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Eric Ries The Lean Startup and the Golden Age of Entrepreneurship
44 segments available
Published on Oct 12, 2015 The Lean Startup methodology has disrupted businesses everywhere. As a result of a more innovative, entrepreneurial-based economy, business leaders have been forced to take a fresh look at growth opportunities and the type of organization they need to build in order to stay competitive. Born out of the startup culture, Lean Startup provides the pathway to business transformation. So, how can businesses of all sizes apply Lean Startup principles to modernize and foster continuous innovation? In this special event, Eric Ries, author of The Lean Startup and the Kickstarter-backed Leader’s Guide, sits down with entrepreneur Leslie Bradshaw, Managing Partner of MadebyMany, to discuss next generation leaders, what it really takes to innovate, and how to create a culture that will sustain. The Lean Startup Conference was proud to partner with General Assembly for this broadcast. You can check out GA here: GA Facebook- https://www.facebook.com/gnrlassembly GA Twitter- https://twitter.com/GA GA LinkedIn- https://www.linkedin.com/company/gene... GA Online- https://generalassemb.ly/
Segments Timeline
Defining Lean Startup
Eric Ries introduces the Lean Startup methodology, explaining its roots in lean manufacturing and its application to entrepreneurship and innovation. He emphasizes that Lean Startup is not a religion but a flexible framework that evolves based on what works in practice.
"well just us on our favorite folks and then a couple thousand online hey hey online people we were kind of joking that you know in a way this feels kind of tell evangelistic you know but you know we a..."
The Dynamic Nature of Lean Startup
Ries discusses the dynamic aspect of Lean Startup principles, highlighting the need for different applications across various sectors such as startups, enterprise technology, and manufacturing. He stresses the importance of adapting tactics while maintaining core principles.
"definition about but did you start with the movement you know I've been having a lot of conversations with people lately it's gone to the point where i have to like I actually have to tell people that..."
Proving Lean Startup Works
Ries encourages entrepreneurs to test the Lean Startup principles in their own contexts rather than relying on theoretical arguments. He shares insights on how people often struggle with applying these principles and the importance of experimentation.
"they actually become worse than dead they become a living dead become ossified and I kind of like bunch of slogans that that enable people to do dumb things so I don't want that to happen to us well i..."
Overcoming Fear of Idea Theft
Ries addresses common fears among entrepreneurs regarding idea theft and competition. He argues that the real challenge lies in execution and that many ideas are not unique, emphasizing the importance of translating ideas into reality.
"see that on late-night TV anyway um what what happens is people then say well you know Minimum Viable Product means like just shipping some like crappy landing page or a nap but like that wouldn't wor..."
Behavior Change and Lean Startup
Ries discusses the difficulties of behavior change in adopting Lean Startup principles. He highlights that while many complain about the status quo, taking action to implement change is often painful, and he urges individuals to test the framework for themselves.
"that thought translation of hey this worked in this business like what is what is the generalizable lesson from that vs I just copy what that person does and that boom I instantly get rich and famous ..."
Entrepreneurship in Large Organizations
Ries reflects on the presence of entrepreneurial talent within large organizations and the challenges they face due to outdated systems. He emphasizes that entrepreneurship is not limited to startups and that best practices can be shared across different sectors.
"lot of the time I spend with companies and with startup scene people want to argue about like oh you can't do any startup if though you know who could have negative effects on your brand or competitor..."
The Lean Startup Movement's Growth
Ries discusses the evolution of the Lean Startup movement since its inception, noting the diverse audience it attracts from various sectors. He highlights the common challenges faced by entrepreneurs, regardless of their organizational context.
"a kind of management there's really no way to get around that but I didn't really think anyone going to take that seriously so I just put it out there and figure what's the worst that can happen and r..."
Success Stories in Lean Startup
Ries shares insights from his experiences working with various companies, including GE, and the surprising applications of Lean Startup principles in large organizations. He emphasizes the importance of learning from real-world implementations.
"a few years is that we have more in common than we think and there's actually a lot of best practices that can be shared across company boundaries and even into governments and NGOs and all kinds of d..."
Lessons from Real-World Applications
Ries concludes by reflecting on the lessons learned from working with established companies and the challenges of applying Lean Startup principles at scale. He emphasizes the need for continuous learning and adaptation in the entrepreneurial journey.
"stand out or maybe the ones that surprised you the most when they're like really like they're using it yeah you know I I only like to talk about the work that i do myself so so I've worked with a numb..."
Facing the Firing Squad
Ries shares his experience of training senior executives at GE, describing the intense scrutiny and skepticism he faced. He emphasizes the importance of being prepared to answer tough questions and how this experience tested his understanding of Lean Startup principles.
"different departments that's what's so great about working with companies that are well run that are well disciplined that have a history of having done these kind of changes before is as an outsider ..."
Unlocking Creativity in Corporations
In this segment, Ries reflects on the latent creativity and talent within large organizations. He discusses how the right interventions can unleash this potential, challenging the stereotype of bureaucratic employees and highlighting the transformative power of Lean Startup practices.
"didn't of course like I think it came out great and it's been good for them and you'll see that they're doing more public stuff lately to God share what their experience has been of it but what that t..."
The Power of Collaboration
Ries explores the dynamics of collaboration in the context of Lean Startup. He contrasts his introverted nature with the need for teamwork and emphasizes the importance of creating frameworks that invite participation in the entrepreneurial movement.
"me so thinking about different frameworks and kind of metaphors we kind of shelve the religion one we're not you again what about thinking about this I just saw straight out of Compton so I'm thinking..."
Misunderstandings of Lean Startup
Ries addresses common misconceptions about Lean Startup, particularly the idea that it promotes sloppy work or merely following customer demands. He clarifies that true Lean Startup philosophy requires a long-term vision and a commitment to continuous improvement.
"light what anything you want to clear up in terms of the principles what are some of the most fundamental principles bedrock that we should continue to do and what are some things that are just just f..."
Turning Around a Failing Project
In this segment, Ries provides advice for change agents facing challenges in large organizations. He shares a case study of a team on the brink of a disastrous product launch and emphasizes that it's never too late to apply Lean Startup principles to improve outcomes, even in dire situations.
"that we all that we all want so and and the flip side is also really interesting so I think it requires a long-term philosophy to do something likely and it's actually a lesson I learned from the lean..."
Turning Negatives into Opportunities
In this segment, Ries discusses the importance of gathering customer feedback, even when a product launch seems inevitable. He illustrates how understanding customer reactions can provide valuable insights, allowing teams to pivot and make informed decisions, despite the sunk costs associated with their projects.
"you can still do an experiments like a new experiment this weekend can we go get one customer right now for this product and just like just double check that everything's going to be fine I'm sure it ..."
The Art of Testing in Creative Industries
Ries explores how Lean Startup principles can be applied to creative industries, such as filmmaking. He advocates for testing concepts through small-scale experiments, allowing creators to gauge audience interest without committing to large budgets. This approach empowers artists to innovate while minimizing financial risk.
"right decision maker and say listen or even better if you're the decision maker and you have the facts you can say you know what even though we've had a huge sunk cost even though we have wasted a lot..."
Bridging Business and Creativity
In this insightful discussion, Ries highlights the disconnect between business and creativity in traditional systems. He argues for integrating business literacy into creative roles, empowering creators to take control of their projects and make informed decisions that align with market demands.
"confused like oh no this is going to be like you do a screen test and ask the customers when my movie should be and it's all going to be fart jokes and stupid you know like it's gonna be the lowest co..."
Investor Expectations vs. Startup Reality
Ries addresses the challenges entrepreneurs face when dealing with investors who seek certainty and detailed roadmaps. He emphasizes the need for a shift in how progress is measured, advocating for a focus on learning and adaptability rather than rigid forecasts and business plans.
"naturally that they they understand that the way you measure progress of a startup team is not about the artifacts that they produce but like all the progress is between the ears of the people it's li..."
The Value of Innovation Accounting
In this segment, Ries discusses the concept of innovation accounting, which quantifies learning progress in startups. He critiques traditional investor metrics and emphasizes the importance of understanding what truly drives success in a startup environment, moving beyond superficial artifacts.
"well and it's like what's said in the spreadsheet that on this month such and such thing would happen and I'm like it did you read that thing you thought I was predicting the future with that the item..."
Lessons from the Dot-Com Bubble
Reflecting on his experiences during the dot-com bubble, Ries shares insights on the pitfalls of easy money and the importance of strategic thinking in startups. He recounts his own startup failures and the lessons learned about the necessity of grounding business ideas in reality rather than hype.
"have kind of come up in this generation are much more like they talk more about traction than about a new concept we're talking about but those trying to get more quantitative I think they have a desi..."
The Pain of Startup Failure
Eric Ries shares his early experiences with a startup he launched in college, reflecting on the naivety and mistakes that led to its catastrophic failure. He discusses the allure of venture capital and how the dot-com bubble's burst ultimately saved him from prolonged failure, emphasizing the importance of understanding the fundamentals of business.
"a start-up for my college dorm I didn't know what a start-up was I didn't know what I know anything about business but I saw on TV that like all these kids are walking into venture capital offices and..."
The Science Nerd Origins
Ries reveals his childhood fascination with science and programming, describing himself as a 'super science nerd.' He recounts his early science projects and how they shaped his curiosity and analytical mindset, which later influenced his approach to entrepreneurship and innovation.
"the kind of like you don't see so much anymore in retrospect if the bubble had gone on longer we would have been in the land of the living dead longer because we were doomed from the start we made con..."
Evolution of Lean Startup Concepts
Reflecting on his journey, Ries discusses how his understanding of the Lean Startup methodology has evolved since he first introduced it. He critiques his earlier blog posts and highlights the importance of integrating scientific approaches into business practices, emphasizing that understanding should be accessible to all entrepreneurs.
"but that was not socially acceptable to do like at that time so I didn't squeeze programming in between my other like more acceptable nerdy hobbies like there were all more science and math oriented s..."
The Importance of Curiosity in Science
Ries emphasizes the significance of curiosity in scientific inquiry and entrepreneurship. He argues that true learning comes from exploring failures and unexpected outcomes rather than adhering strictly to traditional scientific methods, advocating for a mindset that prioritizes inquiry over rote processes.
"people at that time so I'll give you one of my favorite examples every once in a while now someone will Hector me in the audience because I use the term hypothesis incorrectly and I've obviously never..."
Vanity Metrics vs. Real Metrics
In this segment, Ries discusses the distinction between vanity metrics and meaningful metrics in startups. He warns against relying on superficial data that may mislead teams about their success, stressing the need for substantive metrics that truly reflect business performance and customer understanding.
"and then to direct your inquiry to where you're wrong and where things are unexpected going badly and that I think that's very counter to human nature we tend to want to focus on the things we're doin..."
The Reality of Startup Success
Ries critiques the common narratives of startup success, highlighting how different departments within a company often have conflicting interpretations of performance metrics. He stresses the importance of a unified understanding of success and failure to foster collaboration and genuine progress within startups.
"problem so you know when you start to look at hits and total number of messages sent any kind of gross quantity that's open to the right my personal favorite chart of all time is you know any kind of ..."
Quality vs. Vanity in Product Development
Ries challenges the notion of product quality, questioning whether teams are truly improving their products or merely enhancing aesthetics. He stresses the need for startups to focus on the impact their products have on the world, rather than getting caught up in self-satisfaction with their work.
"you're truly making progress because the truth is most product teams that I mean if you look at their progress cohort after cohort you can be like here's five releases of this product revenue per cust..."
Finding Your Startup Idea
Addressing a question from the audience, Ries discusses the importance of having a meaningful problem to solve when starting a business. He encourages aspiring entrepreneurs to pursue ideas that resonate with them personally, rather than chasing trends or superficial goals like fame or wealth.
"note we're going to turn over to QA we're going to do a little bit from the live stream and then we'll kind of throw to the mics around here first question comes from Paul hey Paul seems that the star..."
The Reality of Startup Culture
Ries shares insights on the misconceptions surrounding startup culture, urging individuals to seek genuine experiences rather than relying on media portrayals. He advises aspiring entrepreneurs to work at well-run startups to gain real-world insights into what it takes to succeed.
"rich that if you actually do the math on what your probability is something good happening to us by just like dude good plan if you really want to learn about startups and your and your engine startup..."
Embracing Small Ideas
In this segment, Ries encourages entrepreneurs to embrace small, seemingly trivial ideas that resonate with them. He emphasizes that these ideas can lead to significant business opportunities, urging listeners to act on their instincts and pursue what genuinely bothers them in the world.
"how the world is I made that mistake it was very very painful but if you but on my guess is anyone who would ask a question I'm not trying to think like what's Paul really asking okay here's my guess ..."
Adapting Lean Startup to Different Models
Ries discusses how different types of companies, such as SaaS and network-oriented businesses, adapt Lean Startup methodologies to fit their unique needs. He highlights the importance of customizing approaches to align with specific business models and customer engagement strategies.
"where like in order to get to this product that i really want to build that first up to build this product and then i have to get credibility and a lighthouse customer and i read this then I'm going t..."
The Evolution of Lean Startup Practices
Ries reflects on how companies have developed their own interpretations of Lean Startup principles, often using unique terminology to fit their culture. He draws parallels with the Toyota Production System, emphasizing the importance of making methodologies personal and adaptable.
"you're seeing there yeah every company that uses these ideas makes at their own and in fact it's not even called lean startup at most companies that are really advocates of lean startup they generally..."
The Pressure of Innovation
In this concluding segment, Ries addresses the pressure to continuously innovate within the Lean Startup framework. He shares his thoughts on the challenges of developing new ideas and the expectations from the community, while also hinting at his future projects and the creative process behind them.
"that would be pretty stupid so gotta make it your own now for companies that have different kind of fundamental strategies right like you have the businesses that are based on large quantities of time..."
Learning from Early Days
Ries shares his experiences from the early days of Lean Startup, where he faced skepticism while advising startups on continuous deployment. He recounts how he learned to adapt his approach based on the questions and challenges posed by companies, leading to a deeper understanding of the methodology's application across different contexts.
"just can't like I takes a long time so software out where the sophomore album is always a tough one right yeah well I'm plus the pressure everyone you know it's like oh my god my people for my publish..."
Building a Modern Organization
Eric Ries discusses the evolution of companies and the need for modern organizations to foster continuous innovation. He contrasts traditional organizational structures with the need for a more entrepreneurial approach, emphasizing the importance of creating a culture that encourages innovation and adaptability.
"federal government and always big bureaucratic organizations trying to help them get to a more entrepreneurial state and then there's a second community of people who were like early adopters of Lean ..."
Meritocracy and Diversity in Tech
In this thought-provoking segment, Ries addresses the controversial topic of meritocracy within the tech industry. He argues that while the tech sector has meritocratic elements, there are significant biases that hinder diversity. Ries emphasizes the importance of reflecting customer demographics within management to enhance decision-making and innovation.
"and helping you as a company come up with many many good ideas over over the long term those two problems are more similar than anybody realizes and the conversations I have in those two contexts are ..."
The Science of Decision Making
Ries highlights the importance of scientific decision-making in reducing bias within organizations. He discusses how adopting rigorous evaluation methods can lead to more equitable funding and recognition of talent, ultimately fostering a more inclusive environment for innovation.
"something around diversity or some of these things that are brought up uncomfortably in the tech industry in particular is there something about that future state of a company that looks more and refl..."
Challenging Conventional Wisdom
In this segment, Ries reflects on the challenges of discussing diversity and meritocracy in the startup ecosystem. He shares his experiences of facing backlash for questioning established norms and emphasizes the need for open dialogue about improving decision-making processes in tech.
"company should all look like this imagine asst way and you know it's just the what what is interesting though is that that that holds hey it's cause it's so emotional and its political and it's and pe..."
Strategic Insights for Entrepreneurs
Ries concludes with insights on the importance of strategic foresight for entrepreneurs. He discusses the value of sourcing the right talent and tools, and the necessity of avoiding strategic errors. This segment encapsulates the essence of Lean Startup principles applied to modern entrepreneurial challenges.
"energy instead of saying well what what are the most meritocratic decision-making mechanisms that have been something that we've learned about and that brings it back to lean startup my experience has..."
Rethinking Corporate Strategy
Eric Ries shares insights from his research on corporate strategy, particularly the need for testing theories in the real world. He reflects on the limitations of traditional corporate strategy frameworks and advocates for viewing strategy as a series of hypotheses that require validation through experimentation.
"sorry no it helped me out so yeah so let's talk about strategy I was read when I was doing the research for lean startup I read a lot of books i was like i'm gonna read as many business books as i pos..."
Strategic Hypotheses and Experiments
Ries introduces the concept of strategic hypotheses, explaining how businesses can formulate 'if-then' statements to guide their strategies. He emphasizes the importance of conducting experiments to validate these hypotheses, allowing companies to adapt and respond to market changes effectively.
"understand like why we have so many strategy errors we're used like we've grown up with and the 20th century gave us companies that like really succeeded through analysis and through like a much more ..."
Learning from Strategic Errors
In this segment, Ries shares a personal anecdote about his past experiences with entrepreneurs and their strategies. He discusses the challenges of convincing others to reconsider their strategies and highlights the importance of helping them discover insights through their own experiences rather than imposing judgments.
"framework that like whatever our strategic framework is it's about it like the suggestions of things to test is really hard to do as special as you get more successful so I just give you one more litt..."
The Power of Self-Discovery in Strategy
Ries illustrates the value of self-discovery in understanding strategic errors through a story about a team that underestimated their product's market potential. He emphasizes that allowing teams to learn from their mistakes fosters a deeper understanding of their strategies and encourages a culture of rigorous experimentation.
"what led me to the concept of minimum viable product was like I'm working with teams I need to get them to try something to see if they're right and I'll just show you one example go back to the theme..."
Teaching Entrepreneurship and Strategy
In the closing segment, Eric Ries reflects on the role of entrepreneurs as educators within their organizations. He encourages leaders to apply Lean Startup principles not only to their own ventures but also to mentor others, fostering a culture of innovation and continuous learning in their teams.
"startups or in business like you start applying this framework to yourself but it's become more successful you start to wind up applying it not just to yourself puts your other fellow leaders and othe..."