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Lean Intrapreneurship - Lean Startup in Established Companies Carl Danneels Feb 5th 2014
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Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Jun 20, 2020

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Page 1: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Lean Intrapreneurship - Lean Startup in

Established Companies

Carl Danneels

Feb 5th 2014

Page 2: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Key Challenges

1. Integrate Lean Startup with Agile

2. Adapt the Product Management approach

3. Organize & Staff Lean Startup initiatives

4. Dealing with Politics & Culture

Page 3: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

We’re already using Scrum! So the step to Lean Startup is

peanuts. Right ?

3

Challenge 1 : Delivery H2 Integrate Lean Startup

with Agile Delivery ?

Page 4: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

The Scrum Startup ?

Sources: Roman Pichler

Page 5: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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Iterative Solution + Static Business Model

Suboptimal Results

The real challenge …

Page 6: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Disruptive innovation Disruptive Innovation

Product Owner

Customer Dev’t/Lean Startup Scrum/XP/Kanban

Sources: Steve Blank

Page 7: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

LS increases the speed of learning

Source: Ash Maurya

Page 8: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Scrum Board …

Page 9: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

… now including Customer Validation

CUSTOMER VALIDATION

Source: Ash Maurya

Page 10: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Source: Rallydev.com

Challenge 2 : Product Mgmt H2 Adapt the Product Dev’t approach ?

Page 11: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Business Model Canvas

Customer Development

Page 12: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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What is a

Business Model?

Page 13: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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“A business model describes the rationale of how an organization creates, delivers & captures value”

-Alexander Osterwalder

Page 14: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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A business model used to be static and survived for many years.

Page 15: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Business Model vs. Business Plan

Source: Ash Maurya

Page 16: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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What are the components that make up a business model?

Page 17: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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Source: Alex Osterwalder

Page 18: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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Business Model Canvas

Lean Canvas

efficiency value product market

Source: Adapted from Osterwalder & Maurya

Page 19: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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Hypothesis &

Validation

Page 20: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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? ? ? ? ?

?

? ?

?

?

? ?

“I wonder how much of this is reality…”

Source: Adapted from Alex Osterwalder

“Let’s validate our riskiest assumptions”

Page 21: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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Does your product solve a need for the Customer Segment?

How do you validate or invalidate that statement?

Source: Adapted from Alex Osterwalder

Page 22: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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1 2

4

3

Page 23: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Systematically Test Your Plan

Source: Eric Ries

Page 24: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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1

2

4

3 3.1

Source: BigVisible Solutions

Page 25: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Are your teams empowered to use a canvas?

What will be the impact

of the new Business Model on your Organisation ?

Page 26: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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Vision

Strategy

Team

Page 27: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Customer Development

Sources: Steve Blank, Ash Maurya & Eric Ries

Challenges • A different process

• Earlier exposure

Page 28: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Challenge 3 : Organization H2 Organize & Staff for

Startup initiatives

Agile initiatives

Lean Startup initiatives

Traditional projects

On the job

Source: Dave Snowden

Page 29: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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Process Problem Solution Dedication Model

On the job Known Known or unknown

Low 1

Waterfall Known Known Medium 2

Agile Known Unknown High 2 or 3

Lean Startup

Unknown Unknown High 3

Different Processes

Page 30: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Outside the Performance Engine

Source: Trimble & Govindarajan

The Innovation Spectrum

Page 31: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Lean Startup Mgmt Structure

Innovation

Source: Trimble & Govindarajan

PMO ?

Page 32: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

PMO: some POV’s on the matter

PMO as Biz-IT Innovation Broker

Beyond Budgeting !

Page 33: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Tracking for Lean Startup ? Innovation Accounting !

« PIRATE METRICS » INSTEAD OF « VANITY » METRICS !

Source: Dave McClure

Page 34: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

A steep learning curve

Page 35: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

What about staffing ?

Source: Rallydev

Page 36: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

Staffing Challenges

Stripped of entrepreneurial motivation ?

– Organisational constraints: - Constricting filter/incremental innovations

– Upside: - Equity ownership – trade cash for stock

– Internal politics - Internal politics turn intrapreneurs into internal marketers - Promising to align with business units in exchange for their

buy-in => sub-par products

Source: Rallydev

Page 37: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

There is a much better way

-It involves putting intrapreneurs under a corporate structure enabling autonomy -Compensating with entrepreneur-like incentives minimum wage – intrapreneurs betting their career

-Applying Lean Startup methods to measure progress and ROI. -Allow failure

Page 38: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

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Challenge 4 : Leadership H2 Deal with Politics & Culture

Be the change Understand what it takes Step by Step

Page 39: Lean Startup in Established Companies - 52weekturnaround · Lean Startup in Established Companies Carl Danneels Feb 5th 2014 Key Challenges 1. Integrate Lean Startup with Agile 2.

What’s on your mind ?

Contact info: [email protected] www.plethon.eu