The Theory behind the learning roadmaps method

Why Startups Still Fail: Learning from The Lean Startup and Beyond

By Dr Chloe Sharp & Jordan Dalladay, May 2024

Introduction: Persistent Challenges in Startup Ecosystems

Nearly 14 years after the publication of Eric Ries' "The Lean Startup," startups continue to struggle with familiar pitfalls. Ries introduced the build-measure-learn framework as a methodology for startups to iterate quickly and learn fast. This approach emphasises that there is always more unknown in the process of building a new product, especially regarding the needs and behaviours of the target market [1].

Despite the widespread adoption of these principles, a significant number of startups still fail due to the same critical issue: no market need. This finding has been consistently highlighted in analyses by CB Insights, which point to the lack of market demand as the primary reason for startup failures from 2014 to 2021 [2]. Other frequent reasons include poor product fit, incorrect pricing, ignoring customer feedback, and being outcompeted—issues that Ries' philosophy aims to address.

The Forgotten Element: Learning to Build the Right Product

Amidst the rush to develop and launch new products, vital insights seem to get lost. The crux of The Lean Startup's philosophy—continual learning—is often overshadowed by the urgency to build and scale. This oversight begs the question: Are startups forgetting the importance of learning what exactly needs to be built in their zeal to innovate?

Moreover, the intersection of disciplines like UX, product management, and innovation adds layers of complexity for startups trying to integrate various strategies without a clear understanding of their specific needs at different stages of growth. The challenge remains for startup founders to discern which tools are appropriate and when to apply them to identify and meet user and customer needs effectively.

Challenge: Rethinking Product Roadmaps

Traditional product roadmaps, often visualised as Kanban boards or Gantt charts, may inadvertently lead teams into a "building trap," where the focus shifts to delivering features rather than solving the core problems or fulfilling user needs. The building process, driven by immediate feedback from demos or testing sessions, might cause products to deviate from their intended purpose [3].

Peter Senge's Learning Organization Theory suggests that fostering a culture of continuous learning could make startups more resilient and innovative from the start [4]. Could the solution then be to prioritise learning over mere feature development? What if startups created roadmaps centred not on features but on learning goals, needs, and outcomes?

Provocation: Roadmapping Our Learning

Inspired by Teresa Torres's Opportunity-Solution Trees, which focus on identifying and testing opportunities to find the right solutions, perhaps startups should consider similar frameworks for learning. Rather than traditional roadmaps, these learning roadmaps would align research, experimentation, and testing activities closely with the broader product strategy, ensuring that every step in the product development process is informed by learning and adapting [5].

Practice: Achieving Minimum Viable Certainty

The art of product management is fundamentally about making informed decisions. The concept of "minimum viable certainty" involves understanding just enough about the problem, the target users, and the best approach to solve it, thereby minimising risks associated with feasibility, desirability, and viability. This approach would allow startups to manage risks better, avoid unnecessary feature creep, and ensure they meet their customers' needs effectively.

Conclusion: Building a Learning-Focused Startup Culture

Incorporating a learning-driven approach into the fabric of startup culture could be the key to mitigating risks and enhancing the chances of success. By prioritising learning and adapting over just building and launching, startups can navigate the complexities of market needs and user expectations more adeptly, leading to products that are not only innovative but also necessary.

This evolution in thinking from building to learning might just be what modern startups need to thrive in an ever-competitive landscape.

References:

  • Osterwalder, Alexander, and Yves Pigneur. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley, 2010.
  • Christensen, Clayton M., et al. "What Is Disruptive Innovation?". Harvard Business Review, December 2015.
  • Cooper, Robert G. "Winning at New Products: Creating Value Through Innovation". Basic Books, 2017.