The Influence of the Lean Methodology on the Management of a Startup: a Case Study

Juliana Arias Garrido; Nicole Cerci Mostagi

DOI: 10.22167/2675-6528-202603079

Article derived from a Final Course Work (TCC), with content based on the student’s original work and adapted to the editorial format of the E&S Magazine with the support of the ResumeAI tool, an artificial intelligence solution developed by Instituto Pecege for textual synthesis and organization.

Abstract

Startups operate in environments of high uncertainty, often managed by entrepreneurs without prior management training. The Lean Startup methodology emerged as an approach to assist business development in these contexts, but its contribution to the management of lean companies, led by a single entrepreneur without prior administrative knowledge, was not yet clear. The study analyzed the effects of the Lean methodology on the management and launch of new products in a technology startup, Tech EF. A single, mixed-methods case study was adopted, combining qualitative analysis, through a semi-structured interview with the company’s founder, and descriptive quantitative analysis of organizational indicators, comparing the periods before and after the entrepreneur’s training in the Lean methodology. The results revealed changes in the company’s management, notably in the organization of decision-making, resource utilization, and demand prioritization based on market validation. An increase was also observed in the number of features developed, the diversification of customer types served, and the growth in the number of customers. These findings suggested that the Lean methodology guided decision-making, new product development, and management organization, contributing to market adaptation and the startup’s growth over time.

Keywords: Innovation; Business models; MVP; Decision making.

1. Introduction

Startups are organizations characterized by operating in environments of high uncertainty, dedicated to creating innovative products or services that generate value (Ries, 2019). The business model of these companies is based on flexible hypotheses, with an initial focus on scalability and profit generation (Blanke and Dorf, 2014). Despite economic instabilities, the startup market in Latin America has shown continuous growth (FGV, 2022; Sling Hub, 2025), driven by innovations such as artificial intelligence.

In this expansion scenario, many professionals transition to entrepreneurship without prior management training (Ries, 2019). In Brazil, the profile of these entrepreneurs is heterogeneous, often acting individually and without prospects of hiring collaborators (Carvalho et al., 2018; Moreira et al., 2017; GEM, 2019). Managerial inexperience, individualized management, and errors in product launches in uncertain environments contribute to high failure rates. Research indicates that approximately 90% of startups cease operations in the first few years (SEBRAE, 2024), with about 25% going bankrupt in the first year and 50% in less than four years (Fundação Dom Cabral, 2012).

Faced with this reality, it becomes essential to adopt approaches that align with the particularities of startups, capable of guiding planning and promoting sustainable growth (Ries, 2019). The Lean Startup methodology emerges as a proposal to assist business development in contexts of uncertainty. It advocates a development model based on the elimination of waste, continuous experimentation, and customer interaction, aiming to create products more aligned with market demands (Ries, 2019). This approach seeks to balance the founder’s vision with the need for adaptation to market responses (Faria et al., 2021), as the absence of this balance can lead to failure due to investments in solutions without demand (Blanke and Eckhardt, 2023).

A Lean Startup has its roots in the principles of Toyota’s lean manufacturing, adapting ideas such as creativity, leveraging worker knowledge, and smaller batch production to the entrepreneurial context (Ries, 2019). Progress is measured by validated learning, and the methodology seeks to reduce uncertainty through experimentation and continuous learning, using development cycles to test hypotheses before large investments (Ries, 2019). One of the central mechanisms is the Minimum Viable Product (MVP), which allows for evaluating solutions with users and guiding future decisions. This approach has been applied in various sectors, resulting in improvements in operational efficiency, waste reduction, and better economic performance (Gupta et al., 2016; Kalendar et al., 2020; Kimsey et al., 2010; Fausto et al., 2023). However, a large part of the available evidence derives from prototypical projects or organizations with more structured teams (Sanz et al., 2024; Pires et al., 2022).

In this context, a gap emerges in the understanding of the effectiveness of the Lean methodology in specific scenarios, such as that of Brazilian entrepreneurs who start their businesses individually and without prior management experience, characterized by the absence of organizational support and the solitary conduction of the company in its initial years of operation. The company Tech EF, a technology startup, represents a relevant case for exploring this gap. From its creation until a few months before this study, Tech EF was managed exclusively by its founder, who had no prior experience in business management. In mid-2023, the CEO sought specific training in the Lean Startup methodology, which began to be gradually incorporated into the company’s management processes. Currently, the company maintains a lean organizational structure, composed of the founding partner and a partner responsible for the information technology area.

The uniqueness of the Tech EF case, with an entrepreneur with no prior experience leading the company independently for several years, justifies the relevance of this study for the literature on entrepreneurship and startup management, especially considering the high rates of company bankruptcy due to planning and management problems (Santos et al., 2023). Thus, the present study aims to analyze the effects of using the Lean Startup methodology on the management process and the launch of new products in a technology startup called Tech EF.

2. Material and Methods

The present study was characterized as a single case study, with a mixed research approach, combining qualitative and quantitative natures of the data. Descriptive research was adopted, whose objective was to portray the characteristics of a phenomenon, without researcher interference, as advocated by Prodanov and Freitas (2013). This methodological strategy was selected to analyze the effects of the Lean methodology on the management process and the launch of new products in a technology startup, Tech EF, aligning with the general objective of the study.

The unit of empirical analysis was the technology startup Tech EF, a fictitious name used to preserve the company’s identity. The object of study focused on the management and product development of this organization. The main participant in the research was the founder and CEO of Tech EF, a professional approximately 44 years old, graduated in Physical Education, with a master’s and doctorate in the field, who had no prior experience as an entrepreneur or business manager before founding the startup.

For the qualitative data collection, a semi-structured interview was used, composed of eleven open-ended questions. The interview script was developed with the purpose of addressing the specific objectives of the study, investigating the entrepreneur’s previous experience, the initial challenges in managing the startup, the adoption process of the Lean methodology, and the perceived effects on specific company processes. The themes and concepts that guided the development of the script were previously mapped and presented in the original TCC.

The interview was conducted in person with the founder of Tech EF. All answers were recorded and subsequently transcribed with the aid of the Samsung Voice Recorder application. After transcription, the final document containing the script and answers was sent to the interviewee, who expressed a favorable opinion regarding the fidelity and adequacy of the collected material, ensuring the integrity of the data for analysis.

For the collection of quantitative data, organizational indicators of Tech EF were considered, covering the period before and after the implementation of the Lean methodology by the entrepreneur, which occurred in mid-2023. The variables analyzed included the number and types of clients served, the number of clients who discontinued the use of the service, and the number of new functionalities developed and implemented in the Tech EF application over the years. This data was obtained from the company’s internal records.

The analysis of qualitative data was performed using the thematic coding and categorization method, as proposed by Creswell (2007). This process comprised four main stages: reading, organizing, and preparing the data; coding relevant words, phrases, and excerpts; categorizing the codes into analytical categories based on semantic, syntactic, lexical, and expressive criteria; and interpreting the results. The process was conducted manually, with the support of computational tools based on artificial intelligence, used as an auxiliary resource for organization and systematization.

The analysis of quantitative data employed descriptive statistics, following the guidelines of Field (2013). The purpose of this analysis was to organize, summarize, and present the data clearly and systematically, allowing for the identification of patterns, trends, and temporal variations. The data were analyzed and graphical representations were constructed using Microsoft Excel software, comparing the organizational indicators before and after the entrepreneur’s training in the Lean methodology.

Regarding ethical considerations, the interview script and the transcribed responses were sent to the interviewee, who validated the fidelity and adequacy of the material. As a methodological limitation, it is recognized that the single case study restricts the generalization of results to other startups with different contexts or entrepreneur profiles. The quantitative data, of a descriptive nature, did not allow for the establishment of cause-and-effect relationships, and the qualitative analysis was based on the perception of a single participant, which may limit the diversity of perspectives on the investigated phenomenon.

3. Results and Discussion

The data analysis revealed that the startup Tech EF, conceived in 2020 and commercially launched at the end of 2022, emerged from a demand identified in academic research in the areas of Physical Education and Motor Behavior. The company’s initial focus was the development of children’s motor skills, combating sedentary lifestyles and obesity in children. The proposed technological solution aimed to evaluate, monitor, and interpret variables of motor, physical, and attitudinal development in children, becoming a tool to support pedagogical decision-making and the planning of educational interventions, based on scientific evidence and tests in real school contexts.

The founder and CEO of Tech EF, a 44-year-old professional with a background in Physical Education (master’s and doctorate), had no prior experience in entrepreneurship or business management. This gap in managerial training was a central point, as, according to the entrepreneur himself, his academic background “didn’t help me much in the management process” and he “didn’t understand anything about that new world.” This account highlights a mismatch between a solid scientific foundation and the practical demands of managing a startup, corroborating studies that point to the insufficiency of traditional academic training in health and physical education to empower entrepreneurs (Moura, 2021; Oliveira et al., 2011; Souza, 2020).

In the early years, Tech EF’s management was marked by significant challenges, including fundraising, technological development, and a lack of strategic focus. The entrepreneur described this period as “very turbulent”, with decisions made in an unstructured manner that resulted in wasted time and financial resources, exemplified by the statement “I spent a lot of money and time where I shouldn’t have”. This reactive and poorly systematized management, with investments in solutions that were not “the soul of the system”, highlights the need for a method to avoid failure, as pointed out by the literature on startup bankruptcy (Santos et al., 2023).

The approach with the Lean Startup methodology occurred as a direct response to this scenario of instability and managerial disorganization. The entrepreneur realized that “he was unfocused and needed a methodology”, and that “everything was very guesswork”, which led him to seek specific training. This search for a structured approach, such as Lean Startup, reflects the need to organize managerial thinking and reduce dependence on trial-and-error decisions, especially in a context of uncertainty and limited resources, inherent characteristics of startups (Ries, 2019).

The incorporation of the Lean methodology into Tech EF’s management became more systematic from mid-2023, when the CEO sought specific training. A decisive moment for this transition was the company’s participation in a large-scale research project in Portugal, which provided greater contact with users and market feedback. This period offered the entrepreneur the necessary conditions to rethink and reorganize the management model, adopting principles such as experimentation, hypothesis validation, customer focus, and strategic flexibility (Ries, 2019).

Since adopting Lean, the company began to prioritize demands based on market validation, instead of automatically fulfilling all user requests. The entrepreneur emphasized the importance of “avoiding waste, testing quickly, listening to the market” and “not fulfilling all customer requests.” This shift reflects the core principle of the Lean methodology of avoiding the development of products or features without evidence of real demand, using market interaction to guide decisions on which solutions should be developed, aligning with the concept of validated learning (Ries, 2019).

The perceived impacts of the Lean methodology on the company’s management and processes were significant, being described as a turning point in the manager’s performance. Greater control was observed in resource utilization, the definition of clearer criteria for decision-making, and the continuous improvement of workflows. The practice of “doing MVP before investing time and money” and “only investing after validating in the market” became central, indicating that Lean Startup principles guided both strategic and operational decisions, reducing waste and increasing the chances of success for the developed solutions.

This change in the decision-making process was reflected in the development of new products, with the creation of relevant functionalities for users, such as performance comparison between classes, attendance tracking, and personalized tests per sport. The entrepreneur reported that, before adopting Lean, several functionalities were implemented with low usage and later discontinued, generating costs in time and money. The new approach, based on the build-measure-learn cycle (Ries, 2019), allowed testing solutions in simplified versions and incorporating them into the product only after market validation, optimizing resource use and alignment with real demands.

The quantitative analysis of the company’s performance indicators before and after the entrepreneur’s training in the Lean methodology revealed important trends. Regarding the total number of clients, an initial drop was observed shortly after the implementation of the Lean methodology, followed by notable growth in the year 2025. Although it is not possible to establish a direct cause-and-effect relationship, this dynamic suggests that the Lean methodology may have helped the company reorganize its processes and reduce waste during a period of lower client acquisition, contributing to its continuity and subsequent growth, in line with the validated learning strategy in low-customer phases (Ries, 2019).

The diversification of client types served was also evident. Initially, Tech EF primarily served schools, education secretariats, and non-governmental organizations. After implementing the Lean methodology, the company expanded its scope to include sports secretariats, clubs, sports institutions, and gyms. This expansion reflects an adaptation of the product to different application contexts and a pursuit of new market segments, which may be related to the development of new functionalities aligned with the needs of these audiences.

The number of new functionalities developed and implemented in the Tech EF application also showed growth over time, with a development peak observed at the end of 2024. This increase, combined with the entrepreneur’s report on the practice of “doing MVP before investing time and money,” suggests that the Lean methodology influenced not only the quantity but also the way product development was conducted. The adoption of testing, validation, and continuous learning may have driven the development of functionalities that added value, contributing to customer acquisition and retention (Dibie et al., 2019).

In summary, the entrepreneur’s approach to the Lean methodology was motivated by the insufficiency of their prior management training and the need to structure a decision-making process that was previously intuitive and generated waste. The implementation of Lean promoted significant changes in Tech EF’s management, notably in the organization of decision-making, the efficient use of resources, and the prioritization of demands based on market validation. The principles of the Lean methodology, such as the build-measure-learn cycle and the use of MVPs, directly influenced the development of new products, resulting in an increase in functionalities, customer diversification, and overall startup growth, indicating that the approach served as a guiding model for the company’s adaptation and growth in an uncertain environment.

4. Conclusion

The present study aimed to analyze the effects of using the Lean Startup methodology in the management process and the launch of new products in a technology startup, Tech EF. It was found that the founder’s managerial inexperience, combined with unstructured initial management and resource waste, motivated the search for a methodological approach. The incorporation of the Lean methodology, especially after the entrepreneur’s training and market contact, promoted a strategic reorientation. A change in decision-making was observed, which became guided by market validation and prioritization of demands, avoiding the development of features without real demand. This approach influenced the development of new products, resulting in an increase in features, diversification of customer types served, and growth in the number of startup customers over time. The Lean methodology, therefore, acted as a guiding model for the company’s adaptation to the market and its growth in an uncertain environment.

However, the study presents limitations inherent to its methodological design, characterized as a single case study. This approach restricts the generalization of results to other startups with different contexts, organizational structures, or entrepreneur profiles. Furthermore, the analyzed quantitative data are descriptive in nature, not allowing for the establishment of direct cause-and-effect relationships between the implementation of the Lean methodology and the company’s performance, given that external variables were not controlled. The qualitative analysis, based on the perception of a single participant, also limits the diversity of perspectives. For future studies, it is suggested to conduct research with a larger number of startups and longitudinal studies, in order to more precisely investigate the relationship between the adoption of the Lean methodology, the development of new products, and organizational performance indicators, such as growth, customer retention, and financial sustainability. This work reinforces the understanding of the Lean methodology not only as a product development tool but as a comprehensive management model for startups, especially those led by entrepreneurs with no prior administrative experience.

Bibliographic References

Blanke, S.; Dorf, B. 2014. Startup: Manual do Empreendedor: guia passo a passo para construir uma grande companhia. Alta Books Editora, Rio de Janeiro.

Fundação Getúlio Vargas – Escola de Administração de Empresas de São Paulo [FGV EAESP]. 2022. Pesquisa do Uso de TI no Brasil. Disponível em: <https://portal.fgv.br/noticias/pandemia-acelerou-processo-transformacao-digital-empresas-brasil-revela-pesquisa>. Acesso em: 16 out.2025.

Global Entrepreneurship Monitor Empreendedorismo no Brasil: 2019 \ Coordenação de Simara Maria de Souza Silveira Greco; diversos autores — Curitiba: IBQP, 2020. 200 p.: il.

Ries, E. 2019. A Startup Enxuta. Sextante, Rio de Janeiro, RJ, Brasil.

Sling Hub e Itau BBA Insights. 2025. Latam startup market 2024 in review. Disponível em: <https://slinghub.io/reports/report24>. Acesso em: 16 out. 2025.

Article originating from the Final Coursework of Specialization in Digital Business from the MBA USP/Esalq

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