If there were to be a single word that describes the Lean Startup methodology, I’d vote for “Pivot.” However, “Pivot” is one of the most abused terms in the lexicon of a Lean Startup. In his book, “The Lean Startup,” Eric Ries notes: “A pivot is a special kind of change designed to test a new fundamental hypothesis about the product, business model, and engine of growth.” He then lists 10 types of pivots that can occur in a startup. He suggests that startups should have regular “Pivot or Persevere” meetings. The typology of pivots is strongly tied to the building blocks and profit logic of a business model. However, Ries does not illustrate the typology of pivots especially within the framework and profit logic of a business model. This presentation on the 3-Act Business Model Storyboard visually organizes the 10 types of pivots within the profit logic of a business model; see http://goo.gl/MorILv . Consequently, one can see how a pivot in one part of a business model affects other parts of the Lean Startup’s business model. The Business Model Storyboard also indicates why it’s difficult to make pivots or structural changes in established business models; I describe this phenomenon as “Pivot Inertia (PI).” Pivot Inertia is responsible for the demise of once established firms such as Blockbuster and Borders. Overcoming Pivot Inertia is critical for the success of both startups and established businesses. Google, PayPal, and Groupon all overcame Pivot Inertia and made a fortune. Finally, there is a template of the Business Model Storyboard that facilitates application of the Lean Startup Method. In particular, the Business Model Storyboard facilitates the process of formulating, testing, and validating business model hypotheses of Lean Startups. Using the Business Model Storyboard should make easier the understanding, planning, and execution of pivots in both startups and established companies. Rod.

1.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
Product
Innova-on
Customer
Development
Innova-on
Accoun-ng
Job-­‐To-­‐
Get-­‐Done
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
FOR
LEAN
STARTUP
PIVOTS
Lean
Startup
Planning,
Modeling,
and
Execu6on
(LSPME)

2.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
Product
Innova-on:
BUILD
Customer
Development:
MEASURE
Innova-on
Accoun-ng:
LEARN
Job-­‐To-­‐
Get-­‐Done
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
FOR
LEAN
STARTUP
PIVOTS
Lean
Startup
Planning,
Modeling,
and
Execu6on
(LSPME)

3.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
Product
Innova-on:
BUILD
Customer
Development:
MEASURE
Innova-on
Accoun-ng:
LEARN
Job-­‐To-­‐
Get-­‐Done
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
FOR
LEAN
STARTUP
PIVOTS
Lean
Startup
Planning,
Modeling,
and
Execu6on
(LSPME)

4.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
Product
Innova-on:
BUILD
Customer
Development:
MEASURE
Innova-on
Accoun-ng:
LEARN
Job-­‐To-­‐
Get-­‐Done
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
FOR
LEAN
STARTUP
PIVOTS
Lean
Startup
Planning,
Modeling,
and
Execu6on
(LSPME)

5.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
Product
Innova-on:
BUILD
Customer
Development:
MEASURE
Innova-on
Accoun-ng:
LEARN
Job-­‐To-­‐
Get-­‐Done
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
FOR
LEAN
STARTUP
PIVOTS
Lean
Startup
Planning,
Modeling,
and
Execu6on
(LSPME)

6.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
Product
Innova-on:
BUILD
Customer
Development:
MEASURE
Innova-on
Accoun-ng:
LEARN
Job-­‐To-­‐
Get-­‐Done
VISION
(Problems/Plan/Ideas)
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
FOR
LEAN
STARTUP
PIVOTS
Lean
Startup
Planning,
Modeling,
and
Execu6on
(LSPME)
PRODUCT
(Op6miza6on)
STRATEGY
(Emergent;
Pivot)

7.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
FOR
LEAN
STARTUP
PIVOTS
10
Pivots:
Based
on
Eric
Ries’s
Catalog
of
Pivots
in
his
book,
“The
Lean
Startup”
Product/Value
ProposiWon
q Zoom-­‐in
Pivot
q Zoom-­‐out
Pivot
q PlaYorm
(Total
SoluFon)
Pivot
Channels
&
RelaWonships
q Channel
Pivot
q Engine
of
Growth
Pivot
Customer/Job-­‐To-­‐Get-­‐Done
q Customer
Segment
Pivot
q Customer
Need
Pivot
require(s)
require(s)
Inputs/Partners
Internal
Resources
q Business
Architecture
Pivot
q Technology
Pivot
Processes/AcWviWes
require(s)
affect(s)
require(s)
deliver(s)
Cost
(Pain)
Revenue
(Delight)
q Value
Capture
Pivot
PROFIT
(VALUE)
requires
drive(s)
delights
delight(s)
delight(s)
Product
Innova-on:
BUILD
Customer
Development:
MEASURE
Innova-on
Accoun-ng:
LEARN
(Problem-­‐SoluFon
Fit;
Product-­‐Market
Fit)
Job-­‐To-­‐
Get-­‐Done
VISION
(Problems/Plan/Ideas)
PRODUCT
(Op6miza6on)
STRATEGY
(Emergent;
Pivot)

8.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
OF
OPTIONS
FOR
LEAN
STARTUP
PIVOTS
Generic
Pivot
PaPerns
for
the
Business
Model
of
a
Lean
Startup
(Based
on
A.
Osterwalder
and
Y.
Pigneur’s
book,
“Business
Model
GeneraFon”)
Product/Value
ProposiWon
q Single
Product
or
Service
q Bundled
Product
or
Service
q Value
Proposi6on:
Luxury;
DisrupWon/Lean;
Blue
Ocean
Channels
&
RelaWonships
q Online;
Automated
q Offline;
Sales
Force
q Direct:
No
Intermediary
q Indirect
Retailers/Distributors
Customer/Job-­‐To-­‐Get-­‐Done
q High-­‐end
(Luxury)
Market
q Low-­‐end
(Mass)
Market
q Niche/Segmented
Market
q Bilateral/MulWsided
Market
require(s)
require(s)
Inputs/Partners
q Strategic
Alliances
q Joint
Ventures
q “CoopeWtors”
q Exclusive
Buyer-­‐Supplier
Internal
Resources
q Physical
Resources
q Intellectual
Resources
q EmoWonal
Resources
q Spiritual
Resources
Processes/AcWviWes
q Problem
Solving
(ConsulWng)
q ProducWon
(Manufacturing)
q PlaYorm/Network
Manage-­‐
ment;
ExtracWon
require(s)
affect(s)
require(s)
deliver(s)
Cost
(Pain)
q Low
Cost;
No-­‐frills;
Minimum
Viable
Cost
q Value-­‐driven
Cost
q Total
SoluWon
Cost
Revenue
(Delight)
q Asset
(Product)
Sale
q Usage
Fee;
Rent;
Lease
q SubscripWon;
Ads;
Free
q Licensing;
Brokerage
PROFIT
(VALUE)
q High
Profit
Margin;
Low
Velocity
q Low
Profit
Margin;
High
Velocity
requires
drive(s)
delights
delight(s)
delight(s)
(Problem-­‐SoluFon
Fit;
Product-­‐Market
Fit)
Job-­‐To-­‐
Get-­‐Done
Product
Innova-on:
BUILD
Customer
Development:
MEASURE
Innova-on
Accoun-ng:
LEARN
VISION
(Problems/Plan/Ideas)
PRODUCT
(Op6miza6on)
STRATEGY
(Emergent;
Pivot)

9.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL:
COST
REDUCTION
VALUE
PROPOSITION
MODEL:
REVENUE
INCREASE
Inputs/Partners
q Co-­‐creaFon;
Social
Media
q Open
Source
CollaboraFon
q Crowd-­‐funding/sourcing
q FracFonalizaFon/Co-­‐owner
q Investor/Sponsor/Donor
q Mergers
&
AcquisiFons
Internal
Resources
(Physical/Intellectual/Emo6onal/
Spiritual
Resources)
q Creator;
Broker;
Landlord
q Peer-­‐to-­‐Peer
PlaYorm
q Facilitated
Network
q Patents
(“Fences”;
Barriers)
Processes/AcWviWes
q OperaFonal
Excellence;
JIT
q AutomaFon
(Self-­‐service/DIY)
q GamificaFon;
DigitalizaFon
q Ecosystem
Management
q Problem
Solving;
ConsulFng
q CompeFFve
Strategies
Product/Value
ProposiWon
q Asset
Sale/Direct
Sale
q Product
Leadership/Extension
q Used/2nd
Hand
Product;
Bargain
q CustomizaFon
(Value
Factors)
q Bundling/Unbundling
q Product/So_ware
as
a
Service
Channels
&
RelaWonships
q Offline/Online;
(In)direct
Sale
q Franchise;
Licensing;
Affiliates
q Distributor;
Disintermediator
q Ad
Network;
Brand
MulFplier
q AggregaFon/DisaggregaFon
q AucFon/Reverse
AucFon
Customer/Job-­‐To-­‐Get-­‐Done
q Customer
InFmacy/Loyalty
q B2B;
B2C
q Long
Tail;
Community
(Hub)
q Two-­‐sided
Market
(Segments)
q MulF-­‐sided
Market
(PlaYorm)
q Luxury/Mass
Market/Niche
Cost
(Pain)
q Outsourcing;
SpecializaFon
q Group
Deals
q Lending/RenFng/Leasing
q Cross-­‐subsidizaFon
q FracFonalizaFon/Co-­‐owner
Revenue
(Delight)
q Pre-­‐payment;
AmorFzaFon
q Discount;
Dynamic
Pricing
q Razor
Blade
(“Bait
&
Switch”)
q Usage
Fee;
SubscripFon
Fee
q Tiered
Payment;
Freemium
q DonaFon;
Free
PROFIT
(VALUE)
q Shared
Value
(Profit)
q Transient
CompeFFve
Adv.
q Sustainable
CompeFFve
Adv.
q Red
Ocean;
Low
Cost/Margin
q Blue
Ocean;
Luxury
Spot
q DisrupFon/Lean
Spot
PROFIT
MODEL:
PROFIT
INCREASE
51
BUSINESS
PROFIT
PATTERNS
(Specific
Pivot
PaPerns)

10.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
FOR
LEAN
STARUP
PLANNING,
MODELING,
AND
EXECUTION
Lean
Startup
Roadmap
for
Visually
Planning,
Modeling,
and
Execu6ng
the
Strategy
of
a
Lean
Startup
(Based
on
Eric
Ries’s
Book,
“The
Lean
Startup”)
Product/Value
ProposiWon
Channels
&
RelaWonships
Customer/Job-­‐To-­‐Get-­‐Done
require(s)
require(s)
Inputs/Partners
Internal
Resources
Processes/AcWviWes
require(s)
affect(s)
require(s)
deliver(s)
Cost
(Pain)
Revenue
(Delight)
PROFIT
(VALUE)
requires
drive(s)
delights
delight(s)
delight(s)
(Problem-­‐SoluFon
Fit;
Product-­‐Market
Fit)
Job-­‐To-­‐
Get-­‐Done
Product
Innova-on:
BUILD
Customer
Development:
MEASURE
Innova-on
Accoun-ng:
LEARN
VISION
(Problems/Plan/Ideas)
q Engagement
q AcquisiFon;
AcFvaFon
q RetenFon;
Referral;
Revenue
PRODUCT
(Op6miza6on)
STRATEGY
(Emergent;
Pivot)

11. Which
Canvas
or
Storyboard
to
Use
for
Lean
Startup
Planning,
Modeling,
and
Execu-on?

12.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
Tree
Template
Product/Value
ProposiWon
Channels
&
RelaWonships
Customer/Job-­‐To-­‐Get-­‐Done
Inputs/Partners
Internal
Resources
Processes/AcWviWes
Cost
(Pain)
Revenue
(Delight)
PROFIT
(VALUE)
Job-­‐To-­‐
Get-­‐Done
Product
Innova-on:
BUILD
Customer
Development:
MEASURE
Innova-on
Accoun-ng:
LEARN
VISION
(Problems/Plan/Ideas)
PRODUCT
(Op6miza6on)
STRATEGY
(Emergent;
Pivot)

13.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
9
Types
of
Unknowns,
Indeterminacies,
or
Risks
in
a
Lean
Startup
Product/Value
ProposiWon
Channels
&
RelaWonships
Customer/Job-­‐To-­‐Get-­‐Done
Inputs/Partners
Internal
Resources
Processes/AcWviWes
Cost
(Pain)
Revenue
(Delight)
PROFIT
(VALUE)
Job-­‐To-­‐
Get-­‐Done
Product
Innova-on:
BUILD
Customer
Development:
MEASURE
Innova-on
Accoun-ng:
LEARN
VISION
(Problems/Plan/Ideas)
PRODUCT
(Op6miza6on)
STRATEGY
(Emergent;
Pivot)

14.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
Network
Template
Product/Value
ProposiWon
Channels
&
RelaWonships
Customer/Job-­‐To-­‐Get-­‐Done
require(s)
require(s)
Inputs/Partners
Internal
Resources
Processes/AcWviWes
require(s)
affect(s)
require(s)
deliver(s)
Cost
(Pain)
Revenue
(Delight)
PROFIT
(VALUE)
requires
drive(s)
delights
delight(s)
delight(s)
(Problem-­‐SoluFon
Fit;
Product-­‐Market
Fit)
Job-­‐To-­‐
Get-­‐Done
Product
Innova-on:
BUILD
Customer
Development:
MEASURE
Innova-on
Accoun-ng:
LEARN
VISION
(Problems/Plan/Ideas)
PRODUCT
(Op6miza6on)
STRATEGY
(Emergent;
Pivot)

15.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
9
Types
of
Unknowns,
Indeterminacies,
or
Risks
in
a
Lean
Startup
Product/Value
ProposiWon
Channels
&
RelaWonships
Customer/Job-­‐To-­‐Get-­‐Done
require(s)
require(s)
Inputs/Partners
Internal
Resources
Processes/AcWviWes
require(s)
affect(s)
require(s)
deliver(s)
Cost
(Pain)
Revenue
(Delight)
PROFIT
(VALUE)
requires
drive(s)
delights
delight(s)
delight(s)
(Problem-­‐SoluFon
Fit;
Product-­‐Market
Fit)
Job-­‐To-­‐
Get-­‐Done
Product
Innova-on:
BUILD
Customer
Development:
MEASURE
Innova-on
Accoun-ng:
LEARN
VISION
(Problems/Plan/Ideas)
PRODUCT
(Op6miza6on)
STRATEGY
(Emergent;
Pivot)

16.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
Elements
and
Profit
Logic
of
Osterwalder
&
Pigneur’s
Business
Model
Canvas
Product/Value
ProposiWon
q Value
ProposiWon
(VP)
Channels
&
RelaWonships
q Channels
(CH)
q Customer
RelaWonships
(CR)
Customer/Job-­‐To-­‐Get-­‐Done
q Customer
Segment
(CS)
require(s)
require(s)
Inputs/Partners
q Key
Partners
(KP)
Internal
Resources
q Key
Resources
(KR)
Processes/AcWviWes
q Key
AcWviWes
(KA)
require(s)
affect(s)
require(s)
deliver(s)
Cost
(Pain)
q Cost
Structure
(C$)
Revenue
(Delight)
q Revenue
Streams
(R$)
PROFIT
(VALUE)
requires
drive(s)
delights
delight(s)
delight(s)

17.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
Elements
and
Profit
Logic
of
Ash
Maurya’s
Lean
Canvas
Product/Value
ProposiWon
q
Unique
Value
ProposiWon
q
SoluWon
Channels
&
RelaWonships
q
Channels
Customer/Job-­‐To-­‐Get-­‐Done
q
Customer
Segment
q
Problem
(Trade-­‐off)
require(s)
require(s)
Inputs/Partners
Internal
Resources
q
Unfair
Advantage
Processes/AcWviWes
require(s)
affect(s)
require(s)
deliver(s)
Cost
(Pain)
q
Cost
Structure
Revenue
(Delight)
q
Revenue
Streams
PROFIT
(VALUE)
q Key
Metrics
requires
drive(s)
delights
delight(s)
delight(s)
(Problem-­‐SoluFon
Fit;
Product-­‐Market
Fit)

18.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
3-­‐ACT
BUSINESS
MODEL
STORYBOARD
Elements
and
Profit
Logic
of
Mark
Johnson’s
4-­‐Box
Business
Model
Product/Value
ProposiWon
q
Customer
Value
ProposiWon
Channels
&
RelaWonships
Customer/Job-­‐To-­‐Get-­‐Done
require(s)
require(s)
Inputs/Partners
Internal
Resources
q
Key
Resources
Processes/AcWviWes
q
Key
Processes
require(s)
affect(s)
require(s)
deliver(s)
Cost
(Pain)
Revenue
(Delight)
PROFIT
(VALUE)
q
Profit
Formula
requires
drive(s)
delights
delight(s)
delight(s)

19. Past
Reality
Present
Reality
Future
Reality
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h:p://businessmodels.ning.com
&
h:p://twi:er.com/RodKuhnKing
Strategy
Short/Medium/Long-­‐term
WHAT
to
pivot?
TO
WHAT
to
pivot?
WHY
pivot?
3-­‐ACT
BUSINESS
MODEL
PLAN
4
Pivot
Ques6ons
&
Unique
Kanban
Board
HOW
to
pivot?
Date:
………………………………..
Vision
Product