Lean Startup Assessment

Are you thinking of using the Lean Startup model created by Eric Ries and captured in his book The Lean Startup – ‘How relentless Change Creates Radically Successful Businesses’. Are you using the LSU method already and want to know if you are doing it by the book? Well below you will find our Lean Startup Assessment where we go through the book and set questions for you to assess how well you are getting on and how well you know the book (you can use the test to check how much you remember of the book. Have a go and see what score you get (all the answers can be found in the book if you have a copy).


  • Book Title – The Lean Startup
  • Book Author – Eric Ries
  • PublisherPenguin

Sellers:


Lean Startup Questions

Introduction

Origins of the Lean Startup

Q1. What is the reason Ries gives for his first company failing despite having everything one would need to be successful?

A1. Ries and his other founders didn’t know the process needed to turn the product insights into a great company.

Q2. What are the grim realities of creating a startup?

A2. Most startups fail, most products are not successful, new ventures do not live up the potential (hype)

Q3. What was the type of technology named before the James Cameron blockbuster that was the foundation for a new startup in 2004?

A3. Avatars

Q4. What was the name of the startup and what was Ries’ role in it?

A4. IMVUwith Ries as cofounder and Chief Technology Officer

Q5. What approach did IMVU take to product development that was different to previous startups Ries had worked in?

A5. ‘We do everything wrong’. Rapidly built the product and shipped it not finished. Development small minimal viable products (MVP) for testing.

Q6. IMVU didn’t do what early adopters recommended. True or False?

A6. True. They did not do what they said. Their input was only one source of information about the product and overall vision

Q7. What did the IMVU development process build on with respect to previous management and product development ideas?

A7. Lean manufacturing, design thinking, customer development, and agile development

Q8. What did Ries see this new approach doing?

A8. The new approach created continuous innovation which he called the Lean Startup.

Q9. What three things characterised the radical new approach?

A9. 1) extremely fast cycle time, 2) a focus on what customers what (without asking them) and 3) a scientific approach to making decisions.

Q10. Who was the investor and advisor for IMVU that was preaching a new idea?

A10. Steve Blank.

Q11. What was the investors new idea?

A11. Blank thought that business and marketing functions should by considered as important and engineering and product development therefore the business and marketing functions should have an equally rigorous methodology to guide them.

Q12. What did the investor call the new idea/methodology?

A12. Blank called the new idea/methodology Customer Development

Q13. What form of manufacturing did Ries study to help him make sense of him business development experience?

A13. Lean Manufacturing

Q14. Where did that manufacturing process originated (country and company)

A14. Lean Manufacturing originated in Japan within car manufacturer Toyota in a system Toyota called the Toyota Production System.

Q15. What sort of thinking was applied to create the Lean Startup?

A15. Lean thinking in the process of innovation and startup creation

Q16. How did Ries first capture his ideas about what he had learnt and applied to startup development at IMVU?

A16. Ries first started writing a blog called Startup Lessons Learned. He also shared his thought by speaking at conferences and anyone who would listen

Q17. What was an aim of Ries publishing his method on starting startups?

A17. Ries wanted to find a way to eliminate the waste he saw created by startups (products nobody wanted, new products pulled from shelves etc)

Q18. What was Ries’ mission for his Lean startup methodology?

A18. Ries wanted ‘to improve the success rate of new innovative products worldwide’. This is the aim of the book and the method.

The Lean Startup Method

Q19. How many principles are there to the Lean Startup?

A19. Five

Q20. Complete the principle: ‘Entrepreneurs are [blank]’

A20. ‘everywhere’. Principle 1: Entrepreneurs are everywhere

Q21. Complete the principle: ‘[blank] is management’

A20. ‘Entrepreneurship’. Principle 2: Entrepreneurship is management

Q22. Complete the principle: ‘[blank] learning’

A22. ‘Validated’. Principle 3: Validated learning

Q23. Complete the principle: ‘Build-[blank]-Learn’

A23. ‘Measure’. Principle 4: Build-Measure-Learn

Q24. Complete the principle: ‘Innovation [blank]’

A24. Accounting. Principle 5: Innovation Accounting

Why Startups Fail

Q25. How many problems do startups have to solve?

A25. Two

Q26. What is the first problem of a startup?

A26. Problem 1 — the allure of a good plan, a solid strategy, and thorough market research.

Q27. What is the second problem of a startup?

A27. Problem 2 — seeing traditional management fail to solve problem so adopting a “Just Do It” approach (no management)

Q28. What must a startup be?

A28. Managed. ‘a startup [.] must be managed’

PART ONE — Vision

1. Start

Entrepreneurial Management

Q29. Why are entrepreneurs wary of traditional management practices?

A29. They fear they will invite bureaucratic practices that will stifle creativity. Can lead to a no management or ‘Just do it’ attitude.

Q30. Why does general business management not suit startups?

A30. General or traditional management are not designed or suitable to handle the chaos and uncertainty of startups. General management is suitable for stable and controlled businesses.

Q31. Over the previous two decades what has happened to US manufacturing jobs and manufacturing output?

A31. US manufacturing jobs have declined (been lost) whilst manufacturing output has increased. There is more productive capacity than there is demand.

Q32. What is our civilization’s most precious resources?

A32. Time, passion, skill of it’s people

The Roots of the Lean Startup

Q33. From where does the word ‘Lean’ from the Lean Startup come from?

A33. ‘Lean’ in the Lean Startup comes form the lean manufacturing revolution developed at Toyota

Q34. What two persons are credited with developing lean manufacturing whilst working at Toyota

A34. Taiichi Ohno and Shigeo Shingo

Q35. What are the tenants of the lean manufacturing?

A35. Lean manufacturing tenants are: using the knowledge and creativity of individual workers, small production batch sizes, just-in-time (JIT) production with control inventory levels, acceleration of production cycle times.

Q36. What does the Lean Startup to measure progress?

A36. The Lean Startup uses validated learning to measure progress

Q37. What is the point of using scientific learning as a measuring approach?

A37. Scientific learning is used to discover and eliminate the sources of waste that plaque entrepreneurship

Q38. What should a theory on entrepreneurship look to cover?

A38. All the functions of an early stage venture 

Q39. How many functions of an early stage venture can you name?

A39. Any of the following: Vision and concept, product development, marketing and sales, scaling production, partnerships and distribution, structure and organizational design.

Q40. What is the aim of a entrepreneurship / startup method?

A40. The method has to able to measure progress in extreme uncertainty by giving the ability to make trade-off decisions. Must test predictions made within the uncertainty.

Q41. How do you hold team accountable in the Lean Startup?

A41. Learning milestones. The idea is to measure how the business is improving not a department or individual.

Q42. What is frustratingly intangible?

A42. Learning [in contrast to tangible production] is frustratingly intangible.

Q43. Why does delivering a product on time and to budget sometimes not matter with a startup?

A43. Startups often accidently (they want to succeed) create a product that customers don’t use, want or pay for. 

Q44. What should the goal of a startup be?

A44. The goal of a startup is to work out as quickly as possible what customers want and will pay for.

Q45. What metaphor does Henry Ford bring to the Lean Startup thought process?

A45. Ries sees Ford as an innovator and engineer. The car that Ford produced is a metaphor for a startup — it has an engine that drives the vehicle forward and steering to change direction to avoid obstacles before accelerating.

Q46. What is the ‘engine of growth’?

A46. The ‘engine of growth’ is a metaphor for how a startup’s rapid product will effect the efficiency of the engine (business). Some changes will improve some will not but constant tinkering the engine becomes more efficient and can move faster/have more power.

Q47. What is the second important feedback loop that is needed to drive a car (and a startup)?

A47. The second important feedback is between the driver and the steering wheel. The comparison for a startup is that an entrepreneur needs to steer the startup through it’s development. It’s a slow process that requires practice and improvement based on feedback until it becomes instinctive (like driving).

Q48. How do some plans for a startup look when compared to learning to tune and drive a car?

A48. Some, (perhaps too many) startup look more like launching a rocket than learning to drive. Highly detailed plans based on assumptions where the assumptions could have catastrophic outcomes (startup fails — people lose things).

Q49. What does’ achieved failure’ mean?

A49. Achieved failure means to ‘ successfully, faithfully, and rigorously executed a plan that turned out to have been utterly flawed’

Q50. What does the Lean Startup provide to help steer the business?

A50. The Lean Startup provides the Build-Measure-Learn feedback loop. The steering wheel helps to know when to steer (pivot) or carry on (persevere). Once moving the cycle looks to accelerate the business through scaling and partnerships. Remember you don’t know where you are going unlike a traditional business.

Q51. When driving the startup what must the startup have (or look to define quickly)

A51. A destination in mind, a North Star to guide by, a vision

Q52. How is a vision achieved?

A52. Through employing a strategy.

Q53. What does a strategy typically include?

A53. A business strategy can (should) include a business model, product road map, position about partners, competitors, and customers.

Q54. What is the end result of the strategy?

A54. The product is the end result of the strategy. It is what is produced.

Q55. Name the three levels in the Lean Startup triangle (more points for putting them in the correct order/levels)

A55. (From top to bottom) Product > Strategy > Vision

Q56. What should you do with the product level?

A56. Optimise — tune the engine

Q57. What should you do with the strategy level?

A57. Pivot or persevere — steer away or keep going

Q58. What should you do with the Vision level?

A58. Keep going (it doesn’t change that much)

Q59. In general management a failure is caused by what?

A59. A lack of adequate planning or execution of the plan

2. Define

Q60. What is an intrapreneur?

A60. An intrapreneur is someone with an entrepreneur attitude but works inside an established company

Q61. How does the Lean Startup define a startup?

Q61. “A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty”

Q62. By what are most startups still managed?

A62. Standard forecasts, product milestones, and detailed business plans

Q63. What type of innovation do established companies with established products tend to focus on?

A63. Sustaining innovation — incremental improvements to existing products and services

Q64. What is the other type of innovation startups create based on the two types set by Clayton Christensen The Innovator’s Dilemma

A64. Disruptive innovation — brand new products/services that disrupt the market

Q65. What was the name of the famous venture capitalist that helped Intuit become a fully diverisified enterprise? [Hint: this person wrote the book “Measure what Matters which defines objectives and key results (OKRs)]

A66. John Doerr and here’s his website ‘What Matters

Q67. According to Ries what must a company build to sustain long-term economic growth

A67. A company should build an ‘Innovation Factory’ that use Lean Startup Techniques

3. Learn

Q68. What is the oldest excuse in the book when it comes to failure of execution?

A68. “Learning”. Managers fall back on this when results fail on keep promises

Q69. What can’t you do with “learning”?

A69. You can’t take learning to the bank, spend of investor, give it customers, or return it to investors/partners

Q70. What is ‘Validated Learning’?

A70. Validating Learning is a rigorous method for demonstrating progress within uncertainty.

Q71. What is Metcalfe’s law?

A71. Metcalfe’s law states that the value of a network is proportional to the square of the number of participants i.e. 4 participants = 2 value, 9 participants = 3 value, etc. This was important to the strategy of IMVU as it looked to calculate how to make a valuable product.

Q72. What question is at the heart of lean manufacturing revolution?

A72. Which of our efforts are value-creating and which are not (value-destroying, wasteful)

Q73. How does lean thinking define value?

A73. Lean thinking defines value as providing benefit to the customer; anything else is waste.

Q74. Why is the lean definition of value a challenge for startups?

A74. The customer’s benefit is not clear; they don’t know what they will find valuable until they see and use the product. 

Q75. What is validated learning for in a startup?

A75. Validated learning is a way to demonstrate by positive improvements the startup’s core metrics (avoid learning nice but irrelevant things) bases on empirical data from real customers.

Q76. Who should you show the validated learning results to? 

A76. Startup stakeholders — employees, investors and the startup staff

Q77. What is the advantages of ‘zero’

A77. Invites imagination that the product could be a success overnight (as there is no evidence that it won’t be however unlikely that may be)

Q78. What is not a good way of releasing a product?

A78. Releasing and hoping for the best is not a good plan

4. Experiment

Q79. How is the “let’s just ship it and see what happens” defined as a strategy?

A79. “Just do it” school of entrepreneurship 

Q80. What is one of the most important lessons of the scientific method?

A80. “If you cannot fail, you cannot learn”

Q81. What is the name of the online trainer company who used small experiments to prove it’s business strategy?

A81. Zappos founded by Nick Swinmurn

Q82. What are the two most important hypotheses entrepreneurs look to answer?

A82. Value hypothesis and the growth hypothesis

Q83. What is the value hypothesis trying to prove?

A83. The value hypothesis looks to prove whether a product or service really delivers value to customers once they are using it.

Q84. What is the growth hypothesis?

A84. The growth hypothesis tests how new customers will discover a product or service.

Q85. What is one of the points of the growth hypothesis?

A85. To find early adopters — customers who feel the need for the product most acutely. Early adopters tend to be more forgiving of mistakes and eager to give feedback. An important aspect of the growth hypothesis is how early adopters will influence others to use it — promote its use without advertising — viral promotion.

Q86. What is a concierge minimum viable product (cMVP)?

A86.

Q87. What is an experiment also apart from a theoretical inquiry? 

A87. It is also a first product

Part Two: Steer

Q88. What are the two types of feedback that can be generated by using a product?

A88. Qualitative (likes and dislikes) and Quantitative (how many)

Q98. What are the three phases of the Build-Measure-Learn feedback loop?

A98. Building of ideas into a working product, Measurement of product use to produce data, Learning to produce ideas about the product

Q99. What should the strategy aim to do with Build-Measure-Learn loop?

A99. Minimize the total time through the loop — the essence of steering a startup

Q100. What are the riskiest elements of a startup plans also called?

A100. Leap-of-faith assumptions. These assumptions make up the value and growth hypothesis

Q101. What do the value and growth hypothesis look to produce (give rise to)?

Q102. Engine of growth Tuning Variables (tinkering to make the engine perform more effectively and efficiently.

Q103. How do you enter the Build phase?

A103. To enter the Build phase a Minimal Viable Product (MVP) is needed as quickly as possible

Q104. What does an MVP allow a startup to do?

Q104. An MVP enable a startup to perform a single full turn of the Build-Measure-Loop cycle in the least amount of effort and least amount of development time.

Q105. What must you be able to do with an MVP (despite a lack of features)?

A105. A startup up must to be able to measure the impact [effect] on it’s MVP on the market through customer use.

Q106. What is the biggest challenge in the Measure phase?

A106. The biggest challenge will be determining whether the product development efforts are leading to real (tangible) progress.

Q107. What does Innovation Accounting look to quantitate?

A107. Innovation Accounting looks to quantitatively see whether changes in the tuning variables from the hypothesis are improving the product.

Q108. How is Innovation Accounting linked to Learning Milestones?

A108. Innovation Accounting allows startups to create defined stages and achievement over time (milestones) that prove that the startup is improving its product offering by learning what is valuable as proven by customer use.

Q109. What is the most important part of the Build-Measure-Learn cycle?

A109. The most important part of the Build-Measure-Learn cycle is the pivot

Q110. When is the pivot or persevere decision made?

A110. After completing the cycle i.e. after Learn

Q111. For what reason would a startup look to pivot?

A111. If the startup discovers one of the hypotheses is false i.e. the value hypothesis doesn’t work for a customer or the growth hypothesis shows no growth in customer take up.

5. Leap

Q112. What is one role of strategy in a startup for?

A112. The role of strategy in a startup is to help workout the right questions to ask

Q113. What is the first challenge a startup faces to test its strategic assumptions?

A113. The first challenge for a startup is to build an organization that can test the assumptions within the business strategy

Q114. What is the second challenge a startup faces when testing its strategic assumptions?

A114. The second challenge for a startup is to perform rigorous testing of strategic assumptions without losing site of the company’s overall vision

Q115. Who was the venture capitalist who uses a framework of “analogs” and “antilogs” to describe startup strategies?

A115. Randy Komisar (and John Mullins) author of the book Getting to Plan B

Q116. According to Komisar what is an “analog”?

A116. An analog is a proven customer behaviour that strengthens the startup’s vision for the product to be used e.g. will customers listen to music in public?  — Yes. Sony Walkman

Q117. According to Komisar what is an “antilog”?

A117. An antilog is a proven customer behaviour that weakens the startups’s vision for a product to be used e.g. will customers pay to download music? — No — Napster

Q118. What is ‘success theater’ with respect to startups?

A118. Success Theater is when startups give the impression in either value or growth terms that the startup is a success e.g. value generation that hurts the long term value or growth that is promoted through expenditure (advertising)

Q119. What does the Japanese ‘genchi genbutsu’ translate into English as?

A119. Genchi genbutsu translates roughly into “go and see for yourself” for Toyota Production System meaning to go the market to see how the customer uses the product. Book has it as gembutsu so this has been corrected here.

Q120. What is a customer archetype?

A120. A customer archetype is a documented description of a customer of a proposed product i.e. customer persona.

Q121. What is the name for a new way of designing product and user experiences?

A121. Lean User Experience (Lean UX)

Q122. What is ‘Analysis Paralysis’?

A122. Analysis Paralysis is a state of not moving forward due to every increasing degrees of analysis of a problem not moving (making decisions due to analysis)

6. Test

Q123. How does a minimum viable product (MVP) help an entrepreneur?

A123. A minimum viable product (MVP) helps entrepreneurs start the process of learning as quickly as possible.

Q124. How the MVP help the startup learn?

A124. The MVP helps the start up move fast through the Build-Measure-Learn feedback loop with the minimum amount of effort.

Q125. What is the goal of the MVP with regard to the startup learning?

A125. The goal of the MVP is to begin the process of learning for the startup. The MVP launch is not the end of the learning cycle.

Q126. Who must you sell your product to first?

A126. Products have to be sold to early adopters before the mass market regardless of how small that group is (it can be a very large number especially if the product is limited).

Q127. What is the work on a product that is not needed to learn about the product called?

A127. Waste. Mainly time as the startup could have learnt earlier.

Q128. What is the concierge MVP for?

A128. The concierge MVP is designed to test the leap-of-faith assumptions in the company’s growth model/growth hypothesis

Q129. What is ‘Wizard of Oz testing’ used to test the Aardvark product?

A129. A way to test a customer offering that looks like an automated computer response but is a manual human response. Aardvark created a product that allowed a customer to ask a question via a website like a search engine but the response was from an expert. In the film the Wizard of Oz, the wizard is seen as all powerful but behind the scenes, the wizard is just a single individual doing all the work.

Q130. What is the famous dictum from W. Edward Deming’s about the customer’s involvement in the production process?

A130. Deming said the customer is the most important part of the production process. ‘Principle 16. The consumer is the most important point on the production-line. Consumer research and testing in service are statistical problems.’ Interesting Deming also said ‘Management by results — like driving a car by looking in rear view mirror.’ Something to be said about how startups need to manage by testing.

Q131. Fill in the blank in the following sentence: ‘If we don’t know who the customer is, we don’t what [blank] is’

A131. Quality. The idea that you can’t define quality until you know who and what the customer defines as quality. The sooner you share something the better.

Q132. What is the simple rule when trying to define an MVP?

A132. Remove any feature, process or effort that does not contribute directly to the learning you seek [no matter how much you think it’s important]

Q133. What are the two challenges for a startup when trying to get their idea noticed?

A133. 1) No one cares and the product is never noticed and 2) the product is noticed and established competition make the idea or outexecute better before the startup can improve.

Q134. Does a head start in developing a product give a startup a large advantage?

A134. No. A head start is rarely enough to stop competition catching up. The only way is to learn faster than the competition.

Q135. How should startups deal with poor feedback from showing MVPs to customers?

A135. Startups should commit to iterations of their product regardless of the feedback to ensure the startup doesn’t dwell on poor feedback but see it as a single cycle to improve the product offering.

7. Measure

Q136. What are the two jobs a startup must do related to measurement?

A136. A startup must 1) rigorously measure where it is in the present accepting this position as the truth and from this statement position 2) create experiments to learn how to move the numbers to the ones forecast in the business plan.

Q137. Why is the myth of the epic entrepreneurs and why is it so dangerous?

A137. You don’t get to hear about all the failed epic entreprenuers who waited too long to tested their product with a customer to prove value.

Q138. What does innovation accounting enable a startup to do?

A138. Innovation accounting looks to enable a startup prove, objectively, it is learning how to group a sustainable business

Q139. What is the first thing innovation accounting looks to do?

A139. The first thing innovation accounting looks to do is turn leap-of-faith assumptions into the quantitative financial model.

Q140. What are the three steps of innovation accounting?

A140. Step 1: use a MVP to establish real data to establish/place the startup at that moment in time. Step 2: Change the product based on experiments related to the data. Step 3: based on the data from the change decide to preserve (stick) with the plan/strategy or pivot (change) to alternative based on a new experiment.

Q141. What strategy can a startup use to establish a baseline?

A141. A single detailed product or multiple smaller products to test assumptions. Anything that will test an leap-of-faith assumption.

Q142. What should the MVP do in terms of progress when setting a baseline?

A142. The first MVP should look to either get to or show progress to a learning milestone set out in the business strategy.

Q143. What is cohort analysis?

A143. Cohort analysis is the study of specific groups of customers on a specific aspect of a product. For startup it helps to look at the result of experiments on certain with respect to moving them toward or after from a business goal e.g. conversion.

Q144. Why are vanity metrics a problem for any company?

A144. Vanity metrics show/measure a dimension of production that make the startup think it is making progress when it doesn’t prove any real value of progress.

Q145. What is the opposite to vanity metrics for a startup?

A145. Actionable metrics are metrics that can prove business assumptions through learning milestones.

Q146.What is a rigorous version of agile development?

A146. Extreme programming

Q147. What is another one word for one-month iteration cycles

A147. Sprints

Q148. How can a startup, like the company Grockit, prioritize the work to be done in an iteration or sprint?

A148. Through writing a series of user stories. An agile technique to capture customer value statements by describing how the user would use it instead of as a technical design which comes later.

Q149. What is seen as the grand bargain in agile development?

A149. The engineers build what the business decides (priortizes) but are not responsible for those decisions.

Q150. How does split-testing help a startup with its innovation accounting?

A150. Split-testing helps a startup learn as it allows the product to be tested against two groups so a control group can be used as a comparison to a new group (for a feature change) or can be used to test two new features to see which, if any, is more used.

Q151. What word can be used to describe capacity constrained production?

A151. Kanban

Q152. What is a rule of Kanban?

A152. Only a certain number of items (units, parts, stories) can exist in a defined part of the production process. i.e. only 4 things can be in development at one time.

Q153. Where are items used to track work in kanban visualised?

A153. On a kanban board

Q154. What are the the three As of actionable metrics?

A154. Actionable, Accessible, and Auditable

Q155. What do each of the three As do to help?

A155. Actionable: must demostrate clear cause and effect. Accessible: results are understandble and reachable/accessible to as many people as possible. Auditable: data is credible to employees

8. Pivot (or Persevere)

Q156. What is a pivot in the Lean Startup model?

A156. A pivot is a structured course correction designed to test a fundamental hypothesis about the product, strategy, and how to make them better via the engine of growth.

Q157. What is a zoom-in pivot?

A157. A zoom-in pivot is a refocussing of the whole product on just on feature as that single feature shows more interest than the whole product idea.

Q158. What is a platform pivot?

A158. A platform pivot is to change a single product for single use to a platform where the product allows other separate products to work better so the original product is working as a platform.

Q159. What is a startup’s runway?

A159. It the number of pivots it can make before it has to launch (take off) or fail.

Q160. What is a customer segment pivot?

A160. A customer segment pivot is to change the strategy of startup to focus on a new set of customers that were not originaly targetted. 

Q161. How many different types of pivots can you name?

A161. Zoom-in, zoom-out, customer segment, customer need, platform, business architecture, value capture, engine of growth, channel, technology, strategic hypothesis. Eleven pivots are mentioned in the book.

Part 3: Accelerate — Start Your Engines

9. Batch

Q162. How many pieces of work are in progress under the lean manufacturing process ‘single-piece flow’?

A162. One. Example stuffing envelopes with newsletters.

Q163. What is the biggest advantage of working in smaller batch sizes?

A163. Identifying quality issues sooner

Q164. What is continuous deployment?

A164. A process where the product is automatically recalled or deployed with little to no the involvement of intervention.

Q165. What are the three reasons some startups can iterate faster than others?

A165. 1) Computer hardware changing to software with no upfront spend required. 2) Fast production changes through better software. 3) 3D printing and rapid prototyping tools.

10. Grow

Q166. What are the 4 primary ways customers drive sustainable growth?

A166. 1) Word of mouth, 2) As a side effect of product usage, 3) Through funded advertising, and 4) Through repeat purchase or use.

Q167. What are the three types of Engine of Growth?

A167. 1) Sticky, 2) Viral, and 3) Paid

11. Adapt

Q168. What is the Friendstar effect?

A168. The Friendstar effect is a description of a company suffering a severe technical or strategic strategy from which they never recover. Named after the social media company Friendstar who had been highly success but made the wrong turn in 2009 (which is the reason you may be asking who is Friendstar in the first place).

Q169. What is the Five Whys and how does it help a startup adapt?

A169. It helps an organization to try and define a problem to a set depth and then working towards options on how to solve it.

12. Innovate

Q170. What the three structural attributes a startup team should have to maintain innovation?

A170. 1) Scarce but secure resources, 2) independent development authority, and 3) personal stake in the outcome.


End of Assessment