Our startup product strategy book tentatively titled The Startup Product Strategy Guide is coming out later in 2023. The book is a practical guide to crafting and sharing product strategy context in high-growth startup environments.
Skip the theory, and get hands-on with how to create product strategy at the company, as well as at the team level.
Below is the working draft...
As a startup founder, you're constantly making high-stakes decisions about your product - what to build, what not to build, and how to position it. Get these decisions right, and you delight customers, beat competitors, and scale growth. Get them wrong, and you risk wasting precious time and money on features users don't want.
This guide will equip you to make smarter product choices by focusing your strategy. You'll learn a repeatable framework to understand your market context, define the game you're playing, and set a vision others can rally behind. With compelling stories and actionable advice, you'll gain insight into customers, competition, and company capabilities. Then, you'll translate that knowledge into priorities and a roadmap to accelerate growth. Whether you're pre-product market fit or pre-IPO, these strategic practices will help you build delightful products your customers love. So read on to transform product strategy from a guessing game into a competitive advantage for your startup.
The key insights you will find within...
- Strategy will evolve
Product strategy evolves over startup stages. Pre-product market fit focuses on customer discovery and problem validation. Post-PMF involves scaling growth efficiently. Strategy must flex at each phase.
- Play big games, win big prizes
Startups play competitive "games" - races to scale or differentiate. Defining the specific game gives startups focus. Trying to play all games dilutes efforts.
- Growth, retention, and margins
Successful startups focus on sustainable growth, retention, and healthy margins in harmony. Growth at any cost is short-lived. Retention comes from delighting customers. Margins matter.
- Attention, productivity, or transaction
Startups engage users through attention, productivity or transactions. Build the product and growth strategy around the core engagement model for your users.
- Deeply understand your users
Differentiation comes from deeply knowing your target users. Their struggle points and desired outcomes reveal opportunities to differentiate.
- Beyond feasibility
Engineering is about more than feasibility. Involve engineering in problem exploration, not just solution execution. Expand thinking beyond technical constraints.
- Know the jobs-to-be-done
Good product strategy provides focus by clearly articulating target users, their jobs-to-be-done, sources of differentiation, and strategic priorities based on business objectives.
- Set context and expectations
Strategy should cascade from executives to teams. Leaders set context and goals, teams have autonomy on solutions to hit goals. Outcomes and measures connect strategy across levels.
- Live the strategy
Make product strategy a living, breathing process, not a point in time document. Continually realign on strategy through analysis of metrics and customer learnings, as well as changing market conditions.
How this guide will help your startup's product strategy
Product strategy can seem nebulous for early stage startups. You know you need it, but how do you do it with little data and few resources? This guide provides a tactical framework you can start applying today.
This guide will provide a comprehensive overview of startup product strategy, with actionable frameworks and examples to help founders develop and execute effective strategies. Product strategy is essential yet often overlooked - with unclear strategy, startups risk wasting time and money on features that don't move key metrics.
Specifically, this guide will:
- Explain what product strategy is and why it matters at different stages, from pre-product market fit through IPO. Product strategy evolves as a startup grows.
- Provide a methodology for developing insights through market research and synthesizing them into a strategy. Startup strategies are based on deep customer understanding.
- Give examples of common startup strategy mistakes and how to avoid them. Many fall into traps like copying competitors or lack of focus.
- Outline a process for creating strategic roadmaps to focus product development. Roadmaps align teams to strategic goals.
- Detail how to communicate strategy across the organization to ensure execution. Strategy only matters if it is actionable.
- Share frameworks for measuring strategic progress through metrics and iteration. Strategy must flex as the market changes.
With dedicated focus on product strategy, founders can more quickly find product market fit, out-execute competitors, and delight customers. This guide aims to level up startup strategy capabilities.
"Get out of the building. Your goal is to build something people want, not just something you want." - Steve Blank
The period before achieving product-market fit is crucial for startups. This is when you must deeply understand your target customers, refine your product offering, and lay the groundwork for scalable growth.
Focus on a narrow target customer segment. Resist the temptation to broaden your focus too early. Zero in on a beachhead market of early adopters who have a compelling need that your product can uniquely satisfy. Talk to these potential customers extensively to understand their jobs-to-be-done, pain points, and decision criteria.
Iterate rapidly on the product experience. Release minimum viable products to gather feedback. Prioritize learning over vanity metrics. Test different positioning and messaging. Make it a habit to collect qualitative insights from users. Obsess over product-market fit before attempting to scale.
Assemble the foundations for growth. Product-market fit opens the floodgates for growth, so prepare the machinery during this pre-phase. Build a referral loop into the product experience. Develop marketing assets and campaigns. Recruit key hires for sales, marketing, and support. Refine onboarding and the conversion funnel. Ready the infrastructure to scale gracefully.
Measure progress qualitatively. Traditional metrics like revenue and engagement can be misleading before product-market fit. Instead, track subjective indicators like net promoter scores, customer interviews, reviews, and staff feedback. Maintain a bias for action by continuously testing and optimizing based on user feedback.
The pre-product-market fit phase is uncertain but full of learning. Move quickly, focus on customers, and lay the groundwork for growth. With persistence and smart iteration, you'll find traction that pulls you into a must-have product that's ready to scale.
After PMF and before IPO
"The challenge is not just to build a company that can endure success but to build one that can endure failure." - Ben Horowitz
The period after a startup achieves product-market fit but before going public is a crucial time to develop and execute on product strategy. At this stage, the startup has found a product and market with demonstrated traction and growth potential.
Your goal is to grow as quickly as possible. However, realizing that potential requires thoughtful strategy to scale the business in a sustainable way.
Several strategic imperatives emerge during this growth phase:
- Expanding the customer base: After an initial beachhead of early adopters, how does the startup expand to additional customer segments? This requires analyzing Jobs-To-Be-Done, buyer personas, and go-to-market positioning.
- Increasing retention and loyalty: As the user base grows, how does the product create habitual usage and customer loyalty? Retention and reduced churn become vital metrics.
- Developing the product suite: The MVP that achieved PMF won't be enough. The product needs to expand with complements and additional capabilities. But over-expansion can dilute focus.
- Managing technical debt: Balancing urgency and sustainability means deciding when to optimize tech infrastructure and pay down technical debt. This enables scaling without crumpling under complexity.
- Preparing processes: With more customers and employees come more complexity in processes like sales, support, and operations. Strong systems and automation early on facilitate scaling.
- Building teams: The startup needs to rapidly expand teams while maintaining culture and quality. Defining roles, accountability, and decision-making authority is crucial.
- Setting pricing: With various customer segments and expanding products, pricing strategy and packaging become complex. Pricing power emerges but balancing value and market share is key.
The decisions made during this growth period set the trajectory for the startup's market position and prospects. Executing on the right product strategy steers the company toward category leadership and a compelling story for eventual public markets. But missteps can lead to stagnation or decline. This high-stakes moment demands the startup's best strategic thinking.
The goal of product strategy is scaling founder insight
"I know what I want the company to look like. I want it to look like the company run by its most passionate customers." - Jeff Bezos
A startup's product strategy seeks to scale the founder's unique insights about the market opportunity. The founder's vision and intuition about customer needs, product differentiation, and business models contain the startup's secret sauce for disruption.
As the company grows, however, it becomes difficult for the founder to directly impart their knowledge to every product and engineering team. Misalignment emerges where teams drift from the founder's intent. Siloed thinking minimizes the big picture.
An effective product strategy distills and scales the founder's knowledge throughout the organization. It provides a blueprint for communicating the founder's insights about the target customers, their underserved jobs-to-be-done, sources of differentiation, and principles for delighting users.
The product strategy elucidates the market context and business objectives that shape product decisions. It frames the "game" the startup is playing to win against incumbents and alternatives. With a shared understanding of the market landscape and where the founder wants to go, teams can execute product initiatives in alignment.
By codifying the founder's vision into a living document, the product strategy scales startup knowledge so that every team has access to the founder's playbook. It allows distributed teams to make decentralized decisions, yet stay true to the founder's intent.
Product strategy takes the founder's brain, principles, and insights – and imprints it throughout the company.
Every startup plays a game
"Business is a game, and you want to win that game." - Dick Costolo
Startups exist in competitive markets, where multiple players vie for customers and market share. This competitive dynamic is akin to a game - there are rules, strategies, and winners and losers.
Understanding the "game" your startup is playing is crucial for developing an effective product strategy. Here are some key aspects of the startup game:
- Know the players
Who are your direct competitors? Who are adjacent players that could move into your space? Understanding the competitive landscape is critical.
- Know the playing field
What market are you operating in? What trends and market forces shape the dynamics? No game happens in a vacuum.
- Know the rules
What laws, regulations, and norms govern your industry? These "rules" constrain actions and strategies.
- Know how to keep score
What metrics define success in your market? Customer acquisition, revenue growth, profitability? Clarity on goals is essential.
- Know how to win
What strategies and advantages will allow you to beat competitors? Product differentiation? Operational excellence? Network effects? Identify your path to victory.
The startup game rewards those who understand these dynamics and play skillfully. With clarity on the game, you can make strategic choices on where to focus time, resources and energy to maximize your odds of "winning."
Of course, the game is not static - competitors come and go, rules evolve, new strategies emerge. You must continually re-evaluate the playing field and adapt. But by internalizing that startups exist within competitive games, you orient yourself to ask the right strategic questions.
Every startup plays a game. Know yours inside and out.
Strategy is widely misunderstood, easy to learn, hard to master
"Strategy is not complex, but it is hard. There will be resistance to doing things differently. Mastery requires perseverance."- Lawrence Bossidy
Strategy is often misunderstood as complex and intimidating, seemingly reserved only for those with MBAs or years of experience. However, the fundamentals of strategy are quite simple to grasp. Defining a clear vision, understanding customers, analyzing the competitive landscape, and setting priorities are concepts anyone can comprehend.
Where strategy gets tricky is in the execution.
Turning high-level strategic plans into day-to-day operating reality is hard work. It requires rigorously prioritizing opportunities, aligning people, and constantly re-evaluating based on changing market conditions, namely: customer expectations.
Strategy must shape hundreds of micro-decisions each day across an organization.
Effective execution relies on cross-functional collaboration, clear communication, and a culture of accountability. Employees at all levels must understand how their work ladders up to strategic goals.
Leaders must connect strategy to specific metrics and key results. When execution falls short, the strategy may need reassessment.
Be ready for the journey. Mastery takes patience and persistence. With a growth mindset and commitment to keep practicing, any organization can progress from confusion to competence to excellence. The payoff is worth the effort.
Good Startup Product Strategy, Bad Startup Product Strategy
"You can have the best strategy and the worst execution, or the worst strategy and the best execution - execution trumps strategy." - Reed Hastings
Product strategy is crucial for any startup's success, yet it is often misunderstood or executed poorly.
A good startup product strategy is laser-focused on solving a specific customer problem or need. It is based on a deep understanding of the target users and market landscape. The strategy should clearly articulate the unique value proposition and product differentiation. It also needs to map out a plan for scaling and growth.
In contrast, a bad startup product strategy lacks focus and is based on assumptions rather than customer insights. It prioritizes short-term wins over long-term vision. There is no clear differentiation or compelling reason for customers to choose the product over alternatives.
Flawed strategies lead to wasted resources and failure to achieve product-market fit. By studying examples of both good and bad startup product strategies, founders can learn to craft strategies that set their startups up for sustainable growth.
A good startup product strategy has several key elements:
- Deep understanding of target customers and their needs. Good strategies are grounded in qualitative and quantitative insights into who the ideal customers are, what jobs they want to get done, what pain points they have, and where there are opportunities to delight them.
- Clearly defined market positioning. Good strategies delineate how the product is differentiated from competitors and alternatives, what unique value it provides, and what niche or segment of the market it serves best.
- Alignment to company mission and values. Effective strategies connect back to the core purpose and principles of the company. The strategy should flow logically from the mission.
- Dynamic roadmap prioritization. Good roadmaps focus on sequencing initiatives based on expected customer impact and value created. They balance short and long-term objectives and leave room for adaptation.
- Cross-functional collaboration. Strategies that connect product, engineering, marketing, sales, and other functions around shared goals and insights are more cohesive.
- Executive-level direction. Good strategies set a vision and priorities from the top-down, while enabling teams to execute tactically. Leadership alignment is critical.
- Clear ownership and accountability. Strategies define who is responsible for what areas and how success will be measured. Lack of clarity creates execution gaps.
- Communication and transparency. Good strategies are documented and shared across the company. Teams understand how their work ladders up to strategy.
In contrast, poor startup strategies exhibit these anti-patterns:
- Lack of customer insights. Strategies not grounded in real customer needs end up misguided and waste resources.
- Unclear positioning and differentiation. Without a well-defined niche and value proposition, startups struggle breaking through the noise.
- Misalignment with company values. Strategies that conflict with the company mission often fail from poor cultural fit.
- Rigid roadmaps. Roadmaps not open to re-prioritization based on learning will miss critical opportunities.
- Silos between functions. When departments like product and marketing don't collaborate, execution suffers.
- Lack of leadership. Strategies fail without executives providing direction, priorities, and resources.
- No ownership of outcomes. When no one is accountable to the strategy, execution falls through the cracks.
- Poor communication. Strategies not documented and shared, leaving teams misaligned and working at cross-purposes.
Build the strategy team and get started
"Alone we can do so little; together we can do so much." - Helen Keller
A strong product strategy starts with assembling the right team. While many early stage startups may rely on a "two pizza team" to maintain agility, product strategy benefits from even smaller teams of cross-functional experts. Aim for a "one pizza team" of no more than 2-4 strategists, including team members strong in product marketing, design, and engineering.
This lean strategy team must deeply understand the market context in order to define and refine the "game" the startup is playing. The goal is to delight early adopters with a minimally viable product that clearly communicates the unique value proposition. Engineering feasibility is crucial, but not sufficient - strategy should drive engineering priorities rather than vice versa.
The best product strategies can be kicked off in as little as an hour, while allowing plenty of time for debate and dissent before setting a deadline. By iterating daily within the strategy team before socializing ideas more broadly, you can rapidly align on a product vision that gives your startup its best shot at winning its category.
2 Pizza Team? Try 1 Pizza Team!
"If you want to move fast, start with the smallest possible strategy team - even just the founder as the 'one pizza team.' Speed comes from alignment, not numbers." - Ben Horowitz
When it comes to developing your startup's product strategy, less is often more. Rather than having a large, unwieldy strategy team, consider keeping it to just 1-2 core people, a "1 Pizza Team."
The benefits of a super lean strategy team include:
- Faster decision making. With just 1-2 people, you avoid the logistical headaches of coordinating schedules and getting alignment across a large group. Decisions can be made quickly.
- More focused strategy. A smaller team will naturally develop a more unified vision for the product and business, rather than a diluted strategy trying to satisfy competing interests.
- Closer to the details. The strategy leads can remain close to the day-to-day workings of engineering, design, customer research etc. This informs the strategy and keeps it grounded.
- Founder-centric. The product vision at an early stage startup should reflect the founder's insights. A 1 Pizza Team allows the founder to drive strategy.
- Cost efficient. You likely can't afford to hire a big strategy team anyway. Start with 1-2 strategic thinkers from your early team.
The key is finding 1-2 product/business hybrids who can balance the big picture with the ability to execute and influence the details. Avoid having pure strategists detached from the actual product work.
So be bold and start your product strategy with a small, founder-driven 1 Pizza Team. The speed and focus will be your advantage in these early days. You can always expand the strategy team later as the business grows.
Understand the market to define the game
You must deeply understand the market they are entering. This means going beyond surface-level research and truly immersing yourself in the customer's world.
The best way to build this understanding is through direct customer conversations. Aim to speak with 10-30 people who have the problem you are trying to solve. Schedule 30-60 minute calls where you ask open-ended questions to uncover their experiences, pain points, and desires.
Take detailed notes during these conversations and look for patterns:
- What jobs are they trying to get done?
- Why are they doing this?
- What are the alternatives they are using?
- Where are they struggling?
- What would delight them?
- What do they love and hate about how it currently works?
You may notice certain words or phrases continuously coming up that reveal their mental models.
As you talk to customers, you'll gain clarity on the market landscape:
- Who are the major players?
- What products do customers currently use?
- How do they view the competitive set?
This allows you to position your startup within the ecosystem.
While conversations provide qualitative data, also gather quantitative data through surveys, analytics, and market research reports. Combining both allows you to triangulate findings.
Immerse yourself in the customer's world. Browse forums where they congregate, read professional publications they follow, and get hands-on with products they use. Experience the pains first-hand.
As your understanding deepens, you can define the "game" you are playing - the problem space, competitive set, customer needs, and market dynamics. This insight is the foundation for developing a differentiated product and go-to-market strategy.
The goal is to build empathy and craft a product that delights. Spend more time listening to customers than talking to them. Let their words guide you. By understanding the market, you can strategically position your startup to win.
Delightful products win the early adopters
In the early days of your startup, focusing on delighting early adopters is crucial for gaining initial traction and validating product-market fit. Early adopters are willing to take a chance on new, unproven products because they get excited about being on the cutting edge and trying innovations before the mainstream market.
To win over these influential early adopters, you need to wow them with a product that delights them in ways they haven't experienced before. Delight comes from going above and beyond their expectations by solving pain points in creative ways and providing unexpected moments of joy through your product experience.
Aim to delight early adopters by:
- Offering a dramatically better solution to an important problem they care about
- Providing a unique, innovative approach they haven't seen before
- Including thoughtful design and user experience that creates "aha" moments
- Adding elements of surprise, humor, and personality that bring a smile
- Making the product intuitive, seamless, and exceptionally easy to use
- Crafting onboarding and educational experiences that get them up and running quickly
- Responding rapidly to feedback and improving the product iteratively
If you can consistently over-deliver on value and quality for early adopters, they will become enthusiastic brand advocates who spread positive word-of-mouth and help fuel your early growth.
Delighting a small group of early adopters can provide the foundation you need to eventually win over the much larger mainstream market.
Engineering is more than feasibility
Engineering teams are often focused on assessing the feasibility of product ideas and executing on what has been defined by product strategy. However, engineering insight goes far beyond determining what is possible to build. Engineers have a unique perspective on problems worth solving, how to delight users, and imagining creative solutions.
To build a culture of exploration, engineering leaders should encourage curiosity, learning, and exploring the problem space. Set aside dedicated time for engineers to understand customer needs, jobs-to-be-done, and conduct user research. Foster an environment where engineers are asking "why" and not just "how".
Engineers should be empowered to rapidly prototype and experiment with different solutions. Celebrate learning over shipping. Regular hackathons, innovation days, and internal projects allow engineers to scratch their creative itch and expand the realm of possibilities.
Cross-functional collaboration is key. Engineers should be embedded in the product discovery process, not just execution. Bring engineering into customer interviews, ideation, and priority setting. Early involvement leads to better solutions and shared ownership.
The engineering culture should value possibilities over constraints. Engineers have immense creative potential to imagine solutions users love. Unlock this by shifting the engineering mindset from feasibility to one of exploration, learning, and expanding the realm of what's possible.
Kick off strategy definition in one hour
Defining your startup's product strategy doesn't need to be a long, drawn-out process.
You can kickstart the strategic thinking in just one hour if you prepare properly.
Here's how to make that first strategy session as productive as possible:
Before the session:
- Send out pre-reads 1-2 days in advance so everyone comes prepared with the same context. Include the startup's mission, target customers, value proposition, competitive landscape, and any early traction or feedback.
- Ask everyone to brainstorm what makes you different. Spend 10-15 minutes brainstorming what unique value your product can offer compared to alternatives. Focus on how you can better satisfy the customer needs identified. Capture key elements of differentiation.
- Define your positioning statement. Take 10 minutes to draft a positioning statement that succinctly states who you serve, what need you address, how you uniquely meet that need, and why that matters.
- Create a shared doc with sections for capturing notes. Share access with all attendees.
- Send the agenda so people know the goal is to define the playing field and start identifying where you can win.
During the session:
- Frame the discussion around your target customers and their needs. What job are they hiring you to do?
- Map out competitors and substitutes. Where are the white spaces no one owns yet?
- Capture key elements like market size, risks, and growth potential.
- Outline a strawman strategy with the game you could play, spaces to own, and early priorities.
- Identify knowledge gaps to fill through customer research.
- Leave with alignment on the next strategic steps within a week.
With the right context and facilitation, you can get tremendous clarity in just one hour. The key is quickly finding the unique playing field where your startup can win. Enable the team to see it and start strategizing around it.
Iterate daily, gather dissent, and set a deadline
Defining a startup's product strategy should not be a long, drawn-out process. The market is moving quickly, and you need to as well. Take an iterative approach - start with a rough draft, share it widely within the company, gather feedback, dissenting opinions, and suggestions, then revise and refine daily.
Schedule short, daily working sessions with the product strategy team to review the latest draft and make tweaks and improvements. Identify areas of disagreement or alternatives proposed and discuss them as a group. Don't shy away from healthy debate - gathering dissenting views leads to a stronger strategy.
Set a deadline for when the product strategy will be finalized, ideally within 1-2 weeks. This creates a sense of urgency and prevents endless wordsmithing. The strategy does not need to be perfect - it just needs to provide enough directional guidance for teams to start executing. As you execute, you will gain new insights that can be incorporated into strategy updates.
Making product strategy an open, collaborative, iterative process with a set deadline gets broader buy-in across the company while still moving quickly. And once finalized, the strategy should be a living document - updated frequently as the market evolves. Daily iteration, gathering dissent, and a tight deadline results in a product strategy that is directionally right enough to start executing against.
Define the game, own the category
Defining the game you are playing and owning the resulting category is crucial for startup success. Many founders fail to clearly articulate the specifics of the "game" their startup is playing. Without clarity on the metrics that matter most, the competitive landscape, and differentiation, startups end up playing multiple games haphazardly instead of playing one game deliberately.
This section will illuminate how to define the startup game you are playing in order to set your team up for category leadership. First, we'll explore how the best startups optimize for sustainable growth, high retention, and healthy margins. Next, we'll break down the three core ways startups engage customers - through attention, productivity, and transactions. We'll then dive into how understanding your target customer is key for differentiation. Finally, we'll pull these threads together to outline how to precisely define the game your startup is playing so you can win it.
With the framework in this section, you'll be able to align your entire startup around playing one game really well. Defining your game will enable you to set the context for your product strategy, direct your engineering investments, focus your go-to-market motion, and own your category. Let's jump in and learn how to play your startup game to win.
Defining the Category
Every product competes in a category, whether that category already exists or is newly created. Understanding your category is crucial for positioning your product and winning market share.
An existing product category has an accepted definition and well-known competitors. For example, the ridesharing category contains services like Uber and Lyft that match drivers with passengers through a mobile app.
Creating a new category can be advantageous for a startup, as it allows you to define the space on your own terms rather than competing head-to-head with entrenched players. However, category creation carries risks, as it requires educating the market on why your product is unique and necessary.
When creating a new category, focus on articulating the core customer problem or need that your product addresses. Avoid generic labels, and opt for descriptive names that communicate your differentiation. For example, Rent the Runway defined the "rental fashion" category rather than simply saying they were an e-commerce store.
The key to successful category creation is becoming synonymous with the category itself. This establishes your product as the exemplar that others are measured against. If your messaging and positioning resonate, the media and analysts will adopt your category terminology as well.
Category creation takes time, but the rewards can be immense. Not only does it allow for clear differentiation, but it creates a moat against competitors. Once a category is widely accepted, new entrants will have difficulty redefining it to their advantage. With effective execution, category creation can cement your product as the leader in a new space.
Great startups grow, retain, and care about margins
Great startups focus on sustainable growth, retention, and healthy margins. Growth without retention is hollow and temporary. Retention without growth leads to stagnation. Margins matter because no business can survive without eventually becoming profitable.
The key is balancing all three. Focus too much on growth at the expense of margins, and the startup will bleed cash and require constant fundraising just to survive another day. Focus too myopically on margins early on, and growth will suffer along with the valuation.
The most successful startups manage to accelerate growth and retention in a capital efficient way. They acquire users organically at a reasonable cost, then maximize lifetime value through stellar product experiences that users don't want to leave. These startups delay monetization at first while iterating quickly to find product-market fit. Once found, they gradually layer in monetization strategies that are aligned with user values.
Great startups also recognize margins are not just about revenue and costs. Margins can be expanded by increasing willingness to pay as well as reducing COGS and overhead. Willingness to pay comes from a differentiated product that solves pressing jobs-to-be-done better than alternatives. Costs can be optimized through focused spending on resources that directly impact growth and retention.
In summary, the best startups seek growth, retention and margins in harmony through relentless innovation, customer insight, and financial discipline. They understand sustainable growth arises from delighting users with an increasingly indispensable product. Retention comes from understanding user struggles and designing the product to alleviate them. Margins come from aligning monetization with user values while maintaining cost discipline. Startups that master this balance can scale into profitable industry leaders.
Startups engage customers through attention, productivity, and transactions
Startups must find ways to engage and retain customers in order to grow their business. There are three primary models that successful startups use to engage users and drive growth: capturing attention, increasing productivity, and enabling transactions.
For consumer-focused startups, especially social media, entertainment, and content apps, the key is capturing and retaining user attention. They need active daily engagement from users and aim to monopolize their attention and screen time. Tactics like gamification, variable rewards, social sharing, push notifications, and infinite scrolling optimize for attention. The more addictive the product, the better.
For B2B startups, the focus is on increasing business productivity. This means understanding pain points in current workflows and processes and using technology to streamline operations and reduce costs. Tactics include integrations, automation, analytics, and collaboration tools. The value proposition is clear time and money savings.
Finally, marketplace startups rely on enabling transactions between buyers and sellers. Their goal is to reduce friction in transactions, build trust between parties, and grow the number and velocity of exchanges. Tactics include reputation systems, dispute resolution, payment processing, and incentives to maintain liquidity. The more transactions, the greater their revenue.
Align your product and growth strategies with one of these models based on their target users - attention, productivity, or transactions. The startup that best optimizes their engagement model for their specific users gains an advantage in the market.
Differentiation Comes From Knowing Your Customer
In a competitive market, differentiation is key to standing out and winning over customers. But how does a startup truly differentiate its product? The answer lies in deeply knowing your target customers.
To create differentiation, you must understand who your ideal customers are, what jobs they are trying to get done, what pain points they experience, and where there are gaps in the market. Conduct user research through surveys, interviews, and observation to uncover your customers' needs, goals, and challenges.
Map out your customers' journey to see where frustrations arise and opportunities exist to delight them. Learn what alternatives they currently use and why those solutions fall short. Uncover the outcomes they desire and what success looks like to them. The more insights you gather directly from the source, the better you can identify ways to differentiate.
With this customer knowledge, look for ways to tailor your product to meet your users' specific needs and jobs-to-be-done better than competitors. Offer features that reduce their pain points and enable them to accomplish outcomes faster, easier, or more enjoyably.
For example, Box, a file sharing startup realized corporate IT buyers needed tighter access controls. So they differentiated by focusing their solution on granular permissions and security sought by that customer segment.
Ongoing customer research reveals new opportunities over time. Regularly engage with your users to continually gain insights that fuel further differentiation. Customer intimacy allows you to iterate your product strategically based on what your niche values most. When you deeply know your customers and build around them, your product naturally distinguishes itself from the rest.
You can only win if you know what game you're playing
Effective product strategy requires clearly defining the "game" your startup is playing. This game is determined by your target customers, competitive landscape, business model, and other strategic choices. Without understanding the game, you risk wasting resources on the wrong priorities.
Some examples of common startup games:
- Land grab game - Racing to acquire users/customers before competitors in a new market. Speed and network effects are critical.
- Differentiation game - Offering a unique value proposition not easily copied. Focus is on honing the differentiation and marketing it.
- Low-cost provider game - Providing a good enough solution at the lowest cost. Operations and scale drive success.
- Niche game - Dominating a small niche market that is ignored or underserved by larger players. Specialization rules here.
- Platform game - Creating a platform that connects two or more groups and benefits from their network effects. The platform needs to appeal to all sides.
- Enterprise sales game - Long sales cycles to large enterprises. Requires relationship building and complex account management.
The game you play depends on choices like your business model, target customer, go-to-market strategy, and more. It also evolves as you grow. Uber started with a land grab game and later added a differentiation game with UberPOOL.
Once you identify the right game for your startup, you can focus on the key metrics, growth levers, and capabilities needed to win. Without this clarity, you risk losing to competitors playing a different game with more suitable strategies.
Startup product strategy is about depth of knowledge
A strong product strategy is built on a foundation of deep knowledge and insights about your customers, market, and business context. As a startup founder, you must constantly strive to expand your understanding in these areas. An effective product strategy illuminates key insights, showcases current data, and provides strategic direction across multiple time horizons.
It frames how your product delivers value in the context of market realities, customer needs, and business objectives.
This section will explore how to build a product strategy rooted in depth of knowledge - from clarifying the market landscape to mapping strategic priorities.
By grounding strategy in research, data, and insights, you can craft a product vision that resonates with customers, guides smart tradeoffs, and propels sustainable growth. The goal is to synthesize your hard-won knowledge into a compelling strategic narrative. With depth of understanding, your strategy will not only describe where to go next but also why that path leads to success.
Set context each year for the next three years
Setting the context each year for the next three years is a critical part of a startup's product strategy. This section of the strategy should clearly outline the market landscape, competitive forces, customer needs, and business objectives for the current year as well as the two years following.
For the current year, the context should dive deep into the current state of the market, including market size, growth trends, customer segments, buying criteria, and competitive offerings. It should also detail the startup's position in the market, business metrics and KPIs, and objectives for the year. Any major initiatives planned for the year should be highlighted.
Looking ahead to the next two years, the context section should outline projected market changes, growth areas, emerging customer needs, and potential market disruptions. It should describe how the competitive landscape may shift and what new competitors may emerge. Most importantly, it should define the startup's strategic response to these future market conditions in terms of new products, features, partnerships, and business models.
The context for future years will likely be more speculative and less detailed than the current year. However, defining potential scenarios and strategic responses sets the stage for adaptable product planning. As the years progress, the context section should be revisited and updated to reflect the most current market insights.
Setting an informed context each year establishes a vision for where the product and business needs to evolve over time. With clear context, product teams can build roadmaps and execute product strategies that align with the market and business goals not just for the immediate future but for years to come.
Illuminate the market context and share earned secrets
A key part of an effective product strategy is illuminating the broader market context and sharing insights your company has earned through experience. This provides important perspective on where your product fits within the larger landscape and where there may be untapped opportunities.
When illuminating market context, aim to paint a vivid picture of the competitive environment, customer needs, industry trends, and market forces at play. Share relevant statistics, examples, and anecdotes to make the landscape come alive. Explain the market size, growth rates, customer segments, how people currently get the job done, and where there is dissatisfaction. Outline the major competitors and complementors, their positioning, and where there may be gaps.
Also share insights your company has gleaned through on-the-ground experience. These earned secrets from interacting with customers, partners, and the competition can provide unique perspective. For example, call out key learnings about customer pain points and desired outcomes. Share observations of competitors' strengths and weaknesses. Shed light on partnership opportunities. But take care not to disclose confidential information - frame insights at a level that educates without exposing secrets.
The goal is to provide the full 360-degree view of the market to inform strategic decisions. Illuminating the broader context sets the stage and highlights opportunities. Sharing earned secrets provides proprietary wisdom. Together, these give teams a valuable strategic perspective to identify where the company can play and win. With a rich understanding of the market landscape and your differentiating knowledge, you equip teams to develop products and solutions that deliver outstanding value.
Showcase current data and customer insights
The product strategy document should include a summary of key data and insights gathered from current customers. This will help provide context on where the product and business stand today.
- Key metrics on product usage and engagement. For example, daily/monthly active users, retention rates, feature adoption, etc. Visualize trends over time.
- Data on how well the product delivers against core jobs-to-be-done and user needs. Survey scores on key tasks and outcomes.
- Feedback from support interactions and NPS surveys to showcase pain points. Highlight key customer quotes.
- Benchmarks for performance metrics compared to competitors or industry standards.
- Segmentation data on how usage and needs differ across customer profiles. Illustrate with examples.
- Results from any recent qualitative research - user interviews, ethnography studies, etc. Share key insights on behaviors, attitudes and needs.
- Competitive analysis highlighting product differences for core use cases and needs. SWOT analysis.
- Market landscape overview showing evolution and key players. Illustrate with a market map.
The goal is to ground the strategy in the current realities of the product, users and market. The data should reveal strengths to build on along with gaps and opportunities for improvement. Focus on the most strategic insights that will inform key decisions. Visualize and humanize with examples and quotes. Data-driven strategy builds confidence and alignment.
Frame the go-to-market motion that reaches your customers
The go-to-market motion defines how your startup will acquire, activate, and retain customers. This motion should align with your ideal customer profile, jobs-to-be-done, and product differentiation.
To frame an effective go-to-market motion:
- Identify your target customer segments and the channels where they spend time. This includes both digital (search, social, communities) and analog (conferences, publications). Prioritize channels based on reach and relevance.
- Map the customer journey from awareness to purchase and beyond. Outline the key interactions and decision points. Identify where you can insert your messaging to influence decisions.
- Craft messaging and positioning tailored to each channel and stage of the journey. Focus on the functional, emotional, and social jobs your product enables.
- Determine the conversion funnel and key metrics for each channel. Establish benchmarks and optimize for lower cost per acquisition.
- Build a multi-channel ecosystem with consistent messaging but localized interactions. Orchestrate touchpoints to maximize activation and retention.
- Leverage existing customer advocates and user-generated content to build awareness. Aim for sustainable, scalable growth through word of mouth.
- Continuously test new channels, creatives, and partnerships. Balance scalable reach with targeted relevance. Adapt the motion based on customer feedback and market response.
The go-to-market motion is a living plan. Regularly revisit customer profiles, journeys, and channel performance. Optimize the motion for efficient growth across segments over time. An insightful founder connects the dots between product, positioning, and go-to-market.
Segment the market, define your beachhead, and expansion
Segmenting the market is crucial for startups to focus their efforts and resources. Rather than trying to serve every potential customer, startups should define specific target customer segments that align with their product's core value proposition.
The beachhead segment is the initial target customer base that has the highest propensity to adopt your product. This segment should be accessible, large enough to sustain growth, and allow the product to expand to adjacent segments. Ideal beachhead customers resonate most strongly with your product's differentiation and are likely to become promoters.
When defining your beachhead, look for signals like:
- Customers that exhibit the clearest need for your product's key benefits
- Customers that are most dissatisfied with current alternatives
- Customers that have supported analogous innovations in the past
Avoid spreading yourself too thin by expanding into multiple segments too quickly. Stay focused on winning over your beachhead before moving outward. As you gain customer traction, you can define expansion profiles for adjacent segments by evaluating:
- How easily your product can expand to serve this segment
- The size of the expansion opportunity
- How it builds on your beachhead and core product value
Keep expanding into segments that leverage your existing capabilities. But beware of expanding into segments that dilute your product differentiation or divert focus from your core customer value.
Defining your beachhead and expansion profiles allows startups to pursue growth while maintaining focus on delivering core value to specific target users. Get the segmentation right early, and you set yourself up for sustainable scale.
Define the ideal customer profile with expansion profiles (and who isn't)
Defining your ideal customer profile (ICP) is crucial for focusing your product strategy. Your ICP represents your perfect fit customer - the one who gets the most value from your product and is most likely to become a delighted user.
Start by outlining the key attributes of your ideal customer. These may include:
- Demographics (age, gender, income, geography, etc)
- Firmographics (industry, company size, role, tech stack, etc)
- Behaviors (where they go for information, how they make purchase decisions, etc)
- Values and priorities (what matters most to them and motivates them)
Your ICP should represent a tight segment of your broader target market. The more focused, the better at this stage. As you grow, you can expand into adjacent profiles.
For each element of your ICP, define the criteria as specifically as possible. For example, instead of "Fortune 500 companies," specify "Fortune 500 retailers with over $2B in annual revenue."
As you refine your ICP, identify any dealbreakers - attributes that would disqualify a potential customer. This helps avoid wasting time on prospects that will never convert.
Once your ICP is defined, outline expansion profiles representing adjacent segments you may target as you scale. Prioritize expanding into profiles most similar to your ICP first.
For each expansion profile, highlight how their needs differ from your ICP and any adjustments you'd need to make to your product, messaging or go-to-market. This allows you to extend your reach while staying focused.
Revisiting your ICP and expansion profiles regularly ensures you don't lose sight of your ideal customer as your product and company evolves. An overly broad target market can dilute your product value proposition. A focused ICP aligned with your product strategy is key to startup success.t
Define the jobs to be done, alternatives, expected outcomes, and satisfaction
Understanding the jobs your customers are trying to get done is critical for developing products that truly meet their needs. Start by identifying the core functional and emotional jobs your target customers are looking to accomplish.
Then explore the alternatives they currently use to get these jobs done, including your competitors' offerings. Be specific about the pros and cons of each alternative from the customer's perspective. This will reveal where the biggest gaps and pain points are.
Next, define the expected outcomes your target customers have for getting the job done well. What does success look like to them? How do they measure satisfaction? Uncover both their functional and emotional desired outcomes.
Finally, determine what factors drive satisfaction and dissatisfaction when completing the job with current alternatives. Look at elements like convenience, speed, social impact, and emotional state. The more deeply you understand the dynamics of their job, the better you can position your solution.
Getting to this level of clarity on the underlying customer job provides tremendous focus for your product development efforts. You can zero in on the key outcomes to deliver and satisfaction metrics to track. This job-focused lens is invaluable for strategic decision making as your startup grows.
Define product differentiation and principles (and what you're not)
A key part of product strategy is clearly articulating how your product is differentiated from competitors. This differentiation forms the core value proposition that attracts customers to your product over others.
When defining differentiation, dig into the specific benefits and outcomes your product delivers that alternatives cannot. Look at factors like:
- Performance - Where is your product faster, more accurate, or more efficient?
- Capabilities - What can your product do that others can't?
- Design - How does your product's user experience stand out?
- Business model - How does your pricing or delivery model better serve customers?
Solid differentiation is rooted in a deep understanding of your customers' needs and the jobs they are trying to get done. Leverage direct customer research to identify the outcomes they care most about that you deliver uniquely well.
At the same time, clearly articulate what your product is not. Setting boundaries for what you will not invest in or deliver helps focus product development and prevent scope creep. Saying "no" to some things is essential to delivering excellence in your differentiation areas.
Capture this differentiation and focus in a set of guiding product principles that inform decision-making. Principles act as True North, keeping teams aligned on what matters most. They enable autonomy within strategic boundaries. Example principles may include:
- We will not build features without validated customer need
- We focus on performance and accuracy over breadth of capabilities
- We optimize for ease of use even at the expense of advanced configuration
Revisiting differentiation and principles regularly ensures they remain tied to the latest customer insights as the market evolves. They are a compass guiding product strategy, not immutable laws. Adjust them as needed, but resist the temptation to stray from focus without good reason.
Clarify the current go-to-market positioning and targets
The go-to-market strategy outlines how a company gets its product into the hands of customers. As a startup evolves, the go-to-market strategy must adapt as well. It's critical to re-evaluate the current go-to-market positioning and targets on a regular basis.
Start by looking at the overall market landscape and competitive offerings. Have new competitors emerged? Have customer needs or behaviors shifted? This market context will shape go-to-market decisions.
Next, re-examine the target customer segments. Look at current product usage and purchasing trends. Are certain segments growing faster than expected while others lag? Adjust targets and positioning to focus on the most promising segments.
Also scrutinize the marketing messaging and positioning. Is the messaging still resonating with target customers? Or does it need refinement? Repositioning may be required to stand out in an increasingly competitive market.
Evaluate the sales and distribution channels too. Are there opportunities to expand reach through new partnerships or channels? Existing channels should also be optimized by incentivizing partners, improving sales enablement, and streamlining processes.
Finally, keep a pulse on market trends and talk to customers regularly. This close engagement will reveal when it's time to rethink segments, messaging, and channels. Continually optimizing go-to-market will ensure the product reaches the right customers with the right message through the right channels.
Create a strategic roadmap that clarifies investment areas
Creating a strategic roadmap is essential for guiding product investments and aligning teams. The roadmap should connect the dots between the product strategy and execution.
Start by identifying the key strategic initiatives for the next 12-18 months based on the market context, customer insights, and company goals. These initiatives should focus on the most critical areas for growth and differentiation.
For each initiative, define the business objective, target customers, desired outcomes, dependencies, and risks. This information grounds each initiative in strategic context.
Once the key initiatives are defined, sequence them on a timeline to create the roadmap. Aim for 3-5 major initiatives per quarter. Consider dependencies across initiatives and balance short-term and long-term goals.
The roadmap should clarify "what" initiatives to invest in and "when" they are prioritized. It is not a feature list or release plan. Features come later when teams build out plans to deliver the strategic initiatives.
Share the roadmap across the organization for transparency and alignment. Review it regularly and update as needed based on new insights. Use it to guide planning and decision making at all levels.
With a clear strategic roadmap, the product organization can optimize investments, reduce ambiguity, and execute the product strategy together. It becomes a north star for product managers and engineers when defining their work.
Clarify priorities for the game the startup plays
Every startup faces tradeoffs on where to focus their limited resources. Clarifying priorities is essential to make smart bets instead of spreading efforts thinly across too many initiatives.
When defining a product strategy, identify 3-5 priority areas to double down on over the next 12 months. These priorities should align tightly to the specific game your startup plays and your sources of differentiation.
For example, a social media startup's priorities may include increasing engagement through new sharing features, building out a creator monetization model, and expanding to a new content format like video. An enterprise SaaS startup might prioritize expanding upmarket, improving self-serve conversion, and building a network effect.
Be specific in defining what success looks like for each priority area. Set measurable goals for adoption, usage, revenue contribution, or other metrics. Track progress quantitatively each quarter to know if you're winning.
The priorities should reflect the biggest opportunities to advance the startup's position in the market. They require focus over a sustained period of time, not just a single launch. If everything is a priority, nothing is.
Ruthlessly cull priorities that seem important but don't differentiate you or align with the game you play. Don't get distracted by exciting but non-essential efforts that won't move the needle on your goal of winning your startup game.
Stay focused on your top 3-5 priorities for the next 12 months. Say no to other requests. Identify any dependencies across priority areas and set up nimble, cross-functional teams to drive progress. With sustained focus on the right priorities, your startup can win the game.
Assign people areas of focus with Context and Outcome
To execute on the product strategy effectively, leaders need to assign clear areas of focus and responsibility to their teams and employees. This starts with aligning each person's work to specific strategic outcomes and providing the necessary context so they understand how their role ladders up.
When assigning work, leaders should:
- Connect each person's objectives to 1-2 key outcomes in the product strategy. This shows how their work maps to larger goals.
- Provide the context around that strategic outcome, including market dynamics, customer needs, and business objectives. With clear context, teams can make better decisions.
- Define success measures and results for the outcome. This enables the person to track progress and know when the outcome is achieved.
- Equip the person with the resources, data, and decision rights needed to drive towards the outcome. Remove roadblocks and unnecessary constraints.
- Allow autonomy on how the outcome is achieved. The person closest to the work typically knows best how to drive the results.
- Check in regularly on progress and offer coaching. But avoid micromanaging.
- Celebrate wins and course correct together when outcomes are missed. Learning is key.
With clear context, ownership of outcomes, and autonomy, people become highly motivated and aligned to the product strategy. They gain insight into the "why" behind priorities which leads to better judgment calls. And focusing each person on 1-2 key outcomes provides clarity on where to devote their energy for maximum impact.
Team product strategy is about clarity of execution
Effective execution of a product strategy requires each team to have clarity on their specific role and objectives.
While the overarching product strategy provides the big picture context and direction, teams need to understand how their work ladders up to strategic goals. Team-level product strategy starts by connecting the dots between the company's vision and desired business outcomes to the team's focus areas.
It's about translating the high-level strategy into tangible actions that deliver measurable results. Teams define an annual product vision, connect it to a single business objective, identify a target user, and outline key outcomes with clear success metrics.
Bets are placed on how to achieve the outcomes instead of predefined solutions. Roadmaps sequence the bets and activities needed to bring the team's strategy to life. With alignment on context, outcomes, measures, and bets, teams can execute with focus and purpose, advancing the company's success.
Team-level product strategy starts with context and the desired outcome
Once the overall product strategy is defined, it's time to cascade it down to the team level. Each team should be given clear context and a desired outcome to focus their efforts.
The context sets the stage for the team - where they fit into the overall strategy, which segment of users they are focusing on, what the current market conditions are, etc. Make sure the context is specific enough that the team understands their scope and purpose. Avoid vague statements like "improve user engagement" - get into the details of who the users are, what jobs they are trying to get done, and how your product can uniquely help them.
After setting the context, define a single, measurable outcome you want that team to achieve in the next 6-12 months. This gives them a North Star to orient their work around. For example, an outcome could be "Increase retention among early adopter developers from 50% to 70%".
With a clear outcome defined, the team then develops a product vision for how they will achieve it. The vision should be inspirational yet bounded - a rallying cry for the team that also sets some guardrails. For example, "We will become the most loved API for early adopter developers by making it incredibly simple and intuitive to get started."
From the vision, the team then identifies 3-5 bets - the key initiatives or experiments they believe will have the highest impact on delivering the outcome. For each bet, they determine leading indicators or proximate measures to track progress. These measures should tie directly back to the outcome but provide more real-time signals.
The roadmap is then the sequencing and prioritization of the bets over the next 12 months. It brings together context, vision, outcomes, bets, and measures into an actionable plan.
By cascading the strategy in this way, you provide teams agency over determining how they will achieve the outcome, while still aligning their focus and metrics back to the broader product strategy. This results in empowered teams operating with clarity of purpose in service of the greater goals.
Set the annual product vision for the team
The product vision is a concise statement that captures what your product aspires to become in the next 1-3 years. It provides direction and inspiration for the team.
To create an effective product vision:
- Align it with the overall company vision and product strategy. The team's vision should ladder up to the broader goals.
- Make it inspirational yet achievable. Stretch for the future but ground it in reality.
- Focus on the customer and their desired outcomes. Describe how the product will empower users.
- Use clear, vivid language. Choose words that evoke emotion and excitement.
- Keep it to 1-2 sentences maximum. Brevity provides clarity.
The annual cadence of setting the vision provides a forcing function to reevaluate the direction and make course corrections as needed.
When introducing the vision to the team:
- Explain how it connects to strategy and where you want to go. Provide context.
- Share examples of how it guides decision-making on priorities and tradeoffs. Make it actionable.
- Ask for input and feedback from the team. Align on the vision together.
- Revisit it frequently. Refer back to guide choices and promote focus.
An inspiring product vision, renewed yearly, gives the team purpose and energizes them to bring it to reality. It turns strategy into executable goals that advance the product and business.
Connect to the product strategy to a single business outcome
The product strategy should directly connect to a single, critical business outcome for the company. This aligns the work of the product team to the overall goals of the business.
Some examples of potential business outcomes:
- Increased customer lifetime value
- Higher customer retention
- Faster time to value for new customers
- Increased share of wallet
- Expanded total addressable market
- Improved margins
The product strategy should clearly state which one business outcome it is aiming to impact. While there may be many desirable outcomes, choosing a single North Star metric provides focus.
This business outcome should connect to the metrics that matter most to the startup at this stage. For an early stage startup, it may be activating new users. For a growth stage startup, it may be increasing retention.
The product strategy then outlines how the product will directly impact this metric. For example, if the business outcome is to increase lifetime value, the product strategy would describe how the product will add value and create loyalty among users.
Having a single business outcome connects the work to financial results. The product team can tie their work directly to moving the metric that matters most to the business right now. It gives the team focus and aligns their priorities.
The business outcome should remain stable over a 12-18 month timeframe. It provides direction for what the product team should optimize for. But it should be revisited at least annually to ensure it is still the right North Star for where the company is headed.
Connecting the product strategy to a single business outcome provides focus for the product team and alignment to the startup's most important financial metric. It ensures the product work is supporting the current phase of the business.
Identify the specific user from within the ideal customer profile
While the ideal customer profile paints a broad picture of your target customer, it's crucial to also identify specific users that exemplify this profile. Putting a face to your ideal customer brings them to life and helps ensure your team is designing the product experience with real people in mind.
To identify a specific user:
- Review your ideal customer profile and select 1-2 roles that are critical to your product's value proposition. For example, if you are selling to IT departments, key roles might be IT manager, sys admin, and security analyst.
- Search LinkedIn and similar sites to find real people in those roles that work at companies matching your ideal customer profile.
- Reach out to them directly if possible or comb through their public profiles to learn more about their day-to-day responsibilities, challenges, goals, and motivations.
Create 1-pager "user personas" for these specific users, bringing together key details like:
- Name, photo, job title, company
- Goals and challenges in their role
- Quote about what they wish was easier or better
- Key tasks they must accomplish using your product
- Keep these user personas handy as you design your product experience, paying special attention to matching their needs and perspectives.
- Continue expanding your list of specific users over time as you encounter more customers matching your target profile.
Getting to know real users that represent your broader target customer will help you build empathy and stay focused on solving real problems as you execute your product strategy. An ideal customer is an abstraction, but a well-researched user persona makes them real.
Start with 3 outcomes that deliver the vision
When defining a team product strategy, it's important to connect it back to the overall product vision and strategy. A good way to do this is to identify 3 key outcomes that will help deliver the larger vision.
Here are some tips for choosing effective outcomes:
- Focus on the most important goals for moving the vision forward. Resist the urge to include too many outcomes - 3 is a good target.
- Outcomes should produce tangible results and progress. Don't pick outcomes that are vague or difficult to measure.
- Look for outcomes that are ambitious but achievable within a 6-12 month timeframe with the resources you have. Stretch goals energize teams.
- Balance innovation with iteration. Include a mix of brand new outcomes and improvements to existing features.
- Involve the team in selecting outcomes to increase buy-in. But make sure they align to company priorities.
- Connect outcomes directly back to elements of the vision. Show how achieving each outcome contributes.
- Mix individual and team outcomes to recognize work across the org.
- Consider sequencing - what outcomes logically need to precede others?
- Revisit and revise outcomes quarterly. Adjust based on learnings and new data.
Choosing the right 3 outcomes sets up the team for success. They provide focus for delivering on the broader vision. And they create measurable targets for tracking progress and impact. Aligning goals across strategy, vision and outcomes is key to executing product priorities.
Each outcome needs a clear measurement
Defining the right metrics and key results is critical for tracking progress towards your product strategy outcomes. Without clear measurements, you won't know if your bets are moving the needle or not.
For each strategic outcome your team defines, you should identify both a quantitative metric to track as well as qualitative signals to monitor.
On the quantitative side, focus on metrics that are aligned to your core business goals around growth, retention, and margins. Common examples include:
- New customer acquisition
- Engagement and retention of existing customers
- Revenue growth
- Margin improvement
- Lowering churn or increasing renewal rates
- Shortening sales cycles
- Increasing upsells and cross-sells
On the qualitative side, define leading indicators that provide insight into how well your solutions are delivering value and satisfying your target users. Signals to monitor include:
- User feedback from surveys, interviews, support cases
- Reviews and social media sentiment
- Sales feedback on positioning and messaging
- Customer success insights on adoption challenges
- Support case volume and substance
With each outcome, aim to identify 1-2 quantitative metrics and 2-3 qualitative signals to track. Resist vanity metrics that don't directly connect to your core goals. Focus on metrics that matter.
To enable data-driven decisions, your team will need visibility into these metrics on a regular cadence through dashboards, reports, or team meetings. Review progress frequently. If certain bets aren't moving the needle on key results, be ready to course correct quickly.
Well-defined measurements empower your team to execute the product strategy with clarity. They enable you to determine what's working and what's not, and optimize your roadmap appropriately.
Place bets instead of defining solutions
When setting a team product strategy, it's tempting to jump right into defining features and solutions. However, that often leads teams down the wrong path. At this stage, you want to place bets instead.
A bet represents an educated guess at what will achieve the desired outcome, without prescribing how to get there. Bets provide creative constraints for the team and focus their efforts on the problem rather than the solution.
For example, if your desired outcome is to increase new user activation by 15%, avoid defining specific flows or features. Instead, place a bet like "If we optimize the first-run experience for the core jobs new users hire our product for, we can increase activation."
This bet focuses the team on deeply understanding what jobs new users need to get done, without locking them into a predetermined set of solutions. It gives them the flexibility to experiment with different approaches to optimize the first-run experience.
Other examples of good bets:
- "If we improve awareness of our key differentiators in the first 5 minutes of sign-up, we can increase conversion by 20%"
- "If we make our reporting tools more accessible for non-technical users, we can increase retention by 30% for business users"
- "If we optimize our onboarding for the most common use cases, we can cut time-to-value in half"
The key is to ground your bets in customer insights around the jobs, outcomes, and context you identified when framing your product strategy. Avoid leading the team towards any specific features or solutions too early. Let the bets focus them on deeply understanding the problem first.
With clear bets in place, teams can rapidly experiment and iterate to find creative solutions that truly deliver the desired outcome. And by measuring results against clear outcome metrics, you'll know if your bets pay off or if you need to adjust.
Placing bets liberates teams to think big, start small, learn fast, and build solutions focused squarely on achieving the strategic outcomes.
Teams Frequently Review with Founders and Integrate Feedback
Once a team has created their initial product strategy proposal, it is critical that they review it frequently with company founders or product leaders and integrate feedback.
This review and feedback process serves several important purposes:
- It ensures alignment between the team's proposed product strategy and the company's overall product strategy and vision. The founders and product leaders have the 30,000 foot view of where the company is headed, so they can provide guidance if the team's proposal veers off course.
- It enables the founders and leaders to share additional context, data, or insights that the team may have missed. The team has deep knowledge of their area, but the executives often have additional market data or customer insights that can further refine the strategy.
- It allows the founders and leaders to probe the team's thinking and proposed bets. By asking questions and pushing on assumptions, they can pressure test the logic and help identify flaws or risks early.
- It gives the team an opportunity to get buy-in and validation. Presenting the strategy and getting the founders' approval increases confidence and conviction during execution.
- It fosters collaboration and cross-pollination between teams. As multiple teams share their strategies, they can identify potential synergies or conflicts across product areas.
- It develops the strategic thinking and communication skills of the team. By teaching them how to craft a cogent strategy and "sell" it to leadership, it expands their strategic abilities.
To leverage these benefits, it is wise for teams to review their product strategy frequently during its formation - at least every 1-2 weeks. This allows for regular course correction vs. large, last minute changes. Once finalized, quarterly reviews help maintain alignment and sharing of learnings with larger audiences.
The team should come prepared to each review with an open mindset, ready to integrate feedback and evolve the strategy. They should capture notes during the session and designate someone to incorporate the guidance back into the strategy framework and documents. With each passing review, the strategy will become more refined, aligned, and impactful.
Align team product strategy with Context, Outcomes, Measures, and Bets
The team product strategy aligns with the broader company product strategy through four key elements - context, outcomes, measures, and bets.
- Context and Outcomes
The context and desired outcomes are defined by product leaders and flow down to the teams. This provides the framing and goals for what the team needs to accomplish.
- Measures and Bets
The measures and bets are created by the teams themselves. Measures define how the outcomes will be tracked to determine success. Bets are the ideas and solutions the team will pursue to achieve the outcomes.
Bringing these four elements together is how teams execute on the overall product strategy with clarity and empowerment.
The context from leadership gives the background on market conditions, customer needs, and company priorities. Outcomes state what needs to be achieved in clear, measurable terms.
With this framework, teams can then brainstorm solutions that address the outcomes. These potential bets are ideas for features, campaigns, partnerships - anything that could help accomplish the goals.
To determine which bets to pursue, teams define quantitative and qualitative measures tied directly to the outcome targets. This could include usage metrics, customer satisfaction scores, revenue, etc.
The final team product strategy will outline the key measures for success and the bets placed to achieve the outcomes. With clear context from leadership and measurable outcomes defined, teams have everything they need to build and execute fantastic products.
This alignment between strategy and execution is what enables companies to scale successfully. Leaders set the vision, teams have the autonomy to determine how to get there. With context and outcomes, measures and bets, product strategy flows smoothly from the top down and bottom up.
The roadmap is the sequencing of the team product strategy
The product roadmap is the visual representation of how the team will execute on the product strategy over time. It sequences the strategic bets and outcomes defined in the team product strategy into a timeline that communicates planned releases.
The roadmap serves three key purposes:
- It aligns the team to the strategy by connecting their day-to-day work on features to larger strategic outcomes. Each initiative on the roadmap can be tied back to a specific desired outcome and bet defined in the strategy.
- It provides visibility into planned releases so stakeholders understand what is coming and when. The roadmap gives transparency into the team's plans and facilitates coordination across teams.
- It illustrates tradeoffs and prioritization. The sequencing of items on the roadmap demonstrates what the team is prioritizing versus deprioritizing based on the strategy. It visualizes how the team is investing its time and resources.
A roadmap is a living artifact that will evolve as the team learns and the market changes. But it should always clearly link back to the strategic outcomes, guiding the team in focusing their efforts on the bets most likely to move the needles on those goals. The cadence of roadmap updates should align with the cadence of strategy updates.
Keeping the roadmap tied tightly to the team strategy ensures that planned features connect to larger goals versus becoming a wishlist of disconnected ideas. The roadmap turns the why of the strategy into the what and when of executable releases over the next 12-18 months.
Creating your internal marketing campaign
A well-crafted product strategy is invaluable for aligning your startup, but creating an elaborate document doesn't guarantee it will be read or internalized. The goal is to regularly communicate the essence of your strategy in the most impactful way.
This involves understanding how your team members best receive information, tailoring the delivery for their needs, and reinforcing through continual touchpoints.
Like an internal marketing campaign, think of creative ways to bring the strategy to life that resonates with your audience. From presentations to one-pagers to Slack discussions and more, put thought into sharing your strategy often. This section will explore methods for making your product strategy stick within your startup.
The value of a well-crafted product strategy
A well-crafted, clearly communicated product strategy is invaluable for aligning your startup around a common vision and goals. It provides clarity on your target customers, their needs, your product's unique value, and your path to sustainable growth.
Without a clear strategy, startups risk wasting time and resources building features that don't move key metrics. Teams end up working in silos instead of collaborating towards shared objectives. Messaging to customers is disjointed and confusing. Core assumptions go unchallenged. Opportunities are missed.
An effective product strategy brings focus. It rallies your company around a shared understanding of your customers, market, and product vision. This alignment enables more efficient execution and decision making at all levels.
A strong strategy also facilitates buy-in across the organization. When teams understand the reasoning behind priorities and plans, they are more motivated to deliver on them. Strategy provides the "why" behind the "what" and "how".
Well-crafted strategies directly address the startup's biggest risks and assumptions. They are living documents, updated frequently as new learnings emerge. Leaders actively communicate them through presentations, documents, conversations, and examples.
In summary, an insightful, clearly articulated product strategy is the compass guiding a startup's growth. It aligns the organization, facilitates execution, and adapts to new learnings. Investing in crafting and sharing your strategy pays dividends in focus, quality, and speed.
10-page written documents are not for everyone
Written documents have their place, but can be overwhelming and inaccessible. Focus on the core insights and data.
Visuals are powerful. Use simple charts, graphs, and diagrams to communicate key points. A one-page visual "cheat sheet" can be more effective than pages of text.
Tell stories. Anecdotes about real customers and their needs make strategies relatable. Put faces to data.
While a 10-page written document may work well for some teams, it's important to meet your audience where they are and use formats that resonate.
Consider these alternatives:
- Loom Videos
Create short, engaging videos that communicate key elements of your product strategy. Videos allow you to convey emotion and energy in a way written documents cannot.
- Interactive documents
Tools like Notion, Figma, and Coda allow you to create interactive product strategy documents with two-way collaboration. This can increase engagement and make the strategy feel more dynamic.
- Storytelling and narratives
Craft compelling narratives around your product strategy, using storytelling techniques. Stories stick in our minds better than bullet points. Focus on the people using your product and their goals.
- Workshops and working sessions
Don't just present the strategy - involve teams in creating it. Host interactive working sessions to align on strategy. This builds understanding and buy-in.
- Comics or visuals
For visual learners, communicate your strategy through comics, illustrations or visual frameworks. Drawings and visuals make key points more memorable.
The medium matters, so take time to understand how your team best absorbs information.
Match the format to your audience's preferences. A product strategy presented in the right way for your team is more likely to be understood and acted upon.
Setting strategy is not a one-time event
Setting product strategy is not a one-time event. The most effective product organizations view strategy as an evolving body of knowledge that gets richer over time. They set aside dedicated time to think strategically on a regular basis.
There are a few key ways to turn strategy into a continuous process:
- Present product strategy regularly at multiple cadences - weekly, monthly, quarterly. Use these touchpoints to share the latest insights, test new ideas, and realign as needed. Make strategy part of the ongoing conversation.
- Create opportunities for on-demand alignment. Make your strategy documentation easy to access and reference. Foster a culture where team members proactively seek context from product strategy.
- Iterate on the core elements of strategy. Revisit your market segmentation, expansion path, ideal customer profile. As you learn more, you may need to reframe or expand your target market.
- Connect strategy to execution through regular roadmap reviews. This ensures you are sequencing initiatives in the right order based on strategic priorities.
- Treat annual planning as a moment to evolve strategy, not start from scratch. Set aside time for reflection and outside-in thinking. Then build on what you've learned, rather than reinventing the wheel.
- Use every project post-mortem and customer interview to enrich strategy. Be relentless about capturing insights. Look for opportunities to test and improve your assumptions.
With this mindset, product strategy becomes a living, breathing artifact that provides guidance and inspiration to the entire organization. It develops meaning and gravity over time as the source of truth on the problems you are solving for customers.
Present product strategy weekly, monthly, quarterly
As your startup grows, aligning the entire company around product strategy becomes increasingly important. Product strategy should not just be a one-time event or annual presentation. To drive execution, strategy must be communicated frequently across the organization.
Here are some best practices for sharing product strategy regularly:
- Weekly product strategy syncs - Host a short weekly sync for product leaders and key executives to review the current product strategy priorities and discuss any changes in market context. Keep these meetings high-level and focused on strategy, not execution details.
- Monthly all-hands - Do a monthly product strategy update as part of your all-hands meeting. Share 3-5 key elements of strategy and remind employees how their work connects back to strategic goals. Keep it engaging with compelling examples and stories.
- Quarterly strategy reviews - Every quarter, do a comprehensive review of the product strategy. Share progress made, changes in market landscape, and any strategy adjustments. Involve key leaders across functions like engineering, design, and go-to-market.
- Always-on documentation - Maintain an always up-to-date product strategy document that all employees can access. Use tools like Notion or Confluence to make it easy to find and reference. Update frequently as you learn.
- Office hours - Product leaders should offer open office hours where anyone can ask strategy questions or propose new ideas. Make yourself available to connect strategy to individual's work.
- Brown bag lunches - Host optional brown bag sessions to do deeper dives on elements of strategy. For example, walk through the ideal customer profile or a priority user journey.
- Surveys - Use quick pulse surveys to gauge employee understanding and alignment with product strategy. Address any disconnects quickly.
The goal is to establish product strategy as an ongoing conversation, not a static document. Employees at all levels should understand how their work ladders up to strategic goals. This level of transparency and alignment will accelerate execution as your startup scales.
On-demand product strategy alignment
In larger organizations, it can be challenging to keep everyone aligned on the product strategy. With thousands of employees spread across multiple offices and teams, many may not regularly engage with the core product strategy documents.
Here are some tips for enabling on-demand alignment:
- Create a central digital hub for product strategy information and documents. This could be a wiki, shared drive, or intranet site. Make it easy to find and access.
- Distill the core elements of strategy into reference cards, one-pagers, videos, and other condensed formats. These are handy for quick alignment.
- Identify key messages and themes that regularly need reinforcing. Turn these into campaigns with visuals, examples, and talking points to share broadly.
- Equip leaders and managers to communicate strategy through training, talking points, and Q&A preparation. Cascade the messages through the organization.
- Use interactive tools like polls, quizzes, and commenting to engage employees on strategy and surface questions.
- Create a product strategy email newsletter employees can subscribe to for regular updates.
- Host "ask me anything" forums with product leaders around strategy. Make them virtual for distributed teams.
- Feature employees from different functions sharing how they connect their work to strategy.
- Celebrate and highlight teams and individuals who exemplify the product strategy in action.
- Treat strategy like an open source project that everyone can contribute to by refining, clarifying, and improving.
The goal is to permeate the product strategy throughout the organization. This allows any employee to quickly re-align or get up to speed as needed. A culture of transparency where everyone understands the strategy will enable greater autonomy, decision making, and innovation.
Optimize impact and culture
A well-defined product strategy is just the beginning. To truly gain an edge over competitors, companies must build a culture focused on strategy impact and continuous optimization.
Product leaders should instill strategic thinking at all levels, empowering teams to make decisions aligned with the broader vision. This ensures strategy cascades smoothly from the top down. Leaders must also solicit ongoing feedback, measuring qualitative and quantitative insights to refine the strategy over time.
The most successful product companies turn strategy into a living document, continuously updated based on market learnings. They foster healthy internal competition around critical metrics, challenging teams to outperform each other on key outcomes.
This section will cover best practices for optimizing your product strategy and building a culture focused on strategic impact. We'll explore methods for measuring success, tips for strategic leadership, and processes for keeping strategy fresh and relevant in a rapidly evolving market. With the right culture and commitment to optimization, your product strategy can evolve from a static document into a dynamic competitive advantage.
What product strategy success looks like
A successful product strategy is one that helps a startup scale efficiently and sustainably over time. It provides a clear path for prioritizing investments and executing on the company's vision. Here are some signs your product strategy is working well:
- Alignment across the organization. Everyone understands the target customers, their key jobs-to-be-done, and how the product will uniquely deliver value. There is widespread buy-in on strategic priorities.
- Focus on the vital few goals. Resources are concentrated on the initiatives that matter most right now, not spread thin across too many disjointed efforts. Teams work towards a shared overarching objective.
- Informed roadmap. The product roadmap reflects strategic choices based on market insights and validation. It focuses on delivering differentiated value vs. chasing competitor features. New ideas are evaluated for strategic fit.
- Effective go-to-market. Marketing, sales, and customer success efforts align with the target segments, positioning, and product direction in the strategy. Messaging resonates with the jobs-to-be-done.
- Value creation for customers. Usage, retention, and satisfaction trends confirm the product is effectively addressing customer needs and desired outcomes. Feedback validates strategic assumptions.
- Efficient growth. Key metrics like burn rate, churn, CAC payback period, and gross margins are healthy. The startup is acquiring and monetizing customers in a capital efficient way.
- Adaptability. The strategy is a living document, continuously revisited and updated. The startup can pivot when new learnings or market changes warrant it.
Getting to this level of strategy excellence is hard work. But the payoff for startups who invest in it is huge in terms of focus, execution, and scalable growth. Use these signs of success to benchmark your progress.
A strategic culture from leaders to teams
A product strategy is only effective if it permeates the culture of the entire organization. Leaders must model strategic thinking and alignment for teams to follow.
Leaders as Chief Strategists
The executive team sets the tone by being chief strategists for the company. They must:
- Constantly evaluate the market context and competitive landscape
- Connect company vision to strategic priorities
- Frame problems through the lens of strategy
- Ask questions to illuminate blindspots
- Challenge assumptions with data and insights
- Communicate context frequently to the organization
When leaders embody strategic thinking, it gives teams permission to think strategically too.
Strategic Thinking as a Core Competency
Strategic thinking should be viewed as a core competency, not just the domain of executives. Leaders should provide frameworks, data, and insights for teams to form perspectives.
Product and engineering teams especially need to align their goals to strategic outcomes. Enable them to:
- Understand the target users and their jobs-to-be-done
- Identify the key outcomes that fulfill those jobs
- Evaluate how their solutions deliver on strategic differentiation
- Connect their work to business impact
Cascading Strategy Across the Organization
The product strategy should cascade from executives to teams:
- Executives set the multi-year context, priorities, and goals
- Directors define annual visions and focus areas for their function
- Managers align team objectives and key results to those focus areas
- Engineers deliver solutions that trace back to strategic goals
Alignment at each level is critical for execution.
Measuring Strategic Impact
To build a culture of strategy, measure strategic impact, not just output. Track how well solutions deliver on differentiation, defend against competition, and create leverage across the business.
Celebrate when teams make decisions with strategy in mind, not just execution speed.
With alignment, context, and measurement, strategic thinking will permeate your startup's culture.
Measure success with qualitative and quantitative insights
As you execute on your product strategy, it's critical to measure progress and outcomes both quantitatively and qualitatively. This provides a holistic view of how well your strategy is working.
On the quantitative side, identify 3-5 key metrics that indicate success for your top strategic priorities. These may include metrics like revenue growth, retention, engagement, acquisition cost, etc. Set goals for where you want each metric to be in 3, 6, 12 months. Track them closely to understand if you're moving the needles.
Complement this with qualitative insights through methods like user interviews, focus groups, surveys, and usability studies. Ask questions like:
- How well are we delivering on our intended user outcomes?
- Where are users still struggling?
- What delights users? What frustrates them?
- How could the user experience be improved?
- How does our positioning resonate?
- What features are most valued? Least?
Look for patterns and insights that either validate or contradict what the data is showing. This gives you a more nuanced view into how well your strategy is working.
Set up a cadence for collecting qualitative insights, such as bi-weekly user interviews, quarterly focus groups, annual surveys. Make this an ongoing effort, not a one-off.
Finally, triangulate the quantitative data and qualitative insights to form a comprehensive picture. Identify areas where they align or diverge. Use both to iterate on your product strategy and execution. With this balanced approach, you'll continually refine your strategy based on real user and market feedback.
Keep score across JTBD and segments
To optimize your product strategy over time, you need to continually track performance across the jobs-to-be-done and market segments you are targeting. This allows you to double down on what's working and course correct where needed.
Track Job Success Metrics
For each primary and secondary job-to-be-done you are enabling, define 1-2 metrics that indicate success. These should tie directly to the outcomes customers desire. For example:
- Reduce operational costs - measure cost savings
- Increase sales conversions - measure sales conversion rate
- Automate manual processes - measure time savings
Regularly review the trends on these metrics. Are you moving them in the right direction and at the right pace? If not, you may need to refine your product experiences or messaging.
Analyze Segment Adoption and Expansion
Within your target segments, track:
- Acquisition - the % of the segment you are acquiring as new customers
- Activation - the % of acquired customers that become active users
- Retention - the % of customers that continue using and paying over time
- Expansion - the % of customers increasing usage or spend over time
Look at these metrics by segment and cohort to spot adoption trends. Slow uptake in a segment may indicate improper positioning. Low retention may signal you are not adequately solving needs. Lagging expansion could mean it's hard to broaden usage.
Use these insights to prioritize improvements for each segment. The best products become ingrained in customer workflows.
By continually tracking performance on jobs-to-be-done and in target segments, you can optimize product-market fit over time. Measure what matters, analyze the trends, and focus your strategy.
Continuous market benchmarking
Benchmarking the competition and tracking market trends is a critical ongoing activity for any startup. As your product and company evolve, so too will the market landscape. What you learned 6 months ago about the competitive space may already be outdated. That's why continuous market benchmarking is so important.
Here are some tips for effective ongoing market benchmarking:
- Set up news alerts and Google alerts for your product category, competitors, and related technologies. Review these news hits weekly to stay on top of the latest developments.
- Subscribe to industry publications, analyst reports, and blogs to get regular market insights. Highlight key facts and trends to share with your team.
- Attend industry conferences and events. Take lots of notes and photos. Debrief with your team on key takeaways.
- Regularly review competitors' websites, blogs, pricing pages, and marketing materials. Document their messaging, features, and any changes.
- Try out competitor products yourself every quarter. Note where they are ahead or behind on specific capabilities.
- Interview 5-10 new customers each quarter to get their perspective on alternatives they considered.
- Survey your customers 2-4 times per year on satisfaction, features they use most/least, and where you can improve.
- Every 6 months, re-evaluate your market segmentation and beachhead focus. Have new niches emerged?
- Build a market tracking dashboard to capture metrics like market growth rates, search volumes, social mentions, hiring trends, funding rounds, etc. Review the dashboard monthly.
- Designate a rotating market watcher on your team each quarter to deeply research a competitor and brief the team.
- Hold a quarterly strategy meeting to discuss market changes and refine your product roadmap accordingly.
Continuous market benchmarking ensures your startup makes strategic decisions based on the most current competitive data, not outdated assumptions. By making it a habit, you'll avoid being blindsided and consistently advance your product thinking.
Continuous product strategy
Product strategy is not a static document or a one-time event. It is an ongoing process that evolves as your understanding of the market and customers grows. To keep your product strategy fresh and relevant, you need to make it a continuous practice across the organization.
Iterate on Strategy with New Learnings
As your team conducts user research, gathers feedback, and analyzes data, new insights will emerge about customer needs, market dynamics, and opportunities. Treat these learnings as inputs to iterate on your product strategy.
For example, you may discover an adjacent customer segment that values your product in an unexpected way. This could open up a new market opportunity to expand into. Or you may find that a core assumption about your target customer's needs is incorrect, requiring a re-evaluation of your positioning.
Build in regular check-ins to review the strategy as part of your team's cadence. Revisit core elements like target users, their jobs-to-be-done, and product differentiation. Ask whether the strategy still aligns with the latest insights.
Connect Strategy to Roadmaps
The product roadmap should clearly link back to strategic priorities over the next 1-2 years. As new initiatives and releases are defined, ensure they trace back to important goals and outcomes called out in the strategy.
Review the roadmap regularly to validate strategic alignment. If new roadmap items don't map to the strategy, that is a cue the strategy may need updating based on evolving circumstances.
Cascade Strategy Across the Organization
Product strategy should not live in a vacuum. The insights and direction should be socialized and connected to the work of other teams like Marketing, Sales, and Customer Success.
Share key elements like target users, messaging, and differentiators to align go-to-market activities. Conduct cross-functional reviews of the strategy as it evolves to ensure other groups integrate the strategic shifts.
Benchmark and Trend Data
Leverage market data, customer feedback trends, and product analytics to benchmark performance over time. Track key metrics related to your strategic goals around acquisition, engagement, revenue, and retention.
Analyze trends to see where you are excelling or falling behind. Review competitive dynamics. This quantitative view complements insights gathered from qualitative research.
Revisit and Refresh Annually
Set aside dedicated time at least once a year for an overall strategy refresh. Leverage all the insights gathered over the past 12 months. Take a step back to review fundamentals and determine if any shifts are needed.
Annual offsites focused on strategy are a great forcing function to re-calibrate. Involve executives along with team leads across functions.
Product strategy is a living, breathing process that evolves with your product and business. By making it a continuous practice, you ensure your strategy is always guiding the organization in the right direction.
Welcome to the Colosseum, may the fit survive
Finding success is an ongoing battle to find product-market fit and scale your startup. Much like the gladiators who fought in the Roman Colosseum, startups must compete fiercely to survive and thrive.
The startup arena is not for the faint of heart. You must be nimble yet strategic, scrappy yet visionary. Every day brings new competitive threats and shifting customer demands. There are no timeouts or halftimes - you must be prepared to adapt and execute at a moment's notice.
To win in this environment requires resilience, creativity, and relentless focus on delivering value to customers. You can't afford to rest on your laurels or grow complacent. Hungry startups are lurking, ready to out-innovate you.
Treat product strategy as a competitive sport. Obsess over beating the competition by solving pressing customer problems better than anyone else. Let every team member bring their A-game each day. Instill a culture of positive paranoia, where complacency is the enemy.
Celebrate every hard-fought achievement, but stay humble and hungry. The minute you think you've arrived is when you expose an opening for disruption. Keep evolving your strategy based on changing market realities and new customer insights.
The startup colosseum is not for the meek or rigid.
Success goes to those who combine passion, vision, agility, and grit.
May you stay fit to compete at the highest levels.
Let the battles commence, and may the fittest products survive – and thrive.
See you in the arena.