Product Strategy

"Our strategy is to build great products, delight customers, and grow revenue."

That's not a strategy. That's a description of being a business.

Strategy requires choices. What you're NOT going to do is as important as what you are.

What Strategy Actually Is

A strategy answers: given limited resources and unlimited possibilities, where will we focus?

It has three parts:

1. Diagnosis: What's the situation? What's the core challenge?

2. Guiding policy: What's our approach to addressing it?

3. Coherent actions: What specific things will we do (and not do)?

If your "strategy" doesn't have all three, it's not a strategy.

The Problem With Most Strategies

They're not strategies. They're:

Goal lists: "We want to grow 50%, improve NPS, and expand internationally." Goals aren't strategy. Strategy is how you'll achieve goals.

Ambitions: "We'll be the market leader in AI-powered widgets." Aspiration without approach.

Feature roadmaps: "Q1: Build X. Q2: Build Y." A plan isn't a strategy. The strategy explains why those features, in that order.

Buzzword soup: "We'll leverage synergies to drive innovation across verticals." Meaningless.

A Real Strategy Example

Bad: "Our strategy is to grow revenue."

Better:

  • Diagnosis: Our market is commoditizing. Competitors undercut on price. Customers see us as expensive and not differentiated.
  • Guiding policy: We'll focus on the enterprise segment where relationships matter more than price, and depth of integration creates switching costs.
  • Actions:
    • Stop pursuing SMB deals (even easy ones)
    • Build deep integrations with enterprise tools (Salesforce, SAP)
    • Invest in customer success for top accounts
    • DON'T invest in self-serve or low-touch sales

The strategy is as much about what we won't do as what we will.

Why Saying No Is Hard

Everything seems valuable. SMB deals are real revenue. That feature request is from a real customer.

Opportunity cost is invisible. The deal you close is visible. The enterprise deal you didn't pursue because you were chasing SMB is invisible.

People resist focus. Teams want to work on varied things. Stakeholders want their priorities addressed.

Fear of being wrong. What if we say no to the wrong thing?

But strategy without no is just a wish list. And wish lists don't create competitive advantage.

How to Find Your Strategy

1. Be Honest About Trade-offs

List everything you could do. Now acknowledge: you can't do all of it. What gets cut?

"We could build for enterprise or SMB. Which?" "We could differentiate on features or price. Which?" "We could expand geographically or go deeper in current markets. Which?"

Pick. Accept the consequences.

2. Find Your Unique Advantage

What can you do that competitors can't easily copy?

  • Proprietary technology?
  • Unique data?
  • Distribution advantage?
  • Team expertise?
  • Brand positioning?

Strategy should leverage your unique strengths, not compete where you're weak.

3. Say No Explicitly

Write down what you're NOT doing. Make it visible.

"We are NOT pursuing SMB." "We are NOT building features for market X." "We are NOT competing on price."

When these come up (and they will), you can point to the strategy.

4. Test for Coherence

Do your actions align with your guiding policy?

If your strategy is "focus on enterprise" but you're building features SMB requested, you're not following your strategy.

Coherence is what separates strategy from platitudes.

Living the Strategy

A strategy on a slide deck is worthless. Strategy has to drive decisions.

Resource allocation: Money and headcount should align with strategic priorities.

Roadmap prioritization: Features should ladder to strategy. If they don't, why are we building them? (For tactical prioritization, see ICE and RICE Frameworks.)

Hiring: Who you hire reflects what you're building toward.

What you say no to: When opportunities arise that don't fit the strategy, you decline. Even attractive ones. (More on this in Saying No Is Your Job.)

When to Revisit Strategy

Strategy isn't permanent. Revisit when:

  • The market fundamentally changes
  • Your diagnosis proves wrong
  • You've achieved strategic goals and need new ones
  • After major failures that suggest the approach isn't working

But don't revisit constantly. Strategy needs time to work. Constant pivoting is absence of strategy.

Strategy vs Execution

Strategy is choosing what to do. Execution is doing it well.

Most companies don't fail because of bad strategy. They fail because of bad execution. Or they fail because they have no strategy at all — just goals and good intentions.

Great execution of bad strategy is costly. Bad execution of great strategy is waste. Great execution of great strategy is how you win.

Get both right.

The next time someone asks "what's our strategy?" and the answer is a list of things you want, push back. Strategy is what you're NOT doing. It's the trade-offs you've accepted. It's the focus that creates power.

No focus, no strategy. No strategy, no advantage.