Module 3: The Product Model for CTOs
Welcome to Part 1 of Module 3, where we're delving into the foundational principles of modern product discovery. This is where we shift gears from building systems to building products—products that customers love and that drive business success. This content also forms part one of module three of my course on scaling technology and teams.
As CTOs, we often get caught up in the technical details, but it's crucial to remember that technology is a means to an end. That end is creating valuable products that solve real problems for our users. This part of the module is all about understanding how to discover and validate those product opportunities effectively.
From Projects to Products: A Paradigm Shift
Traditional product development often focuses on projects—defined scopes of work with fixed timelines and budgets. We build what we think customers want, based on assumptions and often outdated roadmaps. This "build trap," as described in "Escaping the Build Trap" by Melissa Perri, often leads to building features that nobody uses.
Modern product discovery, on the other hand, is about focusing on products—ongoing efforts to solve a specific customer problem. It's about continuous learning, experimentation, and adaptation. We don't just build; we learn, iterate, and validate. This is the core of what Marty Cagan emphasizes in his books "Inspired" and "Empowered."
Continuous Discovery: The Heart of Modern Product Development
The key to building successful products is continuous discovery. This means constantly exploring, validating, and refining product ideas through a series of iterative cycles. It's not about one big bang launch; it's about a continuous flow of learning and improvement.
The Four Big Risks: Addressing the Critical Questions
Marty Cagan highlights four key risks that every product idea must address:
Value: Will customers actually use this product? Does it solve a real problem for them?
Usability: Can customers easily understand and use this product? Is it intuitive and user-friendly?
Feasibility: Can we actually build this product with our current technology and resources?
Business Viability: Does this product make business sense? Will it generate revenue or achieve other business goals?
Modern product discovery is about systematically addressing these risks through research, prototyping, and testing..
Outcome-Based Roadmaps: Focusing on Value, Not Features
Traditional roadmaps often list specific features with target dates. This output-focused approach can lead to building features that don't actually deliver value. Modern product roadmaps, on the other hand, are outcome-based. They focus on the desired outcomes we want to achieve, such as increased user engagement or reduced churn. This gives the product team more flexibility to experiment and find the best way to achieve those outcomes.
Product Vision and Strategy: Setting the North Star
A clear product vision and strategy are essential for guiding product discovery and development. The product vision defines the long-term aspirations for the product—what it aims to achieve and the impact it wants to have on the world. The product strategy outlines the plan for achieving that vision—the key initiatives and priorities that will guide the product team's work.
Key Principles of Modern Product Discovery:
Customer-centricity: Everything starts with the customer. We need to deeply understand their needs, pain points, and motivations.
Continuous learning: We must constantly learn and adapt based on feedback and data.
Experimentation: We need to be willing to experiment with different solutions and validate our assumptions.
Collaboration: Product discovery is a collaborative effort involving product managers, designers, engineers, and other stakeholders.
Case Study: How Intuit Transformed from Projects to Products
Intuit, the company behind TurboTax and QuickBooks, is a great example of a company that successfully transformed from a project-centric to a product-centric organization. This transformation is highlighted in Marty Cagan's "Transformed." Intuit's journey provides valuable lessons for any CTO looking to shift their organization towards modern product discovery.
The Challenge: A Project-Driven Bottleneck
Intuit, like many companies, was initially organized around projects. Teams were assigned to deliver specific features based on a roadmap, often with little understanding of the actual customer needs or the overall product strategy. This project-driven approach led to several challenges:
Feature Factory: Teams were focused on output (delivering features) rather than outcomes (solving customer problems).
Lack of Customer Focus: Decisions were often based on assumptions rather than real customer data.
Slow Time to Market: The project-based approach led to long development cycles and slow time to market for new features.
Low Innovation: Teams had little room for experimentation or innovation, as they were tightly constrained by project timelines and budgets.
The Transformation: Embracing Product Thinking
Intuit recognized the need to shift to a more product-centric approach. They embarked on a transformation that involved several key changes:
Organizing around Products: Intuit reorganized its teams around specific products or customer segments, giving them end-to-end ownership.
Embracing Customer-Centricity: They implemented a strong focus on customer research and feedback, using techniques like "Follow Me Home" studies to deeply understand customer needs.
Empowering Product Teams: They empowered product teams to make decisions about what to build and how to build it, giving them the autonomy to experiment and iterate.
Focusing on Outcomes: They shifted their focus from output (delivering features) to outcomes (achieving specific business goals).
The Results: A Product-Led Renaissance
Intuit's transformation has been highly successful. They have seen:
Increased Innovation: Teams are now empowered to experiment and innovate, leading to the development of more valuable and impactful products.
Faster Time to Market: The product-centric approach has significantly reduced development cycles and time to market for new features.
Improved Customer Satisfaction: By focusing on customer needs, Intuit has been able to create products that are more user-friendly and solve real problems for their customers.
Increased Business Performance: The transformation has led to significant improvements in Intuit's business performance, including increased revenue and market share.
Key Takeaways for CTOs:
Customer Focus is Paramount: Deeply understanding customer needs is essential for building successful products. Action: Implement regular customer research and feedback loops.
Empowered Teams Drive Innovation: Giving teams autonomy and ownership allows them to be more creative and responsive to customer needs. Action: Organize teams around products or customer segments and empower them to make decisions.
Outcomes Over Output: Focus on the value you're creating for customers, not just the features you're delivering. Action: Shift to outcome-based roadmaps and track key metrics that measure product success.
Transformation Takes Time and Effort: Transforming from a project-centric to a product-centric organization is a significant undertaking that requires commitment and support from leadership. Action: Be patient and persistent in your transformation efforts. Communicate the vision clearly and celebrate early wins.
Further Reading/Viewing:
Book: Inspired: How To Create Tech Products Customers Love by Marty Cagan
Book: Empowered: Ordinary People Doing Extraordinary Things by Marty Cagan and Chris Jones
Book: Escaping the Build Trap: How to Launch Products That Customers Love by Melissa Perri
Article: Marty Cagan - The Four Big Risks
Search YouTube for "Marty Cagan - Continuous Discovery" for various talks and presentations.