About two weeks ago, I attended my first event hosted by the Silicon Valley Product Manager's Association (SVMPA). The main speaker was Barbara Nelson, a consultant for Pragmatic Marketing who gave a presentation entitled "Why Have a Strategy?" What follows are some takeaways from that presentation.
One would think that by now, most organizations would know precisely why a strategy is necessary. When I say organization, I don't just mean high-tech companies, as many in the valley naturally assume. This applies to all organizations; large, small, corporate, non-profit, etc.
Think about it for a moment. Think of all the activities that your organization is engaged in. Are they strategically aligned to accomplish a goal? What is the strategy? Is there even a goal or a vision in place?
A 2006 study titled "Making Strategy Execution a Competitive Advantage" showed that only just over half (54%) of companies surveyed have a strategic execution process in place. Of those, only 5% of the companies communicate that strategy to their employees. That means that 95% of the employees at companies with strategies in place are working in the dark. When you factor in the employees at companies without a strategy in place, the over-all percentage of employees without a strategic reference climbs to nearly 100%. It's a wonder that anything gets accomplished at all.
During my Software Project Management sequence at UC Berkeley Extension, one of my teachers shared the following anecdote. During the 1960's, a national news crew was interviewing a machinist of sorts in Maine. When asked what he was working on, he replied that he was working on the Space Program; the initiative set by President John F. Kennedy to put a man on the Moon. The important thing is that the man did not say he was fabricating metal tubing, or he was working for the local plant. He understood exactly what he was working on. He understood the vision; the ultimate goal towards which his efforts were contributing in a strategic, systematic manner. Therefore, he was highly motivated and proud of his work.
Having a stated strategy is good for morale. It's also essential for maintaining efficiency. Strategies do not merely help you determine what are going to do, but sometimes more importantly, what you are not going to do.
Without a strategy in place, organizations waste valuable time and resources grasping at straws and get sucked into diversions that often undermine the original goal. I once worked with an organization that had seven major initiatives on a limited budget. During a strategic planning session, we examined each initiative and asked ourselves, does this fit in with the stated goal? As it turned out, very few of them did. The lack of a strategy cost this organization many hundreds of thousands (perhaps millions?) of dollars and several person-years of wasted work.
Product managers play the pivotal role of bridging strategy with execution. Without a clear understanding of both the goal and the strategy for accomplishing that goal, a product manager cannot move a product or a company forward.
If you are a product manager, ask yourself: Do you know what the goal is? Do you know what the strategy is for achieving that goal? If the answers to these questions are "no", then stop reading this blog, get up, and go find out now. Ask your boss. Ask your CEO or Executive Director. Ask your Board of Directors.
It's entirely possible (although frightening) that perhaps even they don't know the answer to those questions. If so, then you've got to stress the importance of having a strategy. Perhaps you are the person to help lead that discussion.
With a clear understanding of your goal and strategy, a product manager is effectively the "Product President". Without this understanding, you are merely the "Product Janitor".
One would think that by now, most organizations would know precisely why a strategy is necessary. When I say organization, I don't just mean high-tech companies, as many in the valley naturally assume. This applies to all organizations; large, small, corporate, non-profit, etc.
Think about it for a moment. Think of all the activities that your organization is engaged in. Are they strategically aligned to accomplish a goal? What is the strategy? Is there even a goal or a vision in place?
A 2006 study titled "Making Strategy Execution a Competitive Advantage" showed that only just over half (54%) of companies surveyed have a strategic execution process in place. Of those, only 5% of the companies communicate that strategy to their employees. That means that 95% of the employees at companies with strategies in place are working in the dark. When you factor in the employees at companies without a strategy in place, the over-all percentage of employees without a strategic reference climbs to nearly 100%. It's a wonder that anything gets accomplished at all.
During my Software Project Management sequence at UC Berkeley Extension, one of my teachers shared the following anecdote. During the 1960's, a national news crew was interviewing a machinist of sorts in Maine. When asked what he was working on, he replied that he was working on the Space Program; the initiative set by President John F. Kennedy to put a man on the Moon. The important thing is that the man did not say he was fabricating metal tubing, or he was working for the local plant. He understood exactly what he was working on. He understood the vision; the ultimate goal towards which his efforts were contributing in a strategic, systematic manner. Therefore, he was highly motivated and proud of his work.
Having a stated strategy is good for morale. It's also essential for maintaining efficiency. Strategies do not merely help you determine what are going to do, but sometimes more importantly, what you are not going to do.
Without a strategy in place, organizations waste valuable time and resources grasping at straws and get sucked into diversions that often undermine the original goal. I once worked with an organization that had seven major initiatives on a limited budget. During a strategic planning session, we examined each initiative and asked ourselves, does this fit in with the stated goal? As it turned out, very few of them did. The lack of a strategy cost this organization many hundreds of thousands (perhaps millions?) of dollars and several person-years of wasted work.
Product managers play the pivotal role of bridging strategy with execution. Without a clear understanding of both the goal and the strategy for accomplishing that goal, a product manager cannot move a product or a company forward.
If you are a product manager, ask yourself: Do you know what the goal is? Do you know what the strategy is for achieving that goal? If the answers to these questions are "no", then stop reading this blog, get up, and go find out now. Ask your boss. Ask your CEO or Executive Director. Ask your Board of Directors.
It's entirely possible (although frightening) that perhaps even they don't know the answer to those questions. If so, then you've got to stress the importance of having a strategy. Perhaps you are the person to help lead that discussion.
With a clear understanding of your goal and strategy, a product manager is effectively the "Product President". Without this understanding, you are merely the "Product Janitor".
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