Lean Product Development

Lean product development is a methodology designed to accelerate product creation while minimising waste. Unlike traditional development processes, it breaks down communication barriers between departments, fostering collaboration across all teams from start to finish. This continuous involvement allows the product to evolve and improve more efficiently. The lean approach is guided by five core principles.

1) Deliver value to the customer

2) Identify the value stream and reduce waste

3) Streamline the value-creating steps

4) Empower the team

5) Learn and improve

While Management remains informed about the viability of investments and project progress, the focus is on removing obstacles to maximise team efficiency and effectiveness.

DISCOVERY

Collect Ideas

Fund Strategic Ideas

Early Risks Understood

Early Product/Market Testing

DEFINITION

Product/Market fit confirmed

Agile Team Formed

Stories Written

Business Plan Approved

DESIGN

Proof Of Concept Created

Development Planned

Agile Process Continues

Product Design

DEVELOPMENT

Product Is Feature Complete

Product Quality Is Assured

Agile Development Continues

Go To Market Plan Finalised

Minimum Viable Process

An efficient way to apply Lean Product Development (LPD) and eliminate non-value-added activities is by streamlining the traditional product development process.

This streamlined approach is known as the Minimum Viable Process. It empowers teams to create the best possible prototypes and products with minimal oversight from senior management.

3 Key Check Ins

Instead of the typical six or seven phases with multiple approval gates, this approach reduces it to just three key check-ins between the team and Management. These check-ins focus on:

Definition Check-in

Ensuring product-market fit

Design Check-in

Validating the proof of concept

Development Check-in

Confirming the final product feature set and go-to-market strategy

Key Performance Indicators (KPIs) measure progress toward long-term business objectives. Unlike general metrics, KPIs focus on the critical priorities and initiatives that drive your business, allowing you to set the course for success.

For startups, KPIs serve as benchmarks for specific targets or goals that your team is striving to achieve. These indicators are typically built around key metrics that have the most significant impact on reaching your overarching business objectives.

1) MRR (Monthly Recurring Revenue)

The amount of revenue you make that recurs monthly

2) ARR (Annual Recurring Revenue)

The amount of revenue you receive that recurs yearly

3) ARPA (Annual Revenue per Account)

MRR / Total # of Customers

4) Gross Profit

Total revenue minus the cost of goods sold

5) TCV (Total Contract Value)

Value of one-time and recurring charges

6) ACV (Annual Contract Value)

The value that a contract will bring to your business annually

7) LTV (Lifetime Value)

Prediction of the net profit from the entire future relationship with a customer

8) Deferred Revenue

Amount that was received by a company in advance of earning it

9) Billings

Current quarterly revenue + deferred revenue from the previous quarter

10) CAC (Customer Acquisition Cost)

How much it costs, on average, to acquire a customer

11) CCR (Customer Concentration Risk)

Revenue from largest customer / total revenue

12) DAU (Daily Active Users)

The number of users that return to your startup’s site or app on a daily basis

13) MAU (Monthly Active Users)

The number of users that return to your startup’s site or app on a monthly basis

14) Number of Logins

The amount of times users have logged in to your portal

15) Activation Rate

Number of users taking a specific action to get value out of a product

16) MoM (Month-on-Month Growth)

The rate of growth from month to month, comparing the the current month or past 30 days to the previous month or last 31 to 60 days.

17) CMGR (Compounded Monthly Growth Rate)

(Latest Month/First Month) ^ (1 / # of Months) – 1

18) MCR (Monthly Churn Rate)

Lost customers this month / prior month total

19) Retention by Cohort

% of original installed base (1st month) that are still transacting

20) GCR (Gross Churn Rate)

MRR lost in a given month / MRR at the beginning of the month

21) Net Churn

(MRR lost – MRR from upsells) this month / MRR at the beginning of the month

22) Monthly Cash Burn Rate

How much money you spend per month (gross)

23) Net Burn Rate

Revenues – gross burn

24) Gross Burn

Monthly expenses + any other cash outlays

25) TAM (Total Addressable Market)

Revenue opportunity available for a product

26) ARR (Annual Run Rate)

Projection of current MRR into the future, annualised

27) Gross Margin

Difference between revenue and cost of goods sold

28) Sell-Through Rate

Number of units sold in a period/number of items at the beginning of the period

29) Network Effects

Effect of one user on the value of that product to other people (example: Metcalfe’s Law)

30) Virality

Viral coefficient = average number of invitations sent existing user * conversion rate of invitation

31) NPS (Net Promoter Score)

How likely user is to recommend your product to a friend

32) Platform Risk

Dependence on a specific platform or channel

33) Direct Traffic

Traffic coming directly to your site via a link or entering the URL

34) Organic Traffic

Unpaid traffic from search results

Product Management is a challenging and dynamic role that requires juggling a wide range of demands from customers and internal stakeholders like Sales, Engineering, and the C-Suite.

A poor Product Manager may become overwhelmed and disorganised under pressure, but a great Product Manager uses a simple yet effective framework to navigate complexity.

The 5 W’s provide a straightforward Product Management framework to maintain focus, sift through complexity, and prioritise the work that truly matters.

They help distinguish between noise and signal, enabling Product Managers to zero in on what is essential.

1. Who (Users and Value)

This question helps identify the users and the value they expect from a feature request or project.

Who are you building this product for?

Who are you solving a problem for?

Who is the user, the buyer, or the stakeholder?

Who is impacted, and how significant is the impact?

Customer research and segmentation are often necessary to fully understand the users and the value they seek.

2. Why (Problem Statement and Justification)

This is the most crucial “W.” Misunderstanding the “Why” is a common cause of failure, even if you know your users well.

Why are you developing this product, feature, or project?

What are the compelling needs of your users?

Why is solving this problem important, whether for an enterprise client or a consumer?

If you can’t answer this clearly, you risk building the wrong product or feature—a situation no Product Manager wants to find themselves in.

3. What (Solution Set and Scope)

This question defines the scope of the problem and the solution.

What actions does the user need to take to solve their problem?

What is the proposed solution, and what is its scope?

What are the benefits and features that this solution will offer?

Defining “What” ensures that the product addresses the right problems with the right features.

4. Where (Context and Usage)

This question focuses on understanding the context in which the solution will be used.

Where and when do the user’s problems arise?

Where and how will the solution be used?

Does the solution need to support mobility?

How frequently will users engage with the solution, and in what contexts?

Understanding “Where” ensures that the product fits seamlessly into the user’s environment and usage patterns.

5. When (Priority, Urgency, and Timelines)

Every user problem has a priority, and solving it requires a timeline. If solutions are delayed, users might turn to alternatives, closing the window of opportunity.

When is this solution needed?

How urgent is it, and what are the timelines?

What is the priority of this feature compared to others?

The “When” helps drive the prioritisation of product development, assuming the other W’s are well-understood.

Embracing Creativity in Product Strategy

Starting a new role can be overwhelming. You’re bombarded with new faces, systems, and processes.

One of the greatest challenges in product management is breaking free from cognitive biases that stifle innovation. 

As outlined by Tony McCaffrey and Jim Pearson in their essay Find Innovation Where You Least Expect It, biases like functional fixedness limit our ability to see beyond the obvious uses of a tool or idea.

They recommend the “generic parts technique,” which involves breaking down an object into its fundamental components to unlock new use cases. eg viewing a candle not just as a single item, but as wax and wick, opens the door to novel applications.

Applying this concept to product management, Product Managers should focus on breaking down existing resources and strengths to find innovative solutions.

Creativity in this context is about generating useful, novel ideas—a form of “combinatorial play” as Einstein described it.

Identifying the unique strengths and weaknesses of your new company can set the stage for creative breakthroughs.

A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) can be an invaluable tool here.

Days	Areas		Deliverables
1 to 15	Product Strategy Stakeholder Management		1st Draft SWOT Analysis 1st Draft Stakeholder Diagram
16 to 25	Product Dev Discovery		Brainstormed list of solutions
26 to 30	Product Dev Prioritisation		Roadmap
31 to 90	Product Dev Execution Product Strategy Stakeholder Management		Product Requirements Document Deliver on early win 2nd Draft SWOT Analysis 2nd Draft Stakeholder Diagram

90 DAY ACTION PLAN

1) FIRST 30 DAYS

1.1) Use Your Products

Spend 2 hours daily getting hands-on experience with your new company’s products to understand their architecture and user experience.

1.2) Interview Long-Timers

Schedule 3 coffee chats a week with veteran team members. Dive into company lore, industry trends, and learn from their experiences.

1.3) Industry Research

Dedicate 2 hours daily to exploring competitors and industry benchmarks.

By the end of the first month, you should have a clear SWOT analysis that highlights where your company excels and where it needs improvement.

This groundwork will help you identify opportunities for creative solutions that align with your product strategy.

1.4) Building Relationships with Stakeholders

A significant portion of your success in the first 90 days will depend on effective stakeholder management. 

From team members to external partners, knowing who to involve and when is crucial.

Here, a stakeholder diagram can help map out your interactions:

Core: Your immediate product team like engineers and designers. Your day-to-day collaborators.

Contributors: Impact your project directly but aren’t involved in daily decision-making.

Observers: Just need updates. Keeping them informed with minimal effort is key.

Evaluators: Inspired by Pixar’s “creative brain trust,” this group can serve as a sounding board for feedback on your product vision without being deeply invested in the project.

2) DAYS 30-60

2.1) Map Your Stakeholders

After each coffee chat, categorise individuals using the stakeholder diagram. Adjust this map as you learn more about each person’s role and influence.

2.2) Set Expectations with Core Team

Understand how your team members work. Ask about their processes, preferences, and pain points to align your approach.

By the 60-day mark, you should have built strong relationships with key stakeholders, setting the stage for collaborative success in your product initiatives.

2.3) Secure Early Wins

As Michael Watkins emphasises in The First 90 Days, early wins are crucial for building momentum. But how do you identify and execute on these quick wins? Start by looking for patterns in stakeholder feedback. Focus on unfinished projects that have been sidelined due to lack of time or resources—these can be prime candidates for early victories.

3) DAYS 60-90

3.1) Discovery

Use your SWOT analysis and stakeholder insights to identify a high-impact project that can be completed quickly.

3.2) Prioritisation

Use creative goal-setting techniques, such as exploring hyponyms (more specific synonyms), to refine your project goals. For example, changing “improve API usage” to “increase API key generation” can sharpen focus.

3.3) Execution

Implement the solution with a small team, aiming for a quick turnaround. Apply the “satisfice” principle—seek solutions that are good enough within your time constraints rather than perfect.

As Rick Rubin famously said, “There is no connection between how long something takes and how good it is.” By focusing on delivering something impactful within 60 days, you demonstrate your ability to drive results.

Summary of Your 90-Day Plan

The role of a Product Manager is inherently cross-functional, demanding expertise in strategy, stakeholder management, and product development. For a Product Manager, the first 90 days are an opportunity to leverage unconventional thinking tools like brainswarming (a structured approach to brainstorming) and combinatorial play to solve complex problems.

DAYS 1-30

Focus on product strategy by using tools like SWOT analysis and generative techniques to identify opportunities.

DAYS 30-60

Build stakeholder relationships and map out a clear stakeholder diagram for better project alignment.

DAYS 60-90

Secure an early win by leveraging creative problem-solving and rapid execution techniques.

By following this plan, you build trust, establish your creative approach, and lay a solid foundation for future product innovations.

The first 90 days are your chance to demonstrate that creativity and structured problem-solving can coexist, paving the way for long-term success in your role as a Creative Product Manager.

Product Management – 3 Core Skills

Product management is a multifaceted discipline that sits at the intersection of creativity, technology, and business strategy.

Successful product managers (PMs) are visionaries who turn ideas into impactful solutions that drive business growth.

In the dynamic world of product management, mastering the triad of creativity, technical knowledge, and commercial acumen is crucial.

Each of these skills plays a vital role in transforming a product from a mere concept to a market success.

By honing your core competencies you can drive innovation, user satisfaction, and business growth.

Whether you’re an aspiring PM or a seasoned professional, investing in these three core skills will help you become a more effective and impactful product leader.

To excel PMs need to master three core skills: creative thinking, technical knowledge, and commercial acumen

1. Creative

Product management is a creative endeavour. Product managers are responsible for envisioning and designing products that solve real-world problems, delight users, and stand out in the market.

Creativity is about innovative problem-solving, empathy, and user-centric design.

Creative Skills Matters

Identifying User Needs

A PM must deeply understand the users’ pain points and needs. This requires creative thinking to go beyond surface-level solutions and discover what truly makes a difference for the end user.

Brainstorming Solutions

Creativity enables PMs to ideate multiple solutions and approach challenges from different angles. It’s about generating a wide range of possibilities and selecting the one that best aligns with the product vision.

Designing Differentiated Products

In a competitive market, products that capture attention are often those with unique, thoughtfully designed features. Creative product managers can craft compelling user experiences that differentiate their product from competitors.

Example: Airbnb

Consider how Airbnb revolutionised travel accommodation.

The creative insight to turn people’s homes into short-term rentals wasn’t just about filling a market gap; it was about creating an entirely new user experience that connected travellers with unique, local living spaces.

2. Technical

While product managers are not required to be engineers, having a solid technical foundation is crucial. 

Understanding the technical aspects of a product helps PMs make informed decisions, effectively communicate with development teams, and ensure that their product visions are feasible.

Technical Skills Matter

Facilitating Communication with Engineers

PMs need to bridge the gap between business goals and technical implementation. Knowing the language of developers helps in translating complex business requirements into actionable technical tasks.

Prioritising Features

A technically proficient PM can better evaluate the feasibility of various features, understand the constraints of the technology stack, and make informed trade-offs between different product enhancements.

Ensuring Product Quality

Understanding the technical underpinnings of a product allows PMs to assess risks, anticipate potential issues, and ensure a high-quality product launch.

Example: Mobile App

Think of a PM working on a mobile app. Understanding the implications of backend infrastructure, API integrations, and data security can help them collaborate effectively with developers to build a robust and scalable product.

3. Commercial

The third essential skill for product managers is commercial acumen; an understanding of the business side of products. PMs must be able to assess market opportunities, define product strategies, and align them with the company’s financial goals.

Commercial Skills Matter

Market Analysis and Positioning

PMs need to analyze market trends, competitive landscapes, and customer feedback to identify opportunities and threats. This knowledge helps in positioning the product effectively to maximise market penetration and user adoption

Revenue and Profitability

PMs are responsible for ensuring that the product contributes to the company’s bottom line. This involves setting pricing strategies, identifying monetization opportunities, and optimising the product to increase profitability.

Strategic Decision-Making

Commercial skills empower PMs to make data-driven decisions about product features, go-to-market strategies, and scaling efforts. This ensures that the product not only meets user needs but also aligns with broader business objectives.

Example : Freemium Launch

Consider the strategic decisions behind launching a freemium model. A PM with strong commercial insight might identify that offering a free version of a product can drive user acquisition, with the option to upgrade for premium features, thereby increasing revenue over time.

Balancing the Triad

The real challenge for product managers lies in balancing these three core skills. Creativity, technical knowledge, and commercial acumen are interdependent.

A product manager might excel in one area but must develop competencies across all three to deliver a successful product. For instance:A creative PM may excel in ideation but needs technical skills to assess feasibility and commercial acumen to ensure market viability.

A technical PM can understand the intricacies of product development but may need to enhance their creativity to design user-centric solutions and their business skills to optimise for revenue.

A commercially savvy PM may be great at identifying market opportunities and driving growth but needs creative and technical inputs to build a product that users love.