Despite its importance, product strategy is often not practiced effectively. One key issue is that strategy and execution are frequently misaligned. To tackle this, I created an iterative process called the product strategy cycle. This cycle systematically connects strategy and execution, ensuring strategy guides execution while insights from tactical work evolve the strategy. This article explains how to use the cycle to align product strategy, product roadmap, KPIs, product backlog, and development work, and explores the role stakeholders and development team members play in strategic product decisions.
Traditionally, strategy and execution are seen as separate tasks handled by different people. For instance, a product manager might set the product strategy, while development teams execute it. However, in the face of innovation, change, and risk, this approach is ineffective. Strategy and execution need to be closely connected, where strategy guides execution, and execution informs strategy adjustments.
Based on this insight, I developed the product strategy cycle. This iterative process links the product strategy with the product roadmap, product backlog, development work, and KPIs. The cycle starts with creating a new strategy, either for a new product or an existing one needing a new approach to extend its life cycle. An effective product strategy should define the target group, value proposition, key features, and business goals.
Before moving forward, validate your strategy and address key risks and assumptions to maximize success chances. This involves identifying potential issues, such as an overly large market segment, a weak value proposition, or unfeasible business goals. Addressing these risks iteratively is crucial, as detailed in my book, Strategize.
Once confident in your strategy, derive a product roadmap from it. This roadmap should outline how to implement the strategy and specify the intended benefits or outcomes over the next year. These outcomes, or product goals, might include acquiring new users, increasing engagement, eliminating technical debt, or generating revenue.
With an actionable roadmap, proceed to stock your product backlog. Choose the next product goal from the roadmap, determine the necessary features to achieve it, and document them in the backlog. Create enough ready backlog items to start the upcoming sprint and develop the product. As this process is iterative, a small cycle between “Product Backlog” and “Product” indicates ongoing adjustments.
After development begins, measure progress with tools like a release burndown chart. Once a product version is released, use KPIs to assess performance, ensuring the product goal is met and evaluating metrics like engagement, retention, quality, team motivation, and revenue.
Use KPI data and development progress to review and adjust the product strategy and roadmap as needed. This might involve small tweaks or significant pivots, such as YouTube’s shift from a dating site to a video-sharing platform. Completing the cycle starts another iteration.
Systematically connecting strategy and execution is essential for effective product strategy but isn’t enough alone. Stakeholders and development teams must buy into and be willing to implement strategic decisions. Involve key stakeholders and team representatives in creating and validating the strategy, developing the roadmap, tracking KPIs, and updating plans. This participation increases understanding, support, and leverages their expertise for better decision-making.
Engage stakeholders and team members through collaborative workshops, either online or in-person. A Scrum Master or experienced facilitator can help prepare and conduct these sessions, ensuring inclusive and balanced participation. This collaboration central to the strategy cycle enhances alignment and execution.
“All models are wrong, but some are useful,” as George Box noted. This process simplifies reality and may overlook details. In practice, continuously measure development progress from the start. After two to three sprints, evaluate if product goals are achievable on time and budget; adjust the roadmap and strategy as needed.
Additionally, engage in continuous strategizing by regularly monitoring trends and competition. Dedicate at least half a day each week to discovery and strategy work. This proactive approach helps identify threats and opportunities early, allowing timely responses.
Learn More
– Roman’s Training Course: Product Strategy & Roadmap
– Roman’s Book: Strategize, 2nd Edition
– Establishing an Effective Product Strategy Process
Attend Roman’s Training
– Product Leadership Training
– Product Strategy & Roadmap Training
– In-house Training
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