Outcome-driven product strategy and how to make the shift
Brought to you in partnership with Grace Sears and Ali Freitag.
As a result of Scaled Agile practices and top-down initiatives, Product teams often get lost in planning for the ‘What?’ and lose sight of the ‘Why?’ behind decisions being made.
Grace decided to tackle this challenge head on. She created the ‘Ladder’ Product Strategy Framework to encourage teams to become more outcome-driven by connecting stories and features to the larger objectives and results they are driving. Ali and I then scaled this idea to our teams. We want to share our experience and lessons learned to help others going through a similar evolution.
Outputs vs Outcomes. Let’s ground on definitions.
Outputs are the “what” — they are the tasks, the to-do lists, the stories and launch dates contrasted with outcomes which are the problems to be solved, the value created, and the WHY behind it all.
Outcomes result in all kinds of impact e.g. increased revenue, NPS lift, greater simplicity, or a behavior change.
The problem is, teams often get lost in planning for the ‘What?’ (Output) and lose sight of the ‘Why?’ (Outcome). This can be due to Scaled Agile practices like SAFe that over index on delivery metrics. However, as Product Managers, we are accountable too. When our roadmaps look like Ganttcharts (see below)
We are perpetuating the problem. This is what creates the Feature Factory Trap. A Ganttchart view emphasizes ‘what’ is planned and ‘when’ it is expected to be delivered. It lacks the ‘why’. The reader has no way of knowing why the work is important, value expected, or impacts of trade offs.
To shift the perspective, we need to reorient our roadmaps around the problems we are solving, future capabilities we hope to unlock, and the user behavior changes we desire to make.
Enter The ‘Ladder’ Product Strategy Framework. So what’s the problem, why is it so difficult to be outcome-driven? It’s not always clear how delivering a specific feature will achieve the grand vision or if the right prioritization choice is being made.
The ‘Ladder’ Framework aims to close the gap, creating a direct relationship between features and the vision with each rung.
The Framework in the wild.
First, define your vision — this will influence your objectives. All the work you do should contribute towards achieving this vision.
Second, derive the platform objectives. These are your “walk around highlights” of what is being done and what will be achieved for your stakeholders.
To make the framework more tactical, next define the intent ‘themes’. These capture all bodies of work you will be doing grouped into logical categories. Each intent theme should roll up nicely into one or more objectives;
- all work in theme A contributes to the objective 1
- work within theme D contributes towards objective 1, 2, & 3.
Here is a feature team example:
After seeing the framework in action, Ali tailored it for her platform team to ensure the commitments made contributed towards the platform’s vision and desired outcomes. The largest modification was within the themes — she made sure to have themes that covered infrastructure oriented objectives (Well Managed & Innersourcing/Developer Contribution Model).
Tying it all together.
We’ve tested the framework within two operating models; feature teams — those who are responsible for end-to-end delivery of a customer experience — and platform teams — those who own of the base technology that feature teams build upon — and have observed benefits in both areas.
How can you start to apply The ‘Ladder’ Product Strategy Framework for your team(s)?
1. Define your Themes & Outcomes: What are the main problem areas or bodies of work for your Product and what behaviors/results will indicate you’ve started to address them?
2. Categorize your existing work: Do the Features on your current Roadmap/Backlog align to the Themes & Outcomes you defined? If not, get rid of them.
3. Reference your Objectives to drive prioritization decisions: Which Outcomes should you focus on driving to achieve your near/long term Objectives, and which Initiatives/Features will best help you get there?
4. Track progress towards your Outcomes over time: Identify your baseline before you set a target, and then monitor progress towards your Outcomes regularly to identify when to shift your focus.
5. Revisit your Product Strategy regularly and iterate as needed: Just like your Product, your Product Strategy should evolve over time. Adjust your approach as you learn about what works for your team.
If you only remember one thing; Outcomes + Strategy = Profit.
