Establishing an Effective Product Strategy Process
Creating a successful product isn’t about luck or sheer effort. It starts with making the right strategic choices. As product professionals, we often get so absorbed in day-to-day tasks—like responding to urgent support requests or writing new user stories—that we lose sight of the bigger picture. In the worst-case scenario, neglecting strategic work can lead to an unsuccessful product. To prevent this, it’s crucial to establish an effective product strategy process.
Why a Product Strategy Process Matters
An efficient product strategy process ensures that you always have a valid product strategy and actionable product roadmap available. The product strategy outlines how to achieve a visionary goal, including the product’s value proposition, market, key features, and business goals. The roadmap details how this strategy is executed with dates, measurable goals, and selected features, providing context for making tactical decisions like prioritizing and managing the product backlog.
Maintaining a valid strategy and actionable roadmap requires both timeboxed and continuous strategizing approaches.
Timeboxed Strategizing
When creating a new product or making significant changes to an existing one, dedicate a specific period for strategizing. This involves activities like observing and interviewing users, testing prototypes, and validating pricing assumptions. Start with a one-month timebox and hold weekly review meetings to assess progress and decide on the next steps.
Use a collaborative approach by forming a product team that includes development team members (like a UX designer, developer, and tester), key stakeholders (such as a sales rep, marketer, and support person), and a Scrum Master. This collaboration leverages collective knowledge and creativity, builds a shared understanding, and ensures strong buy-in, reducing the risk of misunderstandings or lack of support.
Lead the strategizing effort by making final decisions if consensus can’t be reached. Ensure that the people involved in strategizing continue participating as the focus shifts to development and delivery.
Continuous Strategizing
Creating a product strategy isn’t a one-time task. Regularly assess if the strategy is still effective because markets and technologies evolve, and new competitors arise. Here’s how:
– Review Product Performance: Use key performance indicators to analyze product metrics. Look for trends and draw conclusions on how to improve performance.
– Spot Market Trends: Keep an eye on new developments like technology, regulations, and social changes. Participate in trade shows, conferences, and online communities to stay informed.
– Monitor Competitors: Track competitors’ product launches and market changes. Job postings and product reviews can give insights into their plans and product differentiation.
– Internal Developments: Stay updated on your company’s business strategy and stakeholder engagement. Recognize changes that could impact your product.
To carry out this continuous work effectively, block at least one hour daily for strategic tasks and schedule quarterly collaborative strategy reviews. These reviews involve the same team members who helped create the current strategy, leveraging their collective knowledge and ensuring alignment.
If urgent developments arise, don’t wait for the next scheduled review—address them immediately by holding a collaborative session as soon as possible.
Making It Stick
Many organizations excel tactically but struggle with systematic product strategy creation and adaptation. Common issues include lack of empowerment and overloaded product people. Not all companies empower product professionals to make strategic decisions. If this is your case, lobby for management support and build your strategy knowledge to earn decision-makers’ trust.
Also, avoid taking on too many roles. Product people should focus on their primary responsibilities and not get bogged down with tasks like Scrum Master duties. Prioritize strategy work to ensure you have enough time for this crucial element.
Learn More
Explore further:
– Roman’s Training Course: Product Strategy & Roadmap
– Roman’s Book: Strategize, 2nd Edition
– What Exactly is a Product Strategy? Read the article for more insights.
By following these principles, you can establish a robust product strategy process that drives your product’s success.