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Guest Post: To Kill a Product: Why, When and How, Part 1/3

Posted in Business Topics, Enterprise Software, Guest Blogger, Organization, Product Management,Product Marketing - 24 August 2009 - 23 comments

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Note: This is the 1st of a 3 part series of articles by guest blogger Chris Brown.If you feel inspired towrite a guest post of your own, clickhere to find out how to submit it to us.

To Kill a Product, part 1: Why?

Its there somewhere, in the quarterly business review, a line item that shows a couple dozen customers,

down from a year ago, which was down from the year before. It brings in a little revenue, probably less

than a percentage point of total, but revenue being revenue, why not keep cashing the checks?

It, of course, is the Product That Wouldnt Die, its longevity no longer due to any real practical

purpose but to managements reluctance to pull the plug. But pull the plug they should. Even if costs are
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negligible (and sometimes theyre not), ineffective products divert focus and resources from core and

growth products, and ultimately dilute the overall value proposition of the business.

The role of the product manager includes performing the kill analysis thoughtful, thorough and

completely unbiased and, if necessary, making a recommendation that is best for the business.

Why the hard decision might be the right decision

Why should an organization kill a product, particularly if it generates even a small amount of incrementalrevenue? The first reason should be obvious: The product isnt profitable. But products that are clearly

bleeding money are not what were really discussing here. The harder decisions have to be made forproducts that have some revenue, some customers, have low or justifiable costs, but no long-term plan,prospects or strategic relevance.

Here are some examples of how a moribund product can have a draining, distracting effect on an

organization and its customers:

On the Product team: Product managers and analysts are required to field customer feedback,analyze market data and track KPIs for a product that most likely represents a tiny fraction of the

companys business, and takes focus off of supporting the profitable products and, more importantly,new product discovery and innovation. While the beleaguered product manager is trying to keep apast-its-prime product on life support, her competition is dreaming up the next big thing.

On Sales and Marketing: The sales team needs to be trained on a product that very few customersactually use. Often dying products are more complicated than theyre worth (hence, why theyre indecline) and therefore can require a disproportionate amount of time and knowledge to effectivelysell and support. Marketing, in addition, needs to account for these products in their collateral and

messaging, adding not only to expense, but to the clutter theyre continually tasked to cut through.

On Customer Support: The best customer support teams are fluent in all the products in yourcompanys portfolio, even those with a small number of customers. But customers of troubled

products can often fill up a Customer Supports team queue, generating a disproportionate number ofphone and email support tickets. Meanwhile, customers of more profitable products are left on holdor waiting for their email response.

On Technology: Not only can there be hard technology costs associated with supporting a product,such as server and bandwidth expenses, but also the time required to maintain both internal andexternal (e.g. customer-facing) processes. After all, if a product breaks, even one with relatively few

customers, someone has to fix it.

On customers: With customers theres a risk that the poorly performing product becomes acustomers focal point, and that its performance, presumably poor, will be used as ammunition incontract negotiations or, worse, as a proxy for all the companys products. This can present

considerable sales challenges and erode the companys reputation.

All of these distractions have associated costs, which can be harder though not impossible to quantify.If a kill decision is particularly contentious, it may be necessary to put a dollar amount on these costs,which can be calculated by multiplying the number of hours spent supporting the product by the estimated

hourly salary of the individuals doing the supporting.

The most important reason why ineffective products need to be killed, though, is because they dilute the


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2

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thisthis

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Me g

companys overall value proposition. If you can measure the total value your products deliver (and youshould), perennially poor performing products will naturally drag down the sum of that equation. Andwith that downward pressure on value come declines in employee morale, confidence in senior

management, and customer loyalty. No one wants to manage a dying product. No one wants to sell,support or, certainly, buy a dying product, either. To preserve its overall value, focus resources on coreinitiatives and customers, and maintain a vibrant workplace, a company should be willing and able toquickly put underperforming products to pasture.

- Chris Brown

Chris is vice president of product management at Apartments.com, a division of Classified Ventures, LLC.

Email him [email protected] or follow him @Brown784

Coming up in this series:

Part 2: When is it time to kill a product?Part 2 offers up six areas to keep an eye on for telltale signs. Its examining these areas that will help

product managers build the case to kill or keep a product.

Part 3: How do you kill a product?Youve made the decision to pull the plug, now follow these steps to ensure a smooth sun-setting

process.

If you enjoyed this post, please consider leaving a comment orsubscribing to the RSS feed to have future articles delivered toyour feed reader.

Related posts:

1. Guest Post: To Kill a Product: Why, When and How part 3/3

2. Guest Post: To Kill a Product: Why, When and How, Part 2/33. Guest Post: Measuring Product Management (part 1)

4. Guest Post: Measuring Product Management (part 2)5. Guest Post: Measuring Product Management (part 3)

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Tags: End of Life, EOL, Product Lifecycle

23 Responses to Guest Post: To Kill a Product: Why, When and How, Part 1/3

1. Mike Boudreaux says:

August 25, 2009 at 2:34 am 0 0 Rate This

One of the problems with quantifying associated costs is that Finance will typically factor in a costallocation when creating the products income statement. The most common method for doing thisis to take the total costs of each of the groups (Product management, Marketing and sales,Technology, Customer support) and then allocate these costs based on the weighted revenue by

product. And so, if your old decaying product has diminished sales then the allocated costs will bediminished as well even if the product is still weighing down your organization. Maybe, by luckyour allocated time will be correlated with the revenue, but probably not.

You can create your own P&L estimate based on different assumptions, but in many companies thiscan create major problems with management if you dont use consistent numbers from what theyveseen before. Even if you get buy-in and support from Finance, be ready to back up yourassumptions and bridge the gap between reported figures and your analysis.

There can also be a great deal of emotion tied to killing off products. Make sure you know thepolitical landmines and the history of your executive team. It could be that the product is the babyof your bosss bosss boss and thats how he got where he is. Also consider other stakeholders such

as a services manager who is making a killing supporting the dying product and who will want toprotect their P&L metrics.

Usually, the customers that are buying your decaying product are existing customers who cant bear

the switching costs to move to the next generation product. They might even be buying your oldjunk AND your new stuff. Before euthanizing the old junk, you should consider how to migrateyour installed base to the new stuff.

Im looking forward to reading Parts 2 and 3. This is a great topic.

Reply2. OnProductManagementsays:

August 25, 2009 at 12:00 am

0 0 Rate This

Article: To Kill a Product: Why, When, and How part 1 http://bit.ly/ZJTMX via guest blogger

@Brown784 #prodmgmt #prodmktg #tech #leadership

Reply3. Tim Grace says:


RT @onpm: Article: To Kill a Product: Why, When, and How part 1 http://bit.ly/ZJTMX via guestblogger @Brown784 great post from my boss
http://bit.ly/ZJTMXhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-4681http://twitter.com/tmgrace/status/3525301204http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=4682#respondhttp://bit.ly/ZJTMXhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-4682http://twitter.com/onpm/status/3523513295http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=3767#respondhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-3767http://bit.ly/mikeboudreauxhttp://onproductmanagement.net/tag/product-lifecycle/http://onproductmanagement.net/tag/eol/http://onproductmanagement.net/tag/end-of-life/


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Reply4. Joshua Duncan says:


RT @onpm: To Kill a Product: Why, When, and How part 1 http://bit.ly/ZJTMX via guest blogger@Brown784 #prodmgmt #prodmktg #tech #leadership

Reply5. Dov Bigio says:


Como "matar" um produto parte I http://bit.ly/3HRQ63 #prodmgmt

Reply6. imbertti says:


RT @onpm: Article: To Kill a Product: Why, When, and How part 1 http://bit.ly/ZJTMX via guestblogger @Brown784 #prodmgmt #prodmktg #tech

Reply7. Chris Brown says:

August 25, 2009 at 3:17 pm 0 0 Rate This

Tweeting my own horn: Guest blog post on why, when and how to kill a product:

http://bit.ly/ZJTMX. Thanks @onpm !

Reply8. Matt Stratton says:


RT @brown784: Tweeting my own horn: Guest blog post on why, when and how to kill a product:

http://bit.ly/ZJTMX. Thanks @onpm !

Reply

9. Robin den Buurman says:August 26, 2009 at 10:26 am 0 0 Rate This

Thanks, great article! looking forward to Part 2 and 3!

Reply

10. Olav de Swaafsays:August 26, 2009 at 7:54 am
http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-4675http://twitter.com/olavdeswaaf/status/3552586528http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=3766#respondhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-3766http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=4676#respondhttp://bit.ly/ZJTMXhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-4676http://twitter.com/mattstratton/status/3536642808http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=4677#respondhttp://bit.ly/ZJTMXhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-4677http://twitter.com/brown784/status/3536406370http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=4678#respondhttp://bit.ly/ZJTMXhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-4678http://twitter.com/imbertti/status/3526704786http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=4679#respondhttp://bit.ly/3HRQ63http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-4679http://twitter.com/dovb/status/3526017336http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=4680#respondhttp://bit.ly/ZJTMXhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-4680http://twitter.com/joshua_d/status/3525938400http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=4681#respond


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0 0 Rate This

RT @tiggero1111: Why kill a product? http://bit.ly/ZJTMX

Reply

11. Chris Brown says:


Thanks, Robin!

Mike, great points. I definitely agree that weighted costs allocations are not the way to go.Performing your own analysis may be politically perilous, but thorough, conservative, well-

documented assumptions should hold up. All you can do is put your best foot forward and hope theexecutive team appreciates the effort.

And re: the emotional ties, this is absolutely the biggest hurdle Ive seen. In Part 3 I talk about howcommunications is tantamount, and how making sure all stakeholders know the full set of decision-

making criteria that this is not a random or cold-blooded move, and that there will be tangiblebenefits will ensure a smoother sun-setting.

Chris

Reply12. To Kill a Product: Why, When and How, Part 2/3 On Product Managementsays:


[...] This post is contributed by Chris Brown, Vice President of Product Management at

Apartments.com. This the second in a three-part series that takes an in-depth look at that processand makes its own set of recommendations on why, when and how to kill a product. (Part 1 is here.)[...]

Reply

13. Dheerajsays:August 27, 2009 at 5:00 am

0 0 Rate This

Any products versions are a result of feature triages putting the must-haves in the latest version.Thus, the nice-to-have features are in the works while the sales and support teams are grappling

with all sorts of feedback and tickets. Yet another team that is busy tweaking its services is thesupport infrastructure team (hardware, security, general admin etc.).

With these variables in play, when a product / product line falters, it becomes difficult to really pin

point the cause to a failing product or failing processes. It is also difficult to say if the processes arefailing owing to the nature of the product.

Why is it difficult ? Everybody is emotionally attached to what they have done and even leadership

vision gets clouded.
http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-3763http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=3764#respondhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-3764http://onproductmanagement.net/2009/08/26/to-kill-a-product-why-when-and-how-part-23/http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=3765#respondhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-3765http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=4675#respondhttp://bit.ly/ZJTMX


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This has been one of the obstacles I have seen in the phasing out of products. While some membersof the team are able to see that the problem originated in the envisioning of the product or thatversion, belling the cat is a step that sees a lot of procrastination.

Oftentimes, sales and the product manager take a lead. These folks have to be really dispassionate.

Reply

14. deepaksays:August 27, 2009 at 11:50 am 0 0 Rate This

Some time companies kill their existing blockbuster product although they are making money andmkt captalization because their positioning of product is shifted drastically. one of the example isToyta stop their production of Qualis in india although that time Qualis is market leader and shifted

from SUV segment to Passenger Car segment.

Reply

15. Chris Brown says:August 27, 2009 at 2:07 pm 0 0 Rate This

Dheeraj,

Its an interesting challenge. You want product managers to be passionate about their products, yet Iagree they have to be able to maintain some distance. They need to be able to cast a clear, unbiased

eye on the situation.

Thats where the KPIs can be helpful. If the metrics you follow are well chosen, then theyll tell thestory pretty clearly.

Thanks for the comment!Chris

Reply

16. Pieter Gabes says:August 27, 2009 at 11:42 am

0 0 Rate This

Reading: To Kill a Product, part 1: Why? http://bit.ly/ZJTMX

Reply

17. Guest Post: To Kill a Product: Why, When and How part 3/3 On Product Managementsays:September 4, 2009 at 3:24 am 0 0 Rate This

[...] Part 1 Why?: If its generating some revenue, even a little, why kill an underperformingproduct? Because ineffective products divert focus and resources from core and growth products,and ultimately dilute the overall value proposition of the business. [...]
http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-3760http://onproductmanagement.net/2009/08/28/guest-post-to-kill-a-product-why-when-and-how-part-33/http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=4674#respondhttp://bit.ly/ZJTMXhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-4674http://twitter.com/pgabes/status/3577555008http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=3762#respondhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-3762http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=3761#respondhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-3761http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=3763#respond


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Reply18. While you were out: Top GUEST posts of the summer from ON PM On Product Management

says:

September 8, 2009 at 10:40 pm 0 0 Rate This

[...] To kill a product: Why, When, and How (3 parts, Chris Brown, VP PM at Apartments.com) [...]

Reply

19. Rich Mironov says:

January 3, 2011 at 9:12 pm 0 0 Rate This

RT @onpm: @jockbu and this old byte, http://bit.ly/8ZmpXY on EOLing a producthttp://wp.me/pXBON-Lx #prodmgmt

Reply

20. Hani Abughazaleh says:January 4, 2011 at 7:29 am 0 0 Rate This

an excellent set of articles on how to manage under-performing products http://bit.ly/erMXM9#prodmgmt via @Jim_Holland

Reply

21.Product Camps: Where Do We Go From Here? On Product Management

says:May 3, 2011 at 11:12 pm 0 0 Rate This

[...] Plan some general Q&A sessions, panels and open sessions like How to Kill a Product [...]

Reply

22. Karmic Coach says:August 19, 2011 at 12:40 pm 0 0 Rate This

In light of HP's WebOS announcement, this- http://t.co/9zSN27d seems really timely. I cant help

but wonder why http://t.co/8wNc8Y0

Reply

23. Michael Maretzke says:

December 2, 2011 at 8:01 am 0 0 Rate This

Ever asekd yourself when to sunset product features? > To Kill a Product: Why, When and Howhttp://t.co/dycvybK8
http://t.co/dycvybK8http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-38205http://twitter.com/mmaretzke/status/142513618175537152http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=32705#respondhttp://t.co/9zSN27dhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-32705http://twitter.com/karmic_coach/status/104533168828329984http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=28578#respondhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-28578http://onproductmanagement.net/2011/05/03/product-camps-where-do-we-go-from-here/http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=18377#respondhttp://bit.ly/erMXM9http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-18377http://twitter.com/haniag/status/22192840788414464http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=18222#respondhttp://wp.me/pXBON-Lxhttp://bit.ly/8ZmpXYhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-18222http://twitter.com/richmironov/status/22037605596004353http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=3759#respondhttp://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/comment-page-1/#comment-3759http://onproductmanagement.net/2009/09/08/while-you-were-out-top-guest-posts-of-the-summer-from-on-pm/http://onproductmanagement.net/2009/08/24/to-kill-a-product-why-when-and-how-part-13/?replytocom=3760#respond


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