Last time, you learned the typical ways portcos are currently trying to tackle product value creation in 2022 and why Private Equity involvement is a must!
Following this, readers asked excellent questions about the results product value creation delivers.
Let’s not forget, that most tech programmes waste time and don’t deliver value.
Here is a short, true story that you might recognise from working with your portco tech leaders.
PortCo A found its growth strategy under threat with platform outrages and customer complaints.
They had recently developed a new Multi-tenant SaaS platform and were deep into alpha testing. But, something wasn’t right; customer incidents, complaints and outages snowballed, their product team was continually firefighting.
At peak, they had received 100+ platform incidents a week, with churn reaching 20% in only three months!
Their teams’ solution; keep responding to incidents and release code changes faster
The fix forward approach.
A big challenge for Portco A was convincing the teams to invest their time out of the day-to-day long enough to address these challenges head-on.
(If you haven’t read ‘The Phoenix Project, you’ll probably enjoy it; it’s all about this. )
They needed a plan focused on understanding, organising and resolving these incidents
The best PE firms run QVCMs, in this case, it showed that the current method for classifying incidents didn’t provide the level of detail their teams needed.
We guided them in designing a simple method for extracting, analysing and categorising this incident data based on the TVC framework. And helped them to implement the finding and facilitate triaging of the incidents found, this data was presented to product teams twice daily.
As a result, their teams found five common areas where the incidents originated and were able to fix the root cause.
In 3 months, incidents were reduced by 300% and 17 cost-overspending areas were identified, creating around $20m of additional value.
A simple process, a small mentality change, a big upside.
Most firms are seeing at least a $0.5 – $1M tech value creation windfall per portco per product theme in 90 days or less.
Does that sound like it’s worth taking action on?
Keep leading; it matters.
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