About four years ago I read and reviewed Inspired: How To Create Products Customers Love by Marty Cagan, who I regard almost as the ‘founder’ of modern tech product management — along with Steve Jobs of course :) Cagan has now released a second edition of “Inspired” in which he captures two aspects he’s uncovered since writing the first edition.
The first aspect is a critical need to focus on the specific job of the product manager, aiming to clarify which elements constitute the role of a product manager in a tech company. The second aspect is the importance of creating the right product culture for success, and understanding the range of product discovery and delivery techniques available to solve customer and business problems.
Whilst the book contains a wealth of valuable content about product management and how to create great products; in this review I’ll primarily focus on Cagan’s recommendations with respect to product discovery and delivery. Before I do that, it’s important to first look at Cagan’s take on the “root causes of failed product efforts” (Fig. 1).
Cagan sees a very sequential, “Waterfall” type approach as the underlying reason why many products fail. This approaches comes down to companies using a ‘feature heavy’ and preplanned roadmaps, as well as and using regular planning sessions to negotiate and prioritise the roadmap. Cagan shares some home truths to explain why this approach is now obsolete (Fig. 2).
Fig. 2–10 problems that companies using a Waterfall type approach suffer — Adapted from: Marty Cagan, Inspired: How To Create Tech Products Customers Love, pp. 17–21
- Stakeholder-driven products: It’s a top down approach which leads to stakeholder-driven products and teams that don’t feel empowered
- Business cases are mostly fictitious: I couldn’t agree more with Cagan when he argues that the two main business case inputs — how much money we’ll make and how much it will cost — are complete unknowns. We can’t know how much money we’ll make because that depends entirely on how good the solution turns out to be. In contrast, a lot of products end up making no money whatsoever! One of the most critical lessons in product, Cagan explains, is “knowing what we can’t know.”
- Product roadmaps — There are two problems with traditional, feature led product roadmaps. Firstly, the reality is that half of our product ideas are simply not going to work. I always cringe when I see product roadmaps that contain detailed features prioritised prioritised for an entire year … In my experience, until you start discovering, implementing and launching product ideas, you’re not going to know whether your product is actually going to work. Secondly, even when ideas do prove to have potential they’re likely to need several iterations to reach the point where they deliver tangible business value. Cagan introduces the term “time to money” to refer this evolutionary process.
- It’s not about gathering requirements for engineers to implement — I recently came across an organisation where they employed an entire team of project managers and business analysts whose main job it was to gather stakeholder requirements, and document them for designers and engineers to implement. Cagan rightly makes the point that “this is 180 degrees away from the reality of modern tech product management.”
- UX designers are getting involved way too late — Don’t involve designers only once the requirements have been gathered, it’s simply too late as the designer won’t be able to add much value add this stage.
- Engineers are getting involved way too late — If you’re just using your engineers to code, you’re only getting about half their value. I love the ‘little secret’ that Cagan shares with us: “engineers are typically the best single source of innovation.” He’s totally right!
- Agile for delivery only — Cagan talks about “Agile for delivery”, whereby product development teams work in an Agile fashion, but the rest of the organisation isn’t.
- Project-centric processes — The company usually funds projects, pushes projects through the organisation, and finally launches projects. Unfortunately, projects are output and product is all about outcome. I’d add that most projects are one-off pieces of works whereas products have a continuous lifecycle, until the product is being discontinued.
- Customer validation happens way too late — Cagan points out the biggest shortcoming of the old waterfall process, which is that all the risk is concentrated right at the end and that customer validation happens way too late. Instead, customer validation or discovery should be continuous and needs to happen early and often.
Cagan offers three overarching principles which help overcome the aforementioned root causes of failed product efforts:
- Risks are tackled upfront, instead of at the end
- Products are defined and designed collaboratively, rather than sequentially
- Finally, it’s all about solving problems, not implementing features
“Continuous Discovery and Delivery” is a great way to translate these three principles into a process and mindset for people to adhere too (Fig. 3). You can see how Cagan has taken the eight steps involved in the traditional waterfall approach (Fig. 1) and condensed them into to three, continuous stages: Objectives — Discovery — Delivery (Fig. 3).
Ultimately, this process enables you to to get answers to four critical questions:
- Will the user buy this (or choose to use this)?
- Can the user figure out how to use this?
- Can our engineer build this?
- Can our stakeholders support this?
Apart from these four critical questions, I like the emphasis Cagan puts on business context over a traditional product roadmap. In the book, Cagan covers two main components that provide this business context:
The “risk” aspect feels like a crucial one to me, and thinking about ways to identify and mitigate risks early and often. For example, I’ve found the pre-mortem technique to be a great way to unearth key risks right at the outset. Cagan describes some common risks to consider:
- Financial risk — Can we afford this solution?
- Business development risk — Does this solution work for our partners?
- Marketing risk — Is this solution consistent with our brand?
- Sales risk — Is this solution something our sales staff is equipped to sell?
- Legal risk — Is this something we can do from a legal or compliance perspective?
- Ethical risk — Is this solution something we should do?
Cagan then goes on to describe three of his favourite discovery framing techniques:
1. Opportunity Assessment
The idea is to answer four key questions about the discovery work you’re about to undertake:
- Objective — What business objective is this work intended to address?
- Key results — How will you know if you’ve succeeded?
- Customer problem — What problem will this solve for our customers?
- Target market — What type of customer are we focused on?
2. Customer Letter
Cagan refers to Amazon and their working backward process, where you start the product effort with a fictitious press release.
3. Startup Canvas
The “Startup Canvas” is particularly useful when you work at an early stage startup and are staring from scratch, both with the business and your product or service. There are lots of these canvases around for you to have a closer look at; I’d suggest having a look at the Business Model Canvas (by Alex Osterwalder) and the Lean Canvas (by Ash Maurya; Fig. 4).
Cagan explains how you can use a canvas for any product change, no matter the size, but you would likely quickly find a risk of duplication once you’ve got an existing business and product. I agree that the law of diminishing returns kicks in once you’ve already established your business and products, since you’ll have already figured out things like your cost structure or distribution strategy.
Finally, Cagan explains about “testing value” as a key thing to consider when planning your customer discovery. The main thing here, Cagan stresses, is to learn whether customers perceive your product to be substantially better than the competition. So many companies and product teams think all they need to do is match the features of the competitive alternatives. This idea of “feature parity” being enough to woo customers has proven to be a false one. The reality is that for customers to switch from an existing product, they need to perceive the new product as a much better alternative.
For example, sometimes it’s not clear whether customer want what it is that we’re going to build and it can be very risky to simply think “we’ll build it and customers will come.” In the book, Cagan talks about how you can quickly and cheaply test whether there’s demand for instance through launching just a landing page. On the landing page, we describe the new offering exactly as we would if we were really launching the service. The difference is that if the user clicks the call to action, rather than getting the expected outcome, the users sees a message that explains that you’re thinking of launching the new service and that you’d love to get initial input from the user. It all falls under the mantra “Do Things that Don’t Scale”, first introduced by Y Combinator Founder Paul Graham. A good example is this one from Buffer:
Main learning point: Marty Cagan has written a great followup to his first edition of “Inspired”. In this edition, he offers valuable tips and examples in relation to important themes as product discovery and delivery. Whether you’re new to product management or have got some good product management experience under your belt, “Inspired: How To Create Tech Products Customers Love” is a great and valuable read.