A Guide for PMs to Think More Strategically

One of the most common pieces of feedback early-career product managers hear is: “You need to think more strategically.”

But what does that actually mean?

Shipping features quickly is valuable. But without a long-term view—without a clear product strategy—you’re just checking boxes.

Product strategy is what connects vision to execution, and distinguishes a reactive roadmap from a purposeful one.

In this post, we’ll walk through what product strategy really means, and how PMs can build and apply strategic thinking in everyday work.

First: Why Strategic Thinking Matters

Product strategy isn’t just about making plans. It’s about:

• Defining what not to do

• - Prioritizing long-term outcomes over short-term noise

• - Making decisions rooted in data, context, and focus

Strategic thinking means you’re not chasing every user request or stakeholder idea. You're asking:

“What direction will create the most value in alignment with our mission?”

1. Start with Data, Not Assumptions

Great strategies are built on insights—not opinions.

To understand what matters most to users and the business, start by analyzing:

• - User behavior patterns: Which features are used, where users drop off, what devices they’re using.

• - User interviews: What users say they want vs what they actually do. Stories are often more telling than statistics.

• - Market trends: What are emerging user needs? What adjacent industries are influencing your category?

• - Internal strengths and weaknesses: Where does your team move fast? Where do you struggle? Build around your edge.

Don’t skip this. Strategy without context is just a guess.

2. Define What Success Looks Like

You can’t be strategic if you don’t know what you're optimizing for.

Most PMs default to goals like “grow revenue” or “increase engagement,” but those are outcomes—not strategies.

Instead, ask deeper questions:

• - What is our team’s mission?

• - What core user problem are we solving?

• - Where do we want the product to be in 6 months? In 3 years?

Define clear, mission-aligned objectives. Make sure your whole team understands and believes in them.

3. Prioritize with Discipline

You’ll always have more ideas than resources.

Good PMs don't just say yes to everything. They prioritize based on impact. A few useful methods:

✅ 70/20/10 Rule

• 70%: Optimize and improve core product

• 20%: New features that extend existing value

• 10%: Moonshots—big bets and innovation

✅ ROI Analysis

Evaluate ideas based on:

• Potential impact (revenue, retention, CSAT, etc.)

• Development effort required

• Strategic alignment

✅ Market-Driven Insights

What are competitors doing? What are your industry’s growth curves saying? Let market dynamics shape—but not dictate—your priorities.

Prioritization is where strategy becomes real.

4. Document and Share It

A strategy that lives only in your head—or in a slide buried in Notion—won’t survive.

Write a 2–3 page living document that includes:

• - Your product’s mission and strategic goals

• - Supporting data and user insights

• - Prioritized initiatives and why they matter

• How success will be measured

Keep it concise. Avoid fluff. And revisit it often—it should evolve.

5. Feedback and Iteration

Share your strategy early. Invite feedback. Get input from engineering, design, sales, marketing—even support.

Why?

• You’ll catch blind spots

• You’ll increase alignment and buy-in

• You’ll make smarter, more resilient decisions

Just remember: filter feedback through your strategic lens. Incorporate what strengthens the vision; don’t derail it.

Final Thoughts: Strategy is a Practice, Not a Personality

Strategic thinking isn’t something you’re born with—it’s a skill you build.

You strengthen it by:

• Asking the right questions

• Using data to back your bets

• Keeping the user and business in balance

• Saying “no” as thoughtfully as you say “yes”

In a world full of noise, the best PMs are the ones who bring clarity, focus, and direction.

And that begins with a great product strategy.