In product development, involving stakeholders is often seen as a given. However, simply keeping them informed is not enough. It’s crucial that stakeholders have a vested interest—what we call “skin in the game”—in the success of the product. One effective way to achieve this is by directly linking the product’s performance to their Key Performance Indicators (KPIs) and outcomes. When stakeholders realise that their own success depends on the product’s performance, they become more engaged and committed. Here’s why this approach can make a significant difference.
1. Shared Accountability and Ownership
When stakeholders have a tangible investment in the product’s success, they are more likely to share accountability. This shared ownership helps to align everyone’s focus on the same outcomes, reducing the risk of conflicting priorities. By tying their KPIs to product performance, stakeholders are more inclined to contribute meaningful input based on their domain expertise. This prevents potential roadblocks and ensures that the product not only meets market needs but also supports the organisation’s strategic objectives.
2. Building Trust and Transparency
Involving stakeholders in the product journey fosters trust and transparency. Regular updates and inclusive decision-making processes ensure that all parties are well-informed about the product’s direction and any challenges encountered. When they can see how the product impacts their KPIs, it creates a stronger alignment between their goals and the product’s success, further enhancing trust and collaborative problem-solving.
3. Better Decision-Making and Risk Mitigation
Having stakeholders actively engaged allows for more informed decision-making. When key stakeholders understand the product’s journey and the reasoning behind pivotal decisions, they are more likely to support those decisions. If their KPIs are tied to the product’s performance, they have an added incentive to identify and address potential risks early on, using their unique perspectives to help guide the team towards effective solutions.
4. Enhancing Product Relevance and Market Fit
Stakeholders often represent different facets of the business, from customer service to sales to finance. By linking product performance to their KPIs – such as customer satisfaction, sales targets, or operational efficiency – they are more motivated to ensure the product is developed with a comprehensive understanding of market needs and business objectives. This holistic view can prevent the product from deviating from its intended value proposition, thus enhancing its relevance and market fit.
5. Improving Team Morale and Engagement
When stakeholders show that they are genuinely invested in the product and that their performance is directly influenced by its success, it can have a positive impact on the product team’s morale. Knowing that their work is valued and supported at higher levels can drive team members to put in that extra effort to deliver outstanding results. This shared sense of purpose across the organisation creates a more collaborative environment, making it easier to overcome challenges together.
6. Streamlined Product Development and Faster Time to Market
Active stakeholder involvement often translates to quicker decision-making and fewer iterations, as potential issues are addressed early on. When stakeholders see the link between their KPIs and the product’s success, they are more likely to advocate for efficient processes and resource allocation. This alignment allows the team to focus on building and refining the product, leading to a more efficient development process and faster time to market.
How to Involve Stakeholders Effectively
- Early Engagement: Involve stakeholders right from the initial discovery phase. This ensures their input is considered in shaping the product vision and strategy.
- Align Product Goals with KPIs: Map out how the product’s success impacts each stakeholder’s KPIs. This could mean tying a new feature to the sales team’s conversion targets or aligning a platform upgrade with the customer support team’s efficiency metrics.
- Clear Communication: Keep stakeholders updated through regular meetings and transparent reporting on progress, challenges, and changes in direction. Use these opportunities to reinforce how the product’s performance will impact their KPIs.
- Feedback Loops: Establish mechanisms for stakeholders to provide feedback throughout the product lifecycle. This could include prototype demonstrations, user testing sessions, and regular review meetings. Incorporating their feedback can directly influence the product’s ability to meet their KPI goals.
- Shared Metrics for Success: Define success metrics that resonate with both the product team and stakeholders. This alignment helps in maintaining focus on shared goals and strengthens the connection between product outcomes and stakeholder performance.
- Celebrate Milestones Together: Acknowledge and celebrate key achievements with all stakeholders involved. This reinforces their connection to the product’s success and maintains high levels of engagement.
Conclusion
Involving stakeholders throughout the product journey is more than just a best practice – it’s a strategic approach that ensures alignment, mitigates risks, and enhances the product’s success in the market. By linking product performance to their KPIs, you create a strong incentive for them to be actively engaged, resulting in more collaborative efforts and better outcomes. This way, you not only build successful products but also strengthen the overall organisational commitment to achieving shared goals.
