Le an S t a r t u p C on fe ren ce 2016Summary Points from Key Speakers

Jeffrey Tobias | Managing DirectorThe Strategy Group

“Innovation is a verb, not a noun”

ERIC RIES | The Lean Startup

• The physical Silicon valley is actually a state of mind

• People don’t get “assigned” to work in a startup – so where should their expertise come from?

• The startup is an atomic unit of work• We need to innovate on a continuous

basis – not once off• We need to think not of continuous

innovation, but continuous transformation

• How do we build this skill to do it over and over and over

ERIC RIES | The Lean Startup

“We need to change the language from MVP to MVVVP: Minimal Valuable Viable Validated Product”

GUY KAWASAKI | Canva

• Customers cannot tell you what they need• Innovation happens on the “next curve”• Most companies define themselves as what they do, rather

than what they provide• We need to change the language from MVP to MVVVP

• Minimal Valuable Viable Validated Product• Big challenges cause big changes

• Big challenges deliver big results• Less is more• Changing your mind is a sign of intelligence• Engineers are artists• You make it, you sell. Everything else is bullshit!• Innovation ignores naysayers• Only a loser listens to a loser• Some things need to be believed to be seen

GUY KAWASAKI | Canva

“Being comfortable with ambiguity is OK”

SAM PARR | Hustle

The Hustle: A conversation with Sam Parr

• We should sign up at the Hustle• Have 5 million readers• Only email based – shows the power of an email

newsletter• Ambassador program – 1200 ambassadors –

when an ambassador sign up 20 people they get a TShirt, when they sign up 50 they get a hoodie.

• Being comfortable with ambiguity is OK• They create content that can be used on other

sites – lesson for us• They want to get to a million daily readers

SAM PARR | Hustle

“Set a desired outcome for every meeting”

MAMIE KANFER STEWARTMeeteor Meet ing Pract ices

Meeting Practices That Support InnovationMake a list of:• Agreement on…..• Decision on….• Alignment on….• Ideas for…..• Events scheduled……• Stronger relationships…..• Use norms to establish expected behaviours in meetings• Ask how might we think boldly• Challenge assumptions• Voice concerns• Realise that customer feedback is more important than our

opinions• Take notes and use them to build a knowledge bank• For the Meteor meeting tool see http://www.meeteor.com

MAMIE KANFER STEWARTMeeteor Meet ing Pract ices

“No-one wants to buy experiments"

JEFF GOTHELF | Lean UX

Scaling Lean: Project, Program, Portfolio

• Agile+Lean = continual learning• Customer value and business are the same thing• Look at OKRs (objectives and key results) • Value learning over delivery

• Build small teams• Give them one OKR• Set guidelines for continual experimentation

• Radical transparency• Rituals• Standups• Demo days

• Give them Access to customers• Let people talk to customers

• Have Humility in all things• Rethink staffing models• Build continual learning cycles• Make it a top down effort

JEFF GOTHELF | Lean UX

“Design is a manifestation of the Self”

IRENE AU |Khosla Ventures

Design and the Self• What we make is a tangible expression of

our self• Simplicity might make us feel vulnerable• Well designed products are imbued with

honesty• Design gives us a spirit• Design communicates values• Design has an impact on the human spirit• Well designed products are a manifestation

of mindfulness• What we make we become, and what we

become we make• Good design helps us become the best

version of ourselves

IRENE AU | Khosla Ventures

“People should think of their company as a product"

JASON FRIED – Basecamp

Why 40 Hours Is Enough: Lessons From Basecamp

• If you raise money you become very good at spending money

• Businesses should be able to work with 40 hours/week/person

• Have only one meeting per month – no other meetings

JASON FRIED – Basecamp

“Everyone in IBM is now focussed on “user outcomes”

PHIL GILBERT | IBM Design

Design Thinking and Lean

• There is only one key to future growth – the client experience. • In the past we changed WHAT we were working on, now we are changing

HOW we work. • Our formula – we must change People + Practices + places• Design is not the end game• The end game is the client experience• We must embrace diversity in all forms• IBM is adding 1500 designers• Need to think about this in IBM scale• Everyone in IBM is now focussed on “user outcomes”• They are also focussed on Restless re-invention• Diverse empowered teams are key• Remember: WE ARE NOT OUR USERS• Observing is about immersing yourself in your users world• IBM have “Sponsor Users” who will commit 4-10 hours per week to help

design the solution• “Go find one person who will give you 5 hours a week to help you build

the solution” – and you know you have a solution• Ideas are pretty much worthless• IBM prototype relentlessly

PHIL GILBERT | IBM Design

JAKE KNAPP |  GV

“Build a prototype in 5 days”

Jake Knapp on Sprints: How to Build and Test an Idea in Just 40 Hours

• Clear the whole week and have the whole team focus on one problem

• By Thursday – build it• Friday: Test it• Jake has done this 150 times now….• Monday: teams get together and make a map of

the process of the outcome• Tuesday: individual ideation• Wednesday: One person chooses three solutions

(solutions are anonymous)• Thursday: Build a prototype in 8 hours• Friday: test with EXACTLY 5 customers

JAKE KNAPP |  GV

“A little struggle is a good thing. When you don’t have resources you’re forced to think, be creative and clever.”

TREN GRIFFIN | Microsoft

Why entrepreneurs should aim to be missionaries, not mercenaries

1. Missionaries are Devoted to CausesMissions often stem from “personal pain.” E.g. Netflix originated from the founder’s fatigue in paying late fees for movie rentals.

2. Missionaries Have Grit “Missionaries say ‘I’m on a mission here.’ They build the biggest and most lasting companies” Grit = the passion and resilience to pursue a goal and keep at it. “When things get hard, they find a way. They’re focused on building teams,” “Way more missionaries succeed, and when they do, they succeed bigger.”

3. Missionaries Learn from Their MistakesOne of Griffin’s early ‘90s starups, Teledesic, aimed to launch a global, broadband, non-geostationary satellite system. It was “The most un-Lean startup in the history of the world.” With primary shareholders such as Bill Gates, Teledesic started out with $20 million in venture capital. But everywhere they faced risk: “Technical risk, market risk, business risk, political risk, and regulatory risk,” The company would not be able to earn a single penny or receive market feedback until it spent $9 billion. Ultimately it “just wasn’t doable”

TREN GRIFFIN | Microsoft

4. Missionaries Start LeanIt’s better to start a company on a tight budget. “Too much money early is a bad thing in terms of innovation,” “A little struggle is a good thing. When you don’t have resources you’re forced to think, be creative and clever.” 5. Missionaries Lead with Bold New IdeasMissionaries are often those with the “crazy” ideas. “Airbnb sounded crazy. You’re going to have people staying in your house? What if there’s an axe murderer?” eBay sounded nuts, too. “You’re going to be trading Pez dispensers,” Yet strange ideas often go on to become “monster hits.”6. Missionaries Know Less is MoreEvery entrepreneur will learn as they go—which means at certain stages of the game, you may find yourself groping in the dark. This can be a good thing “because you’re not hidebound in the old ways,” With an open mind, you can run your company in a new way.7. Missionaries are Humble but CommittedMissionaries exhibit humility—the ability to recognize when they’re wrong in business as well as in personal life. A humble attitude allows you to leap beyond confirmation bias and your own POV to see another way, a key component in innovation strategy. Admitting you were wrong can give way to the ability to going after a new, often better goal.

TREN GRIFFIN | Microsoft

“Entrepreneurship is a canvas on which we paint something awesome”

ERIC RIES

Closing session

• The details of Lean Startup are highly complex – but this is not obvious

• If the board or Exec team has not bought in, have a discussion with them as to what it would take for the buy-in. Then this list is the set of experiments that must be run to get their buy-in

• The vast majority of people hired to work in a startup have never worked in a startup

• A long term view is essential otherwise you don’t need Lean Startup

• Eric Ries is spending time on LTSE – a Long Term Stock Exchange

• The cool thing about fantasies is that you don’t have to make any trade-offs

• A Pivot is a change in strategy without a change in direction

ERIC RIES

T H A N K YO UWe hope you got some useful insights

To find out more about what we do and how we can help you lead innovation in your

organisation…

+612 9388 9925 contact@thestrategygroup.com.

au