Document the Product Strategy
Documenting the Product Strategy involves creating a comprehensive plan that outlines the product’s target market, leverages internal capabilities, and communicates its value proposition. This strategic document serves as a roadmap for where the product will compete (where to play) and how it will achieve success (how to win), while also defining areas to avoid (where not to play) and strategies that will not lead to success (how not to win).
Goal
The goal is to provide a clear, actionable strategy that guides product development and market positioning decisions, ensuring that all efforts are aligned with the organisation’s strengths and market opportunities, and focused on delivering unique value to the target audience.
Context
Stream Teams need to decide what opportunities to pursue and how to position their product in the market. There are always more opportunities than resources, so it is essential to focus on the most promising areas and develop a strategy that leverages the organisation's unique strengths. This requires a deep understanding of the target market, the organisation's internal capabilities, and the competitive landscape.
Sources of Power
| Source of Power | Description |
|---|---|
| Leverage | Identifying and utilising points where small focused efforts can lead to significant impacts. |
| Proximate Objectives | Setting achievable intermediate goals that are within your grasp, which cumulatively lead to long-term success. |
| Chain-Link Systems | Recognising that the strength of a system (or organisation) is determined by its weakest link, and strategising to strengthen these points. |
| Design | Crafting strategies that cohesively align actions, policies, and resources to achieve a set of objectives. |
| Focus | Concentrating resources and efforts on a narrow objective or market segment to achieve a competitive advantage. |
| Growth | Leveraging opportunities for growth as a means to expand capabilities and reach, often through innovation or scaling operations. |
| Advantage | Identifying and building upon unique strengths or assets that competitors cannot easily replicate or counter. |
| Dynamics | Anticipating and responding to industry changes, competitor moves, and market trends to position the organisation advantageously. |
| Inertia | Exploiting competitors' resistance to change, enabling quicker adaptation and seizing opportunities that others are slow to address. |
| Entropy | Managing and reducing internal disorder or complexity to improve efficiency and focus on strategic priorities. |
Inputs
| Artifact | Description |
|---|---|
| Current State Diagnosis | An assessment of the challenges that prevent a product from achieving its goals. |
| Identified Target Market | A detailed description of the chosen target market segments, including demographic, psychographic, and behavioural characteristics. |
| How to Win Insights | Insights into how the organisation can leverage its unique capabilities to gain a competitive advantage. |
| Value Proposition Statement | A concise statement that clearly articulates the unique value the product offers to its customers. |
Outputs
| Artifact | Description | Benefits |
|---|---|---|
| Product Strategy | A comprehensive document outlining the product’s target market, value proposition, strategic objectives, and guidelines on where not to play and how not to win. | Ensures strategic coherence and focus, guiding product development and marketing efforts effectively. |
| Go-to-Market Strategy | A detailed plan outlining how the product will be launched, promoted, and distributed to the target market. | Ensures a successful product launch and effective market penetration. |
| Growth Strategy | A plan detailing how the product will achieve growth targets, including customer acquisition, retention, and expansion strategies. | Guides efforts to scale the product and increase market share. |
| Sales Strategy | A plan outlining how the product will be sold, including pricing, distribution, and sales channels. | Ensures effective sales execution and revenue generation. |
| Support Strategy | A plan outlining how the product will be supported post-launch, including customer service, technical support, and community engagement. | Ensures customer satisfaction and loyalty, leading to long-term success. |
Anti-patterns
- Overgeneralisation: Creating a strategy that is too broad or vague, lacking specific focus areas and actionable guidance.
- Lack of Exclusivity: Failing to clearly define where not to play and how not to win, resulting in dilution of efforts and resources across non-strategic areas.