Closing the Product-Business Gap
Navigating Recession: Strategies for Product Leaders
Recession times demand tough decisions for businesses. Massive layoffs and budget cuts are common, with product and technology teams often at the center of these measures. What can product leaders do to protect their teams and demonstrate the value of their initiatives?
Product development carries a high cost for organizations, and its return on investment (ROI) is not always clear. Some initiatives stall due to lack of resources or time, while others take months or even years to deliver financial results. Furthermore, the disconnect between product and business teams often makes estimating ROI an even greater challenge. How can we bridge this gap and turn product management into a central pillar of growth?
With limited resources and the end of "free money," product teams must maximize their impact with fewer resources. If you’re a product leader, consider these recommended practices:
Segment the portfolio: Divide projects into three categories: safe improvements, strategic projects, and innovative bets. This way, you can balance the risks of new developments and ensure short- and medium-term results.
Connect product and business: Promote regular meetings with investors and stakeholders to share goals, priorities, and key metrics. Highlight business metrics such as retention, net margin, or recurring product revenue.
Prioritize based on impact: Use tools like the RICE framework (Reach, Impact, Confidence, Effort) to prioritize projects with the highest potential return. Setting clear time and resource limits for each initiative also fosters quick and focused decision-making.
In recession times, leading product teams requires a value-focused approach. Connecting product and business, optimizing resources, and emphasizing business metrics can help you turn economic challenges into growth opportunities.