PIVOTING

Nathan Furr

BUSINESS MODEL COMPETITION

The BMC is NOT a Business Plan Competition

What are we rewarding? The process Testing assumptions Making needed changes Validation from customers

What are we NOT rewarding? Sales pitch about the product Massive but un-validated markets Hot air claims Fancy teams and advisors

The Three Keys to the BMC

1. Identify assumptions
Use canvas scorecard

2. Test assumptions with customers 3. Pivot and tell the story

Surprising Examples:

How Will We Know

PIVOTS

What Is a Pivot?

Pivots
Adjust to Uncertainty Correct Failure Leverage Learning Feel Good

Are All Pivots Good?

Research Project
Multi-case study 10 innovative companies over 1 year Successive interviews Convenience sample of corporate innovators

Dan and the Task Management Dilemma

Pivot Cycles
2-3 months cycles Paypal, Intuit, Amazon, Mondelez Overcome some initial skepticism Recognize true patterns E.g.: slow-blade theory

Pivot Broad Early

Focus matters Go broad first Try parallel

Look for Pivot Takeoff

Dont Stop Pivoting

BACK TO THE BMC

How Will We Know