3. Understanding Product Culture
What is Product Culture?
"Product culture" is a term frequently used in the industry, but what does it really mean? At its core, product culture is a subset of company culture, specifically focused on the behaviors, values, and practices that drive the creation and continuous improvement of products.
According to Edgar Schein, culture is a set of shared assumptions and behaviors that a group uses to solve problems and adapt to situations. In the context of product development, a strong product culture ensures that the team consistently delivers high-quality, user-focused products that align with the company's strategic goals.
Core Values of a Successful Product Culture
Building a successful product culture requires a commitment to certain core values. These values guide how teams approach product development, prioritize tasks, and interact with stakeholders.
1. Early and Frequent Delivery
One of the most critical aspects of a strong product culture is the commitment to delivering value early and frequently. This means getting a product or feature into the hands of users as quickly as possible, even if it's not perfect. Reid Hoffman, one of the founders of LinkedIn, famously said, "If you are not embarrassed by the first version of your product, you've launched too late." This approach emphasizes the importance of learning from real user feedback and iterating quickly based on that feedback.
Why is this important?
- The Moment of Truth: The real test of a product’s value is when it’s in the hands of the user. Usability tests and prototypes are valuable, but the true test comes from how real users interact with the product in their environment.
- Avoiding Perfectionism: Striving for perfection before launch can delay the delivery of valuable features and may result in a product that doesn’t meet the actual needs of users. By delivering early, teams can refine the product based on real feedback rather than assumptions.
- Return on Investment (ROI): The sooner a product is launched, the sooner it can start generating value, which in turn funds further development. Early delivery enables faster learning and quicker ROI.
2. Focus on the Problem
Another essential value in product culture is maintaining a strong focus on understanding the problem before jumping to solutions. Albert Einstein once said, "If I had an hour to solve a problem, I'd spend 55 minutes thinking about the problem and five minutes thinking about solutions." This principle emphasizes the importance of deeply understanding the user's pain points before developing features or products.
Why is this important?
- Simpler Solutions: A deep understanding of the problem often reveals simpler, more effective solutions. For example, in the famous (albeit anecdotal) story of the space pen, while the U.S. developed an expensive pen that could write in zero gravity, the Russians used a pencil. Although the story is a myth, it illustrates the value of focusing on the problem first.
- Avoiding Feature Creep: When teams understand the problem well, they are less likely to add unnecessary features that complicate the product and delay delivery. A clear focus on the problem helps maintain a lean, effective product that solves user needs without excess.
3. Product as a Vehicle, Not the Goal
A key realization in a mature product culture is that the product itself is not the end goal; it’s a means to achieve business objectives. The true purpose of a product is to solve a user’s problem or fulfill a need while supporting the company’s strategic goals.
Why is this important?
- Results-Oriented Thinking: Teams should focus on the outcomes they want to achieve rather than the product or technology itself. For example, when developing an app for real estate agents at Lopes, the team initially aimed to create a comprehensive app with numerous features. However, the core problem was delivering leads to agents quickly, which could be solved more efficiently with SMS notifications instead of a full app. This approach emphasizes solving the problem effectively, rather than being attached to a specific product vision.
- Flexibility in Solutions: Recognizing the product as a vehicle allows teams to explore various solutions, including those that may be simpler or more cost-effective than the original idea. This flexibility can lead to quicker delivery and better results for the user and the business.
4. Ecosystem Mentality
In product development, particularly in platforms or marketplaces, it’s essential to adopt an ecosystem mentality. This means considering the impact of decisions on all stakeholders involved—whether they are customers, suppliers, or partners—and ensuring that the product delivers value across the entire ecosystem.
Why is this important?
- Holistic Success: A successful product benefits all parties involved. For instance, during the COVID-19 pandemic, Gympass faced the challenge of supporting its network of gyms, which were forced to close. While the immediate reaction was to focus on the clients and their employees, Gympass also needed to support the gyms, which were crucial to its ecosystem. By enabling gyms to offer online classes and compensating them based on participation, Gympass ensured that all parts of its ecosystem remained viable.
- Sustainable Growth: An ecosystem mentality fosters sustainable growth by ensuring that no part of the system is neglected. This balance helps in maintaining long-term relationships and trust with all stakeholders.
Conclusion
Building a strong product culture is about more than just following best practices; it's about instilling values that guide every aspect of product development. The four core values—early and frequent delivery, a focus on the problem, viewing the product as a vehicle, and maintaining an ecosystem mentality—are essential to fostering a culture that consistently produces successful products. By prioritizing these values, organizations can create a product culture that not only meets user needs but also drives long-term business success.