Acclaim for THE LEAN STARTUP

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KANBAN DIAGRAM OF WORK AS IT PROGRESSES FROM STAGE TO STAGE (No bucket can contain more than three projects at a time.) Work on A begins. D and E are in development. F awaits validation. F is validated. D and E await validation. G, H, I are new tasks to be undertaken. B and C are being built. A completes development. B and C have been built, but under kanban, cannot be moved to the next bucket for validation until A, D, E have been validated. Work cannot begin on H and I until space opens up in the buckets ahead. I have implemented this system with several teams, and the
I have implemented this system with several teams, and the initial result is always frustrating: each bucket lls up, starting with the “validated” bucket and moving on to the “done” bucket, until it’s not possible to start any more work. Teams that are used to measuring their productivity narrowly, by the number of stories they are delivering, feel stuck. The only way to start work on new features is to investigate some of the stories that are done but haven’t been validated. That often requires nonengineering eorts: talking to customers, looking at split-test data, and the like. Pretty soon everyone gets the hang of it. This progress occurs in ts and starts at rst. Engineering may nish a big batch of work, followed by extensive testing and validation. As engineers look for ways to increase their productivity, they start to realize that if they include the validation exercise from the beginning, the whole team can be more productive. For example, why build a new feature that is not part of a splittest experiment? It may save you time in the short run, but it will take more time later to test, during the validation phase. The same logic applies to a story that an engineer doesn’t understand. Under the old system, he or she would just build it and nd out later what it was for. In the new system, that behavior is clearly counterproductive: without a clear hypothesis, how can a story ever be validated? We saw this behavior at IMVU, too. I once saw a junior engineer face down a senior executive over a relatively minor change. The engineer insisted that the new feature be splittested, just like any other. His peers backed him up; it was considered absolutely obvious that all features should be routinely tested, no matter who was commissioning them. (Embarrassingly, all too often I was the executive in question.) A solid process lays the foundation for a healthy culture, one where ideas are evaluated by merit and not by job title. Most important, teams working in this system begin to measure their productivity according to validated learning, not in terms of the production of new features. Hypothesis Testing at Grockit
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Acclaim for THE LEAN STARTUP
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—Geoffrey Moore, author, Crossing
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Copyright © 2011 by Eric Ries All
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Contents Cover Title Page Copyright
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Introduction S top me if you’ve h
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can be engineered by following the
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product vision. These supposed xes
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entrepreneurship, the movement has
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have neither. The second problem is
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shooting in the dark. We are relyin
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Part One VISION
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previous time in history. This has
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manufacturing is measured by the pr
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Every new version of a product, eve
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Products change constantly through
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2 DEFINE WHO, EXACTLY, IS AN ENTREP
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ecosystem regardless of company siz
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In 2009, a startup decided to try s
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accountable. In other words, cultiv
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signicant number of existing custom
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3 LEARN A s an entrepreneur, nothin
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ventures that had failed, and we we
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moving parts that we had to cut a l
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Out of desperation, we decided to t
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eight.” We had no idea how many i
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eliminate it has allowed lean compa
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trying to convince investors, emplo
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gathered suggested new experiments
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entrepreneur in residence. I’ve a
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FROM ALCHEMY TO SCIENCE The Lean St
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1. It had more accurate data about
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nicely. Yet despite all that work,
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second time? How many are willing t
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finding justified the significant e
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them to dry, which takes two to sev
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and innovation to make the agency m
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have the opportunity to closely mon
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Part Two STEER
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This Build-Measure-Learn feedback l
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objectively; they are also invaluab
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spent. In other words, Facebook als
Page 87 and 88: The problem with analogies like thi
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Page 91 and 92: To demonstrate, take a look at the
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Page 95 and 96: 6 TEST G roupon is one of the faste
Page 97 and 98: At IMVU, when we were raising money
Page 99 and 100: Most entrepreneurs approach a quest
Page 101 and 102: made a video. The video is banal, a
Page 103 and 104: sign up for a new service sight uns
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Page 107 and 108: with humans replicating pieces of t
Page 109 and 110: we are not even sure who the custom
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Page 113 and 114: of these cases, there is an easy so
Page 115 and 116: 7 MEASURE A t the beginning, a star
Page 117 and 118: changes we’ve made are related to
Page 119 and 120: For example, a startup might create
Page 121 and 122: INNOVATION ACCOUNTING AT IMVU Here
Page 123 and 124: This graph represents approximately
Page 125 and 126: might, we were getting straight C
Page 127 and 128: When I meet with those teams, there
Page 129 and 130: much more exciting. That’s why I
Page 131 and 132: important connection: “I have thi
Page 133 and 134: equirements of the product owner (t
Page 135 and 136: was judged by its ability to improv
Page 137: The questioning inspired the team t
Page 141 and 142: Even more important than reducing w
Page 143 and 144: from their actions. Human beings ar
Page 145 and 146: metrics, “auditable,” is so ess
Page 147 and 148: 8 PIVOT (OR PERSEVERE) E very entre
Page 149 and 150: 1. Customers would be interested en
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Page 153 and 154: @2gov had a slightly dierent set of
Page 155 and 156: leap-of-faith questions, David conc
Page 157 and 158: the U.S. population and has deliver
Page 159 and 160: pivot or persevere, whether to chan
Page 161 and 162: THE PIVOT OR PERSEVERE MEETING The
Page 163 and 164: 2. The game would grow using the vi
Page 165 and 166: not launched its current product, t
Page 167 and 168: A customer segment pivot is an espe
Page 169 and 170: incorrectly as a synonym for change
Page 171 and 172: Value Capture Pivot There are many
Page 173 and 174: similar to that of a successful com
Page 175 and 176: Part Three
Page 177 and 178: Start Your Engines Most of the deci
Page 179 and 180: accounting method described in Part
Page 181 and 182: is so named because it has a batch
Page 183 and 184: producers. Over time, that capabili
Page 185 and 186: they immediately would release a ne
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Small Batches in Education Not ever
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change, you could roll it out immed
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The original version had been years
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warehouses immediately shrink, as t
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This has enabled Alphabet Energy to
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THE STARTUP WAY
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companies had used their early succ
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We saw in Part Two how important it
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suited to testing the value hypothe
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and its speed is determined by a si
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Imagine that the rst company uses G
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those were all services the company
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ying out of the factory as fast as
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Chapter 6 emphasized the importance
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11 ADAPT W hen I was the CTO of IMV
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eward extreme polarization, that’
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what we have learned to get to work
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3. Why was it not lubricated sucien
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I used the example of engineering t
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When blame inevitably arises, the m
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sometimes will devolve into the Fiv
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game players in the world. More tha
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Tony relates, “As the new master
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and installation into Continuous In
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planning. In other words, it is com
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problems that aict large-batch deve
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Historically, QuickBooks had been b
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successful startup expect to have y
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Scarce but Secure Resources Divisio
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development.1 On the ip side, I kno
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spent debating the data because, in
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can we protect the internal startup
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are considered real and the innovat
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Once the market for the new product
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to train new team members in the ne
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It took a constant eort to consider
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online, and suggestions for how you
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extremely harmful and required the
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century, too, before people knew ab
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good system must be that of develop
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spawned to correct those deficienci
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test the impact of those factors on
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vision but not to abandon it. We wo
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yourself. The Lean Startup Wiki Not
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• Ash Maurya has emerged as a lea
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The idea of the Build-Measure-Learn
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350000-downloads-for-snapt
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93% log in at least once a month.
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more on Dropbox’s success, see
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you move the pile around between st
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article2/0,2817,35549,0
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Acknowledgments I owe a tremendous
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Telepathy, designed and built the w
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About the Author ERIC RIES is an en
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Acclaim for THE LEAN STARTUP

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