How to Create a Product Strategy
A Practical Framework for Value Creation
Summary
“A product is an experience that creates an outcome.”
Simon Cross
Associations create value. We draw on our community-building skills to empathize and build relationships with members. This builds trust and serves as the anchor for creating value to keep members connected and engaged. Value takes many forms: networking, volunteer service, advocacy, professional development, community building, or career guidance.
That said, most association value is traditional and positioned as benefits: membership, events, content, or discounts. While certainly defendable, these benefits hem us in due to their lack of specificity and differentiation.
All great strategies are based in making clear, cohesive, integrative choices. A product strategy aligns with an org-wide strategy and defines what you want to achieve with a product, how you plan to get there, and why you will succeed. Using a variation of the lean canvas via a real-world example, this article outlines the steps an association can take to build a product strategy.
The product community is a product development learning community designed specifically for associations.
The Strategy Imperative
“Thinking about strategic choices should be oriented heavily toward creativity and uniqueness. It is about what could be, not what is.”
Roger Martin
Strategy is investing in a set of focused choices that define a shared, compelling future. The purpose is to develop a unique value proposition and to gain competitive advantage. It involves making deliberate choices on who we want to be, where and how we want to serve, how we plan on winning, and where to invest and allocate resources to achieve specific outcomes.
Similarly, a product strategy is a set of focused choices that guides the development, positioning, and delivery of products, programming, or services to meet customer needs while aligning with business objectives. For associations, a product strategy represents the entirety of value produced, delivered, sparked, or extended. It is crucial for several reasons:
Value-Based – Associations exist to serve the interests and requirements of members. A well-defined product strategy helps associations understand the evolving needs, preferences, and pain points of their members, allowing them to develop products that directly address those needs and provide tangible value.
Differentiation – Associations operate in competitive environments, vying for the attention of members. A strong product strategy can help an association differentiate itself by offering unique and compelling products that set them apart from competitors and provide a distinct value proposition.
Prioritization – Associations run lean so it is essential to prioritize and allocate resources effectively. A product strategy helps associations identify the most promising opportunities to focus investments on developing and enhancing the products that will have the greatest impact and generate the most value.
Engagement – Products are the primary means through which associations interact with and provide member value. A well-crafted product strategy can lead to increased engagement, satisfaction, and retention by delivering relevant, consistent, high-quality products that meet members' evolving needs.
Revenue – Associations require sustainable revenue to support day-to-day operations and new initiatives. A product strategy can help identify revenue-generating opportunities through the development of premium products, new services, or membership tiers, contributing to financial health and growth.
By developing a product strategy, associations can ensure that their product portfolio remains aligned with their mission, values, and evolving member needs. A strategic approach enables associations to prioritize efforts, allocate resources effectively, and create a compelling value proposition that attracts and retains members, ultimately contributing to the long-term success and financial sustainability.
Think of a product strategy as having three components:
Product Vision or a crisp description of your destination. I covered this in my article, Great Visions Attract Like a Magnet.
Strategic Framework or the integrative choices that define how the product you build will achieve success with your members. This is the subject of this article.
Product Roadmap or how you will execute on the strategy. I will cover this in a future article.
Investing in strategy involves committing capital, time, and effort to support execution. This can include activities such as acquiring new technologies, hiring staff, enhancing organizational capabilities, expanding infrastructure, reaching new markets, and/or growing research and development.
Before we get into the next section, here are few words of caution:
Mindset. Developing a product strategy is wholly different from developing a strategic plan, product plan, or product roadmap. Success takes a mindset that focuses on balancing discipline with an openness to new ways of doing things.
Investment. Developing a robust product strategy is possible, but hard to implement unless the association has developed and committed to an organization-wide strategy. This overarching strategy demonstrates a commitment to making specific choices.
Integrative. Each product should have its own product strategy. What may look like an extra layer of paperwork is actually a great way to involve a wide breadth of stakeholders. It is also a good way to leverage or find commonalities across different products.
Usability. Great product strategies are designed to be usable. This entails an awareness of current capabilities and capacities as well the ability to execute successfully and strategically on a set of choices.
There are many ways to design a product strategy. We are going to focused on an adapted version of the lean canvas called the product strategy canvas.
Using the Product Strategy Canvas
“True strategy is about placing bets and making hard choices.”
Roger Martin
“Product strategy is the connective tissue between what a product team is doing day-to-day and the company’s ambition.”
Ravi Mehta and Zainab Ghadiyali
A product strategy is built on the same premise and largely uses the same tools and practices that one would use when building an organization-wide strategy. Our goal is to create a strategy that is focused, aligned, practical, and usable.
I wrote an article called Playing to Win that lays out what this looks like for an association. It is based on the premise that great strategies are based in making clear, cohesive, integrative choices. The core elements are: winning aspiration, where to play, how to play, capabilities, and systems and measures
I also wrote an article on How to Create a Winning Business Model which Ash Maurya based a companion model called lean canvas. I have adapted his work for associations and called it the product strategy canvas.
Let’s look at an example product strategy for a three-course learning pathway for an association serving information security professionals.
Problem – Identifies the need or pain point that your product aims to solve for your customers.
Questions to answer: What is the problem you are trying to solve? What are the main frustrations or challenges faced by your customers?
Example: Information security professionals struggle to keep up with the rapidly evolving threat landscape and the latest techniques and best practices in cybersecurity.
Customer Segment – Identifies the specific group of customers you are targeting with your product.
Questions to answer: Who are your target customers? What are their characteristics, demographics, and behaviors?
Example: The target customer is information security professionals, including cybersecurity analysts, security engineers, and IT security managers, who are members or are interested in career advancement.
Unique Value Proposition – Describes the unique benefit or value that your product provides to your customers.
Questions to answer: What is the unique value or benefit that your product or service offers? How does it differentiate from competitors?
Example: A comprehensive, up-to-date, and industry-recognized learning pathway equips information security professionals with essential knowledge and skills to effectively mitigate cyber threats and protect their organizations.
Solution – Outlines the specific features or products you are offering to address the problem and deliver the unique value proposition.
Questions to answer: What is the product or service you are offering? What are its key features and functionalities?
Example: A three-course learning pathway consisting of interactive online courses, hands-on labs, and certification exams covering the latest cybersecurity trends, techniques, and best practices.
Channels – Describes the means by which you will reach and acquire customers, as well as deliver your product to them.
Questions to answer: How will you promote and market your product? What channels will you use to reach and acquire customers? How will you deliver your product?
Example: The courses will be delivered through the association's online learning platform, accessible to members and non-members. Promotion will be done through the association's website, social media channels, email marketing, and industry events.
Revenue Streams – Identifies the ways in which you will generate income from your product or service.
Questions to answer: How will you generate revenue? What are your pricing models and strategies?
Example: Revenue will be generated through enrollment fees, with discounts for association members. Additional revenue streams may include sponsored content, advertising, and certified training partnerships with employers.
Cost Structure – Outlines the major costs involved in delivering your product.
Questions to answer: What are the key costs associated with your business model? What are the fixed and variable costs?
Example: Costs include course development and instructional design, subject matter expert fees, learning management system (LMS) hosting and maintenance, marketing and promotion, and administrative expenses.
Key Metric – The specific measures you will use to track the performance and success of your business model.
Questions to answer: What are the key performance indicators (KPIs) you will use to measure success? How will you track and monitor these metrics?
Example: Key metrics include course enrollment numbers, completion rates, learner satisfaction scores, certification pass rates, and revenue generated from course sales and partnerships.
Unfair Advantage – Identifies the unique strengths, resources, or capabilities that give your association a competitive edge over others.
Questions to answer: What unique advantages or assets do you have that competitors don't? How can you leverage these advantages?
Example: The association's established reputation, industry connections, and extensive network of cybersecurity professionals provide a competitive advantage in developing and delivering high-quality, relevant, and industry-recognized learning content.
By completing the product strategy canvas, an association can quickly sketch a focused product strategy for a three-course learning pathway.
Committing to Growth
“No strategy is meaningful unless it makes clear what the organization will not do.”
Joan Magretta
As always, strategy is about choice. This includes deep consideration of who you serve and why, how, and where you will serve them, cost structures, and revenue streams. In making these choices, we choose not to do things. And in choosing, we commit to clarity, excellence, and growth.
A great association product strategy is focused, aligned, practical, and usable. Strategy becomes tangible when we are all in the same boat, we know how to row, and we’re rowing in the right direction together as a team. This is how we make the progress that comes from earned trust.
Growth isn’t always size; growth is also health, perspective, and connection. Yes, great strategy can vastly enhance and grow your association, but if you’re already at a workable size think of growth as powering your community and finding new ways to connect and engage those who already love what you do.
I lead the product community; we are a learning community because we believe great relationships help us create the value our members want. Remember, product-led growth fuels connection. Join the product community and flip your destiny.
About the Author
James Young is founder and chief learning officer of the product community®. Jim is an engaging trainer and leading thinker in the worlds of associations, learning communities, and product development. Prior to starting the product community®, Jim served as Chief Learning Officer at both the American College of Chest Physicians and the Society of College and University Planning. Please contact me for a conversation: james@productcommunity.us