Crafting a Winning Product Strategy: A Framework for 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 Limitations of the Traditional Product Strategy Pyramid

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 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.

Each level should be concise (1-3 sentences), bold, positive, and inspiring.

// Example Purpose Statement:
"To empower individuals and businesses through innovative technology solutions."

// Example Mission Statement:
"To deliver exceptional customer experiences through user-centered design and development."

// Example Vision Statement:
"To become the leading provider of AI-powered software solutions globally."

// Example Strategy Statement:
"Expand our product offerings to include machine learning capabilities."

// Example Objectives:
"- Increase customer acquisition by 20% within the next quarter
- Reduce average response time to under 2 seconds"

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.