Qualities of Good Product Strategy

01 Aug 2024, by Calum Shepherd

I set out to answer the question ‘what are the qualities of a good product strategy?’

We all aim to create strategies that are well understood, enabling colleagues to feel comfortable socialising them. But how exactly do we achieve that?

It felt like strategies should have some consistent qualities. If we get those right, we can free up time to focus on the what of the strategy.

So, I spent some time researching.

This post covers

• What a strategy is
• Why it’s important
• What to avoid
• What to aim for

I hope it helps you as much as it’s helped me!

What is a strategy?

“A detailed plan for achieving success in situations such as war, politics, business, industry, or sport, or the skill of planning for such situations” - Cambridge Dictionary

The key phrase here for me is “detailed plan.” I’ve always tried to make strategies as clear as possible. Clear often means a sufficient level of detail—so it sounds like I was on the right track.

Why is strategy so important?

Your product strategy drives alignment and coordination across your company. It ensures everyone pulls in the same direction at the same time. It’s about creating focus.

Imagine shipping a series of new features for a specific segment. Marketing campaigns are ready to go, customer success teams discuss them confidently, support teams are prepared to answer questions, and sales teams pitch to the new segments.

This resonates deeply with me and feels like exactly what I’ve been aiming for.

What makes a bad strategy?

Sometimes, it’s easier to start with what a strategy isn’t:

• It isn’t fluffy. Some people argue that strategies aren’t supposed to be actionable, painting vague pictures that leave you unable to take action. That isn’t ideal. If it isn’t actionable, it isn’t meaningful
• It isn’t financial metrics. Simply telling your teams to “increase revenue” isn’t a strategy; it’s a way to measure success. Instead, targeting X segment with Y value to achieve Z revenue—that’s a much better approach
• It isn’t how your teams collaborate. Explaining how teams work together isn’t strategy—it’s more about topology. Team topologies define the purpose and relationships of teams. They’re important, but don’t mistake them for strategy

If you’re into team topologies, check out this excellent post by Martin Fowler. It’s a fantastic read.

What makes a good strategy?

Surprisingly, the best write-up I found wasn’t from a product management source. It’s from Good Strategy, Bad Strategy by Richard Rumelt. You can grab it on Amazon for a great price.

Also, this Marty Cagan piece on product strategy is excellent.

So, what makes a good strategy?

1. It identifies a series of problems or opportunities
2. It’s written in the order you’ll tackle them
3. Each problem/opportunity has a diagnosis. Breaking things down a little goes a long way
4. It includes a series of actions for teams to enact

Additionally, a good strategy should:

• Be in plain English
• Have a “curator” or “owner”
• Be updated when new insights come to light
• Be re-communicated when changes are made
• Be an iterative document
• Be explainable by everyone across the company
• Move you toward your product vision

I plan to stick to this framework moving forward. Hopefully, it’ll allow me to keep refining my strategies for the better in the coming months!