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STOP THROWING MONEY OUT THE WINDOW 
@FlaviusStef, Mozaic Works 
v.2, includes design thinking
Me 
2001-2006 
Web Developer 
2007-2010 
Startup co-founder 
2011-2014 
Coach and Trainer 
Agile, Lean, Org. Change 
Follow me on Twitter 
More on Slideshare
1. WASTE 
2. LEAN STARTUP 
3. TECHNIQUES 
4. EXAMPLES 
5. PRINCIPLES
WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 
1. 
WASTE
Syneto WCF – Active Directory 
Cost to implement Total revenue 
50000 
40000 
30000 
20000 
10000 
0 
40000 
6700
The Tutorial 
Not the actual app 
2 months 
250 man-days 
Usage: - 30%
My claim 
MOST BUSINESSES WASTE MONEY BECAUSE 
THEY INVEST IN PRODUCTS OR FEATURES 
NOBODY WANTS!
Throwing money out the window? 
Build something nobody wants 
Build more than the users need 
Opportunity cost
More? 
The iPotty – Amazon Remote Headband – Inventorspot 
Shoe Umbrella – Luux
More? 
The Hair Hat – FlairHair 
Wheel Mate Steering 
Wheel Desk – Techeblog
WWee aassssuummee ttoooo mmuucchh 
Photo: itspaulkelly on Flickr 
People will understand how it works 
I need it, so the others do too 
I understand what the user needs 
The user won't be distracted 
The customers will want to pay 
It's useful to integrate with system <X>
WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 
2. 
LEAN STARTUP
Run 
experiments 
Ask question 
Do research 
Create hypothesis 
Design experiment 
Run experiment 
Analyze data 
Hypothesis false 
Photo: zhouxuan12345678 on Flickr 
yes
The lean startup
The lean startup 
But: 
- What to build? 
- How to measure? 
- What to learn?
Design Thinking 
Who is the 
user? 
What is 
their 
problem? 
How could 
we solve it? 
What's the 
MVP? 
Is it 
working?
BUILD 
MEASURE 
LEARN 
What is the problem? 
Who is our customer? 
What is the next step? 
Is it useful? 
Best alternative? 
What is the solution?
WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 
3. 
TECHNIQUES
LEARN 
What is the problem? 
Who is our customer? 
Interviews 
Shadowing 
Innovation Games 
Empathy map 
Lean Canvas 
Storytelling 
Olark, Qualaroo 
earlier 
later
LEARN 
EMPATHY MAP
OLARK, QUALAROO 
LEARN
LEAN CANVAS 
LEARN
What is the solution? What is the next step? 
BUILD 
Document Hypotheses 
Create business case 
Prioritized Backlog 
Lean Canvas 
MMF 
Concierge 
UI Sketches 
Incremental build 
earlier 
later
BUILD 
DOCUMENT HYPOTHESES 
We believe that (capability) 
Will result in (outcome) 
We will know we are right when we see 
(measurable impact)
BUILD 
DOCUMENT HYPOTHESES 
We believe that having a mobile homepage 
Will result in different usage based on the consumer's country 
We will know we are right when we see 
at least one country having 10% more mobile traffic
BUILD 
x 
x x 
x 
x 
Minimum Marketable Feature 
x x x 
x x
BUILD 
CONCIERGE
BUILD 
MEASURE 
Paper Prototyping 
Fake/Landing Page 
Analytics 
A/B testing 
Client Demos 
Track $$$ earned 
LEARN 
Is it useful? 
Best alternative? 
earlier 
later
BUILD 
FAKE/LANDING PAGE 
MEASURE LEARN
BUILD 
FAKE/LANDING PAGE 
MEASURE LEARN
BUILD 
PAPER PROTOTYPING 
MEASURE LEARN
ANALYTICS 
BUILD 
MEASURE LEARN
BUILD 
MEASURE LEARN 
ANALYTICS
Document Hypotheses 
Create business case 
Prioritized Backlog 
Interviews 
Shadowing 
Innovation Games 
Empathy map 
Lean Canvas 
Storytelling 
Olark, Qualaroo 
MVP 
Concierge 
UI Sketches 
Incremental build 
Paper Prototyping 
Fake/Landing Page 
Analytics 
A/B testing 
Client Demos 
Track $$$ earned 
BUILD 
MEASURE 
LEARN 
Lean Canvas
WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 
4. EXAMPLES
The Syneto Email Digest
B Wait for feedback 
M 
L 
B 
M 
L 
B 
M 
L 
2x Client Demo Needs no extra actions 
B 
L M 
Needs email digest (interview) 
License sales 
Profitable 
Needs minor tweaks 
5x Client Demo 
Req. GUI with 8 actions/email 
Review instrumentation logs 
Needs only 1 action 
L 
Basic CLI 
Improved CLI, released beta 
Built GUI with 4 functionalities 
Added one extra action 
Nothing more built 
B 
M 
L 
B 
M 
L
Initial list 
● Release Email 
● Delete Email 
● Whitelist Sender 
● Blacklist Sender 
● Release All 
● Delete All 
● Whitelist All 
● Blacklist All 
for each email for all emails
What we implemented 
● Release Email 
● Delete Email 
● Whitelist Sender 
● Blacklist Sender 
● Release All 
● Delete All 
● Whitelist All 
● Blacklist All 
for each email for all emails
What the customers asked for 
● Release Email 
● Delete Email 
● Whitelist Sender 
● Blacklist Sender 
● Release All 
● Delete All 
● Whitelist All 
● Blacklist All 
for each email for all emails
Let's do the math 
3 features x 2.5 days / feature = 7.5 days 
7.5 days x 115 EUR / day = 862.5 EUR 
Photo: xcode on Flickr
B 
Check # of registrations M 
L 
B 
M 
L 
B 
B 
M 
L M 
L 
Team retrospective 
“Something” for SMs 
NPS 
What's hot, what's not 
There is a need. 
Also received client req. 
Facilitation is important 
Interest validated 
Is there actually interest? 
~ 30 attendees 
Client accepted 
Interviews with existing clients 
L 
Leadership Workshop (2h) 
1d workshop structure 
Lean Canvas 
Built 1d 
Created 2d “official” structure 
Scheduled 2d for fall 
Second half 
B 
M 
L 
B 
M 
L 
TODAY
WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 
5. 
PRINCIPLES
Generate multiple alternatives 
DIVERGE CONVERGE
Don't listen to the HiPPO
Identify your assumptions 
Weather forecast 
In 10 days 
Clear
Follow the 80-20 rule 
New features Existing features
No measurement, no learning
Release early, release often 
Commit Automated 
acceptance 
UX testing 
User 
acceptance 
Scalability 
testing 
Production 
git push 
automated 
manual 
● Build (war, gems, 
minified js/css) 
● Run unit tests 
● Static analysis 
● Deploy artifacts 
CI Server 
monitors 
launches
WRAP-UP 1. Start by empathizing 
ex: Empathy Map 
2. Identify assumptions 
ex: Lean Canvas 
3. MMFs are minimal 
ex: Concierge 
4. Measure to learn 
ex: A/B testing 
5. Continue refining 
ex: Incremental development 
6. Follow the money 
B 
L M
… more?
THANK YOU! 
Twitter: @FlaviusStef 
Blog: flaviusstef.wordpress.com 
More slides: slideshare.net/fstef

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Stop throwing money out the window

  • 1. STOP THROWING MONEY OUT THE WINDOW @FlaviusStef, Mozaic Works v.2, includes design thinking
  • 2. Me 2001-2006 Web Developer 2007-2010 Startup co-founder 2011-2014 Coach and Trainer Agile, Lean, Org. Change Follow me on Twitter More on Slideshare
  • 3. 1. WASTE 2. LEAN STARTUP 3. TECHNIQUES 4. EXAMPLES 5. PRINCIPLES
  • 4. WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 1. WASTE
  • 5. Syneto WCF – Active Directory Cost to implement Total revenue 50000 40000 30000 20000 10000 0 40000 6700
  • 6. The Tutorial Not the actual app 2 months 250 man-days Usage: - 30%
  • 7.
  • 8. My claim MOST BUSINESSES WASTE MONEY BECAUSE THEY INVEST IN PRODUCTS OR FEATURES NOBODY WANTS!
  • 9. Throwing money out the window? Build something nobody wants Build more than the users need Opportunity cost
  • 10. More? The iPotty – Amazon Remote Headband – Inventorspot Shoe Umbrella – Luux
  • 11. More? The Hair Hat – FlairHair Wheel Mate Steering Wheel Desk – Techeblog
  • 12. WWee aassssuummee ttoooo mmuucchh Photo: itspaulkelly on Flickr People will understand how it works I need it, so the others do too I understand what the user needs The user won't be distracted The customers will want to pay It's useful to integrate with system <X>
  • 13. WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 2. LEAN STARTUP
  • 14. Run experiments Ask question Do research Create hypothesis Design experiment Run experiment Analyze data Hypothesis false Photo: zhouxuan12345678 on Flickr yes
  • 16. The lean startup But: - What to build? - How to measure? - What to learn?
  • 17. Design Thinking Who is the user? What is their problem? How could we solve it? What's the MVP? Is it working?
  • 18. BUILD MEASURE LEARN What is the problem? Who is our customer? What is the next step? Is it useful? Best alternative? What is the solution?
  • 19. WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 3. TECHNIQUES
  • 20. LEARN What is the problem? Who is our customer? Interviews Shadowing Innovation Games Empathy map Lean Canvas Storytelling Olark, Qualaroo earlier later
  • 24. What is the solution? What is the next step? BUILD Document Hypotheses Create business case Prioritized Backlog Lean Canvas MMF Concierge UI Sketches Incremental build earlier later
  • 25. BUILD DOCUMENT HYPOTHESES We believe that (capability) Will result in (outcome) We will know we are right when we see (measurable impact)
  • 26. BUILD DOCUMENT HYPOTHESES We believe that having a mobile homepage Will result in different usage based on the consumer's country We will know we are right when we see at least one country having 10% more mobile traffic
  • 27. BUILD x x x x x Minimum Marketable Feature x x x x x
  • 29. BUILD MEASURE Paper Prototyping Fake/Landing Page Analytics A/B testing Client Demos Track $$$ earned LEARN Is it useful? Best alternative? earlier later
  • 30. BUILD FAKE/LANDING PAGE MEASURE LEARN
  • 31. BUILD FAKE/LANDING PAGE MEASURE LEARN
  • 32. BUILD PAPER PROTOTYPING MEASURE LEARN
  • 34. BUILD MEASURE LEARN ANALYTICS
  • 35. Document Hypotheses Create business case Prioritized Backlog Interviews Shadowing Innovation Games Empathy map Lean Canvas Storytelling Olark, Qualaroo MVP Concierge UI Sketches Incremental build Paper Prototyping Fake/Landing Page Analytics A/B testing Client Demos Track $$$ earned BUILD MEASURE LEARN Lean Canvas
  • 36. WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 4. EXAMPLES
  • 38. B Wait for feedback M L B M L B M L 2x Client Demo Needs no extra actions B L M Needs email digest (interview) License sales Profitable Needs minor tweaks 5x Client Demo Req. GUI with 8 actions/email Review instrumentation logs Needs only 1 action L Basic CLI Improved CLI, released beta Built GUI with 4 functionalities Added one extra action Nothing more built B M L B M L
  • 39. Initial list ● Release Email ● Delete Email ● Whitelist Sender ● Blacklist Sender ● Release All ● Delete All ● Whitelist All ● Blacklist All for each email for all emails
  • 40. What we implemented ● Release Email ● Delete Email ● Whitelist Sender ● Blacklist Sender ● Release All ● Delete All ● Whitelist All ● Blacklist All for each email for all emails
  • 41. What the customers asked for ● Release Email ● Delete Email ● Whitelist Sender ● Blacklist Sender ● Release All ● Delete All ● Whitelist All ● Blacklist All for each email for all emails
  • 42. Let's do the math 3 features x 2.5 days / feature = 7.5 days 7.5 days x 115 EUR / day = 862.5 EUR Photo: xcode on Flickr
  • 43.
  • 44. B Check # of registrations M L B M L B B M L M L Team retrospective “Something” for SMs NPS What's hot, what's not There is a need. Also received client req. Facilitation is important Interest validated Is there actually interest? ~ 30 attendees Client accepted Interviews with existing clients L Leadership Workshop (2h) 1d workshop structure Lean Canvas Built 1d Created 2d “official” structure Scheduled 2d for fall Second half B M L B M L TODAY
  • 45. WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 5. PRINCIPLES
  • 46. Generate multiple alternatives DIVERGE CONVERGE
  • 47. Don't listen to the HiPPO
  • 48. Identify your assumptions Weather forecast In 10 days Clear
  • 49. Follow the 80-20 rule New features Existing features
  • 50. No measurement, no learning
  • 51. Release early, release often Commit Automated acceptance UX testing User acceptance Scalability testing Production git push automated manual ● Build (war, gems, minified js/css) ● Run unit tests ● Static analysis ● Deploy artifacts CI Server monitors launches
  • 52. WRAP-UP 1. Start by empathizing ex: Empathy Map 2. Identify assumptions ex: Lean Canvas 3. MMFs are minimal ex: Concierge 4. Measure to learn ex: A/B testing 5. Continue refining ex: Incremental development 6. Follow the money B L M
  • 54. THANK YOU! Twitter: @FlaviusStef Blog: flaviusstef.wordpress.com More slides: slideshare.net/fstef