Manage what matters.
“When the product is wrong, nothing else matters. When the product is right, everything else matters.”
Recently, I reconnected with an old client, a seasoned CMO with experience in multiple publicly traded companies. During our conversation, he shared this unforgettable quote.
In 2024, this might sound like a contemporary critique from Silicon Valley's startup scene, perhaps an iconic founder at a TED Talk. But it's not. This insightful gem comes from Les Wexner, the founder of The Limited, which evolved into Limited Brands, encompassing Victoria's Secret, Abercrombie & Fitch, Inc., Express and Bath & Body Works.
What's remarkable about this phrase is its enduring relevance. It's a universal business truth, transcending technological advancements and the rush to innovate.
When the product is wrong.
If you've been in an early-stage organization, you're familiar with the struggle of a product that doesn't resonate or sell as expected. In these moments, nothing else seems to matter. The entire focus shifts to resolving the product-market fit (PMF) problem.
When this happens, it's a time for cross-functional teamwork, engaging with customers, gathering insights, and refining roadmaps. When the product is wrong, it's not just a product issue; it's a company-wide challenge that demands a unified response.
It is very hard to succeed if you don’t offer something people want. For your offering to resonate, it must be functional, competitively priced and solve a real problem. It should be easy to understand and relate to, and it must be both scalable and supportable to meet growing demands.
We'll explore these crucial elements in more detail in a future post. But for now, let's shift our focus to…
When the product is right.
Conversely, experiencing an organization that has found or is finding PMF is exhilarating. Everything feels more manageable, smoother and up-and-to-the-right. But PMF alone isn't sufficient. As Wexner said, “When the product is right, everything else matters.” These are the necessary components to manage and maintain company value:
Product: What you offer; must solve a real problem.
Market: Overall demand; the audience you serve.
Model: How you operate and generate revenue.
Channel: Pathways for delivery; sales and distribution.
Each of these components combine to form your company story at any given time. Your story says more than what you do; it conveys why you do it - your mission, vision and motivation.
Each of these fits are crucial and interdependent. Success in one area can bolster and is reliant on success in others. Building a significant and successful company requires a harmonious alignment of these key elements:
Product-Market Fit: Being in a good market with a product that can satisfy that market.
Product-Channel Fit: Ensuring the product suits the chosen sales and distribution channels.
Product-Model Fit: Aligning the product with a viable business model.
Model-Market Fit: Tailoring the business model to market demands.
Model-Channel Fit: Synchronizing the business model with delivery channels.
Channel-Market Fit: Matching distribution channels to the target market.
Story-Market Fit: Synchronizing your brand story with your evolving product and market.
Understanding and attacking product-market fit is just the start. True success lies in the intricate balance of aligning all facets of your business - product, market, model, and channels. And, using your story to unify and amplify them all.
Remember Les Wexner's timeless wisdom. It's not just about having the right product; it's about ensuring that every aspect of your business resonates with that product's journey and the market's evolving needs.
