You may have already heard about Lean Enterprise but, because it is a relatively new concept, you most likely haven’t yet.
What is Lean Enterprise?
In short, Lean Enterprise is the Lean Startup approach adapted to large organisations. It has already been adopted by many large organisations such as GE, Toyota, the White House (about 4 years ago), NPOs and many startups that became large such as Zappos.
How can Lean Enterprise be used?
Lean Enterprise can be used as the guide to an entirely new innovation program. However, since most large organisation already have an innovation program, Lean Enterprise can simply build on the existing program, improve it, make it more efficient and, over time, permeate the entire organisation with a culture of innovation.
Explaining Lean Enterprise
Explaining Lean Enterprise could be a very long process given that it touches all aspects of business and will take a very distinct flavor in each or the organisation that adopts it.
When entrepreneurs or intrapreneurs (folks responsible to make innovation happen in large organisations) want to explain their projects to me, I usually ask them to describe their business model.
Hence, I’m thinking that describing Lean Enterprise’s business model is will be a good way to explain this approach to manage innovation in large organisations succinctly.
Understanding Lean Startup first
If you are unfamiliar with the Lean Startup approach then I suggest you brush up on it. Lean Enterprise requires a very good understanding of the underlying principles as well as the capability to run Lean Startup-type experiences. There is an abundance of Lean Startup documentation online including the many Lean Startup related posts on this blog. Here is a sample of them that you can check out as a primer.
The Lean Enterprise Business Model
The image below (click to make it larger) is Baker Marketing’s version of what Lean Enterprise’s business model would look like. This version would not make for a good investors’ pitch but it’s also not its purpose. Hopefully, this business model canvas will help you to understand, at a glance, what Lean Enterprise is all about.
The Lean Enterprise Business Model Canvas
Click for full view
Although this canvas is pretty straight forward, I will detail the Customer Segments and Value Proposition sections of the Lean Enterprise business model for better comprehension.
Targeted Customer Segments
The Lean Enterprise innovation approach can be used is just about any large organisation that needs to innovate. The more disruptive the innovations it produces, the more gains it will get from the Lean Enterprise approach.
For profit organisations
This segment has the most straight forward application of Lean Enterprise for innovation purposes.
There are already dozens of large organisations incorporating Lean Enterprise in their existing innovation programs to make them more efficient. It is the case of such companies as Google, GE, Intuit, Toyota, Adobe, etc.
Non profit organisations
NPOs around the world all have a common pain; they are struggling to get enough resources to achieve their goals.
In many cases they are also faced with the task to innovate in order to keep being relevant to both their users and benefactors. Lean Enterprise helps them by ensuring that all the resources they do have are used as efficiently as possible when they innovate.
Lean Enterprise also helps large NPOs develop a more innovation-friendly culture.
Public and para-public organisations
Given that efficient use of resources is a basic principle in the application of Lean Enterprise, most public organisations could benefit from its implementation greatly. Government institutions are also in dire need of catching up to economies changing at the fastest pace ever in history.
The White House initiated the Healthcare.gov portal re-design in 2011 with a Lean Startup (not yet known as Lean Enterprise) team. The embryonic project was then taken over by CGI. When CGI was unable to deliver on time and on budget, the project was reverted to the Lean Startup team. The results they achieved were so spectacular that the White House eventually adopted Lean Enterprise for all of their innovative projects. The approach also spread to other American government agencies and departments.
Aneesh Chopra, who was appointed CTO of the United States by Obama in 2009 (until 2012) was one of the catalysts in propagating the Lean Enterprise approach through the US government. 
This is, in part, what a large organisation can expect to obtain with the implementation of a Lean Enterprise approach to innovation that their current program may not be bringing them.
Help innovate more efficiently
The efficiency is obtained in large part with the fact that an innovation project that is completed, within a Lean Enterprise-based innovation program, will necessarily answer the needs of its target customers/users. Hence a product/market fit or a service/user fit will be achieved every time.
Efficient use of resources (especially human) being an underlying principle of Lean Enterprise, it is therefore a constant preoccupation of the project participants.
Use existing resources more intensively
If you work in a large organisation, I am certain you are aware of either unused resources or resources not fully used that can be put to contribution in innovation projects. If not, I suggest you ask and snoop around. You will find some in no time. The infusion of entrepreneurial attitude, brought by Lean Enterprise, makes using these resources second nature.
Build on existing innovation programs/practices
Lean Enterprise is based on principles, tools and techniques borrowed from many existing and proven management theories such as:
- Lean production
- Customer development
- Agile development
- Design Thinking
Most innovation programs already make use of the principles, tools or techniques of some of these theories. Lean Startup implementation can ‘’surf’’ on these existing programs in an organisation and add to them. This greatly flattens the learning curve and is more easily adopted.
Implementing a Lean Enterprise approach to innovation is like any other change management program. It must be done incrementally, ensuring all are onboard.
Increase speed to market of innovations
Lean Enterprise is based on rapid iteration testing of the various parts of a business model until you reach a product/market fit or service/user fit.
The approach has a built-in control mechanism to ensure innovation teams don’t go astray, lose focus or momentum.
Pivot quickly on ideas with no positive ROI
All of the products or services that get to market with a Lean Enterprise approach are successful. This, however, doesn’t mean that these successful products or services look anything like what was imagined initially.
Lean Enterprise does not prevent or fix product or service ideas that would flop in the market. It does however quickly show which ideas need to be discarded thus avoiding the waste of resources to bringing them to market. Luckily, most ideas simply need a few pivots (okay many pivots) to achieve success with their markets.
Better manage innovation financing risks
The use of innovation accounting in Lean Enterprise innovation programs allows for incremental financing with a known risk coefficient of each of the projects increments.
It bridges the gap between corporate innovators and financial managers.
You can read more about innovation accounting in these previous posts.
Creates innovation culture in the long run
The real prize, at the end of the journey of implementing Lean Enterprise, is the creation of a true culture of innovation.
Some of the most important barriers today in achieving a true organisation-wide culture of innovation are the following:
- Mistakes are neither welcome nor tolerated
- Resources (human, financial, physical, etc.) are kept in silos
- Decision making power is diluted (with a heavy weight at the top of the pyramid)
- Over-abundant and rigid processes that result in slow reactions to market changes
The Lean Enterprise approach to innovation, intrinsically, removes those barriers.
As any other change management program, Lean Enterprise takes time, effort and commitment. Commitment from the innovation project champions but also from top management. Although still in its infancy, the Lean Enterprise approach shows promise of integrating innovation into large organisation’s main stream of business instead of treating it like a special cousin, as it is now.
If you want to learn more about Lean Enterprise and its application, you can pre-order Eric Ries’ new book due out in the fall, called TheStartup Way.
If you have a Lean Startup Circle community in your area, you can contact the organisers to locate experienced coaches or attend their meetups and see how entrepreneurs and intrapreneurs can help each other innovate more efficiently.
 This hour-long talk with Aneesh Chopra explains how Lean Enterprise came to be in the US governement
 Characterised by a sharp increase in the sales or adoption growth for a sustained period.
This is the last of an 8-post series on applying Lean Startup in the various phases of a start-up. In this post we’ll take a look at the tools that will accompany you in your efforts to maintain a lean startup practice in your company during the concierge phase.
Lean Startup Principles and fundamental tools
The tools suggested in this post are but the tip of the iceberg of the tools that exist to help you adhere to the principles of Lean Startup. They will vary according to the specifics of your business model. A great place to find apps to help you with your productivity is the Slack apps directory. Using thes tools doesn’t mean you are following a Lean Startup approach. You can only do this by putting into practice, on a daily basis, the various principles that underly Lean Startup.
Top Lean Startup Principles:
(Click on the theory to see an example of a book on the topic)
||Customer focus; Efficient use of resources; Just in time; small batches;
||Understand your customers’ needs then develop your product/service; Use continuous feedback from your markets to make decisions (feedback loop)
||Have a 360 view of needs, problems, issues; Empathize with your customers before you start designing your product; test multiple prototypes before going to market; transparency of information and process
||Develop in iteration; test your developments with users before going to the next step; use agile planning tools
There are also fundamental tools that come with the Lean Startup approach. These tools are:
- Management tools:
- Business model canvas or the Lean Canvas for planning.
- Experiment board to guide you with your first experiments.
- Kanban boards to ensure you are not creating bottlenecks in your production
- Metrics: Use data to make decisions whenever possible.
- Innovation accounting:
- Keeping a log of your experiments
- Innovation options to calculate the maximum value of your start-up and the associated level of risk.
Here are ideas of tools or types of tools to look for when applying the Lean Startup approach in the concierge phase (last phase) of your start-up.
Product development tools
If your product is an application or software
Continuous deployment (or delivery for certain markets) espouses most of the Lean Startup principles. It requires a slew of tools. Atlassian offers many of them with apps such as Bitbucket, JIRA and Bamboo.
If you’re creating a physical product
You may want to look at integrating your suppliers into your corporate Slack, if not already done. In order to do so, you should get the secure ($) version of Slack.
You’ll also want to establish processes that will ensure your marketing/product design and production teams communicate regularly in order to ensure market needs and trends are communicated asap throughout your value chain. Common work tools for these teams and spaces (physical or virtual) where they can easily meet on a daily basis should be available.
You will want to look into integrating as many of your data sources as possible (Analytics, CRM, Ticketing system, social media feeds, and manual data) into a robust business intelligence platform. One of the better and more agile one out there at this time is Tableau. Qlik and Microsoft BI are also good choices. IBM’s SAS and Watson are better, since they integrate AI elements, but highly likely out of your price range.
If you’re running an on-line business then you need to start looking into an agile and powerful real-time analytics solution. Google, aside from its free version, has a module approach that is neat since you can only get the packages you use. The entire 360 suite of 7 add-ons is very costly. You’ll need to make sure you get an ROI before investing in it. There are other options such as Clicky that also offers real-time analysis. Clicky integrates with Slack.
Whatever BI or analytics platform you get, the most important part is to ensure you have the resources and processes in place to maximise their returns for your company. Hence it must be part of most everyone’s job description to feed the BI databases on a regular, if not daily, basis. You’ll also need someone to ensure the data in your system is clean and the analyses are correctly interpreted.
Your experiment logs should be scraped for pertinent market information regularly. They should have their own Slack channel (or section in your intranet).
By the end of the concierge stage, you may be cranking out multiple new products in rapid fire in order to get a larger wallet share of existing customers or to satisfy the needs of new segments. Applications such as LaunchLeap that help you get quick feedback from a large number of users will help you accelerate your experiments.
HR tools and guidelines
If you aren’t outsourcing your recruiting and training then you’ll want to look for tools to make these processes more efficient.
Get a screening tool (with broad mesh) up on your website to reduce the time spent looking at non pertinent resumes. Make sure your corporate values and culture are also reflected on your website and all your social media content.
Use your FB and LinkedIn corporate pages to get referrals for potential top candidates.
Invest in training video s available 24/7. These online videos make the on boarding process more efficient and transparent.
Encourage inter-employee training and coaching. Having video, sound and recording capabilities on their computers or laptop will enable employees to share their knowledge with their peers either in real-time or asynchronously.
Have as few employee guidelines as possible. When they are absolutely necessary, keep them as broad as possible. Nothing kills creativity and initiative as well as guidelines. Just remember not to substitute good management with guidelines and you should be fine.
Finance is not my area of expertise so I won’t venture into suggesting accounting apps or platforms. What you will want to look for in your accounting system to support your Lean Startup approach are the following capabilities:
Integrating market information into your sales projections (by segment)
Enabling you to show only the financial data you want to specific categories of employees.
Although you want to remain as transparent as possible with your financial results, your growing staff and eco-system will require you to limit the financial information you share with some of them. If your system doesn’t allow you the flexibility to easily share some of the information with specific employees/partners/suppliers then you may be tempted to only share summarized data on a monthly or quarterly basis.
As you have now come to realise throughout this series of posts there is no one way to apply the Lean Startup approach. There are however wrong ways to go about it. If whatever you are doing goes against or disregards Lean Startup principles, then it’s obviously not Lean Startup. Throwing in buzzwords like MVP and pivots won’t change this.
We also saw a variety of tools used in the practice of Lean Startup. These don’t even represent the tip of the iceberg. They will also become obsolete very soon. Newer and better ones will become available. The important message is to keep looking for tools that will make you more efficient and help you achieve the minimum in MVP. These tools will also enable you to run experiments in a timeframe that was impossible only a few years ago.
These tools are the reason an iterative, experiment-based approach like Lean Startup is now viable.
Lean Startup is the essence of entrepreneurship. It’s about doing. It’s about taking only the risks you have to take in order to answer a market need with a product or a service. It’s about having some core competences but mostly about how fast you can learn what is pertinent and apply your learnings. Finally, it’s about discipline, rigor and lots of hard work.
Lean Startup is rarely sexy but then again neither is starting and growing a successful business.
This will be the second to last post of a series of how to apply the Lean Startup approach to a new business.
Until now in this series on applying Lean Startup, we started with an introduction, then looked at the ideation phase, the discovery phase and the pre-sell phase (also known as the Death Valley).
Either because you have made it this far in reading this series or, even more important, you have successfully crossed the Death Valley (pre-sell phase) and came out of it with the holy grail of a product/market fit (when the hockey blade becomes the stick on your revenue chart).
You now find yourself in the concierge phase.
What is the concierge phase
The boxes below presents a very high level summary of usual situations your start-up can expect in the concierge phase.
- Your core features all work pretty well
- You created your first (official) road map to additional features
- If you are outsourcing, you are either looking at optimizing your suppliers or taking steps to bring production in-house
- If you are manufacturing in–house, you are looking at getting decent equipment to start producing at a larger scale
- You are looking at more efficient tools to learn about your customers, markets, and environments
- You are exploring new customer segments
- You are aggressively growing your initial markets
- You are constantly reassessing the total size of your markets
- If you are an innovator in your market; you are keeping an eye out for the chasm (1)
 The saturation of the early adopters market and passage to the early majority (re. The innovation adoption curve)
- You are feeling the need to put processes down on paper so your teams has a more homogenous approach
- You realise you need a lot of processes and procedures but don’t want to bog down your agility
- You are on boarding team members at a rapid rate
- Job definitions are getting more specialised
- Your core team is trying to find a fit with their new, more limited, roles in the company (spoiler alert – some won’t adjust)
- Your core team feels as though they spend more time coaching new resources than getting work done
- Money is coming in at a decent rate from sales
- Labour costs need to be controlled as they are growing faster than your sales at times
- Extra office space and equipment mean increasing your bank margin or taking out (mostly) short term loans
- Investors are now calling you and want to hear about your scaling strategy
Too busy for Lean Startup
You are now running a small business that is experiencing the fastest growth rate it ever will, short of an acquisition.
It is easy and oh so tempting to abandon the build, measure, learn approach. After all, you know your initial market’s needs very well by now and you are crazy busy fulfilling orders, fixing issues and well, running a company.
It is a trap most entrepreneurs will fall into. Until their growth rate slows down, stalls and starts to plummet. The dirty secret of the concierge phase is that most companies’ revenues during this period don’t look like a straight hockey stick handle. That straight upward slope is just the trend of your revenues. The revenues themselves go up and down regularly. If you want your slope average to be positive and steep, you need to minimise those downs. Most times these down periods will happen for the following reasons:
- Your customer needs are changing due to a shift in the market (often due to a new competitor)
- You experience process or production failures
- Your initial early adopters market is getting saturated and you didn’t react quickly enough to open new markets
- Your early adopters markets are saturated and you haven’t figured out how to sell to the early majority customers.
Continuing to apply the Lean Startup approach during your concierge phase will ensure that any new features or internal processes will answer the needs of your customers (external and internal). It will also ensure that market changes are captured and acted upon. This does mean that many of your processes must incoporate Lean Startup elements in them. In some cases, it can also mean that the you will need the build, measure and learn processes themselves to be written down and into job descriptions.
Incorporating Lean Startup in your processes is the key to keeping your company innovative and agile as it grows.
Your product, processes, marketing and overall strategy will adapt continuously. When you need to cross the chasm to reach your early adopters, the Lean Startup approach will be your natural bridge to the other side.
In our next and final post of this series, we’ll take a look at the tools that are most useful in the concierge phase.
 The saturation of the early adopters market and passage to the early majority (re. The innovation adoption curve)
It’s the end of the year already. It went by incredibly fast. This is the time to look back and identify what needs to be fixed. It’s also the time to be grateful for all that we were able to achieve.
One of the things I am always very grateful for is the knowledge I gain during the year. Important sources for the knowledge I pick up are the books and articles I read.
I have to admit that I didn’t have as much time to read this year as I got involved in many (maybe too many) projects. I did however manage to read some very good books on marketing, innovation and Lean Startup.
As I did last year, I am sharing with you some of the ones I especially liked.
Best Reads on Marketing
I didn’t keep up with all that is new in marketing this year. It’s nearly impossible to do so. I tuned in to a few webinars that helped me focus my readings.
I read mostly on mobile marketing (various aspects), influencer as well as community marketing. Community marketing is a strategy that isn’t as easy to implement as one might think. Here is a post I wrote on how to find a profitable community marketing partner.
Again this year, I found that my most interesting marketing reads came from blog posts on mainly two sites; eMarketer and HubSpot
Speaking of HubSpot it is one of the case study in Sean Ellis’s book; Growth Engines: Case Studies of How today’s Most Successful Startups Unlock Extraordinary Growth.
Through ten case studies, including Yelp, Uber, LinkedIn and HubSpot, Ellis explains the different types of growth engines and the contexts in which they worked best for those companies.
Although I read Growth Engines to better understand a concept that is integral to Lean Startup, this book offers some very valuable marketing lessons. It also touches on growth hacking, a term coined by Ellis. It inspired me to write a post on what growth hacking is and isn’t.
Another book that I thoroughly enjoyed was UX Strategy by Jamie Levy. Having been a Product Manager at a time where UX was but one part of the job description, it was great to delve into the depths of UX strategy.
Whether you are starting a new venture to create the killer app, or trying to innovate in an existing small, medium or large business, this book is a must read before you start. It can help you define a winning value proposition. It also guides yourr competitive analysis and helps you see which features you need to focus on.
The book is an easy read and doesn’t require any prior knowledge on UX design or app development.
Best Reads on Innovation
I was invited to a university workshop on blockchain earlier this year. Given I knew nothing on the topic I figured that it would be a great opportunity to learn. Montreal, where Baker Marketing is located, is a hotbed for blockchain research and development. The workshop did teach me the basics of blockchain but left me wanting to know more (a lot more, this is exciting stuff and definitely a game changer) about how this new technology could be used.
One of the researcher at the workshop suggested Blockchain Revolution: How the Technology behind Bitcoin is Changing Money, Business and the World, by Don and Alex Tapscott. It was exactly what this non scientific reader needed. The Tapscotts explain the concept in very simple terms. They also explore a large number of applications for blockchain. They clearly show how significant a game changer this technology could be.
In Spring I also contributed to the organisation of the Montreal edition of the Intrapreneurship Conference.
During the conference one of the keynote speakers was Guillaume Hervé. Hervé is a veteran practitioner of intrapreneurship. He contributed to several corporate spinoffs in the aeronautics and health sectors. In case you are not familiar with the term, intrapreneurship is entrepreneurship adapted to large enterprise.
Intrapreneurship is however not the same as entrepreneurship. These differences are the focus of Hervé’s book Winning at Intrapreneurship: 12 Labors to Overcome Corporate Culture and Achieve Startup Success.
Based on the 12 labors of Hercules, Winning at Intrapreneurship looks at the traps, pitfalls and myths of innovating in large businesses. Hervé saw them all in his career as an intrapreneur. He shares with us some tricks of the trade on how to avoid and debunk them. You can read more on this topic on the post I wrote titled Entrepreneurs as Corporate Innovators.
Best reads on Lean Startup
Continuing on the innovation in large business topic, Eric Ries published a second book this year. It’s titled the Leader’s Guide to Adopting Lean Startup at Scale.
First, Eric innovated in the way he published the book. He financed the book with a Kickstarter campaign. The backers were invited to join the Leader’s Guide community (managed by Mightybell). He used the community to test hypotheses about the content and cover of his book. Yep, he did it the Lean Startup way.
Unfortunately however, Eric only printed as many books as there were backers who pledged the sufficient amount. It isn’t available anywhere for purchase now that the Kickstarter campaign is over. You can however get a free digital copy if you know someone who invested in the campaign.
The Leader’s Guide is based on Eric’s experience (as well as that of some backers) on implementing Lean Startup in large corporations, like GE, and government organisations (like the White House).
I especially like the format of the book. Symbols are used in the margins throughout the chapters in order to quickly understand what the text pertains to. The coach’s Guide sections, for example, are about tips and subtleties in implementing the concepts.
It’s truly a guide that you will go to when implementing a Lean Startup approach to a large organisation.
Eric also announced that he will be publishing a third book next year. It’s tentative title is The Startup Way.
We were lucky to have another great Lean Startup practitioner write his second book this year. Ash Maurya penned Scaling Lean: Mastering the Key Metrics for Startup Growth.
As a follow up to his first book, Running Lean, Ash is now looking at how to use metrics to scale your business once you have found the elusive product/market fit.
His rigorous approach to using key metrics to track your progress and focus your efforts has shown great results in many successful startups.
Finally, I want to mention a website whose author consistently publishes great Lean Startup material. Tristan Kromer’s Grasshopper Herder is chalk full of Lean Startup ideas, tools and resources. Tristan was until recently one of the organisers of the San Francisco Lean Startup Circle.
If you are starting a new project and interested in putting Lean Startup into practice take a look at the series of posts on implementing Lean Startup. It is meant to guide you along your journey when you first start your project.
This concludes this year’s crop of my best reads on marketing, innovation and Lean Startup. Maybe some of them will become your favorites.
Thank you for taking the time to read Techno Marketing this year. I hope you take some time off during the holidays to rest and replenish, as we will.
Baker Marketing offers you its best wishes for the holidays. May 2017 be filled with health, serenity and lots of successful projects.
In this series of posts we have looked at how to use Lean Startup during the ideation and discovery phases. We also dove into the experimentation process and the tools to use in the discovery phase.
In this post, we’ll look at how to use Lean Startup in your pre-sell phase.
What is the pre-sell phase?
The pre-sell phase begins when you have sufficiently tested your leap-of-faith assumptions of your business model to be confident that you have a shot at a viable business. This not because you believe so (as you did in the ideation phase) but because most (or all) of your business’s stakeholders (potential customers, suppliers, distributors, etc.) have told you so.
Typically, during the pre-sell phase you will be:
- Finding a (or several) co-founder(s)
- On-boarding your first employees
- Developing your product/service
- Starting to put into place some key partnerships
This is also the phase at which you will start getting real feedback from paying customers (closer to the end of the pre-sell phase) and other stakeholders. It’s the reality test.
A test, unfortunately, many startup ideas fail. It’s when you will either:
- Make significant pivots,
- Change your mission entirely (go back to square one)
- Throw in the towel, or
- Confirm your business model
The end of this stage, when successful, is also often the time to go for seed funding.
Why continue experimenting?
So now that you have confirmed your business model, why should you continue experimenting? It would be so much faster to just go full steam ahead and develop.
Your ideation and discovery phases were mostly planning. As you know, plans usually don’t work out the way we think they will.
Also, during the time you take to put in place your business model, elements of your business’s eco-system as well as market realities will change. The higher the volatility of your business environment, the more important it is for you to test the elements of your business model while developing. Otherwise you may expand great efforts and resources to develop key partnerships, distribution networks, and develop your product/services for nothing.
This may not seem so bad from this end of the journey. Entrepreneurs who put every ounce of energy they had and every penny they owned (and some they don’t), for a few years, in a business that doesn’t lift off will tell you it’s as difficult as going through a death in the family. Some never fully recover.
Lean Startup experiments in the pre-sell stage
The mechanics of the experiments we saw in the discovery stage will be the same.
You will still start by asking yourself; Will the negative impact on my future business be significant if the assumption I am making (regarding whatever part of your startup you are currently working on) isn’t real? If the answer is yes, you turn it into a hypothesis you can test. You design your experiment using tools to minimize your efforts, chose your metric and standard and execute your experiment.
By this time, you will be getting very good at experimenting. Hence most of your experiments will take you less than a couple of days to run and often only a few hours or minutes.
Also, because you will have gotten out of the building often during your discovery phase experiments, you won’t need to talk to your stakeholder face to face as much. Many of your experiments will be done on the web or over the phone. You can also hire people to do them for you.
There will be times however when you aren’t sure of your next steps. This is usually the flag that means you need to go be around your potential customers. Talking or observing them. They will invariably show you the way.
At this stage, you will not only be testing elements of your product/service you will also be testing your distribution channels. The web will be your first one if you’re using it. Also, if you are thinking of launching in markets that are not physically close to you, now is the time to start testing with those markets.
Not only will you be familiarizing yourself with the tools to find those markets but also you will, hopefully, have developed the reflex to go to the Lean Startup community for assistance.
The tools of Lean Startup
Now that you will most likely have a, or several, co-founder(s) and employee(s), often not in the same city or working space, efficient communication will be a real need.
Slack, Trello and Dropbox may already be part of your daily routine. You may now want higher performance project management tools (such as Asana, Jira or Wrike) or to start taking notice of Slack management best practices.
If you’ve embraced the integrated multiplatform communication route of Slack, you may also want to look at some of its competitors such as Bitrix24 and HipChat.
If your product is IT application, you’ll want to use one of the thousands of productivity apps available, often for free, to help you develop and test it. Tools such as Balsamiq Mockups , Fluid UI or HotGloo for wireframing. GitHub, Zappier or LucidChart for developing your application. Test Fairy, Hiptest or SauceLabs for automated testing. Once your app is functional you can also put it up on Product Hunt and see what kind of reaction you get from a crowd of mostly innovators and early adopters.
If you are developing a non IT product, you can look for tools such as Ask Your Target Market (AYTM), Facebook or Survey Monkey and combine them with any potential customer email lists or profiles you have already collected.
You will also need to use your creativity to design experiments such as webinars or gatherings to have potential users interact with your product. Tools such as Meetup, Eventbrite, GotoMeeting will be very useful.
When you want to start testing packaging and pricing, A/B testing will be your friend. A/B testing is also very useful to test the conversion rates of different elements of your web pages. Tools such as Unbounce, Optimizely and LauchRock will be necessary unless you hold a degree in statistics.
If you are launching a new restaurant or brick and mortar business sites such as Potloc can help you find the best location and get feedback from potential customers.
Upping your game on metrics
Experimenting and collecting all this information is great. You’ll need however to store, crunch and make sense of all of this data.
You’ll also need to figure out what metrics will be the key ones for your business. If you haven’t read Lean Analytics (Croll & Yoskovitz) yet, you need to by now.
Analytics is one of the parts of Lean Startup that isn’t intuitive. There is knowledge involved here, quite a bit of it. The learning curve is steep. If you will be running an online business (fully online or parts of it) you definitely need some deep analytics knowledge in your company.
Zoho Reports, Segments and Tableau are all great options. Initially you may however simply use an Excel spreadsheet in conjunction with Google Analytics. By the end of this stage, you may find however that the home grown solution requires too much time to manage and you’ll see value in the previously mentioned apps.
As you can see applying the Lean Startup approach gets easier and easier as your startup grows.
The next and last post of this series will be on how to apply Lean Startup during the concierge phase of your startup.
 Although you may be selling at a discount or simply selling and reimbursing as your product is not yet ready.
 Doesn’t integrate with Slack
This post follows Lean Startup Experiment – Discovery Phase. It will help you find Lean Startup tools that will accelerate your experiments significantly. Many of these Lean Startup tools increase productivity and can also be used on a daily basis in your business.
None of these tools, aside from the Javelin board and the experiment log template were developped specifically to be used within the Lean Startup approach. They are simply productivity tools that enable fast and efficient Lean Startup experiments.
Lean Startup Tools
Lean Startup tools make continuous experimentation throughout your startup feasible. Many of those tools are free or cost very little. None of the tools presented in this post were developed specifically for Lean Startup. They are simply productivity tools that are used by the Lean Startup community to increase their productivity.
The following are some of the tools I find most useful and often recommend when entrepreneurs are in the discovery phase. Keep in mind there are hundreds if not thousands more of these tools out there. A bit of googling and asking around will yield you many options to accomplish the same task.
Lean Startup tools to organise
These applications are great as they often work as a checklist as well as organisers. The following Lean Startup tools are all free or have free parts to them. Click on the titles for links.
Ash Maurya has graciously made his Lean Canvas application, which is very well made, free for your first project. It will help you keep a record of the various iterations, enable you to share with other team members and print your canvas.
Free business model canvas application developed by Johan Steenkamp. It has some really great features such as various colours for your post-its, picture and sketching capabilities as well as communication features for your team.
This is a great tool to start figuring out your cost and revenue model. It will act as a check list of all the items you need to take into consideration in your revenue statement. As you progress in your startup, Budgeto will also take care of most of your accounting needs.
Lean Startup Tools to communicate/collaborate
If you don’t yet know about Slack, you must. It’s an instant messaging app, on stereoids, that allows you to connect just about any other popular productivity tool such as Dropbox, Google docs or Hangouts, Skype, Trello and hundreds more. It’s mobile friendly so it will enable you to keep in touch with your team wherever you are.
Trello is one of the many simple and intuitive project management tools out there. Trello is the only full application that still offers free access. It is very powerfull and still simple to use. Other project management platforms such as Asana and Basecamp are even more complete but don’t offer any free versions.
Definitely one of the best ways to share large files and documents. It’s as simple to use as can be and is entirely free unless you are a power user.
Lean Startup tools to run my first experiments
Javalin first developed the Experiment Board for the Lean Startup Machine a couple of years ago. They are now developing it in an app and are still in the testing phase. Until the app is out, you can get a Google docs version of it and print it out. Watch this great video tutorial, from Grace Ng, of how to use the Experiment board.
This book contains over a dozen techniques to help you conduct offline experiments. Each technique is well explained and illustrated with an example. If you’re not familiar with data gathering techniques, it’s the best place to start.
Powerful online survey creation and data analysis application. It’s free for basic forms and data crunching. It has more survey question options and data analysis capabilities than AYTM and GCS. You must provide your own participants list.
Google Forms enables you to create surveys that you can send to your own participants list. Google Consumer Surveys provides the participants and you only pay for completed questionnaires. Pricing starts at $0.10USD per completed survey.
Similar to Consumer Surveys AYTM offers highly targeted participants to answer your surveys.
Pricing starts at about $1USD per participant. AYTM boasts over 25 million survey or experts panel participants.
As of writing this post, I haven’t seen any experiment log templates or application to facilitate the keeping of a journal of your experiments.
Hence, I created one for my own use that I will share with you. It’s a simple Excel spreadsheet that you can modify as you see fit. The important part is to keep your rows constant over time so you can have a base to compare.
Keeping an experiment log is a pain and requires some time and effort. Hence, if you don’t plan on going to VCs for funding, it’s not a must to keep one.
An added benefit of the log is that of a training tool when you onboard other members. Careful reading of this journal will help your new recruits know about your young corporate history and learn from you previous mistakes and wrong turns.
Note: I will add the experiment log template to this post very soon.
Tapping into the Lean Startup community
Some of the most important resources found in Lean Startup are its local and international communities. It is by far the entrepreneurial community that is the most generous with its time and knowledge that I have encountered.
Locally, you have Lean Startup Circles members that meet periodically to learn, practice and exchange on Lean Startup experiments, tools and resources. Circles have experienced coaches that can help you with any part of your experiments.
You can locate the Lean Startup Circle nearest you by consulting the list on the Lean Startup wiki. Most of them, such as the Montreal LSC, have a Meetup page, Facebook page and/or website where you can register to become part of the community.
Once you are part of a Lean Startup Circle community you will gain access to the Lean Startup Slack channels by asking your local organisers. These channels encompass hundreds of members that form a help community.
If you are stuck somewhere in your experiment, are looking for a tool, experiment design ideas, want to know how to go about testing a foreign market, your local and virtual Lean Startup communities will be there to help.
The next phase
Once you have acquired sufficient knowledge on your various stakeholders and have attained a certain level of validation with your business model, you will want to put it to the test.
The next phase will be about validating your business model where it counts; in the market. It is the true acid test. This phase is also sometimes referred to as the Valley of Death. It is when most start-ups end up dying in the Lean Startup approach.
This phase will also be when you start developing your product/service. The good news is if you can’t find any way to have your product/service fly in the market, you will not have spent months or years working on it.
The next post will guide you through this phase using Lean Startup. It will show you how Lean Startup can help transform, some (no, not all) ideas that would have died, into lucrative ventures. We will also present tools and tactics that can help you survive these difficult times.