Business Value Levels
Strategy Deployment Levels (1, pg 75)
|Vision||What do we want to be in 5-10 years? Value for customers, position in market, what our business looks like||CEO/ Leadership|
|Strategic Intent||What business challenges are standing in the way of reaching our vision||Senior leadership|
|Product Initiative||What problems can we address to tackle the challenge from a product perspective?||Product leadership team|
|Options||What are the different ways I can address those problems to reach my goals?||Product Dev teams|
Business Value Types
Framework for thinking about value by Joshua Arnold (1, pg 82)
Increase Revenue – Increasing sales to new or existing customers. Delighting or Disrupting to increase market share and size
Protect Revenue – Improvements and incremental innovation to sustain current market share and revenue figures
Reduce Costs – Costs that we are currently incurring, that can be reduced. More efficient, improved margin or contribution
Avoid Costs – Improvements to sustain current cost base. Costs we are not currently incurring but may do in the future
Type of Value (3)
Commercial Value: How much revenue or profit does this work result in?
Market Value: How many new customers will we be able to serve?
Efficiency Value: How much time or money will this save us?
Customer Value: To what extent will this decrease the likelihood that a customer leaves?
Future Value: How much will this save us in time or money in the future?
Project Rather than Product Management Smell
Build Trap (1, pg 1)
Build Trap = organizations become stuck measuring their successes by outputs rather than outcomes. […] When companies stop producing real value for the users, they begin to lose market share, allowing them to be disrupted.
Progress Focus Powerful Questions (2, pg 80)
For when a company is focusing on percent complete, status, or points rather than value
- Could we achieve all of these measure and still be unsuccessful?
- How are we validating assumptions about the user needs of the market demand?
- What are we learning about value? How I this guiding our product decisions?
- What has changed with our users or our competitive environment since we began this initiative?