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Reflections on a movement | Eric Ries (creator of the Lean Startup methodology)

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Oct 29, 2023

Guest

Eric Ries

Eric Ries, the creator of the Lean Startup methodology and founder of the Long-Term Stock Exchange, dives deep into startup culture. He discusses common misconceptions about Minimum Viable Products (MVPs) and the importance of adapting through failures. Ries also shares his insights on the role of AI in product development and emphasizes aligning company governance with ethical values. Listeners will appreciate his journey from startups to advocating for long-term strategies, all while stressing the value of customer feedback and adaptability.

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insights

INSIGHT

Craft and Customer Needs

True craft in product development comes from aligning with customer needs.
Blindly prioritizing perfection without customer validation leads to wasted effort and misaligned products.

question_answer

ANECDOTE

Standing Up for Beliefs

Eric Ries emphasizes the importance of standing up for your beliefs, even at the risk of getting fired.
There are far worse things than failing, particularly building or working for unethical companies.

volunteer_activism

ADVICE

Pivot or Persevere?

If unsure about pivoting, give yourself fixed time to improve the current product, then assess.
Introspect whether you'd still start the same company if given the chance to start over.

Get the Snipd Podcast app to discover more snips from this episode

Reflections on the Lean Startup Journey

05:01 • 23min

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Navigating MVPs and User Expectations

27:51 • 10min

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Rethinking Minimum Viable Product

37:36 • 29min

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The Transformative Journey of Startup Pivots

01:06:41 • 4min

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Navigating the Startup Journey: Embracing Pivots

01:10:21 • 8min

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Harnessing AI in Product Development

01:18:44 • 13min

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Reimagining Governance in Tech

01:31:35 • 27min

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Book and Media Recommendations

01:58:12 • 4min

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The Importance of Singular Control in Product Management

02:02:38 • 2min

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Integrating Personal Mottos into Business

02:04:59 • 9min

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#103

• Mentioned in 167 episodes

The Lean Startup

Eric Ries

The Lean Startup introduces a revolutionary approach to building and scaling businesses, emphasizing continuous innovation, customer feedback, and scientific experimentation. Eric Ries defines a startup as an organization dedicated to creating something new under conditions of extreme uncertainty. The book advocates for 'validated learning,' rapid experimentation, and the Build-Measure-Learn feedback loop to shorten product development cycles and measure actual progress. It also stresses the importance of pivoting or persevering based on data and customer needs, making it an essential read for anyone involved in starting or growing a business.

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The Murderbot Diaries

A Science Fiction Series

Martha Wells

The series is told from the perspective of Murderbot, a 'SecUnit' owned by a futuristic megacorporation. It explores themes of autonomy, identity, and human relationships as Murderbot navigates various challenges and encounters. The series includes novellas such as 'All Systems Red', 'Artificial Condition', 'Rogue Protocol', and 'Exit Strategy', as well as the full novel 'Network Effect' and subsequent works like 'Fugitive Telemetry' and 'System Collapse'. The series is praised for its witty dialogue, complex characters, and insightful commentary on human society.

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Snow Crash

Neal Stephenson

Published in 1992, 'Snow Crash' is a science fiction novel by Neal Stephenson that delves into a future where the United States has fragmented into corporate city-states and the internet has evolved into a virtual reality called the Metaverse. The story follows Hiro Protagonist, a pizza delivery driver and part-time hacker, and Y.T. , a teenage skateboard courier, as they navigate a complex world threatened by a mysterious computer virus and a powerful drug known as Snow Crash. The novel explores themes of history, linguistics, anthropology, and computer science, and is noted for its prescient vision of the metaverse and its influence on Silicon Valley innovators.

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The Enlightened Capitalists

Cautionary Tales of Business Pioneers Who Tried to Do Well by Doing Good

James O’Toole

The Enlightened Capitalists by James O'Toole explores the stories of business pioneers who attempted to create organizations that were both profitable and socially responsible. Through vivid storytelling and extensive research, O'Toole highlights figures like William Lever and Robert Owen, who implemented forward-thinking practices to benefit employees and communities. However, many of these initiatives were eventually dismantled as companies changed hands, raising questions about the compatibility of virtuous practices with shareholder capitalism.

#31578

• Mentioned in 2 episodes

The Dandelion Dynasty

A series of epic fantasy novels

Ken Liu

The Dandelion Dynasty series by Ken Liu is a reimagining of the birth of China's Han Dynasty, set in a fantasy world with elements like airships and gods. The series explores themes of power, loyalty, and the complexities of ruling. The first book, 'The Grace of Kings,' introduces two main characters, Kuni Garu and Mata Zyndu, who embody different ideals of governance.

Eric Ries is the creator of the Lean Startup methodology, author of the New York Times bestseller The Lean Startup, and founder of the Long-Term Stock Exchange (LTSE). He’s also a multi-time founder and currently advises startups, VC firms, and larger companies on business and product strategy. In today’s episode, we discuss:

• The current state of the Lean Startup methodology

• Common misconceptions about the Lean Startup methodology

• Understanding how to actually think about MVPs (minimum viable products)

• When to pivot and when to stay the course

• Thoughts on AI and how to deal with uncertainty

• How to structure your company around core values and create products that benefit humanity

• The philosophy behind Eric’s current big idea: the Long-Term Stock Exchange

• Much more

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Find the full transcript at: https://www.lennyspodcast.com/reflections-on-a-movement-eric-ries-creator-of-the-lean-startup-methodology/#transcript

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Where to find Eric Ries:

• LinkedIn: https://www.linkedin.com/in/eries/

• X: https://twitter.com/ericries

• Website: https://theleanstartup.com/

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Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• X: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

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In this episode, we cover:

(00:00) Eric’s background

(04:46) Eric’s recent activities and projects

(06:23) Eric’s start in advising and first-principles thinking

(10:56) Lessons from designing the Lean Startup process

(14:04) The current state of lean startup methodology

(22:33) Common misconceptions about the methodology

(24:28) Changes Eric would make in an updated version of Lean Startup

(27:52) An explanation of minimum viable product (MVP) and why Eric still stands by the process

(37:36) An example of “Less is more”

(41:24) More on MVPs and the importance of testing your hypotheses

(41:24) How LTSE had to pivot after a partnership fell apart

(48:37) Eric’s take on the concept of craft

(53:36) Why getting fired for standing by your conviction can be a career accelerator

(55:17) Tech’s mental health crisis

(56:28) Advice for founders stuck in a “zombie company”

(1:00:16) How continuous pivots shape a company’s vision, with a real-life story

(1:08:20) Challenges in assessing companies from an external perspective

(1:13:17) Practical advice for businesses considering a pivot

(1:18:42) The impact of artificial intelligence

(1:26:59) The current capabilities of ChatGPT and its potential use as an equalizer in the marketplace

(1:31:26) Eric’s current work with founders on human flourishing

(1:42:40) Advice for founders who want to build ethical companies

(1:49:37) Examples of first-principles thinking

(1:53:42) Why shareholder primacy theory is wrong

(1:55:19) The “spiritual holding company”

(1:58:12) Lightning round

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Referenced:

• The Long-Term Stock Exchange: https://ltse.com/

• The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses: https://www.amazon.com/Lean-Startup-Entrepreneurs-Continuous-Innovation/dp/0307887898

• Lean manufacturing: https://www.techtarget.com/searcherp/definition/lean-production

• Six Sigma: https://www.6sigma.us/six-sigma.php

• Clay Christensen: https://claytonchristensen.com/

• Eric Ries on 4 Common Misconceptions About Lean Startup: https://www.entrepreneur.com/starting-a-business/eric-ries-on-4-common-misconceptions-about-lean-startup/286701

• Anakin Skywalker meme: https://knowyourmeme.com/memes/for-the-better-right

• Linear: Building with taste, craft, and focus | Karri Saarinen (co-founder, designer, CEO): https://www.lennyspodcast.com/inside-linear-building-with-taste-craft-and-focus-karri-saarinen-co-founder-designer-ceo/

• Snow Crash: https://www.amazon.com/Snow-Crash-Neal-Stephenson/dp/0553380958

• IMVU: https://about.imvu.com/

• Ben Silbermann on LinkedIn: https://www.linkedin.com/in/silbermann/

• Wonder Boy: Tony Hsieh, Zappos, and the Myth of Happiness in Silicon Valley: amazon.com/Wonder-Boy-Zappos-Happiness-Silicon/dp/1250829097

• Understanding Steve Jobs’s Reality Distortion Field: https://www.emexmag.com/understanding-steve-jobs-reality-distortion-field

• Paul Graham’s website:http://www.paulgraham.com/raham

• Segment: https://segment.com/

• Loom: https://www.loom.com/

• The Slack story: https://www.paperflite.com/blogs/slack-story

• The Social Network on Netflix: https://www.netflix.com/ca/title/70132721

• Thomas Kuhn: Paradigm Shift: https://www.simplypsychology.org/kuhn-paradigm.html

• Conway’s Law: the little-known principle that influences your work more than you think: https://www.atlassian.com/blog/teamwork/what-is-conways-law-acmi

• Monty Python and the Holy Grail Guards Scene on YouTube: https://www.youtube.com/watch?v=eVWH01E2weA

• Toyota Production System: https://global.toyota/en/company/vision-and-philosophy/production-system/

• Warren Buffett’s Forbes bio: https://www.forbes.com/profile/warren-buffett

• The Enlightened Capitalists: Cautionary Tales of Business Pioneers Who Tried to Do Well by Doing Good: amazon.com/Enlightened-Capitalists-Cautionary-Business-Pioneers/dp/0062880241

• The Grace of Kings (The Dandelion Dynasty): https://www.amazon.com/Grace-Kings-Dandelion-Dynasty/dp/148142428

• All Systems Red: The Murderbot Diaries: https://www.amazon.com/All-Systems-Red-Murderbot-Diaries/dp/0765397536

• Star Wars: Andor on Disney+: https://www.disneyplus.com/series/star-wars-andor/3xsQKWG00GL5

• Tesla Powerwall: https://www.tesla.com/powerwall

• Levoit Classic 300S ultrasonic smart humidifier: https://www.amazon.com/LEVOIT-Humidifiers-Ultrasonic-Essential-Customized/dp/B09C24TYGQ

• The Law of Sustainable Growth: https://www.linkedin.com/pulse/20121015181612-2157554-the-law-of-sustainable-growth/

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Lenny may be an investor in the companies discussed.

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