9 Lean Startup Pivots When Your Business Needs a Change
Do you feel it is time for a change? Leading a team or a whole business requires much responsibility and decision making quickly and efficiently. We presented a nice handy tool, the Customized Kanban Tool, that helps in Business Administration to plan, design, run and monitor experiments using metrics from your Business Intelligence department. When you move from an experiment to an experiment you realize that sometimes you get less and less efficient and also the validated learning takes you nowhere. Usually this is the moment to change, pivot.
I shall propose 9 pivots discussed in the Lean Startup movement. Consider any of those to your business when the time comes:
1. Zoom-In Pivot - refocusing the product on what previously has been considered just one feature of a larger whole.
2. Zoom-out Pivot - what was considered the whole product becomes a single feature of a much larger product.
3. Customer Segment Pivot - keeping the functionality of the product the same but changing the audience focus - B2B, B2C, B2B2C, etc.
4. Platform Pivot – changing the platform used for sales or customer communication channels.
5. Business Architecture Pivot - high margin, low volume (complex systems model) or low margin, high volume (volume operations model).
6. Value Capture Pivot – Choosing a different revenue model or channel.
7. Engine of Growth Pivot – viral (word of the mouth with focus on the feedback loop), sticky (hard to change service - focus on retention rate) or paid growth (the price of customer acquisition is less than its lifetime value LTV, i.e. marginal profit per customer is positive) models
8. Channel Pivot - the mechanism by which a company delivers its product to customers is called the sales channel or distribution channel.
9. Technology Pivot - Occasionally, a company discovers a way to achieve the same solution by using a completely different technology that can provide can provide superior price and/or performance compared with the existing technology.
Have you performed any of those in your company already? Connect with me and do let me know.