I-Corps @ NIH – Pivoting the Curriculum

We’ve pivoted our Lean LaunchPad / I-Corps curriculum. We’re changing the order in which we teach the business model canvas and customer development to better-fit therapeutics, diagnostics and medical devices.Udacity canvas and value prop

Over the last three years the Lean LaunchPad class has started to replace the last century’s “how to write a business plan” classes as the foundation for entrepreneurial education. The Lean LaunchPad class uses the three “Lean Startup” principles:

  • Alexander Osterwalders “business model canvas” to frame hypotheses
  • “Customer Development” to test the hypotheses outside the building and
  • “Agile Engineering” to have teams prototype, test, and iterate their idea while discovering if they have a profitable business model.

Teams talk to 10-15 customers a week and make a minimum of 100 customer visits. The Lean LaunchPad is now being taught in over 100 universities. Three years ago the class was adopted by the National Science Foundation and has become their standard for commercializing science. Today the National Institutes of Health announced their I-Corps @ NIH program.

The one constant in all versions of the Lean LaunchPad / I-Corps class has been the order in which we teach the business model canvas.

Value Propositions and Customer Segments are covered in weeks 1 and 2, emphasizing the search for problem/solution and then product/market fit. Next we teach Distribution Channels (how are you going to sell the product) and Customer Relationships (how do you Get/Keep/Grow customers) and Revenue Streams (what’s the Revenue Model strategy and pricing tactics.) Finally we move to the left side of the canvas to teach the supporting elements of Resources, Partners, Activities and Costs.

current teaching order

Teaching the class lectures in this order worked great, it helped the teams understand that the right-side of the canvas was where the action was. The left- hand side had the supporting elements of the business that you needed to test and validate, but only after you made sure the hypotheses on the right were correct.

This lecture order was embedded in the Udacity Lectures, the syllabi and educators guide I open-sourced. Hundreds of teams in the NSF, and my Stanford, Berkeley, Columbia, and UCSF classes learned to search for a repeatable and scalable business model in this way.

It’s consistency was the reason that the NSF was able to scale the I-Corps from 15 to 30 University sites.

So why change something that worked so well?

Rationale
Last fall at UCSF we taught 125 researchers and clinicians in therapeutics, diagnostics, medical devices and digital health in a Lean LaunchPad for Life Sciences class. While the teaching team made heroic efforts to adapt their lectures to our “standard” canvas teaching order, it was clear that for therapeutics, diagnostics and medical devices the order was wrong. Hypotheses about Intellectual Property, Reimbursement, Regulation and Clinical Trials found on the left side of canvas are as, or more important than those on the right side of the canvas.

I realized we were trying to conform to a lecture order optimized for web, mobile, hardware. We needed to cover Intellectual Property, Reimbursement, Regulation and Clinical Trials a month earlier in the class than in the current format.

The National Institutes of Health has adopted our class for its I-Corps @ NIH program starting this October. Most teams will be in therapeutics, diagnostics and medical devices. Therefore we’re going to teach the class in the following order:

1) value proposition, 2) customer segments, 3) activities, 4) resources, 5) partners, 6) channel, 7) customer relationships, 8) revenue/costs

LS Suggested Order simple

I-Corps @ NIH Lecture Order Details
Customer Segments change over time.  CROs or Payers may ultimately be a resource, a partner or a revenue source, but until you get them signed up they’re first a customer. Your potential exit partners are also a customer. And most importantly, who reimburses you is a customer. (You get an introduction to reimbursement early here, while the details are described later in the “Revenue” lecture.)

Activities are the key things you need to do to make the rest of the business model (value proposition, distribution channel, revenue) work. Activities cover clinical trials, FDA approvals, Freedom to Operate (IP, Licenses) software development, drug or device design, etc.

Activities are not the product/service described in the value prop, they are the unique expertise that the company needs to deliver the value proposition.  In this week we generally describe the business rationale of why you need these. The specifics of who they are and how to work with them are covered in the “Resource” and “Partners” lectures.

Resources - Once you establish what activities you need to do, the next question is, “how do these activities get accomplished?” I.e. what resources do I need to make the activities happen. The answer is what goes in the Resources box (and if necessary, the Partners box.) Resources may be CRO’s, CPT consultants, IP, Financial or Human resources (regardless of whether they’re consultants or employees.)

Partners are external resources necessary to execute the Activities. You’ve identified the “class of partner” in the Resources box. This lecture talks about specifics – who are they, what deals work with them, how to get them, how to work with them.

Customer Relationships is what we think of as traditional sales and marketing; assembling a SAB, getting the KOL’s, conferences, articles, etc.  Customer Relationships answers the question, “How will we create demand and drive it to our channel?”

Suggested Order

We think we now have a syllabus that will better fit a Life Science audience. Once the syllabus stops moving around we’ll open source it along with the educators guide this fall.

Lessons Learned

  • The Lean LaunchPad class has started to replace the last century’s “how to write a business plan” classes
  • The lecture order emphasizes testing the right-side of the canvas first
  • That works for almost all markets
  • However, for life sciences hypotheses about Intellectual Property, Reimbursement, Regulation and Clinical Trials are critical to test early
  • Therefore we created a more effective lecture order for Life Sciences

Keep Calm and Test the Hypothesis. 2 Minutes to See Why

 
NIH I Corps logo

Pivot – Firing the Plan Not the People. 2 Minutes to See Why.

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At times more is less and less is more. 2 minutes to see why


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Innovating Municipal Government Culture

D.R. Widder is the Vice President of Innovation and holds the Steve Blank Innovation Chair at Philadelphia University. He’s helping city government in Philadelphia become more innovative by applying Lean startup methods and Philadelphia University’s innovation curriculum. I asked him to share an update on his work on teaching lean techniques to local governments.

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This February Philadelphia University and the City of Philadelphia founded the Academy for Municipal Innovation (AMI). Our goal is to foster innovation principles and practice in local government by changing the way government employees think about innovation and act on their ideas. We just graduated the inaugural class.  Here’s the story of our journey.

Inaugural Class Academy of Innovation Management

The Academy for Municipal Innovation has come out of collaboration between Philadelphia University and the City of Philadelphia. Soon after I came to PhilaU as the chief innovation officer, I met Adel Ebeid, who was newly appointed as Chief Innovation Officer for the City of Philadelphia. We bonded over our similar challenges, as Adel was only the second chief innovation officer in city government and I was one of the first chief innovation officers in higher education.

Building a Government Innovation Curriculum
The Academy for Municipal Innovation curriculum is built on Philadelphia University’s distinctive approach to innovation education – it’s collaborative, multidisciplinary, and engaged in the real world. The curriculum draws from Philadelphia University’s design, engineering, and business disciplines, as all are needed to make innovation relevant in the government.

Philadelphia University Undergraduate Curriculum

Philadelphia University Undergraduate Curriculum

The program is built around five core innovation practices that we teach:

  1. Integrated Design Processes – The process of opportunity finding, innovation and problem solving
  2. Business and Operations Models – How to describe, design, challenge, and evaluate innovation
  3. Systems Thinking – Methods for gathering and mapping out all stakeholders and influences surrounding an issue and solution
  4. Research Methods – How to find actionable insights and ask the right questions.
  5. Innovation Leadership – How to develop innovative teams and culture.

We took this these core innovation practices in the form that has worked at the undergraduate level, and adapted the processes and content for the working professional in the government.

The Academy for Municipal Innovation (AMI) curriculum
We deliver the class to government employees in an Executive Ed format comprised of seven 4-hour sessions.

Each class is a mix of theory and practice. A key design principle is that each session includes at least one tool that participants can use the very next day at work, so they can make it real immediately. For example, simple brainstorming techniques like “Yes, And” and “Silent Brainstorming” were put to use the same week they learned them.

We select one common theme that runs through all the classes for continuity, and they build upon it as they go. The theme for the pilot class was “How can the city better communicate and advance innovative ideas”. We built on this theme teaching the students opportunity finding, concept development, stakeholder mapping, systems dynamics, research, and business models perspective, culminating with a capstone workshop where they bring it all together.

The strategy is to take participants from across the full range of city organization chart to seed the culture change. The pilot class (we call them the Pioneers) learned innovation principles and tools, and will bring them back to their groups and spread the word. For example, a subset of the class self organized around how to better service businesses starting and operating in the city. They used the capstone to pilot a process that they plan to take back to their organizations and implement at scale.

Scaling the Academy for Municipal Innovation
We see the Academy for Municipal Innovation scaling in three dimensions:

  1. Culture – graduates become change agents in their home groups, and change their group culture locally, amplifying the impact of each graduate
  2. Depth – The certificate program can be expanded into courses for credit, and ultimate a master’s degree in innovation in government.
  3. Reach – As we move out of pilot, we will offer this program to other city governments (and other levels of government). Success in Philadelphia will make us a flagship for innovation at the city level.

Academy for Innovation Management scaling strategy

Lessons Learned

  • The bar is low but the need, and receptiveness is high for government innovation. The students in the Pioneer class have actively challenged ideas and assumptions, and are already applying what they have learned in their work. Today.
  • Creativity, collaboration, and critical thinking skills transcend context, age, and pre-existing knowledge. These skills are teachable/learnable and no matter how good you are, you can get better.
  • Leadership buy-in to innovation is that much more critical to success in government contexts.
  • Government doesn’t get to ‘opt-in’ to problem solving or choose which problems it will tackle. The government innovates with the hand it is dealt to a greater extent than the private sector.
  • The scale of a city as a building block is compelling for change and social impact. It is less complicated and with less inertia than the state and federal level, making the prospect of change more manageable.
  • “Municipal Innovation” might be an oxymoron to the cynic, but cities have scope, and levers of influence, that industry does not. Changes in policy, regulations, civic engagement, unique partnerships, social programs, and different funding mechanisms are all tools available for the municipal innovator.
  • The ‘boot camp’ experience creates a new communication network. Our pioneer class formed strong bonds learning new things together, in a new and intense environment. In addition to traditional communication, the closely bonded students can reach across the silos directly to each other, built on the relationships formed in class.

Working with the City of Philadelphia on Academy for Municipal Innovation has left me exhilarated. The city leadership, and members of this pioneer class, are committed to real innovation in government. They are taking on systems highly resistant to change, with diverse stakeholders in intricate relationships, under public scrutiny and political complexities. The magnitude of the challenge and their commitment is inspiring.

If you would like to find out more, click here

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New Lessons Learned from Berkeley & Stanford Lean LaunchPad Classes

Our Stanford and Berkeley Lean LaunchPad classes are over for this year, and as usual we learned as much from teaching the teams as the teams did from us.

Here are a few of the Lessons Learned from these two classes.

Have each team talk to 10 customers before the class starts
Each year we learn how to move more of the Lean LaunchPad class logistics outside our classroom so teams have more time for in-class learning.

A few years ago, we moved the formation of teams’ to before the class started and in doing so, saved a week of what normally be an in-class time activity. To make this happen, we hold three “information sessions” two weeks apart before the class starts. In these “info sessions” we describe the purpose of the class, and then let students mix, meet and form teams. During this pre-class time we share a Google doc where students who have ideas can find other team members, and students without an idea can find a team that matches their skills and interests. Application and admission to the class is by interview with a fully formed team.

Info session announcement

Info session announcement

The next thing we learned is to make applying to the class an integral part of the learning process. Teams apply by filling out both a business model canvas and a “competitive petal slide.” Having the teams do this accomplishes three things.  First it forces the students to read and understand “what’s a business model canvasbefore they even come to class.

Freewire application

Team Application: Business Model Canvas

Second, the competitive slide enforces a modicum of due diligence on the product and market. (We got tired of knowing more about each team’s market by doing a Google search as they presented. Now it’s their job.)

Farmsense competive slide

Team Application: Competitive “Petal” Slide

Finally, having teams spend time on the canvas and competition as part of the application process saves weeks of what would normally be an in-class activity (and as a bonus gives the team a heads-up about the difficulty of the class and shows whether they’re serious about the class or just shopping.)

This year we learned to raise the bar once again.  Could we get the teams to come into class having already talked to 10 customers? Instead of using the first class to have teams just present their business model canvas, this time the team’s first presentation would be about what they learned outside the building about their value proposition. (We pointed them to our tutorials on customer discovery and how to conduct customer interviews but didn’t expect them to be experts on week 1.)

SignUP week 1

1st week team title slide – 11 interviews before class started

We did an A/B test by requiring our teams in one school do this while not requiring it for the teams in the other school. The result?  Teams that had to talk to customers before the class hit the ground running. There was a substantive difference in team trajectory and velocity that continued throughout the quarter. The amount of learning between the two felt quite different. While there may have been other factors (team selection bias, team make up, etc.), we’ll now make this an integral part of all the classes.

Have each team put the number of Mentor interactions on their weekly title slide
The second innovation this year involved mentors. Each team is assigned a mentor as a coach. We’ve been trying to figure out how to make mentor engagements with their teams a regular rather an adhoc activity. While we have required the teams to add a summary of any mentor interaction to their LaunchPad Central narrative, we felt we didn’t have sufficient high-level visibility for these essential interactions.

GiveModo Class 8

But this year, a seemingly minor change to the teams’ weekly cover slide had an important impact. As teams present each week, their cover slides show the number of customers interviewed for that week (>10) along with the cumulative customers interviewed. This year we added one more metric for their cover slides– the number of mentor interactions for that week (>1) along with the cumulative number of mentor interactions.

This enhanced the visibility of the teams interaction (or lack of) with their mentors and allowed us to proactively intervene early if there wasn’t sufficient interaction.

Here are a few of the Final Presentations (see here for all of them)

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If you can’t see the presentation above, click here

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Listen to the blog post here

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Get the Heck Out of the Building in Founder’s School: Part 2

With a ~$2 billion endowment the Kauffman Foundation is the largest non-profit focused on entrepreneurship in the world. Giving away $80 million to every year (~$25 million to entrepreneurial causes) makes Kauffman the dominant player in the entrepreneurship space.

Kauffman launched Founders School – a new education series to help entrepreneurs develop their businesses during the startup stage by highlighting how startups are different from big companies.

In January 2014 Part 1 of the “Startups” section of Founders School went online.

Now you can watch Part 2 “The Lean Approach“.

Founders School

This group of six videos provides an overview of how to successfully do Customer Discovery. You’ll learn how to:

  • get to know your customers
  • devise ways to test your hypotheses
  • glean insights from what you learn outside the building
  • get, keep and grow customers

As in the first part of this series, I’m in good company – I’m joined in Founders School by Noam Wasserman of Harvard teaching Founder’s Dilemmas, Craig Wortmann University of Chicago covering Entrepreneurial Selling, Peter McDermott helping understand Intellectual Property, and Nathan Gold offering how to give Powerful Presentations.

These videos are not only great tutorials for founders but also provide educators with another source of well produced and curated resources.

These “Startup and The Lean Approach” videos are a great general purpose companion to my “How to Build a Startup” lectures on Udacity.

And you get a tour of my living room and office…

Introduction, for Part 2 is here

Module 1, The Lean Method

  • 0:50: There are No Facts Inside Your Building — Get Outside
  • 1:28: Using the Business Model Canvas
  • 1:49: Use Customer Development to Test Your Hypotheses
  • 2:44: What is a Pivot?
  • 4:24: No Business Plan Survives First Contact with Customers

Module 2, Getting Out of the Building: Customer Development

  • 0:24: What is Customer Development?
  • 1:09: How Do You Start the Customer Development Process?
  • 1:36: Customer Discovery is a Series of Conversations
  • 2:05: The Founder and Customer Development
  • 3:16: Real World Example of Customer Development

Module 3, Customer Development Data

  • 0:31: Designing Experiments to Test Hypotheses
  • 0:48: Doing Customer Discovery Without Collecting Data is a Sin
  • 1:06: Insight is Key
  • 1:49: Why Accountants Don’t Run Startups

Module 4, Minimum Viable Products

  • 0:18: What is a Minimum Viable Product?
  • 0:38: What to Test, Why to Test and How to Test
  • 2:05: You’re Not Building a Product … You’re Getting Customer Feedback
  • 2:53: Use MVPs to Run Experiments
  • 4:15: Real World Example of an MVP

Module 5, Customer Acquisition and Archetypes

  • 0:47: Get, Keep and Grow Customers
  • 1:00: Create Customer Demand
  • 1:46: Customer Archetypes: Getting to Know Your Customers
  • 3:35: Matching Archetypes to Acquisition
  • 5:28: Growing Customers: The Lifetime Value
  • 7:35: The Biggest Mistake in Customer Acquisition

Listen to the blog post here

Download the podcast here

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