matthunter.com© 2012 Matt Hunter
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matthunter.com
Product
management
strategy
15TH APRIL 20...
matthunter.com© 2012 Matt Hunter
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matthunter.com
Maturing businesses often experience decl...
matthunter.com© 2012 Matt Hunter
Click to edit Master title style
matthunter.com
Important Notice
All third party informat...
matthunter.com© 2012 Matt Hunter matthunter.com
Many technologies demonstrate an “S-curve”
relationship between investment...
matthunter.com© 2012 Matt Hunter matthunter.com
This basic pattern is viewable across many industries
matthunter.com© 2012 Matt Hunter matthunter.com
Eventually, a technology is pushed to its absolute limit
and further inves...
matthunter.com© 2012 Matt Hunter matthunter.com
Eventually, every technology has its limits
Sailing ships
Ultimately const...
matthunter.com© 2012 Matt Hunter
Click to edit Master title style
matthunter.com
Technology s-curve
Associated with this t...
matthunter.com© 2012 Matt Hunter matthunter.com
As one technology plateaus, it may be possible to move
to a new technology...
matthunter.com© 2012 Matt Hunter matthunter.com
IBM and DEC lost market share to Microsoft and
Intel
Modis, T. Predictions...
matthunter.com© 2012 Matt Hunter matthunter.com
Failure to plan for and manage shifts in technology is
the main reason suc...
matthunter.com© 2012 Matt Hunter matthunter.com
Over time, a successful technology strategy should
blend together multiple...
matthunter.com© 2012 Matt Hunter matthunter.com
And sustain a steady growth in profits
Time (years)
Tech
Progress
OR
Profi...
matthunter.com© 2012 Matt Hunter matthunter.com
Horizon 1
Horizon 2
Horizon 3
This is the basis of the “three horizon” mod...
matthunter.com© 2012 Matt Hunter
Click to edit Master title style
matthunter.com
The three horizon model
Keeping the three...
matthunter.com© 2012 Matt Hunter
Click to edit Master title style
matthunter.com
The Three Horizons model is a simple fram...
matthunter.com© 2012 Matt Hunter
Click to edit Master title style
matthunter.com
The three horizon model
Keeping the three...
matthunter.com© 2012 Matt Hunter
Click to edit Master title style
matthunter.com
Horizon 1
Tweaks, derivatives & product s...
matthunter.com© 2012 Matt Hunter
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matthunter.com
Illustration of number of projects typica...
matthunter.com© 2012 Matt Hunter
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matthunter.com
Horizon 2
New product platforms
(6 months...
matthunter.com© 2012 Matt Hunter
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matthunter.com
Illustration of number of projects typica...
matthunter.com© 2012 Matt Hunter
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matthunter.com
Horizon 3
Break-through products or servi...
matthunter.com© 2012 Matt Hunter
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matthunter.com
It is rarely obvious what an H3 product
l...
matthunter.com© 2012 Matt Hunter
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matthunter.com
Illustration of number of projects ideall...
matthunter.com© 2012 Matt Hunter
Click to edit Master title style
matthunter.com
Illustration of number of projects ideall...
matthunter.com© 2012 Matt Hunter matthunter.com
Critically, management of projects in each horizon
differs
Horizon 1
Tweak...
matthunter.com© 2012 Matt Hunter matthunter.com
How do you select which horizon a project fits into?
• Re-balancing the pr...
matthunter.com© 2012 Matt Hunter
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matthunter.com
Change in customer focus
First question: ...
matthunter.com© 2012 Matt Hunter
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matthunter.com
Level of innovation required
Second quest...
matthunter.com© 2012 Matt Hunter matthunter.com
We can define a project’s horizon based on the extent to
which it demands ...
matthunter.com© 2012 Matt Hunter matthunter.com
Horizon 3:
Breakthrough
Projects
Horizon 2: New product
platforms
Horizon ...
matthunter.com© 2012 Matt Hunter matthunter.com
Plotting existing and proposed projects against these
dimensions we can de...
matthunter.com© 2012 Matt Hunter matthunter.com
Typically, businesses will find the majority of their
projects fall in H1,...
matthunter.com© 2012 Matt Hunter matthunter.com
Balancing the project portfolio over the horizons then
requires a mix of c...
matthunter.com© 2012 Matt Hunter matthunter.com
How many projects in each horizon? No hard rules.
Google aims for 70/20/10...
matthunter.com© 2012 Matt Hunter matthunter.com
So let’s start with a 70/20/10 split of projects across
the horizons
matthunter.com© 2012 Matt Hunter
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Product Management Strategy Summary
• 1) ...
matthunter.com© 2012 Matt Hunter
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Matt Hunter is a senior product manager w...
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Product Strategy

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This presentation provides a framework for product managers and C-level executives to discuss and prioritise their product investments. Maintaining a practical focus, it condenses highlights from McKinsey's three horizons model and more recent successors developed by academics at Wharton and MIT.

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  • Hi Matt.. I am helping a university to define its role for the business sectors with their R&D capability. I found that your sharing here is very useful as frame work of thinking. I was part of the initiatives of this 3 horizons innovation portfolio in the previous organization I worked for. Hence I could relate to your thought. Thank You for sharing. I will contact you via your website for further discussion.
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  • @RisaGoodman Thanks for your comments.

    “Is the '3 horizons' concept yours? It's interesting AND useful, two things that rarely go together. :)”

    Glad you think so too. The 3 horizons concept was originally featured in a book called the Alchemy of Growth written by some McKinsey alums. That work has since been built on by many people. Wheelwright and Clarke, professors at Wharton, were the first that I know of to combine the three horizons model with the product matrix showing innovation vs. customer similarity. I should add the “Alchemy” authors to the credits and re-post this presentation (this presentation was originally written for internal discussions only).

    “I imagine by the time you get to H2, a lot of your H1 products/services are going to need updating because existing customers are using them. You can't just cut them off- so what do you do?”

    If you look at the horizons diagrams, they show new products building on top of the previous, existing products, rather than totally replacing them. The suggestion is that the H1 products continue to develop, albeit with less resource investment, whilst the H2 products are coming online. Ideally, as growth plateaus on H1 you will find yourself with the H2 products hitting their stride. The H1 products will require some form of ongoing investment for maintenance, but as they are mature and/or reaching the end of their growth phase, the yield from throwing more resource at them will be lower. The trick is to start investment in the H2 stuff early, whilst H1 is still looking good and H2 is looking expensive, so that as H1 runs dry, you have something else to work with.


    “What's your strategy for budgeting justifications, dedicating PM's to non-revenue-producing products, …?”

    It’s better to assign different PMs to products in the early horizons and the late horizons, if you can afford it. Typically, the same sorts of PM personality work quite well on H1 and H2 products. H3 products are getting into more of a “start-up” space. The early horizons can be managed using detailed KPIs and the people who do well there tend to be detail oriented. The later horizons are more abstract, can require a little more vision and people able to demonstrate more leadership skills (getting people to believe in new, unproven ideas is a big deal) rather than management skills. You manage PMs in H3 by looking more at their progress against milestones, rather than short term KPIs.


    “And how to ensure you aren't going to spend all of the revenue you made in H1 before you get something new to market?”

    The budgeting questions are a whole extra ball game. Clearly, you have to be aware of the resource limits you are up against; and getting your H2, H3 products to market sooner rather than later is the objective. Eric Ries owns the intellectual space on this and I’m sure you are familiar with the Lean Start Up methodology. The three horizons frameworks tends to push you to a slightly longer-term, more Waterfall mindset than the Lean Start Up approach usually suggests, but all the principles of Lean can really still be applied. These are probably the best general guidelines on minimizing development cost and decreasing time to revenue.
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  • Also- I'm going to put one constraint on your answer: you may not use Google (gain) or Apple as an example. If we use them for examples for everything, most C-suite people laugh.
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  • Is the '3 horizons' concept yours? It's interesting AND useful, two things that rarely go together. :) The design of the presentation works against the content though, and one question: I imagine by the time you get to H2, a lot of your H1 products/services are going to need updating because existing customers are using them. You can't just cut them off- so what do you do? What's your strategy for budgeting justifications, dedicating PM's to non-revenue-producing products, and how to ensure you aren't going to spend all of the revenue you made in H1 before you get something new to market?
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Product Strategy

  1. 1. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Product management strategy 15TH APRIL 2013
  2. 2. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Maturing businesses often experience declining growth. A core reason for this is their failure to invest in developing a product pipeline. Focused on the short term needs of customers, product managers and the C-level invest heavily in the development of tweaks and refinements to existing products, but fail to pursue longer term developments that have the potential to create entirely new products or competencies. Originally developed by McKinsey in the 1980s, the Three Horizons framework provides practical conceptual tools which help managers avoid these pitfalls. This presentation condenses and merges highlights from the three horizons model and more recent successors. It provides a framework for product managers and C-level executives to discuss and prioritise their product investments.
  3. 3. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Important Notice All third party information featured in the presentation slides remains the intellectual property of their respective originators. All use of information is done under the fair use copyright principal, and I do not assert any claim of copyright for any quotation, statistic, fact, figure, data or any other content that has been sourced from the public domain. Whilst efforts are made to ensure accuracy, no warranties can be given. I do assert a claim of copyright for my domains, matthunter.com, my site design, slide design, database design, look and feel, and my logo (“the cube”). The core material in this work is shared under a creative commons license [attribution 3.0 unported (CC by 3.0)]. Readers are free to share (copy, redistribute, transmit) and remix (adapt the work), including for commercial use; but must properly attribute the original work to me. Such attribution should not suggest that I make any endorsement of the user or their derived use of my material. Further viewing of this presentation indicates your understanding of and consent to these conditions. First edition: 15th April 2013 Second edition: 20th July 2013 matthunter.comDIGITAL ◊ PRODUCT DEVELOPMENT ◊ STRATEGY
  4. 4. matthunter.com© 2012 Matt Hunter matthunter.com Many technologies demonstrate an “S-curve” relationship between investment and progress Cumulative R&D Effort Progress Early investments make limited progress A breakthrough point is reached and progress accelerates dramatically Eventually, the technology starts to plateau and new investments have a limited effect
  5. 5. matthunter.com© 2012 Matt Hunter matthunter.com This basic pattern is viewable across many industries
  6. 6. matthunter.com© 2012 Matt Hunter matthunter.com Eventually, a technology is pushed to its absolute limit and further investment yields no further gains Cumulative R&D Effort Progress Limit of technology Initially increasing then declining R&D productivity within a given physical architecture Performance is ultimately constrained by physical limits
  7. 7. matthunter.com© 2012 Matt Hunter matthunter.com Eventually, every technology has its limits Sailing ships Ultimately constrained by the power of the wind Copper wire Ultimately constrained by transmission capability Semi-conductors Ultimately constrained by the speed of the electron
  8. 8. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Technology s-curve Associated with this technology S-curve, we can see a profit curve for investing firms Time (years) Technological Progress Profit Cumulative Effort 0 Loss Technology profit curve Early investments appear loss making After break- through, profits rocket As technology plateaus, further investment is value destroying For firms, it makes sense to stop investing as the technology becomes more mature and yields fall below the cost of R&D investment
  9. 9. matthunter.com© 2012 Matt Hunter matthunter.com As one technology plateaus, it may be possible to move to a new technology and drive further progress Time (years) “Old” technology curve “New” technology curve At this point, moving to the “new” technology looks like an expensive step backwards Progress But after working through early problems (hopefully!), a break through occurs and progress starts to surge ahead once again Whilst the new technology is in early stages of development, it offers a poor alternative to the established, old technology Performance gap Businesses rarely invest through the dip
  10. 10. matthunter.com© 2012 Matt Hunter matthunter.com IBM and DEC lost market share to Microsoft and Intel Modis, T. Predictions - 10 Years Later. (Growth Dynamics, Geneva, Switzerland, 2002), 335. ISBN 2-9700216-1-7.
  11. 11. matthunter.com© 2012 Matt Hunter matthunter.com Failure to plan for and manage shifts in technology is the main reason successful incumbents lose market share Mainframe Computing 1960s Mini Computing 1970s Personal Computing 1980s Desktop Internet 1990s Mobile/Social Computing 2000s New winners IBM NCR Control Data Sperry Honeywell Burroughs New winners DEC Data General HP Prime Computer- Vision Wangs Labs New winners Microsoft Cisco Intel Apple Oracle EMC Dell Compaq New winners Google AOL eBay Yahoo! Yahoo!Japan Amazon Tencent Alibaba Baidu Rakuten New winners Apple Facebook Samsung … Note: Winners from 1950s to 1980s based on Fortune 500 rankings, winners in 1990s based on peak market capitalisation. Source: Adapted from Morgan Stanley’s Mobile Internet Report 2009 Setup, with additional 2000s section.
  12. 12. matthunter.com© 2012 Matt Hunter matthunter.com Over time, a successful technology strategy should blend together multiple S-curves… Time (years) Tech Progress S-curve 1 S-curve 2 S-curve 3
  13. 13. matthunter.com© 2012 Matt Hunter matthunter.com And sustain a steady growth in profits Time (years) Tech Progress OR Profits S-curves Profits
  14. 14. matthunter.com© 2012 Matt Hunter matthunter.com Horizon 1 Horizon 2 Horizon 3 This is the basis of the “three horizon” model Time (years) Profit
  15. 15. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com The three horizon model Keeping the three horizons in mind, we should plan to manage projects in each horizon differently Horizon 1 Tweaks, derivatives & product support Horizon 2 New product platforms (“V2.0”) Horizon 3 Break-throughs & new platforms Time (years) Profit The first horizon involves implementing innovations that improve your current operations Horizon two innovations are those that extend your current competencies into new, related markets Horizon three innovations are the ones that will change the nature of your industry and generate new compentencies
  16. 16. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com The Three Horizons model is a simple framework to help managers consider whether they are planning for the future properly Managers are often lured into focusing too much on short term projects: Horizon 1 projects tend to exploit an established technology. Small R&D investments can produce significant gains. Focusing on generating obvious value, managers exert all their effort here. Horizon 2 projects are usually under-funded and have their support removed too early H2 projects are things like launching a product extension or V2.0 of a horizon 1 product. Because the project usually involves moving on to a subtly difference S-curve, H2 projects require a strong initial investment before they start to deliver progress. But management often compares the short-term ROI of these investments with projects in Horizon 1 and simply decides not to invest. Horizon 3 projects are often completely ignored Most businesses don’t have any long term plan to develop a breakthrough technology. If / when another firm develops this breakthrough, managers will scramble to catch up. This is when technology firms most often fail.
  17. 17. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com The three horizon model Keeping the three horizons in mind, we should plan to manage projects in each horizon differently Horizon 1 Tweaks, derivatives & product support Horizon 2 New product platforms (“V2.0”) Horizon 3 Break-throughs Time (years) Profit The first horizon involves implementing innovations that improve your current operations Horizon two innovations are those that extend your current competencies into new, related markets Horizon three innovations are the ones that will change the nature of your industry and generate new compentencies
  18. 18. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Horizon 1 Tweaks, derivatives & product support <6 months Innovations that improve your current operations. “profit from the core”, exploit core competences ,capitalising on existing strengths Description: Related concepts: Common mistakes: Expanding into new markets too soon, OR Excessive incrementalism Organisational focus: Organisations are usually geared towards delivering these projects. Source of value: Superior execution, and a culture of hustle, or leveraging an existing customer base / monopoly position Number of projects: Businesses typically have many small projects in this horizon, which require limited resource investment and deliver quickly. Management is focused on ROIMetrics: Businesses are typically focused on horizon 1 by default H1 Example Product
  19. 19. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Illustration of number of projects typically seen in horizon 1,2 and 3 Typically, businesses have most of their activity in horizon 1 Horizon 1 Tweaks, derivatives & product support Horizon 2 New product platforms (“V2.0”) Horizon 3 Break-throughs Time (years) Profit Businesses typically have many projects in this horizon, which require limited resource investment and deliver quickly.
  20. 20. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Horizon 2 New product platforms (6 months to 1 year) Extend your current competencies into new, related markets. Description: Related concepts: Common mistakes: H2 is incredibly difficult to manage. Seem similar to your current products Temptation is to use the same metrics to assess their success. You are likely to abandon them too quickly because it will seem like they’re not performing well. Organisation al focus: Projects require senior management (“champions”) involvement to ensure they get appropriate priority. Source of value: Positional advantages (leveraging other assets). Number of projects: A smaller number of H2 projects should be undertaken. Metrics: Horizon 2 projects need to managed with a sense of entrepreneurialism and focus on growth Entrepreneurialism, Balanced score cards Growth rates, progress against technology mile-stones, revenue, NPV H1 Example Product H2 Example Products
  21. 21. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Illustration of number of projects typically seen in horizon 1,2 and 3 Typically, businesses have a little activity in horizon 2 Horizon 1 Tweaks, derivatives & product support Horizon 2 New product platforms (“V2.0”) Horizon 3 Break-throughs Time (years) Profit Businesses typically have many projects in this horizon, which require limited resource investment and deliver quickly.
  22. 22. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Horizon 3 Break-through products or services (>3 Years) Horizon three innovations are the ones that will change the nature of your industry. Generally, these are radical innovations. Description: Related concepts: Common mistakes: H3 projects can seem like expensive distractions from daily business. But if management neglect to prepare for the future, they run the risk that the core business will become redundant and collapse. Most businesses have no plan for horizon 3. Organisation al focus: CEO leadership is needed to select these projects and to ensure the business takes investment in them seriously Source of value: Value is typically delivered by being a first mover, establishing a quasi- monopoly. Number of projects: Businesses should pick a small number of main themes to invest around and then experiment with multiple projects around the themes, expecting some experiments to fail and others succeed. This is to not be mistaken for managing a portfolio of unrelated investments in the hope that some succeed. Metrics: Horizon 3 projects need CEO-level leadership and a focus on achieving technical milestones Vision Statements Metrics are predominantly stage gate based, demonstrating that certain technical hurdles can be met within a investment limit
  23. 23. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com It is rarely obvious what an H3 product looks like for a business
  24. 24. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Illustration of number of projects ideally seen in horizon 1,2 and 3 Most businesses have no active investments in horizon 3 Horizon 1 Horizon 2 Horizon 3 Time (years) Profit Businesses typically have many projects in this horizon, which require limited resource investment and deliver quickly. Businesses support fewer H2 projects, measuring progress against stage-gates and killing-off under- performers. ?Seen as an expensive distraction or pipe- dream, H3 is usually neglected
  25. 25. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Illustration of number of projects ideally seen in horizon 1,2 and 3 A more optimal spread of projects balances the needs of the three horizons Horizon 1 Horizon 2 Horizon 3 Time (years) Profit Businesses typically have many projects in this horizon, which require limited resource investment and deliver quickly. Businesses support fewer H2 projects, measuring progress against stage-gates and killing-off under- performers. Businesses choose a small number of themes to invest in for H3, then “spread their bets” (Venture capital style) with several small bets within those themes
  26. 26. matthunter.com© 2012 Matt Hunter matthunter.com Critically, management of projects in each horizon differs Horizon 1 Tweaks, derivatives & product support Horizon 2 New product platforms (“V2.0”) Horizon 3 Break-through products or services Short-term profitability Cash-flow ROI NPV Market projections Technical demos NPV calculations nested in decision trees Real Options Advanced market estimates Management science Leadership Art Key Metrics & Tools: Main Players: Product Managers Functional & Technical Heads CEO & CTO Overall Vibe:
  27. 27. matthunter.com© 2012 Matt Hunter matthunter.com How do you select which horizon a project fits into? • Re-balancing the project portfolio over the three horizons normally means killing off some existing projects • Can be controversial in the business… • If we start culling projects in “Horizon 1”, product managers will try to get re-classified as “Horizon 2” to keep their projects alive • There are also other political motivations that effect how people want their projects to be viewed • Being classed as a “breakthrough” means higher profile support and less scrutiny on profitability in the short term, so some will try to push for H3 • Helps if we have a system to focus the discussion • The following method uses two simple questions to try to answer whether a project is likely to be in horizon 1, 2 or 3
  28. 28. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Change in customer focus First question: “To what extent does this project serve a different group of customers?” LOW CHANGE Existing customers and previously identified needs MEDIUM CHANGE Helps us win someone else’s customer by serving their previously identified needs OR Takes us into an existing market segment that we weren’t competing in before HIGH CHANGE Serves a new group of customers meeting a need that was previously unidentifed
  29. 29. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Level of innovation required Second question: “To what extent does this project require an innovation in our technology or processes?” LOW INNOVATION Tweaks an existing product or provides support to it MEDIUM INNOVATION Expands our product range with a new but similar product OR Releases another generation (“V2.0”) of an existing product HIGH INNOVATION Requires new organisational capabilities OR results in an entirely new product or service that we sell
  30. 30. matthunter.com© 2012 Matt Hunter matthunter.com We can define a project’s horizon based on the extent to which it demands more innovation & accesses new customers Horizon 3: Breakthrough Projects Horizon 2: New product platforms Horizon 1: Tweaks, derivatives & product support Customers Less Change More Change Innovation More Less Adapted from Wheelwright & Clarke 1992, Pierre Azoulay 2012; with Horizon features overlaid
  31. 31. matthunter.com© 2012 Matt Hunter matthunter.com Horizon 3: Breakthrough Projects Horizon 2: New product platforms Horizon 1: Tweaks, derivatives & product support Customers Existing Customers New Customers OR Enters a different existing segment New Customers Less Change More Change New Core Product or Service Next Generation of Product or Service Product or Service Extensions Derivatives & Tweaks Innovation More Innovative Less Innovative Adapted from Wheelwright & Clarke 1992, Pierre Azoulay 2012; with Horizon features overlaid We can define a project’s horizon based on the extent to which it demands more innovation & accesses new customers
  32. 32. matthunter.com© 2012 Matt Hunter matthunter.com Plotting existing and proposed projects against these dimensions we can determine which horizon they fall in Project list
  33. 33. matthunter.com© 2012 Matt Hunter matthunter.com Typically, businesses will find the majority of their projects fall in H1, a few in H2 and few (or none) in H3 Project list
  34. 34. matthunter.com© 2012 Matt Hunter matthunter.com Balancing the project portfolio over the horizons then requires a mix of culling, reviving and generating projects CULLING Some of the horizon 1 projects should be considered for cancellation (or if possible outsourcing) to create capacity for H2 and H3 GENERATING Management should think deeply and canvas opinion throughout the business to generate more prospective projects in H3 REVIVING It’s usually easy to find more H2 projects – typically, they are sitting in engineers’ desk drawers because they were previously attempted but cancelled too soon
  35. 35. matthunter.com© 2012 Matt Hunter matthunter.com How many projects in each horizon? No hard rules. Google aims for 70/20/10 “We spend 70 percent of our time on core search and ads. We spend 20 percent on adjacent businesses, ones related to the core businesses in some interesting way. Examples of that would be Google News, Google Earth, and Google Local. And then 10 percent of our time should be on things that are truly new… How do you enforce that 70/20/10 rule? For a while we put the projects in different rooms. That way, if we were in one room too long, we knew we were not spending our time correctly. It was sort of a stupid device, but it worked quite well. Now we have people who actually manage this, so I know how I spend my time, and I do spend it 70/20/10”. Eric Schmidt, then Google CEO, speaking to Business 2.0 magazine, December 1st 2005
  36. 36. matthunter.com© 2012 Matt Hunter matthunter.com So let’s start with a 70/20/10 split of projects across the horizons
  37. 37. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Product Management Strategy Summary • 1) Balancing short term profit and long term value • Most businesses are overloaded with short term feature development that is called for by existing customers. • Being too reactive to existing customers, businesses under-invest in longer term product extensions and big-win initiatives • Planning for horizon 2 and horizon 3 helps avoid “death by incrementalism” • 2) Recognising when to manage projects differently • H1: ROI & efficiency • H2: NPV & market share • H3: Options • 3) Projects can classified as H1, H2 or H3 with a degree of science • Classify projects based on the degree of innovation required and the extent to which projects appeal to existing or new customer groups • 4) Explicitly target a 70/20/10 spit of projects over the 3 horizons • Choose a project split which reflects your need to maintain present projects versus deliver long run growth
  38. 38. matthunter.com© 2012 Matt Hunter Click to edit Master title style matthunter.com Matt Hunter is a senior product manager with experience in consumer web, mobile apps and digital marketing. Matt is presently Director of Product Management at App Annie in Beijing. Previously, he headed Product Development and Digital Marketing at Confused.com, a British insurance comparison engine. Matt also worked as a consultant with Bain & Company in Europe, South Africa and Australia. He is the holder of an MA in Economics & Management from the University of Oxford, an MSc in Strategic Information Systems from Cardiff University and the MIT-Tsinghua International MBA.
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