Introduction
We have been emphasizing the significance of prioritizing outcomes over merely producing outputs in the realm of product discovery. Learning to consistently achieve outcomes, undoubtedly tougher than delivering outputs, embodies the essence of the product model, which is central to what Insights Falcon promotes.
This evolution necessitates the introduction of four new competencies and the development of capabilities for five innovative product concepts, integrating best practices for a holistic impact beyond mere adoption metrics. This approach involves balancing value creation for all stakeholders, enhancing the product’s overall sustainability and success (McKinsey & Company).
The article aims to provide a comprehensive overview of essential product model concepts, stressing the strategic use of product analytics to derive actionable insights from user data, which aids in making informed product decisions (Amplitude).
We seek to explain these concepts clearly so you understand their purpose and have realistic expectations of your team. This includes fostering a culture that goes beyond the traditional focus on outputs to embrace outcomes, reflecting a shift from time-to-market to time-to-money, and emphasizing the importance of quick value realization to customers (McKinsey & Company).
Product Culture
Adapting to a Culture of Outcomes
The most fundamental shift in a mature product culture is moving from merely delivering features (output) to achieving significant business results (outcomes). This transition requires rethinking how success is measured and shifting focus from the completion of tasks to the impact those tasks have on customers and the business. It’s about understanding and delivering what really drives value rather than just completing a set of features by a certain date.
In traditional project models, teams are generally tasked with delivering specific features by set deadlines, which often leads to rushed work, overlooked potential for real value, and significant tech debt as teams move on to new projects without iterating on or refining the delivered product. This model can stifle innovation and leave little room for ownership or accountability, as team members typically disperse after project completion without any long-term commitment to the product’s success.
Conversely, the product model is designed around durable, outcome-focused teams that continually work on improving specific business metrics (like growth or churn rates). These teams are characterized by a deep understanding of both the technology and the business goals, fostering a culture of accountability and sustained innovation. They are not just shipping features but are focused on achieving meaningful business results that contribute to the company’s long-term success.
Product Strategy
In output-driven organizations, product teams often find themselves merely executing tasks prioritized by stakeholders, which can lead to difficulties in managing a myriad of demands. However, the product model advocates for a more strategic role for product leaders, who are tasked with a comprehensive evaluation of the business to identify and focus on the most pressing issues and desired outcomes.
Success in this context depends on strategically selecting the right initiatives, which is the essence of product strategy. This strategy requires developing new skills in extracting valuable insights from diverse sources, including customer interactions, data analytics, technological advancements, and industry trends. Product leaders in this model are not just passive observers but active participants who continually monitor these insights and adjust their strategies at least quarterly to stay aligned with dynamic market conditions and business goals.
This proactive approach allows for a more agile response to changing customer needs and market opportunities, fostering a culture that not only aims for but achieves meaningful business outcomes.
Product Teams
The reflection on the persistent use of project teams in organizations highlights the disappointment in seeing such models still prevalent, despite the awareness of their limitations. This perspective emphasizes the contrast between project teams and product teams: the former focus on short-term outputs with teams quickly dispersing post-delivery, while the latter are stable, long-term groups aimed at achieving sustained outcomes and continuous improvement.
Project teams are often criticized for their focus on immediate deliverables without genuine innovation or deep technological mastery, leading to high technical debt and ineffective results. These teams lack the continuity necessary for deep learning and iterative improvements, which are crucial for real value creation.
On the other hand, product teams embody a commitment to long-term development, deeply understanding their work, and building on continuous feedback to refine and perfect their output. The success of product teams stems from their ongoing engagement with the project area, fostering an environment of innovation and thorough understanding.
The persistence of project teams is typically rooted in traditional IT approaches where technology is seen merely as a cost center. This outlook perpetuates a cycle of budget approvals for discrete projects without a strategic assessment of their long-term impact or alignment with broader business goals. The challenge extends beyond the realm of technology, impacting financial strategies and overall business operations, highlighting the need for a more integrated approach in transitioning towards empowered product teams.
Product Discovery
There is a common misunderstanding in product development that separates the understanding of customer problems from the creation of solutions. This traditional divide often hinders innovation, as real breakthroughs frequently occur when these two areas are integrated. Technological advances can reveal solutions to problems that were previously unrecognized, demonstrating the need for a more fluid interaction between identifying problems and developing solutions.
Instead of isolating problem definition to product management and solution development to engineering, the approach should be collaborative. Product management, design, and engineering need to work together from the start to ensure solutions are valuable, usable, feasible, and viable. This collaboration is essential not just for defining problems but for creating compelling and innovative solutions that truly meet customer needs.
It’s crucial to balance time between understanding the problem and developing the solution, as focusing too much on one can detract from the other. Effective product discovery involves deep teamwork across disciplines, highlighting the importance of integrated efforts in producing successful products.
Product Delivery
In product development, there’s a trend where teams are often divided into those focusing on product discovery and those handling product delivery. However, aligning with modern product practices, it’s advantageous to maintain a single, cross-functional team that manages both aspects. This unified approach enhances both empowerment and innovation.
Typically, different team members might concentrate more on either discovery or delivery depending on their roles—product managers and designers might lean towards discovery, while engineers might focus more on delivery. Despite these focus areas, it’s crucial for all team members to participate in both discovery and delivery processes. This involvement ensures that the team maintains an innovative edge and prevents the challenges associated with a segmented team structure, where insights and plans are simply handed off from one group to another, potentially leading to decreased motivation and ownership.
Outsourcing engineering tasks or maintaining a rigid separation between who defines the product and who builds it can further exacerbate these issues. This often leads to a situation where the team responsible for execution feels disconnected, resembling mercenaries rather than integral parts of the product creation process.
To foster a culture of innovation and responsibility, it’s essential for each team member to understand that they are collectively responsible for both discovering effective solutions and successfully delivering them. This not only maximizes the potential for innovation but also ensures that all team members feel a strong sense of ownership and commitment to the product’s success.