Showing posts with label Product Strategy. Show all posts
Showing posts with label Product Strategy. Show all posts

Building for Bharat

I grew up in a city that for most part of it was privately managed, i.e., a private organisation was managing most of the day to day running of the city. In the neighbourhood we had a 'Dispensary', a Community Clinic which is somewhat modelled in 'Mohalla Clinics' of Delhi.

For most of the daily ailments, pretty much 100% of the locality just walked upto the dispensary to get first level medical care.

As kids, if we bruised our knees when we played we went to the Dispensary for primary dressing and care. If someone in the family got fever, cough, cold or anything else - the first stop was to be this clinic. If the nurses or registered medical practitioners (RMP) in those clinics felt that we needed specialised care, they would either refer us to the hospital in case of emergency, or they will ask us to come by Doctor's schedule.

A Delhi Community Clinic - idinsight.org

What this solved was two of India's core problems:

1) Accessibility - It made primary care easily accessible for most of the people at a stone's throw away. 

2) Capacity - It also ensured that the specialised doctors and hospitals were not overly stretched by capacity.

The key tenet here? By way of right trainings and enablements, nurses/RMPs were able to do a little more than what otherwise their inherent skills would have allowed - looking at the symptoms, and doing the primary diagnosis to identify whether you needed specialised care or not. And then decentralised the model by bringing it at the community door steps.

Over the time the model went Kaput (was planned for revamp in 2017). Well trained Nurses and RMPs are a specialised skill now-a-days, and they could only do so much along with piles of administrative work that comes along.

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If we had to scale the model today and make it work - what do we do? How can technology and product play a role here? If you answered - "we can take the rudimentary stuff out of the R&R of medical care workers and automate those", then you couldn't be more wrong.

We don't need technology to make the nurse more productivity and clear more files. If we had to scale the model today - we would need to augment the skills of otherwise untrained staff to take over the day-to-day administrative work, that can free up the capacity of nurses/RMPs trained to deliver medical care and enable them to do more of it.

Building for Bharat requires a different perspective. India has a unique problem of over-capacity as well as under-capacity. While we have a large number of employable young who may be unemployed or looking for job, on the other hand we have our skilled group which is significantly stretched - engineers, doctors, nurses, judges etc.

One of the major reason for such a divide to exist is that a large majority of our working population are literate only upto primary level (~57.8%, incl. 32% non-literate) and merely 5% have gone up to receive professional qualification. Everything else - middle, secondary, matriculation, diploma etc. are spread in the middle at abysmally low numbers independently.

Where this impact is also easily reflected is in the employment - 99.4% of India's MSME are micro enterprises and more than three-fourth of those are run by <2 people. These are self employed people - who run Kiranas, Auto Repair, Salons etc. largely because of two reasons - (1) there are not enough jobs for the under-skilled, (2) it's not easy to get access to the jobs and resources out there to grow.

Thus the problem for India is whole lot different.

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The problem for India is not the after-effect of technology adoption and digitisation, where the need is for next level optimisation - take the productivity from X to nX (the 80-100 optimisation problem).

The problem for India is that technology adoption is fairly nascent, or may not even have been built in many cases, to make the population do what they couldn't otherwise (0-80 enablement problem).

So, if we solve for the former 80-100 problem, i.e., optimise for productivity, then we may be solving the wrong problem. Because, the 0-80 journey, i.e., enablement, hasn't happened in many cases.

And, even for that we cannot take the model and path that high-income economies have taken decades ago and simply replicate it. Our problems need more creative solutions. Think traditional banking from the West which just couldn't viably work for Kenya and the creative innovation of M-Pesa just changed the way people banked and sent money home in Kenya.

Digitization & Automation - India's problem and opportunity space vs. high income economies

So, the problem statement is pretty simple - can we build technology that can augment the capability of a large under-skilled population such that:

  1. It can open up or create a new market for better paying and more productive work
  2. It can destress the specialised population by enabling under-skilled workers through technology to take over some of the non-specialised and administrative work, making the system overall multifold effective than what it is today
  3. It can provide access to tools and resources that can enable Individuals and Micro Enterprises to productively scale-up to the next tier, and create a lot more jobs in the process
  4. It can bring societal development and upliftment equally across the rural and urban areas

A lot of them are doing that, but only transactionally.

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When your online order for Fashion or Grocery is delivered next time, there is a high probability that a local Kirana or Micro entrepreneur has been enabled through technology to do last-mile logistics. Last mile logistics for ecommerce was fairly complicated, challenging, expensive and corner stone for customer experience once. However, technology led process simplification over time enabled an otherwise under-skilled worker to pick and deliver products to the end customer in an experience enhancing way.

A bunch of other social commerce organisations willingly or unwillingly have created massive number of localised entrepreneurs who otherwise were home-makers and had under-utilised capacity which was harnessed.

But, the rate of churn of Kiranas or Home-Makers from these platforms is a reflection of transactional nature of the augmentation. Apart from technology enablement to do this one thing - these semi-skilled players of the system don't get access to a whole lot of stuff that may be required to grow from there and beyond. 

To deliver the real value the change needs to be sustainable.

The augmentation needs to not just enable a semi-skilled or under-skilled person to do something new, but also enhance the capacity and bring access to growth levers.

Simply put - the real value will come when a micro entrepreneur selling Puja items in Motihari, is easily able to reach to it's customers in Delhi and eventually outside of India; and is able to grow into other local or non-local specialities through right access of knowledge, resources, network, capital and support - all enabled through technology; and in process creates a lot more jobs than he otherwise could have. 

The real value will come when a semi-skilled person is augmented by technology to run day-to-day operations of a mohalla clinic, or secondary school, in rural or semi-urban India while freeing up the nurses/doctors and teachers to deliver specialised services through tele-consultation or live online classes. And, by also bringing access to right set of resources and tools for the individual to grow from one clinic to more, or from one school to more.

And, many more.

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So, are you building for Bharat? If yes, hit me up with what you have been upto. Would love to connect and learn. :-)

And, if the topic excites you and you want to dig deeper on this, would highly recommend the brilliant book - Bridgital Nation: Solving Technology's People Problem.

Product Managers - Are You Building Features or Driving P&L and Business Strategy?

A couple of months ago I was having a conversation with some of the students of a leading B-School of India. They were part of the Strategy Club at the institute and wanted me to take a strategy session for the students.

When I proposed I would like to focus on Product Strategy, the energy in the room fell sharply. I could sense that. Offline I reached out to one of the students, and called it out. I got a counter proposal. They would connect me to the IT Club of the institute who would be better positioned to take Product Strategy.

I don't blame them.

During my early years of Product Management, we had a new Head of Product (SC) joining to lead the function. After settling in for the first few months, the entire product team met at an offsite. We were 10-15 odd PMs spread across multiple products.

First thing SC did was to pick up a Red Marker and write YoY target revenue numbers for the current and next 2 years followed by a big question mark on the White Board. He was asking his team - how do we do that?

Each PM got the opportunity to speak - and some of the interesting features and functionalities came to fore. But, SC wasn't happy and asked us to be more creative. More features and functionalities flew across the room.

This went on for a few more rounds. Finally he said - "Why can't we just market the hell out? Why can't we just focus on Operations and give the customers best operating experience? Why can't we just focus on the existing relationships?"

He went on to write names of the three of our largest believers (clients) and said - "if we could just make sure these three clients are happy - they alone will give us more than the targeted revenue. Why do we need new bells & whistles?"

He was right.

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PMs need to look beyond Technology. We need to understand P&L. We need to understand that tech is not the only lever Product can play with. We have (or should have) lot more at our disposal than we think we do.

Product Management is about Maximising Impact to the Mission while Achieving everything through Others - Finance, Legal, Engineering, Support, Operations, Marketing, Sales et. al.

And, aeffective product manager knows when to leverage which levers to drive maximum impact for the business and the organisation as a whole.

Product Management is about Maximising Impact to the Mission while Achieving everything through Others - Finance, Legal, Engineering, Support, Operations, Marketing, Sales et. al. An effective product organisation knows when to leverage which levers to drive maximum impact for the business and the organisation as a whole.


To expand this understanding a bit - Product Management and Strategy at an abstract level is about - Ideate & ConceptualiseSecure InvestmentBuildTake it to MarketManage the P&L, and Scale.

 

At an abstract level, Product Strategy generally is about:   Ideate & Conceptualise > Secure Investment > Build> Take it to Market > Scale While this covers everything, except that Product First organisations must hold Product Function directly accountable for the P&L. No dotted lines whatsoever.  Ideate & Conceptualise > Secure Investment > Build > Take it to Market > Manage the P&L > Scale


Organisations, incl. its leaders, and many a times us PMs think about a PM role as tech representative and not business representative. In actuality PMs can only be effective and deliver their worth if they are seen as true business enablers, and are closely mapped to business strategy/function.

What this means is that product first or product led organisations must hold Product Function responsible (better if accountable) for the P&L.

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Does that mean that all PMs are P&L owners? Yes and No.

P&L accountability can be clearly demarcated in case of tangible products, e.g., consumer durable; where each product can be represented as a stock-keeping-unit and the PM would be concerned with landed costs, contribution margins, sales forecast, pricing, marketing plan etc.

However, it's slightly harder in case of technology products - SaaS, Consumer Internet or Apps. Product teams are generally organised such that each team focusses on one aspect of a collectively larger offering. For example - for a SaaS offering a PM and her team might just be focussing on the client onboarding journey.

The way a product leader navigates this challenge is by leading with context, not control. She drives P&L accountability to her team by organising the team around a set of proxy metrics (KPIs) that closely represent the P&L such that -

  1. She is able to effectively communicate the business priorities, and ensure that effort of every PM in her team are aligned to the business strategy
  2. She's able to identify which PMs are making right decisions, and true progress towards executing the Business Strategy

The product leader defines the KPIs and priorities for each PM or PM teams, and the teams then work towards achieving those goals.

Profitability or Revenue may very well be one of those KPIs. But, more commonly so it would be - increasing growth, reducing churn, driving engagement, increasing user adoption, driving ARPU, increasing wallet share etc.

And this doesn't necessarily have a technology solve all the time, or doesn't mean that the PM team is spending 99% of the time building features. Infact it's actually opposite.

A mid-senior PM, or a product leader, is generally heads-down solving for some of the common product strategy problems -

  1. New Product Introduction / Investment - Market Potential, GTM Strategy, Optimal Price, Business Case - Financial Model, Brand Architecture, Name
  2. Industry Landscape, Competitor Dynamics - Whether or not it is an attractive industry to enter, ramp-up or potentially exit
  3. Pricing Optimisation / Strategy - How to structure commercials and set the price to attain certain goals, e.g., profitability, growth, penetration, skimming, sustainability, recurring revenue etc. 
  4. Market Entry or Expansion - Expand or enter a new market - new geographical region or customer segment
  5. Sustainability/Profitability Optimisations - Identify sources of declining (projected to decline) profit and plan to reverse/obviate it
  6. Growth Plan / Strategy - Growing a certain product's sales, growing in certain geography, increase in total sales etc.

And some 'not so common' strategy problems - incorporation or legal aspects of setting up the org., and M&A/JV to - widen product portfolio, increase market share, takeout competition etc.

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Back then when SC joined, our teams were transitioning from Tech PM to P&L responsibilities. On one of the flights with him I asked — “what does it mean when you say we need to manage P&L?”

He said — “You’ll figure it out. Everyone does.”

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So, what have you and your PM teams been upto in your current or previous organisations? Did you solve tech or business problems?

Did you 'build a flying saucer feature that would potentially make customer love the product', or did you 'tangibly move a business KPI / drive P&L impact'?

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