Leading Through Product Failures: Lessons and Best Practices in Product Leadership

We strive to create products that solve real problems, support profitable businesses, and stand the test of time. However, even the most well-intentioned product managers can fall short and face the dreaded failure of their products. Countless products throughout history have met their demise due to poor decision-making and a lack of adaptability. It is crucial for product leaders to learn from these failures and avoid making the same mistakes in the future. In this article, we will explore the lessons and best practices in product leadership that can help us navigate the treacherous waters of product failure.

We strive to create products that solve real problems, support profitable businesses, and stand the test of time. However, even the most well-intentioned product managers can fall short and face the dreaded failure of their products. Countless products throughout history have met their demise due to poor decision-making and a lack of adaptability. It is crucial for product leaders to learn from these failures and avoid making the same mistakes in the future. In this article, we will explore the lessons and best practices in product leadership that can help us navigate the treacherous waters of product failure.

1. ICQ: Feature Bloat

ICQ, an early messenger tool similar to AOL's Instant Messenger, experienced a swift rise and fall in popularity. At its peak, ICQ had over 100 million users, surpassing AOL's competing product. However, its success was short-lived. The downfall of ICQ can be attributed to feature bloat. The team behind ICQ was ambitious and eager to innovate, continuously releasing new features to differentiate themselves from competitors. Unfortunately, they failed to recognize that too many features can have a negative impact on the overall product. By 2001, ICQ had become bloated with features, overwhelming users with an excessive number of options and hindering the core function of the product. This technical debt ultimately led to the decline of ICQ.

Lessons Learned:

• Prioritize thoughtfully: Avoid falling into the "shiny object" trap and prioritize initiatives that align with business objectives. Say "no" when necessary and focus on initiatives that have the potential to make a significant impact.

• Consider the impact of new features: Before giving the green light to a new feature, assess its potential impact on other aspects of the product. Will it contribute to technical debt or hinder the core functionality?

• Embrace the art of killing features: Sometimes, it is necessary to cut off features that are not contributing to the overall health and core functionality of the product.

2. Blockbuster: Failure to Keep Up

Blockbuster, once America's most well-known video rental chain, faced a significant decline and eventually filed for bankruptcy in 2010. While Blockbuster had over 9,000 stores worldwide at its peak, it failed to adapt to the changing market and keep up with emerging technologies. As companies like Netflix introduced DVD rentals by mail and streaming services gained traction, Blockbuster made minimal changes to its business model. The market was evolving rapidly, but Blockbuster was slow to respond to changing demands and buying habits. As a result, customers turned to the competition, and Blockbuster lost its market share.

Lessons Learned:

• Stay informed and proactive: To thrive in a rapidly changing world, product leaders must stay aware of external factors such as emerging technologies, changing attitudes, and market trends. Stay on top of industry changes and be prepared to pivot and adapt your product roadmap.

• Embrace adaptability: Recognize that your product's journey cannot be set in stone. Be prepared to make sharp twists and turns in response to market demands and changing dynamics. Adaptability is key to survival in a competitive landscape.

3. Google Glass: Premature Arrival

Google Glass, a highly anticipated wearable device developed by Google X, failed to gain widespread adoption despite initial excitement. The smart glasses were launched to a small group of "Glass Explorers" in 2013 and released to the general public in 2014. However, society was not ready for smart glasses, and the majority of people were uncertain about their practical use. Google X focused heavily on the innovative technology behind Google Glass in their marketing efforts, but failed to demonstrate its practical applications effectively. Furthermore, the product's reputation was tarnished by concerns over privacy and security due to its built-in camera. These factors contributed to the premature demise of Google Glass.

Lessons Learned:

• Validate the problem and solution: Before diving into product development, conduct thorough market research and user testing to ensure there is a genuine need for your product and that it solves a real problem. Don't rely solely on your own perspective; seek feedback from your target customers.

• Understand your customers: Talk to the customers you want, not just the ones you have. Gather feedback from a diverse range of customers to gain a comprehensive understanding of their needs and perspectives.

"Talk to the customers you want, not just the ones you have. If you only listen to a small subset of customers, you'll only get their perspective."

4. Microsoft Zune: Too Little, Too Late

Microsoft Zune, introduced as a competitor to the Apple iPod, failed to capture a significant market share despite offering similar features and a well-designed interface. The downfall of Zune can be attributed to its late arrival and lack of innovative technology. By the time Zune was released in 2006, the iPod had already established a stronghold on the market. Without any unique features or services to differentiate itself, Zune struggled to entice iPod users to switch. In 2011, Microsoft discontinued the hardware component of Zune, and in 2012, they ceased the streaming music services.

Lessons Learned:

• Timing is crucial: Being the first to market can provide significant advantages, but being late to the party requires a unique selling proposition to stand out. If entering a saturated market, identify gaps and differentiate your product from the competition.

• Learn from predecessors: Being second or third in a market allows you to learn from the mistakes and shortcomings of those who came before you. Take advantage of the opportunity to do it better and offer something that sets you apart.

Conclusion

Product failure is an unfortunate reality in the world of product management. However, by learning from the failures of others and implementing best practices, product leaders can increase their chances of success. Prioritizing initiatives, understanding the impact of new features, staying adaptable, and being proactive in understanding customer needs are all essential elements of effective product leadership. By avoiding the pitfalls that have led to product failures in the past, product managers can navigate the ever-changing landscape and drive their products to success. Remember, failure is not the end; it is an opportunity to learn, adapt, and improve. Want to hear about some failures directly from Product leaders? Check out our Product Strategy and Leadership course.