Outcome vs. output Product Teams
In the dynamic field of product management, a crucial challenge lies in the dichotomy between the role’s strategic nature and the prevalent organizational tendency to dictate what Product Managers should build, thus managing their output. This often undermines the autonomy necessary for Product Managers to discern what needs to be built and why. True strategic value is achieved when organizations align Product Management around outcomes and Key Performance Indicators (KPIs), transcending the mere focus on output.
The concept of an Outcome-Based Roadmap emerges as a promising solution. Rather than a laundry list of context-free features, this roadmap is meticulously crafted to achieve specific objectives critical to the overall success of the company. Each major theme or release is designed with an intended impact that can be validated and measured, fostering a more focused and purpose-driven product development approach.
However, despite its apparent advantages, the Outcome-Based Roadmap is not without its challenges. The primary issue arises when the anticipated outcomes fail to deliver the desired business impact. Even with strategic milestones and KPIs in place, the fallibility of human predictions can lead to outcomes that fall short of expectations. While execution may be blamed, the root cause often lies in setting unrealistic goals.
Product teams may fall into the trap of setting wrong goals due to various reasons. Assumptions play a significant role, where ideas are not adequately validated with customers, relying on past experiences, instincts, or hunches. External pressures, such as directives from upper management, can also lead to the adoption of goals that may not resonate with customers. Additionally, a lack of sufficient data, the need for speed in agile environments, and a focus on technology over desired outcomes contribute to goal-setting pitfalls.
To counter these challenges and prepare for success, product teams must prioritize several factors. Validation by customers becomes paramount, emphasizing the need for research and data-backed decision-making. Collaborative team efforts, ongoing refinement of goals, and a constant measurement of success are crucial elements. It is imperative to understand that defining proper outcomes is an ongoing process that requires a vigilant and adaptive approach.
In summary, successful product development requires solving customer problems and achieving desirable outcomes. The Outcome-Based Roadmap, when approached with realistic and achievable goals, collaborative teamwork, and a continual focus on customer satisfaction, can pave the way for effective and impactful product management. As organizations navigate the evolving landscape of new developments, the key lies not just in developing new ways of doing things but in ensuring that customers are genuinely satisfied with the outcomes.
