Product strategy for beginners: Part 1
Getting started with a product strategy can be challenging because there’s no universal template to follow. This guide aims to help you understand the process and why it can be difficult to start.
Life without a product strategy
If you’ve worked with products for a while, you’ve likely seen the impact of having—or not having—a product strategy. Without a strategy, you can manage as long as things remain small and stable. However, as your product grows in complexity, gains a larger audience, or faces significant competition, making quick and effective decisions becomes tougher. A product strategy helps teams make cohesive decisions, aligning with the company’s goals. It also ensures long-term sustainability by preventing a reactive mode of dealing with short-term opportunities or threats.
The challenge with product strategy is its complexity. While there’s a lot of information out there, much of it is vague. This article aims to provide clear, hands-on guidance based on practical and real-world experiences, informed by thought leaders like Marty Cagan, Melissa Perri, and others.
The five-step model to create a product strategy
Before diving into the steps, it’s essential to understand how product strategy fits within the broader context of company management tools, who benefits from it, and when it’s most needed.
1. Determine if you have the prerequisites: Make sure you have a company strategy that includes vision, mission, objectives, and values.
2. Create foundational elements: Develop a product vision by leveraging customer and internal insights, as well as competitor analysis.
3. Establish strategic objectives: Define objectives and key results (OKRs) for your team.
4. Focus: Prioritize what’s most important.
5. Implement: Put the strategy into practice.
Roadmaps vs. product strategy
Product strategy is crucial for managing products, regardless of whether you have a formal strategy. Traditionally, product management relied heavily on roadmaps, which helped various stakeholders plan based on expected product developments. However, roadmaps don’t align well with Agile development due to the unpredictability of long-term planning. While roadmaps can aid communication, they’re not enough for fast-moving and autonomous teams. Instead, flexible management solutions like product strategy are more effective.
Who benefits from product strategy?
Anyone involved in product decisions, including developers, designers, and managers, should understand the basics of product strategy. The ideal setting for product strategy is within Agile organizations with empowered teams. Unlike traditional management models, product strategy focuses on high-level clarity rather than detailed specifications.
Who should participate in the strategy process?
Creating a product strategy requires input from multiple functions, including design, technology, customer support, sales, and marketing. This collaborative approach ensures that all aspects of the product and business are considered.
When is a product strategy necessary?
Not all companies need a separate product strategy. Small companies with a single product or those without a fixed value proposition may not require one. In contrast, larger companies with diverse products usually benefit from distinct strategies for each product. The need for a product strategy depends on company size and complexity.
Understanding product strategy
Marty Cagan defines product strategy as a plan to make the product vision happen. While there’s no single definition, the specifics of product strategy vary by organizational context. Different companies and products require different strategies, which is why examples can differ widely.
With this foundational understanding, you’re ready to explore the five steps to engaging with product strategy, which will be detailed in the next part of this article.