Product Diplomacy

A Toolkit for Innovation and Product Leaders to Drive Impact

Innovation and product work are critical for success in both public and private sectors. Without them, organizations lose efficiency, customers miss out on better solutions, and in healthcare and humanitarian contexts, people may not receive life-saving resources in time. Yet, roadblocks like office politics, turf wars, and misalignment often stand in the way leading to frustration, missed opportunities, wasted resources - and sometimes much more. Applying modern diplomacy tools can help leaders break through these barriers and drive desired impact.

What is Product Diplomacy?

Traditionally, diplomacy has been confined to foreign relations. However, the practice has evolved. Today, diplomacy extends beyond the political realm to other walks of life. Leaders, for example, now use diplomatic methods to navigate the complexities of business.

?Diplomacy works well for leaders implementing change and trying to gain commitment and involvement from members of an organization.? Manuel London

Mastery of diplomacy, a skill that can be learned and refined, should therefore be essential for any leader. Given the scale and scope of innovation and product work, requiring cross-functional collaboration and alignment, especially with the C-Suite and senior leadership, leaders need strong diplomatic skills.

Consider the typical day of a Chief Product Officer, entailing negotiations with key stakeholders, discussions with the product managers, and negotiations with third parties. All the while the CPO is working to transform teams into empowered product teams, fostering a strong sense of ownership to deliver outcomes - as opposed to "feature teams", which, as Marty Cagan founder of the Silicon Valley Product Group explains, focuses on delivering predefined features or output.

Thus, Product Diplomacy emerges as a comprehensive framework encompassing tools and strategies to influence stakeholders and drive innovation and product work. It equips leaders with tools borrowed from modern diplomacy to help them build bridges across the entire organization to drive impact.

How does "secretive" diplomacy match with transparent innovation and product work?

Diplomacy is often seen as a political activity shrouded in secrecy and indirect communication, prioritizing "fine words" over transparency. At first glance, it might seem that diplomacy only adds fuel to the political fire, making it appear incompatible with innovation and product work, which thrive on transparency, open communication, and collaboration.

?There's no escaping office politics.? (Madeleine Wyatt and Elena Doldor)

Office politics are a reality. We can either learn to navigate them or remain reactive, ceding the ground to those who leverage politics for self-interest. In their HBR article, 'Office Politics Don't Have to Be Toxic,' Wyatt and Doldor emphasize the need to "push back against the view that politics can only be used for self-gain, and instead reframe it as a tool that can help everyone build connections, access opportunities, and get things done."

The same goes for diplomacy: instead of viewing it as a negative political tool, we can adapt its proven methods to address roadblocks in innovation and product work. The key is to integrate diplomacy with transparency, communication, and collaboration - turning it into a force that aligns with modern product and innovation strategies across all domains - including fast-moving, cutting-edge tech areas like Artificial Intelligence.

But consensus, democracy and compromise don't align with digital product work, right?

True, product teams don't typically operate on diplomatic principles in their day-to-day work. As Cagan emphasizes in his most recent Book 'Transformed', "collaboration is not consensus." The "disagree but commit" principle, coined by Jeff Bezos, often prevails. Similarly, "collaboration is not democracy" since product teams leverage their members' expertise rather than relying on equal say. And finally, "collaboration is not about compromise" - no product should be subject to compromise, lest it risks losing its full value.

However, to overcome office politics, turf wars, and misalignment, and to bridge gaps across the C-suite, senior leadership and the wider organization, some level of consensus, democracy, and compromise becomes essential to achieve desired impact. In this context, Product Diplomacy emerges as a powerful framework.

Introducing the Product Diplomacy Toolkit

Diplomats have long relied on a variety of tools refined over the years. With some - such as secret correspondence, coercive diplomacy, or reliance on clandestine operations - are clearly unsuited for innovation and product work, others can be adapted to great effect. The Product Diplomacy Toolkit contains 12 practical tools from modern diplomacy that can be applied individually or in combination to drive impact:

You’ll find a link at the end of this article to download your copies of the Toolkit, which includes descriptions and frameworks for applying the tools in your daily work, and a separate Case Study to illustrate their practical application.

1 Authentic Relationship Building

A core aspect of diplomacy involves cultivating and managing relationships with stakeholders. This requires building trust and using appropriate communication strategies to foster interaction and engagement. Just like diplomats, innovation and product leaders understand the value of networks and horizontal cooperation to create shared value, foster collaboration, and break down silos. Networks are vital in product work, where traditional hierarchies are fading, and lateral leadership is key.

While relationships can develop organically, a proactive approach can accelerate this process. Genuine interest, active listening, and a willingness to help others are essential. Moving beyond your inner circle, especially by connecting with the C-suite and senior leadership, broadens your perspective, encourages flexibility, and enables effective advocacy, as well as navigating unforeseen opportunities and challenges.

2 Communication Management

Clear and effective communication is central to diplomacy, requiring transparence, timeliness, consistency, and careful consideration of the message. Diplomats must be both persuasive and skilled at adapting their communication to varying contexts. Informal communication is particularly important in innovation and product work, as it fosters deeper connections and provides a nuanced understanding of stakeholders' perspective, which can be crucial for influencing behavior and driving alignment.

3 Active Listening

While not new to innovation and product leaders, active listening is worth emphasizing. Diplomats excel at empathetically understanding stakeholders' concerns, actively seeking to grasp and appreciate others' viewpoints - even of people they disagree with. Active listening also means giving undivided attention to the speaker. Through this approach, diplomats build trust and demonstrate respect, laying a strong foundation for effective collaboration.

4 Building Trust

Trust is the cornerstone of successful diplomacy. By consistently keeping promises and treating others with respect, diplomats demonstrate integrity and reliability. In low-trust environments, people are more likely to put up defences against anything novel, transformative, or that challenges established power structures, even when such initiatives are based on solid facts.

5 Establishing Rules

In their role as facilitator, diplomats propose rules for stakeholders to discuss and refine until consensus is reached. Clearly defined rule create a sense of security, clarity and direction. One of the major benefits of such rules is their ability to streamline processes. Once established, these rules minimize unproductive discussions by offering clarity and saving valuable time. In innovation and product work, examples of such rules include:

• agreeing on a shared, evidence-based criteria for feature or product prioritization.
• establishing a shared vocabulary and set of frameworks to ensure consistency, efficiency and avoid misunderstandings.

6 Multistakeholder Diplomacy

Managing stakeholders' expectations can be one of the trickiest parts of innovation and product work. Each stakeholder has their own goals and priorities, and they don't always line up perfectly. Different groups often try to steer the process in their favor. If you ignore their input or don't keep them involved along the way, things can go off track and lead to less-than-ideal results.

However, as Cagan rightly warns, viewing stakeholders as clients who dictate what needs to be done will result in a "feature factory" approach, where teams simply deliver on requests. Instead, innovation and product professionals should collaborate with stakeholders as partners to jointly discover and prioritize viable solutions. Conducting a thorough stakeholder analysis ensures you're involving the right people and aligning them around shared goals, ultimately increasing the likelihood of faster and better outcomes.

7 Coalition Building

In 'Modern Diplomacy', R.P. Barston emphasizes the importance of building coalitions with people who share similar goals, allowing diplomats to gain immediate support for an initiative. In the context of innovation and product development, an analogous example is the formation of pilot teams. Such teams serve as a controlled environment to test, refine, and demonstrate the value of a new initiative, rule or system. Coalition building enables controlled experimentation and refinement within the pilot team, allows other teams and senior leadership to observe, and provides valuable evidence of the initiative's effectiveness. Early support backed by concrete results can ease and accelerate broader implementation across the organization.

8 Shuttle Diplomacy

The term was coined to describe the diplomatic style Henry Kissinger applied in the negotiations surrounding the October War of 1973 in the Middle East. It refers to a negotiation style where a third party acts as mediator and meets with stakeholders individually, holding private discussions to bridge gaps in understanding. Through this iterative process, the mediator helps the parties see the benefits of an agreement, voice their concerns and rethink their positions. By allowing stakeholders - for example senior leadership - to share their thoughts in an informal setting first, shuttle diplomacy allows them to adjust their stances without losing face. It also helps to manage interpersonal dynamics before they escalate into larger issues, facilitating smoother negotiations and alignment across teams.

9 Building Competencies

Just like diplomats, innovation and product leaders must be committed to continuous development, actively seeking feedback to refine their skills. While a solid understanding of internal operations is critical, Product Diplomacy demands a broader knowledge of the overall business landscape. This includes fluency in key areas like finance, marketing, sales, and legal considerations. Such comprehensive knowledge enables product leaders to make more strategic decisions, navigate complex challenges, and manage stakeholders effectively. Moreover, it's equally important for innovation and product leaders to ensure that the C-suite and senior leadership has adequate literacy in innovation and product management to minimize friction and misunderstandings.

Ultimately, such competencies allow innovation and product leaders to elevate their role beyond being just a voice in the executive team. They become strategic partners to the CEO or founder, contributing directly to the long-term viability and success of the business.

10 Negotiation

Innovation and product leaders constantly engage in negotiation, whether it's to secure resources, align product vision with business strategy, define priorities, or establish operational rules. While a full exploration of negotiation theory is beyond the scope of this article, the Product Diplomacy Toolkit offers a practical framework inspired by the principles of the CENAD (Centre for Experiential Negotiation and Applied Diplomacy) . This toolkit equips leaders with a framework designed for quick and effective application in day-to-day negotiations, ensuring alignment and progress.

11 Co-Optation

Co-optation means involving potential opponents in the decision-making process to gain their support. By giving critics a stake in the outcome, diplomats - or possibly product managers - aim to turn them into contributors. Once involved, these people may gan a broader perspective and a sense of shared responsibility for achieving the objective. However, co-optation is not without risks: critics by refuse to participate, maintaining their opposition - or worse: they may join with a hidden agenda, acting as naysayers obstructing progress. Therefore, product managers must assess potential risks and identify strategies to mitigate them before using the tool.

12 Strategic Advocacy

?Advocacy is a process that aims at converting target audiences to supporters...? Lukasz Bochenek

In an organization, product development often involves continuous advocacy, as various stakeholders seek to influence the product's direction. Effective advocacy draws on the full spectrum of tools described in this article. Developing an advocacy strategy can be both rewarding and demanding. Using Jim Schultz's "Key Questions" framework for advocacy, the Product Diplomacy Toolkit provides a six-step approach to crafting an advocacy strategy tailored to address your specific challenge in innovation and product work.

Where Product Diplomacy is likely to fail

Product Diplomacy reaches its limits when dealing with erratic, powerful stakeholders who prioritize their own agenda. In such cases, it may be helpful to highlight overarching objectives that resonate with all parties and focus on achieving small wins that contribute to broader goals.

?If next week looks better than last week, you are on the right track?. Teresa Torres

Over time, consistent reinforcement and a track record of delivering value might make even these challenging stakeholders more receptive. However, even for the most masterful Innovation and Product leader, navigating these dynamics is tough.

Also, overzealously evangelizing for the "right way to do it" can lead to failure for two main reasons:

1. there is no single "right way".
2. Excessive confidence or enthusiasm can undermine diplomatic efforts, as it may come across as pushy or dogmatic, alienating stakeholders instead of aligning them.

Why I am doing all this

I’ve personally faced roadblocks like office politics, turf wars and misalignment in various roles - whether as a founder, investment manager, startup coach, or in leadership positions like Head of Innovation LAB and CPO. I didn’t always solve every challenge perfectly - far from it. I made mistakes and learned valuable lessons along the way. But I’ve also seen firsthand the transformative power that modern diplomacy tools can bring to innovation and product work. That’s why I’m passionate about further developing this concept.

My initial research began during my master’s thesis at the Geneva Graduate Institute | Executive Education in 2024, where I explored how these tools can be systematically applied to overcome common barriers. The result is the Product Diplomacy Toolkit, which I’m committed to evolving further - not alone, but collaboratively. Because meaningful impact is best achieved when we build on each other’s strengths and insights.

This journey is guided by these cornerstones:

• Mission: empower people to build bridges across entire organizations to drive impact.
• Vision: a world in which innovation and product people are fully empowered.

Apply Product Diplomacy and join the conversation

Many of you might already be using some of the tools included in the Product Diplomacy Toolkit, though perhaps unconsciously and without a structured approach. The goal is to put the tools into practice, gain firsthand experience, and share learnings and stories. There’s still work to be done to refine the tools - they are far from perfect - and that’s where your collaboration becomes essential.

Download the Product Diplomacy Toolkit and the accompanying Case Study to drive impact and help refine the concept further.

-> Get your copy HERE

Join me live

I’ll be speaking about Product Diplomacy at the Product Management Festival in Zurich on November 6th and 7th. I’d love to see you there! You can use the code DiscountSpeakerPMF to get 20% off your ticket.

-> Get your ticket HERE

And a huge shout-out to everyone who’s contributed so far: survey participants, input givers, and challengers. It wouldn’t have come this far without you ??