Lenny's Podcast: Product | Growth | Career

Reflections on a movement | Eric Ries (creator of the Lean Startup methodology)

Oct 29, 2023

02:14:13

Snipd AI

Eric Ries, creator of Lean Startup methodology, discusses the current state of Lean Startup, common misconceptions, thinking about MVPs, when to pivot, AI and uncertainty, structuring a company around core values, the Long-Term Stock Exchange, and more.

AI Summary

Highlights

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Building an MVP is about understanding the minimum features necessary for testing assumptions and validating hypotheses.

Common misconceptions about MVPs include sacrificing quality and building limited feature products.

The lean startup methodology emphasizes learning, experimentation, and iteration based on customer feedback.

Entrepreneurs should embrace MVPs as a tool for validation and learning, not fear failure.

AI technology requires responsibility, trustworthiness, and ethical action from companies.

Companies must embed core values of human flourishing to create competitive advantage and positive outcomes in employees and customers.

Deep dives

The Importance of Building a Minimum Viable Product

Building a minimum viable product (MVP) is a crucial step in the startup journey. The concept of an MVP is not about building something cheap or low quality, but rather about understanding the minimum features and functionality necessary to test your assumptions and validate your hypothesis. It's about finding the most efficient way to get the validation you need about whether your idea will resonate with customers or not. The key is to start small and focus on the core elements that will help you gather meaningful feedback. By being open to feedback and learning from your customers, you can iterate and improve your product over time.

Empowering Founders through the Chief Engineer Role

01:33

Challenges of Startups and Building MVPs

01:12

The Importance of Thinking for Yourself

01:27

Navigating Truth and Change in Storytelling

00:31

Introduction

4min

Reflections on Eric Reese's Current Pursuits

3min

The Impact of Lean Startup Methodology and Reflections on its Evolution

21min

Exploring the Concept of MVPs and Customer Feedback

26min

Building a Company That Aligns with Your Values

13min

Storytelling, LinkedIn Ads, and Pivoting in B2B Companies

2min

Pivoting in Startups: Self-Discovery and Learning from Failure

22min

Building Companies for Human Flourishing

27min

Favorite Books and Recommendations

4min

10.

The Importance of Singular Control in Product Management

11min

Eric Ries is the creator of the Lean Startup methodology, author of the New York Times bestseller The Lean Startup, and founder of the Long-Term Stock Exchange (LTSE). He’s also a multi-time founder and currently advises startups, VC firms, and larger companies on business and product strategy. In today’s episode, we discuss:

• The current state of the Lean Startup methodology

• Common misconceptions about the Lean Startup methodology

• Understanding how to actually think about MVPs (minimum viable products)

• When to pivot and when to stay the course

• Thoughts on AI and how to deal with uncertainty

• How to structure your company around core values and create products that benefit humanity

• The philosophy behind Eric’s current big idea: the Long-Term Stock Exchange

• Much more

—

Brought to you by Sanity—The most customizable content layer to power your growth engine | Jira Product Discovery—Atlassian’s new prioritization and roadmapping tool built for product teams | LinkedIn Ads—Reach professionals and drive results for your business

—

Find the full transcript at: https://www.lennyspodcast.com/reflections-on-a-movement-eric-ries-creator-of-the-lean-startup-methodology/#transcript

—

Where to find Eric Ries:

• LinkedIn: https://www.linkedin.com/in/eries/

• X: https://twitter.com/ericries

• Website: https://theleanstartup.com/

—

Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• X: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

—

In this episode, we cover:

(00:00) Eric’s background

(04:46) Eric’s recent activities and projects

(06:23) Eric’s start in advising and first-principles thinking

(10:56) Lessons from designing the Lean Startup process

(14:04) The current state of lean startup methodology

(22:33) Common misconceptions about the methodology

(24:28) Changes Eric would make in an updated version of Lean Startup

(27:52) An explanation of minimum viable product (MVP) and why Eric still stands by the process

(37:36) An example of “Less is more”

(41:24) More on MVPs and the importance of testing your hypotheses

(41:24) How LTSE had to pivot after a partnership fell apart

(48:37) Eric’s take on the concept of craft

(53:36) Why getting fired for standing by your conviction can be a career accelerator

(55:17) Tech’s mental health crisis

(56:28) Advice for founders stuck in a “zombie company”

(1:00:16) How continuous pivots shape a company’s vision, with a real-life story

(1:08:20) Challenges in assessing companies from an external perspective

(1:13:17) Practical advice for businesses considering a pivot

(1:18:42) The impact of artificial intelligence

(1:26:59) The current capabilities of ChatGPT and its potential use as an equalizer in the marketplace

(1:31:26) Eric’s current work with founders on human flourishing

(1:42:40) Advice for founders who want to build ethical companies

(1:49:37) Examples of first-principles thinking

(1:53:42) Why shareholder primacy theory is wrong

(1:55:19) The “spiritual holding company”

(1:58:12) Lightning round

—

Referenced:

• The Long-Term Stock Exchange: https://ltse.com/

• The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses: https://www.amazon.com/Lean-Startup-Entrepreneurs-Continuous-Innovation/dp/0307887898

• Lean manufacturing: https://www.techtarget.com/searcherp/definition/lean-production

• Six Sigma: https://www.6sigma.us/six-sigma.php

• Clay Christensen: https://claytonchristensen.com/

• Eric Ries on 4 Common Misconceptions About Lean Startup: https://www.entrepreneur.com/starting-a-business/eric-ries-on-4-common-misconceptions-about-lean-startup/286701

• Anakin Skywalker meme: https://knowyourmeme.com/memes/for-the-better-right

• Linear: Building with taste, craft, and focus | Karri Saarinen (co-founder, designer, CEO): https://www.lennyspodcast.com/inside-linear-building-with-taste-craft-and-focus-karri-saarinen-co-founder-designer-ceo/

• Snow Crash: https://www.amazon.com/Snow-Crash-Neal-Stephenson/dp/0553380958

• IMVU: https://about.imvu.com/

• Ben Silbermann on LinkedIn: https://www.linkedin.com/in/silbermann/

• Wonder Boy: Tony Hsieh, Zappos, and the Myth of Happiness in Silicon Valley: amazon.com/Wonder-Boy-Zappos-Happiness-Silicon/dp/1250829097

• Understanding Steve Jobs’s Reality Distortion Field: https://www.emexmag.com/understanding-steve-jobs-reality-distortion-field

• Paul Graham’s website:http://www.paulgraham.com/raham

• Segment: https://segment.com/

• Loom: https://www.loom.com/

• The Slack story: https://www.paperflite.com/blogs/slack-story

• The Social Network on Netflix: https://www.netflix.com/ca/title/70132721

• Thomas Kuhn: Paradigm Shift: https://www.simplypsychology.org/kuhn-paradigm.html

• Conway’s Law: the little-known principle that influences your work more than you think: https://www.atlassian.com/blog/teamwork/what-is-conways-law-acmi

• Monty Python and the Holy Grail Guards Scene on YouTube: https://www.youtube.com/watch?v=eVWH01E2weA

• Toyota Production System: https://global.toyota/en/company/vision-and-philosophy/production-system/

• Warren Buffett’s Forbes bio: https://www.forbes.com/profile/warren-buffett

• The Enlightened Capitalists: Cautionary Tales of Business Pioneers Who Tried to Do Well by Doing Good: amazon.com/Enlightened-Capitalists-Cautionary-Business-Pioneers/dp/0062880241

• The Grace of Kings (The Dandelion Dynasty): https://www.amazon.com/Grace-Kings-Dandelion-Dynasty/dp/148142428

• All Systems Red: The Murderbot Diaries: https://www.amazon.com/All-Systems-Red-Murderbot-Diaries/dp/0765397536

• Star Wars: Andor on Disney+: https://www.disneyplus.com/series/star-wars-andor/3xsQKWG00GL5

• Tesla Powerwall: https://www.tesla.com/powerwall

• Levoit Classic 300S ultrasonic smart humidifier: https://www.amazon.com/LEVOIT-Humidifiers-Ultrasonic-Essential-Customized/dp/B09C24TYGQ

• The Law of Sustainable Growth: https://www.linkedin.com/pulse/20121015181612-2157554-the-law-of-sustainable-growth/

—

Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com.

—

Lenny may be an investor in the companies discussed.

Get full access to Lenny's Newsletter at www.lennysnewsletter.com/subscribe

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Lenny's Podcast: Product | Growth | Career

Reflections on a movement | Eric Ries (creator of the Lean Startup methodology)

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The Importance of Building a Minimum Viable Product

Addressing the Misconceptions about MVPs

The Role of Lean Startup Principles in MVP Development

Overcoming the Fear of Failure and Embracing MVPs

The importance of trust and ethical action in AI

AI as a management technology

Uncertainty and ethical action

Using AI tools for sales and communication

The importance of embedding values in company governance

The need for a new movement in company building

Challenges in implementing new company structures

Empowering Founders through the Chief Engineer Role

Challenges of Startups and Building MVPs

The Importance of Thinking for Yourself

Navigating Truth and Change in Storytelling

Get the Snipd
podcast app

AI-powered
podcast player

Discover
highlights

Save any
moment

Share
& Export

AI-powered
podcast player

Discover
highlights

Lenny's Podcast: Product | Growth | Career

Reflections on a movement | Eric Ries (creator of the Lean Startup methodology)

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The Importance of Building a Minimum Viable Product

Addressing the Misconceptions about MVPs

The Role of Lean Startup Principles in MVP Development

Overcoming the Fear of Failure and Embracing MVPs

The importance of trust and ethical action in AI

AI as a management technology

Uncertainty and ethical action

Using AI tools for sales and communication

The importance of embedding values in company governance

The need for a new movement in company building

Challenges in implementing new company structures

Empowering Founders through the Chief Engineer Role

Challenges of Startups and Building MVPs

The Importance of Thinking for Yourself

Navigating Truth and Change in Storytelling

Get the Snipdpodcast app

AI-poweredpodcast player

Discoverhighlights

Save anymoment

Share& Export

AI-poweredpodcast player

Discoverhighlights

Get the Snipd
podcast app

AI-powered
podcast player

Discover
highlights

Save any
moment

Share
& Export

AI-powered
podcast player

Discover
highlights