5. Roles in Strategy Development

Product Strategy Fundamentals: Roles in Strategy Development

Introduction

In this section, we’ll cover the essential roles involved in creating a product strategy. A critical aspect of defining product strategy is managing who’s involved and how they contribute to the strategic process. While it’s common to seek input from various team members, involving too many voices early on can dilute focus and cohesion. Here, we’ll explore which roles are essential and how each contributes to the process.

1. Avoid Overcrowding in Strategy Meetings

The primary advice when building a strategy is to avoid overloading the room with people right from the start. Many product leaders feel compelled to invite everyone to strategy meetings to foster buy-in. While collaboration is valuable, it’s essential to recognize that strategy often requires a clear, unified vision. Effective strategy is rarely built by accommodating every opinion and input equally; it needs coherence that can get lost in group consensus.

An ideal approach is to start with a small, focused group or even one main strategist who listens to others but synthesizes the input into a cohesive plan. Large brainstorming sessions can lead to generic results, as the attempt to merge many ideas may produce a disconnected and incoherent strategy.

2. Top-Down and Bottom-Up Flow: Reality vs. Theory

In an ideal world, strategy flows from a synchronized mix of top-down and bottom-up input. Executives may define a broad vision, with ideas coming from the team. In practice, however, organizations rarely follow a perfectly synchronized structure. Real influence often lies in the informal networks within the company, not strictly within the hierarchy.

Strategies evolve based on input from individuals who understand the core issues deeply and have been thinking about solutions even before formal discussions. The people who can anticipate questions and think proactively often become key influencers, regardless of their formal titles.

3. The Power of Relevant Input Over Titles

Effective strategists are those whose insights are relevant and impactful, not just those with a prominent title. Titles may open doors to meetings, but they don’t guarantee attention or influence. True authority in strategy comes from consistently providing meaningful input.

Key Roles in Strategy Development

Let’s review the primary roles and their contributions to product strategy.

  1. CPO or VP of Product
    The Chief Product Officer (CPO) or VP of Product is typically the primary owner of the product strategy. This role includes:

    • Approval: Aligning the strategy with the CEO and other C-level executives.
    • Communication: Reinforcing the strategy with the product team, ensuring the entire organization understands the direction.
    • Veto Power: Declining initiatives that deviate from the strategy, keeping the focus sharp.

    This leader must keep the strategy alive by constantly revisiting it with the team, emphasizing why specific actions align with the broader goals.

  2. Directors or Head of Product
    Product directors, especially in larger organizations with multiple product lines, play a pivotal role in shaping and refining strategy. Their responsibilities often include:

    • Gathering Inputs: Bringing operational insights from the Product Managers (PMs) and other team members.
    • Alignment: Ensuring that the execution within their vertical aligns with the overall strategy.
    • Vetoing Off-Strategy Initiatives: Directly managing and reinforcing strategy adherence within their domain.

    Heads of Product serve as intermediaries, conveying real-world feedback from the product’s day-to-day execution back to C-level decision-makers.

  3. Group Product Managers (GPMs)
    In larger teams, Group Product Managers also contribute significantly:

    • Providing Feedback: Offering insights on strategy based on the performance and feedback within their teams.
    • Monitoring Execution: Overseeing how their squad or tribe is implementing the strategy.
    • Strategic Consistency: Ensuring their team consistently adheres to strategic priorities and escalating if there’s uncertainty on direction.

  4. Product Managers (PMs)
    Product Managers, who work closely with engineering and design teams, are instrumental in the actual execution of the strategy. They:

    • Provide Strategic Input: Frequently gather information from user interactions and product discoveries to inform the strategy.
    • Execute the Strategy: Translating strategic objectives into actionable plans within their squads.
    • Offer Execution Feedback: Regularly report back on whether the strategy is practical and effective, suggesting adjustments if issues arise.

The Spiral Process of Strategy Refinement

Strategy is a dynamic, spiral process of definition and execution. While it’s tempting to think of strategy as a static, long-term plan, real-world strategy requires flexibility. Once a strategy is defined, teams must remain open to periodic refinement based on emerging insights and operational feedback.

Emergent Strategy: Sometimes, unexpected developments require immediate adjustments to the strategy. Strategic refinement can happen as part of an ongoing cycle rather than being reserved for set periods.

Conclusion

Developing a product strategy involves multiple roles, each contributing unique insights and responsibilities. While the CPO or VP of Product typically guides the strategy, successful execution relies on a collaborative approach across levels, from C-level executives to PMs. By keeping the strategy flexible, teams can continuously adapt to new information, ensuring the product’s success in a changing landscape.