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

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. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.lennysnewsletter.com/subscribe