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Interview with Eric Ries: The Future of Lean Startup - Lean Startup 2016
22 segments available
Eric sits down with Lean Startup Labs faculty member Phil Dillard to discuss the state of Lean Startup, what every organization should be thinking about as it moves into the next decade and beyond, and the influence a long term innovation strategy has on the way products get built today. CONNECT WITH US Web: https://leanstartup.co Twitter: https://twitter.com/leanstartup LinkedIn: https://www.linkedin.com/company/lean-startup-co- Facebook: https://www.facebook.com/LeanStartupCompany/ SlideShare: http://www.slideshare.net/LeanStartupConf Full Video Content: https://leanstartup.co/video-bundles/ ABOUT LEAN STARTUP CO. We provide year-round education through Lean Startup Week, our Summit Series, podcast/webcasts, and training programs.
Segments Timeline
The Pulse of the Lean Startup Community
Eric Ries shares his observations from the Lean Startup conference, highlighting the enthusiasm and diverse projects attendees are working on. He reflects on the transformation from his early days as a software engineer to becoming a figure in the startup community, emphasizing the inspiring stories he hears about startups applying Lean Startup principles.
"I get a sit down this time no it's great right alright so good afternoon everybody thanks for coming Eric great to see you I'll be getting your questions here so the instructions should be up in a sec..."
Maturity in the Lean Startup Movement
Ries discusses the evolution of the Lean Startup community, noting a shift towards corporate involvement and a more mature approach to tackling significant problems. He contrasts the current atmosphere with the earlier, more revolutionary spirit, while acknowledging the responsibility that comes with this maturity.
"got to tell you the the craziest part for me is as I walk around the conference you know people want to come up and say hi I get the picture taken and doesnot I was working as a software engineer like..."
The Vastness of Business and Lean Startup Awareness
Eric highlights the disconnect between the Lean Startup community and the broader business world, noting that many professionals, even at senior levels, are unaware of Lean Startup principles. He emphasizes the need to maintain a revolutionary spirit while recognizing the depth of traditional business practices.
"we're way more corporate sellout this year than ever before because we got this we got this kick-ass venue and pretty good view and I gotta say I love having this space with natural light I don't know..."
Current State of Lean Startup Adoption
Ries reflects on the current state of Lean Startup adoption across various company sizes, noting the lack of systematic data on its impact. He mentions the emergence of companies inspired by successful Lean Startup transformations, indicating a growing interest in these methodologies among mainstream businesses.
"touched by Lean Startup have never heard about it right now so we forget because we live in this in this bubble of people who are really into these ideas that the world of business is in business is i..."
Challenges in Lean Startup Implementation
Eric discusses the complexities of implementing Lean Startup principles within organizations. He stresses the importance of executive commitment and the need for a cultural shift to truly embrace Lean Startup methodologies, while also acknowledging the challenges that come with such transformations.
"really cool combination I think I find it really interesting so that gets us started actually in the conversation about what's the current state of the lean startup right and you gave a little bit of ..."
Empowering Change from Within
Ries emphasizes that everyone in an organization, regardless of their position, has the authority to adopt Lean Startup principles in their work. He encourages individuals to lead by example, applying experimental and customer-centric approaches in their tasks to foster a culture of innovation.
"that like please for the love of God so I don't know I keep thinking we're gonna settle into some kind of pattern and every year it it gets bigger every year changes it's more dynamic I think we now h..."
The Role of Leadership in Lean Startup
Eric discusses the critical role of leadership in driving Lean Startup initiatives. He highlights the need for CEOs and top executives to make decisive commitments to Lean Startup practices, which can significantly influence the organization's culture and approach to innovation.
"going to get way more exciting as we get more success under our belt so being that these are the early stages of those conversations at enterprises what do you think are like some of the early success..."
Empowering Decision-Making at All Levels
Eric Ries emphasizes that everyone in an organization, regardless of their position, has the authority to make decisions that can drive innovation. He discusses the importance of executive leadership in fostering a culture where employees feel empowered to adopt lean startup principles, highlighting that the wisdom and creativity of the workforce are crucial for success.
"fire for something else so what would it take to convince you that this is for real and then if you're prepared you have the level of discipline and executive leadership to make that kind of decision ..."
Be the Change Agent
In this segment, Ries encourages individuals at all levels to embody the principles of the lean startup methodology. He stresses the importance of personal accountability and experimentation, urging employees to apply lean principles to their own work, whether it's creating a presentation or managing complex projects, to foster a culture of innovation.
"do that the most important thing everybody I don't care what level the organization you're at everybody has some level of authority to make decisions and that's like this is your domain no matter how ..."
Proving Lean Startup Concepts
Ries discusses the necessity of demonstrating the effectiveness of lean startup practices to gain buy-in from higher management. He advises on negotiating for the authority and resources needed to run experiments, emphasizing that leaders must validate these concepts through evidence rather than relying on external validation.
"do I was just talking to an executive who is responsible for labor relations for a huge industrial combine where they have very fractious union contract associations every three years so weird like ha..."
Navigating Hyper-Growth Challenges
Eric Ries reflects on the challenges faced by rapidly growing startups, particularly the disconnect between new employees and the company's founding culture. He highlights the importance of onboarding and cultural integration to maintain the entrepreneurial spirit as organizations scale, stressing that most employees lack the experience of building a startup from the ground up.
"that that's necessarily true as I said before this has not been rigorously studied so you got to prove it to yourself and don't skip that step just because you're excited about it I mean I appreciate ..."
Training for Entrepreneurial Mindsets
In this segment, Ries underscores the need for training and development in startups to cultivate an entrepreneurial mindset among employees. He warns that without proper guidance, new hires may revert to previous corporate behaviors, which can hinder innovation and growth.
"doing before what's a previous job just the law of large numbers says it probably wasn't founding another hyper growth startup from scratch because why are they working for you so probably they had a ..."
Building a Unique Company Culture
Ries discusses the importance of creating a distinctive company culture tailored to the specific needs of the organization. He emphasizes that while case studies can provide insights, each company must develop its own operating system and culture to thrive in a competitive landscape.
"other experience the point is having the experience of actually driving a startup from zero to hyper-growth it's just it's a statistically rare experience so the vast majority of people that are hired..."
The Future of Lean Startup Principles
In this concluding segment, Ries explores the future direction of lean startup principles, particularly in relation to long-term business strategies. He warns against the dangers of short-termism in corporate incentives and stresses the need for organizations to build sustainable practices that align with the evolving landscape of business.
"so so take that seriously and be like you are better for a better force you were on the bleeding edge of this and you got to learn for yourself you got to figure out for yourself what really makes sen..."
The Impact of Public Markets on Innovation
Ries explains how the structure of public markets can negatively affect innovative companies. He discusses the challenges faced by organizations that prioritize short-term gains over sustainable growth, and the need for a shift in how we evaluate success in the startup ecosystem.
"you all know what companies I'm talking about you just you watch it happen as these incredibly innovative organizations descend into madness and it's not that some of the people got Dumber after the I..."
Long-Term Thinking: The Key to Sustainable Innovation
This segment focuses on the necessity of long-term thinking in fostering a culture of continuous improvement. Ries draws parallels between lean manufacturing principles and the Lean Startup methodology, emphasizing that a commitment to long-term goals is essential for creating a thriving organizational culture.
"company like that's not fair they don't have any idea what they're talking about so it's like so it trickles down and we feel the pressure it's so I feel like there's kind of like a root cause illness..."
Metrics for Long-Term Success
Ries discusses the importance of developing metrics and processes that align with long-term objectives rather than short-term pressures. He highlights the need for organizations to adopt innovative accounting practices that reflect future growth potential, rather than solely focusing on immediate returns.
"resonated with me as I was developing Lean Startup because fundamentally if you're doing something small and short-term you don't need Lean Startup you don't need to do a Minimum Viable Product if you..."
The Long-Term Stock Exchange: A New Paradigm
In this segment, Ries introduces the concept of the Long-Term Stock Exchange (LTSE) and its potential to reshape how companies are valued in public markets. He discusses the regulatory challenges involved in establishing the LTSE and its goal of promoting long-term thinking in corporate governance.
"and learning how to talk about future learning in net present value terms it's all about bridging this fundamental divide that when you're in the flat part of the hockey stick your ROI is negative by ..."
Rethinking Exits: A Call for Lasting Value
Ries critiques the traditional notion of 'exit' in the startup world, arguing that it often leads to a decline in product quality and innovation. He advocates for creating institutions that prioritize lasting value over quick financial gains, emphasizing the need for a cultural shift in how we perceive success in entrepreneurship.
"company from the beginning yeah so should the long-term stock exchange gain traction how does it change the rewards and incentives for that type of company or for established company that chooses to j..."
Transforming Corporate Governance
Ries outlines key areas for improvement in corporate governance, including executive compensation and information-sharing. He encourages organizations to adopt Lean Startup principles to foster a more innovative and accountable environment, ultimately leading to better outcomes for both companies and their stakeholders.
"vision that we pour in calming a product achieve product market fit it's such a rare thing to squander it it just it breaks my heart so we have to do but I just think we have to come up with some bett..."
Humorous Lean Startup Experiences
Eric Ries shares some of his funniest experiences in the Lean Startup community, including quirky startup ideas and the eccentricities of entrepreneurs. He reflects on the surreal nature of meeting innovators with unconventional products, such as a jetpack creator. This light-hearted discussion underscores the passion and creativity that drive entrepreneurs, regardless of how outlandish their ideas may seem.
"yeah the great thing about being a private fellows you are starting a brand new private company from scratch you get to choose your own corporate governance mechanism and without geeking out about it ..."
The Journey of Personal Discovery
Ries explores the concept of pivoting in startups as not just a strategic business decision but also a journey of personal discovery. He emphasizes that true vision emerges when entrepreneurs are forced to make difficult trade-offs. This segment highlights the profound nature of entrepreneurship, where choices reveal deeper values and priorities, ultimately shaping the founder's vision and the direction of their startup.
"next year super so we have about a minute left I want to pull completely different questions from the audience and what would you say is one of your funniest lean startup experiences who was a guy wit..."