• WHAT IS PRODUCT LINE VELOCITY?
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What is Product Line Velocity?

Product Line Velocity Definition

Product line velocity is a measure of a product line’s performance.  It’s the progress over a defined time-period that a product line makes toward its O K R’s: its objectives and key results.

And the O K R’s for all product lines always relate to three dimensions: Cash Flow, Customer Satisfaction, and Competitiveness.

The velocity is the speed at which the product line’s system progresses or flows from point A (a current state) to point B (a future state) relative to the three defined O K R’s. Product Line Velocity combines the speed of movement with the direction of that movement.

Beyond Time-to-Market

Notice how this is a step beyond the older “time-to-market” metric. The past use of time-to-market entrusts that the three dimensions improve simply because some projects go faster.  To some degree, this will be true. But the time-to-market orientation does not mean each project is the best and that the full set of projects works in unison to boost the whole product line.

Product line management and oversight should work to influence and guide the product line system. And all actions and decisions should strive to push a faster velocity.

Maximizing Product Line Velocity

It’s the product line team’s job to maximize the product line’s velocity. You’ll see a product line’s performance shows as a positive or negative velocity. And you’ll see the product line’s velocity either accelerating or decelerating. Or it may be holding steady.  When the velocity is accelerating in a positive direction, it’s a strong indicator of a product line’s great performance. If, on the other hand, it’s accelerating negatively, the velocity reflects dangerously poor performance.

Product Line Velocity Parts

Let’s take a look at the cash flow contributor to get a idea about product line velocity.

A product line’s free cash flow might change from $1.25MUSD to $3.5MUSD over a six-month period. That’s $2.25MUSD over six months. In this case, the Product Line Free Cash Flow Velocity is running at $4.5MUSD per year.  Teams then calculate the full product line velocity by combining the Cash Flow Velocity with measures for Customer Satisfaction Velocity and Competitive Positioning Velocity.

If you wish learn more about Product Line Velocity, please visit these links:

  1. Product Line Flow and Maximizing Its Velocity
  2. Video – Product Line Flow
  3. Product Line Velocity: Measuring The Flow
  4. Product Line Velocity Assessment

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What is…

  1. a Product Line
  2. Product Line Management
  3. Product Lines as Systems
  4. Product Line Velocity
  5. Product Line Flow (Video)
  6. Multi-Generational Product Planning
  7. Product Line Strategy
  8. Responsive Roadmapping
  9. Understanding Product Line Pivots

 

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  • WHITEPAPER – Good Product Line Strategy MattersDecember 11, 2018 - 9:37 am

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