The importance of building a product plan and keeping it up to date

Key points:

• Failing to plan is planning to fail
• A product manager must think end to end
• Start simple and evolve
• Keep it current.

Whenever I meet with or recruit Product Managers I always ask them a leading question:

“How do you keep up to date and organised around your Products and Markets?”

The use of and upkeep of a Product Plan is critical for any Product Manager worth their salt. I don’t believe there needs to be rigid format or structure, yet, there are some areas a plan should always cover. I also favour using the tools that work best for you as an individual.

Important areas for your Product Plan

Strategy

Having a solid grasp on your strategy is key for Product Development and Management. Try using tools such as the Business Model Canvas as a great way to articulate your business model. It is also a great tool to use to pivot into new products, channels, and business models. Read more on this in my post here on Business Model Canvas. Understanding your market is a must. A common trap is building a product that you like but does not resonate with your intended audience. This is a recipe for failure.

Product

Customer Value Proposition (CVP) is another key area to a successful Product Plan. The goal within your plan is to establish, understand, and articulate your CVP. The competitive environment should inform your CVP. There are many tools you can use for this, but I like to include a Value Curve. This can show you how your CVP stacks up against the competition and help you determine how you will stand out.

Customer Experience

Customer Experience and Customer Service are hot topics. They are something to focus on for your Products, particularly when it comes to digital. Think about the various channels through which your customers engage with you through. Think also about the channels that customers may want to engage with you through. If you choose not to service through a particular channel, do so for the right reasons and as a conscious choice. Document your Customer Journey Maps to analyse and improve your interactions.

Financials

OK, let’s get real here – business has to make money. Get your head around the various numbers and understand the drivers of your business. Know which markets, segments, and customers deliver the most to your business. This is where your focus should be. Break down your results and targets by product/channel to further narrow your focus.

Metrics

All the nice non-financial metrics. Things like downloads, pageviews or social engagement markers (likes and the like…). People often forget what the K stands for in KPI. KEY Performance Indicators are there to help you focus on what is important. Don’t fall into the trap of analysis paralysis. Focus on these key metrics and have an understanding of their impact on Financials.

Risks

Here you need to get a handle on the risks to your business, detailing things like:

• Market factors
• Impending regulatory change
• Emerging disruptors

It is important to create plans to mitigate the likelihood of these risks happening. You also need to create a contingency plan to lessen the impact on your business if it does indeed happen. You will be ready to act to preserve your business model/financials if these risks do eventuate.

Plan

Here is where your elements like your Product Roadmap can go. Something as simple as a spreadsheet with a list of enhancements and a target launch date works. Base this in the reality of your environment and budget. A plan that is not grounded in reality is no real plan at all.

How will this Product Plan help me?

Planning

Failing to plan is planning to fail. If you think things through and write them down will keep you honest. Businesses run in regular cycles with targets and budgets. When things are going well people tend to ask fewer questions. This is an opportunity to dig deeper and learn/document what you are doing so you can apply it again later. When things are not going according to plan people ask a lot of questions. Having a clear and well thought through plan is important at these times. Even if you need to adjust it you will have something as a basis for the current behaviour. It is always easier to change your actions in business when you have clear rationale behind them.

Communication

This document can be your one stop shop for what is going on with your product(s). One of the most important skills a Product Manager must have is communicating their plan. This must be accessible to all levels. I have used my product plan in the past to include views I can share with different audiences. I cannot count the number of times that an issue has come up and I have been able to refer to my plan for help. Demonstrating your thinking behind an initiative is very important. This is especially true when they don’t succeed.

Continuous Improvement

You can’t control what you don’t measure.

• Your goal should be to keep improving so knowing where you are at and why is invaluable.
• Connecting your actions to your strategy and focusing on your customers drives success.
• Detailing the metrics and financials and tracking against them will provide insight.
• Knowing what is happening with competition and your target customer segments provides context.
• Planning for success and potential failure will make you resilient.

These high-level reasons should be enough of a driver to get you started. I have never known anyone who regretted time spent on their product plan. But remember, form follows function so concentrate on the right content over style. Form has its place and will add value when you need to communicate but must always follow function.

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