Analysis Paralysis (and Blaming Lean Startup)

Lately, I’m getting more and more feedback from entrepreneurs that Lean Startup is holding them back.

I’m seeing this in action as well; startups that are “stuck” in a permanent mode of analysis with little to no action.

Entrepreneurs blame the Lean Startup process. They point out that the need to validate everything before moving forward slows them down and confuses them too much. They’d rather just go ahead with something and define that as progress.

There are a few things at work here.

For starters, I’ve written about the pace of Lean Startup before, because at certain stages it does feel slow.

The goal of Lean Startup isn’t to slow you down, but it is designed to make you think critically about what you’re doing and amass (some form of) proof that you’re heading in the right direction before barreling ahead. Those that go through the early customer development and Lean Startup process may feel paralyzed or derailed for a bit, but they come out the other end with a much clearer picture of where to run. And then, you run. As fast as you can.

Secondly, it seems that entrepreneurs are genuinely struggling with how to run good experiments.

It’s a combination of not knowing how to do it and also not wanting to. Being good at running experiments and following the Lean Startup methodology takes practice. It’s really as simple as that. You either put in the effort or you don’t. You either believe it adds value or you don’t. If you want to remain completely delusional throughout the startup process, you’re welcome to do so, but your odds of success are terrible.

Entrepreneurs also struggle a great deal with the idea that they’ll be forced to “throw out their work.” The idea that a hypothesis and experiment may fail feels like a total waste of time. And I get that; no one wants to feel like they’re wasting their time. You have to realize that a failed experiment – if it was well designed and intended – is incredibly valuable. Rovio tried 51 games before hitting on Angry Birds. It took them 8 years. No one is suggesting you try 51 things over 8 years before finding something successful, but as long as you’re genuinely learning through failed experiments, then you’re moving closer to success.

A good experiment needs a clear outcome. The same holds true with customer development interviews. There needs to be a very specific point to the effort. Good experiments and customer development interviews are supposed to make decision-making easier, and lead to specific next steps. If that’s not happening, you need to figure out why and change how you’re running experiments and interviews. Otherwise you’ll absolutely be paralyzed.

Finally, I get the feeling that entrepreneurs think that Lean Startup is sucking the guts out of startups.

Nothing could be farther from the truth. No startup succeeds by simply following a methodology. There’s no formula for success. There are simply too many variables, most of which you cannot control. Your guts (or instincts) are crucial throughout the startup experience. You’ll make decisions on imperfect data (even following Lean Startup). You’ll have sudden sparks of inspiration and insight, connecting dots that no one else has in quite the same way, and have to execute on those sparks quickly. You’ll play your hunches.

At the end of the day, you – as the founder of your startup – make the decisions. You’re in charge. No one’s trying to take that way from you, or turn your guts and instinct into a mechanical, fully calculable process. Startups are too crazy for that. Just as you can align big vision and Lean Startup you can do the same with instinct and Lean Startup. So don’t use this as an excuse. Lean Startup is a framework for helping, for de-risking things and guiding decision-making. But Lean Startup is not a guarantee.

You can escape analysis paralysis in a number of ways. You can listen to your instincts and just do something, pick a path and plant a flag in the ground. You can also run more experiments. You can do both together. Startups are crazy but they don’t have to be insanely messy. You can apply some method to the madness and improve your focus. Run small experiments in a few days to get out of a funk and learn something. Make some quick decisions, test your assumptions and go from there. Don’t sit in the office staring at your screen waiting for something to happen. Mentors can help too. They bring an honest, outside opinion that may shake you loose. They might also confuse the situation further though, if they’re providing disparate feedback. So be careful.

Almost every startup goes through analysis paralysis at some point during its existence. But if it’s happening consistently and for long periods of time, you have to look at your decision-making processes and your willingness to experiment outside of your comfort zone (and fail). You can’t sit there and blame Lean Startup or anything else; it’s up to you to break out of it and push forward.


Running Lean by Ash Maurya

Seems these days I start almost every blog post talking about Lean Canvas. I’ve seen the Lean Canvas work effectively – as a planning, strategy and communication tool – and encourage any startup I’m working with to give it a try. Ultimately it’s about focus. Focus is incredibly elusive in a startup. A lack of focus kills. Flat out. You might get lucky (and you need luck no matter what to win), but more than likely if you’re not hyper-focused on what matters, you’ll flounder and sputter out. And it sucks big time.

Running Lean is Ash Maurya’s book on how to focus (and use Lean Canvas).

He calls it “Running Lean” and the title is important: this isn’t about going slow, getting paralyzed by analysis, or lost in the weeds. It’s about running as fast as you can (remembering that it’s still a marathon) in as focused a way as you can. I read the first edition, and this second edition is even better.

Ash has mastered the science (and art!) of honing in on what matters. Running Lean is the guidebook for that. It’s definitely worth reading.

When Ash was working on the 2nd edition, he asked me to review the book and submit a quote for it. Here’s what I wrote:

Running Lean is THE practical guide for understanding and implementing Lean Startup. It’s clear, well-organized, and detailed. Ash doesn’t guarantee success, or claim Lean is perfect (it’s not!), but he’ll help you avoid the most common and painful pitfalls of running a startup. If you want to be systematic, rigorous, and honest in your startup efforts, as opposed to throwing a Hail Mary pass while blindfolded in space, read and use Running Lean.

Ash continues to create value from and beyond the book on his blog at ashmaurya.com and by extension through his company Spark59. Check both resources out, and the book … and enjoy!


Why There’s No Space for Competition on a Lean Canvas

Why isn’t there a box for Competition on the Lean Canvas?

Someone asked me this question recently, and it’s a good one. Understanding your competition is important, but ultimately it should have very little impact on what you do. For starters, your biggest competitor is likely not another company, but in fact the most difficult alternative to overcome: doing nothing. Getting people to change from a “good enough” option or from not doing anything at all is often a Herculean task. And we haven’t even started talking about competition.

Investors like to know about competitors. They like to see that you understand the landscape and have the appropriate industry knowledge to navigate through and around them. But you’re not building a company to raise funding (it’s not a goal, just a part of the process, potentially…)

The Lean Canvas is designed to be testable. You can take any section of it and test your assumptions through experimentation. Maybe you’re pointing your solution at the wrong target market, or maybe you have the wrong go-to-market strategy. You put in your assumptions, figure out how to test them and gather results. Then rinse and repeat through the riskiest to least riskiest aspects of your business.

Competition really doesn’t play a role in there. You can’t run experiments with the competition. You can’t even learn that much from what they’re doing (just as they can’t learn much from you) because all you see is what they’re showing you on the outside. You don’t really know what they’ve learned behind the scenes. In fact, that’s one of your competitive advantages. While it’s safe to assume that more mature competitors know more than you, it’s also very likely that they’re not going about things as rigorously as they could. Lean Canvas (and Lean Startup) can be a competitive advantage if you can test and learn your way through it incredibly quickly. Younger competitors that are “behind you” may try and copy you, but who cares? What they see is three steps behind where you already are based on what you’ve learned.

Ultimately it’s up to you to find a competitive differentiator that truly matters. If you can’t, you’re finished. And digging deep into competitors won’t help you discover a competitive advantage either; talking to and working with customers will.

You shouldn’t ignore competitors. It’s important that you know what’s going on in your market – that you have your “finger on the pulse” – but initially as you’re validating (or invalidating) your business, don’t get caught obsessing over them. You’ll get overwhelmed. Instead, build your startup with all the rigor and speed you can muster. Leverage tools like Lean Canvas (and models like Lean Startup) to ingrain an insane amount of focus and intensity. You don’t win by mindlessly reacting to what competitors are doing (or what you think they’re doing). You can’t succeed by differentiating yourself without proof that the differentiation actually matters to customers. Spend too much time watching competitors and you’ll get absolutely nothing of value done.


Ben Yoskovitz
I'm VP Product at GoInstant.

I'm also a Founding Partner at Year One Labs, an early stage accelerator in Montreal. Previously I founded Standout Jobs (and sold it). MY BIO >>

Follow this blog via email

Advertisement
Startup Resources
A collection of posts I've written over time on key subjects:

Find Stuff
My Photos