Dinker Charak's Blog, page 4

Conway’s Law: How Organizations Design Systems

Introduction

In 1968, computer programmer Melvin Conway made an observation that has since become known as Conway’s Law. It states that “organizations which design systems… are constrained to produce designs which are copies of the communication structures of these organizations.” In other words, the way that a company is structured will inevitably shape the way that its products and systems are designed.

The Relationship Between Structure and Design

Conway’s Law is based on the idea that communication is the key to effective design. When teams are siloed and don’t communicate well with each other, it becomes difficult to create a cohesive product. For example, if the design team is separated from the development team, there may be miscommunications about what is possible to build, leading to a design that is not feasible. On the other hand, companies that prioritize collaboration and open communication between teams tend to produce more successful products.

Applying Conway’s Law to Modern Organizations

In the digital age, Conway’s Law has become more relevant than ever before. With the rise of remote work and distributed teams, it’s important for organizations to be intentional about how they structure their teams and facilitate communication. One approach is to create cross-functional teams that include members from different departments, such as design, development, and marketing. This can help ensure that everyone is on the same page and working towards the same goals. Another strategy is to invest in tools and technologies that facilitate collaboration, such as project management software and video conferencing tools.

Conclusion

Conway’s Law may be over 50 years old, but its insights are still relevant today. By understanding how organizational structure impacts design, companies can better position themselves for success. By prioritizing communication, collaboration, and cross-functional teams, organizations can create products and systems that are not only effective, but also reflect their values and culture.

 

Written in collaboration with Generative AI tech using Notion.so. Cover art generated using creately.com.

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Introduction to Sunk Cost Fallacy

Introduction

The sunk cost fallacy is a cognitive bias that occurs when people make decisions based on the resources (such as time, money, or effort) they have already invested in a project or decision, rather than based on the potential outcome of that project or decision. The sunk cost fallacy occurs when people continue to invest in a project or decision, even when it is no longer rational to do so, simply because they have already invested resources in it.

Example

For example, imagine a company that has invested a large amount of money in a new product development project. Despite evidence suggesting that the product is unlikely to succeed in the market, the company continues to invest more money and resources into the project, simply because they have already invested so much.

This is an example of the sunk cost fallacy because the company is making decisions based on the resources they have already invested, rather than on the potential success or failure of the project. The resources that have already been invested are considered “sunk costs,” which are costs that cannot be recovered regardless of whether the project succeeds or fails.

Conclusion

The sunk cost fallacy can lead to poor decision-making and can result in the waste of valuable resources. To avoid this fallacy, it’s important to make decisions based on the potential outcome of a project or decision, rather than based on the resources that have already been invested.

 

Written in collaboration with Generative AI tech using Notion.so. Cover art generated using MidJourney.com.

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Introduction to OKR: Objectives and Key Results

Introduction

When it comes to achieving goals, it can be challenging to measure progress and identify areas for improvement. That’s where Objectives and Key Results (OKR) come into play. OKR is a popular goal-setting framework that has been adopted by many successful companies, including Google, LinkedIn, and Twitter. It is a simple, yet effective way to set measurable goals and track progress towards achieving them.

What are Objectives and Key Results?

Objectives and Key Results are two important components of the OKR framework. The objective is the goal you want to achieve, while the key results are the specific, measurable outcomes that will indicate progress towards that goal. Objectives are typically set on a quarterly basis, and they should be ambitious, inspiring, and achievable. Key results, on the other hand, should be specific, measurable, and time-bound. They should also be challenging but attainable.

How to Implement OKR

Implementing the OKR framework requires commitment and discipline from everyone involved. Here are the basic steps to implementing OKR in your organization:

1. Set Company Objectives: Start by setting company-wide objectives, which should be aligned with your overall mission and vision. These objectives should be challenging but achievable and should inspire everyone to work towards them.

2. Define Department Objectives: Once company objectives have been set, each department should define their own objectives that align with the company’s objectives. These objectives should be specific, measurable, and challenging but achievable.

3. Create Key Results: For each objective, define specific key results that will indicate progress towards achieving the objective. These key results should be measurable and time-bound.

4. Review and Update: Review progress towards objectives and key results on a regular basis. This will help you identify areas where you need to improve and adjust your strategy accordingly.

Benefits of OKR

The OKR framework offers several benefits to organizations that use it. These benefits include:

1. Clarity: OKR provides clarity on what needs to be achieved and how progress will be measured.

2. Alignment: OKR helps align everyone in the organization towards a common goal.

3. Focus: OKR helps teams to focus on what’s important and avoid distractions.

4. Accountability: OKR creates a sense of accountability, as everyone is responsible for achieving their objectives and key results.

Conclusion

OKR is a simple, yet effective goal-setting framework that can help organizations achieve their objectives more effectively. By setting ambitious, inspiring, and achievable objectives and defining specific, measurable key results, organizations can track progress towards their goals and make adjustments as necessary. The benefits of OKR include clarity, alignment, focus, and accountability. If you’re looking for a way to improve goal-setting and achieve better results, consider implementing OKR in your organization.

Written in collaboration with Generative AI tech using Notion.ai

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Rubrics Based Feature Prioritization

1. Ground Rules1.1 Prep

The Rubrics Based Approach for feature prioritisation expects that you already have a list of features. While using the Rubric, sometimes other aspects are brought to light. These are some aspects you have overlooked or ignored. Feel free to consider them and add features related to them.

1.2 Keep Features at the Same Level of Granularity

The term Product Feature often lends itself to some ambiguity. There might be some confusion on how fine-grained a feature should be for this rubric. My recommendation is to keep them at the same but high level of granularity.

2. Building the Rubrics2.1 Step 1: Decide on the Product Feature Categories

Most Product Features belong to one of the following categories. As you read through them, you may realise there are one or two that I have missed. That is OK. Arriving at this list is the first step. The categories are:

Marketing Differentiating: These are the set of features that differentiate your product in the market, especially for the users and promoters.

Pricing Differentiating: These are the set of features that a customer will pay extra for or make your product cheaper.

Note: There is a subtle difference between market and pricing differentiation. The market differentiation helps your product to stand out so the customer picks your product over other similar ones. However, if you want the customer to pay a little extra, the pricing differentiators kick in.��

“Our toothpaste has salt in it,” is a market differentiator. “Our toothpaste tube is 100% biodegradable” is a pricing differentiator for a responsible buyer.

Product Adoption: These are the set of features that ensure there is least resistance path to adoption, recommendation and invitations to other users.

Cost Reduction: These are the set of features that reduce the cost of building, maintaining and evolving a product.

Product Org Check-Boxing: These are the set of features that the organization want to be part of the products they produce. typically, these tend to cross-promotion of other products, features that ensure smooth interoperability between products that are part of the same suite, etc.

Check-Boxing: These are the set of features that tend to not so very useful and common ask when selling to Enterprises. These are features that do not bring a lot of value to users. These tend to be needed for passing eligible paperwork or to not stand out as having few / missing features as compared to the competition.

Hygiene: These are the set of features that are the ‘cost of running a business’. These will include say, Sign-up / Sign-In, Profile management, delete the account and other features that are essential, non-differentiating and present across all other products in the domain.

2.2 Step 2: Assigning Importance Score to Product Feature Categories

Not all of the above categories may be applicable to your product at the stage it is and that is OK. The rubric will help you incorporate that into the prioritization process.

First, ensure you are aware of the answers to the following questions:

Do you know the goal of your product? Is market differentiation one of those goals? Is being premium or cheaper than the competition a goal? Is viral spread or fast adoption such a goal?Do you know the goal of the organization?Do you know the goal of your customers?Do you know the goal of your users?

Based on the above, you should be able to assign a score to the Product Feature Categories. The following set of examples assign a score from 1-5.

A startup that is focused on market penetration:

Marketing Differentiating5Pricing Differentiating2Product Adoption5Cost Reduction2Product Org Check-Boxing1Check-Boxing1Hygiene3

An Enterprise Software company:

Marketing Differentiation3Pricing Differentiation4Product Adoption5Cost Reduction5Product Org Check-Boxing1Check-Boxing4Hygiene32.3 Step 3: Assigning Importance Score to Product Feature within the Category

Now that you have assigned importance to the product category, you need to assign importance to a feature over others within that category. Usually, the following works:

Critical5High3Medium2Low13. Calculating the Score & Prioritization

Consider this simple approach:

The product of the category score and the feature’s score is the score. Eg: for the enterprise software company we considered above:

Feature A that brings Pricing Differentiation (score 4) and is deemed high (score 3) will have a score of 12.

Feature B that brings Pricing Differentiation (score 4) and is deemed medium (score 2) will have a score of 8.

Feature C that brings Product Adoption (score 5) and is deemed medium (score 2) will have a score of 10.

So the prioritization will be:

A, C and then B.

4. Get the Sample Google Sheet

This one includes formulas to get you going immediately:

Feature Prioritization Rubrics (Google Sheet)

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Let us see where it goes (009) – Dysfunctional Metrics & Recommendations – Podcast

A technologist and a product manager talk about:
��� Dysfunctional metrics and a recommended approach

Chapters:
00:00 The Ninth podcast
05:13 On transformation
07:34 On velocity
18:25 Goodhart’s Law
19:15 Hawthorne effect
20:04 No OKR, No Metrics
20:16 Metrics Lead to Trade-offs
29:04 On Burn-Up and Burn-Down
32:08 On Cycle Time
34:26 Recommendations
35:25 DORA 4 Key Metrics of DevOps
36:08 + 3 Key Metrics of Excellence
36:08 + 4 Key Categories of Business Outcomes
43:56 Juxtapoistioning Tech and Business Metrics
45:51 Line-of-sight from Tech and Business Metrics is Complex in Enterprises
53:34 Future topics
56:17 Vanity Metrics Again

Notes & Mentions:
��� We use the term ProMa as short for Product Management
��� Sachin on how dysfunctional metrics kill agile transformations: https://www.thoughtworks.com/en-in/insights/blog/dysfunctional-metrics-kill-agile-transformations-0
��� Charles Goodhart (whose 1975 article led to the adage of Goodhart Law)
��� Jason Fried (Founder, CEO of 37signals): https://medium.com/@jasonfried/no-okrs-no-metrics-b79cd1753c06
��� Henry A. Landsberger (coined Hawthorne effect)
��� Thomas Sowell (stated ‘No solutions, only trade-offs’)
��� LUSWIG Episode 008 for Business Outcome: https://www.youtube.com/watch?v=BjDgGMWBaVw&t=2070s

About:
��� Views expressed are our own and do not necessarily reflect that of our employer
��� Dinker Charak: https://www.linkedin.com/in/dinkercharak – https://www.ddiinnxx.com – https://notionpress.com/read/proma
��� Sachin Dharmapurikar: https://www.linkedin.com/in/dharmapurikar

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A Product Manager’s Guide to Go-To-Market (GTM) Strategy

A go-to-market (GTM) strategy is a plan that details how an organization can engage with customers to convince them to buy their product or service and to gain a competitive advantage. A GTM strategy includes tactics related to pricing, sales and channels, the buying journey, new product or service launches, product rebranding or product introduction to a new market.
– Gartner

In the Product Management Canvas, I have a whole section on GTM. It is a very important part of Product Management. So here is a guide on developing a GTM for your product. This guide aims to help a Product Manager provide holistic clarity on various aspects of a GTM strategy. While the execution will involve multiple departments in an organisation, the clarity and base collateral come from the Product Manager.

The Baker’s Dozen of Go-To-Market (GTM) StrategyAspectWhatWhySuggested Collateral1.Clarity on PurposeThe “Why” of the product so all are clear about it and can communicate the sameDifferent departments work have their own processes and partners. In order to avoid distortion of the purpose, it is important to have a singular understanding of the purposeIdea Canvas and/or Product Management Canvas2.Clarity on AudienceThe customer segmentThe positioning, pricing and message differ from one segment to another. Thus it is important to have clarity on the customer segment and its characteristicsProduct Management Canvas3.Clarity on OutcomeThe success and failure metricsHow is the ideal outcome measured and at what point do you call for a pivot/closureMeasure of Success, Zone of Struggle and Measure of Failure4.Clarity on PricingFor the release, for the customer segment and to achieve the outcome the pricing is a key leverPrice is a very sensitive attribute of the product and all departments should be aware of the pricing policyPricing Tables5.Clarity on Purchase ProcessWhich all ways can a customer purchase the productTo ensure the channels are up and experience near-zero downtime. The purchasing process should be as frictionless as possibleProcess Flow Diagrams6.Clarity on Content & MessagesRight from an Elevator Pitch, to the website to the marketing campaign landing page, the content and the message they convey should be clear, purpose-driven and uniformTo ensure that customers are targeted with a simple message on how the product will solve their problemsElevator Pitch7.Clarity on ScheduleThe release date, schedule of launch-related marketing campaigns, introductory offers and other such key datesThis allows development teams to release on time, plan for surges in traffic and all departments to be aware of key dates to plan aroundA Calendar of Events8.Clarity on Team ActionsAlong with the schedule, key tasks for each departmentA well-orchestrated go-to-market needs a well-coordinated launch teamAction Plan9.Clarity on Possible IssuesFAQ, list of known issues, hacks / overrides and key contactsSo that the Support team has answers to expected questions and knows who to contact for unexpected questionsFAQs & Support Training Plans10.Clarity on Marketing ChannelsWhat campaigns on what channels are bring plannedSo the team is aware of campaigns, especially digital ones so that the leads and traffic are effectively capturedMarketing Calendars11.Clarity on Social ChannelsWhat social media channels are being used for active interactionsSocial Media channels where the intended audience participates and thus all teams members can actively participate in commenting and resharingSuggested Posts and Media12.Clarity on “Others”List of competitors and positioning of product viz-a-viz their strengths and weaknessSo the team is aware of the competition and how to position the strengths of the product against the competitions’Competition Analysis and Objection Handling FAQ13.Clarity on Product CentalThe single place to go for all information about the productSo the team does not have to search for information when neededGoogle Drive or an Internal WebpageConclusion

GTM is an important event and the entire organization being fully prepared is important. This preparation starts with the Product Manager preparing the groundwork that all departments can build upon, based on their focus areas.

Cover pic by Andy Wright

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Let us see where it goes (008) – Software Metrics – Podcast

A technologist and a product manager talk about:
��� Metrics, ones to care about and ones to stay away from

Chapters:
00:00 The Eights podcast
01:42 Output Metrics
07:53 Outcome Metrics
08:42 DORA’s DevOps 4KM
11:52 Business Outcome Metrics
22:21 Outcome Metrics During Pre-Prod Stage
26:30 Meta / Derived Metrics
28:14 Building Better Business Cases for IT Investments (See Below)
34:30 4 Key Metrics Categories for Business Outcomes
38:04 Why Vanity Metrics Matter
48:54 Future topics
51:14 A Digression on “RAG” (Red, Amber, Green)

Notes & Mentions:
��� We use the term ProMa as short for Product Management
��� Martin Fowler on measuring productivity: https://martinfowler.com/bliki/CannotMeasureProductivity.html
��� Sachin on how dysfunctional metrics kill agile transformations: https://www.thoughtworks.com/en-in/insights/blog/dysfunctional-metrics-kill-agile-transformations-0
��� Making Numbers Count by Chip Health: https://amzn.to/3arfnPR
��� Ward, John; Daniel, Elizabeth; and Peppard, Joe (2008) “Building Better Business Cases for IT Investments,” MIS Quarterly Executive: Vol. 7 : Iss. 1 , Article 3. Available at: https://aisel.aisnet.org/misqe/vol7/iss1/3

About:
��� Views expressed are our own and do not necessarily reflect that of our employer
��� Dinker Charak: https://www.linkedin.com/in/dinkercharak – https://www.ddiinnxx.com – https://notionpress.com/read/proma
��� Sachin Dharmapurikar: https://www.linkedin.com/in/dharmapurikar

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Let us see where it goes (007) – #lifeMetrics – Podcast

A technologist and a product manager talk about:
��� #lifeMetrics

Chapters:
00:00 The Seventh podcast
10:50 Sachin’s Life Metric #1
16:20 The Bookseller in Nehru Place, Delhi
18:55 Dinker’s Life Metric #1
20:10 Sachin’s Life Metric #2
25:45 Dinker’s Life Metric #2
29:40 Sachin’s Life Metric #3
39:05 Dinker’s Life Metric #3
47:34 Future topics

Notes & Mentions:
��� We use the term ProMa as short for Product Management
��� Iconic Atlas Cycles (https://www.thebetterindia.com/247725/atlas-cycles-made-in-india-atma-nirbhar-brand-childhood-nostalgia-gop94/)
��� Dinker’s book on Product Management (https://notionpress.com/read/proma)

About:
��� Views expressed are our own and do not necessarily reflect that of our employer
��� Dinker Charak: https://www.linkedin.com/in/dinkercharak – https://www.ddiinnxx.com – https://notionpress.com/read/proma
��� Sachin Dharmapurikar: https://www.linkedin.com/in/dharmapurikar

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Let us see where it goes (006) – Cost of Product Management – Podcast

In this podcast a technologist and a product manager talk about:
��� Cost of Product Management
��� Frugal Product Management
��� Early Stage Experimentation

Chapters:
00:00 The sixth podcast
00:21 Intro
01:12 I am Agile
02:51 Our First-Ever Guest
04:27 Product-Management-as-a-cost Mindset
06:07 Never Too Early to Bring in a ProMa
09:48 Frugal Product Management
13:58 Percentage is the Biggest Enemy of an Early Stage Product
16:23 Sachin Loses His Thread
19:17 Early Stage Feedback Loop
22:32 Product Management is Akin to Watching Paint Dry
26:16 Dinker Has Recently Watched Now You See Me
28:58 An Approach to Product Management
31:27 On Experiments and Product Decision Records
36:06 Getting Going with Experiments
40:55 Matrix of Metrics & Experiments
44:47 Focus on Focus Group
47:17 Sachin Clarifies His Question
56:25 On Gut Feel
58:51 Future Topics

Notes & Mentions:
��� We use the term ProMa as short for Product Management
��� Product Decision Records: https://www.ddiinnxx.com/product-decision-records/
��� Now You See Me & the Sequel: https://www.imdb.com/title/tt1670345/ and https://www.imdb.com/title/tt3110958/

About:
��� Views expressed are our own and do not necessarily reflect that of our employer
��� Dinker Charak: https://www.linkedin.com/in/dinkercharak – https://www.ddiinnxx.com – https://notionpress.com/read/proma
��� Sachin Dharmapurikar: https://www.linkedin.com/in/dharmapurikar

 

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Let us see where it goes (005) – Technologist Aligning to Business – Podcast

In this podcast a technologist and a product manager talk about:
��� Technologist’s alignment to business

Chapters:
00:00 The fifth podcast
01:23 On being a Technologist
02:46 Full-stack developers
06:15 Alignment in startups
8:33 CX and EX
9:50 On being a Technologist
25:55 Making the shift: #1 Talk to the business folks
29:25 Making the shift: #2 Know where the money comes from
31:52 Making the shift: #3 Learn from other functions within an org
34:40 Challenge for Enterprises – Losing staff to Tech Companies
42:58 Enterprises are fighting back
47:06 Behaviors than just skills
49:41 Future topics

Notes & Mentions:
��� We use the term ProMa as short for Product Management
��� Office Space – https://www.imdb.com/title/tt0151804/
��� Ace Ventura – https://www.imdb.com/title/tt0109040/
��� The Matrix – https://www.imdb.com/title/tt0133093/
��� Nerdy from Jurassic Park – https://www.imdb.com/title/tt0107290/characters/nm0001431
��� Field of Dreams – https://www.imdb.com/title/tt0097351/

About:
��� Views expressed are our own and do not necessarily reflect that of our employer
��� Dinker Charak: https://www.linkedin.com/in/dinkercharak – https://www.ddiinnxx.com – https://notionpress.com/read/proma
��� Sachin Dharmapurikar: https://www.linkedin.com/in/dharmapurikar

 

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