B4: The Road to Startup Success is Paved in Pivots, Kate Skavish
Lean Impact–Lean Startup for Mission-driven Organizations by Leanne Pittsford - The Lean Startup Conference 12/9/14
1. The A-Z’s of Lean
for Social Good
We’ll start in a few minutes…
Lean Impact www.leanimpact.org
2. What we’re talking about today
• Lean Startup –what is it and why should I care?
• The basic principles of Lean Startup
• Defining three key Lean concepts + examples
• Ways to get started
@leahtn #leanimpact
3. You’ll get the deck
• We’ll send you the deck after the webinar
• Archived on NetImpactwebsite
• You’ll get a copy of The Ultimate Dictionary of Lean for Social
Good
@leahtn #leanimpact
4. Who am I?
• I’m Leanne Pittsford or @lepitts, the co-founder
of Lean Impact, helping social
good organizations apply Lean Startup
principles
• I’m also the founder of Social Good Tech
Week & Lesbians Who Tech
• I’ve worked at tech startups and have
founded companies using Lean methods
• Fun fact: I run the blog “When You Work At
A Nonprofit”
@lepitts #leanimpact
5. The A-Z’s of Lean
for Social Good
Let’s get started…
Lean Impact www.leanimpact.org
6. What do we mean by “Lean”?
The old definition:
Having no money
Doing more with less
@lepitts #leanimpact
7. What do we mean by “Lean”?
The new definition:
Lean organizations develop products, services and campaigns by
starting small, soliciting user feedback along the way, ensuring they
are continually developing something that users want,
and pivoting if necessary.
The overall goal is to reduce waste:
wasted time, wasted effort, and wasted money.
@lepitts #leanimpact
8. Where Lean came from
Eric Ries’ book The Lean Startup
@lepitts #leanimpact
9. But actually, that came from…
Lean manufacturing, from Toyota
@lepitts #leanimpact
10. The old way: startups
• Have an idea
• Start working on it, behind closed doors
• Take funding to build it
• Take 18-24 months to finish it
• Release it to the world
• Expect people to buy it
Idea Build Launch,
Measure,
Learn
@leanimpact / #leanimpact @lepitts
11. The old way: startups
• Have an idea
• Start working on it, behind closed doors
• Take funding to build it
• Take 18-24 months to finish it
• Release it to the world
• Expect people to buy it
Idea Build Launch,
Measure,
Learn
Dud
(90% of the
time)
@lepitts #leanimpact
12. The old way: startups
• Have an idea
• Start working on it, behind closed doors
• Take funding to build it
• Take 18-24 months to finish it
• Release it to the world
• Expect people to buy it
Idea Build Launch,
Measure,
Learn
Customer feedback
comes here
Dud
(90% of the
time)
@lepitts #leanimpact
13. The old way: social good
• Have an idea for a program, service, campaign, etc.
• Put staff on it
• Take many months to finish it
• Release the pilot to the world
• Expect it to be successful
Feedback comes here
Idea Build Launch,
Measure,
Learn
??
@lepitts #leanimpact
14. The new way: startups
• Have an idea
• Create a Minimum Viable Product (MVP)
• Get it in the hands of customers
• Gather feedback
• Make refinements
• And on and on
User Feedback
Idea Build
Measure,
Learn
User Feedback
Build
Measure,
Learn
@lepitts #leanimpact
15. The new way: startups
• Have an idea
• Create a Minimum Viable Product (MVP)
• Get it in the hands of customers
• Gather feedback
• Make refinements
• And on and on
@lepitts #leanimpact
16. The new way: startups
• Have an idea
• Create a Minimum Viable Product
• Get it in the hands of customers
• Gather feedback
• Make refinements
• And on and on
Build
Measure
Learn
User
Feedback
@lepitts #leanimpact
17. Basically…
BUILD
Start with a Minimum Viable Product (MVP) that you can get
into the hands of customers quickly
MEASURE
Use metrics see how customers use your MVP
LEARN
Learn from these results. Either continue on the same
course, continue with some modifications, or pivot.
@lepitts #leanimpact
18. Why should social good
organizations care?
• Time and money are at a premium
• You can’t afford to waste months on something that may
or may not work
• You need to find out quickly if something is viable, so you
can either pursue it or ditch it
@lepitts #leanimpact
19. Defining Three Key Lean Concepts
Minimum Viable Product
Get Out Of The Building
Pivot
@lepitts #leanimpact
20. M is for…
Minimum Viable
Product
Lean Impact www.leanimpact.org
21. What is a Minimum Viable
Product?
A Minimum Viable Product (MVP) is an early version of a
product or service, and contains only the bare minimum
features that allow it to be deployed to early users.
It means:
- Bare bones
- Not pretty
- Manual
@lepitts #leanimpact
22. Fasal
• SMS-based program designed to give farmers in India
current market prices, so they can sell their crops for a
profit
• Started with a Minimum Viable Product
@lepitts #leanimpact
23. Fasal
• Final product vision: SMS messages automatically sent
to users
• MVP version: One of the team members manually sent
SMS price alerts to early users
• Final product vision: Voice response technology would
send daily automated phone calls with price updates
• MVP version: One of the team members recorded the
“automated” voice
@lepitts #leanimpact
24. Fasal
• The Fasal team studied how early users used the service
• Only when they were sure that people would use the
service, did they invest in building out the full vision
@lepitts #leanimpact
25. Key Elements of an MVP
• No cost / low cost
• Easy set-up and maintenance
• Measurable
@lepitts #leanimpact
26. Why create an MVP?
It allows you to test your assumptions:
• See if there’s a need for it, before you invest in something
• Find out if it’s a viable idea worth your team’s time
• Eliminate wasted time
• Eliminate wasted money
• If people will use it, THEN start building it out
@lepitts #leanimpact
27. Gateway Green
• Gateway Green is a project in Portland, Oregon to turn a
stretch of unused land into a multi-use bike park.
@lepitts #leanimpact
28. Gateway Green
• The assumption: residents of Portland want a multi-use
outdoor space for recreation and preservation
• The MVP: an Indiegogo campaign, to see if there is public
support for the project
@lepitts #leanimpact
29. Gateway Green
• Metrics: funds raised + funders
• The result:
• $123,880 raised
• 723 funders
“This project will need millions of dollars to be fully
built out. While the crowdfunding campaign will
raise just a small chunk of that, backers see it more
as an opportunity to show the powers-that-be that
the public is behind this project and that it's worth
putting real money into.” – BikePortland.org
@lepitts #leanimpact
30. G is for…
Get Out Of The
Building
Lean Impact www.leanimpact.org
31. What is Getting Out of the
Building?
Get Out of the Building refers to the idea that to create a
valuable product, service or campaign, you need to talk to
the people who will potentially use it.
@lepitts #leanimpact
32. Let’s talk about assumptions
We base a lot of our work on assumptions
(it’s not just you, everyone does it)
A few assumptions:
• X group needs more information on Y (it’s an information problem)
• Our donors want to hear more about X issue (we know our donors)
• The best thing to help X group, is Y service (we know how to help
them)
@lepitts #leanimpact
33. “No facts exist inside the building.
Only opinions.”
- Steve Blank, Author,
The Startup Owner’s Manual
@lepitts #leanimpact
34. Getting out of the building
• Putting the product or service in front of the people who
will actually use it
• What happens when they use it
What it’s not:
• Online surveys
• Phone calls
• Polls
• “Would you use this?”
@lepitts #leanimpact
35. Why get out of the building?
By getting outside the building, you can get actual,
actionable feedback, and minimize the risk that a product,
service, campaign or program will fail by verifying your
theories with actual customers.
@lepitts #leanimpact
36. IDEO.org
• Creating a financial service program in Mexico
• Started with a Minimum Viable Product
@lepitts #leanimpact
37. IDEO.org
• Mocked up an ATM, using an iPad and plastic casing to
create a “working” prototype.
• Created a mockup “program” for the software using
Keynote presentation software.
• Created sample brochures, manual SMS alerts
@lepitts #leanimpact
38. IDEO.org
“Our concepts evolved a great deal by walking the Mexicans
we met with through our prototypes and hearing their
reactions. We were able to find out how quickly someone
understood the idea, whether a certain feature made sense,
and figure out which elements needed to change. “
- Patrice Martin, IDEO
@lepitts #leanimpact
39. The Conceptual Four Walls
It can also refer to looking beyond the conceptual “four
walls” of your industry to learn from other industries and
things they’re doing.
Ways to get outside the building:
• Read blogs about technology or innovation
• Read books about entrepreneurship
• Watch TED talks
• Go to a startup event or meetup
• Attend a Startup Weekend event
@lepitts #leanimpact
40. P is for…
Pivot
Lean Impact www.leanimpact.org
41. What is Pivoting?
Pivot means significantly changing the direction of a product
or service strategy. Organizations will pivot when a current
idea is not working or not getting traction, or when the MVP
needs significant improvement.
@lepitts #leanimpact
42. Lean Impact
• Circa January 2013
• Assumption: People will pay $20 for an online conference, to learn
about Lean Startup in the social good space
• Minimum Viable Product:
• Lining up a few speakers
• Basic website
• Eventbrite registration
@lepitts #leanimpact
43. Lean Impact
• We sold 4 tickets
• Assumption: DISPROVED
@lepitts #leanimpact
44. Lean Impact
• Getting Out of the Building:
• Reached out to potential attendees
• Google Hangout feedback sessions
• We learned that people needed an in-person experience
@lepitts #leanimpact
45. Lean Impact
• We pivoted:
• Planned launch parties in New York, DC and San Francisco
• Each party had over 500 registrants and 300 people through
the door
• By creating an MVP , we saved money and had our answer in 60
days
• By Pivoting, we were able to create something that provided value
to our audience
@lepitts #leanimpact
49. In Summary
• Using Lean principles:
• Is less risk than investing months on something
• Is easy to try, using the approach and tools here
• Gives you quick data so you know whether to move
forward
Most people are quick to stop you before you get started,
but hesitant to get in the way if you’re moving!
@lepitts #leanimpact
50. Resources & Programs
• Read The Lean Startup by Eric Ries
• Take a course
• Udemy – The Lean Startup Course
• Acumen Lean for Social Impact
• Adopt a testing mindset
@lepitts #leanimpact
51. Further Reading
• The Ultimate Dictionary of Lean for Social Good –
leanimpact.org
• What would The Lean Startup Look Like for Nonprofits?
By Sasha Dichter
• The Lean Startup by Eric Ries
• Don’t Overthink It by Leah Neaderthal
@lepitts #leanimpact