Product validation is crucial for SaaS founders, but following industry best practices blindly can be detrimental. Conduct robust user research, prioritize ruthlessly, foster agility, avoid sunk cost fallacy, and monitor outcomes to drive product success.
Product validation is no longer a luxury; it's an essential aspect of product strategy, particularly for Series A and B2B SaaS founders and CEOs. While conventional wisdom dictates adherence to industry best practices, my experience has shown that following these practices blindly can lead you astray.
Industry best practices are guidelines distilled from numerous success stories across various companies. They can provide a helpful starting point, a blueprint if you will, for building a product or structuring a strategy. But herein lies the hidden danger: adopting these practices without sufficient scrutiny can result in strategies that are ill-suited to your unique circumstances.
Best practices, by definition, are generalized solutions. They are crafted in a context that may be vastly different from your own. When founders adopt these practices without tailoring them to their specific needs, they may find themselves struggling to fit a square peg into a round hole. This gap can come at the cost of innovation, responsiveness, and ultimately, the success of the product.
Consider the practice of relying heavily on a fixed roadmap, which is common in many organizations. Such roadmaps communicate false certainty: they imply that these are the optimal features to build, even though their impact may significantly deviate from expectations. A more flexible approach, such as managing by outcomes, allows for better adaptation to changing user needs and market conditions.
Each company, product, and market demographic is distinct. What worked for one company in its specific ecosystem may not necessarily translate well to another. An often-cited pitfall is copying the feature sets of competitors without understanding the underlying logic of why those features were successful in a different context. This approach can lead to feature bloat, where the product becomes cumbersome and less user-friendly, ultimately eroding its value proposition.
Best practices are often perceived as foolproof strategies that guarantee success. However, the reality is different. Many of these practices stem from unique sets of circumstances, including the market environment, company culture, leadership style, and even sheer luck. When such practices are mythologized, they can create complacency and discourage critical thinking, leading to poor strategic decisions.
A noteworthy example here is the adoption of Agile and Scrum frameworks. While these methodologies have proven immensely successful for many development teams, they are not without their challenges. Many teams have discovered that short sprints and frequent customer feedback sessions can sometimes lead to burnout and hinder sustainability. Thus, while Agile principles are valuable, they must be adapted to fit the dynamics and capacity of the team.
"Success is the prize for those who stand true to their ideas." - John S. Hinds

Take the case of a B2B SaaS company specializing in enterprise-level HR software. Initially, they rigorously followed best practices in customer feedback loops: engaging with key customers, conducting detailed surveys, and iterating rapidly based on this feedback. However, they soon realized that these processes skewed heavily towards the needs of their largest clients, thereby neglecting the broader customer base. This led to a suite of features tailored to a few but largely ignored by many.
By stepping back and re-evaluating their feedback strategy, they found a better balance between customer input and visionary product design. They diversified their feedback sources to include smaller clients and potential customers, which helped in creating a more balanced product that appealed to a wider audience.
Detailed user research is non-negotiable. This involves not just understanding what users say they want, but also observing their behavior, identifying pain points, and uncovering unarticulated needs. Conducting ethnographic studies, usability tests, and journey mapping can provide a more nuanced understanding of user needs and behaviors.
Not all features are created equal. Use frameworks like RICE (Reach, Impact, Confidence, and Effort) or the Kano Model to prioritize features that will have the most significant impact on your business goals. Remember, more features do not necessarily mean a better product; they are the right features that count.
Develop iteratively and validate each step. This could involve A/B testing, beta launches, or rolling out features to a small subset of users first. By iterating in small cycles, you can test assumptions quickly, learn from failures without exorbitant costs, and adapt your strategy as required.
Encourage a culture of agility and continuous learning within your organization. This means not just adopting Agile or Lean methodologies, but truly embracing the mindset that comes with them. Teams should feel empowered to experiment, fail fast, and pivot based on insights gained. Learning should be seen as a central pillar of your organization's innovation strategy.
"Get a good idea and stay with it. Dog it, and stay with it until it's done right." - Walt Disney

One common pitfall in following best practices is adhering to a decided course of action, even when it is clearly failing, for fear of abandoning the investment already made. Recognize the sunk cost fallacy and be willing to pivot when necessary. The sooner you course-correct, the less resource drain you'll experience.
Instead of fixed roadmaps, focus on outcomes. Define KPIs that matter to your business and continuously track these metrics. Use tools and dashboards to keep these metrics visible and ensure that every team member understands how their work impacts these outcomes. Managing by outcomes, rather than outputs, provides room for creative and optimum problem-solving approaches.
The allure of industry best practices is undeniable, but so are their risks when applied uncritically. Series A and B2B SaaS founders and CEOs must navigate these waters with caution and discernment. While best practices offer a valuable starting point, it's crucial to adapt them to your unique business context, continuously validate them against real-world data, and remain agile in your strategic approach.
Remember, best practices in product strategy aren't about following a rigid set of rules. It's about being flexible, responsive, and innovative in meeting your users' needs and achieving your business goals. By adopting a balanced approach that leverages industry insights while remaining tailored to your unique circumstances, you stand the best chance of navigating the complex landscape of product management successfully.