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May 8, 2015 By Siobhan Leave a Comment

Product Management: How can you make sure investors love your strategy?

What Investors Care About?

Investors hate missing out on a great opportunity but equally they fear making a bad investment. For Product Management it is essential that they consider the needs of this crucial stakeholder.

So what are some of the things that investors think about when investing in product companies…

  • The challenge the product is trying to address and the evidence you have captured that this is a challenge the market wants solved
  • The size of the market opportunity
  • Any early traction you have obtained for your product
  • Your articulation of the value you bring to the market and how you will monetise this value
  • Why your business is uniquely different and how you compete with others?
  • Why you think people will be compelled to buy from you? Who your buyers are and what do they care about?
  • What team is in place to execute on the product strategy and how effective are this team?
  • Your strategy for marketing communications and sales
  • Your strategy for partnering with others to gain market traction or to execute on your product strategy

If this is what investors want to understand about your business, then how much attention do the leaders in your business, including Product Management give these areas?

As someone who has helped startups with their business plans and product strategy I understand that to capture the interest of the investor community it is hugely important to articulate the growth opportunity for your business through a business plan and associated Product Strategy.

Articulating the market opportunity and your value proposition for each target market is crucial. Clearly representing the challenge you address for your target market, capturing insights from this market and understanding how you will capture market interest to drive revenue growth is essential to ensure you get the kick-start of investment you need to scale your business.

Strategy is based on a differentiated customer value proposition. Satisfying customers is the source of sustainable value creation.” 

Robert Kaplan and David Norton (Strategy Maps)

Of course your Product Strategy needs to consider areas such as your mission and vision (with associated metrics of success), segmented market opportunity, your pricing strategy, your positioning of value for each target market, your competitive differentiation, any partnership strategy and a link to any sales and marketing strategies. You also need to highlight the key metrics that you will monitor to ensure product success – recurring revenue goals, customer acquisition rates, etc.

Everyone in the organisation needs to have sight of the key objectives (OKRs or SMART metrics of success) that the business is aiming to achieve at a high level so that they can define and align their own metrics of success to drive these corporate objectives.

A company that has captured initial investment through a clearly defined business plan and product strategy will move quickly to focus on the execution of this plan – hiring engineers, marketers and sales personnel. Keeping these resources aligned to deliver on the promises made to investors is now crucial!

It is really important that you can demonstrate to an investor that everyone in the business is aligned around the product strategy and that you can show how cross functional goals and initiatives are aligned. So it is important to define clear corporate goals and objectives that can be cascaded throughout the business. This ensures that you:

  • Create an aligned and collaborative organization that shares a common understanding of how the business will create value
  • Ensure the organization remains focused on corporate strategic objectives
  • Maximize ROI for corporate resources and ensure all resources are delivering effectively
  • Support decision making for all employees
  • Enable Sales and Marketing to clearly position the products and solutions to the target market and thereby drive revenue growth

How can you make sure you are investor ready?

Whether you are a startup or SME you should take the time to ensure that you have captured the right insights from the market to create a clear and compelling Business Plan and Product Strategy.

There are so many things that Investors care about but you need to focus on what is key in the context of your industry.

I have recently spent time running strategic insight gathering and value proposition workshops with companies across multiple industry sectors. The exercise has been enlightening for everyone – particularly those companies that have spent a lot of time focusing on the “execution” rather than the “strategic” side of product management and for those companies that have a requirement for near term investment. These workshops support the company with the insights that are needed to create a compelling product strategy.

Contact me siobhan@integratedthinking.ie for more details on how your business can capture market insights to drive future opportunity.


Filed Under: Management Strategy, Marketing, Product Management, Product Manager, Product Mentor, Product Strategy, Product Strategy, Strategic Marketing Tagged With: Alignment, Business Plan, Collaborate, Customer, Investor, Market, Product Management, Product Manager, Product Mentor, Product Strategy, Strategy, Value Proposition

January 28, 2014 By Siobhan

The Value of In House Product Management Mentoring

mentoringMany companies over the last few years have made the bold move to establish a product management discipline in their organization. They understand that to be successful they need to:

  1. Create products or services that customers love.
  2. Ensure the organization is marching not only in the “right direction” but in the “same direction.”
  3. Work to a clearly defined business model.

This requires someone to hold it all together and keep the company focused. As Steve Jobs said “You need a very product-oriented culture… lots of companies have great engineers and smart people. …there needs to be some gravitational force that pulls it all together.”

Initially, when the company is small, the CEO or CTO will fulfil this role – but as the company begins to scale it is important that the CEO looks for support. Adding a product manager to the team is the right next step… but what exactly does this product manager do and how will they integrate with the existing team?

Often there are a myriad of political obstacles that need to be addressed as people’s roles change and the organization settles into a new way of thinking. There are a lot of functions the product manager “could do” – the question is what functions “should they do” that align best with the organization’s structure and vision.

Although there are many organisations that provide great frameworks to help product managers understand all aspects of their role,  quite frankly the breadth and depth of areas to be covered would give any new product manager palpitations! You would need to be superhuman to address everything effectively! So, how do you decide which aspects of the framework make sense for your new product manager? Well, it depends on the stage of your growth as a company.

I think it is best to start with a “lean” approach to product management – don’t overwhelm yourself and your new recruit from day one. For many new and established product managers they exist in a state of constant bewilderment and despair as the enormity of the role becomes apparent to them. They often have a very unclear definition of the role, unachievable expectations are set by senior leadership or often no expectations are set at all (which is even worse), there is no clear prioritisation of projects and they have to juggle the demands of a sales and engineering team who expect their undivided attention 24/7. This situation can become a cycle of despair where the product manager becomes increasingly disillusioned and the leadership team begin to dismiss the product manager as ineffectual.

Things do not have to be this way – understanding who does what in your organisation and clearly defining the role and boundaries for each group is a first step. Then, applying a structure and discipline to product management that aligns with the stage your company is at is crucial.

Helping the product manager to apply methodologies in areas such as portfolio management, value proposition creation, requirements management, agile product management, customer validation, ideation, ROI analysis, sales management and leadership alignment will undoubtedly help alleviate the pressure.

As someone who has performed the role of product manager and ultimately managed both a portfolio of products and a team of product managers I understand more than most the demands of the role. I learned quickly that applying structure and discipline ensured myself and my team could work effectively.  We can all read books or attend courses that will give a good grounding in the product management discipline but the application of this discipline and the understanding of what works in reality comes with experience.

Don’t wait until either you or your product managers have reached the point of despair – seek the support and help of those who have done this before, who have been at the coalface and who understand the demands of the role. I loved this quote from Eric Ries of the Lean Startup because it is so applicable here – “Start-up success is not a consequence of good genes or being in the right place at the right time. Success can be engineered by following the right process, which means it can be learned, which means it can be taught.”

Filed Under: Leadership, Management Strategy, Mentoring Tagged With: Alignment, CEO, Collaborate, Market, Mentor, Product Manager, Strategy

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