How I wish we had been exposed to the concepts in The Lean Startup, by Eric Ries, when we were valiantly and creatively pulling numbers out of thin about the number of customers we would acquire. Rate of adoption? Like wild-fire! If, that is, we could ever finish the beta version. Perhaps if we had spent less time burnishing the beastly business plan, and more time figuring out how to be lean, we would not have perfected the software to the point of engendering mutual murderous fantasies among the co-founders, and instead might have quickly generated some really useful customer feedback.

The basic premise of the book is that startups can be systematically managed with lean methodologies, including rapid iteration, data-driven decision-making, and early customer involvement. Five fundamental principles guide the process:

• Entrepreneurs are everywhere – this lean approach works in any setting, from garages to cubicles at General Monolithic Corp.
• Entrepreneurship is management – leave the “just go for it” mentality on the open range.
• Validated learning – startups exist to learn how to build sustainable ventures.
• Build-Measure-Learn – processes should be geared to accelerate feedback loops.
• Innovation accounting – entrepreneurs must be held accountable, but make sure the measures demonstrate cause and effect.

The book discusses how using the basic tenet of lean – separating and eliminating efforts that do not result in value for the end customer – can dramatically improve a startup’s chance of success. I would, however, add one more element to the book’s list of lean practices: deliberately reducing the “8th waste.” The 8th waste is lack of employee engagement. Just because an organization is involved in innovation and startup activities, does not mean there is excellent communication, and one of the biggest reasons for startup failure is conflict among the founders. Applying a systematic approach for truly effective communication can multiply the effect of all the other lean efforts.