Dear Reaper, When should I pull the plug on a new product?
Was I left anything in its will?
It’s usually about one or more of strategic intent, core values, or opportunity costs.
Still Aligned with your Strategic Intentions? Does the product exist to serve a noble cause? To exploit a market opportunity? To fill out a product family? To test a market hypothesis? To defend a market from a rival? [It helps to know why you created the product and your hopes for its future.]
OK, you know intent. Is it failing to to deliver? Is this fixable with reasonable time/effort/risk? If not, kill it.
Still Aligned with your Core Values? Many orgs hold values, and a product finds itself on the wrong side of them. I helped an OpenOakland team choose to abort a new product (automation of Oakland’s summer jobs program workflow). We found we would harm young job seekers if we turned on the app. Your new product may not live up to your basic minimum criteria for quality, sustainability, brand integrity, morality, legality, or other non-financial concerns.
Can you bring it over from the dark side? No? Kill it.
Opportunity Costs? Sometimes product retirement is not about this given product. You’d be better off doing something else.
- Release resources. Product portfolio managers cull products to free up development resources (design or engineering staff), distribution resources (shelf space, warehousing), or operations resources (hosting, support) from still healthy products for more strategically attractive products. Or because you’re out of runway.
- Optimize management. I’ve heard of slashing product portfolios to give the remaining products the attention each deserved. At least for a while.
- Look pretty. Sometimes you reshape the product portfolio to make your organization more attractive to investors or acquirers. “Look at our razor sharp focus!” Great products die so deals get made.
That’s the logical, rational, Vulcan model.
Then there’s when your team loses faith in your product. Where the customers like it but don’t love it. Where you feel more flop sweat and desperation than joy and exuberance.
You don’t need a business case. Your heart, your gut, your soul are banging on your brain. Get out!
Thanks, Dinesh, for the question.
