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Empowered

7/16/2022

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Recently I heard Marty Cagan speak as part of the McKinsey Product Academy Series. In the past Marty has spoken at my class and I have reviewed his book Inspired, my favorite book on product management.
 
Therefore I thought it was finally time for me to read the book he wrote with Chris Jones in 2021, Empowered. It can easily be used as a reference book when considering any one of a range of topics about how companies create extraordinary software products. However there are a few central themes which I thought would be helpful to describe here.
 
Two of the main messages around creating empowered product teams are:
  • Give product teams problems to solve, rather than features to build. Empower them to solve those problems in the best way they see fit.
  • Leadership is about recognizing that there's a greatness in everyone, and your job is to create an environment where that greatness can emerge. - Bill Campbell
 
Feature vs Empowered Teams (solve customer problems, achieve outcomes):
     A central theme in the book is the distinction between feature product teams and empowered product teams. A feature team implements features and projects (output), and as such isn’t empowered or held accountable to results. In contrast, an empowered team is accountable for solving a customer problem or achieving a specific outcome, and is empowered to do so in the best way they see fit.   

Difference Between Strongest Product Companies and the Rest 

1. Role of Technology (it is the business, not an expense):
     So many companies still have the old IT mindset when it comes to technology. It's viewed as a necessary cost rather than the core business enabler it needs to be. The people who work on the technology teams are literally there “to serve the business." In these scenarios, the product and technology teams are disconnected from the real customers—in fact, they're encouraged to think of their stakeholders as their customers. For strong product companies, technology is not an expense, it is the business.
 
2. Role of Product Leaders (coaching, strategy, managing to results, deep business and product knowledge):
     Most product leaders are responsible for staffing the in-house feature factory, and keeping the trains running on time. The best product leaders are staffing and coaching product teams, creating product strategy, putting strategy into action, and managing to results
  • You need to be very specific when identifying the most important business problems a product team should solve. 
  • Your role as a leader is in helping everyone on the team achieve the competence necessary to solve those problems.
       Product Leaders need to have a deep business and product knowledge (and frequent customer interactions)
  • Data (how the product is actually used)
  • Industry and domain knowledge
  • Business and company knowledge
  • Product operational knowledge (how the product actually works)
  • (most importantly) Users & customer knowledge
     Cagan recommends a minimum of three, one‐hour customer interactions each week. During weekly one-on-ones he likes asking about these customer interactions to see what the product person has learned. He also encourages the product person to share stories of what they experienced during these visits, and then to share these stories widely around the company. One reason for this is for the product person to establish their reputation as someone who has a deep and personal knowledge of the company's users and customers.

3. The purpose of product teams (product managers, product designers, and engineers)
     Consistent with the central theme of the book, Cagan believes that in strong product companies teams are given problems to solve, rather than features to build, and most importantly they are empowered to solve those problems in the best way they see fit and are then held accountable to the results.


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​Importance of Product Vision, Strategy, & Discovery
In empowered product teams:
  • Product vision describes the future we are trying that improves the lives of our customers 
  • Product strategy helps us decide what problems to solve
  • Product discovery helps us figure out the tactics that can actually solve the problems

Product vision keeps us focused on the customer and serves as a North Star 
     It provides the product organization with a common understanding of what we are hoping to accomplish together. A good product vision inspires ordinary people to create extraordinary products. A good product vision provides us with meaningful work.
     When a company has grown to the point where there are multiple product teams—supporting many customers with their constant needs. It is very easy for each product team to get caught up in their own problems and their own work, losing sight of the overarching goal. The product vision represents the common goal and constantly reminds us of the larger purpose.
 
Product Strategy: Based on insights, it is how we make the product vision a reality while meeting the needs of the company as we go
     While product strategy starts with focus, it then depends on insights.  Insights come only after you spend hours studying your data, your customers, the enabling technologies, and your industry. Insights can come from anyone or anywhere – salesperson, new technology, random comment from a customer, or an academic paper. They might pertain to the dynamics of our business, our capabilities, new enabling technologies, the competitive landscape, how the market is evolving, or our customers. The foundation for significant insights is the strategic context found in the company objectives, the company scorecard/dashboard, and the product vision. Insights are both quantitative and qualitative insights; and they need to be shared and communicated.
     Many companies have a stakeholder‐driven roadmap process, where they basically are trying to find a way to “fairly” divide up the engineering capacity across the different business stakeholders.  But by not picking your battles and focusing on the few truly critical problems, most of the product team's work  does not make an impact.
 
Product Discovery finds product market fit by considering value, usability, feasibility, viability (as discussed in Inspired) 
  • Value – will users buy and use it (Product Mgr)
  • Usability – can they figure out how to use it (UX)
  • Feasibility – can we build it (tech arch)
  • Viability – part of our overall business 
(Product Market Fit is the essential component for any successful product.)
     Discovery can’t be done by stakeholders, customers and prospects; they don’t know what is possible and they don’t know what solutions work
     Often customers try to discuss solutions but they really are discussing problems. It is natural for a prospect to try to dictate requirements for features, but a product manager's job is to work to understand their underlying issues and constraints, and then work collaboratively with your prospective customers to determine if there's a general solution that will meet their needs. This form of collaboration is at the heart of the customer discovery program technique mentioned above and discussed in Inspired.
 
​
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Marty (upper right) and the Silicon Valley Product Group look like a collaborative team that knows how to evangelize 

Collaborative Product Teams
     Your company is probably accustomed to feature teams that exist very clearly to serve the business, and it can be difficult to replace them with empowered product teams that exist to serve our customers in ways that work for the business. Your product organization is moving from a subservient model to a collaborative model.
    Part of this is done by product leaders establishing a direct relationship with the CEO (or general manager in a large company) and the other key executives (sales, marketing, service, finance, legal, business development.) The basis of this relationship is for the executives to believe that the product leaders have a deep understanding of the business and are committed to ensuring that the solutions provided will work for the various aspects of the business. This should be table stakes for the product leaders. Beyond that, there are three aspects the product leaders will be judged on: business results, product strategy, product teams
 
All of this may be Tougher in Larger Companies (Evangelism will help)
     Personally, I think Marty’s suggestions seem to be better suited or maybe more straightforward to implement in small companies with more greenfield products. However, Marty does provide at least one key to being a strong (empowered) product leader in a medium-sized to large‐sized company, evangelism.  Evangelism in this context means marketing to your own organization (e.g., product marketing, marketing, and sales). Some techniques used to help communicate the value of your product or what you’re proposing to your product teams, executives, key stakeholders, and investors include
  • using prototypes
  • sharing the customer pain
  • explaining the product vision
  • sharing your learnings
  • giving great demos
  • sharing the credit
  • detailing the market opportunity
  • showing your enthusiasm for your product
 
 
Check out more information from Marty Cagan at SVPG.
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Bitcoin, Blockchains, DeFi, and DAOs:  A Few Central Concepts

3/5/2022

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Or John Doesn’t Know S**t about Crypto:
a mostly accurate overview with only a few misleading generalizations
​
It was great presenting to the Notre Dame Tech Forum on a few central crypto concepts:
  1. What is money?
  2. So why was Bitcoin invented?  
  3. Wait, isn’t this all just a scam?
  4. Blockchains and Distributed Apps –  powering the future !?
  5. Distributed Finance – get a loan without talking to a bank
  6. Enterprise Blockchains – so companies / problems I’ve heard use this?
  7. Distributed Autonomous Organizations – the future of human society !?
​
​Below is the presentation and here is the recording of the event along with the presentation.
​
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DeFi: Blockchain and Smart Contract Based Financial Markets

1/4/2022

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My favorite overview of DeFi that I have read so far is Decentralized Finance: On Blockchain- and Smart Contract-Based Financial Markets written by Fabian Schar and published by the St. Louis Fed. (Although a few things seem a bit out-of-date since it is a year old and Whiteboard Crypto on YouTube is a tad bit more accessible.) 

Here are a few of my takeaways from reading this article.

DeFi replicates existing financial services in a more open and transparent way. In particular, DeFi does not rely on intermediaries and centralized institutions. Instead, it is a blockchain-based financial infrastructure with open protocols and decentralized applications (DApps). Besides a rich instruction set DApps or smart contracts can also acts as custodian for crypto assets.
 
(DApps or smart contract theoretically could be any arbitrary computer program since they run on Turing complete blockchains (all but Bitcoin); although they are very inefficient. The ability to run more complex smart contracts is one of the biggest differences between Bitcoin and Ethereum block chains.  Blockchains like Solana are designed to address the inefficiency or scalability problems of blockchains like Ethereum).   
 
Native protocol crypto assets (BTC, ETH or cryptocurrencies ) are used to operate the blockchain. 
 
Crypto assets that are tokens are units of value that blockchain based organizations or projects develop on top of existing block chain networks. Token standards include ERC-20 for tokens which can interoperate with Ethereum's ecosystem of decentralized apps. ERC-720 are non-fungible tokens (NFTs) used to tokenize ownership of any arbitrary data. For example they can be the digital representation of a physical object such as a piece of art.
 
This means that tokens can serve a variety of purposes: including governance tokens for decentralized autonomous organizations (DAO), tokens that allow the holder to perform specific actions in a smart contract, tokens that resemble shares or bonds, and even synthetic tokens that can track the price of any real-world asset.
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As you can see above, besides settlement layer (blockchain native protocols) and asset layer (including tokens) there is a protocol layer containing decentralized exchanges used by other DApps, an application layer, and aggregation layer to connect several applications and protocols

In decentralized exchanges, users do not need to deposit their funds which is the case with centralized exchange. Instead, users maintain control of their assets until the trade is executed. Trade execution happens atomically through a smart contract, meaning that both sides of the trade are performed in one indivisible transaction, mitigating the counterparty credit risk. Depending on the exact implementation, the smart contract may assume additional roles, effectively making many intermediaries such as escrow services and central counterparty clearing houses (CCPs) obsolete.
           
​Decentralized lending platforms and loans are an essential part of the DeFi ecosystem. Defi loans do not need to rely on trusted relationships via one of two methods. One method is credit being provided under the condition that the loan must be repaid atomically, meaning that the borrower receives the funds, uses, and repays them—all within the same blockchain transaction. A second way is loans can be fully secured with collateral. The collateral is locked in a smart contract and only released once the debt is repaid.

One type of collateralized loan platforms allow the user to create collateralized debt positions; in other words the user gets new tokens back by collateral locked in smart contract (or in the example below, just USD). For example MakerDAO is a decentralized protocol that is used to issue the USD-pegged Dai stablecoin.  First, the user deposits ETH in a smart contract classified as a collateralized debt position (CDP) (or vault). Subsequently, they call a contract function to create and withdraw a certain number of Dai and thereby lock the collateral. 
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There are also collateralized debt markets. Instead of creating new tokens, it is also possible to borrow existing cryptoassets from someone else - either pooled (subject to supply and demand) or P2P (person to person).

Decentralized derivatives are tokens that derive their value from an underlying asset's performance (tokenized versions of stocks, precious metals, alternative crypto assets), the outcome of an event, or the development of any other observable variable.
 
For on-chain asset management whenever someone invests in an on-chain fund, the corresponding smart contract issues fund tokens and transfers them to the investor's account. These tokens represent partial ownership of the fund and allow token holders to redeem or liquidate their share of the assets.
 
In summary, the opportunities of DeFi are based on
  • Efficiencies: While much of the traditional financial system is trust based and dependent on centralized institutions, DeFi replaces some of these trust requirements with smart contracts. The contracts can assume the roles of custodians, escrow agents, and CCPs.
  • Transparency: All transactions are publicly observable and smart contract code can be analyzed on chain.
  • Accessibility: Theoretically open to anyone, the risk of discrimination is almost inexistent due to lack of identities.
  • Composability: Any two or more pieces can be integrated, forked, or rehashed to create something entirely new. Anything that has been created before can be used by an individual or by other smart contracts. This flexibility allows for an ever-expanding range of possibilities and unprecedented interest in open financial engineering.
 
The risks include:
  • Smart contract execution: Users have to be aware that the protocol is only as secure as the smart contracts underlying it; leaving it vulnerable to coding errors or exploration (by analyzing the transparent underlying code).  Most users won't be able to read contract code, understand its potential security concerns, or understand the data payload - and there is no central administration to adjudicate issues or risks (although there are insurance and other similar services).
  • Operational security: While blockchains are permissionless and not reliant on a central government or authority; ironically governance and some control is often held by a small groups of people (usually the project's core team) and smart contracts are reliant on external data.
  • Illicit activity: Pseudonymity can be abused by actors with dishonest intentions. Regulators can (or should) regulate a decentralized infrastructure, there are two areas that deserve special attention, namely, fiat on- and off-ramps and the decentralization theater.
  • Scalability: (This is why I am intrigued since by Solana which is built with native parallelism; Solana scalability >> Ethereum scalability)
 
DeFi has unleashed a wave of innovation. On the one hand, developers are using smart contracts and the decentralized settlement layer to create trustless versions of traditional financial instruments. On the other hand, they are creating entirely new financial instruments that could not be realized without the underlying public blockchain. Atomic swaps, autonomous liquidity pools, decentralized stablecoins, and flash loans are just a few of many examples that show the great potential of this ecosystem.

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John Doesn't Know S**t about Growing a SaaS Business

7/18/2021

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It was great presenting to the Notre Dame Tech Forum. 
Everyone got to tell me:

What Do I Have Wrong about
What You Need to Get Right
To Grow a Company?

The five things I think you need to get right include:
​
  • Find Product Market Fit  (inspired by @ Marc Andreessen)
  • Optimize Marketing / Sales Funnel 
  • Create Customer Success  (inspired by Nick Mehta)
  • Build Company Culture (inspired by Dan Coyle) 
  • Use KPIs for Continuous Improvement (main metric from Dave Kellogg)

​Below is the presentation and here is the recording of the event. 
​
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So You Want to be a Platform Company (Updated)

7/2/2021

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​​More and more companies are trying to become platform companies. Even if you are sure what that means and why it is important; how you get there still isn’t easy.  (This update is based on a few things I have learned since writing the original blog post in 2019.) 

​
WHAT
While the term "platform" can have a broad range of meanings in just the technology market, the  focus of this article is API-centric cloud platforms or platforms as a service (PaaS). These provide software functionality that enable other developers to build complementary technologies, products, or services.

Platforms and their specific APIs can be used to integrate and extend the capabilities of distinct SaaS offerings. Often this involves a client giving permissions to another provider to use their data in the SaaS platform. For example, these integrations or extensions can be seen in B2B application marketplaces such as Salesforce App Exchange, SAP Concur App Center, or Cisco AppHub.  

​They can also be used just to provide functionality for other applications and may be white labelled and not listed in the platform provider's marketplace. There are many API-first or developer-first companies whose primary offering is API-based or platform-based such as Stripe, Plaid, or Twilio. 

The targeted developers can be internal to your company, can be part of a partner organization, can be working for a customer already using your SaaS offering, or can be a completely new client just interested in using the API’s functionality.  They can build capabilities that interface to and impact the UX (user experience), business processes or workflows, underlying data, or infrastructure (such as IaaS providers like AWS) of a platform and associated SaaS offering; or again the functionality can be used just to augment the client’s offering.
 
(As described in Wikipedia, the "platform economy" includes these “innovation” or SaaS integration platforms along with B2C transactional platforms such as Uber, Amazon, and AirBnB - not to mention the data / advertising model of companies like Facebook and Google.)

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​WHY
Platforms enable companies to create more value and even new business models by digitizing their services and connecting with other similarly enabled entities. For example you can connect with other platforms and/or different channels where your customers are consuming digital services: AWS, Salesforce, Uber,  Square, Microsoft (O365), SAP, WeChat, Slack, etc. 

​These business models can include direct revenue from the customers and partners using these externalized services, for example based on the volume of API calls. This would be the case for developer-first companies like Stripe or Twilio. For customers extending your SaaS offering that they already subscribe to, it could also just be an up-charge to the cost of your core products.  For integration partners, it could or maybe should be based on the value of the specific use cases that are enabled by using your APIs and the associated data. (Here is more information on SaaS pricing models)
​
What is often overlooked or at least undervalued is the indirect revenue impact of extending the overall value of your offering, it will now be made up of both your products and services and the complementary products and services of your partners. This can lead to benefits such as a higher competitive barrier and a higher base cost of your core products. 

The biggest mistake I have seen across a variety of companies is not coming to agreement on the value they want to create with a platform.
​Is it:
  • Direct revenue (often emphasized too much too soon)?
  • Indirect revenue (expanding the offerings a customer can build or get from a platform-based ecosystem increases the possibility a customer will buy and not attrite)?
  • PR/marketing around becoming a platform company?

Platforms and platform partners ecosystem also enable viral growth by creating a network effect: the more APIs being exposed and the more data that is accessible
  • leads to more paying partners creating more applications, integrations, and value
  • which leads to more customers using (and paying for) your platform and generating more data (and you externalizing more APIs)
  • which leads to more paying partners creating more applications, integrations, and value.

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Platform and APIs can also lead to happier or at least more easily retained customers (leaving you may also mean leaving or at least changing how they interact with vendors from your partner ecosystem) and a lower cost and higher win rate for big prospects.   The customization afforded in an on-premise world can be more easily replicated for SaaS when there is a platform.  Often you have to say "no, that is not on our roadmap" to a big prospect who needs some specific capability (often for big enterprise prospects it is an integration into a legacy system). However if you have a platform your answer can more likely be "yes, you can do that via our APIs, let's show you how or introduce you to a third party integrator."  (This is certainly one of the few times you'd say "wow, the cloud is finally catching up to on-prem.")

​Later technologies such as blockchain could usher in new era of api-driven business models as Joe Liebkind contends. However much like the same way that 25 years ago we couldn’t imagine the value and capabilities the web delivers today; we have little ability to understand how the proliferation of blockchain’s distributed, trusted, transactional capabilities will impact our economy (more on this in an upcoming blog post). 
 
HOW
Whether building from scratch or undertaking the long, difficult journey to transform current (often on-premise often monolith) software to being services and API based; it's going to be tough.
 
In short, you need to consider your platform business offering like any other business offering
  • What are the objectives or strategy
  • How are you going to design, build, test and deliver it
  • How will your customer use it
  • How will you manage and maintain it throughout its lifecycle
​(Themes emphasized by Carol Russell and Forrester’s Randy Heffner)
 
Another way to consider the business plan for an API or platform is the API Model Canvas (created by Manfred Bortenschlager based on the Lean Canvas).
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Platform strategy can also be considered through the lens of developer experience.  In an often quoted 2012 speech by John Musser at the O’Reilly Open Source Convention, he said that the
​5 Keys to a Great API are
  • Provide a valuable service
  • Have a plan and a business model
  • Make it simple and flexible
  • It should be managed and measured
  • Provide great developer support

Every platform requires developers; here are a few tips to provide great developer support and build a vibrant developer community
  • Develop inbound SEO acquisition and brand to attract developers
  • Create scalable content (tutorials, guides, API references)
  • Build community and boost champions
  • Have a dedicated developer support and onboarding team (You need people focused on the success of the big partners that your PM and BD team recruited to expand your offering.)
  • Understand your audience (and not all of them will be developers. The decision makers and stakeholders in partner companies will include CROs, business  development executives, and CEOs!) 

​Platforms and Product Led Growth
Platforms can help you expand or build your offering and your company in a variety of ways: by organically or inorganically becoming a multi-product line company (good luck doing this without being a platform company), by enabling system integrators (SIs) and value-added resellers (VARs) to implement or extend your SaaS offering, by enabling product partners to provide integrated related functionality, and by allowing you to more easily integrate with supplier partners that provide functionality.​​
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To be a successful product-led company, you need to have a view on the ecosystem in which you compete and how you use your platform to build, buy, or partners your way towards more growth and providing more value. ​ This may be the most important job of product owners and GMs. However unfortunately many of us just think about what we can build next and even worse what is the next incremental improvement to what we have already built (10% faster, 10% less bugs).
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Don't Listen to Your Customers

6/6/2020

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(or at least just listen to a select few when considering long term SaaS product strategy)

SHORT TERM SAAS PRODUCT STRATEGY
You should definitely be listening to clients, partners, internal stakeholders, prospects, and product metrics when considering what to do next with your current products - your short term product strategy.  As discussed in SaaS Product Metrics, the KPIs for these products could include win rate, customer adoption, customer NPS, short term revenue, and alignment with the your company's (short term) KPIs and metrics. 

However your short term SaaS product strategy is often focused on market penetration; it is usually a bottom's up view of how to maximize the value of your current products in your current market (your current customers and customers like them).  The Ansoff Matrix, one of the frameworks mentioned in Notes on Software Product Strategy, illustrates that there are other perspective you can consider for your SaaS product strategy.
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LONG TERM SAAS PRODUCT STRATEGY
You can consider what future products you can sell into your current markets by creating a (future) product development strategy.  Also you can consider how to modify your current products to sell into future markets as part of your market development plans. (Both of these strategies are easier if you are a platform company; API-centric cloud platforms enable developers to more quickly build complementary products).  
As part of this longer term product strategy you should consider 
  • Company vision and longer term company strategy
  • Market forces (For example conside Porter's Five Forces framework which is discussed in Notes on Software Product Strategy:  competitive rivalries, power of suppliers, power of customers, threat of new entrants, threat of substitute products). 
  • Competitors in these new markets and for these new products
  • Ideas from a few of your best and most visionary customers about
    • how your core capabilities can provide value in other parts of their business (future product development)
    • how modified versions of your products can help these customers grow in other geographic / vertical markets.
In other words, you need to build your perspective on a given market and how your offerings and distinct value proposition fits into this ecosystem. 
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And remember you need short term deliverables for longer term strategic goals agreed upon across your company as there will always be pressure to use that capacity to accommodate short term revenue requests.  There will always be an inherent tension between the Sales team who is paid to deliver monthly and quarterly results and the Product team who is paid to consider quarterly and yearly impact.  

And there will always be less capacity than you think. 
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SaaS Product Metrics

5/18/2019

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Core SaaS Company Metrics include:
  • Customer Acquisition Cost
  • Annual Recurring Revenue
  • Annual Contract Value (or Net New ARR)
  • Churn (attrition)
  • Cash Flow
https://blog.hubspot.com/service/saas-metrics
https://a16z.com/2015/08/21/16-metrics/
​

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from: https://www.forentrepreneurs.com/saas-metrics-2/

Tien Tzuo CEO of Zuora says that there are only three metrics that really matter for SaaS companies:
  • Retention Rate (how much ARR you keep every year)
  • Recurring Profit Margin (ARR - Churn - non-growth spend)
  • Growth Efficiency (how much does it cost you to acquire $1 of ACV)
http://www.slideshare.net/Zuora/zuora-always-on20123-saas-metrics-that-matter-12301579
https://www.socialmediatoday.com/content/3-key-metrics-matter-new-subscription-economy
​

Product Metrics:
As a product manager or product business owner you should choose from these core SaaS company metrics and a variety of other metrics to understand the performance of your product.  Track both the metrics themselves and the trends in your metrics such as:

​Marketing & Sales Performance (for different markets / segments)
  • Customer Acquisition Costs (including marketing lead analysis and sales funnel analysis)        
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​from: https://www.forentrepreneurs.com/saas-metrics-2/
  • Win Rate (and win/loss analysis)
  • Pipeline Activity (do you have enough pipeline to achieve revenue goals)
  • ACV (annual contract value or new booked revenue) & units (and therefore average selling price)
  • ARR (or annual recurring revenue) 
  • Market Penetration (% of total addressable market and/or % of total existing customers upsold) 
​
Customer Response
  • End-User Adoption and Usage Frequency
  • NPS (net promoter score) & other customer sentiment analysis
  • Customer Health or Success (often more detailed than sentiment analysis; products like Gainsight can help identify attrition risk and upsell opportunities) 
  • Customer Retention Costs
  • Attrition and Renewal Rates (gross and net)
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General Product Health
  • Main Value Proposition Metric:                                                                             Is your product achieving its described central benefit for your principal (or various) persona?  “Administrators can now save 50% more with our offering… End users can do this task 75% faster...”
  • Other Product Usage Analytics:                                                                             In-product analytics help you see if your product is behaving and creating value as expected. Product engagement tools such as Pendo, Google Analytics, or Adobe Analytics can facilitate this analysis. Often enterprise SaaS or transactional applications are trying to lower the amount of time a user spends to complete a task unlike consumer or engagement apps which are trying to increase the total time a user spends in an application. 
  • Overall Financial Analysis:                                                                                   This includes many of the metrics already mentioned and others such as Gross Margin, Customer Lifetime Value, and metrics which represent whatever other assumptions were made as part of the business case and pricing strategy.
  • Internal Team Metrics:                                                                                           Obviously a broad variety of metrics could be considered including team sentiment and key stakeholder metrics such as feature release quality for Dev Ops or story points for Agile teams.
  • Software Quality and Support:                                                                                Examples include open tickets (per customer), time to close (different priority support tickets) and open bugs. 

Further References:
  • https://www.pragmaticmarketing.com/resources/articles/15-product-management-metrics-you-should-know
  • https://280group.com/product-management-blog/25-metrics-matter-mobile-product-managers-2018/
  • https://www.gainsight.com/blog/calculate-6-key-customer-success-metrics/
  • https://productcoalition.com/critical-metrics-every-product-manager-must-track-c5f1e46e3423
  • https://medium.com/product-breakdown/product-management-analytics-what-metrics-should-you-be-measuring-241609b1950d
  • https://svpg.com/the-role-of-analytics
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Notes on Software Product Strategy:                Basic, Agile, Lean

4/29/2019

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Recently in my blog on Product Frameworks, I mentioned some of the common components of a product strategy.  Previously I published some product strategy notes from the class I taught at Stanford in their Continuing Studies department.  (Also here is a video of me discussing Platform / ISV strategy while at Salesforce.com).

Basic Strategy Model
When I taught my class, the basic strategy model was:
  • Where should we go?  Using market analysis & competitive analysis, financial plans, and success metrics.  
  • Why will we be successful there? Using core competencies, mission, and competitive differentiation.
​Market & competitive analysis sources include:  clients, analysts, competitor websites, and other internet / published sources; and they can be utilized in one or more of a different frameworks such as (mostly from Gorchels The Product Managers Handbook)
  • Market Segment Analysis (percentage of company sales, percentage of industry sales, market attractiveness, size, growth rate, etc.) 
  • Basic Competitive Analysis (including competitive analysis via advertised positioning)
  • Competitive Analysis Alternatives (direct competitors, substitutes, etc.)

This analysis can help you make decisions both about a specific product and about investments across a product line or portfolio. 

Product Portfolio Decisions
Other frameworks that help you make your portfolio investment strategy decisions include Porter's Five Forces for Market Competitiveness
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Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant by Kim and Mauborgne 
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​Boston Consulting Group's Product Portfolio Growth-Share Matrix
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​Ansoff Matrix
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However the trade-offs are rarely that simple as we need to consider a variety of factors:
  • New Product vs. Mature Product
  • New Market vs. Existing Market
  • Short Term vs. Long Term Revenue
  • Usage vs. Revenue
  • Client A vs. Client B
  • Research vs. Development
  • High Risk vs. Low Risk

Agile Product Strategists
As stated in the Product Frameworks blog post, with the advent of Agile methodologies another viewpoint is that product strategy activities are owned by Product Strategists (External Facing Agile Product Managers):
  • Understand market needs and competitors offerings
  • Talk with customers; work closely with Sales, Marketing, Services and Product Marketing
  • Position product and create roadmap
  • Own launches, pricing, beta programs, and product revenue
  • Consider next major release and next MRD

Lean Startup
An even more recent take on product strategy is what is prescribed for start-ups by Eric Ries in Lean Startup (Amazon, Medium, Wikipedia)
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In short, startups have a vision and employ a strategy to achieve their vision (business model, roadmap, product roadmap, point-of-view about partners, competitors, customers), the product is the end result of this strategy.  Products are always evolving, sometimes strategies change, visions almost never change.
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(from LightCastle Partners)
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An MVP for a proposed solution or product should be quickly defined and then  actionable (not vanity) metrics should be used to quickly iterate and incrementally improve a product for a better product market fit (Build-Measure-Learn feedback loop).  The two most important assumptions are the value hypothesis and the growth hypothesis.   Your MVP will have to be geared towards early adopters who understand the kinks haven’t been completely worked out for your innovative product.
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Product Frameworks: Strategy & Execution

4/20/2019

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Previously I listed a few product management resources including 
  • Marty Cagan's book "Inspired" which I review here
  • A list of product mgt associations, consultants, blogs, and courses 
  • A few product management and business strategy books 

In those resources there are product frameworks that can help you consider what are the right activities at the right time during a product lifecycle. These include:

280Group's Optimal Product Process

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Brian Lawley and the 280 Group has some great PM training and resources.
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Pragmatic Marketing Product Management Triad
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(As previously mentioned, Pragmatic Institute is well known for its training.)

SirriusDecisions Product Marketing and Management Model
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Roman Pichler's Product Management Framework 
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(Recently I discussed some of these frameworks with a few colleagues including Kathleen Marzahl and Rick Xu). 

One theme often found in these frameworks and in other descriptions of product management is a delineation between technical (execution, internal facing) and strategic (external facing) activities.

Often in Agile methodologies there are:

Technical PMs (Internal Facing “Agile Product Owner”)
  • Lead daily stand-ups, get issues resolved that are in the way of developers making progress
  • Own product specifics (PRD, specific requirements) and backlogs
  • Work on dev/test/release process (or ultimately a DevOps culture with frequent releases) and bug log w/ Tech Lead
  • Consider the next minor release
 
Strategists (External Facing Agile Product Managers):
  • Understand market needs and competitors offerings
  • Talk with customers; work closely with Sales, Marketing, Services and Product Marketing
  • Position product and create roadmap
  • Own launches, pricing, beta programs, and product revenue
  • Consider next major release and next MRD

Here are a few additional resources that detail this distinction
ProductPlan Product Manager vs. Product Owner
Aha Product Manager vs. Product Owner
Agile Product Manager vs Product Owner at SmartSheet

Similarly Marty Cagan says establishing a strong product culture requires 
  • Innovation culture: compelling product visions, strong product managers, empowered business and customer savvy teams product teams often in discovery
  • Execution culture: urgency, high-integrity commitments, accountability, collaboration, results orientation, recognition, strong delivery management, frequent release cycles 
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Harvard Business Review's "The Leader’s Guide to Corporate Culture"

11/4/2018

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The lead article in Harvard Business Review's 2018 "Culture Factor" issue, "The Leader's Guide to Company Culture," will help you identify and impact your organization's culture. 

In this article the authors say that culture norms define what is encouraged, discouraged, accepted, or rejected within a group. When properly aligned with personal values, drives, and needs; culture can unleash tremendous amounts of energy toward a shared purpose and foster an organization’s capacity to thrive. Whereas strategy is typically determined by the C-suite, culture can fluidly blend the intentions of top leaders with the knowledge and experiences of frontline employees. They contend that the four generally accepted attributes of a culture are:
  • shared
  • pervasive
  • enduring
  • implicit

To understand a company’s culture requires determining where it falls along the two dimensions of:
  • People interactions (highly independent to highly interdependent)
  • Responses to change (emphasize consistency / predicability to emphasize flexibility / adaptability)

Considering these two factors, they have identified or labelled eight different styles that apply to a company's culture (and individual leaders).

Caring focuses on relationships and mutual trust.
Purpose is exemplified by idealism and altruism.
Learning is characterized by exploration, expansiveness, and creativity. 
Enjoyment is expressed through fun and excitement.
Results is characterized by achievement and winning.
Authority is defined by strength, decisiveness, and boldness. 
Safety is defined by planning, caution, and preparedness.
Order is focused on respect, structure, and shared norms. 
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Proximate styles, such as safety and order, or learning and enjoyment, will coexist more easily than styles that are far apart on the chart.

Identifying your organization’s culture in this suggested framework will help you assess its intended and unintended consequences; and help you design an aspirational culture and the steps necessary to achieve it.

If you want to effect change, the authors suggest there are four levers for evolving a culture: 
-Articulate the aspiration
-Select and develop leaders who align with that target culture
-Use organizational conversation about culture to  underscore the important of change
-Reinforce the desired change through organizational design 
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