Lean Startup for Social Impact

Vincenzo Pallotta www.leanstart.ch

So, You Want to Change the World?

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Well, maybe start with something smaller…

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Implement it on a small scale…

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…and if there is traction…

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…then scale it!

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Lean Startup: a mindset shift…

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The Lean approach Minimize Waste Maximize Learning

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Experimental attitude: validate all assumptions!

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Ethnographic Attitude: know your stakeholders!

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If you want to solve a problem…

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An imperfect solution is better than no-solution!

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From Quality to Utility Useless perfect things Useful imperfect things

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Find your sweetspot…

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You need some tools…

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And some resources…

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A perfectly executed plan, can be still a failure…

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…if it fails delivering the right value!

To the right beneficiaries!

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Embrace failure…

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Capitalize on failure… Learn from it!

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What is a pivot?

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Fat vs. Lean Startups

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Impact cannot be predicted

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Lean Startup: are you ready?

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ü  You are convinced that in order to develop your project you need to build, measure and learn.

ü  You are ready to get out of your comfort zone and your reality distortion field.

ü  You accept to get out of the building and face your stakeholders.

ü  You accept failure as an opportunity to learn.

ü  You are willing to systematically validate all the hypotheses of your business model.

ü  You know that you don’t know much about your stakeholder and you want to learn it as fast as possible.

ü  You are ready to question yourself and change your strategy several time, without changing the vision.

Tell us your story of how you will change the world…

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�  Once upon a time, there was a student named Sofia who wished she could travel across Europe but flight tickets were too expensive for her budget. Traveling alone by train was not an option.

�  Every day, she stopped at travel agencies to check if there were some cheap flight deals.

�  One day, reading a newspaper she discovered a new airline that offered cheap flight tickets to several Europe destinations.

�  Because of that, she could buy tickets for the destination she always wanted to visit and she could learn foreign languages.

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4 main misconceptions about Lean Startup

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Lean Startup generates waste, not avoid it

�  When you pivot, you throw away what you have done so far (i.e. an experiment)

�  Actually, you plan validation experiments: �  Set deadlines �  Allocate resources

�  Determine progress and success

�  Learning is never a waste

�  Minimize resources / Maximize Learning

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Lean Startup is against Business Plans

�  No, Lean Startup allows you to create a Solid Business Plan for scaling the business!

�  Due diligence BEFORE writing the plan.

�  Separates the “Search for Product-Market Fit” phase and the “Execution for Scaling phase”.

�  Addresses the Market Risk first, and then the Technical Risk (if any).

�  Trust first hand facts, not market reports.

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Lean Startup means Cheap/Small

�  No, Lean Startup suggest to start on a small scale �  (i.e. do validation experiments)

�  ..and minimize waste of resources �  (i.e. fail fast and pivot)

�  Depending on your industry, you might require different types of bootstrap investments: �  Services: low investments, only people’s time �  Hi-tech products: medium investments (prototypes) �  Life-science: high investments (Research and Trials)

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Lean Startup leads to lack of focus because of pivoting

�  No, the vision stays. The Business Model evolves.

�  In the Build phase of the Validated Learning loop, you focus on the validation experiment.

�  Pivoting does not mean going in several directions.

�  Pivoting is a necessary measure after a fundamental hypothesis of the BM is invalidated.

�  Pivot saves you precious time avoiding going in the wrong direction by figuring out it as early as possible.

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