The Time Value of Shipping and the GLEe Model: A Framework for Product Success

The Time Value of Shipping and the GLEe Model: A Framework for Product Success

In the world of product management, there are two core principles that can greatly impact the success of a product: "Shipping is a Feature" and the "Time Value of Shipping." These principles emphasize the importance of delivering value to customers in a timely manner and understanding the long-term impact of product decisions.

"The Time Value of Shipping" is a framework that builds upon the idea that you'll never be able to create a perfect product. Instead, it suggests that you should focus on learning how and when to ship your imperfect product because what truly matters is the customer's use of the product. This framework draws parallels to the concept of the time value of money, where one dollar today is worth more than one dollar tomorrow due to inflation. Similarly, delivering customer value now is worth more than delivering value later.

When it comes to shipping a product, understanding the relationship between customer expectations and the value your team builds over time is crucial. The price of the "basketball" (representing your product) is determined by your users' expectations at any given point in time. The goal is to build enough value over time to afford the basketball. However, as time progresses, customer expectations grow exponentially, while the value curve plateaus. This growth in expectations is fueled by the availability of substitute products and the longer wait time for a solution.

The longer it takes to ship a product, the more the scope of the minimum viable product (MVP) expands. There may come a point where it becomes impossible to meet customer expectations and innovate at the pace of the industry. This realization often leads to product pivots as companies move towards more attainable customer expectations.

While the concept of MVP suggests that you should ship as soon as possible, the time value of shipping challenges this notion. Sometimes, even if a product meets expectations, it may be more optimal to hold off on a launch. This is especially true when considering the network effects that come with launches. The initial marketing push may bring about significant returns, but the subsequent effects diminish over time. The best products not only satisfy customer needs but also leverage virality to delight users and drive growth.

Now let's turn our attention to the GLEe model, which provides a framework for product leaders to form a product vision that addresses criticisms and encourages long-term thinking. This model encourages teams to think big and think long-term, allowing them to invent the future and embrace an "anything is possible" attitude.

The GLEe model prompts product leaders to ask, "What's next?" and to think 3-5 years into the future. In this timeframe, most things are possible, but the model goes even further, pushing product leaders to think 10-15 years ahead. This long-term thinking enables companies to establish a hard-to-copy advantage and navigate the ever-changing landscape of the market.

Furthermore, the GLEe model emphasizes that you don't have to do everything at once. Netflix provides a great example of this as it expanded globally while leveraging personalization to connect members with movies they love, regardless of nationality. Finding a high-level product strategy that supports multiple phases of growth is rare but extremely valuable.

The GLEe model poses three key questions for product leaders to consider:

1. What is the initial product that will enable the company and product to "Get Big" over the first 3-5 years?
2. What will you "Lead?" In other words, what will be the next wave your product or company rides, similar to how Netflix embraced internet video?
3. Once your product establishes a leadership position, how can it "Expand" even further?

By answering these questions and adopting the GLEe model, product leaders can develop a clear and strategic vision that guides their product's growth and success.

In conclusion, the principles of "Shipping is a Feature" and the "Time Value of Shipping" provide valuable insights into the world of product management. By understanding the importance of delivering customer value in a timely manner and adopting a long-term mindset through frameworks like the GLEe model, product leaders can navigate the complexities of the market and build products that not only meet customer needs but also have the potential for exponential growth.

Actionable advice:

1. Prioritize shipping your product to customers and focus on delivering value as early as possible. Don't wait for perfection, as customer use of the product is what truly matters.
2. Continuously assess and adjust your product's scope to meet evolving customer expectations. Understand that the longer it takes to ship, the more challenging it becomes to satisfy customers and innovate at the pace of the industry.
3. Embrace long-term thinking and use frameworks like the GLEe model to develop a clear and strategic vision for your product's growth. Think beyond the immediate future and consider what waves your product can ride and how it can expand even further.

By incorporating these principles and taking actionable steps, product managers can set their products on a path towards success and achieve long-term sustainable growth.