2. Product Vision and Product Statement

Now we will dive into the second part: Product Vision and Product Statement. Do you know the difference?

A Product Statement is similar to the company’s vision—it provides a long-term view of the company’s product strategy. Think of it as a compass you can consult whenever you face conflicting priorities or a lack of direction. It helps guide strategic decisions throughout the product development process.

You begin with a high-level vision, which is then translated into a more strategic guide for action. This serves as a roadmap for developing the product in a more tactical way. Without a clear product vision, it would be difficult to build a strategically sound product. How would your product team know where to focus resources, which customers to target, and what markets to enter?

A product vision is not a detailed plan on how to achieve your goals; rather, it is a high-level guide for all the stakeholders involved in product development—product teams, developers, marketers, designers, and others.

The product vision plays a critical role in strategy, as goals are derived from it. Through a clear product vision, you can define strategic objectives like:

You might be wondering about the difference between a Product Vision and a Product Statement. In fact, there is no difference. Both terms refer to the same long-term vision of where we want to take the product.

Defining Product Strategy

There are two different scenarios: companies with one product and companies with multiple products. In companies with one product, the company vision and the product vision often overlap. In companies with multiple products, each product has its own vision.

Building a product strategy is like a funnel. You start with the company’s purpose, which is an inspirational vision of where you want to be. This gets broken down into strategic objectives, often referred to as investment theses. For example, one investment thesis could be "I want to reach X million new customers," which leads to a product vision of how to achieve that.

From there, you can break down the product vision into more specific goals, which form the roadmap and product backlog. This process can be divided into two parts: the strategic mission and the execution phase.

Golden Circle: Starting with “Why”

Using Simon Sinek's Golden Circle method is an effective way to define a product vision. Many companies rush into creating a product without first establishing a clear vision, leading to products that lack strategic focus.

In Sinek's model:

Product statements, like product visions, are operational tools that describe where the product should go and what it hopes to achieve in the long term. A product vision outlines the future state of the product, giving direction to all teams involved.

Characteristics of a Good Product Vision

Creating a product vision is challenging. If it were easy, all products would be successful. A good product vision should always be tied to the company’s purpose. David Hansen once said, "A goal without a plan is just a dream."

A strong product vision should be:

  1. Aspirational: It gives your team a greater reason for working on the product and inspires them to focus on the details that will make the product great.
  2. Actionable: While product visions often contain lofty goals, they should include actionable components that give the company a clear path to make the vision a reality.
  3. Aligned with corporate goals: Your product vision should support the overall goals of the company and align with its broader strategy.

Product Vision vs. Product Strategy

It’s essential not to confuse product vision with product strategy. The product vision is not a step-by-step plan but a guiding light. The product strategy, on the other hand, shows how to achieve that vision. This separation allows you to pivot if needed without losing sight of your long-term goals.

Collaborative Creation of Product Strategy

A common question is, "Who creates the product strategy?" While it's typical for companies to have a defined strategy, the entire organization should participate in shaping it. Product strategy insights can come from any team member. The Product Manager or Group Product Manager (GPM) usually leads the process and ensures everyone understands the strategy.

Validity of a Product Strategy

Product strategies typically evolve over time. While short-term strategies focus on immediate actions, a long-term vision can guide a company’s direction for three to five years. For instance, Amazon focused on increasing market share over revenue in its early years, which led to its current success.

Conclusion

A product vision is like a sprint roadmap, guiding short-term and long-term objectives. It represents a combination of product priorities built over time. As we saw with Google Calendar, a clear vision can guide teams in building successful products without needing to define every feature upfront.

Remember, a product vision isn’t about strict adherence to a rigid plan. It should be flexible enough to adapt to changes while keeping the team aligned toward a common goal.