lean startup in the enterprise, aubrey smith
TRANSCRIPT
4
Strategys MakerBotFocus
Strategy
Market, Problems, Solutions
People
Products
Process
Accountability
Culture
Tomorrow
Grow
Unknown
Entrepreneurs
Disruptive
Iterative and Responsive
Innovation Account and Funding
Discover
Today
Optimize
Known
MBAs
Core Focused
Linear Command & Control, Rules, Efficient
Traditional Accounting
Execution
5
The Big vs. The Small
SCALE DISTRIBUTION NETWORK PROCESS EXPERITSE
FOCUS SIMPLICITY TALENT SPEED TRUTH
Recreate
Enterprise Growth DesertEnterprise Growth Desert
Companies are dying
faster than ever before.
Technology has changed the playing
field.
Competitors are from new places and unfamiliar industries.
Lean Startup in the Enterprise | Aubrey Smith 9
10
ExternalitiesEasy to Blame
Companies can’t afford to innovate
Innovation may require future borrowing needs
Regulation won’t let us
Good ideas are hard to come by
11
Biases Working Against UsPsychological
Confirmation Bias
Recency Bias & Human Cognitive Limits
Winners’ Curse
17Lean Startup in the Enterprise | Aubrey Smith
From Linear to Responsive
Linear Command and Control Control Through Learning Loops
Specification
Output
Build
Learn Measure
Task
18Lean Startup in the Enterprise | Aubrey Smith
…But In Enterprise, Nothing’s Simple
Linear Command and Control Control Through Learning Loops
Specification
Output
Task
20
Step 2
20
2
PortfolioVision
3
PortfolioManagement
1
Executive Vision
Executive Leadershi
p
Opportunity/ Portfolio Team
PMO
Actionable Thin Slice
5
Market Opportunity
Technology Commercial
6
MeasureMetrics
Product Architecture
Loop 1 Vision Loop
Loop 2 Portfolio
Loop
Loop 3Market
OpportunityLoop
Loop 4 Performance
Loop
24
…
24
2
PortfolioVision
3
PortfolioManagement
1
Executive Vision
Executive Leadership
Opportunity/ Portfolio Team
PMO
Actionable Thin Slice
6
MeasureMetrics
Product Architecture
5
Market Opportunity
Technology Commercial
Loop 3Market
OpportunityLoop
25
Lean Startup
Transformation
Incubate& Disrupt
“Learn by doing”
Accelerate& Grow
“Build the mechanism
to scale”
Transform
“Implement Scaling”
26Lean Startup in the Enterprise | Aubrey Smith
Incubate TransformAccelerate
People
Process
Product
Accountability
Culture
Small teams
Learning Loop:
Limited
H3 - Key technology
“breakthroughs”
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
Portfolio teams;
Cross-portfolio teams
Learning Loop:
Portfolio Management
H2 - Cross-portfolio bets;
Extensions from the core
Executive teams; Portfolio
teams; P&L teams
Learning Loop:
Entire Organization
H1 - Core driven
product lines
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Teams: Learn in 90 Days
The Startup within Enterprise
- Builds organization learning- Evidence-building for scaling
- Small, co-founder led - Incubation- Typically, technology-led- Housed in R&D or Labs
Potential Team Cadence
• Week 1 – Kick off• Problem, Solution, Business Model
• Week 2- Launch MVP 1• Week 3 – Collect Metrics• Week 4 – Pivot or Persevere• Week 5-9 – Launch MVP 2• Week 10 – Collect Metrics• Week 12 – Pivot or Persevere
32Lean Startup in the Enterprise | Aubrey Smith
WH
ER
E T
O P
LA
Y
HOW TO WIN
TRANSFORMATIONAL
Developing breakthroughs and inventing things for markets that don’t yet exist
ADJACENT
Expanding from existing business into “new to the company” business
CORE
Optimizing existing products for existing customers
Serv
e e
xis
ting
mark
ets
&
custo
mers
En
ter
adja
cent
ma
rkets
, se
rve
ad
jace
nt
cu
sto
me
rs
Cre
ate
new
mark
ets
, ta
rget
new
custo
mer
needs
Use existing products & assets Add incremental products & assets Develop new products & assets
33Lean Startup in the Enterprise | Aubrey Smith
TRANSFORMATIONAL
ADJACENT
CORE
A Leading Consumer
Goods Company
A Diversified
Industrials Company
A Midstage
Technology Firm
80%
18%
2%
70%
20%
10%
45%
40%
15%
What’s the right portfolio mix?
The vision should be….
Be aspirational
Be defined from the customer’s perspective
Allow room for optionality or pivots
Define what’s in and what’s out of scope
Avoid ambiguous financial targets
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38Lean Startup in the Enterprise | Aubrey Smith
H3
H2
H1
What does your portfolio look like today?
What should your portfolio look like?
Describe factors impacting your portfolio
Portfolio - Exercise
1.Industry
2.Competition
3.Maturity
Where are you in the progression?
(Incubate, Accelerate, Transform)
How does the company progress from one
stage to another?
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Tools & Support
Incubate& Disrupt
“Learn by doing”
Accelerate& Grow
“Build the mechanism
to scale”
Transform
“Implement Scaling”
Aubrey Smith | [email protected]