Lean Principles for Nonprofits: Because Your Annual Plan is a Fraud
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Transcript of Lean Principles for Nonprofits: Because Your Annual Plan is a Fraud
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LEAN PRINCIPLES FOR NONPROFITS
BECAUSE YOUR ANNUAL PLAN IS A FRAUD
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INTRO• Kayvon K
• Twitter: @kayvonk
• Facebook.com/kayvank7
• Email: [email protected]
• To book an appointment: Go to :kahzoom.com/now and click on the orange BOOKNOW button
• Please also use #leanxvan
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WHAT IS LEAN STARTUP?
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CORE IDEASMINIMIZE WASTE
Lean startup philosophy seeks to eliminate wasteful practices and increase value producing practices during the product development phase so that startups can have a better chance of success without requiring large amounts of outside funding, elaborate business plans, or the perfect product.
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CORE IDEAS
BUILD SOMETHING THEY ACTUALLY WANT
Customer feedback during product development is integral to the lean startup process, and ensures that the producer does not invest time designing features or services that consumers do not want.
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CORE IDEAS
Lean startup philosophy counter-balance the infinite capacity of human to self-delusion
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CORE IDEAS
WHAT IS A STARTUP?
A human institution designed to deliver a new product or service under conditions of extreme uncertainty.
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CORE IDEASIf innovation is all about operating within conditions of extreme uncertainty, and if we are first and foremost in search of answers and only THEN building our products, then we have to get a lot better at getting answers quickly (and yes, social change work nearly always operates under conditions of “extreme uncertainty.”)
Innovation succeeds at specific point of equilibrium changes – when things are about to change, not after they've changed
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CORE IDEAS
To do this, we have to get better at what is called “validated learning” – getting clear data around our core assumptions – by iterating through a BUILD – MEASURE – LEARN cycle
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WHY LEAN IS IMPORTANT? WHAT IS THE POINT?
Unfair Advantage
An organization practicing lean principles has an unfair advantage against a completely equivalent organization that doesn’t.
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ACHIEVING FAILUREMajority of organization are very good at Achieving Failure
Definition: successfully executing a bad plan
If we're building something nobody wants, what does it matter if we accomplish it
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ACHIEVING FAILUREThe method of accountability in traditional management is about projecting into the future and measuring success by how they do compared to the forecast.
"Lean" comes from manufacturing. Manufacturing doesn't do not waterfall anymore.
The customer is the most important part of the production line. But we have to know who is the customer?
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WHAT IS THE MAIN GOAL OF A START-UP?
• It can also be applied to a project, new feature, a product development process.
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WHAT IS THE MAIN GOAL OF A START-UP?
TO FIND OUT WHAT WORKS
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WHAT IS THE MAIN GOAL OF A START-UP?
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THE LEAN STARUTUP CYCLE
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THE LEAN STARUTUP CYCLE
The main determinant of whether / how quickly we innovate is how quickly we can go through the BUILD – MEASURE – LEARN cycle
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THE LEAN STARUTUP CYCLE
The faster we go, the more quickly we learn, the more often we pivot, the less time we waste
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THE LEAN STARUTUP CYCLE
We optimize for learning and build organizations that are made to adapt quickly
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THE LEAN STARUTUP CYCLE
Lean startup its about teaching startups to speed up their learning.
(This makes sense, but it’s not how we (any of us) act most of the time)
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THE LEAN STARUTUP CYCLE
Startup = Experiment
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BUILDING A STARTUP
What does it take to go from an idea to implementation?
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BUILDING A STARTUPWaterfall (Product) Development
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BUILDING A STARTUPIt used to be:
A.We will write a (business) plan?
B.Then we would know everything there is to know
1. Operating plan
2. Financial Model
C.And we simply execute that plan
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BUILDING A STARTUP
Reality: No plan survives the first contact with clients
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BUILDING A STARTUPReason: Startups are not a smaller version of lagers companies
•Startups search
•Companies execute
Search for what? Execute what?
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BUILDING A STARTUP
We still need a plan
Planning that comes before The (business) Plan
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BUILDING A STARTUPSo a "Search Plan" first
Then an "Operating Business Plan" to execute
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BUILDING A STARTUPTool: The Business Model Canvas
•To organize your thinking
•To get out of the building
• To test the hypothesis
• And update our canvas
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BUILDING A STARTUP
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BUILDING A STARTUP
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BUILDING A STARTUP
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BUILDING A STARTUP
What problem are we solving?
What are we building?
And for whom?
Who is the customer?
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BUILDING A STARTUP
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BUILDING A STARTUP
Who are they?
Why would they buy?
Persona?
Multiple Customer Segments
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BUILDING A STARTUP
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BUILDING A STARTUP
How do we distribute our product?
How our products from out company gets to our customers?
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BUILDING A STARTUP
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BUILDING A STARTUP
How do I get customers?
How do I keep them?
How do I grow them?
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BUILDING A STARTUP
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BUILDING A STARTUP
What value is customer paying for?
What is the strategy to capture that value?
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BUILDING A STARTUP
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BUILDING A STARTUP
What are the most important assets we need to make business model work?Finance, Physical, Intellectual, Human
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BUILDING A STARTUP
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BUILDING A STARTUP
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BUILDING A STARTUP
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BUILDING A STARTUP
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BUILDING A STARTUP
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BUILDING A STARTUP
What are the COSTS to operate the business model?
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BUILDING A STARTUPTool: The Business Model Canvas
•To organize your thinking
•To get out of the building
• To test the hypothesis
• And update our canvas
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BUILDING A STARTUPTool: Lean Canvas
•To organize your thinking
•To get out of the building
• To test the hypothesis
• And update our canvas
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THE LEAN STARUTUP CYCLE
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BUILDING A STARTUP
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BUILDING A STARTUP
Do people have this problem?
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BUILDING A STARTUP
Is there a match between problem and solution?
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BUILDING A STARTUP
Repeat * Until proven
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BUILDING A STARTUP
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BUILDING A STARTUP
Creating end-user and demand
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BUILDING A STARTUP
The scalable organization to do it all
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BUILDING A STARTUP
Tool: Validation Board
•To get out ofthe building
•To iterate
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BUILDING A STARTUP
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BUILDING A STARTUPGet out of the building:
1.Design experiments
2.Run tests
3.Get data
4.Repeat
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BUILDING A STARTUP
It is about a search for a business model that works
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RESOURCES
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• Kayvon K
• Twitter: @kayvonk
• Facebook.com/kayvank7
• Email: [email protected]
• To book an appointment: Go to :kahzoom.com/now and click on the orange BOOKNOW button
• Please also use #leanxvan