In a continuation on my last post on Eric Ries and The Lean Startup, I wanted to share how these concepts continue to ripple through Rally. (Learn more on how to apply these topics in your business at our upcoming in-person and virtual Portfolio Management Roadshow featuring Eric alongside an awesome line-up of speakers.)
Three weeks ago while in Denmark, I had a deep dive with customers on the topic. While in Copenhagen Denmark and talking with 40 European customers at Rally’s Agile Open Forum, one of the top 5 questions that group proposed was:
“How can we develop features that give the maximum long-term value and the minimum long-term cost?”
I believe you will find the answer to this question in Steve Blank’s customer development approach to differentiating new products or simply in the build-measure-learn cycle of Lean Startups. For Agile teams that can already build right and build fast, this answers the question of what to build!
By focusing on the concept of creating “validated learning,” a Lean Startup team does not provide solution development teams stories that are not validated or constructed to validate a hunch. As such, the Agile backlog becomes prioritized by learning and risk. The result is a team that couples Agile product development cycles with customer problem discovery and customer solution validation. What is great about this approach? It works at the whole business or product-line level, and you can also slim this down for use with A/B testing of enhancements too. Your level of application only depends upon your scope as well as the scale and maturity of your Agile efforts. The more Agile your enterprise is the more leverage you can have with these techniques.
The result of this work allows you to determine, if there is desirability for this solution before you commit to ship it. As a result of understanding the intersection of feasibility, effectiveness and desirability, you can be sure to deliver features that have maximum value. And, by working with a minimal viable product (MVP) concept, you can be sure not to overbuild that solution too. In this way you can be sure to build the features with maximum value and minimal long-term cost.
To me, Lean Startup is a method to drive continuous innovation and brutal, entrepreneurial prioritization. But taken to the extreme, Lean Startup is a way of being and acting and can become an attribute of culture. In addition to speaking and teaching on the topic, we have had some customers and partners come to learn, teach and do with us. The following efforts demonstrate how these activities can become cultural.
Act like a scientist, not a fire fighter
In a tradition of Lean companies, we had one of our largest customers come visit our office in early October. He and his company have adopted and scaled Agile very well. Now, they are focused on creating validated learning to do concurrent set-based development on their toughest problems. He pointed us toward this HBR Article on Decoding the DNA of the Toyota Production System. You will notice the Lean rules and principles from Toyota support the Lean Startup approach. This customer’s hope was to share his learning to help make us a better partner. His trip was a true gift. Thank you, Pat.
Two weeks prior to our customer visit, our friends George Kembel and Scott Dorsey, from Stanford’s d.school were here in Boulder. The principles and method of design thinking are clearly wrapped into the Lean Startup. In design thinking, the iterations include practices to empathize, ideate, prototype, and test/reframe. Typically, these cycles are used to create the initial design of a new product or service, but not at the d.school. In the d.school, students take these concepts into more of a continuous cycle to help shape emerging services or social startups. Like Lean Startup, the d.school is learning to run people and teams through fast and continuous cycles of build-measure-test to create a “continuous innovation to create radically successful” efforts.
In a serendipitous way, I taught a seminar on customer development and business model canvas approaches to fellows at the Unreasonable Institute. In September, Zach did a crash course on “Why Lean Startup Approaches Work” for 120 folks at the Silicon Flatiron’s portion CU Law School and Boulder/Denver New Tech Meetup. Like my first post said, it has truly been Lean Startup everywhere at Rally.
If this post was not concrete enough for you, my final Lean Startup post is on “How to Apply Lean Startup to Your Agile Rollout.”
Ryan Martens is CTO/Founder of Rally Software, a recovering Entrepreneur-in-Residence at the Unreasonable Institute and chief promoter of the Entrepreneurs Foundation of Colorado. You can follow him on Twitter @RallyOn.





