An M3 Weekly Book Review

In an era of rapid technological change and globalization, uncertainty is a defining feature of the business landscape, requiring increased innovation and adaptability from entrepreneurs forming new enterprises. For leaders of missional enterprises committed to a triple bottom line, this need is even more pronounced. The Lean Startup by Eric Ries provides a framework and toolset to help entrepreneurs navigate these challenges.

Since its publication in 2011, The Lean Startup has become a widely regarded guide for launching ventures in uncertain conditions. Ries defines a startup as a “human institution designed to create a new product or service under conditions of extreme uncertainty.” While the term “startup” is often used to refer specifically to new and small businesses, Ries’ definition clarifies that the distinctive factors are the new product (not necessarily the company) and the highly uncertain conditions. While many companies implementing The Lean Startup are small businesses, large corporations such as GE and TurboTax have also applied lean methodologies in internal innovation teams.

“Build-Measure-Learn”

Ries’ concept of a “lean startup” emphasizes experimentation, validated learning, and iterative design as essential practices. Instead of relying on rigid plans, he advocates testing assumptions through small, controlled experiments. This “build-measure-learn” cycle is central to the methodology, enabling businesses to refine their offerings based on real-world feedback rather than theoretical models.

One of the most valuable ideas in the book is the focus on a “minimum viable product” (MVP). Instead of perfecting an idea in isolation, Ries advocates launching a simplified version of the product to gather insights directly from customers. This approach is designed not only to minimize waste but also to foster a culture of listening, learning, and responding — a mindset that aligns well with missional enterprises’ focus on serving others effectively.

Measuring What Matters

As a tool to improve entrepreneurial outcomes, Ries introduces innovation accounting, an approach to financial metrics designed for startups. Traditional financial measures often fail to capture the progress of an early-stage venture, so innovation accounting focuses on assessing whether the startup’s core hypotheses are being validated.

The book also discusses the importance of pivoting—making strategic adjustments when initial assumptions prove incorrect. For missional leaders, this principle underscores the humility and wisdom required to discern God’s direction in both success and setbacks.

Lean Startup and Missional Enterprise

Since many missional enterprises are startups, the Lean Startup approach has the potential to be beneficial to the leaders of these companies. At the same time, several issues warrant consideration. First, the methodology presupposes a relatively high degree of flexibility regarding the customers and products for the new initiative, since these factors are subject to revision as the entrepreneur builds, tests, and learns to validate the hypotheses of the venture. Since missional entrepreneurs generally have specific social and spiritual focuses for transformation, the practices of The Lean Startup need to be adjusted to account for these factors.

In addition, the Lean Startup method may not be the best fit for every industry. Enterprises in heavily regulated or slow-moving industries might need to adapt Ries’ strategies to fit their context. Business leaders operating in markets and industries less affected by uncertainty may find traditional design and planning disciplines more applicable than the Lean Startup approach. In fact, with a decade having passed since its publication, entrepreneurial thinkers are assessing both the strengths and weaknesses of the Lean Startup method. A Harvard Business Review article entitled “What the Lean Startup Method Gets Right and Wrong” cites both evidence of the value of rigorous experimentation and the weakness of de-emphasizing great ideas and disruptive innovation.

Despite these caveats, The Lean Startup is an excellent resource for entrepreneurs at the beginning stages of a business or those looking to refine an existing venture in the context of uncertain conditions. As leaders of missional enterprises who value stewardship and intentionality, its principles are worth considering to help maximize impact while minimizing wasted resources. We have seen firsthand how these principles benefit the missional enterprises we support, and we recommend this book1 for leaders looking to innovate more effectively in their work.

Verse of the Week

“The heart of man plans his way, but the Lord establishes his steps.” Proverbs 16:9

As missional entrepreneurs, let’s take smart steps of testing, learning, and adapting — while we “lean” on God to guide the journey (pun intended).