AMA: Barracuda Sr. Director, Product Management, Sheila Hara on Product Strategy

If your company doesn't currently have a formal product strategy, developing one is a crucial step towards ensuring that your product development efforts are aligned with your business goals. Here’s a step-by-step guide to creating a product strategy: 1. DEFINE YOUR VISION AND GOALS * Vision: Start by defining a clear, inspiring vision for what you want your product to achieve in the long term. This should align with your company’s overall mission. * Goals: Set specific, measurable goals that support this vision. These should be achievable and clearly communicate what success looks like for your product. 2. UNDERSTAND YOUR MARKET AND CUSTOMERS * Market Research: Conduct thorough market research to understand industry trends, competitor strengths and weaknesses, and potential opportunities or threats. * Customer Insights: Gather deep insights into your customers' needs, behaviors, and preferences. Techniques like surveys, interviews, and user testing can be invaluable here. 3. IDENTIFY THE JOBS TO BE DONE (JTBD) * Determine the core tasks that your customers need to accomplish. Understanding these will guide what features and improvements your product should focus on. 4. DEVELOP PRODUCT ROADMAPS * Roadmapping: Create a product roadmap that outlines the key features and milestones planned for your product. This should detail what will be developed, why it’s important, and approximate timelines. 5. ALIGN WITH STAKEHOLDERS * Engage with key stakeholders across your organization to align expectations and gather diverse insights. This includes leadership, marketing, sales, customer support, and the development teams. 6. SET UP METRICS FOR SUCCESS * Define how you will measure the success of your product strategy. Common metrics include user engagement, customer satisfaction, market share, and revenue growth. 7. ITERATE BASED ON FEEDBACK * Implement a process for continuous feedback and learning. This should involve regular reviews of your strategy based on performance data and direct feedback from users. 8. COMMUNICATE THE STRATEGY * Ensure that everyone involved understands the product strategy. Regular communication and updates will help keep all team members aligned and motivated. 9. REVIEW AND ADAPT * Regularly review your product strategy to ensure it remains relevant and effective. Adapt it based on changing market conditions, customer needs, and business priorities. Developing a product strategy is not a one-time activity but a continuous process that evolves with your business and the market.

Building internal confidence in a product strategy is crucial for securing the support and alignment of various stakeholders within the company. Here’s how we approach reporting on our product strategy at Barracuda to build and maintain this confidence: WHAT TO REPORT 1. Key Performance Indicators (KPIs): We track and report specific metrics that directly reflect the success of our product strategy. These KPIs might include user acquisition rates, retention rates, customer satisfaction scores, and revenue growth. These metrics provide a tangible measure of whether our strategy is working. 2. Market Feedback: We gather and share feedback from customers and market research. This includes insights from user testing, surveys, and feedback from customer support. Reporting on this feedback helps stakeholders understand how the market is responding to our product and where adjustments might be necessary. 3. Progress Against Roadmap: We regularly update on the progress of our development against the strategic roadmap. This includes milestones reached, features developed, and any pivots in direction. It’s crucial to show how the work aligns with the overall strategic goals. 4. Competitive Benchmarking: Reporting on how our products stack up against competitors and industry standards can also build confidence. This includes updates on market share changes, competitor product launches, and how our innovations are being received in the market. 5. Innovation and Learning: Insights from ongoing experiments, such as A/B tests or new feature rollouts, are shared. These reports demonstrate our commitment to continuous improvement and adapting based on empirical data. FREQUENCY OF REPORTING * Regular Interval Reporting: We typically report on these aspects in a structured format during regular intervals—often monthly or quarterly. This schedule keeps everyone informed and engaged with the product’s progress and challenges. * Ad-Hoc Updates: In addition to scheduled reports, ad-hoc updates are crucial when there are significant developments or shifts in the market or strategy. These updates might happen through emails, special meetings, or even through real-time dashboards that stakeholders can access any time. * Strategic Reviews: Annually or biannually, we conduct in-depth strategic reviews that not only cover performance and progress but also re-evaluate our long-term strategy based on the latest market conditions and company objectives.

Understanding the customer's ideal outcome and the "Jobs to Be Done" (JTBD) framework is crucial for product managers because it directly influences the effectiveness and success of the products they develop. Amongst various other things, here are my top reasons on why we do this as PMs * Customer-Centric Design: It ensures that products are developed to meet specific, real-world needs of customers, enhancing relevance and user satisfaction. * Improved Product Fit: Products aligned with JTBD are more likely to achieve market fit, as they address both functional and emotional customer needs. Crucial for start ups. * Enhanced Innovation: Knowing the JTBD helps identify gaps in market offerings, driving innovation and the development of distinctive features or new products. Crucial for remaining leaders in the industry

Barracuda has a structured approach that blends continuous integration and delivery (CI/CD) with Agile methodologies, using specific release timelines. This setup can offer several advantages, especially in managing complex software development and deployment processes effectively. Here’s a breakdown of how this approach might typically work and how it can be optimized: 1. Agile Practices: We organize our development activities into sprints, each lasting about 2 weeks. These sprints include regular sprint planning, daily standups, sprint reviews, and retrospectives to ensure continuous improvement and alignment within the team. 2. Continuous Integration and Delivery: Our CI/CD practices are integral to our development process. Developers commit changes to a shared repository frequently, which triggers automated builds and tests. This helps us maintain a high standard of code quality and ensures that our software can be released at any time. 3. Release Management: While our CI/CD pipeline keeps our software in a releasable state after each integration, the 2 week release pockets allow us to bundle features into coherent releases. This period also provides time for additional testing, final adjustments, and preparation of release documentation and marketing materials. 4. Feedback Loops: We heavily rely on feedback from these iterative processes and user input post-release to refine and improve our products. This feedback is crucial for adapting our processes and product offerings to better meet user needs.

Here are some key strategies to consider when thinking about defense in relation to your product strategy: 1. INNOVATION AND CONTINUOUS IMPROVEMENT * Stay Ahead with Innovation: Continuously innovate and improve your products. This could mean enhancing existing features, introducing cutting-edge technology, or creating entirely new product lines that set industry standards. * Fast Iteration: Adopt an agile approach to quickly iterate and refine products based on user feedback and emerging trends, ensuring that your offerings remain superior and relevant. 2. CUSTOMER-CENTRIC APPROACH * Deep Customer Engagement: Strengthen relationships with your customers through regular engagement and by delivering exceptional customer service. Understanding their evolving needs and responding with tailored solutions can increase loyalty and reduce churn. * Customer Feedback Loops: Implement robust mechanisms for collecting and acting on customer feedback to continually enhance product offerings and address customer pain points effectively. 3. EXPAND PRODUCT ECOSYSTEM * Build a Comprehensive Ecosystem: Develop a suite of products and services that complement each other, locking in customers by creating a cohesive experience that’s difficult for competitors to replicate. * Cross-Selling Opportunities: Utilize your existing customer base to cross-sell and up-sell related products, thereby increasing the customer lifetime value and making it harder for competitors to gain a foothold. 4. LEVERAGE DATA AND ANALYTICS * Data-Driven Decisions: Use analytics to understand market trends and customer behavior deeply. Leverage this data to make informed decisions about product development and strategic moves. * Predictive Analytics: Implement tools that can predict customer needs and market shifts, allowing you to proactively adjust your strategy. 5. STRENGTHEN BRAND LOYALTY * Brand Positioning: Clearly communicate your brand’s unique values and the superior benefits of your products. Strong branding can create an emotional connection with customers that’s hard to break. * Community Building: Build and nurture a community around your brand. Engaged communities can act as a significant barrier to competitors, as members are more likely to remain loyal and advocate for your products. 6. PROTECT MARKET SHARE THROUGH STRATEGIC PARTNERSHIPS AND ALLIANCES * Form Alliances: Create strategic partnerships that can help expand your market reach, integrate complementary technologies, or block competitor advances. * Acquisitions: Consider acquiring potential competitors or technology startups that could disrupt the market, integrating their innovations into your product line. 7. INTELLECTUAL PROPERTY PROTECTION * Patents and Trademarks: Aggressively protect your intellectual property to prevent competitors from copying your innovations and capitalize on your R&D investments. 8. PRICING STRATEGIES * Competitive Pricing: Use pricing strategies to make entry difficult for new competitors. This might involve lowering prices strategically, offering superior value, or bundling products to enhance customer retention.

In industries where the pace of change is rapid and often unpredictable, building an effective product strategy requires agility, foresight, and a strong understanding of the underlying technologies and market dynamics. 1. EMBRACE FLEXIBILITY AND AGILITY * Adaptive Roadmaps: Develop roadmaps that are flexible and can be adjusted as new information and technologies emerge. Prioritize agility over fixed long-term plans. * Iterative Development: Implement an iterative development process, such as Agile, to accommodate rapid changes and innovations. This allows for frequent reassessments and refinements based on the latest industry developments and customer feedback. 2. STAY INFORMED AND PROACTIVE * Continuous Learning: Ensure that you and your team are constantly learning about the latest advancements in AI and web3 (or whatever latest tech is out there). This might involve regularly attending conferences, webinars, and workshops, and engaging with thought leaders in the space. * Early Adoption and Experimentation: Be proactive in experimenting with new technologies. Early adoption can provide a competitive edge and valuable insights into what resonates with users. 3. DEEP MARKET AND TECHNOLOGICAL RESEARCH * In-depth Market Analysis: Continuously analyze the market to identify emerging trends, potential customer needs, and competitive movements. This should include regular scanning of new startups, innovations, and technological breakthroughs in your sector. * Customer-Centric Innovation: Keep your focus firmly on solving real customer problems. Utilize techniques such as design thinking to empathize with users and understand their needs deeply. 4. BUILD A VISIONARY YET REALISTIC STRATEGY * Visionary Thinking: Develop a clear, compelling vision of how (AI , web3, LLMs, fill in the blank) can transform your industry or create new market opportunities. This vision should guide your strategic decisions and inspire your team and stakeholders. * Balanced with Realism: While it’s important to have a bold vision, it also needs to be grounded in practicality. Assess what is realistically achievable given your resources, technological constraints, and market readiness. 5. ROBUST RISK MANAGEMENT * Scenario Planning: Given the high uncertainty in fast-evolving fields, use scenario planning to prepare for various future possibilities. This helps in crafting strategies that are robust under different conditions. * Continuous Risk Assessment: Regularly evaluate the risks associated with new technologies and market shifts. This includes technological feasibility, regulatory considerations, and market acceptance. 6. LEVERAGE STRATEGIC PARTNERSHIPS * Collaborations and Alliances: Form strategic partnerships with other companies, research institutions, and tech innovators. These partnerships can provide access to new technologies, skills, and market insights that are crucial for staying at the forefront. 7. FOSTER A CULTURE OF INNOVATION * Encourage Creativity: Promote a culture that encourages risk-taking and creativity within your team. Allow space for experimentation and learning from failures, which is essential in dynamic fields (like AI and web3). * Diverse Teams: Build teams with diverse skills and backgrounds. This diversity can enhance creativity and provide a range of perspectives necessary for innovation in complex and rapidly changing areas.

I emphasize the importance of continuous validation in your product strategy, a key principle championed by Marty Cagan. He teaches us that the essence of product management lies in the discovery process. So, let's break down how you can ensure your product strategy is on the right track: 1. Engage in Continuous Discovery: Always be in the mode of testing your assumptions. Use rapid prototyping and conduct experiments to validate your ideas with real users. This approach helps confirm that your strategy addresses genuine user needs and delivers value. 2. Implement Dual-Track Development: This methodology separates the discovery of viable ideas from their delivery. Validate new features or strategic shifts in the discovery track through prototypes and user feedback before they enter the delivery track. This safeguards against investing in features that don't meet user expectations. 3. Test for Product-Market Fit: Use minimum viable products (MVPs) to test your offerings in the real market. This is crucial for understanding whether your product meets a legitimate market need and can stand out among competitors. 4. Focus on Outcomes, Not Outputs: Orient your teams around achieving specific outcomes rather than just delivering features. This shift ensures that every effort is geared towards enhancing customer satisfaction and driving business success. 5. Regularly Gather Customer Feedback: Maintain a close connection with your customers through surveys, interviews, and usability tests. This feedback is invaluable for validating whether your product direction aligns with their needs and expectations. 6. Monitor Key Metrics and KPIs: Define and track key performance indicators that align with your strategic goals. Metrics related to user engagement, retention, and satisfaction are vital for assessing the effectiveness of your strategy. 7. Embrace Iterative Learning: Adopt a mindset of continuous improvement. Iterate based on feedback and market changes to refine your strategy, ensuring it remains relevant and effective.

Market trends play a crucial role in shaping product strategy. They provide essential insights into shifting consumer preferences, emerging technologies, and competitive dynamics. Here’s how understanding market trends can significantly influence the strategic decisions we make at Barracuda: 1. Identifying Opportunities and Threats: By keeping a close eye on market trends, we can identify emerging opportunities that might be ripe for innovation and also recognize potential threats before they become problematic. This proactive approach allows us to adjust our strategy to either capitalize on these opportunities or mitigate risks effectively. 2. Guiding Product Development: Trends can inform what features we prioritize in our development roadmap. If a trend indicates a growing customer demand for a particular functionality or integration, we can prioritize these developments to stay competitive and relevant. 3. Influencing Go-to-Market Strategy: Market trends help us tailor our marketing strategies. For example, if there's a rising trend towards ML, we might highlight the efficient aspects of our products using ML in our marketing campaigns. 4. Resource Allocation: Understanding which trends are just passing fads and which are here to stay can help us allocate our resources more wisely—investing more in long-term trends and less in those that are likely to be short-lived. 5. Competitive Advantage: By staying ahead of trends, we can position our products and services as leading-edge solutions in the market. This can be a significant differentiator, especially in industries that are fast-paced and highly competitive. 6. Customer Retention and Acquisition: Aligning our product offerings with market trends can improve customer satisfaction by ensuring that our products meet current and future needs. This alignment not only helps retain existing customers but also attracts new ones who are seeking the latest solutions. Market trends are not just indicators of where the market is today, but predictors of where it might go tomorrow. At Barracuda, we integrate these insights into our product strategy to ensure we're not only responsive to current market conditions but also ahead of future developments. This approach helps us maintain a competitive edge and align our offerings more closely with customer expectations.

Developing your product strategy skills involves a combination of education, hands-on experience, and continuous learning. 1. FORMAL EDUCATION AND TRAINING * Courses and Workshops: Enroll in courses related to product management, business strategy, and market analysis. Many universities and online platforms offer specialized courses that can deepen your understanding of these areas. * Certifications: Consider obtaining certifications from recognized bodies in product management such as AIPMM (Association of International Product Marketing and Management) or Pragmatic Institute. 2. PRACTICAL EXPERIENCE * Hands-On Involvement: The best way to learn is by doing. Engage directly in the development and execution of product strategies within your organization. Volunteer for new projects that require strategic thinking and planning. * Cross-Functional Collaboration: Work closely with different teams (marketing, sales, customer service, engineering, etc.) to understand various perspectives and how they contribute to the overall product strategy. 3. MENTORSHIP AND NETWORKING * Find a Mentor: Connect with a seasoned product manager or strategist who can provide guidance, share insights, and help you navigate complex challenges in product strategy. * Networking: Join professional groups and forums (like Product Management communities on LinkedIn or local meetups) where you can learn from peers and stay updated on industry trends. 4. CONTINUOUS LEARNING AND ADAPTATION * Keep Up with Industry Trends: Stay informed about the latest trends and technological advancements in your industry. Reading industry reports, subscribing to relevant newsletters, and attending webinars can help. * Feedback and Reflection: Regularly seek feedback on your strategies and decisions. Reflect on what works and what doesn’t, and continuously refine your approach. 5. READ WIDELY AND DEEPLY * Books and Publications: Read books and articles on strategy, product management, customer psychology, and business operations. Authors like Marty Cagan, Ben Horowitz, and Clayton Christensen provide excellent insights into the dynamics of product strategy and management. * Case Studies: Analyze successful and failed product strategies to understand decision-making processes, market reactions, and operational execution. 6. USE OF TOOLS AND TECHNOLOGY * Master Strategic Tools: Familiarize yourself with tools that assist in market analysis, customer feedback, road mapping, and project management. Tools like JIRA, Trello, Roadmunk, or customer feedback platforms like UserVoice can be very beneficial. 7. SIMULATION AND SCENARIO ANALYSIS * Engage in Scenario Planning: Practice developing strategies under different hypothetical market conditions to improve your strategic thinking and adaptability.

Ideas for new features can come from a multitude of sources, and deciding which ones to build involves a thoughtful process of evaluation and prioritization. Here’s how we approach this at Barracuda: SOURCES OF FEATURE IDEAS 1. Customer Feedback: Direct input from users is invaluable. This can be gathered through support tickets, customer interviews, usability tests, surveys, and feedback forms. Customers often provide insights into what features they need, what issues they encounter, and how their user experience can be improved. 2. Market Research: Keeping an eye on industry trends, competitor analysis, and market demands helps us identify features that could be necessary to stay competitive and relevant in the market. 3. Internal Teams: Ideas can also come from within the company—from engineers, marketers, salespeople, and support staff. These team members often see different aspects of how the product performs in real-world scenarios and can offer unique perspectives on what features might enhance the product. 4. Regulatory Changes and Compliance Requirements: Sometimes, new features are driven by changes in legal or regulatory standards within an industry, requiring the product to adapt to new laws and guidelines. 5. Technological Advancements: Innovations in technology can open up possibilities for new features. Our development team stays abreast of new tools, frameworks, and platforms that can enhance our product offerings. DECIDING WHICH FEATURES TO BUILD 1. Alignment with Business Goals: The feature must align with the overall business objectives, such as increasing market share, improving customer satisfaction, or driving revenue growth. 2. Customer Impact: We prioritize features based on the value they deliver to our customers. This involves evaluating how much a feature will improve the user experience and meet customer needs. 3. Feasibility and Cost: The technical feasibility of developing the feature, as well as the cost in terms of time and resources, are crucial considerations. We need to ensure that the benefits outweigh the costs. 4. Market Differentiation: Features that can differentiate our product in the marketplace often receive higher priority. We look for features that can give us a competitive edge. 5. ROI and Prioritization Frameworks: We often use prioritization frameworks like RICE (Reach, Impact, Confidence, and Effort) or the Cost-Adjusted Impact (CAI) model to assess and prioritize feature ideas based on their potential return on investment and impact. 6. Prototype and Validate: Before fully committing to building a feature, we often create a prototype and validate it with a segment of our user base. This testing phase is crucial to gather data on the feature's potential success or failure.

Here’s how we approach this balance at Barracuda, taking inspiration from Cagan’s principles: 1. Deep Customer Understanding: We prioritize deep customer insights through continuous interaction and feedback. Understanding customer needs and pain points helps us identify features that will not only retain customers but also attract new ones because they address real problems effectively. 2. Focus on Value Creation: We invest in features that provide significant value to our customers, which naturally aids in retention. Simultaneously, we also look for opportunities where innovation can create a competitive edge. This often involves leveraging technology in new ways or enhancing user experiences to distinguish our offerings from competitors. 3. Empowered Product Teams: Following Cagan’s advice, we empower our product teams to make decisions that balance short-term needs with long-term visions. Teams are encouraged to experiment and iterate, allowing us to quickly adapt to changes in customer preferences and market dynamics. 4. Strategic Resource Allocation: We strategically allocate resources to ensure that investments are made not just in scaling and optimizing existing successful features (which aids retention), but also in exploring new areas that could become significant differentiators. 5. Iterative Development and Release: By using Agile methodologies, we can iterate rapidly based on user feedback and changing market conditions. This allows us to refine our offerings continuously, which helps in maintaining a competitive stance and enhancing customer satisfaction. 6. Monitoring and Metrics: We rigorously track success metrics not only for user engagement and retention but also for how well new features are received. This dual focus helps ensure that our investments are appropriately balanced and effective in achieving both differentiation and retention.