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LEAN STARTUP
BRIDGING STRATEGY &
TACTICS
JONATHAN BERTFIELD
SNR FACULTY LEAN STARTUP CO
jonathan@leanstartup.co
@berters @leanstartup
JONATHANBERTFIELD
20+ YEARS EXPERIENCE DRIVING GROWTH, INNOVATION AND
PRODUCT DEVELOPMENT AT ENTERPRISES AND STARTUPS
US DEPT. OF DEFENSE, MERCK, MICROSOFT, LEGAL ZOOM, AXA,
USAA, PEARSON, AMERICAN PRESS INSTITUTE, SCHOLASTIC,
SESAME WORKSHOP, ASSOCIATED PRESS, NEWS CORP.,
BUSINESS INSIDER
@BERTERS @LEANSTARTUP
LEAN STARTUP CO - SENIOR FACULTY
SPINNAKER CONSULTING - PARTNER
GENERAL ASSEMBLY - ENTERPRISE
INSTRUCTOR
this is what i do
MEASURE
BUILD
LEARN
IDEAS
CODE
DATA
RAPID ITERATION
EXPERIMENT
RISKY
ASSUMPTION
SYNTHESIZE
RAPID ITERATION
RISKY ASSUMPTIONS
STRATEGIC ALIGNMENT
+
WHAT IS
LEAN STARTUP?
ENTREPRENEURSHIP
AS A SCIENCE
HIRING ELON IS
NOT THE ANSWER
NO CRYSTAL BALL
OUTCOMES
OVER
OUTPUT
A METHOD TO SYSTEMATICALLY
ADDRESS UNCERTAINTY
THROUGH RAPID ITERATION
AND MARKET LEARNING
LEAN STARTUP IS MANAGEMENT
SEARCHING EXECUTING
UNCERTAINTY
FEASIBILITY
DESIRABILITY
VIABILITY
MEASURE
BUILD
LEARN
IDEAS
CODE
DATA
RAPID ITERATION
LEARNING MOMENTUM
RISK
TIME
RELEASE
RISK
TIME
RELEASE
GUESS
GUESS
GUESS
GUESS
GUESS
FACT
FACT
FACT
FACT
GUESS
A METHOD TO SYSTEMATICALLY
ADDRESS UNCERTAINTY
THROUGH RAPID ITERATION
AND MARKET LEARNING
LEAN STARTUP IS MANAGEMENT
STRATEGY(FROM GREEK ΣΤΡΑΤΗΓΊΑ STRATĒGIA, "ART
OF TROOP LEADER; OFFICE OF GENERAL, COMMAND, GENERALSHIP")
IS A HIGH LEVEL PLAN TO ACHIEVE ONE OR MORE
GOALS UNDER CONDITIONS OF UNCERTAINTY.
CORPORATE
STRATEGY
Consolidate holdings to
focus on education
Build a Smoke-free world
Meet global digital
threats head on
PORTFOLIO
STRATEGY
Divest 50% of non
Education holdings over
2yr period
70% of net new revenue
from transformation /
Horizon 3
PRODUCT
STRATEGY
Capacity to handle
language needs in EMEA
markets
LEAN STARTUP TOOLKIT
LIKELIHOOD OF OUTCOMES &
IMPACT
=
SPEED OF LEARNING
X
QUALITY OF LEARNING
TOOLKIT
The Business Model Canvas
designed by: Strategyzer AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
strategyzer.com
Revenue Streams
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Cost Structure
Customer Relationships
Designed by: Date: Version:Designed for:
ChannelsKey Resources
CANVASES
ASSUMPTIONS
EXPERIMENT HYPOTHESIS
MVP
We believe that customers
will want more of our
awesome widgets if
interaction with tech
STRATEGIC HYPOTHESIS
We believe that
we can reduce
our call volume…
TOOLKIT
The Business Model Canvas
designed by: Strategyzer AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
strategyzer.com
Revenue Streams
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Cost Structure
Customer Relationships
Designed by: Date: Version:Designed for:
ChannelsKey Resources
EXPOSE UNCERTAINTY
PRIORITIZE UNCERTAINTY
MANAGE UNCERTAINTY
FRAME UNCERTAINTY
We believe that customers
will want more of our
awesome widgets if
interaction with tech
We believe that
we can reduce
our call volume…
BUSINESS MODEL CANVAS
The Business Model Canvas
designed by: Strategyzer AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
strategyzer.com
Revenue Streams
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Cost Structure
Customer Relationships
Designed by: Date: Version:Designed for:
ChannelsKey Resources
BUSINESS MODEL CANVAS - UBER
The Business Model Canvas
designed by: Strategyzer AG
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
Revenue Streams
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Cost Structure
Customer Relationships
Designed by: Date: Version:Designed for:
ChannelsKey Resources
Fast access
to cheap
rides
Social media
Temp non
driving Urban
Car owners
Car owners
who need
additional $
Flexible/Part
time schedule
AutomatedDev Teams
Customer Acquisition
Tech platform
Drivers
Map providers
Investors
Traffic Acquisition
Tech infrastructure
S&M, G&A
Urban Non-Car
owners
Mobile App - P
Mobile App - D
Ratings
per mile rides
Surge pricing
Pool, X, Black
Customer Support
Drivers w. cars
Leasing Co’s
CRITICAL ASSUMPTIONS
WHAT ARE THE GUESSES YOU HAVE
MADE THAT, IF PROVEN WRONG,
WILL UNDERMINE YOUR VISION?
ASSUMPTIONS
‣ KNOWN VS UNKNOWN
‣ HIGH RISK VS LOW RISK
‣ KILL VS NOT KILL
LEAP OF FAITH
CRITICAL ASSUMPTIONS
(Run
experiments)
(dig deeper)
HIGH RISK
LOW RISK
UNKNOWNKNOWN
STAY IN THE LOOP
MINIMAL VIABLE PRODUCT
HOW - METHOD
EXPERIMENTSTOCOLLECTTHE
MAXIMUMVALIDATEDLEARNING
FROMCUSTOMERSWITHTHE
LEASTAMOUNTOFDEVELOPMENT
M V P
HOW - METHOD
PERSEVERE
VS
PIVOT
VS
KILL
HY-POTH-E-SIS
A SUPPOSITION OR PROPOSED EXPLANATION
MADE ON THE BASIS OF LIMITED EVIDENCE AS A
STARTING POINT FOR FURTHER INVESTIGATION.







STATEMENT OF OUR BELIEF
+
PREDICTION OF A RESULT
EXPERIMENT HYPOTHESIS
▸We believe that…
▸[doing this]
▸for [these people]
▸will [achieve this outcome].
▸We will know this is true when
▸we see [experiment outcome]
▸by [specific timeframe]
▸We believe that…
▸seeding a small network of drivers
▸for a single neighborhood in New York
▸will make it easier to grab a taxi at peak
time
▸We will know this is true when
▸we see 20 drivers with 20 rides/day
▸by 1 month from now
EXPERIMENT HYPOTHESIS
▸We believe that…
▸building an app to hail taxis
▸for urban professionals
▸will massively disrupt public transportation
▸We will know this is true when
▸we see drivers signing up
▸by 2 years from now
STRATEGIC HYPOTHESIS
‣ WRITE A 1-2 SENTENCE STATEMENT
OF YOUR PRODUCT STRATEGY
‣ WE BELIEVE THAT…..
FRAME YOUR UNCERTAINTY
‣ IDENTIFY THE TOP 3 ASSUMPTIONS
BUILT INTO YOUR VISION
‣ WE BELIEVE THAT…..
PRIORITIZE UNCERTAINTY
‣ GRADE YOUR TOP 3 ASSUMPTIONS
ON THEIR ALIGNMENT TO PRODUCT
STRATEGY
PRIORITIZE UNCERTAINTY
HYPOTHESIS
▸ We believe that…
▸ [doing this]
▸ for [these people]
▸ will [achieve this outcome].
▸ We will know this is true when
▸ we see [business outcome]
▸ by [specific timeframe]
CREATE YOUR STRATEGIC
HYPOTHESIS FOR THE
PROJECT YOU ARE WORKING
ON
HYPOTHESIS
▸ We believe that…
▸ [doing this]
▸ for [these people]
▸ will [achieve this outcome].
▸ We will know this is true when
▸ we see [business outcome]
▸ by [specific timeframe]
CREATE UP TO 3 EXPERIMENT
HYPOTHESES THAT RELATE TO
YOUR STRATEGIC HYPOTHESIS
LIKELIHOOD OF OUTCOMES &
IMPACT
=
SPEED OF LEARNING
X
QUALITY OF LEARNING
LEAN STARTUP
INTRODUCTION
JONATHAN BERTFIELD
jonathan@leanstartup.co
training@leanstartup.co
@berters @ leanstartup

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Connecting Strategy to Execution, Jonathan Bertfield, Senior Faculty, Lean Startup Co.

  • 1. LEAN STARTUP BRIDGING STRATEGY & TACTICS JONATHAN BERTFIELD SNR FACULTY LEAN STARTUP CO jonathan@leanstartup.co @berters @leanstartup
  • 2. JONATHANBERTFIELD 20+ YEARS EXPERIENCE DRIVING GROWTH, INNOVATION AND PRODUCT DEVELOPMENT AT ENTERPRISES AND STARTUPS US DEPT. OF DEFENSE, MERCK, MICROSOFT, LEGAL ZOOM, AXA, USAA, PEARSON, AMERICAN PRESS INSTITUTE, SCHOLASTIC, SESAME WORKSHOP, ASSOCIATED PRESS, NEWS CORP., BUSINESS INSIDER @BERTERS @LEANSTARTUP LEAN STARTUP CO - SENIOR FACULTY SPINNAKER CONSULTING - PARTNER GENERAL ASSEMBLY - ENTERPRISE INSTRUCTOR
  • 4.
  • 6.
  • 8.
  • 10.
  • 13. HIRING ELON IS NOT THE ANSWER
  • 16. A METHOD TO SYSTEMATICALLY ADDRESS UNCERTAINTY THROUGH RAPID ITERATION AND MARKET LEARNING LEAN STARTUP IS MANAGEMENT
  • 18.
  • 19.
  • 20.
  • 21.
  • 28. A METHOD TO SYSTEMATICALLY ADDRESS UNCERTAINTY THROUGH RAPID ITERATION AND MARKET LEARNING LEAN STARTUP IS MANAGEMENT
  • 29. STRATEGY(FROM GREEK ΣΤΡΑΤΗΓΊΑ STRATĒGIA, "ART OF TROOP LEADER; OFFICE OF GENERAL, COMMAND, GENERALSHIP") IS A HIGH LEVEL PLAN TO ACHIEVE ONE OR MORE GOALS UNDER CONDITIONS OF UNCERTAINTY.
  • 30. CORPORATE STRATEGY Consolidate holdings to focus on education Build a Smoke-free world Meet global digital threats head on
  • 31. PORTFOLIO STRATEGY Divest 50% of non Education holdings over 2yr period 70% of net new revenue from transformation / Horizon 3
  • 34. LIKELIHOOD OF OUTCOMES & IMPACT = SPEED OF LEARNING X QUALITY OF LEARNING
  • 35. TOOLKIT The Business Model Canvas designed by: Strategyzer AG The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com Revenue Streams Customer SegmentsValue PropositionsKey ActivitiesKey Partners Cost Structure Customer Relationships Designed by: Date: Version:Designed for: ChannelsKey Resources CANVASES ASSUMPTIONS EXPERIMENT HYPOTHESIS MVP We believe that customers will want more of our awesome widgets if interaction with tech STRATEGIC HYPOTHESIS We believe that we can reduce our call volume…
  • 36. TOOLKIT The Business Model Canvas designed by: Strategyzer AG The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com Revenue Streams Customer SegmentsValue PropositionsKey ActivitiesKey Partners Cost Structure Customer Relationships Designed by: Date: Version:Designed for: ChannelsKey Resources EXPOSE UNCERTAINTY PRIORITIZE UNCERTAINTY MANAGE UNCERTAINTY FRAME UNCERTAINTY We believe that customers will want more of our awesome widgets if interaction with tech We believe that we can reduce our call volume…
  • 37. BUSINESS MODEL CANVAS The Business Model Canvas designed by: Strategyzer AG The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com Revenue Streams Customer SegmentsValue PropositionsKey ActivitiesKey Partners Cost Structure Customer Relationships Designed by: Date: Version:Designed for: ChannelsKey Resources
  • 38. BUSINESS MODEL CANVAS - UBER The Business Model Canvas designed by: Strategyzer AG This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Revenue Streams Customer SegmentsValue PropositionsKey ActivitiesKey Partners Cost Structure Customer Relationships Designed by: Date: Version:Designed for: ChannelsKey Resources Fast access to cheap rides Social media Temp non driving Urban Car owners Car owners who need additional $ Flexible/Part time schedule AutomatedDev Teams Customer Acquisition Tech platform Drivers Map providers Investors Traffic Acquisition Tech infrastructure S&M, G&A Urban Non-Car owners Mobile App - P Mobile App - D Ratings per mile rides Surge pricing Pool, X, Black Customer Support Drivers w. cars Leasing Co’s
  • 39.
  • 40. CRITICAL ASSUMPTIONS WHAT ARE THE GUESSES YOU HAVE MADE THAT, IF PROVEN WRONG, WILL UNDERMINE YOUR VISION?
  • 42. ‣ KNOWN VS UNKNOWN ‣ HIGH RISK VS LOW RISK ‣ KILL VS NOT KILL LEAP OF FAITH
  • 44. STAY IN THE LOOP
  • 45. MINIMAL VIABLE PRODUCT HOW - METHOD EXPERIMENTSTOCOLLECTTHE MAXIMUMVALIDATEDLEARNING FROMCUSTOMERSWITHTHE LEASTAMOUNTOFDEVELOPMENT M V P
  • 47.
  • 49. HY-POTH-E-SIS A SUPPOSITION OR PROPOSED EXPLANATION MADE ON THE BASIS OF LIMITED EVIDENCE AS A STARTING POINT FOR FURTHER INVESTIGATION.
 
 
 

  • 50. STATEMENT OF OUR BELIEF + PREDICTION OF A RESULT
  • 51. EXPERIMENT HYPOTHESIS ▸We believe that… ▸[doing this] ▸for [these people] ▸will [achieve this outcome]. ▸We will know this is true when ▸we see [experiment outcome] ▸by [specific timeframe]
  • 52. ▸We believe that… ▸seeding a small network of drivers ▸for a single neighborhood in New York ▸will make it easier to grab a taxi at peak time ▸We will know this is true when ▸we see 20 drivers with 20 rides/day ▸by 1 month from now EXPERIMENT HYPOTHESIS
  • 53. ▸We believe that… ▸building an app to hail taxis ▸for urban professionals ▸will massively disrupt public transportation ▸We will know this is true when ▸we see drivers signing up ▸by 2 years from now STRATEGIC HYPOTHESIS
  • 54. ‣ WRITE A 1-2 SENTENCE STATEMENT OF YOUR PRODUCT STRATEGY ‣ WE BELIEVE THAT….. FRAME YOUR UNCERTAINTY
  • 55. ‣ IDENTIFY THE TOP 3 ASSUMPTIONS BUILT INTO YOUR VISION ‣ WE BELIEVE THAT….. PRIORITIZE UNCERTAINTY
  • 56. ‣ GRADE YOUR TOP 3 ASSUMPTIONS ON THEIR ALIGNMENT TO PRODUCT STRATEGY PRIORITIZE UNCERTAINTY
  • 57. HYPOTHESIS ▸ We believe that… ▸ [doing this] ▸ for [these people] ▸ will [achieve this outcome]. ▸ We will know this is true when ▸ we see [business outcome] ▸ by [specific timeframe] CREATE YOUR STRATEGIC HYPOTHESIS FOR THE PROJECT YOU ARE WORKING ON
  • 58. HYPOTHESIS ▸ We believe that… ▸ [doing this] ▸ for [these people] ▸ will [achieve this outcome]. ▸ We will know this is true when ▸ we see [business outcome] ▸ by [specific timeframe] CREATE UP TO 3 EXPERIMENT HYPOTHESES THAT RELATE TO YOUR STRATEGIC HYPOTHESIS
  • 59. LIKELIHOOD OF OUTCOMES & IMPACT = SPEED OF LEARNING X QUALITY OF LEARNING