Product Scorecard
- tags
- Marty Cagan
Summary #
jak: list of relevant KPIs
- How does your CEO know that every product manager’s efforts are aligned with his business strategy?
- How does your CEO clearly communicate to your product managers the business priorities?
- How does your CEO know which product managers are making good decisions and making true progress in carrying out the business strategy?
A “Product Scorecard” is the term Marty Cagan personally like for establishing the Key Performance Indicators (KPI) that each Product Manager, and the overall product organization, uses to make decisions and drive products.
Now, the specific KPI is not the real point here as much as the fact of establishing specific KPI’s, and the fact that they’re prioritized. You can and should debate the specifics of each KPI and its priority, to ensure that you are encouraging the right behavior as you interpret the business strategy.
Example #
Suppose you’re the product manager responsible for the high-volume seller solutions for an e-commerce marketplace. Depending on your company, you could have different business strategies, but let’s suppose that the company gets the majority of its revenues from these sellers, and they’re key to growing the business. Your product scorecard might look something like this:
- Average revenue/seller – because we want to encourage sellers to sell more goods
- Average promotional revenue/listing – because we want to encourage sellers to promote their listings as aggressively as possible
- Absolute number of high-volume sellers – because we want to grow the number of high-volume sellers
- NPS of high-volume sellers – because we want the sellers to consider ours their preferred marketplace