2001 Lean history

Agile vs Lean: The Differences

Approach to speed and iteration

Agile aims to deliver working software as quickly as possible. Frequent software / product delivery (rather than delivering large batches) allows teams to quickly utilize any feedback from customers when making changes to upcoming work.

This is very similar to the Lean principle of Deliver Fast: The idea is that the quicker a team can deliver value to a customer, the sooner they can learn from their feedback. The difference is that in Lean thinking, teams increase speed by managing flow (usually by limiting work-in-process), whereas in Agile, teams emphasize small batch sizes to deliver quickly (often in sprints).

Method for putting customers first

Both Agile and Lean thinking prioritize customer satisfaction as a primary goal. Agile teams accomplish this by focusing on open communication between end-users / customers and developers.

Agile’s iterative approach encourages constant feedback and allows for changing requirements over time, even in the late stages of development.

Lean teams put customers first by focusing on building and improving processes that allow them to do just that; eliminating waste (by the Lean definition) is a key part of that. Basically, if a customer wouldn’t pay for it, it’s waste: Context-switching, too much work in progress, and manual completion of a task (when it can be automated) are all considered waste in Lean thinking. While Lean teams also aim to let the voice of the customer drive decision-making, they put equal emphasis on streamlining their processes as a way of putting their customers first.

Roles of discipline

Although far less regimented than its predecessors, most Agile implementations are still much more structured than Lean practices. They rely on:

Defined roles
Structured meetings
Estimation techniques
Systematic reviews

and other disciplined project management practices to ensure that the system works. Although shared principles are important to Agile implementations, a disciplined process is what allows Agile teams to move and adapt to change quickly.

Lean thinking also relies on discipline, but in a different way. Successful Lean implementations are typically those in which Lean principles and Lean thinking have become a part of an organization’s culture. Therefore, discipline in Lean is less about upholding external expectations and rules, and more about each individual and team buying into and upholding the same Lean principles, which allow the system to operate smoothly and efficiently.

At the end of day, Lean principles are rooted in respect: Respect for the customer, respect for fellow employees, respect for the current and future state of the organization. This is what makes Lean easier to implement in theory but often far more challenging to implement in practice, especially across larger organizations.

2011 - Lean Startup (LS)

What Is “Lean Startup” Methodology?

The lean startup methodology is used to develop products and businesses in a short period of time, which allows the creator of the product or business to quickly determine if their business model is a viable one. When implementing the lean startup methodology, the business that uses this methodology will focus on developing a product while also gaining customer feedback, which usually involves releasing a minimum viable product to the market or a small subset of your customers.

The Goal :

The goal of using this methodology is to get rid of wasteful practices during the initial stages of a company, which provides the company with a higher possibility of long-term success. By using the lean startup methodology, it's possible for early-stage startups to garner success without requiring high amounts of funding, comprehensive business plans, or a product that has no flaws.

For the lean startup process to be successful, the startup that uses it will need to focus on obtaining customer feedback on the initial product. This feedback will help you make changes and iterations on the product that will allow it to be improved over time in accordance with the wishes of the customers. The customer feedback that you receive should also keep you from spending resources on services and features that your customers don't want. The lean startup methodology is aimed at using the lowest amount of resources possible.

This idea was first brought about by entrepreneur Eric Ries in a novel that he put out in 2008. This book centered around using innovation to create successful businesses. He created this methodology in order to minimize the inherent risks that come with creating a startup. As stated in the novel, these risks can be minimized by creating minimum viable products, consistently learning throughout the development process, and experimenting constantly. Eric Ries created this idea from knowledge he gained after two previous business failures as well as the streamlined process of making vehicles that occurred in Japan during the years immediately following WWII. Ries believes that efficiency is the only way for a startup to be successful without wasting necessary resources.

Build, Measure, Learn

The methodology of the lean startup technique centers around build, measure, and learn, which Ries wrote about in his novel.

Build

This methodology begins with the creation of a minimum viable product, which refers to a service or product that has enough features to keep customers satisfied while you test your theory that the product can be successful on the market. Keep in mind that an MVP shouldn't be provided to all of your customers. Instead, you should select a small subset of customers across a range of demographics who can use your product.

This is the build component of the lean startup methodology. Since building is the first aspect of this methodology, it's highly recommended that you begin creating a basic product or service in the early days of your startup.

Measure

When looking at the measure component of this methodology, it's essential that you effectively measure the results of your minimum viable product while you continue to develop the product. The feedback that's provided to you by these customers can be used to fine-tune the product and make it more feature-rich. If you find that the very idea of your MVP isn't gaining traction with the customers that the MVP was provided to, you should be able to get rid of the basic product without having used too much of your resources.

The feedback that you receive can be measured in a variety of ways. If you are creating a business that exists solely online, you would gain feedback by providing customers with surveys and by looking at the analytics for your website to determine what you're doing well and what could be improved.

For an actual product that's being tested before it's placed on the market, the feedback can be easier to obtain by asking testers questions about the product that they're using. Once you've obtained data on your minimum viable product, you can start learning from this data, which is the third component of the lean startup methodology.

Learn

It's not enough to measure the results from the product that you've received and to obtain feedback from the initial customers. If you want to eventually create a product or service that's ready to be placed on the market, it's important that you learn from the data and feedback that you've received, which isn't always an easy thing to do.

For instance, some of the feedback that you receive might not lead to the creation of a successful product. However, this feedback is best used to identify which aspects of the product aren't working and which ones may need to be refined. If you can effectively learn from the results of the product testing, you should be able to develop a product that meets the needs of your target audience.