In discussing the product prioritization strategies, envision a music subscription platform to illustrate and compare each strategy’s application. These strategies apply universally, and for the purpose of analysis, the scenario presented is a music subscription platform.
Strategy 5: Keep Your Lights On (KTLO)
The fifth strategy is unsurprising with its presence in the framework, referred to as “Keep the Lights On” (KTLO). It underscores the necessity of prioritizing essential requests to ensure smooth operations. This approach is often synonymous with “Run the Business” (RTB) or “Essential Tasks” (ET).
For instance, in the context of a music subscription platform, managing digital rights becomes crucial. With features like digital rights management (DRM) that enable downloads, legal and risk management aspects require attention. Further different countries have distinct music laws related to DRM, and global compliance is essential, non-compliance can lead to shutdowns in certain regions. This underscores the importance of constant collaboration with legal and risk management teams.
Infrastructure monitoring is also a key aspect of KTLO. Neglecting aspects like computing, network, and storage can impact the platform’s performance. In a cloud-based subscription service, considerations such as app isolation, zoning, and appropriate infrastructure management are critical. Hence a failure to address these elements can result in disruptions to the streaming service, affecting customer experience.
The term “Keep Your Lights On” conveys the urgency of these tasks; without them, the existing customer base could erode rapidly. Instances of companies deprioritizing KTLO requests have led to customer attrition, emphasizing the strategy’s significance. While other strategies may also hold importance, KTLO serves as the foundational pillar for maintaining operational integrity.
Strategy 4: Enterprise Thinking
The fourth strategy, “Enterprise Thinking,” encompasses a wide scope, yet its importance can sometimes be undervalued among product managers, engineers, and data scientists. It becomes particularly relevant when considering the notion of control in product development. Here imagine the creation of a music subscription service.
The desire for control often leads teams to construct monolithic products, whereby they oversee every aspect, from digital rights management to content servers, user interfaces, and mobile apps. “Enterprise Thinking” while offering control, can lack modularity and advocates for breaking down products into modular components that can be repurposed and scaled, even beyond their original context.
For instance, using digital rights management as an example, if conceived as a separate module, it could evolve into a standalone product serving multiple companies. Similarly, machine learning models that predict music preferences could become products themselves, applicable in various contexts.
This approach extends to global market considerations, while building a music subscription service for a specific region like Japan or Korea, it’s crucial to contemplate global expansion possibilities. Although expanding to new markets might not be an immediate priority, factoring this potential into your product’s design can save future reengineering efforts.
However, the choice to globalize must align with your overall strategy. If, for the present, focusing on a particular market is the priority, that’s valid. The key is to intentionally decide whether to create a product with potential cross-market applicability or to focus on a market-specific solution.
Strategy 3: Must-Have Outcomes or OKRs
Ranked as number three, the “Must-Have Outcomes or OKRs” strategy serves as a fundamental framework for prioritization. This approach, often pioneered by John Doerr during his time at Intel in the 1990s, has become a cornerstone for many companies, including giants like Google.
“OKRs” stands for Objectives and Key Results, and establishes a structured highway that guides teams in setting and pursuing clear priorities. Think of it as a map, steering all teams toward a common destination. This strategy significantly aids in tackling the complexity of prioritization, ensuring alignment and coordination throughout the organization.
Imagine the music subscription service once again. Suppose a company-wide objective is to enhance the customer payment experience within a year, aiming to reduce payment friction and cart abandonment. Each team involved in the service, such as digital rights management, content management, and payments, aligns its efforts with this overarching objective. For instance, the digital rights management team, aware of the shared objective, focuses solely on enhancing the payment process within their domain. This streamlines efforts and prevents divergent priorities that can lead to misalignment.
To emphasize its importance, consider a quote from Peter Drucker, a renowned management leader: “You can’t manage what you cannot measure.” OKRs provide the means to measure progress, guide priorities, and achieve transformative results. This strategy empowers teams to collectively work toward quantifiable goals, fostering a culture of alignment, accountability, and strategic achievement.
Strategy 2: Innovation at the Core
Ranked as number two, “Innovation at the Core” underscores the crucial role of creativity and experimentation in ineffective prioritization. This strategy centers on embracing new ideas and pushing the boundaries of what’s possible.
Innovation doesn’t simply entail traditional A/B testing or incremental improvements; it encompasses a broader scope of fresh ideas and creative solutions. This can include entirely new features, user experiences, or approaches that resonate with users in unique ways.
Consider the music subscription service once more, and imagine you’re aiming to leverage geolocation data to enhance user experiences. If you tailor your content recommendations based on a user’s location, you’re embracing innovation. Such experiments can uncover novel engagement strategies and delight users in unexpected ways.
Innovation isn’t limited to net new creations; it also extends to learning from others. Further, analyze market trends, study successful companies, and identify groundbreaking practices that can inspire your own endeavors. An innovation-centered approach should be integrated into your backlog to ensure continuous progress.
Backing innovation aligns with the principle of making forward investments in your product. While not all experiments may succeed, the lessons learned are invaluable for shaping future directions. Innovation mitigates the risk of stagnation and positions your product to adapt and thrive in changing landscapes.
Strategy 1: Customer Centricity – Anchoring Prioritization in User Needs
At the pinnacle of effective prioritization stands “Customer Centricity.” Placing the customer at the core of decision-making is an unwavering principle that should guide every facet of the product development lifecycle. This strategy ensures that every action taken, from creating new documents to innovative endeavors, stems from addressing customer needs or market demands.
Consider this strategy as the North Star, irrespective of your product’s stage. Whether you’re addressing Keep the Lights On (KTLO) requests, focusing on innovations, or aiming to achieve specific OKRs, the underlying motivation should always align with serving the customer better.
Let’s delve into an illustrative example in the realm of physical goods. Think of the Swiffer, a household product that revolutionized cleaning routines. Its inception came from a customer focus group, where real-world customer needs were acknowledged and addressed. This seemingly small product concept led to a multi-billion-dollar industry.
In the digital space, whether it’s a music subscription service or any other offering, this strategy implies constantly engaging with customers. This can involve focus groups, analytics-driven insights, usability studies, and more. By blending qualitative and quantitative methods, you gain a comprehensive view of customer preferences and pain points.
The heart of “Customer Centricity” lies in recognizing that innovation can be inspired by customers. It’s a reminder that your priorities should be guided by the desire to enhance the user experience. This strategy fuels time-to-market efficiency as you address real user needs, rather than engaging in speculative development.
Time to market is intricately linked with prioritization, as highlighted throughout the discussion using the framework. The five strategies presented offer a robust foundation, adaptable to any product, service, or offering. It’s important to remember that prioritization isn’t rigid. The allocation of time and resources across different aspects of your product can evolve based on your product’s lifecycle and strategic shifts. Flexibility is key to effectively responding to changing circumstances and priorities. Above all, the paramount principle is customer centricity. Aligning your actions, strategies, and innovations with the needs and preferences of your customers underpins successful prioritization. Embracing this approach leads to better products, enhanced user experiences, and a more effective market presence.
