After spending over three decades in the tech industry, I’ve seen dozens of frameworks, methodologies, and strategies come and go, as documented in various other posts on BeyondTheBacklog.com. However, for me, one framework has consistently proven its worth in my product management toolbox: The Six Paths Framework. In this quick guide, I’ll take you through this powerful strategic tool, sharing my personal experiences and insights along the way.
Introduction: Why the Six Paths Framework Matters
In product management, it’s easy to get caught up in the day-to-day grind of feature prioritization, sprint planning, and backlog grooming. But as product leaders, we need to step back and look at the bigger picture. That’s where I think the Six Paths Framework can be invaluable.
Developed by W. Chan Kim and Renée Mauborgne in their groundbreaking book “Blue Ocean Strategy,” the Six Paths Framework is a systematic approach to challenging industry assumptions and discovering new market opportunities. It’s not just another buzzword or passing trend – it’s a practical tool that can help you redefine your product strategy and create innovative solutions that set you apart from the competition.
The Six Paths Framework: An Overview
Before we dive deep into each path, let’s take a bird’s-eye view of the framework. The Six Paths are:
- Look Across Alternative Industries
- Look Across Strategic Groups Within Industries
- Look Across the Chain of Buyers
- Look Across Complementary Product and Service Offerings
- Look Across Functional or Emotional Appeal to Buyers
- Look Across Time
Each of these paths represents a different lens through which we can view our market and product opportunities. By systematically exploring these paths, we can uncover hidden opportunities and challenge the status quo in our industry.
Let’s explore each path in detail, with both real-world and theoretical examples, including some personal insights from my own product management journey.
Path 1: Look Across Alternative Industries
Understanding the Path
The first path encourages us to look beyond our immediate competitors and consider alternative industries that solve the same fundamental problem or fulfill the same basic need as our product.
My Experience
Early in my career, I was working on a web-enabled content management authoring tool for business owners without technical experience. We were so focused on competing with other web-development providers that we failed to see the bigger picture. It wasn’t until we started looking at how other industries enable non-tech-savvy users that we had our “aha” moment.
We realized that Intranet providers faced similar challenges in coordinating multiple users, resources, and content access rights. By studying their workflows and tools, we were able to incorporate innovative features that set our product apart from web-based CMS software.
Applying the Path
To apply this path to your own product strategy, ask yourself:
- What alternative industries solve the same fundamental problem as your product?
- What can you learn from their approaches?
- How can you incorporate these insights into your product to create a unique value proposition?
Path 2: Look Across Strategic Groups Within Industries
Understanding the Path
This path involves examining the different strategic groups within your industry and identifying opportunities to bridge the gap between them.
Example
For this path, lets consider a fitness app. The app initially targeted hardcore fitness enthusiasts with advanced features and detailed workout plans. However, by looking across strategic groups within the health and wellness industry, the developers identified a massive untapped market: beginners who were intimidated by complex fitness apps.
The developers created a simplified version of the app with a focus on gentle onboarding and achievable goals. This not only opened up a new market segment but also created a natural progression for users to move from the beginner-friendly version to the more advanced offering as they grew more confident in their fitness journey.
Applying the Path
Consider these questions when exploring this path:
- What are the main strategic groups in your industry?
- What factors define these groups (price, features, target audience)?
- Is there an opportunity to create value by bridging the gap between these groups?
Path 3: Look Across the Chain of Buyers
Understanding the Path
This path focuses on examining the entire chain of buyers involved in the purchasing decision, from the actual user to the person who holds the budget.
My Experience
After moving to Portland, Oregon, I joined a market research company where we were developing an enterprise software solution for data analytics in partnership with IBM Global Services. Our initial focus was solely on the end-users – the research and data analysts who would be using the tool daily. However, when we looked across the chain of buyers, we realized we were missing crucial stakeholders.
We expanded our approach to address the needs of IT departments (who were concerned about budgets and integration), finance teams (who needed to justify the ROI), and C-level executives (who wanted high-level insights without complexity). By creating features and messaging that resonated with each group in the buyer chain, we significantly increased our conversion rates and customer satisfaction.
Applying the Path
To leverage this path, ask:
- Who are all the stakeholders involved in the purchasing decision for your product?
- How do their needs and priorities differ?
- Can you create value by addressing the unmet needs of different groups in the buyer chain?
Path 4: Look Across Complementary Product and Service Offerings
Understanding the Path
This path involves considering the broader context in which your product is used and identifying complementary products or services that could enhance its value.
My Experience
When leading a team at NWEA developing an educational testing product for students in K-12, we initially focused solely on test and proctoring features. However, by looking across complementary offerings, we identified a significant pain point for our users: linking test results to educational content.
Many of our customers were using separate tools for learning content, which created friction in their workflows. By integrating lesson and learning content tied directly to a students test results, we not only increased the value of our core offering but also opened up new revenue streams through partnerships with content providers.
Applying the Path
Consider these questions:
- What other products or services do your customers use in conjunction with your product?
- Are there pain points in how these products interact?
- Can you create value by integrating complementary offerings or forming strategic partnerships?
Path 5: Look Across Functional or Emotional Appeal to Buyers
Understanding the Path
This path encourages us to reconsider whether our industry competes primarily on functional or emotional appeal and whether there’s an opportunity to shift this focus.
Example
Lets take for example a B2B software product for supply chain management. This industry was heavily focused on functional benefits – efficiency, cost savings, and data accuracy. While these were undoubtedly important, the developers realized there was an untapped emotional aspect to the buying decision.
They shifted their messaging and product development to emphasize peace of mind, reduced stress, and empowerment for supply chain managers. This emotional appeal, combined with the already strong functional benefits, helped them stand out in a crowded market and connect with their customers on a deeper level.
Applying the Path
Ask yourself:
- Does your industry primarily compete on functional or emotional appeal?
- Is there an opportunity to shift this focus or combine both aspects?
- How can you incorporate emotional elements into a functionally-focused product (or vice versa)?
Path 6: Look Across Time
Understanding the Path
The final path involves looking at trends over time and anticipating how they might shape future market needs.
My Experience
This path has been crucial in my career, particularly in the fast-moving tech industry. One example that stands out is when I was working on a novel mapping solution in Wichita Kansas in the early 2000’s. By looking across time, we anticipated the growing importance of mobile devices in the area of commercial mapping.
We persuaded our client to invest early in developing mobile interfaces for mapping, leveraging the potential of mobile GPS capabilities. This forward-thinking approach positioned our client as innovators in the market and enabled them to stay ahead of the curve as these technologies became mainstream.
Applying the Path
To leverage this path, consider:
- What trends are shaping your industry?
- How might customer needs evolve in the next 5-10 years?
- Can you create value by addressing future needs before they become apparent to the rest of the market?
Implementing the Six Paths Framework
Now that we’ve explored each path in detail, you might be wondering how to implement this framework in your own product strategy. Here are some practical steps I’ve used successfully:
- Create a Six Paths Workshop: Gather your product team and key stakeholders for a dedicated workshop. Spend time exploring each path, brainstorming ideas, and identifying potential opportunities.
- Prioritize and Validate: Not all ideas generated from the Six Paths exercise will be viable. Use techniques like the RICE framework (Reach, Impact, Confidence, Effort) to prioritize the most promising opportunities.
- Develop Hypotheses: For your top opportunities, develop clear hypotheses about the value they could create. For example, “By integrating time tracking features (Path 4), we believe we can increase user engagement by 30% and reduce churn by 15%.”
- Test and Iterate: Use lean product development principles to test your hypotheses quickly. This could involve creating MVPs, running A/B tests, or conducting user interviews.
- Monitor and Adjust: Keep track of key metrics related to your Six Paths initiatives. Be prepared to double down on successful ideas and pivot away from those that don’t gain traction.
- Make it a Habit: The Six Paths Framework isn’t a one-time exercise. Make it a regular part of your strategic planning process, revisiting it quarterly or bi-annually to ensure you’re constantly challenging assumptions and seeking new opportunities.
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Conclusion: Embracing the Six Paths Framework
As product managers, our role is not just to build features and manage backlogs. We’re responsible for steering our products towards success in an ever-changing market landscape. The Six Paths Framework provides us with a powerful tool to do just that.
By systematically exploring alternative industries, strategic groups, buyer chains, complementary offerings, functional/emotional appeals, and future trends, we can uncover hidden opportunities and create truly innovative products.
Throughout my career, the Six Paths Framework has helped me break out of conventional thinking, challenge industry norms, and drive meaningful innovation. It’s not always easy – it requires us to step out of our comfort zones and question long-held assumptions. But in my experience, the rewards are well worth the effort.
I encourage you to embrace the Six Paths mindset in your own product management journey. Use it to spark creativity, drive strategic discussions, and push the boundaries of what’s possible with your product. Remember, true innovation often lies just beyond the well-trodden path – and the Six Paths Framework can help you find it.
If you enjoyed this post on the Six Paths Framework, you may also like:
- Platform Economics: Network Effects and Multi-Sided Markets in Product Strategy
- Adopting a Moonshot Mindset – Managing Anti-Fragile Products
- Embracing Sustainability in Product Development
- The 5 P’s of Product Management: A Comprehensive Guide
- Building Strong Executive Relationships as a Product Manager
- Growth Hacking and Other Creative Launch Approaches: A Product Manager’s Guide
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