Why did you decide to choose this resource?
‘Lean Startup’ by Eric Ries comes highly recommended to any entrepreneur. The book is beneficial to the beginner by teaching guiding principles on how to create a company and why companies fail. It is also important as a reference to the experience founder to remind them of the concepts they may have forgotten through the progress of running a business.
What did you learn from it?
The book centers on a central question “How can we build a sustainable organization around a new set of products or services?” In order to answer this question, Eric teaches that failure must be an option. An organization must handle failure in the proper way and indeed learn from past mistakes in order to grow. Organizations also must strive to learn that which is currently unknown and be able to construct successful projects to make the unknown a reality. Finally, the book teaches that an organization must have a growth process through Validated Learning. Validate Learning is the process of verifying teams in an organization are learning continually and applying that learning to faster quality results. Validated Learning is measured by Innovation Accounting which establishes a process to hold teams accountable to project success and establish a module for future success.
- Entrepreneurs are Everywhere
- Entrepreneurship is Management
- Validated Learning
- Innovation Accounting
How are you using what you learned?
Our Company is already deeply rooted in the Lean Startup. The more I read the concepts of this book, the more I realized why our CEO has aligned our company this way. I have also seen our company revenue results grow as a result of following the principles in this book with greater intensity. The book teaches about Continuous Integration being a powerful cornerstone of any company (not just software shops). Continuous Integration and professionalized development are top themes for the companies R/d & Product Services divisions.
How can we as a company or individuals in the company use this?
- The book provides many principles on how to learn what works and discard what doesn’t
Innovation accounting allows a team to:
- Build a model of customer behavior over time
- Use that model to change the product/service and change customer behavior
- Ergo, establish facts about validity of the vision and if it is sustainable
The three major learning milestones in innovation accounting are:
- Building an MVP and establishing a baseline and feedback loop with customers
- Run experiments on the MVP to move from baseline customer behaviors to ideal customer behaviors
- Decision point — persevere or pivot based on what has been learned