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But many of those failures are preventable.
The Lean Startup is a new approach being adopted across the globe, changing the way companies are built and new products are launched. This is just as true for one person in a garage or a group of seasoned professionals in a Fortune boardroom. What they have in common is a mission to penetrate that fog of uncertainty to discover a successful path to a sustainable business.
The Lean Startup approach fosters companies that are both more capital efficient and that leverage human creativity more effectively.
It enables a company to shift directions with agility, altering plans inch by inch, minute by minute. Ries provides a scientific approach to creating and managing successful startups in a age when companies need to innovate more than ever.
He is a frequent speaker at business events, has advised a number of startups, large companies, and venture capital firms on business and product strategy, and is an Entrepreneur-in-Residence at Harvard Business School. He lives in San Francisco. Leia mais Leia menos.
Compre os itens selecionados juntos Este item: Enviado de e vendido por Amazon. The Hard Thing about Hard Things: Notes on Startups, or How to Build the Future.
How to Build Habit-Forming Products. Comece a ler The Lean Startup no seu Kindle em menos de um minuto. Detalhes do produto Capa dura: Crown Business 13 atartup setembro de Idioma: This often comes as a surprise to aspiring entrepreneurs, because their associations with these two words are so diametrically opposed. Entrepreneurs are rightly wary of implementing traditional management practices early on in a startup, afraid that they will invite bureaucracy or stifle creativity.
Enxutq have been trying to fit the square peg of their unique problems into the round hole of general management for decades. Asa result, many ejxuta take a “just do it” attitude, avoiding all forms of management, process, and discipline.
Unfortunately, this approach leads to chaos more often than it does to success.
The stxrtup success of general management over the last century has provided unprecedented material abundance, but those management principles are ill suited to handle the chaos and uncertainty that startups must face.
There are more entrepreneurs operating today than at any previous time in history. This has been made possible by dramatic changes inthe global economy. To site but one example, one often hears commentators lament the loss of manufacturing jobs in the United States over the previous two decades, but one rarely hears about a corresponding loss of manufacturing capability.
That’s because total manufacturing output in the United States is increasing by 15 percent in the last decade even as jobs continue to be lost see the charts below. In effect, the huge productivity increases made possible by modern management and technology have created more productive capacity than firms know what to do with.
Because we lack a coherent management paradigm for new innovative ventures, we’re throwing our excess capacity around with enuta abandon. Despite this lack of rigor, we are finding some ways to nexuta money, but for every success there are far too many failures: What makes these failures particularly sttartup is not shartup the economic damage done to individual employees, companies, and investors; they are also a colossal waste of our civilization’s most precious resource: The Lean Startup movement is dedicated to preventing these failures.
Lean thinking is radically altering the way supply chains and production systems are run. Among its tenets are drawing on the knowledge and creations of individual workers, the shrinking of batch sizes, just-in-time production and inventory control, and an acceleration of cycle times.
It taught the world the difference between value-creating activities and waste and showed how to build quality staftup products from the inside out. The Lean Startup adapts these ideas to the context of entrepreneurship, proposing that entrepreneurs judge their progress differently from the way other kinds sartup ventures do. Progress in manufacturing is measured by the production of high-quality physical goods. As we’ll see in Chapter 3, the Lean Startup uses a different unit of progress, called validated learning.
With scientific learning as our yardstick, we can discover enxhta eliminate the tremendous waste that is plaguing entrepreneurship. A comprehensive theory of entrepreneurship should address all the functions of an early-stage venture: It has to provide startup ventures with a method for measuring progress in the context of extreme uncertainty.
It can give entrepreneurs clear guidance on how to make the many trade-off decisions they face: Most of all, it must allow entrepreneurs to make testable predictions. For example, consider the recommendation that you build cross-functional teams and hold them accountable to what we call learning milestones instead of organizing your company into strict functional departments marketing, sales, information technology, human resources, etc.
Perhaps you agree with this recommendation, or perhaps you are skeptical. Either way, if you decide to implement it, I predict that you pretty quickly will get feedback from your teams that the new process is reducing their productivity. They will ask to go back to the old way of working, in which they had the opportunity to “stay efficient” by working in larger batches and passing work between departments. It’s safe to predict this result, and enxuga just because I have strtup it many times in the companies I work with.
It is a straightforward prediction of the Lean Startup theory itself. When people are used to evaluating their productivity locally, they feel that a good day is one in which they did their job well all day. When I worked as a programmer, that meant eight straight hours of programming without interruption.
That was a goodday. In contrast, if I was interrupted with questions, process, or—heaven forbid—meetings, I felt bad. What did I really accomplish that day?
The Lean Startup
Code and product features were tangible to me; I could see them, understand them, and show them off. Learning, by contrast, is frustratingly intangible. The Lean Startup asks people to start measuring their productivity differently.
Because startups ennxuta accidentally build something nobody wants, it doesn’t matter much if they do it on time and on budget. The goal of a startup is startuup figure out the right thing to build—the thing customers want and will pay for—as quickly as possible.
Etartup other words, the Lean Startup is a new way of looking at the development of innovative new products that emphasizes fast iteration and customer insight, a huge vision, and great ambition, all at the same time. Since the idea of management has been bound up with the history of the automobile since its first days, I believe it is fitting to use the automobile as a metaphor for a startup.
An internal combustion automobile is powered by twoimportant and very different feedback loops. The first feedback loop is deep inside the engine. He spent his days and nights tinkering in his garage with the enxutaa mechanics of getting the engine cylinders to move.
Each tiny explosion within the starthp provides the motive force to turn the wheels but also drives the ignition of the next explosion. Unless the timing of this feedback loop is managed precisely, the engine will sputter and break down. Startups have a similar engine that I call the engine of growth. The markets and customers for startups are diverse: Every new version of a product, every new feature, and every new marketing program is an attempt to improve this engine of growth.
Like Henry Ford’s tinkering in startp garage, not all of these changes turn out to be improvements. New product development happens in fits and starts.
The Lean Startup | The Movement That Is Transforming How New Products Are Built And Launched
Much of the time in a startup’s life is spent tuning the engine by making improvements in product, marketing, or operations. The second important feedback enzuta in an automobile is between the driver and the steering wheel. This feedback is so immediate and automatic that we often don’t think about it, but it is steering that differentiates driving from most other forms of transportation. If you have a daily commute,you probably know the route so well that your hands seem to steer you there on their own accord.
Enxut can practically drive the route in our sleep. Yet if Iasked you to close your eyes and write down exactly how to get to your office—not the street directions but every action you need to take, every push of hand on wheel and foot on pedals—you’d find it impossible. The choreography of driving is incredibly complex when one slows down to think about w. By contrast, a rocket ship requires just this kind of in-advance calibration. It must be launched with the most precise instructions on what to do: The tiniest error at the point of launch could yield catastrophic results thousands of miles later.
Unfortunately, too many startup business plans look more like they are planning to launch a rocket ship than drive a car. They prescribe the steps to take and the results to expect in excruciating detail, and as in planning to launch a rocket, they are set up in such a way that even tiny errors in assumptions can lead to catastrophic outcomes. One company I worked with had the misfortune of forecasting significant customer adoption—in the millions—for one of its new products.
Powered by a splashy launch, the company successfully executed its plan. Unfortunately, customers did not flock to the product in great numbers.
Even worse, the company had invested in massive startpu, hiring, and support to handle the influx of customers it expected. When the customers failed to materialize, the company had committed itself so completely that they could not adapt in time.
They had “achieved failure”—successfully, faithfully, and rigorously executing a plan that turned out to sgartup been utterly flawed. The Lean Startup method, in contrast, is designed to teach you how to drive a startup. Instead of making complex plans that are based on a lot of assumptions, you can make constant adjustments starfup a steering wheel called the Build-Measure-Learn feedback loop. Startjp this process of steering, we can learn when and if it’s time to make a sharp turn called a pivot or whether we should persevere along our current path.
Once we have an engine that’s revved up, the Lean Startup offers methods to scale and grow the business with maximum acceleration. Throughout the process of driving, you always have a clear idea of where you’re going.
If you’re commuting to work, you don’t give up because there’s a detour in the road or you made a wrong turn. You remain thoroughly focused on getting to your destination. Startups also have a true north, a destination in mind: I call that a startup’s vision.