Crafting a Winning Product Strategy: A Framework for Success
Are you a product leader seeking to inspire and guide your team, or a product manager looking to effectively evangelize your plan? Perhaps you’re a founder or entrepreneur trying to establish a solid foundation for future decisions. Whatever your role, you’re not alone in searching for a clear and effective product strategy.
In this article, we’ll explore the ins and outs of product strategy, debunk common myths, and introduce a practical framework to help you achieve success.
What is Product Strategy?
A product strategy is a dynamic decision-making framework that guides your business model, teams, individuals, and entire organizational culture toward long-term success. It’s a high-level purpose that rarely changes, yet narrows down to day-to-day agile execution, which can change frequently. A good product strategy motivates and provides clarity for teams.
The Traditional Product Strategy Pyramid: A Flawed Model
The traditional pyramid model has several limitations. It starts at the bottom, not the top, and assumes vision and mission are the most important aspects. However, isn’t the foundation of a pyramid the most critical part? Why would roadmapping be considered a foundation or starting point? We’ve learned that roadmaps and tactics are not a solid foundation for product or company strategy.
The Product Strategy Funnel: A Better Approach
A sound product strategy resembles a funnel, guiding the team step by step with increasing clarity at each stage. It’s about knowing what not to do, rather than doing things. This approach is inspired by Martin Eriksson’s decision stack model, where familiar elements like product vision and objectives help narrow down choices. As Steve Jobs once said, “Innovation is saying no to 1,000 things.”
A Modern Product Strategy Framework for Agile Teams
Our framework consists of six levels: purpose, mission, vision, strategy, objectives, and tactics. Each level should be concise (1-3 sentences), bold, positive, and inspiring. This framework will help you guide your team to success.
- Purpose Statement: The highest-level “why” of the business. It should be broad enough to separate itself from specific “whats” but narrow enough to reflect the company’s identity.
- Mission Statement: The highest-level “how” of the business. It may never change, but it could adapt to significant customer needs or technology changes.
- Vision Statement: The highest-level “what” of the business. It should be aspirational and provide ongoing direction and motivation for the team.
- Strategy Statement: A summation of objectives, providing a clear direction for the team.
- Objectives: Measurable and thoughtful goals that connect to the product vision, mission, and purpose.
- Tactics: Day-to-day agile activities that deliver valuable software and features.
Benefits of the Product Strategy Framework
This framework promotes:
- Focus: Cutting off options and narrowing choices to deliver value to customers without distractions.
- Modularity: Each piece of the strategy model serves a specific purpose and can be used in different presentations or business cases.
- Concision: Statements should be brief and memorable, allowing teams to recall and recite them easily.
- Definition of Purpose: Separating purpose from mission and vision, providing a clear direction for the company.
By adopting this framework, you’ll be able to create a winning product strategy that guides your team to success. Remember, it’s about knowing what not to do, rather than doing things. Focus on delivering value to customers, and you’ll be on your way to building something that truly matters.