Which way out? - The Importance of Exit Criteria

One of my fundamental criteria for starting a new product release is being able to define the Exit Criteria.

As a rule of thumb it is being able to answer the following five simple questions with accurate and complete answers (the questions are simple - the answers less so ...)

1. WHAT? - What are we building? What the key features and product values that the release will deliver?
2. WHY? - What are the key benefits that the customer will derive from the product when it is released? What are the values and advantages that the release will bring to the product family/company?
3. WHO? - Who needs the product? If this is a release for the market then define the customer - specific accounts or profile the type of user that the product is targeting. Also state who will help with the necessary integrations, GTM efforts and other internal stakeholders. If this is an internal development effort then who is the internal sponsor and who is tasked with supporting the integration and deployment.
4. WHERE? - Where should the product be delivered? Describe the internal or external deployment scenarios and any pre-requisites that will make the difference between a successful launch and failed one.
5. WHEN? - What is the timeline for this release? When must the product be in the marketplace or delivered internally? 

Once defined these criteria should be critically analysed to ensure that they are coherent and meet the SMART (Specific, Measurable, Achievable, Relevant & Time-bound) criteria. Will they meet the overall objectives? Will the product as defined meet customer expectations? Is the product definition correct? Can it be delivered in the time-available? Is the target customer the correct one to achieve the overall aims? Is the target environment feasible. Answering these questions will often force a rethink and changes, but should result in a clear definition of expectations. The entire team can adopt the final definition adding purpose and clarity. It is also critical in managing any changes that maybe needed during development


Overall the Five W's set out to define what does the product need to do, by when in order to make somebody very happy?

In my experience this is an iterative process, but, answering these five simple questions adds significant clarity to the product objectives and can make the difference between a successful product and a poor executed product that takes significantly more time and resources to develop and then fails to deliver most of what was expected.

The Value of Business Value

Business Value is often the holy grail of Product Management (and rightly so) especially when working in Agile.

Business value is genuinely very important; product managers are tasked with building products that offer some real value to somebody. Business values impact almost everything that we do with our product - its positioning, its go to market, its roadmap and its customer centric focus. These core elements of the art of product management are derived from and driven by the business values.

Classically we build things that people want to buy, advancing the business plan of our company. In other cases we may be trying to build infrastructure or experimenting with some novel ideas. However, in almost all cases we can define the objective with business value even if it is a stage or more removed from an actual sale to a customer. I plan to explore business value in these indirect cases in a future post.

So given that business value is one of, if not the primary objective of our professional lives it seems surprising how little attention many of us pay to the business value. Sure we read and write documents with some lip service to the business value. When we do a kick-off meeting we feel forced to generate a couple of statements on the subject and every so on a senior manager will feel the need to talk to even more senior people and have a mini crisis trying to generate a set of business values across all the products that they sponsor. It is possible that this is mainly a feature of big organisations; but my suspicion is that it is a common feature. It is more fun to build and design than to make bold declarations of future business value.

The crux of the issue is that it is really very important and on the critical path of everything that we do. If you are lucky enough to be constantly customer facing then you probably have a pitch maybe even several for different segments, but for the rest of us it is rarely on the agenda.

So here is an idea that I plan to put into action tomorrow - to have a slide deck or excel or some other file with every product that I manage together with its business value. So far, relatively easy, now for the hard part -  to try to keep it updated - say four times a quarter. At most reviews I think it will just be a critical read through and add the review date; but every so often things will change.

I think that this exercise will help in a few ways -

• We will really understand why we are building the product
• We will be able to remain true to the objective and not get inadvertently side-tracked in the natural drift of a dynamic product
• We will make any necessary changes actively after due thought 
• Of course finally we will always be able to provide answers to anybody who needs to know right now

Social Media Revolutions

In a recent post I discussed how Social Media has become an important marketing tool that is often missed or off limits to most product marketers in larger companies. Using them correctly, I believe can increase customer engagement and simplify product positioning.

Over recent months we have seen the power of social media to command people's attention and to motivate them to take part and be involved in activities. Many of these activities were previously well out side their normal comfort zone and in many cases caused them to endanger their lives. I am, of course referring to the Arab Spring and to a lesser extent to the on going Israeli Summer.

In the Arab Spring regimes were overthrown, or revolutions brutally suppressed. In the Israeli Summer on the other hand, we have mass demonstrations that are calling for a new social agenda and consumer price reform.

Both of these phenomena illustrate the power of social media – because they are both being organised and facilitated using combinations of Facebook, Twitter and other media.

The power of social media was discussed (and this year's revolutions foretold) by Clay Shirky in his book “Here Comes Everybody” (Penguin – 2008). To quote the back of the book “The next revolution will not be televised – it will be emailed, texted, blogged, wikied...”

Shirky discusses different case studies - from arrests for mass ice-cream eating in Minsk, to previous unrest in Cairo, to social stunts in Macy's store in New York, to protests against the attempt to hide abuse cases, and to commercial demonstrations against banks and airlines forcing them to reverse unfair commercial decisions. Shirky makes the point that social conversation and interaction follow a power law distribution from small groups with tight conversation, larger groups with loose conversation and then much larger groups that broadcast.

Shirky's message is that groups can organise themselves to collaborate on issues that they believe in or find sufficiently engaging. The critical element is the ability to share information and to coordinate and self organise at very low (negligible) cost – the enablers are social media tools. Speed is also of importance, it is hard to organise a large group of people using meetings, letters in the post etc. – sure it has been done but immediacy makes it so much easier.

The book discusses two almost identical protests a decade apart – the second of which achieved its aims, whilst the first did not. The conclusion reached is that (to a large extent) the availability of social media in the second was the key factor.

So the key advantages of social media are the ability to communicate with a large group of people, for the group to share information and to coordinate and organise very quickly all at almost zero cost. I would add that social media is still considered engaging and cool; and that in itself prompts people to take notice of a message that would be ignored if it were to be delivered by conventional means.

I am not arguing that on any given Wednesday afternoon product marketers or managers can start a worldwide revolution! I am, however, arguing that social media is extremely valuable to us. Consider the characteristics – immediate, low cost, information sharing, collaboration, engagement – these are the holy grails of product communication.

Using social media to interact with our customers we keep them involved, we can communicate messages when we want to without special effort, we engage them and allow them to share information with us that in turn help us to be more responsive to their needs and to better meet their expectations. This applies whether we have a business offering or a consumer offering. In a B2B situation we can help our customers succeed better at their job by sharing information about our product and our industry and it is easy to see how consumer products benefit from this interaction.

One of the apparent risks is that the competition will also join our group. This is true, but, then we have to share information prudently. We accept that every time we update the website, publish a white paper or interact with a customer then we have shared a secret with the public. In the meantime we have built the group chemistry around our product. Customers may share criticism of our product, but, surely they will do so anyway and it is better to hear about it and respond to it quickly (add an update to the next release and tell the world when it will be available.) Feedback is to our advantage, conversation drives our prestige.

The other idea that comes out of Shirky's work is that Social Media provides an easy tool for dissatisfied customers to organise and apply immense pressure on the organisation – it is much better that we also use the tools for our advantage.

Social Media is a low cost (mainly our time) way to regularly engage with our customers, to gain feedback, to help to shape our industry and to share information immediately.

It is hard to build a successful Social Media community – you need to choose the media (Facebook, Twitter, blog, wiki, special community etc.), to get people signed up and to start talking with the customers. Different businesses will use different tactics. By definition when we have a group we have conversation – conversation about our industry but mainly about our product. The conversation makes our entire approach, customer centric and drives our product decisions.

Whatever tactic we employ I believe we can all start our own small product revolutions and engage with our customers in a more meaningful way.

Spotting Disruptive Technology - Timing is Everything!

In the first post in this mini series on Disruptive Technology I discussed why we need to expect the unexpected - in a nutshell most of us spend our working days involved in our daily routine trying to plan develop and market our product. Meanwhile, whilst we aren't looking or dreaming in other directions there are groups of people who have dedicated themselves to doing something completely different and destroying our product and our market. It's nothing personal - its just (to paraphrase) - all is fair in love, war and technology development. Its been happening for a long time - think of the canal owners who suddenly had a new competitor with a new bigger faster technology called the railway. Or carriage makers just before Mercedes, Benz and friends came along.

In this second post we will discuss the timing impact and various key questions that are really just questions of timing and product timing decisions.

So we have made firm resolutions and have spotted some disruptive technology lurking somewhere away on the horizon - what's next?

Unfortunately, spotting these potential disruptions is only the tip of the iceberg, it is all to easy to be drawn in by the hype and buzz around these new areas. Firstly, curiosity is a strong human trait (and it is generally well developed in Product Team Members), the buzz can be more exciting than our regular work and in big organisations it can seem to be a way to stand out from the crowd (guru).

On the other hand, it seems that everybody is doing this. Remember, there are people out there who earn their salary creating this impression. Without being too cynical, the technology hype pays their bills.

For those of us who played team sports as kids remember how everybody used to chase the ball - didn't matter if you were defence or attack you ran after the ball. Later on we developed more discipline and strategy and stopped chasing the ball and started to play the game. That is one of the challenges of disruptive technology - to figure out when to chase and how to play the game.

So in analysing Disruptive Technology we must then exercise our judgement on the probability that the technologies will mature, that they will impact our area, and finally the hardest question of all - when? What is the relevant time frame?

Getting these factors wrong can ruin a perfectly good business or product strategy no less than ignoring or not spotting the technology. By way of example in the Telecom space around 2005 everybody was buzzing about IMS and how it was going to change the Telecom industry as we knew it. There were almost daily announcements of new products, initiatives and commitments. It seemed that overnight all our calls would be IMS based.

Looking back the objectives of were valid, the overall impact of IMS and IMS like technologies has been profound and are on going - but from a telecom's industry perspective "the reports of my death have been greatly exaggerated" (Mark Twain). In summation without getting into a theological argument (IMS believers vs. IMS non believers) by 2011 we can say that IMS is not yet main stream and whilst it has impacted many businesses it has not (yet) fulfilled its hype of 2005.

Clearly, companies that assumed that IMS was the next best and greatest thing made the wrong call. Whether this was to develop new technology products based on IMS or to build consumer and business services over IMS they are probably somewhat disappointed. Equally so you could have made the decision to stop investing in current development (to favour IMS) and missed out on a lot of opportunities in the last 5 years or so.

The point of this post is not to analyse IMS in depth, but to use it as an example (from our own industry) of the dangers of incorrectly analysing the impact and the timing of the impact on a product space. Many companies made the wrong judgement call.

Looking back the single most important error was probably the lack of business case to justify such a large risk and technology change. (A reminder to always use business fundamentals.) There was huge hype and like the example of team sports earlier, everybody was chasing the IMS ball. There were only a few brave solitary voices in the wilderness calling out with a different message.

Overall IMS is a good example of a disruptive technology that many spotted, but very few managed to answer the key questions of the probability that the technology would mature, its impact on their industry and most critically on when it would impact. Ultimately, all these questions become a question of timing - when will it happen?

The product teams involved had to set their product requirements, make their product decisions and position their product based on their assumptions about the impact of this disruptive technology. Many errors were made.

Clearly it is key to our product and business strategy that we actively seek and successfully spot disruptive technologies. However, we also need to be able to stand back from the hype and think strategically and coldly analyse the likely impact and timing of the new technology.

The final posts of this series will discuss some practical ideas for systematically discovering and analysing new technologies.

Social Media Strategies

Social Media is clearly one of the essential tools for Product Managers and Product Marketers.

Actually I say "clearly" and then I reflect upon my time in a medium sized high tech telecom company and all of a sudden it isn't clearly or even a bit obvious.

We had an excellent marcom department, that did some amazing things with web technology and customer engagement - but the average PM had no interaction with customers via social media. To be honest many of us had no idea what Social Media was or what was involved and we probably couldn't have defined it beyond "That's Facebook right?"

A few months on I am convinced that the product and the product positioning would be in a different league if we had done some basic social media work. Our understanding of the customer and customer engagement would have been substantially improved.

I am pretty sure that my experiences are reflected in many global companies - the Product Team are kept well away from Social Media - either through lack of awareness or because they are deemed dangerous without the corporate review and rubber stamp process.

This is a topic that the JET team will be dealing with in the near future - meanwhile we recommend this Techcrunch post - that talks about the different media and how the Internet is evolving and changing Social Media. Recommended.

Promoting a Brand - Some thoughts from Richard Branson

I have recently discussed the product aspects of the Nike 10K Night Run. One of the issues that I raised was the value of a brand and how the race was designed to enhance and promote Nike as a sports brand. I also mentioned that Adidas managed to get in on the act by taking advertising space along the route.

I am reading “Screw it – Let's Do It” by Richard Branson the founder of the Virgin group. It is a fascinating book describing how he started out as a school boy entrepreneur and how he developed Virgin. The book itself will be the subject of a future blog.

However, in this blog I want to discuss Branson's insights into branding. The chapter is called Sex Appeal and true to the title he discusses how to make the brand irresistibly attractive. His concept of sex appeal is “A good brand has sex appeal .... the customer falls in love with it, desires it, wants it and buys into it. Sexy is youthful, fun, trendy, cool whatever your age.”

Now at the outset I will concede that I don't think that Branson is just a regular guy doing a regular marketing job – he is a real visionary (there are over 330 Virgin companies) and now that he has success he commands marketing budgets that are, well how shall we say it? – Enough to completely fund the development and launch of 5 or 10 of our best ideas, and a certain fame that brings attention (if not success) to almost whatever he attempts.

Branson also admits that he has enjoyed the stunts he has pulled – from record breaking hot air ballooning to being suspended above Time Square in nude bodysuits. He recounts how one of the pioneers of alternative air travel Sir Freddie Laker encouraged him to be the face of his product, and make the personal commitment.

So I accept that for all of these reasons Branson is not just a regular guy. He is frequently promoting consumer brands rather than the next new killer widget; and so there are many many differences between what he does and what many of us do day in and day out. None the less there are some clear lessons in his messages.

Branson says that he advises all entrepreneurs

“whatever your field, you must be passionate about it and create excitement in everything that you do. Beat your drum, and look beyond the obvious. .... I fully believe that the presentation and image of one's business should reflect the fun as well as all the hard work behind it. In my opinion there are no limitations on what is possible or what should be attempted.”

I think that in 2 or 3 sentences Branson has summarised what Nike were trying to achieve with the night race (notice the similarity between the Nike slogan and the title of Branson's book.)

Of course the brand has to act as a real differentiator the product has to be instantly recognisable - “I will stretch the parameters every time because there is so much competition, you have to stand out from the herd.” However, the promotion and branding must remain faithful to the product - “be true to the product. Don't make it something it's not. Take a good luck at the image you want to promote and go along with it”

Branson also discusses that the products must back up the brand. Having brand alone without the products to match will not work. He describes how he is constantly taking a personal interest in what both the customers and the staff think (“... it is real market research...”) and how the potential for damaging the brand is substantial with poor products. “At Virgin we want to create the most respected brand in the world... but a brand is only as good as your products.”

Part of his philosophy is accountability and engagement – he believes that people need to acknowledge their mistakes, but to engage in the debate and not be debated with no defence or leadership. He comments “it makes me angry to see organisations in crisis that with tens of thousands of employees hiding behind 'no comment.'”

So it is actually pretty clear what the race was all about. It was engaging the customers and making them part of the fun, passion and commitment that they are trying to achieve for their brand and for their image. It was a way of leading the debate, getting their customers involved and trying to stand out from the crowd (ironically, since with 15K runners there was a very strong herd effect!!!)

I think that here are some of the secrets of successful product development and especially product marketing – it needs to be fun, passionate and full of hard work and we need to break down the barriers – so that there are no limitations. Sure there are budget issues and product readiness status, but, we need to work to make sure there are no limits.

Our brand needs to be true to the product and the product needs to be true to the brand. Both the product and the brand need to stand out.

It is critical to listen to our customers to ensure that the brand and the product continually live up to their expectations. A race is one of the rare situations where you can get the customer to offer the commitment and passion in partnership with you, but, you must always get the customer involved.

As product managers and marketeers we must offer a personal commitment to our brand and product, our energy our commitment and our responsibility.

In one sentence - the secret of branding is to offer a personal commitment and work hard to develop and promote a great product that breaks barriers, engages and excites the customers and have a great time in the process.

Finally in Branson & Sir Freddie Laker's words - “If you are starting your own company, a good lesson would be to think very hard about your image and how to brand it. ... get out there and use yourself.”

Screw It – Let's Do It Expanded – Lessons in Life and Business – By Richard Branson 2007 – published by Virgin Books.

The analysis and opinions are mine and do not necessarily reflect those of Branson or of Virgin Books.

Does the Perfect Product exist?

So we all know that one of the hardest things about being a Product Manager is trying to get the product to the market - preferably with most of the required features and in the same decade as the target launch date.

Product timing is critical - often it is better to be in the market with a less than perfect product, getting customers involved and committed than still be in the labs working and missing the opportunity - although a poor offering can do incalculable damage to our product and our brand.

This inevitably forces us to make tough product decisions and compromises on what is in and what is out. We would all like the perfect product, but, in practice we try and define what is good enough. We need to review the product requirements and categorise (in reality recategorise) them into features that are key to the functionality, for example product differentiation and leadership, competitive positioning, key customer commitments (but see this post on balancing customer influence on a release) and usability. There will be many other features, that make sense for the overall product offering, but will not gain customers nor will they loose customers and so sometimes they will just have to wait for the next release.

These calls can be tough and it can take a brave PM to stare down the boss and the market. When Apple introduced the iPhone it was revolutionary (touch screen etc), but at the time it missed some of the key features of a phone that traditional phones already supported (network technology and speed.) Some poor PM in Apple had to make the call and say those features could wait. In this case it worked.

Sometimes, however, the choice is less successful and worse some minor features get delayed from release to release without a solution. So following on from my analysis of Nike getting some marketing issues wrong - here are some thoughts about a place were Google gets it wrong.

Briefly, when you build a website, two of the key stages in launching it are to submit the site to the major search engines together with its sitemap.

Now when we built this blog we built it on a Google platform, and naturally assumed that submission to Google would be automatic. Not so - a few weeks on and we realise that we seemingly need to submit and that the submission is from a different set of Google tools and not the blog control panel. Even more frustrating, building the site map probably isn't automatic and doesn't always work the way they say. Or maybe it is automatic - depends who you believe - the Google support guy on one of the forums or the official instructions. Worst of all - this saga seems to have a history judging by the support forums and QA pages.

So given that these tools are for the general public - the user experience could have been so much smoother. Maybe there is a very good reason why submission isn't automatic - but it is hard to see why this couldn't have been properly explained and a couple of items included in the blog set up wizard. True in this case they didn't loose me as a customer, but they almost did see me checkout a different blogging platform.

To wrap it up - we need to compromise on our dreams for our products, failure to do so can ruin our chances to get market share, but, we need to make sure that we don't compromise too much. We need to listen to our customers and fix the things that we missed or omitted the first time round, failure to do will also ruin our market share in the longer term.

The Importance of Documentation

As PM&M we spend a huge part of our working day communicating both internally and externally. Despite this, we often get far into a product process and discover that somehow we don't have documentation or that we have very poor documentation. It may not, therefore, come as a complete surprise that we have a poor product definition and a weak customer engagement.

Sure, our creative skills and leadership mission don't leave much time for hacking away producing long word documents, but, as we will discuss in this post good functional documentation is an essential part of our mission and the craft, that can help or hinder the overall business success.

We welcome a guest blogger - Larry Lester - A Sales & Marketing Documentation Guru to discuss

There’s a host of reasons why small, emerging companies (aka start ups) should take documentation seriously. The problem is that most of those that I have worked with – don’t.

First and foremost they should take it seriously for all the reasons that larger companies take it seriously – it is a way of keeping your marketing, development, operations, and sales efforts – and the also the customer – in alignment.

However, for a start up the lack of good technical and marketing documentation – with the emphasis on good, or not having something basic at least – makes survival more perilous than usual. My phone usually starts ringing when these guys are about to crash land. If they have had the good fortune to make a sale, the customer is being nasty and delaying a milestone payment because a full set of technical documentation was supposed to be delivered and has not even been written. Or, if they have only got their foot in the door, discussions are about to collapse as the only marketing material they have to give to potential customers are a few pages of incomprehensible gibberish and a dreadful PowerPoint presentation! “We thought we could pull it off”.

The situation is, in fact, more serious than that. A company that does not maintain product requirement documentation is openly toying with suicide. There are two aspects to this assertion.

1. Poorly documented development is bound to result in a bug-ridden product. If you don’t write about it (requirements) then you don’t talk about it, and if you don’t talk about it, you brush aside the problems. Lack of a standard process and workflow causes product decisions to be made in an ad hoc way. At best, it is inefficient. At worst, it will kill your efforts to make a sale.
2. A good product requirement or a spec can serve as the basis for installation, operation and maintenance documentation. The saving in time, energy and money can be substantial. Somewhere down the road, you will need a technical writer, whether you like it or not. The more solid information you have to provide, the easier your lives will be.

The bottom line: give both technical and marketing documentation the same priority you give to development and sales. All of these processes are fully entwined - together the product should succeed; without any one of them it will be a struggle and potentially a product failure.

Cloud Computing - should it / will it impact our product?

I recently attended a conference on cloud computing, held by The Virtual Computing Environment Coalition (VCE), a coalition of three of the leading vendors in the industry: EMC², Cisco and Vmware. Virtualization and cloud computing are two of the newer technological trends and gaining momentum every day. Gartner EXP Worldwide Survey of Nearly 1,600 CIOs indicates that in 2010 the first technological priority of the CIOs is virtualization and second is cloud computing. This is a major change in the IT industry; in the same survey in Jan 2009 neither of these were in the top ten technologies.

New technologies always represent a challenge to the Product Mangers. Should we invest and adapt the technology or is it only a “buzz” that will disappear? In some cases it introduces a disruptive force to the industry which actually changes the rules of the game, creates an opportunity for new players and might be a threat to the existing players in the market. So, the stakes are high, misjudgment of the affect of the new technology might cause a large impact on our business. We will discuss the importance of and ways to track technological trends in a future post.

In the case of cloud computing the potential affect might be more than only on the product. It might change the way we do business. Should the business be “product centric” or should it change to a xAAS model?

As we discussed in the post “the Craft of PM&M”, one of the main challenges is to make a decision in a world of uncertainty. The impact of Cloud Computing will be different between industries and between domains within a specific industry. There is no one answer that fits all. Each PM in his/her own domain should consider the wide view of the industry and take into account the users and usage habits, the competitors, possible new competition due to the change, the customers (if the users and customers are different), and the maturity of the technology related to the specific industry. Our task is to correctly position the product.

The decision to be made is not between ignoring the change and fully embracing it. There are several alternatives to implement or approach a change. We need to determine the correct product requirements in the light of the possible changes.

We can choose not to do anything and wait. The simplest approach, before making substantial investments, is to change the “marketing language” that is used to describe the offering and start using the newer, trendier, terms when describing the product and the offering. The next step is to create a demo which is more convincing than the marketing pitch. Moving up in the investment and the complexity, we can build a “Proof-of-Concept” which is not only a demo but still not a product that can be delivered to customers. Finally, if there is a decision to adapt the technology, only then we should implement it in the product.

Whether we choose to ignore the change for now, or choose any of the other alternatives we must decide on parameters or events that we should track. These parameters and events should signal us if a decision should be changed. They should indicate changes in the market that point to either the direction of adaptation of the technology by the market or that the market abandon this trend. Any change that indicates a deeper commitment and implementation in the market should cause us to reconsider our strategy and move to the next level of investments in our offering.

Cloud Computing is an interesting topic in its own right and it serves as a good case study for the wider discussion of technological change and product positioning. Constantly, there are technological trends to follow, but not all trends are relevant to all domains and products. However, it is crucial for a Product Manager to keep track and to be informed so that those trends that are relevant will not be overlooked. Missing on a relevant market trend might not have an immediate impact but can prove to be critical in the mid and long terms. It is also important to make the correct call on the required response.