2. Speaker Background
Personal data
Sales and Marketing for 12+ years
VC for 6+ years
CEO for 1+ month
Siperian Inc.
Customer data management solutions
Unique composite object technology
“Aware Applications” offering a single point
of interaction for customer-centric activities
3. Agenda
What is “integrated” product
management
What do Board of Directors (BOD)
care about?
Why would product management
attract BOD attention?
How does product management
speak to the BOD
4. Integrated Product
Management
Executive management sets the
business plan
Board of Directors approves business
plan and oversees results
Product management is key to
execution of the business plan
Doyou understand the product
assumptions driving the plan?
6. Business Plan “Model”
Execution Technology Product
Product Company Business
(Implement)
7. Business Plan “Model”
Opportunity Market Problem Buyer Transaction
(Discover)
Strategy Value Operating Financial
Vision
(Design) Proposition Model Model
Execution Technology Product
Product Company Business
(Implement)
8. What do BODs care about?
Is the company operating well today?
Revenue
Cost Structure
Profitability
Will it continue to do well in the
future?
Market
opportunities
Competitive Advantage
9. Business Plan Concerns
Opportunity Market Problem Buyer Transaction
(Discover)
Strategy Value Operating Financial
Vision
(Design) Proposition Model Model
Execution Technology Product
Product Company Business
(Implement)
Problems: Missed revenue/profits indicate execution
issues, if no strategic cause
10. “Operational” Problems
Revenue model cannot support the
necessary cost structure
Customer acquisition costs too high
Channel costs too high
Operating expenses or COGS
increase substantially (e.g. cost of
labor, materials, etc.)
Poor expense controls (shameful!)
11. Business Plan Concerns
Opportunity Market Problem Buyer Transaction
(Discover)
Strategy Value Operating Financial
Vision
(Design) Proposition Model Model
Execution Technology Product
Product Company Business
(Implement)
Problems: Product misalignment or market saturation
create strategic issues
12. “Value Proposition” Problems
Problem isn’t big enough to matter
Market was never big enough
Market now saturated
Product inadequate for problem
Poor execution
Poor vision
Competitive price pressure
Value undermined
13. Business Plan Concerns
Opportunity Market Problem Buyer Transaction
(Discover)
Strategy Value Operating Financial
Vision
(Design) Proposition Model Model
Execution Technology Product
Product Company Business
(Implement)
Problems: Market disruption creates strategic issue
14. “Vision” Problems
New technologies
Better, faster, cheaper
Direct competitor or substitute
M&A events
Channel strength
Product line completeness
Critical mass effects
15. Why would Product Management
attract BOD attention?
Missed revenues or profitability? Inspect:
Channel
• Direct/Indirect sales metrics
• Contribution across channels
Product
• Evaluation of market opportunity
• Feature/functionality/fit analysis
Underlying cost structures
• Structural changes to cost
• Poor management
16. Why would Product Management
attract BOD attention?
Value proposition under fire
Customer adoption
Competitive pressure
• Out-selling
• Better product
• Price pressure
• True cost advantage
• Buying share
• Lousy competitor
17. Why would Product Management
attract BOD attention?
Overcome by disruptive technology
Industry structure change
Too early
18. How should Product Management
speak to the BOD?
Financial expressions of issues
Quantify it when possible
Data-driven, clear about sources
Explain what and how you know
High level
Relevant to the big issues
Place/Process/Progress
Where did you start, what is your goal
How will you get there
Where are you now
19. Summary
From the BOD perspective, everything
nets to financial performance
In tough times, understanding the
expected business model behavior is
essential for financial success
If your product line is not conforming
to the model, understand why and
what can be done