Public Pivot Framework
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Eric Ries, author of The Lean Startup, has a specific framework for how companies should pivot and communicate changes. Here's his approach to executing successful pivots.
Core Philosophy
- Take old assumptions/ideas to the "town square" and publicly execute them
- Must be explicit about killing old assumptions to avoid team confusion
- Avoid blending old and new ideas together gradually
Why Public Execution Works
- Creates clear break between old and new direction
- Prevents team confusion about priorities
- Stops people from trying to merge old/new ideas
- Allows clean slate for new direction
Key Elements of the Framework
- Explicitly state what assumptions were wrong
- Explain what was learned through testing/experience
- Clearly communicate what new direction will be
- Make clean break from old way of thinking
Example: Instagram's Pivot
- Publicly abandoned location-based check-ins
- Declared "location means nothing now"
- Clearly stated new focus: photos with filters
- Created clean break from old product (Burbn)
- Launched new product with new name and identity
Common Pivot Mistakes
- Being afraid to admit wrong assumptions
- Trying to gradually blend changes
- Keeping team half-confused about direction
- Not making explicit declaration of change
- Attempting to bolt new ideas onto old framework
Benefits of Public Execution
- Team gets clear direction
- Everyone understands what's changing
- Prevents half-measures and confusion
- Creates momentum for new direction
- Allows full commitment to new path
The key insight is that most CEOs are too afraid to publicly admit being wrong, leading to confusing half-pivots. A clean break with clear communication is essential for successful change.
31:00 - 33:23
Full video: 51:14SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.