The Startup Way: How Modern Companies Use Entrepreneurial Management to Transform Culture and Drive Long-Term Growth

by Eric Ries

As one team member summarized the value proposition, “What if we approached the customer and said, ‘Instead of waiting ten years for a turbine that’s 5 percent more efficient, what if we sold you one right now that is pretty good, the added value being that every year from now on, we’ll offer you an upgrade to replace the blades and fans, and tune the turbine to increase efficiency,’ ” the team brainstormed. “ ‘You’ll have the option, once a year, for us to install these parts, and we’ll have a pre-existing contract that says we get paid for every point of efficiency we drive with each new upgrade.’ ” We took this plan to the executives, who were excited about it. It offered a dramatically faster cycle-to-market time, and every iteration would provide greater efficiency.