Modern software companies follow a variety of common conventions to scale quickly and efficiently. For example, most software companies have a defined and documented approach for engineers when it comes to writing, reviewing, editing, and deploying new code. It’s important to settle on some standards and procedures for software development because it means a company can write code quicker, reduce mistakes that are inherent in writing code, and provide a better working environment for software developers. The end result is more and better products delivered to the customer, which in turn is good for the business.
However, standardization of a product development process is uncommon within startups. Most companies lack a clear procedure for taking an idea and turning it into a high quality, shippable product. What typically happens is product teams form and are left on their own to figure out how they want to drive new product development. For example, who is responsible for conducting customer research, when, and how should it be conducted? How does a team come up with an initial prototype for a new product? How do you iterate on it over time? In what ways can you maintain clear internal communication with key stakeholders as the product is being built? When and how do you come up with the go-to-market plan for the product? A well-designed product development process will have an answer for each of these questions and will help you ship more and better products to your customers. Without such standards, each product team will build products through different methods, leading to inconsistent product delivery timelines and inconsistent product quality. The last thing a startup needs is more unpredictability.
I created the following content to prevent unnecessary churn when trying to create new innovative products. It describes a product development process I’ve refined over the years and use on a day-to-day basis when building compelling products customers love. The process is described in a way that will make it clear and easy to implement within your company. It is specifically designed for building large customer-facing features where “large” is defined as a product that requires 1 month or more of engineering time to complete.
First, it’s useful to point out the ways in which product development is typically broken or inefficient at young technology companies. Here are the common issues that I tend to see at startups:
The below process has been designed to explicitly solve or greatly mitigate each of the above issues when developing new products.
In addition to solving common product development pitfalls, this method of developing products is rooted in a set of guiding principles which further prevents the above issues and gives product teams a common language to use when describing how they build product:
First, I’ll describe the process. Following the description is a visual concept. The product development process follows these steps:
This is a conceptual diagram for the product development process from start to finish. It’s very useful for project leads (especially the product manager) to have this process memorized, so that they always know what should be coming next in the development process. If run well, it should only take 2-3 weeks to finish customer research, the design sprint, and have a kickoff meeting session. Keep in mind that this is for new, innovative products/features, so getting to the point of alignment on a medium fidelity prototype is impressive in such a short timeframe. From there, development starts to move quickly until the product is ready to launch.
Here’s the full list of templates that you can used in conjunction with the process laid out above. This will allow you to incorporate some or all aspects of this process into your own team or company.
Thanks to an abundance of data storage, analysis, and visualization tools, startups today have the ability to make rapid improvements to nearly every aspect of their business. However, this overabundance has led to a significant bias in that startups now lean on structured data too much. So much so, in fact, that some of the fundamentals of building innovative products, such as rigorous customer development, have fallen by the wayside. One of the byproducts of this data obsession is that many startups try to optimize their way towards success through relentless A/B testing. This typically pulls them further away from essential insights and truths that they might discover, if they spent less time analyzing structured data from a database and more time collating the unstructured data that can be discovered when talking to customers.
The good news is that data over-reliance can be easily corrected with a shift in mindset and some of the tools and guides I provided in this four part series. In terms of next steps, I hope you take a few key steps from here. First, move forward with designing a company-wide org chart that creates an explicit balance between optimization efforts and innovation efforts. It’s also critical to make wise decisions with the types of experiments to run and avoid running tests that will never meaningfully improve your business. And finally, that you adopt some version of the repeatable product development process I shared, so that you can innovate much more effectively for the betterment of your customers and your business.
Product Development for Innovation
Learn how to develop products for innovation instead of relying solely on growth hacking.