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The A-Z’s of Lean

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The A-Z’s of Lean for Social Good Lean Impact www.leanimpact.org We’ll start in a few minutes…


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What we’re talking about today Lean Startup – what is it and why should I care? The basic principles of Lean Startup Defining three key Lean concepts + examples Ways to get started #leanimpact @leahtn


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You’ll get the deck We’ll send you the deck after the webinar Archived on NetImpact website You’ll get a copy of The Ultimate Dictionary of Lean for Social Good #leanimpact @leahtn


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Who am I? I’m Leanne Pittsford or @lepitts, the co-founder of Lean Impact, helping social good organizations apply Lean Startup principles I’m also the founder of Social Good Tech Week & Lesbians Who Tech I’ve worked at tech startups and have founded companies using Lean methods Fun fact: I run the blog “When You Work At A Nonprofit” #leanimpact @lepitts


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Let’s get started… Lean Impact www.leanimpact.org The A-Z’s of Lean for Social Good


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What do we mean by “Lean”? The old definition: Having no money Doing more with less #leanimpact @lepitts


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What do we mean by “Lean”? The new definition: Lean organizations develop products, services and campaigns by starting small, soliciting user feedback along the way, ensuring they are continually developing something that users want, and pivoting if necessary. The overall goal is to reduce waste: wasted time, wasted effort, and wasted money. #leanimpact @lepitts


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Where Lean came from Eric Ries’ book The Lean Startup #leanimpact @lepitts


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But actually, that came from… Lean manufacturing, from Toyota #leanimpact @lepitts


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The old way: startups Have an idea Start working on it, behind closed doors Take funding to build it Take 18-24 months to finish it Release it to the world Expect people to buy it Idea Build Launch, Measure, Learn @lepitts @leanimpact / #leanimpact


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The old way: startups Have an idea Start working on it, behind closed doors Take funding to build it Take 18-24 months to finish it Release it to the world Expect people to buy it Idea Build Launch, Measure, Learn Dud (90% of the time) #leanimpact @lepitts


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The old way: startups Have an idea Start working on it, behind closed doors Take funding to build it Take 18-24 months to finish it Release it to the world Expect people to buy it Idea Build Launch, Measure, Learn Dud (90% of the time) Customer feedback comes here #leanimpact @lepitts


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The old way: social good Have an idea for a program, service, campaign, etc. Put staff on it Take many months to finish it Release the pilot to the world Expect it to be successful Feedback comes here Idea Build Launch, Measure, Learn ?? #leanimpact @lepitts


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The new way: startups Have an idea Create a Minimum Viable Product (MVP) Get it in the hands of customers Gather feedback Make refinements And on and on User Feedback Idea Build Measure, Learn User Feedback Build Measure, Learn #leanimpact @lepitts


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The new way: startups Have an idea Create a Minimum Viable Product (MVP) Get it in the hands of customers Gather feedback Make refinements And on and on #leanimpact @lepitts


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The new way: startups Have an idea Create a Minimum Viable Product Get it in the hands of customers Gather feedback Make refinements And on and on Build Measure Learn User Feedback #leanimpact @lepitts


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Basically… Start with a Minimum Viable Product (MVP) that you can get into the hands of customers quickly BUILD Use metrics see how customers use your MVP MEASURE Learn from these results. Either continue on the same course, continue with some modifications, or pivot. LEARN #leanimpact @lepitts


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Why should social good organizations care? Time and money are at a premium You can’t afford to waste months on something that may or may not work You need to find out quickly if something is viable, so you can either pursue it or ditch it #leanimpact @lepitts


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Defining Three Key Lean Concepts Minimum Viable Product Get Out Of The Building Pivot #leanimpact @lepitts


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M is for… Minimum Viable Product Lean Impact www.leanimpact.org


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What is a Minimum Viable Product? A Minimum Viable Product (MVP) is an early version of a product or service, and contains only the bare minimum features that allow it to be deployed to early users. It means: Bare bones Not pretty Manual #leanimpact @lepitts


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Fasal SMS-based program designed to give farmers in India current market prices, so they can sell their crops for a profit Started with a Minimum Viable Product #leanimpact @lepitts


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Fasal Final product vision: SMS messages automatically sent to users MVP version: One of the team members manually sent SMS price alerts to early users Final product vision: Voice response technology would send daily automated phone calls with price updates MVP version: One of the team members recorded the “automated” voice #leanimpact @lepitts


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Fasal The Fasal team studied how early users used the service Only when they were sure that people would use the service, did they invest in building out the full vision #leanimpact @lepitts


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Key Elements of an MVP No cost / low cost Easy set-up and maintenance Measurable #leanimpact @lepitts


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Why create an MVP? It allows you to test your assumptions: See if there’s a need for it, before you invest in something Find out if it’s a viable idea worth your team’s time Eliminate wasted time Eliminate wasted money If people will use it, THEN start building it out #leanimpact @lepitts


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Gateway Green Gateway Green is a project in Portland, Oregon to turn a stretch of unused land into a multi-use bike park. #leanimpact @lepitts


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Gateway Green The assumption: residents of Portland want a multi-use outdoor space for recreation and preservation The MVP: an Indiegogo campaign, to see if there is public support for the project #leanimpact @lepitts


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Gateway Green Metrics: funds raised + funders The result: $123,880 raised 723 funders “This project will need millions of dollars to be fully built out. While the crowdfunding campaign will raise just a small chunk of that, backers see it more as an opportunity to show the powers-that-be that the public is behind this project and that it's worth putting real money into.” – BikePortland.org #leanimpact @lepitts


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G is for… Get Out Of The Building Lean Impact www.leanimpact.org


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What is Getting Out of the Building? Get Out of the Building refers to the idea that to create a valuable product, service or campaign, you need to talk to the people who will potentially use it. #leanimpact @lepitts


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Let’s talk about assumptions We base a lot of our work on assumptions (it’s not just you, everyone does it) A few assumptions: X group needs more information on Y (it’s an information problem) Our donors want to hear more about X issue (we know our donors) The best thing to help X group, is Y service (we know how to help them) #leanimpact @lepitts


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“No facts exist inside the building. Only opinions.” Steve Blank, Author, The Startup Owner’s Manual #leanimpact @lepitts


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Getting out of the building Putting the product or service in front of the people who will actually use it What happens when they use it What it’s not: Online surveys Phone calls Polls “Would you use this?” #leanimpact @lepitts


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Why get out of the building? By getting outside the building, you can get actual, actionable feedback, and minimize the risk that a product, service, campaign or program will fail by verifying your theories with actual customers. #leanimpact @lepitts


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IDEO.org Creating a financial service program in Mexico Started with a Minimum Viable Product #leanimpact @lepitts


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IDEO.org Mocked up an ATM, using an iPad and plastic casing to create a “working” prototype. Created a mockup “program” for the software using Keynote presentation software. Created sample brochures, manual SMS alerts #leanimpact @lepitts


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IDEO.org “Our concepts evolved a great deal by walking the Mexicans we met with through our prototypes and hearing their reactions. We were able to find out how quickly someone understood the idea, whether a certain feature made sense, and figure out which elements needed to change. “ - Patrice Martin, IDEO #leanimpact @lepitts


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The Conceptual Four Walls It can also refer to looking beyond the conceptual “four walls” of your industry to learn from other industries and things they’re doing. Ways to get outside the building: Read blogs about technology or innovation Read books about entrepreneurship Watch TED talks Go to a startup event or meetup Attend a Startup Weekend event #leanimpact @lepitts


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P is for… Pivot Lean Impact www.leanimpact.org


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What is Pivoting? Pivot means significantly changing the direction of a product or service strategy. Organizations will pivot when a current idea is not working or not getting traction, or when the MVP needs significant improvement. #leanimpact @lepitts


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Lean Impact Circa January 2013 Assumption: People will pay $20 for an online conference, to learn about Lean Startup in the social good space Minimum Viable Product: Lining up a few speakers Basic website Eventbrite registration #leanimpact @lepitts


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Lean Impact We sold 4 tickets Assumption: DISPROVED #leanimpact @lepitts


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Lean Impact Getting Out of the Building: Reached out to potential attendees Google Hangout feedback sessions We learned that people needed an in-person experience #leanimpact @lepitts


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Lean Impact We pivoted: Planned launch parties in New York, DC and San Francisco Each party had over 500 registrants and 300 people through the door By creating an MVP , we saved money and had our answer in 60 days By Pivoting, we were able to create something that provided value to our audience #leanimpact @lepitts


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Lean Impact #leanimpact @lepitts


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Lean for Social Good Summits #leanimpact @lepitts


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Pivot // Social Good Tech Week #leanimpact @lepitts


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In Summary Using Lean principles: Is less risk than investing months on something Is easy to try, using the approach and tools here Gives you quick data so you know whether to move forward Most people are quick to stop you before you get started, but hesitant to get in the way if you’re moving! #leanimpact @lepitts


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Resources & Programs Read The Lean Startup by Eric Ries Take a course Udemy – The Lean Startup Course Acumen Lean for Social Impact Adopt a testing mindset #leanimpact @lepitts


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Further Reading The Ultimate Dictionary of Lean for Social Good – leanimpact.org What would The Lean Startup Look Like for Nonprofits? By Sasha Dichter The Lean Startup by Eric Ries Don’t Overthink It by Leah Neaderthal #leanimpact @lepitts


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Thanks! Leanne Pittsford Co-Founder, Lean Impact www.leanimpact.org Leanne@lesbianswhotech.org @lepitts #leanimpact @lepitts


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