Lean Coffee: Culture

Today at Lean Coffee Toronto, we discussed Culture as a Competitive Advantage.

A few of my key takeaways:

• Culture is: The expression of your values
• Examples: Mediteranian vs.British vs. German
• Can be a big advantage for small companies
• Business was a lifestyle choice
• Enjoyed work and stuff outside of work
• Profit not the only motive -- sustainability too
• Formalized profit-sharing (after setting aside 3 months emerg. money)
• Working Group working retreat: Amazing ideas, great team building
• Marked a commitment to the future and to the team
• Defining the culture was a group effort
• Building a "post-modern" company: happiness and fulfillment as well as profit
• Reference: "Drive" (Dan Pink)
• Even in bad times, continued to do "extra" stuff like team retreats
• Growth spurts can hurt culture
• It takes a lot of time to hire people that meet the culture
• Often creates problems when companies grow quickly
• Ties into organization, process, procedures, scalability
• In small companies, culture is based on your personality
• When you grow, you need to abstract your values
• Successful models: Zappos, Apple, Google
• Employees drive culture in subtle ways -- when they show up, conversations, etc
• Culture defined stronger when founders are very involved in day-to-day ops
• People want ownership of stuff
• Is culture like a brand? Difference between reality and what is said/written

Thanks to Andres and Dom from TWG for hosting and facilitating today!

Lean Coffee: How to launch a product

This morning we chatted about how to launch a product the lean way. A few key observations:

• What's the definition of "launch" for Lean?
• Multiple "launches" during customer development
• You need to refocus you team from development to sales and support
• Infrastructure: As you move from beta, backup and failover systems become more important
• Looking for early adopters
• Do beta/soft launches first to smaller groups
• Don't see a lot of "big bang" launches anymore -- more "constant" betas
• However, "hard" launches are still common in enterprise (CDs, media, etc.)
• Slowly going away and moving to SAAS (software as a service)
• Product Lifecycle Curve (from Crossing the Chasm)
• Techniques:
• Target influential bloggers in the field
• LaunchRock (a bit spammy, but works)
• Need organic growth -- make it easy for people to do the marketing for you
• It's a different story launching something that people need to actually spend money on
• Difficult to cut through the noise and get people to pay attention
• The personal approach:
• "Bribe" early adopters and influencers and give a personal touch (example: Hashable)
• An email from the founder makes people feel important
• Personal connections can't be faked
• As you grow, build the personal connections into the culture ("customer development team")
• Big launch with press release, etc. less personal -- not as approachable
• Your current users are more valuable than new ones
• Are you launching a product, or launching a company (with a business model)?
• Don't assume it's going to "go viral" -- Design for if it doesn't
• Categories of influencers: How well do you know your customers?
• If you want to get coverage, have something truly interesting, novel to say (example Gmail "goggles")
• Key influencers (especially well-known ones) can make all the difference
• Frequent, iterative launches: Find "excuses" to get heard, and stay consistent
• It takes many times of people hearing something before they actually remember

This is great advice as I personally iterate towards progressively larger "launches" of our project management software, PMRobot.

These Lean Coffee sessions are always a great way to start the day and get thinking about "big picture" stuff that you might not otherwise.

Thanks to Jeremy for hosting, and everyone else for attending and contributing!

Lean Coffee: Fast and Focused

Adil at My City Lives hosted today's Lean Coffee about being "fast and focused".

Ironically, the topic drifted a bit, but there was a lot of great insight to be had, including:

• Common Problem: Doing all parts in parallel - not a nice linear flow
• There's a tendency to not do true customer development -- instead only validating the parts you've already built
• Lean makes a startups a science -- takes away some of the romance
• Question: Is Lean a "true science"? Premise: Fail faster
• If you find out an idea is not valid, the learning from the failure is a success
• Big Bang example: For Retrievr -- Spent $5-6K instead of $50-100K
• Repositioning: Can be creative -- example: instagr.am
• Figuring out behaviour is the hardest part
• Example: People don't actually spend time with their photos after they take them
• Medical software: 6-9 months to fail -- 1 customer validated
• Everyone wants to be the next Steve Jobs
• Be careful of being "married to your idea" -- not willing to change
• Do you want one "at bat" -- where you need a home run -- or a full career?
• What is the shortest amount of time you need to get actionable data?
• Lean really helps with you have a "hunch" -- within a few interviews, have a good idea
• Do you focus on one industry? Good to have a "beachhead"
• Too broad of an idea dilutes the MVP
• Focus is key -- don't be afraid to focus on one segment
• Much more compelling message if you reduce the scope
• Messaging and positioning needs to be unique
• Analogy: getting on a busy subway -- make yourself small and squeeze in

Great commentary from everyone today. Looking forward to the next!

Lean Problem Interviewing

Lean Coffee was hosted today by mad scientists in white lab coats (ie. the Big Bang Technology crew).

We talked about the Problem Interview and various tips & techniques, such as:

• Keep a "perimeter" -- don't go too far outside the topic
• Who/Where/What/When/Why questions (from journalism)
• Why validate?
• Are there any customers?
• Assumption: Your plan A won't work
• No validation = no repeatable sales process
• Beware of confirmation bias: Tendency to seek the answers you want to hear
• Problem interview vs. Solution interview (very different)
• Remember: Can pivot around the business model, solve different problems
• Do you need a script? Helps keep things on track - vs. map or outline
• But more open-ended discussion lets you discover a lot more
• Customers are like kids -- easy to lead them, and have them agree with things they don't actually want
• Should be a conversation, not a formal interview
• They'll tell you the symptoms -- you need to determine the problem
• Keep doing the interviews until you know what the answers are going to be
• Problem: Looking for what's "broken"
• Important: What people say vs. what they do is often very different
• Methodology doesn't prevent you from still missing the mark on a "must have" problem
• Failed products lead to the next one -- always learning
• Answers change in different contexts -- anonymously vs in a group (observer effect)
• Maximize the comfort level to get honest answers
• Warm them up: Ask about themselves, make environment safe
• Technique: Parrot back responses
• Lets them confirm, helps them feel more comfortable
• Discover people's motives

Another great session!

Next week I'm going to be in Orlando on business (I know, poor me) so hopefully someone else can take a few notes.

Problems Worth Solving

Today at Lean Coffee Toronto, we discussed the topic of "Problems Worth Solving".

We focused primarily on Customer Development and validation with some great discussion points:

• Relatively few products ever see "the light of day"
• Very few businesses (10%?) make it past the 2-year mark
• There's often a difference between end user and the person who's going to pay, ie. the customer
• Value chain: Need to talk to everyone, but be careful about focusing only on one piece at a time
• Developing a product inside a service business
• Risk of being introverted when you develop in-house
• Risk of entrenching vision and ability to pivot
• Often need to take a step back and talk to people outside
• Customer development
• Validate your problem first
• Then validate your sales process and ecosystem
• Is it acceptable to sell a product that isn't 100% finished yet?
• Yes. Find out if the idea sells. If yes, go to next step.
• Lean: Is there a kisk of killing bad ideas?
• Yes, but very small compared to the risk of building something nobody cares about
• Most devs are not good salespeople naturally
• Need to develop your sales skill set
• Session idea: Lean sales?
• Danger of "sales people" do customer validation -- might get overly optimistic early results
• Using Google ads, etc. to test hypothesis / validate customers
• A few people had tried this
• Kickstarter is essentially the Lean model (but need a US bank account)

Thanks to everyone for their participation, and to Mark at BNOTIONS for hosting and moderating.

To Document or Not To Document

As Lean Coffee TO's unofficial "documenter", I found our discussion on documentation very enlightening.

There seemed to be two opposing viewpoints -- oddly enough, from two physical sides of the room.

My bullet point summary follows:

• Why are people afraid of documentation?
• Makes it "real"
• Not enough time
• Documentation makes delegation possible
• Must be kept up to date
• Cost: overhead for every document you make
• Sometimes you'll write something and never look at it again
• Can documentation limit creativity? (depends on the type)
• Very important for remote teams
• Also important for new hires
• Organizing documentation is very difficult
• It should grow organically
• Document according to risk level
• Surgeons that document their process kill less people
• Helps "be kind to your future self"
• Example: Captain Picard and his log (had to be there to get this one -- awesome example :)
• People have many ways of learning -- writing helps think about problems differently
• Our brains are not designed for storage
• Lean aspect: Wait until there's real pain before documenting

And my own thoughts on the matter:

• I personally hate writing documentation, but...
• Our memories are more like goldfish than we think -- we forget stuff quick
• I document Lean Coffee out of necessity -- It's the only way I can justify the time invested to get some long-term learning that I can refer back to
• Documentation leads to Automation (and automation is very efficient/lean)
• Templates -- I only mentioned this briefly, but think it's ultra-important:
• Saves massive amounts of time with certain processes
• Again, leads to automation -- with a good, up-to-date template, I can create a proposal in 10 minutes that might have otherwise taken 3 hours
• You need to keep stuff in one place (or at least link the multiple sources together)
• Everything to do with my company is either in Google Docs or our project management system, and they both link to each other
• On the personal side of things, my girlfriend and I keep all important info in shared Google Docs and Google Calendars
• I've found that numbered lists or bullet points are better than paragraphs and sentences (since that's how we tend to think)
• Finally, I think that organizing documentation is far more important than simply creating it
• Perhaps you'd use some of your previous notes if they were actually somewhere you could find them :)

Refreshing Lean Coffee Toronto

Today we celebrated Lean Coffee Toronto's 20th meetup, hosted by the awesome folks at Foundery.

This was a "refresher" session, devoted to discussing the group itself and its future. A brief summary:

• Lean is all about the reduction of waste
• "Lean Startup" perhaps a cross between agile software development and agile customer development
• LeanCoffeeTO has a strong "support group" aspect to it
• Resource / Definition reminder: "Running Lean" book: Steve Blank, Eric Reis, Bootstrapping
• Comparing to religion -- pick subsets, slightly different beliefs, but common uniting factors: principles
• Useful stuff: Processes, Case studies
• Needs improvement: Moving from high level to specifics -- ie. metrics, measurements
• Needs more coverage: Marketing, Financing, Scalability
• Potential revisits of core topics
• Important to record and/or summarize (No record of some earlier meetups)
• Potential spinoffs or separations:
• Workshops
• Two different weekly sessions, split on Product/Process or Cust Dev./Technical
• Foundery: Coworking, Incubation, Unfinished on purpose: Let participants define what it is

And some personal opinions:

• Awesome (and somewhat surprising) how many people/companies have donated their space and bought coffee and snacks to support LCT -- My personal thanks to all of them!
• 30+ people is too big for the current format and splitting into multiple sessions would be beneficial
• I personally favor the biz/technical split -- possibly on tues/thurs morning
• Also I vote for a regular "official" Lean Drinks night -- perhaps once a month?
• Not big on the workshop idea, but seems like others are
• All of these things do require a bit of planning and organization
• Still, important to keep a nice balance between "formal" and "organic" (ie. it will suck if it gets too formal)
• Perhaps other can post their ideas as comments here or the LeanCoffeeTO message board?

P.S. If you'd like to be added to my LeanCoffeeTO Twitter list, just remind me at @jasonhanley or tweet with hashtag #LeanCoffeeTO and I'll add you.

Consulting Partnerships

Today's Lean Coffee Toronto features an interesting case study from Big Bang Technology. As usual, I took a few notes:

• They are a conservative company
• Diverse team with very different, non-overlapping skill sets
• Started doing consulting work with hobby projects on the side
• Found a partner that:
• Had many years experience and successful offline business
• Had a strong need for technical expertise
• Visionary
• Great with sales
• They don't own the product, but they have a revenue sharing agreement
• They do own 100% of their company
• Goals are aligned
• They put 100% of their passion into their client's product
• Advice: Don't go cheap on lawyers -- good agreements are gold
• What might they do different next time?
• Take an equity stake? (Additional potential reward for taking on more risk)

And a few of my thoughts:

• They have a really great agreement that seems to work very well aligning goals
• A partner like this is probably exceedingly difficult to find
• This arrangement came out of a failed project
• Should you chase failed projects for opportunities like this?
• What do you do if the client is a control freak?

Great job guys, and looking forward to the next case study!

How to fail successfully

Today I attended Lean Coffee Toronto's 15th Meetup. What a great group of people and amazing discussions.

We talked about the concept of "failing successfully". Here are a few notes I took:

• Don't put all your eggs in one basket
• "Parallel prototyping" helps -- better results with the same overall effort
• Make sure you learn lessons for future projects
• Admit your mistakes frankly
• When do you stop?
• Sometimes it's very hard to let go of an idea
• Always get external feedback -- advisory boards, etc.
• Example of successful failure: the production of Iron Giant
• Metrics and measurement:
• Define success and define failure
• Did you make money? Did you build your brand?
• Tie your metrics back to goals
• Always do a port-mortem

... and some thoughts of my own on the topic:

• WGMGD -- What gets measured gets done
• My biggest take from a Services Marketing class I took a while back
• Don't be "stealthy"
• Get your product out there as early as possible and get feedback
• "First to market" and "stolen ideas" are myths
• "Failure is always an option"
• Mythbusters and Adam Savage are awesome :)

Thanks again everyone for a great meetup!