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Fat startup: Learn the lessons of my failed Lean Startup

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Re: Fat startup: Learn the lessons of my failed Lean Startup

#41
I sympathize with the author. Lean Startup is a very good tool that should be in your toolbox, but it's being sold and resold as "the way". It's not the only way, and it doesn't guarantee success, not more so that knowing the scientific method guarantees you a Nobel prize, or a published paper.

Lean methods make some implicit assumptions about the cost of finding early adopters and building MVPs, and each entrepreneur should figure out the costs of such activities and determine if they are worth pursuing provided the potential benefit. In enterprise software settings, for example, an MVP might mean 2 years of work, that means you have only one iteration if you follow the lean methods by the book. Does that mean that you can't successfully build enterprise software? Of course you can. You can work with a customer for 2 years, deliver this product to them, and then market it to other similar companies, and then, only then, iterate. Is this still Lean? I don't know.

Also, I can't fail to see Lean as an optimization method, similar to gradient descent. With gradient descent, each iteration you inch up in the direction that seems to bring the highest reward. When using gradient descent in real world you realize that where you start matters, and the function you are exploring also matters, a lot. You can start iterating near a minimum, and have a straight descent line, but you might iterate on a plain, and basically be lost forever. Of your function might have many local minima. You have to first explore the problem space and make sure you where you start iterating close enough to the minimum, or that a good solution can be found by iterationz. Where you start, or when you decide to restart, is what the Entrepreneur's vision provides.

Gradient descent is also quite blind, and the fact that the last 20 iterations in one direction didn't bring any success provides no insight on what is going to happen if you iterate once more. The function you're exploring might just have a sharp drop one iteration away, or it might continue to be flat for 100 more steps.

If your MVPs can be built quickly, or if you are close to the optima, or you have unlimited cash and time to explore, the lean method is the way to go. For other cases, you might have to weigh in the pros and the cons.

Re: Fat startup: Learn the lessons of my failed Lean Startup

#42
post #10

I like the term "minimum desirable product". Minimum viable product suggests something that barely works, while minimum desirable product alludes to something people actually want.

> I like the term "minimum desirable product". Minimum viable product suggests something that barely works, while minimum desirable product alludes to something people actually want.

I think "minimum viable product" works, and is better than "minimum desirable product" at describing the goal, since to be viable as a product something must not only be desired, but be desired by customers willing to pay for it sufficiently to meet the marginal costs of delivering it.

Of course, an MVP can fail to be viable as a product and still deliver validated learning (as I understand, the original definition of the purpose an MVP) that progresses you toward something viable as a product, but the goal at each iteration should be to have something valuable as a product (and this is consistent with the more general lean methods which lean startup draws on, where each iteration aims to do the minimum work that will produce independent business value.)

Re: Fat startup: Learn the lessons of my failed Lean Startup

#44
Right off the bat, it looks like the problem lies in 'we built a software product that simplified how nonprofits plan and measure their social and environmental impact.'. It just seems nothing was built that people wanted to pay for. The product wasn't marketed to people that have the money to pay for it and see the value in doing so. Also they got confused by thinking 'viable' is different to 'desirable'. It's the exact same thing. MVP doesn't mean what's the smallest piece of junk you can throw together and call it software. It means if you strip everything out of your idea and product, what is the one feature that customers would find useful and pay for.

Re: Fat startup: Learn the lessons of my failed Lean Startup

#45

I always find it interesting when a methodology XYZ is critiqued its adherents invariably claim "that's not really XYZ."

> I always find it interesting when a methodology XYZ is critiqued its adherents invariably claim "that's not really XYZ." If the example given to justify the criticism isn't actually applying what XYZ calls for, its a perfectly legitimate response. Often, the problem may still be with the methodology, and it may just be that the methodology isn't practical to implement because it makes unrealistic assumptions, but t…

The problem is, you can discredit any failed startup by saying their MVP just wasn't viable enough. Well, duh. Knowing what's viable and building it is the difficult part, but isn't that what lean methodology is supposed to help with to begin with? Lean methodology inadvertently makes it seem like the hard part is the easy part, and therefore confuses people.

Re: Fat startup: Learn the lessons of my failed Lean Startup

#46

  * Development costs too much to afford iterating.
  * Mobile app that customers didn't ask for.
  * Language customers didn't understand.
  * MVP not actually being viable.
I'm sure there are more, but my take-away is that this was not a lean startup.

If your development costs are such that you can't iterate on new ideas, you might not have a lean startup.

If you are presenting features that your customers aren't asking for, you might not have a lean startup.

If your customers can't understand what you are showing them and you aren't immediately changing it, you might not have a lean startup.

If you are trying to target big and little customers at the same time (or don't know who your customer is), you might not have a lean startup.

If your minimum viable product isn't viable, you...well, you don't have a minimum viable product. The point of the MVP is to provide enough value that customers see more value in using it than it costs. Anything less than that is just some features thrown together.

In the end, I'm not sure if OP agrees with me or not, but this sounds like a focus problem: trying to do to much instead of focusing in on the pain that gets you in the door.

Another note on MVP: It changes over time. Initially, an MVP may just be some powerpoint slides that show your idea. That may be enough to get you some conversations. Later, when targeting your initial customers, it may be a feature or two that helps them solve their immediate needs. Later still, when you want to start mass-marketing, it needs to be something more.

A key takeaway: Just because Lean is simple doesn't mean it is easy. It takes a lot of discipline to keep from putting the cart ahead of the horse.

Re: Fat startup: Learn the lessons of my failed Lean Startup

#47
I think the author hits the nail on the head with the term "minimal desirable product" rather than "minimum viable product".

Many of the commenters here are replying with things like, "Dude, you don't understand the meaning of the term 'viable'." I can say that I've worked with plenty of developers who think of MVP as "the minimum amount of shit I need to build to ship this thing" rather than "this is the minimum that needs to be developed to make something that someone would be happy to use."

With all that said, I think changing the term to "Minimum Desirable Product" would be something that helps get everyone involved with a software product on the same page.

Re: Fat startup: Learn the lessons of my failed Lean Startup

#48
I'm voting this up. It has so many problems that everybody should know and talk about them.

"...First, the minimum viable product preached by Lean Startup has limited practical use. Customers aren’t interested in funding your “learning.” They want reliable software that delivers value consistently. You must build the minimum desirable product, and if you don’t have a good understanding of what’s desirable before you start, then, don’t...."

What value and growth hypotheses are you testing? Seriously, nobody is expecting your customers to put up with crappy development. What we're saying is that you must clearly explain what you are trying to learn before each rev. Just coding up some minimalist POS and irritating a potential customer with it doesn't take you anywhere down the learning road. Pro tip: irritating people will not give you good results in your quest for learning.

Lean startup stuff says everything you do should be geared towards proving a value or growth hypothesis. You should have a disciplined way of testing, and numbers that mean success or failure -- ahead of time. Yes, you do it in loops. Yes, there's all kinds of other stuff. Yes, you're always focusing on eliminating waste. But I think this guy missed the point completely. The MVP is where two proven hypotheses are deployed in tandem to a target market.

I could go on, but I don't want to be mean. We learn much more from watching people misunderstand things than we do watching successes. Thanks to casca for posting it.

Re: Fat startup: Learn the lessons of my failed Lean Startup

#49
post #25

I'd like to suggest that all the lessons learned here are precisely what Lean Startup teaches-- with techniques that are meant to prevent you from spending two years in a death spiral. Segue to edit of my standard rant on this subject: (originally posted on: http://news.ycombinator.com/item?id=3429906 ) MVP != half assed, cheap, shitty product. It is exactly what it says: a minimum viable product, key word being viab…

Yes, yes, yes.

There are so many things they did that are obviously wrong from the Lean Startup perspective. And then he goes and blames the Lean Startup material, rather than their understanding of it.

For example, his notion that product management is supposed to be casual and erratic is not what the Lean Startup approach suggests. The essence of the approach is in proving that customers really need something before you invest in it. It's a disciplined, data-driven approach. But he says they built half-assed features that nobody needed, and somehow blames that on the Lean Startup stuff.

Also, he preaches about controlling expense. The word "Lean" in "Lean Startup" comes from Lean Manufacturing, the heart of which is relentlessly discovering and eliminating waste. How in the world did he get from that to being free-spending and wasteful?

And then this makes me crazy: "By this stage, Lean Startup theory told us we should be scaling up." No. No, no, no, no, no. No! The Lean Startup theory is that you start scaling if and only if you have achieved product-market fit and have a sustainable way to deliver. He described nothing to suggest they were close to product-market fit. Indeed he says they were limping.

Or his sudden too-late realization that software quality is important. The Lean Startup stuff is basically Extreme Programming plus Customer Development plus some Lean philosophy. Extreme Programming is one of the most quality-focused methods. At my Lean Startup, we had high unit test coverage, strong acceptance tests, lots of code review, and very high quality. 18 months ago I gave a talk on how quality practices were vital when using the Lean Startup approach:

http://vimeo.com/24843552

And it's not like I was the first, or even the 10th person to talk about this. Rather than blaming the Lean Startup approach, he should blame his poor understanding, and his cargo-cult adoption of various rituals he apparently couldn't fathom.

Re: Fat startup: Learn the lessons of my failed Lean Startup

#50

Earlier quoted context omitted.

> I always find it interesting when a methodology XYZ is critiqued its adherents invariably claim "that's not really XYZ." If the example given to justify the criticism isn't actually applying what XYZ calls for, its a perfectly legitimate response. Often, the problem may still be with the methodology, and it may just be that the methodology isn't practical to implement because it makes unrealistic assumptions, but t…

The problem is, you can discredit any failed startup by saying their MVP just wasn't viable enough. Well, duh. Knowing what's viable and building it is the difficult part, but isn't that what lean methodology is supposed to help with to begin with? Lean methodology inadvertently makes it seem like the hard part is the easy part, and therefore confuses people.

> Knowing what's viable and building it is the difficult part, but isn't that what lean methodology is supposed to help with to begin with?

Lean approaches (including, but not limited to, lean startup) provide basic rubrics about where to focus your efforts to optimize return for effort. They aren't, however, a magic wand that substitutes for skill, judgement, and domain expertise (well, perhaps a little for the last, since inherently lean uses the scientific method to grow domain knowledge in a highly-focussed way, but unless you've got a deep reserve of resources to fund failures that you learn from, or get really lucky, you are still likely to fail without domain expertise going in.)

The biggest problem with lean now is it is being treated as if it were a formulaic, recipe-driven methodology that substitutes for specialized skill, when lean is pretty much an anti-recipe approach that is all about everything you do being part of a continuous hypothesis-test-review improvement cycle, including the kind of things you might get from a book discussing practices that others developed via lean, which may provide a starting point for your practices, but not a fixed methodology.

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