepreneurs…
  • 4. … less than 3 people in this room will Create successful companies* “(*) The only statistics you can trust are those you falsified yourself --(often falsely attributed to) Winston Churchill
  • 6. “July 2009 was the wettest July on record in Ireland”
  • 7. “that month, a new life rocked my world…”
  • 8. “that month, I left an exceptional company I helped create from scratch”
  • 9. “From the very beginning, I had embraced Agile development to grow a world-class software organization”
  • 10. We continuously improved our development processes…
  • 11. We crafted opinionated software… “The best software has a vision. The best software takes sides. … Decide what your vision is and run with it.” -- 37 signals
  • 12. We won awards and respect…
  • 13. we could almost touch the sky…
  • 15. “July 2009 was the wettest July on record in Ireland”
  • 16. I’ll remember it as the month matteo was born
  • 17. But it is also the month I had to let go of a dream
  • 18. … so I became a Lean & Agile consultant!
  • 19. On my first mission, a cio asked me a question that haunts me to this day…
  • 20. “If you were so smart, why did you fail?”
  • 21. I became increasingly intrigued by the rise of Lean and its influence in the agile circles
  • 22. Lean is heavily inspired by Toyota’s breakthroughs in “operational excellence”
  • 23. Using Lean and agile, I brought performance improvements to many clients around Europe
  • 24. But that old question still remained unanswered…
  • 26. I entered a new world
  • 27. ... A world that recognized the extraordinary challenges I once faced “ A startup is a human institution designed to create new products and services under conditions of extreme uncertainty. --- Eric Ries
  • 28. ... A world that showed how Searching for a business model is different from executing a validated one “ A startup is a temporary organization used to search for a repeatable and scalable business model. --- Steve Blank
  • 29. It gave me a path to create a sustainable business around products that customers want Customer development data, PROBLEM/ PRODUCT/ SCALE feedback, MARKET insights SOLUTION FIT FIT Customer Company Customer Customer stop creation stop building discovery stop validation Agile development Pivot hypothesis, experiments, insights Problem: Unknown solution: Unknown
  • 30. ... A path characterized by frequent scientific experiments… Learn Build (establish an hypothesis) (Build an experiment to test that hypothesis) Measure (Determine a quantitative or qualitative method to evaluate that hypothesis.)
  • 31. … To accelerate the rate of learning… Learn idea Build (whether to pivot or persevere) (Turn ideas into product) (often a series of MVPs) data Product Measure (How customers respond)
  • 32. … And measure real progress towards success Acquisition How do users find you? Activation Do users have a great first experience? retention Do users come back? revenue How do you make money? referral Do user tell others? ( see Dave McClure “Pirate” metrics) Cohort analysis
  • 33. Today
  • 34. I document my business model(s) explicitly Solution Top 3 Unique Unfair Customer Problems Value Advantage Segments Proposition Key metrics Channels Existing Early alternatives adopters Cost structure Revenue streams www.leancanvas.com
  • 35. my vision is built on opinions untested assumptions
  • 36. … which I systematically validate with experiments…
  • 37. … that force me to “get out of the building”
  • 38. …and gather data to verify whether my actions affect customer behavior Hypotheses/ IN PROGRESS GOALs DONE VALIDATED LEARNING BACKLOG SELECTED DESIGN/BUILD PARTIAL VALIDATE FULL VERIFY EXPERIMENTS ROLLOUT QUALITATIVELY ROLLOUT QUANTITATIVELY DONE DONE
  • 39. I validate my solutions, OFTEN with low fidelity MVPs
  • 40. … and Activate enthusiastic earlyvangelists with a glimpse of a future that will come
  • 41. What will your future look like?
  • 42. Smart entrepreneurs don’t dream of success. They create the conditions to inevitably converge to it. --- Me (1967 - )
  • 43. Thank  you!   Claudio  Perrone   claudio@agilesensei.com   www.agilesensei.com   www.twi:er.com/agilesensei