Unlocking the Power of a Statement of Work: A Guide for Product Managers
As a product manager, understanding customer problems is only half the battle. Translating those problems into solutions and communicating their importance to your team is a delicate art. A statement of work (SOW) is a powerful tool that can help you bridge this gap. In this article, we’ll explore the definition, purpose, and structure of an SOW, as well as provide an example of how to use it effectively.
What is a Statement of Work?
A statement of work is an internal document that outlines a customer problem, the investment required to solve it, and the proposed solution. It’s a critical tool for product managers, as it helps to clarify the problem, quantify the investment, and communicate the solution to stakeholders.
The Purpose of a Statement of Work
A well-crafted SOW serves several purposes:
- Quantifies the investment: It provides a clear estimate of the time and resources required to solve the customer problem.
- Communicates customer problems: It summarizes the customer’s pain points and provides context for the solution.
- Aligns the team: It ensures that everyone involved in the project is on the same page, from engineers to designers to stakeholders.
The Structure of a Statement of Work
While there’s no one-size-fits-all approach to writing an SOW, a typical structure includes:
- Background: A summary of previous decisions or events that led to the customer problem.
- Problem: A clear explanation of the customer problem, including its impact and importance.
- Proposed solution: A description of the proposed solution, including alternative approaches and assumptions.
- Out of scope: A clarification of what’s not included in the solution.
- Jobs-to-be-Done (JTBD) user stories: A framework for understanding customer needs and desired outcomes.
- Proposed investment: An estimate of the resources required to implement the solution.
Example of a Statement of Work
Let’s say you’re a product manager for a social media app, and you’ve identified a need to implement two-factor authentication to improve user security. Your SOW might look like this:
Background: Our initial product launch focused on rapid growth, but we didn’t prioritize two-factor authentication. Now, customers are concerned about account security, and we need to address this issue.
Problem: Our lack of two-factor authentication exposes users to hacking risks, damaging our reputation and user trust.
Proposed solution: We’ll implement two-factor authentication using external authentication methods like Google Auth or Microsoft Authenticator.
Out of scope: We won’t consider UBI keys or random CAPTCHA as secondary measures.
JTBD user stories:
- When I log in, I want to authenticate via two-factor authentication so that I can log in safely and securely.
- When I log in, I want to use a special code/link sent to my mobile device so that I can log in safely and securely.
Proposed investment: This solution will require a “big batch” investment of 4-6 weeks, involving all six members of the engineering team.
By following this structure and example, you can create a clear and compelling SOW that drives alignment and action within your team. Remember, the goal of an SOW is to communicate the problem, solution, and investment required to solve it, ensuring that everyone is working towards the same goal.