Lean (Entrepreneurship) Reading

Photograph by Victoria J Baxter/Getty Images

Photograph by Victoria J Baxter/Getty Images

Vacation time is upon us. And if you are like me, you will have an impossible list of books you would like to read.

But rather than telling you all the books I still want to read, let me share with you my list of books I have already read and can recommend for one reason or another. They all share a common thread – they are all exploring ‘Entrepreneurship”. Both inside of established companies or in startups.

The term Lean Startup was first publicized by Eric Ries in his Book with the same name. (Cashing in on the popularity he subsequently trademarked the term). In his book he is describing his experiences of implement the ‘Customer Development’ process from Steve Blank. Steve Blank was a member of the board of his startup at that time.

Which brings us to Steve Blank. He is teaching Entrepreneurship at the Stanford University and has formalized his experience as entrepreneur and mentor in a process called ‘Customer Development’. He published the process the first time in his book ‘The four steps to epiphany’. It is still a worthwhile read. Steve Blank subsequently incorporated the works from Eric Ries and Alexander Osterwalder into his own thinking and published ‘The Startup Owner Manual‘ last year.

Alexander Osterwalder is best known for his ‘Business Model Canvas‘ which he subsequently publicized in his book ‘Business Model Generation‘.

Based on the Business Model Canvas Ash Maurya developed his ‘Lean Canvas‘ and published ‘Running Lean‘.

Unfortunately (or fortunately depending on your viewpoint) the above approaches are heavily influenced by the Silicon Valley startup culture and have only limited value within established companies.

In those kind of circumstances I found the work from Clayton Christensen on his ‘theory of disruptive innovation‘ highly relevant. His classic ‘The innovators dilemma‘ is still a fascinating read. But beyond just analyzing the root causes of why well managed companies fail, he proposes an alternative framework for dealing with disruptive innovation in ‘The innovators Solution‘. If you are an intrapreneur or managing an inhouse-incubator, this is the one book you ought to read.

Interestingly only Clayton Christensen is referencing one of the foundational works on which Lean Startup/Customer Development appears to be based upon – the so called ‘Emergent Business Strategy‘. It is building upon research by Rita McGrath (and others) at the Harvard Business School. Rita McGrath and Ian McMillan published a first paper on ‘Discovery-Driven Planning‘ in summer of 1995. They further refined their work in the book ‘Discovery-Driven Growth‘.

Since there is now an almost inflationary ‘Lean’ hype, it often pays to go back to where ‘Lean’ started – to ‘Toyota’. While ‘Lean’ is mostly associated with the production processes, I personally find the book ‘The Toyota Product Development System‘ more relevant. It is an inspiring read, even though most of its concrete practices are rooted within the Toyota culture and can not be applied literally in other settings.

To step outside of the ‘Lean’ hype, there are books which describe very similar approaches without using the word ‘Lean’ at all. The book ‘If you build it will they come‘ by Rob Adams describes a process very similar to Customer Development, but from a marketing perspective.

And while the hype is all about startups and venture funding I have a special fondness for the little guy, the SMB market. I think Tim Berner ought to be included in any kind of review of books and tools for entrepreneurs. What is makes the SMB market special is that it is not funded by  VC money, but instead relies on bank credits. And no bank is willing to give you a credit for a ‘Business Model Canvas’, but instead requires an old fashioned business plan. Tim Berner has been pushing on combining the traditional business plan with the kind of agile, discovery-driven planning processes mostly characterized as ‘Lean Startup’. I found his book ‘The plan-as-you-go Business Plan‘ a refreshing reminder of the other 95% of businesses which do not have the luxury to burn through VC money but have to make ends meet the old-fashioned way.

if I can convince you to read at least one of the books from my favorite Lean (Summer) Reading list, then this blog will have been worth it. I would love to hear from your what other books you have found and why you would recommend them.

we are live (launchd.io that is)

I think every entrepreneur can immediately understand what it means to say ‘we are live’. It means a bottle of Champagne sometime around 1 am (always way later than you had planned) and lots of more coffee the next morning. Our moment of glory was sometime during the night from July 11th to the 12th. Almost two years after conceiving the idea of a Business Plan as-a-Service platform at the Old Town Coffeehouse in Louisville, Kentucky and more or less 9 months after we started finally putting code towards making it a reality, we are finally ready to learn if our idea can fly.

We had quite a few up and downs along the way. We were shopping it around for close to a year without finding anyone willing to do it for us (lesson to be learnt – if you won’t do it, no one else will).

But we had this itch which kept us going. We had this sometimes overwhelming clear vision of how we would use http://launchd.eu to develop all those other cool business ideas we had. It was us who wanted to have this platform. It was never just about launchd, but about what it would enable us to do.

Maybe now is the time to say what we envision launchd to be:  a platform for entrepreneurs and companies to develop business plans.  CRM meets Project Management meets Business Model canvas meets Market Validation. Got it?

Let me try that again: When we first started to look into developing business ideas, we quickly found ourselves using Teambox (very cool), Excel spreadsheets (heck, there is nothing you can not do in Excel), Dropbox, Wiki, Word documents, Google docs, Survey Monkey and so on. At some point it just became too much – and we thought that there must be a better way to bring all those disjunct pieces of information together. Around this time we stumbled upon Customer Development and Lean Startup.  And suddenly everything fell into place – at least in our minds – and we knew exactly how our dream ‘business development’ platform should look like.

So this it .. we did it. And I think it is only appropriate in this first blog to give thanks to my wife Gabby for enduring my sleep deprived crankiness and to Nele, the wife of my co-founder Jonas for doing very much the same.