The best Framework for Product Strategy

During the past few months, I have been thinking a lot about product strategy and how teams can create the one that helps them win.?

In order to guide your thinking process, I usually recommend using frameworks.?

Understanding how a product strategy fits into your organization’s larger picture is crucial before diving into the specifics.

When I meet with clients, they often say things like: “I want to make sure we are thinking strategically” “We are not strategic enough” “I want to create a strategic solution” so I often ask them to elaborate. How do they define strategy?

Every person defines strategy differently. If each team member defines strategy differently at its core, how can they build a product strategy?

So I will use the definition of strategy given by Harvard Business School Professor Michael Porter’s book Competitive Strategy[2]:

Strategy describes how a company creates a unique and valuable position through a set of differentiating actions.

So here is how I approach product strategy.?

Product Vision

Aspirational future state caused by the value of your product.

In [time frame] [company/product] will be [vision statement]. In order to reach our vision we need to [measurable objective] by [time frame]. After measuring we know that our current state is [measurements of current state]

Product Goals

In the first column, add your product goals. Then, in the middle column add the metrics or methods you will use to measure its success.

User empathy & Value proposition

Target group: Describe who they are, how are they different from your anti-buyer (anti-user), and the job-to-be-done.

??Pains: Think about the negative experiences, feelings, and risks that the customer experiences while they are trying to get the job done.

??Gains: What benefits would the customer expect? What would they need? What would delight customers? What things may increase the likelihood of adopting a value proposition?

The product

??Define your value proposition:

Our [??product/service] helps [??user type/target segment] who wants to [job to be done] by [verb (like reducing, avoiding)] and [customer pain] and [verb (increasing/enabling) [customer gain] unlike […]

We help [??target segment] to solve [defined problem/pain]. Unlike other solutions we [differentiation]

??The Product = The Solution.

• Pain Relievers: Remove current frustration and an exact description of how the product or service alleviates customer pains.
• Gain Creators: Offer them something new (added value). For example: “Comfortable, socially conscious, I get additional resources for free, etc”

Product strategy

??Product offer:

• Core Product: The essential motivational benefit the customer/user/client is looking for. It’s what the customer wants to get most.
• Functional requirements & Behavioral requirements(Emotional benefits).
• Basic Product: Physical and intangible properties that help satisfy the desire for the motivational benefit. You can also add a section for ‘Expected Product’.
• Augmented Product: Extra attributes that help make the product/solution more attractive. Additionally, you can add an additional level ‘Potential product’

??Velocity and production.

How would you improve velocity? (Operating efficiency, Inventory Turnover, Just-in-time development, New product time to market, Team processes and culture, Functional experts,?…)

??Methods of sale and distribution (+Channels)

(Market share, Branding, Pricing,..)

??Return/Profit. (Capital acquisition, enhanced distribution of profits, Policies, Margins, Upselling,..)

Here is the template.

By the way, you can use this framework in Nova, and instantly collaborate with your team in real-time.

#productmanagement #productstrategy