Page 158 - 6 Secrets to Startup Success

Startup Agility 137

Figure 6-2. The basic cycle of iteration.

IDEA

EVALUATION ACTION

RESULT

(Data)

Note that the iteration cycle echoes the core pattern of the passion
trap, as described in Chapter Two, providing clues as to why highly
enthusiastic founders often fail to effectively iterate. First, founders
fall in love with their original idea and strive to perfect it, putting most
of their resources into the idea step. “We know this is a great idea,”
the thinking goes, “Why do we need a trial or a proof-of-concept?
Let’s put smart people and plenty of money behind it, design it just
right, and go to market with a bang.”

Second, if iteration does occur, the founding team’s commitment
to their solution can lead to a weak evaluation step in which founders
show little interest in unedited customer feedback and deny or ra-
tionalize negative feedback received. For these reasons, a vital distinc-
tion exists between superficial iteration, going through the motions
with little to show for it, and healthy iteration, which is like the shedding
of a skin. Dead ideas and unworkable strategies are cast aside to make
way for the stronger core. As Ries observes, “within every bad idea is
a kernel of truth.”8 Successful iteration discovers this truth.

CYCLES OF ITERATION OCCUR AT MULTIPLE LEVELS

An important principle of healthy startup iteration is that it occurs
at many levels, beyond simply cranking out new features or products.
By “levels,” I’m referring to the relative scope and scale of a potential
change. At the fast-cycle, narrow end of the spectrum are feature-level
iterations, adding wrinkles to existing offerings. These can include
changes in functionality, size, color, and many other aspects of a prod-

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