Acclaim for THE LEAN STARTUP

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http://ericri.es/pdflow The Toyota Way by Jeffrey Liker. http://ericri.es/thetoyotaway Lean Thinking: Banish Waste and Create Wealth in Your Corporation, Revised and Updated by James P. Womack and Daniel T. Jones. http://ericri.es/LeanThinking The People’s Tycoon: Henry Ford and the American Century by Steven Watts. http://ericri.es/ThePeoplesTycoon The One Best Way: Frederick Winslow Taylor and the Enigma of Efficiency by Robert Kanigel. http://ericri.es/OneBestWay The Principles of Scientic Management by Frederick Winslow Taylor. http://ericri.es/ScientificManagement Extreme Programming Explained: Embrace Change by Kent Beck and Cynthia Andres. http://ericri.es/EmbraceChange Toyota Production System: Beyond Large-Scale Production by Taiichi Ohno. http://ericri.es/TaiichiOhno
The idea of the Build-Measure-Learn feedback loop owes a lot to ideas from maneuver warfare, especially John Boyd’s OODA (Observe-Orient-Decide-Act) Loop. The most accessible introduction to Boyd’s ideas is Certain to Win: The Strategy of John Boyd, Applied to Business by Chet Richards. http://ericri.es/CertainToWin Out of the Crisis by W. Edwards Deming. http://ericri.es/OutOfTheCrisis My Years with General Motors by Alfred Sloan. http://ericri.es/MyYears Billy, Alfred, and General Motors: The Story of Two Unique Men, a Legendary Company, and a Remarkable Time in American History by William Pelfrey. http://ericri.es/BillyAlfred The Practice of Management by Peter F. Drucker. http://ericri.es/PracticeOfManagement Getting to Plan B: Breaking Through to a Better Business Model by John Mullins and Randy Komisar. http://ericri.es/GettingToPlanB
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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
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The problem with analogies like thi
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the biggest market opportunities in
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To demonstrate, take a look at the
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conversations were designed to answ
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6 TEST G roupon is one of the faste
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At IMVU, when we were raising money
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Most entrepreneurs approach a quest
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made a video. The video is banal, a
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sign up for a new service sight uns
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city?” and the technology flails.
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with humans replicating pieces of t
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we are not even sure who the custom
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quality products, but only in servi
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of these cases, there is an easy so
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7 MEASURE A t the beginning, a star
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changes we’ve made are related to
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For example, a startup might create
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INNOVATION ACCOUNTING AT IMVU Here
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This graph represents approximately
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might, we were getting straight C
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When I meet with those teams, there
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much more exciting. That’s why I
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important connection: “I have thi
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equirements of the product owner (t
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was judged by its ability to improv
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The questioning inspired the team t
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I have implemented this system with
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Even more important than reducing w
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from their actions. Human beings ar
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metrics, “auditable,” is so ess
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8 PIVOT (OR PERSEVERE) E very entre
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1. Customers would be interested en
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easy; it is to make sure that there
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@2gov had a slightly dierent set of
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leap-of-faith questions, David conc
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the U.S. population and has deliver
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pivot or persevere, whether to chan
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THE PIVOT OR PERSEVERE MEETING The
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2. The game would grow using the vi
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not launched its current product, t
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A customer segment pivot is an espe
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incorrectly as a synonym for change
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Value Capture Pivot There are many
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similar to that of a successful com
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Part Three
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Start Your Engines Most of the deci
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accounting method described in Part
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is so named because it has a batch
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producers. Over time, that capabili
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they immediately would release a ne
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in consumer electronics. The latest
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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
Page 227 and 228: When blame inevitably arises, the m
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Page 231 and 232: game players in the world. More tha
Page 233 and 234: Tony relates, “As the new master
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Page 237 and 238: planning. In other words, it is com
Page 239 and 240: problems that aict large-batch deve
Page 241 and 242: Historically, QuickBooks had been b
Page 243 and 244: successful startup expect to have y
Page 245 and 246: Scarce but Secure Resources Divisio
Page 247 and 248: development.1 On the ip side, I kno
Page 249 and 250: spent debating the data because, in
Page 251 and 252: can we protect the internal startup
Page 253 and 254: are considered real and the innovat
Page 255 and 256: Once the market for the new product
Page 257 and 258: to train new team members in the ne
Page 259 and 260: It took a constant eort to consider
Page 261 and 262: online, and suggestions for how you
Page 263 and 264: extremely harmful and required the
Page 265 and 266: century, too, before people knew ab
Page 267 and 268: good system must be that of develop
Page 269 and 270: spawned to correct those deficienci
Page 271 and 272: test the impact of those factors on
Page 273 and 274: vision but not to abandon it. We wo
Page 275 and 276: yourself. The Lean Startup Wiki Not
Page 277: • Ash Maurya has emerged as a lea
Page 281 and 282: 350000-downloads-for-snapt
Page 283 and 284: 93% log in at least once a month.
Page 285 and 286: more on Dropbox’s success, see
Page 287 and 288: you move the pile around between st
Page 289 and 290: article2/0,2817,35549,0
Page 291 and 292: Acknowledgments I owe a tremendous
Page 293 and 294: Telepathy, designed and built the w
Page 295: About the Author ERIC RIES is an en
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