Having a strong product strategy is essential for any business that wants to grow and be a market leader by aligning with its business goals. It serves as a compass for the entire organization, getting everyone excited about the product vision and mission. The Entrepreneurial Operating System (EOS) has 8 questions that serve as a framework to define your vision, get your team aligned and prioritize the key components of your business strategy.
1. What Are Your Core Values?
Core values are the principles that shape your company’s culture and decision making. They are the foundation of your company’s behavior and a moral compass for your team. Get these values identified and articulated first, and you’ll have a cohesive and motivated team aligned with the company's goals.
How to Define Core Values:
• Think about the non-negotiables in your organization.
• Get your team involved so everyone is aligned and bought in.
• Keep the list of core values to 3-7 so it’s focused and actionable.
2. What Is Your Core Focus?
Your core focus is the space where your company best aligns with customer needs and provides the most value to customers. It’s your overall purpose and the specific niche you want to own. Stay focused on this even as your business changes.
How to Identify Core Focus Using a Product Strategy Framework:
• Define your purpose beyond just making money.
• What are the unique skills or assets your company has?
• Is your core focus aligned to market needs and opportunities.
What Is Your 10-Year Product Vision?
A 10-year vision is a long-term, big picture goal that inspires and guides your company’s journey. An initial strategy is crucial to understand and build upon existing strategies, ensuring continuous evolution and refinement throughout the product lifecycle. It’s a bold statement of where you want to be in 10 years.
How to Set a 10-Year Vision:
• Be bold but realistic; choose a target that stretches your capabilities.
• Link this to your core focus and market opportunities.
• Communicate this to all stakeholders so everyone is aligned and committed.
4. What Is Your (High-Level) Marketing Plan?
Your marketing plan tells you how you will attract and retain customers. Involving other departments such as marketing, sales, and other business units in your product strategy is crucial for successful product management and overall business success. It covers your target market, brand positioning and key marketing activities.
How to Develop a Marketing Plan with a Product Roadmap:
• Identify your ideal customer profiles (ICPs) and their pain points.
• Develop a unique value proposition that differentiates your product.
• Choose the marketing channels that reach your target audience.
5. What Is Your 3-Year Plan?
The 3-year plan bridges the gap between your 10-year vision and short-term actions. It’s a snapshot of what your company will look like in 3 years, including key metrics, milestones, and product initiatives.
How to Create a 3-Year Plan:
• Set specific, measurable goals for revenue, market share and other key metrics.
• Outline the major projects or initiatives that will achieve these goals.
• Link the 3-year plan to your 10-year vision.
6. What Is Your 1-Year Plan?
The 1-year plan turns your 3-year plan into action and milestones, serving as a crucial phase in the product lifecycle. It outlines the specific goals and initiatives your team will focus on over the next 12 months.
How to Create a 1-Year Plan:
• Set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound)
• Prioritise initiatives that have the biggest impact on your 3-year and 10-year plans.
• Review and adjust the plan regularly based on performance and market changes.
7. What Are Your Rocks (Quarterly Priorities)?
Rocks are the top priorities your team will focus on in the next 90 days. Answering key questions helps define these priorities, ensuring everyone is aligned and working towards the same short-term goals.
How to Set Quarterly Rocks for Product Initiatives:
• Limit the number of rocks so you can focus and manage.
• Assign clear ownership and accountability to each rock.
• Track progress and adjust as needed.
8. What’s getting in the way of all this?
Product management is key to achieving your strategic goals. Review regularly and tackle any that arise.
How to Manage Issues:
• Create a culture of transparency and open communication.
• Use a process to identify, prioritise and solve issues.
• Encourage your team to bring up challenges and solutions.
Conclusion
By answering these 8 questions you can create a solid product strategy that aligns your team and drives your business. Product managers play a crucial role in shaping and executing this strategy, ensuring collaboration with stakeholders and adapting based on feedback. Remember, it’s not just about planning, it’s about executing and adapting as you go.
