The more we listened, the more we realised that Lean Startup is a philosophy as much as a process. It’s a discovery process used to adapt your business’ route as you learn more about what your customers want. Lean Startup is about ensuring that what you intend to sell is what people need. It is about finding the most effective way of achieving your overall mission, rather than working towards a pre-defined product. As Salim Virani, co-founder of Leancamp quoted: “find your customer where they are, not where you want them to be”.

The lean approach is great for a new company, but it can seem more difficult to incorporate it within an established business. Here are some tips we picked up from the event.

We started off our day with Rob Fitz’s no jargon introduction to Lean Startups. His main point was that you start by breaking down the big question “will this business work and make money?” into a series of smaller questions that can be tested. Rather than fully investing in and building the final product, is there something smaller, with less risk that you can do to test the business model?

John Mullins, author of “Getting to Plan B”, shared his thoughts on building breakthrough business models, and the importance of being flexible around the final outcome of the venture. Most successful businesses were not the entrepreneur’s initial idea, i.e. their plan A.  But through engaging in ‘learning conversations’ with customers, they identified what really was in market demand, and adopted a plan B.  Part of this process involves finding ‘analogs’ – business models that you would like to emulate (not necessarily from your industry) and ‘anti-logs’ – those that you wouldn’t.  Then take ‘leaps of faith’ to test these hypotheses.

Whilst presenting the Business Model Canvas, Alex Osterwalder co-author of Business Model Generation described how large companies can adopt lean processes, which can be difficult as they don’t often have the structure to deal with experimentation.  Existing business models usually rely on incremental innovation – small improvements executed within the parameters of a plan and budget. At the other end of the continuum, the aim of a new business model is to disrupt the entire business.  The best way to deal with this, says Osterwalder, is to wait until the existing business model is successful, and then experiment with new business models separately.

Which brings us onto the next point of incubating ideas. Although on the surface this sounds a lot like a traditional R&D approach – a single department dedicated to exploring new products and services – it isn’t. With ideas incubation comes the understanding that everyone is responsible for innovation, and that ideas can come from anywhere in the company.  Forward, a media technology company, have developed various techniques for this:

• 10% time (similar to Google’s 20% time initiative) – encouraging all employees to spend a dedicated amount of time on side projects
• Setting up Hack Days – interactive and collaborative events where employees work together over an intense time period (e.g. 1 day) to develop new products and prototypes
• Establishing an Innovation Leave programme – where employees get a dedicated number of days in addition to their annual leave that they can spend exploring and developing ideas

A vital ingredient in establishing a start-up culture at Forward is to form teams of people with different skills from across the organisation – mixtures of entrepreneurs, online specialists and marketing experts.  The multidisciplinary team forms a mini-enterprise, which is separated from the rest of the company, giving them the freedom to experiment, explore new business ideas and importantly, to embrace failure.

In light of this, our final consideration is how companies will prepare individuals for a startup culture. It will be driven by people who have the entrepreneurial skills and mindset to initiate projects, take risks and persevere with new ideas. This will no longer be a capability reserved for a specific role or team within an organisation.  As Eric Ries stated at the Leancamp unconference, “entrepreneurship is about to go from a ‘nice to have’ in society, to an absolutely essential way of getting things done”.

Image credit: anarchosyn on Flickr

With effectuation, entrepreneurs develop their business goals based on their current resources. This is opposed to ‘causation’ (initially thought to be how entrepreneurs work) where business goals are identified, and then resources found and developed to achieve them.  Effectuation, however, is not based on prediction and planning, but instead helps entrepreneurs to remain in control, bearing in mind that the future is unpredictable. The approach is flexible, iterative and enables quicker development as well as opening up potential for more innovation.  As stated by Dr. Sarasvathy :

(Source: Gaebler.com)

There are four main principles:

• Bird in hand principle: Start now with what you have available – your skills, expertise and contacts. Don’t wait for the ‘perfect opportunity’ before you take action

• Affordable loss principle: Identify what you can afford to lose, not what you might gain, and evaluate the opportunities based on this

• Crazy-quilt principle: Build a team of diverse people that will all have a stake in the project and will be committed to making it happen

• Lemonade principle: Remain flexible and be prepared to change your goals if you encounter surprises – these might be the winners.

(Source: Society for Effectual Action)

So how could this relate to the development process in your organisation?

Effectuation could be brought into the development process as a new approach to collaboratively developing products, services and ideas.

Traditionally, you might have the idea for a new product (say, a mobile phone), which is your end goal. Through causal reasoning, you’ll put everything in place to reach this goal, not stopping until you have reached it. However, with effectual reasoning, you don’t know what your end goal will be, but you do know that you have access to certain resources, and the knowledge and expertise of a diverse specialist team.  You will get your team together at the start of the project and develop the whole idea from the ground up based on what you have available. The idea might shift and change, as will your end goal, but you’re being more flexible in your approach, and taking advantage of any opportunities that arise. And your end result may be very different to your usual output.

 How to bring effectuation into your business

Consider how you can work with experts from other disciplines not to build on an idea that you already have, but to build something new together.  Rather than developing something in-house and then handing it over to various specialists to help produce it, package it, market and distribute it, you’ll be bringing together those people at the start, to create something that they all have a passion for.

Many companies could benefit from using effectuation in their product development. But it’s a very different way of working:

• Understand that you won’t be sure of the outcome, but with a good mix of expertise and good facilitation methods, you’re more likely to come out with a product or service that is more innovative, exciting and that could create new opportunities for all involved.
• It moves from ideas-led to relationship-led development. Build your team and resources first, then the idea will come later.
• It requires an open approach to working with other people, exchanging ideas, playing, and cross-disciplinary working.

Are you ready to give it a go?

For a further explanation of effectuation within a corporate environment, see this video produced by the Corsendonk College Center for Effectuation.

Image credit: Milena Mihaylova on Flickr

We’ve pulled together the main points made by the speakers, who are listed at the foot of this post.

Organisations engage in open innovation when they understand that not all of the expertise they need to develop new projects, services and initiatives lies within their staff. By collaborating with outside experts, organisations can access fresh ideas and insight to help develop.  Companies such as Procter & Gamble (P&G), Unilever and Orange are already engaging in open innovation and reaping benefits.

Understandably, it can seem risky to bring people into the depths of your R&D department. Trust needs to be established, as does a business model, considering the potential return on investment and discussing intellectual property.

Mike Addison, P&G, referred to the WANT, FIND, GET, MANAGE model, a framework developed for open innovation.

WANT: clarifying what is needed internally and what is required to make it actionable

Organisations need to start the process with an interesting question, and need to be capable of delivering open innovation.  It’s important to be clear on why you are not doing this internally, and to clarify what type of innovation you are looking for – radical (breakthrough or game-changing) or incremental (developed on from existing offerings).

Many organisations find that the barriers to open innovation are found within their own staff – individuals that may shut down new ideas before there has been a real opportunity to develop them. Creating a culture for open innovation requires good leadership, finding ways to include adversaries in the process, and involving people that are good at spanning across the boundaries and translating between them.

FIND: locating appropriate opportunities and progressing their timely assessment

How will you identify and make connections with the externals that you will be working with? How do you establish trust with your collaborators?

The conference suggested that there might be a need for online platforms where partnerships can be developed, and will help each party gain a clear understanding of the other. Opportunities such as the Design Council’s challenges provide a platform to bring organisations and SMEs together.  Also, who within the organisation is the right person to take open innovation forward? Those at operational level are often not the right people to do this.

GET: valuing the opportunity and getting to win:win

How do you manage risk between the partners and ensure the project has a return on investment?

Organisations need to understand the value that that their external collaborators bring, at the same time as exercising due diligence. The process of creating value can be difficult, particularly around ideas and concepts, and bearing in mind that creative SMEs often want to licence their ideas rather than creating a new company.  But nevertheless, a business model needs to be developed, looking at how the project could be commercialised.  This should naturally lead into a discussion about intellectual property (where resources at the British Library Business & IP Centre can be used) ensuring an agreeable outcome for all partners.

MANAGE: creating the conditions for long-term successes

Donal O’Connell, specialist author on open innovation discussed the need to identify metrics and KPIs, not forgetting remembering basic project management and communication.  His tips for how to do open innovation successfully were:

• Have an open innovation strategy
• Show leadership
• Scan and scout
• Have an internal champion
• Step into shoes of externals
• Train, coach and mentor externals
• Update your key business processes
• Involve legal and IP
• Don’t forget the basics of people and project management

The conference was organised by the EU-funded Open Innovation project.  Speakers:

• David Simoes-Brown, 100% Open
• Mike Addison, Procter & Gamble
• Harry Barraza, Unilever
• Jogesh Limbani, Orange
• Danny Burke, Quantum Innovation Centre
• Maxine Horn, Creative Barcode
• Donal O’Connell, Open Innovation Specialist Author
• Paul Mellor, Mellor & Scott

PCG is the association that represents, supports and promotes freelancers, contractors and consultants in the UK and we recently spoke to them about how collaboration between freelancers can be a benefit for both the individuals working together and businesses hiring them.  The article focuses on our launch project BracketLab, which brought 6 freelancers to collaborate over 2 days to produce a website, promotional images and copy, illustrations, an animation and a documentary film.  Tim Oldham, Editor at Freelancing Matters explains:

“Alison Coward saw the potential for collaborative working while studying for an MA in 2005. A few years on, with wider spread connectivity using social media platforms, and the development of new online project management tools such as Huddle, she recognised that the pieces were in place to launch an agency that uses collaboration to meet client needs.”

The article then describes the process that we used in BracketLab to make the most of everyone’s skills and expertise.

Read the full article here (pdf).

But it can be difficult to keep on top of this information, and although it’s vital to keep our eyes and ears open to what’s happening in our industry, and indeed across sectors, there are some experts that are immersed in it every day – whose job it is to seek out innovative ideas and new trends.

Here are some sources that Bracket uses to keep up-to-date on what’s happening at the forefront:

PSFK is ‘the go-to source for new ideas’.  An NYC-based research and innovation company, they work hard to find and communicate products and services that are breaking boundaries.  It’s a great source of inspiration and they condense their top stories into a handy daily newsletter for convenience.

Springwise has been a personal favourite of Bracket for a while.  With a more entrepreneurial take on current trends, Springwise reports on new business ideas and ventures from around the globe.  It covers 20 different industries, ranging from automotive, through to financial services, lifestyle & leisure and transportation.  A great way to stay up-to-date with Springwise is to follow them on Twitter.

Trendwatching, the older sibling of Springwise, publishes regular reports on consumer and brand behaviour.   Bringing together their insights to focus on a particular trend they have observed, they use names like “Nowism” and “Sellsumer” to analyse and describe them broadly.  The free briefings are then packed full to the brim of examples where these developments actually exist.  Trendwatching have also just published their Top 15 tips on how best to track and analyse trends.

These sources are all great ways of gaining inspiration about ways to inject new energy into our businesses, stay competitive and in tune with our customers.

[Bracket works with a wide range of creative freelancers and consultants, all at the forefront of what’s happening in their sectors.  We bring diverse talent together to apply their creative thinking to problems facing businesses, using their latest knowledge of their industries to collaboratively develop innovative solutions for moving forward]

The London Design Festival is a great way to introduce yourself to current design talent and creativity, be inspired and refresh your thinking.   There’s a lot to choose from, but here are a few of our top picks to get you started:

Designersblock, 23-26 September
Where: Bargehouse, Oxo Tower Wharf, Bargehouse Street, London SE1 9PH
Entry: Free if registered online before 23 September, or £5 entry

Designersblock exhibits furniture, lighting, product, architecture and textiles from 60 UK and international designers.  There is always a great energy, excitement and rawness to this show which presents forward-thinking showcases, products and ideas.  More info.

Tent Digital, 23-26 September
Where: Tent London, Old Truman Brewery, Brick Lane, London E1 6QL
Entry: £10/£8 (also gives access to the rest of Tent London)

Tent Digital is the only annual showcase for digital creatives and digitally-enabled design during the London Design Festival.  The exhibition looks to tap into the trend of increasing integration of technology in our lives.  The 10 environments that are created for Tent Digital consist of interaction design and augmented reality, enabling the audience to participate and creating an element of surprise.  More info.

The Tramshed Live events, 22-26 September
Where: 32 Rivington Street, London EC2A 3WQ
Entry: free

The Tramshed is a new event showcasing high-end design in a post-industrial venue.  Alongside the exhibition is a range of talks around the topic ‘New Directions in Design’.  A couple that caught our fancy:

• Augmented Reality and the Future of Online Retail, Thursday 23, 1.30pm – a look at the possibilities that digital technology can offer to make online retail as real as it can be
• Redesigning design, remaking making, Friday 24, 1.30pm – covering new manufacturing techniques and consumer engagement in the process.

More info.

Global Industry at The Dock, 20-26 September
Portobello Dock, 344 Ladbroke Grove, London W10 5BU
Entry: free

The Dock is a creative hub for design, where on-the-spot manufacturing, international entrepreneurialism and commerce meet.  This canalside venue offers an original shopping experience, indoor and outdoor installations from a diverse range of selected exhibitors.  More info.

Please check the event websites for opening hours and latest updates.  For more information on other events during the London Design Festival, visit www.londondesignfestival.com.

Founder, Alison Coward commented “I spent years watching businesses struggle to effectively access the talents of freelancers.  Bracket pulls together bespoke creative teams and offers one point of contact throughout the project.  Companies that work with us can benefit from the experience and knowledge of consultants working collaboratively to provide innovative solutions to their business problems. We take the chaos out of the creative process.”

Bracket is launching with its 2 day service, BracketLab, where a group of freelancers are brought together to quickly generate and deliver creative solutions in 48 hours.

A recent BracketLab project produced:

-          A newly developed and designed website

-          Copy for the website and promotional material

-          Promotional photos and illustrations

-          Short documentary film

-          Viral animation

Laura North, copywriter, who was involved in a project to produce an online presence and promotional material says: “The process was extremely productive and effective.  It is incredible what you can achieve with all the right people working together intensively. We came up with the creative concept and then produced the whole thing, including a website, animation, documentary and publicity campaign, from start to finish in two days.”

Bracket offers a support network and live commercial opportunities for independent creative consultants.  Bringing them together to work collaboratively, Bracket enables creatives to spark off each other and develop new and interesting ideas for clients who have business problems that need creative solutions.

For more information, visit www.bracketcreative.co.uk or call 07903 654149

-ENDS –

Notes to editors

About Bracket: Bracket is an agency that runs a network of talented creative people, with all the skills needed to create a project from start to finish.  When a client commissions Bracket – whether it’s a marketing campaign, a new product or service, or just help working out a problem creatively – we source a team from our network to meet the exact needs of the project. www.bracketcreative.co.uk

About Alison Coward: Alison Coward has a background as a project manager and business advisor within the creative sector, having worked in management positions for organisations such as Hidden Art and the Enterprise Centre for the Creative Arts (ECCA) at University of the Arts London.  She became interested in virtual networks and collaborative working whilst studying for an MA Enterprise and Management for the Creative Arts in 2005, and has since developed a range of techniques and processes which facilitate effective collaboration.  Alison also offers training and advice through her consultancy, Bracket Projects (www.bracketprojects.co.uk), which specialises in helping freelancers, businesses and organisations develop and deliver collaborative projects supported by online tools and is a member of the Courvoisier The Future 500 (www.cvtf500.com).

Contact:

Alison Coward

info@bracketcreative.co.uk

07903 654149

Bracket launch party details:

Date: September 9, 2010

Time: 7pm

E-mail: info@bracketcreative.co.uk for details of venue

Photography available at www.bracketcreative.co.uk

If you’d like to come along to find out more about getting involved with Bracket, meet some creative people, and have some fun, contact Alison at info@bracketcreative.co.uk to RSVP and for details of the venue.