“I know we have the roadmap but…”

If you have been a product manager for a while you will probably recognise some version of the following:

“I know we have the roadmap but we really need

{Important Thing for key customer(s)}

by {Timeline, usually really short, likely ASAP}

so that {Benefit to Business, e.g. upsell, renewal, happier customer, lower risk of churn etc}

Well meaning person within your organisation

No matter how carefully you understand user or customer needs and prioritise, these sorts of situations will likely come up. So, as a product manager how do you deal with them?

Every organisation and situation is different but here is an approach/framework I use:

  • Context
  • Cost of saying “No, not now”
  • Effort
  • Opportunity Cost

Diving deeper into each of these:

Context – Every situation is slightly different but I find it is worth considering:

  • Do you understand the underlying need of this request? What problem is it solving?
  • What customer/set of customers does this request relate to and who is it coming from?
    • Does it relate to one of your organisation’s most important customers/customer segments?
    • Could there be benefits for others if you were to do this work?
    • Is the person making the request likely to have validated/be open to you validating it directly with the customers?
  • Where are you and the product development on your current initiatives/work? E.g heads-down in the final week before a big launch or soon to kick off new streams of work. If it’s the latter, it might be easier to consider.

Cost of saying “No, not now”

  • If you say no, what might the impact be both internally (the requester, their boss, their team etc) and externally (the customer)?
  • If the ‘cost’ of saying no is quite low, you might not need to go any further, though you should always give some rationale for saying no, e.g. “Thanks for raising this with me, I’ll add it to our ideas board. To manage your expectations, this is not something we are going to immediately tackle because {other important things you are doing}”.

Effort

  • At a high-level, e.g. t-shirt size, what would it take to solve this problem for the customer/set of customers?
    • This is where more digging will be required. That could mean talking with an engineering leader/designer and the customers themselves.

Opportunity Cost

  • If you go solve the problem requested, what are you stopping doing or not picking up instead?
    • You and the people you work with should understand that there is a cost to doing something new, you either drop something you were already working on or delay starting something you planned. It doesn’t mean you shouldn’t pay that cost sometimes, but everyone should understand there is a ‘cost’ and what it is.
    • This is to align expectations and avoid situations where someone senior, not aware of this request and the context, comes along and asks: “When are you delivering {the thing you decided not to do/deprioritised to look into this new problem}?”.

I will go into a couple of examples below where I walk through my approach:

Example 1: Increased rate limit usage

  • Context
    • One of our biggest customers at the time wanted a higher API rate limit to send us more traffic. This traffic was directly tied to revenue, the more requests that were sent to us, the more revenue the company would receive. Other big customers could also likely benefit from higher rate limits.
    • Trust between the commercial team and the product development team was low at this point, because deadlines had been pushed back in the past.
    • As a product development team we had almost finished some replatforming work which would make the increased volume of requests possible to serve.
  • Cost of saying no
    • Quite high. There was a risk of not being able to ‘grow’ with the customer and disappointing the commercial team again.
  • Effort
    • Our commercial team had done their homework and organised for our tech lead and I to chat with the customer to make sure we heard first hand what they were after.
    • Our tech lead and I went away, spoke to some of the other engineers and worked out whether we could do this and when. It turned out we only had a little more replatforming and load testing to do then this was the sort of request we wanted to enable.
    • I came back to the commercial team and said we could make it happen by the end of the current quarter (we were mid-way through). They were happy with that.
  • Opportunity Cost
    • Doing this work would mean delaying a couple of initiatives that were slated to kick-off. I made our product and engineering leadership aware of the trade off and invited them to challenge it. They agreed with the decision and were grateful for the transparency.

Outcome: On the last day of the quarter (phew!) we shipped the updated rate limit and informed the commercial team and customer. Their usage increased and soon after they renewed their contract at a higher usage limit resulting in a large increase in revenue.

What went well here:

  • The ask, the higher rate limit, was in-line with replatforming work that was already underway. This was a tangible customer facing result that could be achieved after a lot of “under-the-hood” work.
  • The commercial team quickly facilitated talking directly with the customer’s technical team to understand and clarify the ask and context.
  • Once we understood this, the tech lead and I gathered a couple of senior engineers on the team to talk it over and come to a decision.
  • I communicated that to everyone involved.
  • Most importantly, we delivered the improvement when we said we would and ultimately, it resulted in usage, an increase in revenue and a way of enabling it for more customers in the future.

Example 2: Potential mobile app

  • Context
    • Our company was invited to a potentially very lucrative request for proposal (RFP) process with a large client
    • Different members of the product team, me included, were invited in to look at the requirements and where we fell short to see if we could address them
    • One of those areas was offering a mobile app. We didn’t have a mobile app so we needed to look into what it might take to meet that requirement.
  • Cost of saying no
    • As this opportunity was so large, we had no option but to evaluate what it might take to add a mobile app.
    • If this deal came off, we would have to act on it in a short time frame, it would be part of the contract.
  • Effort
    • This was the thing to dig into with our engineers. The requirements were quite detailed which helped and I used this with the team to go through what we thought it might take.
  • Opportunity Cost
    • If we won the client and needed to build the mobile app it would have meant switching folks off of existing work and delaying things we were due to start.

Outcome:

  • We didn’t win the deal so there was no need to follow-through immediately with the mobile app.

However, what could have been improved:

  • As a result of asking some of the team to look into this, I actually ended up distracting nearly the entire engineering team for a week, in the end, for nothing.
  • This was my fault, I wasn’t clear with our senior engineers how speculative this opportunity was and that it shouldn’t eat up a lot of time to evaluate or need to involve lots of the team –> a lesson learned on communication and time-boxing.

There you have it. One way of dealing with those inevitable asks that come to you and your teams. As you have seen, I haven’t always got it right.

I hope you found this post useful and I’m happy to hear about other approaches too!

A really rough guide to creating and validating a new product

Last month I was invited to speak at the Innovator’s Network event in Melbourne. The topic I covered was creating and validating a new product, using my experiences creating the Zendesk Connect product.

I shared the Connect story with the goal of giving attendees actionable things they could take back to their day-to-day roles. To help with that, I also prepared a handout that generalises some of the lessons I have learned creating new software products, you can find it below:

Contents:

Thought process and stages
Early stages
Get usage and feedback
Build on early wins
Aaron’s Lessons Learned
Tools
Resources

Thought process and stages

Early stages

  • What problem are you solving? What’s the benefit of solving it? Why are you best positioned to solve it? Why now?
  • Do we know that a lot of people have this problem? Who are they?
  • What’s the smallest experiment we can run to see if we’re onto something
  • What result will we need to see to know we should continue? The latter can be particularly difficult to stay unbiased when setting and evaluating
  • Start thinking about getting internal support if you need it – who are the change agents within your business unit/company that could endorse this
  • Run your initial experiment with some customers, talk to 5-8 you’ll begin to see patterns
    • It might be asking about how your target customers currently do something. Maybe how they do it right now is ‘good enough’, sometimes the status quo is your biggest competition, so they are not the right person to speak to example: “How do you talk to your customers?”
    • Dig into the why and specific examples
      • Don’t let customers talk in hypotheticals and try not to go into ‘pitch mode’ – “Would you use my product?” is a bad question to ask because often people will say yes to avoid hurting your feelings
  • Evaluate what you’ve learned & tell your stakeholders about the results, including your take on what’s next – tell the narrative and use data to support your story
  • If things look positive and if you have buy-in (or maybe even if you don’t :), iterate on what you have and widen the net – now might be the time to start building a small prototype that someone could use

Get usage and feedback

  • If you build a prototype, get as much actual usage and feedback as you can from potential customers – in their workflow, with their data, in their environment, in their day to day work
    • Concentrate on who actually uses it (not those who talk about using it), how they use it, why people try it and stop using it – Observe behaviour and get on a call with people – what works? what doesn’t? Is this something they would use frequently? If not, why not?
  • Hone in on your target user/buyer – a couple of different options might emerge – decide which will be your primary focus and why
    • Building for everyone solves for no-one. If you’re building a platform for others to build on top of be extra careful – ideally have a few launch partners to build on the platform as you continue to iterate
  • Establish the next set of milestones to show that you’re on the right track to having the right solution for your target customers
  • Bring together stakeholders, in-person if possible, every so often to talk about your progress

Build on early wins

  • Keep iterating
  • Start charging – the first $ is the hardest (in the Connect example this is where we got up to, testing willingness to pay and integrating billing into the product)
  • Onwards to product-market fit – the point at which you have repeatable type of customer coming along and paying for your product/service
  • You might be onto something! Growth + profit + trade-offs

Aaron’s Lessons Learned

  • Speed of learning is the name of the game – building the right thing (product) vs building the thing right (engineering)
    • Sometimes this isn’t always clear cut because you need to build something to learn and you might want to have some engineering options in the future – Keep an eye on this and question going too far down a particular path without observed usage or patterns of behaviour
  • Make sure everyone involved knows that in creating and validating a new thing you’ll have to make trade-offs – because you want to learn fast and move fast
    • Example: the user interface for this is only going to be in English until we work out we’re on to something
    • Example: we’re not initially going to offer this to customers who have more than X million users because we haven’t optimised for speed yet
  • You’re not just building a product, you’re building a sustainable business – Article: To Succeed in the Long Term, Focus on the Middle Term
    • ie: Don’t forget the $$ even if you’re not sure of the exact details right away
  • Share the journey – What’s working? What’s not? What’s next and why?
    • Share with your team
    • Share with your sponsors
    • Share with anyone that’s interested – ‘build a tribe’, ‘running for president’
  • Set milestones along the way, track how you’re doing against those milestones and understand why you hit them (or not)
    • These could just be learning milestones but make sure you can measure against them
  • “Dogfooding” – Use the product yourselves internally and invite other stakeholders to try it, you’ll quickly learn about the real world things you hadn’t thought about
    • If people ask “can we use it?” Sure – the more the merrier
  • Don’t apply the same constraints to fledgling R&D efforts as established products and businesses
    • Beta labels are your friend
    • People will tolerate some downtime if you have a useful solution to a problem they have
      • This can depend on the maturity level of the problem domain you’re working in. Example: early customers of your new CRM system may tolerate things going down twice in a couple of weeks but customers of your new medical software might not be so forgiving
  • Find the change makers, internally and externally. How? Look for ‘agitators’, if you can’t find them try and find some proxies or things those folks might be interested in to lead you to the right people
    • Example: I looked at customers that used the Zendesk Web Widget, when finding folks to talk to about Connect because I knew they already understood embedding something on a web page and were more likely to be receptive
  • Letting go is hard but sometimes it has to be done – keep the objectives in mind
    • Marty Cagan’s two inconvenient truths about product:
      • “1) at least half of our ideas are just not going to work”
      • “2) even with the ideas that do prove to be valuable, usable and feasible, it typically takes several iterations to get the implementation of this idea to the point where it actually delivers the expected business value.”

Tools

  • Whiteboard/notebook – always be sketching
  • Invision – for sharing clickable designs/prototypes
  • Google Drive – collaborate fast
  • Trello – light-weight kanban board – tracking customer and engineering progress
  • Inspectlet – record user sessions, watch them back, cringe, share with your team, make them cringe, fix stuff
    • At low volume – qualitative feedback can be better than the numbers
    • Another product in this space is FullStory
  • Heap – quantitative analytics
  • Our own product, Zendesk Connect – in-product messages to onboard and educate customers

Recommended by others

Resources

  • Book: The Mom Test by Rob Fitzpatrick
    • Short book, great read on how to try and validate your ideas without going into ‘pitch mode’
  • Never Ask What They Want – 3 Better Questions to Ask in User Interviews
  • Validating Assumptions with 12 UX Research Methods
  • Book: Inspired: How to Create Products That Customers Love by Marty Cagan
    • 101 for anyone in product management, I re-read parts of this book a lot
  • Book: The Innovator’s Dilemma by Clayton Christensen
    • Seminal text: why it’s hard for bigger companies to innovate and how to overcome the challenges
  • Website: http://www.useronboard.com/ and eBook The Elements of User Onboarding by Samuel Hulick
    • You know your idea inside and out but you need your customers to ‘get it’ and then actually be able to use your product. There’s careful thought needed in ensuring that anyone using your product becomes successful with it on first use and increasingly so over time

Books others have recommended to me:

  • Being Wrong: Adventures in the Margin of Error by Kathryn Schulz
  • Impact Mapping: Making a big impact with software products by Gojko Adzic
  • Lean Analytics: Use Data to Build a Better Startup Faster by Alistair Croll
  • Lean UX: Applying Lean Principles to Improve User Experience by Jeff Gothelf and Josh Seiden
  • User Story Mapping: Discover the Whole Story, Build the Right Product by Jeff Patton