We all are customers of products and services, both in our personal and professional lives. The overarching requirement is that what we buy meets our expectations for functionality and quality for the price we pay. Regardless of your industry or development methodology (waterfall or agile for example), I suggest that product teams do not lose sight of the reasonable expectations of their customers.
The product team is often thought of as a trio consisting of engineering, operations/manufacturing, and product management. Different organizations may emphasize different responsibilities for product managers. While my activities at Company A may differ somewhat from your activities at Company B, product management teams are typically responsible for product requirements and being the voice of the customer to the product team.
Product development is a challenging balance of too many features, scarce resources, and time-to-market constraints. There are requirements that can and need to be captured formally in a product requirement document (PRD) or user stories. Many of these requirements may be traceable to a technical standard, regulation, or specific line in a customer's request for proposal document. Some other requirements may not get formally captured for a number of reasons.
I find that when engineering asks product managers how the customer wants something or if it is acceptable for the customer deliverable to have a particular issue, the question can often be answered based on the customer's reasonable expectation especially when the team has a strong customer relationship and understands the product applications.
For example when you order a meal at a restaurant, you expect a cold dish to be served cold, a hot meal to be served hot, and all meals are served to your table at the same time. Meals being served to the table simultaneously in a timely manner is analogous to a product development release: all committed features complete and included in the release on the promised date. If development (the kitchen) has a challenge with one feature (a meal), then should the customer with the late meal be forced to tell the table to "please go ahead and eat without me" or "please everyone wait for my meal"? By the way delay negotiation should be done earlier — when the waiter took the order: broiled seafood dinners may take longer.
Another example, every driver I know expects the windshield wipers to work at the selected speed regardless of the transmission gear, the headlights, or the song playing on the radio. Can all of your product features that can be turned on at the same time work at the same time? If not, the customer's reasonable expectation may not be met.
Customers, or product managers as their advocate, do not always have a "voice", especially with new products and services. And if you ask customers too many questions with obvious answers, then you may get some odd looks. What is your requirement for the temperature of your baked potato?
I am not trying to trivialize the product team's process to accomplish their mission. And quite frankly, this is not a product management principle as much as a good fundamental business practice. A foundation of strong product application knowledge and customer intimacy is critical for the product team to understand the reasonable expectations and requirements.
For success do not get too caught up in the technology, development processes, and any other challenges and lose sight of what your customers would reasonably expect of the product — think as if you are the customer for your own product.
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Ecosystem is a common term in business conversations and marketing collateral. Can you describe yours with a diagram? How much time do you spend caring for and feeding each of the subsystems? Or are you—to continue to the ecological metaphor of the term— merely a creature in the ecosystem? I recently watched a documentary about invasive Burmese pythons impacting the Florida Everglades ecosystem. Don’t be python food!
The Merriam-Webster dictionary defines an ecosystem (2nd meaning) as “something (such as a network of businesses) considered to resemble an ecological ecosystem especially because of its complex interdependent parts.”
An ecosystem view is a valuable exercise for any market offering. Your ecosystem will contain many key, interdependent players who exchange money, strategic value, and information.
I am an industry mentor for the National Science Foundation (NSF) Innovation Corps (I-Corps) current cohort. Early in the process, each team had to diagram their ecosystem to support the commercialization of their innovation. The graphic includes the flow of money, product, influence, and data between the players. This ecosystem map evolves for each team as their hypotheses are tested.
Most folks think only of the primary ecosystem players: suppliers, customers, and partners. The I-Corps program demonstrates there are many more. Customers can include decision-makers, influencers, economic buyers, end users, and saboteurs. External third parties are important. Think of the impact of regulators, government agencies, standards bodies, industry associations, trade organizations, and key service providers. Partners can share risk or create value. Some partner relationships are formal, and some are less formal.
The most successful business ecosystems are more than just a mention on PowerPoint or a display of logos on a website. Successful companies recognize, understand, and manage their ecosystems for the greatest value.
Have you diagrammed the ecosystem for your market offering?
How much of your ecosystem is actively managed as a productive system?
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The COVID-19 pandemic introduced the term “supply chain” into everyone’s vocabulary. It is no longer a term unique to manufacturing operations professionals. From semiconductor chips to toilet paper, hard-to-find items were a reality for every person on this planet. What was the cause of empty shelves, delays, and higher prices? “Supply chain” was the usual answer.
So, what is a supply chain? It is the interconnected journey that is embedded in all product manufacturing. All physical products come from combining raw materials along with human resources and machines to create and assemble parts to make finished goods. That “chain” is the combination of multiple suppliers, sub-assemblies, and workflows – or multiple links in the chain. Think of the complexities of links if the product is an automobile.
Each step along the way to a finished product (or widget as your Econ professor used to say) needs to be dimensioned, planned, forecasted, and scheduled for all the resources and materials to align with the customer demand. Without cohesive alignment, problems occur that can torpedo customer satisfaction and business performance. No one is happy with long-lead times, excess inventory, missed revenue timing, expediting fees, and competitive disadvantage.
While the idea of supply chains is clear to most folks when you are talking about widgets, it may be less obvious that professional and technical services also have supply chains and need similar attention to detail for success. It is crucial to realize that services supply chain planning is often more complex than product supply chain.
What makes services supply chains complicated? Some reasons are process-oriented such as software planning and forecasting tools have not been widely adopted and integrated. Also, services often have more project-specific variables than the manufacturing of standard products. But the biggest reason that services are inherently more challenging and complex is that you are now looking for people--not just more parts or a new piece of manufacturing equipment. It can take far more lead time to locate and enable the required resources (i.e., people). Along with lead time, you will also need to keep a constant eye on capacity compared to demand. Your resources need to be productive and highly utilized for the optimum return on business assets and investments. Having skilled resources available is critical to service offerings. Hats off to The Fiber Broadband Association (fiberbroadband.org) for their focus on workforce development programs. They recognize that this need for skilled labor requires action now to be ready for the rollout of the Broadband Equity Access and Deployment (BEAD) initiative in the US.
Is a service offering part of your business plan? Plan and forecast with the same rigor as with products. At a minimum you should be focusing on the volume and timing of your orders and deliverables; creating a model of work effort including types of resources needed and duration; designing your process including workflow and work instructions; identifying your required capacity over time; obtaining the necessary tools and people (including the skills they need, certifications, time needed for recruiting and onboarding, etc.).
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How many times do we say “it depends” as the answer to product or project questions regarding say price, duration, or resources?
Well it often does depend. There are dependencies or variables: some known and some unknown. The buyer may not yet have specific identified needs. The seller may have the capabilities, but there could be broad applications. Projects may be similar but somewhat unique. Enough history may not exist to state a truly typical value. Often the resulting conversation seems to bounce around considerations of one or two of the dependencies until folks just shrug their shoulders and often move on. Now what?
Is the “it depends” answer an obstacle to continuing the product/project conversation or an opportunity to further develop an engagement? An approach to consider that could help move the conversation forward may be the following:
1. Identification. Well, what exactly are the key dependencies?
These are discussion points for what is most relevant and can help better understand the customer needs or project requirements.
2. Valuation. Apply some reasonable values for those key dependencies.
These values may come from voice-of-the-customer dialogue, experience, or pure hypothetical assumptions for discussion. “Walking around numbers” can help a discussion toward a successful collaboration, even with the “budgetary” and “your results may vary” caveats.
How have you dealt with “it depends” conversations?
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