Framework for thinking about value

Everyone talks about value, but few can actually define it. I really enjoy the framework that Joshua Arnold at Black Swan Farming promotes, which helps make this concept more tangible. When we look at the activities we can do in our business, we should be asking ourselves, “Does this:” 1. Increase revenue? 2. Protect revenue? 3. Reduce costs? or 4. Avoid costs? It could also be a combination of two of these! You can use this model to repeatedly assess how each team and initiative contributes to company goals. Startups tend to focus on growth at all costs. But as companies mature, they need to balance growth with sustainability. That means constantly asking: Is this helping us make money, or save it? And how do we know? As product people, we tend to get hyperfocused on leading indicators - like NPS and usage. We have to remember these are only predictions of the overall value that will result in that usage or delight. Customer delight protects revenue or increases revenue, by preventing churn or leading to upsells, referrals, etc. Delivering on customer value leads to business value. Using this framework requires a shift in mindset from outputs to outcomes - it doesn’t matter how many features you ship, what matters is the value they create. This echoes the principles I've discussed in the past: align your product strategy with business outcomes. This is how you escape the Build Trap of producing features without understanding their impact on business goals. When teams think in terms of Joshua's value buckets, they can make better decisions. They prioritize more clearly. And they stay out of the Build Trap. Next time you're scoping a project or feature, ask yourself: Which value bucket does it fill? How does it align with our strategic goals? How are you ensuring your teams are aligned with this approach? I'd love to hear your thoughts. | 31 comments on LinkedIn