Horizon Planning

A proven strategy for managing your product portfolio for the near and long term

Pragmatic Marketing

Dave Zasada SVP Product Management, ACT

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Horizon Planning

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about us

Experts in technology product management and product marketing

Specialize in training

Trained hundreds of thousands of people at thousands of companies since 1993

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Dave Zasada

presenter

SVP of Product Management at ACT Responsible for the design, implementation and leadership of product management/marketing teams and strategy. Over 25 years of product management and marketing experience across multiple categories including technology, education, toys, and more where he has been responsible for the development and management of over 1,000 products.

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Agenda  What is Horizon Planning?  Overview  Managing Resources  Defining Performance Metrics  Horizon Team Guidance  Horizon Planning Rules

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 Aligning Talent

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Question: How do you place bets on today AND tomorrow?

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“Don’t borrow from the future to pay for today” - Brad Smith, Intuit CEO

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What is Horizon Planning? Tool that cultivates a product portfolio by breaking down offerings & investments into 3 stages Horizon Two

Horizon Three

Extend & Defend the Core

Profitably Scale Emerging Offerings

Develop Viable Concepts

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Horizon One

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Horizon Planning Overview Horizon Planning is based on a key set of principles:  Manage Resources  Define Performance Metrics  Align Talent

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Horizon Planning supports the user-centered design process in validating:  Desirability  Feasibility  Viability

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Horizon Planning is a systemic approach to continuous innovation in every stage:  Incremental (Horizon One)  Competitive Differentiation (Horizon Two)  Transformative (Horizon Three)

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Horizon Planning Drives Business Outcomes H3

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H1

Business Outcomes

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Investing in a new future

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Running out of steam

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Generating ideas but no material new products Failing to see the future

Sustained growth

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H2

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Managing Resources

Time

Money

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People

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Managing Resources: poll

Our organization strikes the right balance between investing in our core products and developing a pipeline of new products: A) Strongly Agree B) Agree C) Disagree D) Strongly Disagree 12

Managing Resources Horizon One

Horizon Two

Budget Allocation: 60%

Budget Allocation: 30%

Budget Allocation: 10%

Budget Allocation: 70%

Budget Allocation: 20%

Budget Allocation: 10%

Horizon Three

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Aligning Talent: poll

I believe my (or my team’s) greatest strength is: A) Generating and validating new concepts B) Fixing underperforming products C) Ongoing management of mature products

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Aligning Talent Horizon One

Horizon Two

Horizon Three

Transformer

Starter

 Process oriented  Likes really big teams  Works within and supports established process

 Strategic & analytical  Comfortable with complexity  Works within system but pushes

 Innovative & entrepreneurial  Comfortable with ambiguity  Finds creative ways around rules that slow them down

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Optimizer

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Define Performance Metrics: poll

The performance metrics we use today are unique for each stage of our products’ lifecycles: A) Strongly Agree B) Agree C) Disagree D) Strongly Disagree 16

Define Performance Metrics Horizon One

 Ability to profitably scale  Customer and revenue growth  Sustainable business model  Validate desirability vs. the competition

Horizon Three

 Validate desirability (loyalty metrics)    

Meet customer need Customer willing to purchase Customer actively uses Customer willing to recommend

 Validate feasibility & viability

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 Continuous incremental innovation  Deliver profitable revenue growth  Market share gains

Horizon Two

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Horizon Three Guidance

• Small Team • Limited Resources

• Celebrate Failure “I have not failed. I’ve just found 10,000 ways that won’t work”

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• Identify Market Problem • Create Multiple Concepts • Rapid Experimentation

- Thomas Edison

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Horizon Two Guidance

• Small Collaborative Team

• Discipline To Shut It Down

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• Identify Underperforming Products • Question Everything • Profitably Scale

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Horizon One Guidance

• Really Big Teams

• Incremental Innovation • Reinvest Profit into Horizon Two & Three

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• Market Research • Competitor Research

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Horizon Planning Rules 1. When placing bets on today and tomorrow it is not a “versus” it is an “and” 2. Don’t borrow from the future to pay for today 3. Put people in a position that makes their heart beat fast 1. Get the metrics right by not measuring every product the same way

1. To get one great idea you need lots of them 2. Maximize rate of learning by minimizing time & cost to try new ideas 1. Fall in love with the problem, not the solution 1. Make things people want vs. make people want things 2. Question everything

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2. Innovation occurs in every horizon, not in a separate lab

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Questions?

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Rebecca Kalogeris

contact

[email protected] @pragmaticmktg

Dave Zasada [email protected]

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Thank You for attending! Join us for next month’s webinar:

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