September 13, 2024

Aligning Product Investments with Business Outcomes

Aligning Product Investments with Business Outcomes

In the world of product management, success hinges on more than just building innovative products—it’s about ensuring that those products align with broader business goals. Alex Brodsky, the founder and CEO of Iteright, has spent over two decades navigating the complexities of product strategy, leading developments that have generated significant revenue and elevated company valuations. His perspective on aligning product investments with business outcomes provides a critical lens through which product leaders can better navigate their own product journeys.

The Challenge of ROI in Technology InitiativesAccording to Brodsky, one of the most alarming realities in the product management landscape is that 90% of technology initiatives fail to achieve their desired ROI. This statistic highlights a deeper issue within many organizations: the disconnect between product development efforts and business outcomes. In software companies, where the product is the business, failing to hit these targets is not just disappointing—it’s costly.

The problem stems from the all-too-common focus on process efficiency rather than outcome alignment. Brodsky reflects on his early experiences with Agile and SAFe methodologies, where speed and output often took precedence over thoughtful alignment with strategic goals. The result? High delivery rates, but low impact on core business metrics like revenue or customer satisfaction.
The Importance of Outcome-Focused Product Leadership

Brodsky argues that true product leadership requires a shift away from process-driven metrics and toward a more holistic understanding of how product decisions impact the business. It’s not enough for teams to deliver features on time—they need to understand how those features contribute to the company’s North Star, the ultimate metric of success.

He emphasizes the importance of bridging the gap between technology and business language. Product leaders must ensure that every initiative, from ideation to deployment, directly supports the organization’s strategic objectives. This requires a deep connection between product teams and the rest of the business, with a focus on creating measurable value rather than simply ticking off tasks in a project management tool.

Synchronizing Product and Business

At Iteright, Brodsky’s product platform integrates strategic planning with impact measurement and operational execution. The goal is to foster transparency and accountability, ensuring that every product decision is tied to meaningful business outcomes. This approach reflects a broader trend in product management—one where data-driven techniques and clear alignment with business strategy are becoming essential to long-term success.

By synchronizing product decisions with business goals, teams are better positioned to deliver products that not only meet market needs but also drive significant business value. This alignment reduces the chances of wasted investments and increases the likelihood of successful outcomes, both for the product and the organization as a whole.

Conclusion

In the race to innovate, don’t lose sight of the bigger picture. Aligning product investments with business outcomes is not a luxury—it’s a necessity. By focusing on strategic alignment, product leaders can ensure that their efforts translate into real, measurable success for their organizations. It’s a shift from simply delivering features to delivering impact, and it’s the key to thriving in today’s competitive business landscape.

For more information on managing product investments to achieve business outcomes, reference Pivoting as a Way of Life