20. Understand the core challenge your
customers are trying to solve.
Focus on the problem
• What are they trying to do? Why?
• What pains are they experiencing?
21. • Get out of the building
• Listen more, talk less
• Seek out non-users
• Gather and evaluate feedback
How to focus on the problem
22. A fundamental change in strategy based
on validated learning; a course correction
Pivot
(Ries, 2011)
25. Focus development on one or two key
groups who will benefit from the service.
Build for the few
• Who stands to gain the most?
• Which groups are easiest to reach?
26. • Choose customers who share a need
• Choose customers you can access
• Find early adopters
• Invite them to co-create
How to build for the few
27. Breaking down a larger market into smalle
identifiable groups of users who share
specific needs.
Segmentation
(Cooper & Vlaskovits, 2010)
30. Iterate and improve your approach based
on what you learn.
Build-measure-learn
• Which assumption can you test next
• What can you build to test it?
31. • Build successive prototypes
• Monitor user behavior
• Run A/B tests
How to build-measure-learn
32. A product or service with just enough
features that allow it to reach the market.
Minimum Viable Product
(Ries, 2011)
40. Communicate the benefits that you gener
for your customers clearly and precisely.
Articulate your value
• Why would people choose you?
• What’s in it for your customers?
41. • Make your value explicit
• Be succinct
• Tailor your value to each segment
• Internalize values with staff
How to articulate your value
42. The bundle of products and services that
create value for a specific customer segm
Value proposition
(Osterwalder & Pigneur, 2010)
47. Blank, S. (2014). Steve Blank [blog]. Retrieved from http://steveblank.com
Blank, S. & Dorf, B. (2012). The Startup Owner’s Manual. Pescadero, CA: K&S Ranch
Cooper, B. & Vlaskovits, P. (2010). The Entrepreneur’s Guide to Customer Development. Newport
Beach, CA: Cooper-Vlaskovits
Komisar, J. & Mullins, R. (2009). Getting to Plan B. Cambridge, MA: Harvard Business.
MaRS. Entrepreneur’s Toolkit. Retrieved from http://www.marsdd.com/entrepreneurs-toolkit/
Mathews, B. (2012, April). Think like a Startup [white paper]. Retrieved from
http://vtechworks.lib.vt.edu/handle/10919/18649
Osterwalder, A. & Pigneur, Y. (2010). Business Model Generation. Hoboken, NJ: Wiley
Ries, E. (2011). The Lean Startup. New York: Crown.
References
Editor's Notes
(MJ)
(MJ)
(MJ & Helen)
Intro: Helen
UTM Institute for Management and Innovation; MaRS; etc.
Intro: MJ
UG Library; Course Instructor for Entrepreneurship; etc.
(MJ)
Agenda
Too difficult to cover everything on this topic
Our strategy: five simple strategies to run your Library more like a startup
This session is an opportunity to think about different approaches
We want this to be thought-provoking – save time for discussion at the end
(MJ)
Objectives
Introduce basic principles of startup thinking
Suggest practical steps to get started
Invite discussion on startup thinking in libraries
(MJ)
(MJ)
Libraries are NOT Startups
We don’t have the same revenue model or profit motive
We have institutional constraints and complexity (i.e. established norms)
We are established organizations (i.e. we’re not just starting up)
We have legacy systems & structures (i.e. inherited baggage)
We have to negotiate the analog-digital divide (i.e. we can’t be purely digital)
(Helen)
(Helen)
The Case for Startup Thinking in Libraries
We operate with limited resources
We experience conditions of uncertainty
We need to respond to and anticipate change
Our staff are committed to the mission of the profession
We build/support platforms for users to do more of what they want
(Helen)
(Helen)
(Helen)
Entrepreneurs are adrenaline junkies with a high-tolerance for risk
Not true: serial entrepreneurs adopt processes for reducing risk
(Helen)
(Helen)
Entrepreneurs rely exclusively on their intuition
Not true: serial entrepreneurs commit to evidence-based processes
(Helen)
(Helen)
Entrepreneurs emerge from their garage with perfectly formed ideas
Not true: serial entrepreneurs commit to iterative improvement
(Helen)
Learning Organization
In essence: Startups are committed to learning and discovery
Learning what works (and what doesn’t)
Discovering what people want (or don’t want)
Libraries foster learning and discovery for our users
BUT the best libraries foster learning within their organization
Our premise: startups offer engaging approaches that we should translate for our context
(MJ)
(MJ)
(MJ)
1. Focus on Understanding the Problem
Startups try to understand the root problem that customers face
They talk a lot about user pain – and spend a lot of time & energy diagnosing that pain
What are users trying to do and what is blocking them or making it difficult to do X, Y or Z
They dive deep into the problem with empathy
They design a solution that suits based on what they learn
To truly focus on the problem, we need to stop looking for solutions that fit our view
Too often this leads to solutions that we like, that work with our systems, that solve our inefficiencies
We need to adopt the customers’ mindset and stop making assumptions about how they think or what they experience
(MJ)
How to Focus on the Problem
Get out of the building
Listen more, talk less
Find data first hand
Make customer interaction a regular part of every process
Go to where their users live – they seem them at work, at home, understand their workflow
Gather and evaluate feedback regularly
Seek out non-users
Determine why they aren’t using the service or coming to the library
Find out how they are solving the problem instead
(MJ)
Key Concept: Pivot
A fundamental change in strategy based on learning
Because startups admit that they don’t know everything and don’t invest as much up-front, they can change more easily and rapidly
After a pivot, the startup has a number of new untested assumptions or hypotheses that need to be tested
(MJ)
Be prepared…
To be humbled
People won’t see the need as you see it
They often don’t see the value in what you’re offering
They have lots of opinions about why your product is bad
Remember: Don’t get defensive, honest feedback is essential to getting to the root of the problem
(Helen)
(Helen)
2. Build products for the few (at least at first)
Startups don’t have a lot of resources, so they can’t build for everyone
They focus on one or two key groups
They choose groups that are most likely to see value in the product and who are relatively easy to target or sell to
If the effort fails it only fails with a small group of people
If you build for everyone from the outset, you might please no one
You might produce a bland solution that doesn’t excite anyone
You might invest too many resources in an unproven idea
Start small with a few users - once you have traction with your idea, you can scale your offering
(Helen)
How to build products for the few
Select target customers who are already familiar with you
It is easier to start with segments of your customers that you know well (and who have some knowledge of your services)
It’s also easier to access these people what they think you need more information
Find early adopters
Who really needs your solution?
Who is most likely to overlook any early bugs or inconsistencies?
(Helen)
Key Concept: Segmentation
This can be hard for libraries, but we need to break down large groups into smaller segments with easier to define needs
By defining the needs it becomes easier to build something that works for the segment
The hope is that these early adopters will love what you’re doing so much that they’ll become your best sales people AND you can get them hooked on what else you offer
(Helen)
Be prepared…
For pressure to increase scope
Libraries have a cherished value for being open and accessible to everyone
BUT those egalitarian values get us into trouble when we think that everything we build has to be for every possible customer
Remember: Increase scope and scale, after you’ve validated the idea with customers
(MJ)
(MJ)
3. Build-measure-learn
Startups prefer an iterative design approach
Instead of launching a fully featured product, they launch a barebones service to see if there is any interest
Then they watch what happens
They take what they learn and improve it along the way
Iterating to a better finished product
Too often we write a big project plan, find the money and time, build the project, then when we launch it no one uses it (and we’re out of resources to fix it)
(MJ)
How do you iterate
Build successive prototypes
Prototypes help make your ideas tangible
They are easier for people to respond to – so you learn so much more
Monitor user behaviour
Once you launch a prototype or put it in front of someone, watch what they do
The aggregated patterns of user behaviour will tell you whether you’re on the right track or not
(MJ)
Key Concept: Minimum Viable Product
Launching a product with only the features required to make it work
Getting something to market faster
Develop new features only if there is demand
More affordable approach to development – customer-driven
(MJ)
Be prepared…
To get comfortable with imperfection
Prototypes are not pretty or polished
Librarians are closet perfectionists – we need to drop that approach
Where you start is never where you finish – but you have to get your product/service out into the hands of people
Remember: The long view is more important than first impressions– every prototype is a step toward a successful product
(Helen)
(Helen)
4. Monitor key metrics
Startups collect all kinds of data, but they watch a few key metrics
They figure out which metrics demonstrate impact (e.g. adoption, retention, sign-ups, time on the site)
They also look at these very frequently and adjust their product or service appropriately
We need to use real-time data more frequently
Data should be more like a heartbeat – not an annual physical
Continuous improvement – not just cumulative analysis
Every system we have gathers data, but which metrics actually show that we’re doing the right things?
(Helen)
How to monitor key metrics
Select the key metrics
Choose data that show the greatest impact of each product and service
Monitor data regularly
Visit the stats on a daily or hourly basis
Draw connections between the user behaviour and changes that you’ve made to the product/service
(Helen)
Key Concept: Dashboarding
Actively tracking key metrics to monitor the health of the business
These dashboards would be open and transparent
They would communicate clear measures of success
Data is refreshed at least once a quarter, if not more often
(Helen)
Be prepared….
To discuss data
Quantity does not equal quality, but quantity is important to tracking momentum
Conversations around data and what they mean to the organization are essential
Remember: The data provides the evidence for you to pivot or proceed
(MJ)
(MJ)
5. Articulate your value
Startups tend to start with value
They communicate the benefit(s) they generate for users
They talk about why customers should choose their product/service over others in the market
They are precise about what they offer (this focus keeps them on track)
Answer the question in the customer’s mind: “What’s in it for me?”
Value gets at higher order motivations (e.g. save time, money, effort, etc.)
Instead of focusing on details, or features that we think are essential, we need to get to the root of the solution
(MJ)
How do you articulate your value
Align your value to each segment
Recognize that each customer segment wants something different, so adapt to them
Create different value statements for different groups
Internalize your value
Make sure your staff/team can clearly articulate what the product/service stands for
Building consensus among staff is crucial to consistency
(MJ)
Key Concept: Value Proposition
The bundle of services and products that make your offer compelling (and unique)
Value Propositions may vary for different customer segments (e.g. immigrant populations will use a public library for different reasons than children or business professionals)
Knowing the value proposition for every customer segment is the key
(MJ)
Be prepared…
For disagreement
Articulating value in a way that staff and customers understand it is very challenging
The words which resonate with staff will seem foreign to customers (and vice-versa)
Remember: without a clear value proposition, the product/service will feel unfocused
(Helen)
(Helen)
Five suggestions (review)
Focus on understanding the problem (don’t jump to solutions)
Build products for the few (don’t try to satisfy everyone)
Iterate based on what you learn (don’t build it, then forget it)
Monitor key metrics (don’t ignore the data)
Articulate your value (don’t assume your customers understand it)
