The Lean Startup

The innovation accounting framework makes it clear when the company is stuck and needs to change direction.

True

We must be willing to set aside our traditional professional standards to start the process of validated learning as soon as possible.

True

The author Eric Ries explains "hard work and perserverance does lead to success.

False

The author agrees that a good plan, a solid strategy, and thorough market research works for startups.

False

Companies are able to design, develop, and ship out new features one at a time, taking advantage of the power of small batches.

True

Early adopters use their imagination to fill in what a product is missing.

True

Entrepreneurs need a personal stake in the outcome of their creations.

True

Entrepreneurs possess a unique combination of perseverance and flexibility.

True

Entrepreneurs should humbly test their theories and approach to see what the market thinks. Listen to the feedback honestly. And continue to innovate in the directions they think will create meaning in the world.

True

In the Lean Startup model, an experiment is more than just a theoretical inquiry; it is also a first product.

True

Learning milestones are useful for entrepreneurs as a way of assessing their progress accurately and objectively; they are also invaluable to managers and investors who must hold entrepreneurs accountable.

True

More than one engine of growth can operate in a business at a time.

True

Startup organizations must attempt to tune the engine from the baseline toward the ideal.

True

Startup success can be engineered by following the right process, which means it can be learned, which means it can be taught.

True

Startups are too unpredictable for forecasts and milestones to be accurate.

True

The amount of time a company can count on holding on to market leadership to exploit its earlier innovations is shrinking.

True

The importance of small-batch approach produces a finished product every few seconds, whereas the large-batch approach must deliver all the products at once, at the end.

True

______________ , a quantitative approach that allows us to see whether our engine-tuning efforts are bearing fruits.

A. Innovation Accounting

The Lean Startup model offers a way to test an organization's hypotheses __________.

C. All of these are correct (thoroughly, rigorously, & immediately)

If you are causing (or missing) quality problems now, the resulting defects won't slow you down later.

False

Most tools from general management are designed to flourish in the harsh soil of extreme uncertainty in which startups thrive.

False

A pivot requires that we keep one foot rooted in what we've learned so far, while making a fundamental change in strategy in order to seek even greater validated learning.

True

A solid process lays the foundation for a healthy culture, one where ideas are evaluated by merit and not by job title.

True

A ___________ organization is one that automatically adjusts its process and performance to current conditions.

a. adaptive

The __________________ is defined as the fraction of customers in any period who fail to remain engaged with the company's product.

a. churn rate

The author strongly recommend that startup teams be _____________.

a. completely cross-fuctional

It is important to focus on establishing the _________ under which autonomous startup teams operate.

a. ground rules

With all pivots, we have to get back to the basics and start the ________________ over.

a. innovation accounting cycle

The "growth hypothesis" _______ how new customers will discover a product or service.

a. tests

Under pressure, teams may feel that they don't have _______ to waste on analyzing root causes even though it would give them more time in the long term.

a. time

Many viral products do not charge customers directly but rely on indirect sources of revenue such as _________________.

b. advertising

Because the Japanese car market after the war was so small and capital was not available, they were unable to do mass production and take advantage of ______________.

b. economies of scale

The truth is every engine of growth __________________.

b. eventually runs out of gas

The reason to build a new team to pursue an idea is that you believe you can accelerate through the Build-Measure-Learn feedback loop __________.

b. faster than anyone else can

The goal of creating learning milestones is ______________; to make sure that there is relevant data in the room when it comes time to decide.

b. is not to make the decision easy

The more money, time, and creative energy that has been sunk into an idea, the harder it is to _________.

b. pivot

Marc Andreessen coined the term ___________ to describe the moment when a startup finally finds a widespeard set of customers that resonate with its product.

b. product/market fit

The biggest advantage of working in small batches is that ___________________.

b. quality problems can be identified much sooner

Startups are in a life-or-death struggle to learn how to build a sustainable business before they ______________________.

b. run out of resources and die

The author finds that when switching to validated learning, it feels ________ before it feels ___________.

b. worse, better

The "value hypothesis" __________ whether a product or service really delivers value to customers once they are using it.

b.tests

__________ is the oldest excuse in the book for failure of execution.

c. learning

Entrepreneurship requires a ______________ to harness an entrepreneurial opportunity.

c. managerial discipline

When a company _______, it starts the process all over again, reestablishing a new baseline and then tuning the engine from there.

c. pivot

Once an organization entered a period of rapid hiring, repeated Five Whys sessions revealed that problems caused by lack of ___________ were slowing down product development.

c. training

The critical first question for any lean transformation is:

c. which activities create value and which are a form of waste

___________________ defines value as providing benefit to the customer; anything else is waste.

d. Lean thinking

The Build-Measure-Learn feedback loop is a __________ process.

d. continuous

This is true startup productivity: systematically figuring out _______________.

d. the right things to build

The irony is that it is often easier to raise money or acquire other resources when you have _________________.

d. you have zero revenue, zero customers, and zero traction