The 5 Biggest Risks of Product Governance in 2020
by Talene Pittaway
As we experience a paradigm shifting year in product governance, organisations are considering how they can better handle the biggest emerging product governance risks and prepare an effective response.
Here's a review of the biggest risks in product governance in 2020. Highlighted are the focus points for product teams and professionals and what is required to prepare for the future.
Are you prepared?
1. Product Portfolio Risk
COVID has highlighted the importance of having a lean portfolio mix for cash-flow. Simplification of large product variants and portfolios is now just as important as launching new products. Chief Product Officers will be better placed to recovery with a defined framework to triage portfolios and divest of underperforming products.
2. Non-financial Product Risk
Chief Product Officers and digital product managers now have a significant role to play in product oversight and retooling a business to align on emerging product risk. Product teams regularly review financial metrics and this now needs to be paired with regular reviews of operational and non-financial risks across product lifecycle. Areas to monitor are technology disruption, modern slavery and climate related risks. Teams will need to undertake product audits and set triggers levels that indicate emerging non-financial risks.
3. Outdated Review Framework
Businesses that do not adopt a 90 day product review mindset will quickly face increased risks with market longevity. Consumers expect seamless, digital experiences and this combined with market competition and disruption means product teams need a new way to lead and evolve their products. The traditional and widely used product lifecycle management framework was developed in 1960s. As technology evolved and regulatory obligations changed, the framework no longer had the required impact. The new approach – digital product management and disciplined product governance will move to 90 day planning approach with continuous improvement.
Having best practice product risk management means product and risk teams will set 90 days plans and complete weekly reviews – to look forward and assess emerging risks.
4. Incorrect Product Monitoring
Product management works best with seamless collaboration with cross-functional teams in business – risk, marketing, sales, design, engineering. Unfortunately, current product managements systems either focus on project development of new agile development or leave you with manual processes for post-launch product oversight.
5. End-To-End Product Management
In traditional project based product management, product teams have limited scope and just focus on planning and designing new product for launch before handover to operational teams.
In emerging approaches to lifecycle governance, the customer journey is streamlined to create value-added features to a target market. The stages covered for end-to-end product teams include:
- Product planning
- Developing new products or features
- Introducing new products effectively
- Developing Go-to-market strategies
- Managing lifecycle of new and existing products
- Product oversight for strong governance.
The Skyjed product lifecycle management and governance platform provides organisations with a 360-degree view of their product portfolios health and risk status while facilitating collaboration, transparency and product trust in the day to day operations of the organisation.