Strategic Area
Overview
It can be tempting to jump straight into small units of deliverable value (known as Minimum Valuable Increments in the framework). Although releasing value early and often is desirable, having no clear strategy can be very wasteful. The Strategic Area is designed to give a medium-term view.
Company KPI
You may be trying to reduce the customer acquisition cost or simply increase recurring revenue. Linking this strategy to a KPI makes your priority explicitly clear.
Problem statement
Using the problem statement format
The problem of [description]
Affects [persona]
The impact is [ideally quantified]
The problem that this solves. This should be based on research rather than assumption. If this change is customer-focused, then the problem statement should reflect what customers are experiencing rather than what people assume they are experiencing. In other words, don’t assume someone has a major issue, you should go and check.
The impact of the problem is very important, and this should ideally be quantified. Quantification is a good indicator for the strength of evidence you have.
Objectives and Key Results
Using the OKR format
Objective - a single sentence
Key Result - From [X] to [Y] by [Z] date
The objective should be an easy-to-understand sentence
Key Results can be “committed” where outcomes are guaranteed or “stretched” if they cannot be
Investment period
If estimates are possible, then use these. The strategy usually requires testing and learning to achieve the expected outcomes (OKRs). Where this is the case, you have an investment period to be clear on how much time you are prepared to spend on this before re-evaluating.
MVI backlog
A backlog of work items that the delivery teams will work on. These MVIs are released independently, and the order of them can change based on feedback.
Target persona
The type of person or company that you are targeting with this strategy. This is typically your current Ideal Customer Profile as defined in the Product Positioning stage.
SaaS feature pricing
The positioning of the feature as an add-on, in the base pricing tier or higher price tiers