Steve Blank Podcast

The Lean Startup is a process for turning ideas into commercial ventures. Its premise is that startups begin with a series of untested hypotheses. They succeed by getting out of the building, testing those hypotheses and learning by iterating and refining minimal viable products in front of potential customers.

“By knowing things that exist, you can know that which does not exist.” - Book of Five Rings...A startup is not just about the idea, it’s about testing and then implementing the idea.A founding team without these skills is likely dead on arrival.

I met Kathryn Gould longer ago than either of us want to admit. Kathryn has been the founding VP of Marketing of Oracle, a successful recruiter, a world class Venture Capitalist, a co-founder of a Venture Capital firm, a great board member, one of my mentors and most importantly a wonderful friend. During her career she made a big point of not telling you: she was one of the first women Venture Capitalist’s in Silicon Valley (along with M.J. Elmore and Ann Winblad) – “I’m just a VC.”

Startups are not smaller versions of large companies, but interestingly we see that companies are not larger versions of startups.

This week the National Science Foundation goes Lean on education by providing $1.2 million to educators who want to bring their classroom innovations to a wider audience.

I got a call that reminded me that most people live their life as if it’s predestined – but some live theirs fighting to change it.

Investors sitting through Incubator or Accelerator demo days have three metrics to judge fledgling startups – 1) great looking product demos, 2) compelling PowerPoint slides, and 3) a world-class team. Other than “I’ll know it when I see it”, there’s no formal way for an investor to assess project maturity or quantify risks. Other than measuring engineering progress, there’s no standard language to communicate progress.

We’ve pivoted our Lean LaunchPad / I-Corps curriculum. We’re changing the order in which we teach the business model canvas and customer development to better-fit therapeutics, diagnostics and medical devices.

Today the National Institutes of Health announced they are offering my Lean LaunchPad class (I-Corps @ NIH ) to commercialize Life Science. There may come a day that one of these teams makes a drug, diagnostic or medical device that saves your life.

For six and a half years I served as a public official on the California Coastal Commission.Commissoner Badge Since it’s been a year since I resigned, it’s time to tell a few stories about what I learned as a Coastal Commissioner. Each and every month I learned something new about human nature, deception and greed.

Last week I got an email last week from a New York VC asking for advice about building a house in the California Coastal Zone. For six and a half years I served as a public official on the California Coastal Commission. The call reminded me that it’s been a year since I resigned, and it’s time to tell a few stories of what I learned as a Coastal Commissioner. Each and every month I learned that not everything was how it seemed.

In the last five years I’ve been at Commencement Day at universities around the world – a few times to receive awards and three times as the commencement speaker. But attending both my daughters’ college graduations this year helped me to see how things look from the other side of the podium.

D.R. Widder is the Vice President of Innovation and holds the Steve Blank Innovation Chair at Philadelphia University. He’s helping city government in Philadelphia become more innovative by applying Lean startup methods and Philadelphia University’s innovation curriculum. I asked him to share an update on his work on teaching lean techniques to local governments. Subscribe at http://j.mp/1iyL7tW.

Our Stanford and Berkeley Lean LaunchPad classes are over for this year, and as usual we learned as much from teaching the teams as the teams did from us. Here are a few of the Lessons Learned from these two classes.

For decades large companies have gone shopping in Silicon Valley for startups. Lately the pressure of continuous disruption has forced them to step up the pace. More often than not the results of these acquisitions are disappointing. What can companies learn from others’ failed efforts to integrate startups into large companies? The answer - there are two types of integration strategies, and they depend on where the startup is in its lifecycle.

About a month ago I had one of the strangest phones call of my life. “Steve my name is Donald xx, and I’m the head of external affairs of the CIA’s venture capital firm and we’d like you to keynote our conference.” CIA?

With insight into our customers, the first part of our strategy was to understand what kind of positioning problem we had. Was SuperMac attempting to introduce radically new products and create a new market? No, not really.

After my first month we knew a lot, we knew more about our customers than anyone in the company. In this one month we had learned more about desktop publishing on the Mac than any one of our competitors. Now the question was what to do with it. First I need to make sure what we really learned was information we could base a company strategy on.

A week before I started I got inkling of really how deep I was in. While I was waiting in the lobby to pick up my offer letter, the head of marketing communications (who was to be one of my direct reports) came up to me as I held my just signed employment agreement. She said, “Oh I’m glad you’re coming, and I wanted to grab you before you started because we need to resolve the company’s biggest marketing problem.” I was impressed; this was something so important that she couldn’t wait for my first day. Was she going to propose a coherent communications strategy? An in-depth reseller survey? Or offer some real insights into our customers? No. “We need to decide immediately between which version of the new logo to use.” Ignoring my dropping jaw, she pointed out the key differences in the Pantone colors between what appeared to me o be the two indistinguishable alternatives.

Henry Chesbrough is known as the father of Open Innovation and wrote the book that defined the practice. Henry is the Faculty Director of the Garwood Center for Corporate Innovation, at U.C. Berkeley in the Haas Business School. Henry and I teach a corporate innovation class together.