Getting Alignment and Approvals in the Agile Product Portfolio with the Product Concept Document

The Product Concept Document (PCD) is used by larger companies with significant product portfolios to get product/project funding approvals, cross-organizational alignment, and guidance from leadership and key stakeholders.

The PCD serves as an initial blueprint for a new product, describing the customer need, business objectives, value proposition, high-level features, and market considerations. The PCD describes why the product is being created and how it aligns with the organization's goals. The PCD is used by the organization to review and approve material product investment and resource allocation needs and opportunities.

The PCD is focused on the why and high-level what. It provides the appropriate depth and breadth of information for business leaders to make decisions to approve/disapprove allocation of budget/resources. It also provides the right depth and breadth of information for technical leaders to provide guidance and recommendations on system architecture and feasibility to the team that is presenting the PCD. Lastly, the PCD aligns organizational leaders and stakeholders around product vision and concept.

PCDs are created when a new or modified product or service requires a material investment. A material investment is one that requires a substantial commitment of resources and has the potential to significantly influence the organization's performance, risk profile, or strategic trajectory. Organizations review and approve PCDs according to their product portfolio governance process. They may also be presented and reviewed on demand to respond to important business needs or events. A PCD is not required for new or modified products when they can be implemented without materially impacting the organization's performance, risk profile, or strategic trajectory. This allows departments and teams to operate with appropriate levels of autonomy.

The level of detail in a Product Concept Document (PCD) should strike a balance between providing enough information to guide decision-making and remaining flexible enough to allow for changes and iterations. The PCD is six or fewer pages (excluding appendices). The intention is that that document could be read and discussed in a one hour meeting.

The goal of a PCD review meeting is to either approve a product proposal or to seek guidance from leadership and key stakeholders. Review participants may vary but should include those with budgetary ownership and organizational leaders and stakeholders who are dependent on the solution or who may offer unique insights and guidance. Formality will vary based on an organization’s governance and product portfolio management processes, and whether it's an early review whose purpose is to solicit feedback and guidance.