6. Case Study Building a Product Strategy - Lessons from Unico

Case Study: Building a Product Strategy - Lessons from Unico

Introduction

In this section, we’ll explore a practical example of product strategy definition, drawing from a personal experience during my time as a Head of Product at Unico. This case demonstrates how to approach strategy renewal, especially when a previous strategy is losing relevance. For product leaders entering a new role or facing strategic shifts, this example provides insights into a structured, dynamic approach for building effective product strategies.

1. Context and Initial Steps

Upon joining Unico, I noticed that the existing product strategy was becoming outdated. Competition was evolving, customer feedback was changing, and sales were encountering new challenges, all indicating that the strategy was losing effectiveness. This situation required not just a tweak but a rethinking of our entire approach.

Rather than simply refining the current strategy, I saw the need for a fresh start. Inspired by design thinking’s “Double Diamond” approach, I structured the process into two main phases: Diagnosis and Strategic Pillars and Actions. Each phase involved expanding to gather insights and then contracting to refine and focus.

2. Phase 1: Diagnosis and Research

In the first phase, the goal was to diagnose the current situation comprehensively. Here’s how the process unfolded:

  1. Conversations with Key Executives:
    I began by meeting with the CEO and VP of Product to understand their perspective and gather initial inputs. This phase was about listening rather than presenting any ideas of my own.

  2. Brain Dump Exercise:
    With some industry experience, I started writing down all my initial thoughts and observations regarding the product and the challenges it faced. I encouraged the Group Product Managers (GPMs) to do the same, allowing them to freely document their perspectives on the product’s situation, challenges, and opportunities. This "brain dump" could be in any form—documents, sketches, or slides.

  3. Reviewing Existing Research:
    In a company like Unico, previous research and diagnostics were readily available. We reviewed recent discoveries, market research, and customer feedback gathered over the last six months to enrich our understanding. This ensured we built on existing knowledge rather than starting from scratch.

  4. Additional Research and Feedback Collection:
    We identified knowledge gaps that required further research, especially in market trends and customer behavior. Requests were submitted to the Marketing Research team to gather additional data as needed.

  5. Documenting and Validating the Diagnosis:
    After gathering insights, we documented a clear diagnosis of the product’s current state and emerging trends. This document was shared with the CEO and VP of Product for feedback and validation, ensuring alignment. This phase took approximately two to three weeks, depending on schedules.

3. Phase 2: Defining Strategic Pillars and Actions

With a solid diagnosis in place, we moved to define the product’s strategic pillars and actions. This phase involved a few key exercises:

  1. Jobs to be Done Framework:
    We used the “Jobs to be Done” (JTBD) framework to clarify what core jobs or problems the product should address for its users. This helped us sharpen our understanding of the product’s value and target outcomes.

  2. "Playing to Win" Framework:
    Drawing on Lafley’s “Playing to Win” strategy book, we outlined the five key strategic components: Vision, Where to Play, How to Win, Capabilities, and Systems. Each of these elements received attention through group discussions where team members shared insights on each component.

  3. Synthesizing Inputs into Coherent Strategy:
    After gathering input, the next step was to synthesize it into a cohesive strategy. While feedback was valuable, it was essential to have a single guiding mind or a small group of leaders refining the strategy to ensure coherence. This step focused on making the strategy cohesive and focused rather than simply an amalgamation of all ideas shared.

  4. Final Approval and Buy-In:
    Once the strategy was documented, we shared it with the CEO and VP of Product for final review and approval. This phase often includes some debate, but it’s a critical step in solidifying the product’s direction.

4. Phase 3: Making the Strategy Tangible

The final step was to make the strategy tangible for the broader team. Strategy is ultimately a story you tell, and the medium you choose can influence how well the message is received and understood. Here are a few ways we brought the strategy to life:

  1. Documents or Presentations:
    We prepared a six-page document outlining the strategy or a concise slide deck. These materials provided a clear, structured overview of the product’s direction.

  2. Vision Prototype:
    Sometimes, presenting the strategy in a more dynamic format, like a “vision prototype” or “vision type,” can be more engaging. This might involve a short video or storyboard that visually conveys how the product will impact users’ lives.

  3. User Journey Video:
    We created a video to illustrate what the user experience would look like once the product achieved its strategic goals. This approach helps team members visualize the impact and align with the strategy more fully.

Key Takeaways

Here are the main lessons from this case that can guide your product strategy process:

  1. Start with a Thorough Diagnosis:
    Understanding your current situation, competition, and customer needs is crucial. This step ensures your strategy addresses real, present challenges.

  2. Clearly Define Your Goals and Path:
    Defining where you want to go and how you plan to get there is a delicate, detail-oriented task. Learn from existing frameworks like JTBD or “Playing to Win,” and adapt them to suit your context.

  3. Involve the Right People at the Right Time:
    Don’t crowd the strategy process with too many voices from the start. Instead, consult the right people at various stages to refine and validate the strategy.

  4. Use “Strategy” Wisely:
    Strategy isn’t just a label for something important. Reserve it for guiding long-term decisions that will shape the company’s future.

  5. Continuous Refinement:
    Strategy is dynamic. Expect to revisit and adjust it regularly based on new insights and changes in the market.

  6. Recommended Reading and Resources:
    For further exploration, I recommend “Good Strategy, Bad Strategy” by Richard Rumelt and “Playing to Win” by Lafley. Additionally, resources like memos from venture capital firms (e.g., bvc.com/memos) offer case studies with strong diagnostics and prognostics, which can serve as strategic inspiration.

Conclusion

Developing a product strategy involves deep understanding, a structured process, and careful alignment. By starting with a thorough diagnosis, engaging in focused frameworks like JTBD, and refining inputs into a cohesive strategy, product leaders can build effective, resilient strategies that adapt to market and organizational changes.