How to develop a winning product strategy

Combining insights from customers, the market and competition with your vision is the first step in delivering a winning product strategy. 

To achieve business objectives, a company needs to make sound product strategy choices. As part of this process, you need to choose which products and capabilities to develop, which market segments to target, how to differentiate, how to price, how to position, and how to communicate. 

Who owns product strategy? 

As product leaders, we are the custodians of the product strategy. Defining these, articulating and ensuring that all stakeholders know what it means and how to make decisions and take actions accordingly is one of our critical responsibilities. Whether we’re in startups, scale-ups or enterprise organisations, without a crystal clear understanding of product strategy, the chance of commercial success is slim. 

A business can't depend on luck to deliver the outcomes it demands from product development. It is not uncommon for businesses to not know what their strategy is, especially when they have many loud and highly paid individuals trying to take control of the company. There is chaos, conflict, and a stunted ability to create categories-defining products as a result. This is especially the case when you have general managers and CEOs who are bent on pleasing short-sighted investors by focusing on short-term outcomes, rather than proactively planning and strategising for long-term success and sustainability of the business. 

A company with such ambiguous conditions often doesn’t have a true vision or fully articulated and understood business strategy. This results in stop-starting initiatives, little of long-term value being delivered, low motivation levels, and top talent leaving. 

To develop and maintain a successful product strategy, as product leaders we need to:

• Analyze the dynamics and trends of your market and consumers in short, medium and long term
• Compare market offerings and map out competitors
• Be aware of the latest technological trends
• Identify the drivers and financial factors that affect your customers and target industries
• Determine what strategic options are most critical and in what priority
• Ensure that all levels of the organization engage with the product strategy
• Be committed to the long-term strategy of the product

What does a successful product strategy deliver? 

A great strategy serves as a playbook for everyone in the business. Layout a series of simple steps that draw a logical route to help you make decisions to achieve the organisations objectives. It serves to : 

• Provides your organisation and in-particular your product teams with guidance on how to achieve the overarching business goals
• Takes into account the market dynamics that will impact your product offerings, including competitive dynamics and customer trends
• Clearly spells out what makes your product unique and why customers may choose to buy it 
• Takes into account market challenges and assists in streamlining decisions
• Establishes clear, measurable metrics for tracking progress
• Develops recommendations that are aligned with the interests of key stakeholders

How do you develop a product strategy? 

A product strategy has two major components: the 'what' and the 'how'. People are people, so when asked to jump from the 'what' to the 'how', they'll come up with a million different ways, no matter how elaborate, theoretical, or sweeping the plan is. It is therefore impossible to deliver the strategy. So while the 'what' is essential, without ‘how’ it will be achieved and ‘how to determine when it is achieved’ the product strategy will fall apart. In developing a product strategy make sure you :   

• Identify key stakeholders to involve in the formulation of the strategy, this must include all C-Suite executives, GMs and Business Unit Managers
• Engage people with diverse perspectives and seek their input including influencers and gatekeepers both internally and externally, consultants, analysts and key account
• Consider what investors want and what competitors are doing
• Communicate frequently with stakeholders throughout product strategy development, invite them to participate, and let them determine the course of action
• Find a way to tell a good story that will energize and inspire people
• Having outlined the details, shift your focus to execution. Get all stakeholders to help you translate strategy into action.

Summary 

Product without strategy is a game of lottery. You can play, but chances are you won’t win. Only by approaching product through a well-thought-out strategy can you equip your organisation for success. If you don’t have a defined product strategy that articulates a clear understanding of customers, market and competition, as well as your company’s objectives and vision then prepare to fail. 

Three good resources : 

There is a lot of advice out there! Plenty of books and frameworks - so here’s 3 I’d recommend if you are a product leader on the path to building a sound product strategy and are looking for easy to fill in frameworks ;) (I’m not affiliated with any of these btw)