Lean Impact–Lean Startup for Mission-driven Organizations by Leanne Pittsford - The Lean Startup Conference 12/9/14

Small Business & Entrepreneurship

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  • 1. The A-Z’s of Leanfor Social GoodWe’ll start in a few minutes…Lean Impact www.leanimpact.org
  • 2. What we’re talking about today• Lean Startup –what is it and why should I care?• The basic principles of Lean Startup• Defining three key Lean concepts + examples• Ways to get started@leahtn #leanimpact
  • 3. You’ll get the deck• We’ll send you the deck after the webinar• Archived on NetImpactwebsite• You’ll get a copy of The Ultimate Dictionary of Lean for SocialGood@leahtn #leanimpact
  • 4. Who am I?• I’m Leanne Pittsford or @lepitts, the co-founderof Lean Impact, helping socialgood organizations apply Lean Startupprinciples• I’m also the founder of Social Good TechWeek & Lesbians Who Tech• I’ve worked at tech startups and havefounded companies using Lean methods• Fun fact: I run the blog “When You Work AtA Nonprofit”@lepitts #leanimpact
  • 5. The A-Z’s of Leanfor Social GoodLet’s get started…Lean Impact www.leanimpact.org
  • 6. What do we mean by “Lean”?The old definition:Having no moneyDoing more with less@lepitts #leanimpact
  • 7. What do we mean by “Lean”?The new definition:Lean organizations develop products, services and campaigns bystarting small, soliciting user feedback along the way, ensuring theyare continually developing something that users want,and pivoting if necessary.The overall goal is to reduce waste:wasted time, wasted effort, and wasted money.@lepitts #leanimpact
  • 8. Where Lean came fromEric Ries’ book The Lean Startup@lepitts #leanimpact
  • 9. But actually, that came from…Lean manufacturing, from Toyota@lepitts #leanimpact
  • 10. The old way: startups• Have an idea• Start working on it, behind closed doors• Take funding to build it• Take 18-24 months to finish it• Release it to the world• Expect people to buy itIdea Build Launch,Measure,Learn@leanimpact / #leanimpact @lepitts
  • 11. The old way: startups• Have an idea• Start working on it, behind closed doors• Take funding to build it• Take 18-24 months to finish it• Release it to the world• Expect people to buy itIdea Build Launch,Measure,LearnDud(90% of thetime)@lepitts #leanimpact
  • 12. The old way: startups• Have an idea• Start working on it, behind closed doors• Take funding to build it• Take 18-24 months to finish it• Release it to the world• Expect people to buy itIdea Build Launch,Measure,LearnCustomer feedbackcomes hereDud(90% of thetime)@lepitts #leanimpact
  • 13. The old way: social good• Have an idea for a program, service, campaign, etc.• Put staff on it• Take many months to finish it• Release the pilot to the world• Expect it to be successfulFeedback comes hereIdea Build Launch,Measure,Learn??@lepitts #leanimpact
  • 14. The new way: startups• Have an idea• Create a Minimum Viable Product (MVP)• Get it in the hands of customers• Gather feedback• Make refinements• And on and onUser FeedbackIdea BuildMeasure,LearnUser FeedbackBuildMeasure,Learn@lepitts #leanimpact
  • 15. The new way: startups• Have an idea• Create a Minimum Viable Product (MVP)• Get it in the hands of customers• Gather feedback• Make refinements• And on and on@lepitts #leanimpact
  • 16. The new way: startups• Have an idea• Create a Minimum Viable Product• Get it in the hands of customers• Gather feedback• Make refinements• And on and onBuildMeasureLearnUserFeedback@lepitts #leanimpact
  • 17. Basically…BUILDStart with a Minimum Viable Product (MVP) that you can getinto the hands of customers quicklyMEASUREUse metrics see how customers use your MVPLEARNLearn from these results. Either continue on the samecourse, continue with some modifications, or pivot.@lepitts #leanimpact
  • 18. Why should social goodorganizations care?• Time and money are at a premium• You can’t afford to waste months on something that mayor may not work• You need to find out quickly if something is viable, so youcan either pursue it or ditch it@lepitts #leanimpact
  • 19. Defining Three Key Lean ConceptsMinimum Viable ProductGet Out Of The BuildingPivot@lepitts #leanimpact
  • 20. M is for…Minimum ViableProductLean Impact www.leanimpact.org
  • 21. What is a Minimum ViableProduct?A Minimum Viable Product (MVP) is an early version of aproduct or service, and contains only the bare minimumfeatures that allow it to be deployed to early users.It means:- Bare bones- Not pretty- Manual@lepitts #leanimpact
  • 22. Fasal• SMS-based program designed to give farmers in Indiacurrent market prices, so they can sell their crops for aprofit• Started with a Minimum Viable Product@lepitts #leanimpact
  • 23. Fasal• Final product vision: SMS messages automatically sentto users• MVP version: One of the team members manually sentSMS price alerts to early users• Final product vision: Voice response technology wouldsend daily automated phone calls with price updates• MVP version: One of the team members recorded the“automated” voice@lepitts #leanimpact
  • 24. Fasal• The Fasal team studied how early users used the service• Only when they were sure that people would use theservice, did they invest in building out the full vision@lepitts #leanimpact
  • 25. Key Elements of an MVP• No cost / low cost• Easy set-up and maintenance• Measurable@lepitts #leanimpact
  • 26. Why create an MVP?It allows you to test your assumptions:• See if there’s a need for it, before you invest in something• Find out if it’s a viable idea worth your team’s time• Eliminate wasted time• Eliminate wasted money• If people will use it, THEN start building it out@lepitts #leanimpact
  • 27. Gateway Green• Gateway Green is a project in Portland, Oregon to turn astretch of unused land into a multi-use bike park.@lepitts #leanimpact
  • 28. Gateway Green• The assumption: residents of Portland want a multi-useoutdoor space for recreation and preservation• The MVP: an Indiegogo campaign, to see if there is publicsupport for the project@lepitts #leanimpact
  • 29. Gateway Green• Metrics: funds raised + funders• The result:• $123,880 raised• 723 funders“This project will need millions of dollars to be fullybuilt out. While the crowdfunding campaign willraise just a small chunk of that, backers see it moreas an opportunity to show the powers-that-be thatthe public is behind this project and that it's worthputting real money into.” – BikePortland.org@lepitts #leanimpact
  • 30. G is for…Get Out Of TheBuildingLean Impact www.leanimpact.org
  • 31. What is Getting Out of theBuilding?Get Out of the Building refers to the idea that to create avaluable product, service or campaign, you need to talk tothe people who will potentially use it.@lepitts #leanimpact
  • 32. Let’s talk about assumptionsWe base a lot of our work on assumptions(it’s not just you, everyone does it)A few assumptions:• X group needs more information on Y (it’s an information problem)• Our donors want to hear more about X issue (we know our donors)• The best thing to help X group, is Y service (we know how to helpthem)@lepitts #leanimpact
  • 33. “No facts exist inside the building.Only opinions.”- Steve Blank, Author,The Startup Owner’s Manual@lepitts #leanimpact
  • 34. Getting out of the building• Putting the product or service in front of the people whowill actually use it• What happens when they use itWhat it’s not:• Online surveys• Phone calls• Polls• “Would you use this?”@lepitts #leanimpact
  • 35. Why get out of the building?By getting outside the building, you can get actual,actionable feedback, and minimize the risk that a product,service, campaign or program will fail by verifying yourtheories with actual customers.@lepitts #leanimpact
  • 36. IDEO.org• Creating a financial service program in Mexico• Started with a Minimum Viable Product@lepitts #leanimpact
  • 37. IDEO.org• Mocked up an ATM, using an iPad and plastic casing tocreate a “working” prototype.• Created a mockup “program” for the software usingKeynote presentation software.• Created sample brochures, manual SMS alerts@lepitts #leanimpact
  • 38. IDEO.org“Our concepts evolved a great deal by walking the Mexicanswe met with through our prototypes and hearing theirreactions. We were able to find out how quickly someoneunderstood the idea, whether a certain feature made sense,and figure out which elements needed to change. “- Patrice Martin, IDEO@lepitts #leanimpact
  • 39. The Conceptual Four WallsIt can also refer to looking beyond the conceptual “fourwalls” of your industry to learn from other industries andthings they’re doing.Ways to get outside the building:• Read blogs about technology or innovation• Read books about entrepreneurship• Watch TED talks• Go to a startup event or meetup• Attend a Startup Weekend event@lepitts #leanimpact
  • 40. P is for…PivotLean Impact www.leanimpact.org
  • 41. What is Pivoting?Pivot means significantly changing the direction of a productor service strategy. Organizations will pivot when a currentidea is not working or not getting traction, or when the MVPneeds significant improvement.@lepitts #leanimpact
  • 42. Lean Impact• Circa January 2013• Assumption: People will pay $20 for an online conference, to learnabout Lean Startup in the social good space• Minimum Viable Product:• Lining up a few speakers• Basic website• Eventbrite registration@lepitts #leanimpact
  • 43. Lean Impact• We sold 4 tickets• Assumption: DISPROVED@lepitts #leanimpact
  • 44. Lean Impact• Getting Out of the Building:• Reached out to potential attendees• Google Hangout feedback sessions• We learned that people needed an in-person experience@lepitts #leanimpact
  • 45. Lean Impact• We pivoted:• Planned launch parties in New York, DC and San Francisco• Each party had over 500 registrants and 300 people throughthe door• By creating an MVP , we saved money and had our answer in 60days• By Pivoting, we were able to create something that provided valueto our audience@lepitts #leanimpact
  • 46. Lean Impact@lepitts #leanimpact
  • 47. Lean for Social Good Summits@lepitts #leanimpact
  • 48. Pivot // Social Good Tech Week@lepitts #leanimpact
  • 49. In Summary• Using Lean principles:• Is less risk than investing months on something• Is easy to try, using the approach and tools here• Gives you quick data so you know whether to moveforwardMost people are quick to stop you before you get started,but hesitant to get in the way if you’re moving!@lepitts #leanimpact
  • 50. Resources & Programs• Read The Lean Startup by Eric Ries• Take a course• Udemy – The Lean Startup Course• Acumen Lean for Social Impact• Adopt a testing mindset@lepitts #leanimpact
  • 51. Further Reading• The Ultimate Dictionary of Lean for Social Good –leanimpact.org• What would The Lean Startup Look Like for Nonprofits?By Sasha Dichter• The Lean Startup by Eric Ries• Don’t Overthink It by Leah Neaderthal@lepitts #leanimpact
  • 52. Thanks!Leanne PittsfordCo-Founder, Lean Impactwww.leanimpact.orgLeanne@lesbianswhotech.org@lepitts@lepitts #leanimpact
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