Thanks everyone who attended this PMI Silver Spring Chapter meeting. Feel free to favorite this if you like it. Note: Be sure to look for Easter eggs for insider details. Abstract Since Eric Ries published his book “The Lean Startup” in 2011, many companies have embraced this method to create new businesses and products. Hector Del Castillo will discuss how you can apply these principles to take a structured approach to create a business and build products to accelerate business growth. Hector will share a few case studies of successes and failures, discuss what he’s observed that’s new and different to accelerate business growth by focusing on creating a sustainable competitive advantage. He will focus on the importance of managing key resources, key activities and tasks needed to implement strategic objectives in a lean startup organization. This discussion will focus on how lean startup methodology can help entrepreneurs, advisers and investors launch a new company and accelerate business growth. About Hector Del Castillo Hector Del Castillo helps executives, senior managers and entrepreneurs transform ideas into a great business. He also helps founders, entrepreneurs, inventors, makers, investors, business leaders and community leaders connect, share, and learn from each other to create products customers love. Connect with Hector to learn more about how you can get involved. Hector is a Certified Product Manager (CPM®) and Certified Product Marketing Manager (CPMM®). He earned M.S. degrees in Electrical Engineering from the University of California at Santa Barbara and the University of Texas at El Paso and a Bachelor’s Degree in Electrical Engineering from the University of Texas at El Paso. Consultation Appointment Need help transforming your product idea into a great business? Set up a free initial 30-minute consultation appointment and let me know how I can help you grow your business, resolve a business challenge, or accelerate your career growth. Learn more at http://bit.ly/1heVQiK. You can connect with me at http://linkd.in/hdelcastillo. I look forward to hearing from you. Regards, Hector Del Castillo Connect: http://linkd.in/hdelcastillo Follow: @hmdelcastillo

1. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Hector Del Castillo
linkd.in/hdelcastillo

2. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Follow: @AIPMM @hmdelcastillo
Use: #LeanStartup
Tweet!

3. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Participate and Win!
Must be present to win!
One lucky winner will get a free copy of
the Guide to the Product Management and
Marketing Body of Knowledge (ProdBOK®)

4. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
What We Will Discuss
• Introduction
• Benefits of Lean Startup
• Lean Startup Methodology
• What Lean Startups Do Differently
• Case studies
• Q & A

5. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Why adopt Lean Startup?

6. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Nearly 75% of venture-
supported startups fail.
- Shikhar Ghosh
Source: “The Venture Capital Secret: 3 Out of 4 Start-Ups Fail,” Deborah Gage, Wall
Street Journal, Sep 20, 2012

7. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Provides a scientific
approach to creating and
managing successful
startups.

8. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Company Dropbox, Inc.
Initial release September 2008
Stable release 2.10.27 (July 31, 2014; 11 days ago
[1]
) [±]
Preview release 2.11.6 (August 6, 2014; 5 days ago
[1]
) [±]
Development status Active
Written in Python
[2]
, Go
[3]
Operating system Microsoft Windows, Mac OS X, Linux, iOS, Android,Symbian, BlackBerry OS, MeeGo
Haarmattan
Type Online backup service
License Proprietary software (Windows & Mac clients and Linux Dropbox daemon),
CombinedGPLv2/Proprietary
[4]
(Linux Nautilus)
Alexa rank 112 (June 2014)
[5]
Website dropbox.com
Source: Wikipedia. Dropbox @ Startup Lessons Learned Conference 2010

9. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
What’s a Startup?

10. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
“A startup is an organization
formed to search for a repeatable
and scalable business model.”
- Steve Blank

11. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
“An organization dedicated to
creating something new under
conditions of extreme
uncertainty.”
- Eric Ries

12. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Howwellcanyoupredictresults?
+
Complexity
Situation has many
interconnected parts. Some
information is available or
can be predicted, but the
volume can be
overwhelming to process.
Volatility
Situation is unexpected or
unstable and may be of
unknown duration, but it’s
not necessarily hard to
understand. Information is
often readily available.
-
Ambiguity
Causal relationships are
completely unclear. No
precedents exist; you face
“unknown unknowns.”
Uncertainty
Despite a lack of some
information, the situation’s
cause and effect are known.
Change is possible but not a
given.
- +
How much do you know about the problem?
Source: Nathan Bennett and G. James Lemoine “What VUCA Really Means For You,”
Harvard Business Review, Jan 2014

13. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
What’s Lean Startup?

14. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
A method for building new
businesses and launching
new products.

15. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Changes Emphasis
• Experimentation
• Customer Feedback
• Iterative Design
• Elaborate Planning
• Intuition
• Waterfall Design
Lean Startup Traditional

16. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Five Key Principles
1. Entrepreneurs are everywhere.
2. Entrepreneurship is management.
3. Practice validated learning.
4. Set up Build-Measure-Learn process.
5. Use innovation accounting system.
Source: Ries, Eric (2011-09-13). “The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful
Businesses,” Crown Publishing Group.

17. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Vision
1. Start
2. Define
3. Learn
4. Experiment
Steer
5. Leap
6. Test
7. Measure
8. Pivot (or
Persevere)
Accelerate
9. Batch
10. Grow
11. Adapt
12. Innovate
Source: Ries, Eric (2011-09-13). “The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful
Businesses,” Crown Publishing Group.

18. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Vision
Product
Strategy
Optimization
Pivot
Change
Source: Ries, Eric (2011-09-13). “The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful
Businesses,” Crown Publishing Group.

19. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo
Pivot = A change in strategy
without a change in
vision

20. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo
Company Intuit Canada
Type Unlimited liability corporation
Industry Computer software
Founded Edmonton (1992)
Founder(s) Bruce Johnson, Chad Frederick
Headquarters Mississauga, Ontario, Canada
Products Personal finance, accounting and tax return software
Parent Intuit
Source: Wikipedia.

21. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
What Lean Startups Do
Differently

22. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
1. Sketch Their Hypothesis
Source: Blank, Steve, “Why The Lean Startup Changes Everything,” Harvard Business Review, May 2013.

23. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
2. Seek Customer Feedback
Source: Blank, Steve, “Why The Lean Startup Changes Everything,” Harvard Business Review, May 2013.

24. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
“We must learn what customers
really want, not what they say
they want or what we think they
should want.”
- Eric Ries

25. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo
3. Develop Quickly and Responsively
Source: Blank, Steve, “Why The Lean Startup Changes Everything,” Harvard Business Review, May 2013.

26. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo
4. Customers Decide What’s MVP
Minimum Viable Product?Target Customer
Core
Actual
Whole

27. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo
5. Use Metrics To Pivot

28. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo
Market Customer
Business Organization
Product
Source: ProdBOK® Knowledge Areas
Customer /Market Development
Product Development/Improvement

29. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo
Company Evernote Corporation
Stable release 5.5.2.4187 / 24 July 2014; 18 days ago
Development status Active
Operating system
Microsoft Windows, OS X, Chrome OS, Android, BlackBerry OS, BlackBerry
Tablet OS, iOS, webOS, Windows Mobile, Windows Phone
Type Notetaking software
License Freemium
Alexa rank 468 (June 2014)
[1]
Website evernote.com
Source: Wikipedia.

30. © 2014 Hector Del Castillo, All Rights Reserved http://linkd.in/hdelcastillo
Warnings
• A business model is not a replacement for a
business plan
• Understand the whole product not just features
• Beware of burning out your product team seeking
to achieve MVP too quickly
• Don’t skimp on product architecture
• Ensure your exit strategy rewards executives,
managers, and collaborators who helped your
company succeed

31. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Key Takeaways
• Provides a scientific approach1
• Adopt a learning process2
• Emphasizes process adoption3
• Highlights customer feedback4
• Focus on responsive development5
• Use metrics to pivot6
• Allows a business to quickly scale7

32. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Poll

33. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Hector Del Castillo
• Senior consultant with over 15 years of experience transforming
products to wealth for technology companies
• AIPMM Body of Knowledge (ProdBOK®) Contributor
• Established companies
– Jet Propulsion Laboratory, Lucent Technologies, MEI Technologies
• Small companies and startups
– Nextone Communications, Smith Micro Software
• Launched 30+ Products for global deployment
– HW/SW, Telecom, Enterprise Mobility, Information Security
Services, Professional Development
• Certified PMP®, CPM® and CPMM®
• University of California at Santa Barbara, MS EE
• University of Texas at El Paso, MS EE, BS EE
36

34. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Q & A
Hector Del Castillo, CPM, CPMM
Product Innovation Consultant
linkd.in/hdelcastillo
@hmdelcastillo
hmdelcastillo@gmail.com

35. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Need Assistance?
Need help transforming your product idea
into a great business?
Set up a free initial 30-minute consultation
appointment and let me know how I can
help you. Learn more at:
http://bit.ly/1heVQiK

36. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Upcoming Events
Project Management Day of Service, Jan 19, 2015
PMI is serving those who serve others. We are seeking passionate leaders to plan and coordinate
a community outreach event of unprecedented scale to benefit charities and nonprofit
organizations working to improve society. Don’t miss this chance to serve your community,
interact with like-minded PMs, sharpen your leadership skills, and earn PDUs; apply now! Learn
more here: http://bit.ly/pmdos15.
2014 Project Management Symposium, Sep 26th
This forum is focused on developing skills for project managers through professional
development. You can earn up to 7 PDUs throughout the day. It is also an opportunity for
employers to meet experienced project managers seeking new career opportunities, and
matching interests and expertise to their needs. Learn more here: http://bit.ly/1q2gwJG.
ProductCamp DC, Oct 11th
This is a user-driven, collaborative event for product leaders that are passionate about creating
great products customers love. Admission is free, but you must RSVP. Learn more here:
http://productcampdc.org/.
Interested in increasing your brand awareness? Interested in reaching a targeted
audience? Contact me at hmdelcastillo@gmail.com.

37. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Upcoming Learning Opportunity
Oct 30-31, 2014 – Bethesda, MD
Course Preview
Learn more here: http://bit.ly/CILCourse.
Interested in attending this course at a convenient
location near you? Contact us.

38. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Upcoming Courses
Certified Product Manager®
Sep 8-9, 2014 – Boston Metro Area
Dec 8-9, 2014 – DC Metro Area
Certified Product Marketing Manager®
Sep 10-11, 2014 – Boston Metro Area
Dec 10-11, 2014 – DC Metro Area
Click on the dates above for more information.
If you have a team of 10 or more that you want to
certify, contact us.

39. © 2014 Hector Del Castillo, Creative Commons Attribution License http://linkd.in/hdelcastillo
Please Join Us Again!
Meetup: Building A Startup Ecosystem For Economic Growth Aug 18th
Meetup: DC Lean Startup Mentor Panel (Braintrust) Aug 20th
Webcast: Transform Your Career With An AIPMM Certification Aug 21st
AIPMM Webinar Series:
http://aipmm.com/aipmm_webinars
Global Product Management Talk
http://www.blogtalkradio.com/prodmgmttalk
Call For Speakers: http://www.boldpm.com/call_for_speakers
Topic Suggestions: support@aipmm.com
Announcements: http://www.aipmm.com/subscribe
LinkedIn: http://www.linkedin.com/company/aipmm
Membership: http://www.aipmm.com/join.php
Certification: http://aipmm.com/html/certification/