Photo by Isaac Smith on Unsplash
Photo by Microsoft 365 on Unsplash
Part 3: The 5 P's of Operations Management, Product
This blog is the third in a 5-part series where I’m breaking down the 5 P’s of Operations Management.
In case you missed part one and two they are linked in the list above.
Remember, hire and retain great people so that they are able to create and run great processes.
If you do, then you can empower them to take ownership of the processes and execute them as if they are the business owner.
Once your people are empowered to make and run great processes they will have the ability to create and iterate your products for success.
The Product “P”
I’m sure that you would all agree that understanding the "Product" component of Operations Management is essential for delivering quality offerings, staying competitive, and achieving success.
However, if we are not careful. We will start working so hard in the business developing our products that we lose sight of why we’ve created the products and who we are trying to serve.
Sometimes, we can even try to be so efficient that our products can lose their effectiveness and even their purpose.
This may cause our business to become short-sighted and offer products that are more convenient for us but not what our customers actually want.
For Example
When I started building my business a year ago I created a plan for my business with multiple products that I could offer before I really determined what would best serve my target niche.
Now after hundreds of meetings with small business owners I have been able to determine the two best ways to serve them.
- Fractional Chief Operations Officer: to take on direct management reports off of the business owner to oversee and lead daily operations with their management team.
- Management Training Program: to help the key leaders take ownership of the business operations so the owner can do more of what they do best to grow the business.
Both options allow small business owners to keep their budgets low and still be able to grow their business, while stepping out of the “weeds” of daily operations. Just at two different levels.
Since I started listening, and continue to listen to the needs of my audience, I can serve small business owners the best way possible and create a sustainable business.
Now I want to answer 5 common questions related to product management to help ensure that you can create great products to serve your customers the best you can for years to come.
5 Common Product Management Questions
- How Do We Create Great Products?
As I outlined previously, don’t take for granted that you know the needs of your target audience.
Whether you are developing a new product or iterating an existing one, you need to listen to your audience. Really understand what they are looking for, to make sure that it lines up with what you are planning to develop.
Set up feedback surveys, focus groups for new products or schedule periodic check-in calls with your existing clients of your current products.
Then, take the time you need to properly handle any compliance issues and patents to safeguard your new products from anything that could cause it to fail or be replicated.
Next, run some test groups and gain feedback. Not only will this give you great feedback to make changes but it will also give you great testimonials if it is a hit!
Lastly, do your cost research to ensure that you are being competitive, but give great value so that you don’t alienate our target niche. Then, you guessed it, set up a core process to regularly assess and adjust pricing for each product as needed.
- How Can We Align Product Strategy with Business Goals?
If you follow my business example and step #1, listening to your target audience, then you can be confident that the product will meet the financial goals of the company because it is meeting the needs of your ideal customer.
You will also be confident that it is fulfilling your business’ mission and help you accomplish your vision.
In other words, serve and solve and you will have a thriving business.
- How Can We Ensure Product Quality?
This is where we build off of the Process “P” of operations management.
Build out a customer service core process to gain customer feedback from your clients once the product is purchased and during the entire customer journey.
Set up a communication workflow for every Customer Service Representative (CSR) to follow once the client is on-boarded.
Use a mix of email, phone calls, text messages, App push notifications (If applicable), 15-min virtual meetings, and even mailed letters depending on the preference of the customer.
This will ensure that your client feels supported and empowered to give feedback in their preferred method of communication. The goal is to offer as much value as possible so that they truly feel like partners with you and not just another customer.
- How Can We Innovate and Stay Competitive?
For small businesses this can be another core process for the CSRs.
However, if the company is a manufacturing plant or is a medium sized business, or larger, then this would call for a Research & Development department (R&D)
In addition, set the expectation for a culture of innovation as the life-blood of your business in your communication. Then invest in R&D, so that it is possible to stay attuned to market trends and maintain the competitive edge that you need.
Creating a culture of innovation will also help you with Product Lifecycle Management (PLM).
If you set up great core processes for quality control and innovation you will become more effective with your PLM strategies.You will be able to maximize product value and profitability as long as it is needed.
- How Do We Plan for Product Obsolescence and Retirement?
If you can put great R&D, CSR, and PLM core processes in place then you will be confident when it’s time to retire a product.
Develop core processes that work well for your company to phase out old products and transition customers smoothly to your new ones.
The key here is providing proper lead time for your customers to be informed, ask questions, and be comfortable with the phase out process.
How you handle changes like this, especially with SaaS, IT and manufacturing companies, could determine your next product's success or failure.
If you have products that are deeply ingrained in your customers core processes then a change could deeply impact their business.
So, if a product is not retired properly and the client is not on-boarded successfully to the new product then you could lose the customer.
How is your Business Doing with the Product “P”?
Depending on the size of your business and the complexity of your products this can seem like a daunting task.
Make no mistake, you can’t rush excellence.
However, if you have great people, who can make and run great processes, then you will make great products efficiently and effectively and be able to answer these 5 questions with confidence.
- How Do We Create Great Products?
- How Can We Align Product Strategy with Business Goals?
- How Can We Ensure Product Quality?
- How Can We Innovate and Stay Competitive?
- How Do We Plan for Product Obsolescence and Retirement?
As a result, you will make informed decisions that will accomplish your Mission and Vision, and hit your financial goals to sustain your business for years to come!
Enjoy the Process!
Grow more. Risk Less
Ways I Can Help you Grow More & Risk Less
- Invest in your key leaders to grow your business with the 3P Boot Camp
- Business Owners Join the Strategic Growth Forum to Grow your Business
- Schedule a FREE Strategy Session
- CoAdvantage helps business owners handle tasks like payroll and HR, giving them more time to grow their business. Contact Me today for an introductory meeting.
