Goals are equated with strategy
However, this is not the same thing at all.
There are no strict definitions for these concepts, and even members of the same team may perceive them differently. To put it simply, strategy is the path to success, and the goal is what you achieve by winning. For example, for a chess player, the first is the sequence of moves on the board, and the second is winning the game.
It is wrong to say: "Our strategy is to get 20% more profit!" This is precisely the goal. And strategies to achieve it can be applied differently: to cover new markets, for example, or to increase the conversion between testing a free sample and the first purchase, etc.
Achieved goals are equal to the strategy implemented
In reality, the degree to which the product strategy is being implemented shows whether the team is moving towards its goal.
Most often, companies practice vnpay database tracking short-term priorities because this is the easiest way. But it happens that a goal is achieved without any connection to the strategy. It could have been initially adopted without taking into account long-term plans, or it was outlined based on erroneous data. And for strategy, the external conditions of business existence (market characteristics, competitors' behavior) are also very important. Therefore, it is important to understand the difference between following a long-term policy and achieving short-term goals. If you do not attach importance to strategic progress, then in the future the company will certainly have problems.
Mistakes in Product Strategy Development
Here's an example of a product strategy that went unrealized: In 2001, Kodak invested in the photo-sharing application Ofoto. In exchange, the company was supposed to be able to print digital images for its customers, thus expanding its range of printing services. In reality, Kodak supported Ofoto, but the sharing strategy (replication of IT images) remained unrealized. Digital printing did not become a new branch of business.
Product strategy is equated with company policy
But the product is not the only important element of business. Sales management, the work of marketers, support services and everyone else are also of great importance here.
An example of an effective combination of product strategy and company policy is the promotion of Stitch Fix. This is an application that evaluates the user's stylistic preferences and selects fashionable, stylish things for him.
Stitch Fix
However, to work successfully here, you need not only a cool interface, but also the active participation of all departments of the company in order to minimize costs. What did Stitch Fix do? - Optimized accounting and logistics by investing in in-depth data mining. As a result, it was possible to more accurately plan the volumes of purchases and shipments from the warehouse. Thus, the product and production strategies together gave impetus to the further development of the company.
The goal comes first, and then the plan to achieve it
In fact, the existence of a project is the main condition, without which the indicators cannot be achieved. If you give the team the task of first setting priorities and then moving towards them, then these will end up being short-term goals that employees will try to achieve by hook or by crook, without using valuable features, normal UX and without thinking about the company's development prospects.
Limits should be formed based on the overall development plan, which in turn is built taking into account the interests of the consumer. This approach allows you to think more about customers during the development of a product strategy, without being distracted by everything else.
For example, Stripe added (within the framework of its existing product strategy) to its main paid product other offerings in the form of Stripe Atlas (an “assistant” for opening startups) and Stripe Press (publishing books on economic topics, describing advanced technologies, etc.).
Stripe Atlas
If the company had been following the “Goals First” approach, it would have continued to tinker with short-term goals like simplifying checkout and increasing conversion. But product managers were tackling the strategic problem of expanding the range of initiatives (with no idea when they would even pay off).
Bottom line: Stripe is helping more and more online businesses enter the market, helping them improve, and thereby preparing future customers for themselves. In essence, it is “increasing the GDP of the internet.”
Developing a product strategy is where a company starts. But to fully realize its potential, all departments must work together. Marketers, technologists, production – everyone must join forces, make plans, and move together toward a common global goal.