Acclaim for THE LEAN STARTUP

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How Vision Leads to Steering At its heart, a startup is a catalyst that transforms ideas into products. As customers interact with those products, they generate feedback and data. The feedback is both qualitative (such as what they like and don’t like) and quantitative (such as how many people use it and nd it valuable). As we saw in Part One, the products a startup builds are really experiments; the learning about how to build a sustainable business is the outcome of those experiments. For startups, that information is much more important than dollars, awards, or mentions in the press, because it can influence and reshape the next set of ideas. We can visualize this three-step process with this simple diagram:
This Build-Measure-Learn feedback loop is at the core of the Lean Startup model. In Part Two, we will examine it in great detail. Many people have professional training that emphasizes one element of this feedback loop. For engineers, it’s learning to build things as eciently as possible. Some managers are experts at strategizing and learning at the whiteboard. Plenty of entrepreneurs focus their energies on the individual nouns: having the best product idea or the best-designed initial product or obsessing over data and metrics. The truth is that none of these activities by itself is of paramount importance. Instead, we need to focus our energies on minimizing the total time through this feedback loop. This is the essence of steering a startup and is the subject of Part Two. We will walk through a complete turn of the Build-Measure-Learn feedback loop, discussing each of the components in detail. The purpose of Part One was to explore the importance of learning as the measure of progress for a startup. As I hope is
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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
Page 29 and 30: manufacturing is measured by the pr
Page 31 and 32: Every new version of a product, eve
Page 33 and 34: Products change constantly through
Page 35 and 36: 2 DEFINE WHO, EXACTLY, IS AN ENTREP
Page 37 and 38: ecosystem regardless of company siz
Page 39 and 40: In 2009, a startup decided to try s
Page 41 and 42: accountable. In other words, cultiv
Page 43 and 44: signicant number of existing custom
Page 45 and 46: 3 LEARN A s an entrepreneur, nothin
Page 47 and 48: ventures that had failed, and we we
Page 49 and 50: moving parts that we had to cut a l
Page 51 and 52: Out of desperation, we decided to t
Page 53 and 54: eight.” We had no idea how many i
Page 55 and 56: eliminate it has allowed lean compa
Page 57 and 58: trying to convince investors, emplo
Page 59 and 60: gathered suggested new experiments
Page 61 and 62: entrepreneur in residence. I’ve a
Page 63 and 64: FROM ALCHEMY TO SCIENCE The Lean St
Page 65 and 66: 1. It had more accurate data about
Page 67 and 68: nicely. Yet despite all that work,
Page 69 and 70: second time? How many are willing t
Page 71 and 72: finding justified the significant e
Page 73 and 74: them to dry, which takes two to sev
Page 75 and 76: and innovation to make the agency m
Page 77 and 78: have the opportunity to closely mon
Page 79: Part Two STEER
Page 83 and 84: objectively; they are also invaluab
Page 85 and 86: spent. In other words, Facebook als
Page 87 and 88: The problem with analogies like thi
Page 89 and 90: the biggest market opportunities in
Page 91 and 92: To demonstrate, take a look at the
Page 93 and 94: conversations were designed to answ
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
Page 105 and 106: city?” and the technology flails.
Page 107 and 108: with humans replicating pieces of t
Page 109 and 110: we are not even sure who the custom
Page 111 and 112: quality products, but only in servi
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
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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
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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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