The Lean startup movement is underway in many of the world's best organizations. As one of the five core competencies of a Lean Enterprise, Lean Portfolio Management (LPM) can enable your enterprise to apply lean and systems thinking and most effectively align your portfolio with your business objectives.
The basics of the lean startup movement are simple and focus on the following six principles:
1 ENTREPRENEURS ARE EVERYWHERE
You don't have to work in a garage to be in a startup.
2 ENTREPRENEURSHIP IS MANAGEMENT
A startup is an institution, not just a product, so it requires management, a new kind of management specifically geared to its context.
3 VALIDATED LEARNING
Startups exist not to make stuff, make money, or serve customers. They exist to learn how to build a sustainable business. This learning can be validated scientifically, by running experiments that allow us to test each element of our vision.
4 INNOVATION ACCOUNTING
To improve entrepreneurial outcomes, and to hold entrepreneurs accountable, we need to focus on the boring stuff: how to measure progress, how to setup milestones, how to prioritize work. This requires a new kind of accounting, specific to startups.
5 BUILD. MEASURE. LEARN.
The fundamental activity of a startup is to turn ideas into products, measure how customers respond, and then learn whether to pivot or persevere. All successful startup processes should be geared to accelerate that feedback loop.
These principles are directly from Eric Ries's book The Lean Startup
. You can learn more about these principals here
AgileCraft was built around the principles of Lean startup, Lean enterprise and Lean portfolio to enable rapid ideation and innovation with continuous short feedback loops. The following books are a great start for folks in interested in driving a Lean enterprise: