How to Conduct Portfolio Profitability Analysis (Part 2: Product Lines)

Your features and products deserve to be groomed as much as your backlog does

Our 🔒Strategic Product Execution series helps product leaders efficiently plan and convert strategy into action and outcomes. One post at a time.

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Welcome to Part 2 of our strategic product management post on How to Conduct Portfolio Profitability Analysis. In this deep dive, we present to you two parts:

• Customer / Account Segmentation (posted here)

• Product-Line Profitability Analysis ← this post

Let’s dive in!

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What does a Product Portfolio look like across organisations?

A product portfolio refers to the collection of products or services offered by a company. It's like a curated line-up of what your organisations brings to the market to solve your target customer’s evolving needs and problems.

The product portfolio should be linked to product strategy and often shaped through carefully planned steps in your Roadmap. The portfolio should achieve specific business goals, cater to different market segments, and adapt to changes in the business environment.

Executing a product portfolio involves making decisions about which products to develop, enhance, or retire based on many factors, such as:

• Market demand

• Changing market dynamics

• Competitive pressures

• Internal resistance to change

• Complex organizational structure

In this post, we break down the complex task of Product Portfolio Profitability Analysis into 5 steps, with a Google Sheet template to help you along the way.

Let’s begin.

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5 Steps to Reviewing your Portfolio: