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Strategy & Product Plans: Are the Dots Connected?
Most high technology product companies have a strategic plan that includes goals for revenue growth, new customers, market share and other quantifiable metrics. But a huge disconnect often exists between the strategic plan and product plans. The result is an organization going in many different directions.
Why the disconnect? In most cases, strategic plans don't include named market segments and/or a product roadmap to support the chosen markets. Consequently, each product group is marching to a different drummer, the sales force is thoroughly confused and marketing is forced to create a "one size fits all" message that says nothing.
The Reader's Digest version of a strategic plan boils down to named market segments in order of priority, a product roadmap, sales, service and marketing initiatives to support the chosen market segments, and an organizational alignment plan to enable execution of the strategy.
If you have a strategic plan that encompasses these components, connecting the dots to your product plans is simple.
3 Steps to Connect the Dots
1. As part of your strategic plan, prioritize named market segments and create a product roadmap that prescribes product solutions accordingly.
2. Use the product roadmap as the starting point for each product plan and scope each product release according to the biggest problems you're solving for the chosen target markets.
3. Review product plans collectively across all product lines to make sure they're aimed at the same target.
If you're acquiring new customers there is no down side to this approach. Your marketing messages and lead generation programs will pull the sales team in the same direction the product is going. By default, new product capabilities will be desirable to the customers you're targeting and result in shorter sales cycles and fewer one-off development projects.
Making the Transition
While these three steps might seem like common sense, the difficult part is the execution. If your current modus operandi is "be everything to everyone," the shift to a market segment mindset will be difficult because it involves tough decisions with existing customers, the current sales pipeline and development projects that have already been started.
Unless you have an extremely high threshold for pain, don't try to make the transition with one flip of a switch. Devise an evolutionary plan with a relatively short timeline. Once you have a clear concise decision on market segment priorities, subsequent decisions on product direction, marketing messages and operational alignment will be obvious.
If your strategic plan and product plans are disconnected, signup for Product Management University Onsite, Online or Open Enrollment. You'll learn simple and useful techniques for aligning your strategic plan to your product plans.
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