The Value of Delivering Nothing.
In the fast-paced world of product innovation and agile development, the focus often lies on delivering value through new products, features, and solutions. Influential thought leaders like Marty Cagan, Teresa Torres, and Elvin Turner have taught us the importance of creating products that truly resonate with users and solve real problems. However, there is an often overlooked – but equally critical – aspect of product management: knowing when to deliver nothing.
Sometimes, Product teams can deliver more value by saying, “No“
The Danger of Chasing Losses.
One of the most challenging aspects of product management, project management (and maybe even people management!) is overcoming the “Sunk Cost Fallacy“. This cognitive bias leads us to continue investing in a project or product simply because significant resources have already been spent, rather than evaluating its current and future value.
Imagine a scenario where a product team has spent months developing a feature that, based on real world testing and customer feedback, turns out to be less valuable than initially thought. The temptation to push forward and launch the feature anyway can be strong, because of – and driven by the desire to recoup – the time and money already invested. However, as Marty Cagan emphasizes, true product leadership requires the courage to pivot or even halt projects that no longer make sense, regardless of past investments. Continuing on a path after it is clear that it won’t lead to a positive outcome is like continuing down a road that you’ve discovered is going to someplace other than where you want to go. Of course it makes sense to turn around (or just turn!)… regardless of the time and money (and fuel) already “invested” to get to this point. The same applies to any form of “journey”.
Sometimes, it makes sense to just stop and throw everything away. This is the essence of Lean & Agile innovation. By embracing the mindset that value can be achieved by delivering nothing, we can avoid throwing good money after bad.
A notable example of this principle in action is the case of Google Wave, launched in 2009. This was an ambitious real-time communication and collaboration tool. Despite its innovative features, it failed to gain traction among users – possibly because it was way ahead of it’s time!). Google made the decision to discontinue Wave in 2010, redirecting its resources to more promising projects like Google Drive and Google Docs. This move exemplified the importance of recognising that sunk costs are already spent but future costs have to be justified against the predicted (preferably objectively, with evidence) outcomes, and refocusing efforts on more valuable initiatives.
The Danger of Dancing with HiPPOs
Another critical reason to consider delivering nothing is to avoid the influence of the HiPPO (“Highest Paid Person’s Opinion“). HiPPO-driven decisions are made not on the basis of objectivity or data, but on the basis of some senior person’s opinion. This isn’t always a CEO or Manager. Often it is someone in a ‘lead’ role at Department level or even Team level. Sometimes the HiPPO doesn’t even have the implicit authority to make such decisions but has the implicit power to influence others (both junior and senior colleagues) to make them… all based on the assumption that s/he couldn’t be wrong, given his/her background and position.
Well, HiPPOs are often wrong. Very often, in fact.
Decisions made by HiPPOs can lead to the prioritisation of features or products that do not align with customer needs or market demands. By fostering a culture where data and evidence take precedence over hierarchy, product managers can make more informed decisions.
Teresa Torres advocates for continuous discovery and validation through customer interviews and experimentation. When a product manager can confidently say, “No, this isn’t what our customers need, based on the research” they protect the organization from wasted efforts and resources. Even HiPPOs don’t like wasting time or money (although you might want to break the news privately first!). This approach not only enhances product quality but also builds trust among team members and stakeholders, as decisions are based primarily on solid evidence rather than authority.
A recent example of the pitfalls of prioritizing the HiPPO can be seen in the streaming service Quibi. Founded by industry veterans Jeffrey Katzenberg and Meg Whitman, Quibi aimed to revolutionize mobile streaming with short-form, high-production-value content (basically, a Mobile-focused variant of YouTube and TikTok). Despite more than $1.75billion (yes, billion) investment and high-profile backing, Quibi failed to gain user traction and was shut down just six months after its launch in 2020. The decision to prioritize the vision of its high-ranking founders over market data and user preferences ultimately led to its demise. According to the Wall Street Journal, “The instincts of Jeffrey Katzenberg and Meg Whitman, who headed the startup, proved wrong“.
Instincts. Not data.
The Danger of Following Fashion
The tech industry is notorious for its ever-changing trends and buzzwords. Similarly, consumer-focused product innovation is all about jumping on the latest tech-fashion bandwagon (assuming you can’t create the bandwagon, of course).
A classic example of this the rise and fall (and rise again… and fall again) of 3D television. At the beginning of the 2010s, 3D TV was touted as the next big thing in home entertainment. Manufacturers rushed to develop and release 3D TVs, despite lukewarm consumer interest and the lack of compelling content. Within a few years, it became evident that 3D TV was a passing fad, and the industry shifted focus back to more promising technologies like 4K and smart TV features. After spending huge amounts of money on Product development because it was ‘cool’, despite not actually validating whether anyone would buy it (note: there is a huge difference between “I want it” and “I would buy it”). The rapid abandonment of 3D TV underscores the importance of a strategic pause when faced with short-lived trends.
Chasing the latest fad can also lead to misguided product strategies, products that try to offer all things to all men (and women, children, dogs and cats) but end up so disconnected and confusing that many ultimately become short-lived.
While it is crucial to stay informed and adaptable, product managers must also exercise discernment in distinguishing between trends with lasting value and fleeting fashions.
Innovation thought-leader Elvin Turner, author of the highly recommended “Be Less Zombie“, highlights the importance of strategic alignment and long-term thinking in product innovation. By resisting the pressure to jump on every new trend, product managers can ensure that their efforts are aligned with the company’s vision and customer needs. This often means saying ‘no‘ to seemingly exciting projects that lack strategic fit or long-term potential.
The current trend in technology (and therefore in Product) is everything-with-AI. Products of all kinds are being launched featuring Artificial Intelligence, even where it doesn’t make any sense… except maybe for Marketing purposes. Product Managers are literally being asked “Can we put AI in that?“, often with no clear reason other than FOMO.
Regular and Objective Review
A regular and objective review of ongoing projects and product development activities is essential to determine whether they still align with the company’s goals and customer needs. This review process should be objective, honest & transparent, rooted in data, customer feedback and market analysis, allowing for timely and informed decisions. One of which might be “No”.
The success of Amazon’s approach to product development can be at least partially attributed to its willingness to say ‘no’ to projects that don’t meet rigorous standards. Jeff Bezos said, “We are stubborn on vision. We are flexible on details.” This philosophy allows Amazon to continuously evaluate its products & projects and pivot or abandon those that do not align with its long-term vision, ensuring that resources are dedicated to truly transformative initiatives.
The Value of Strategic Inaction
Ultimately, the real value of delivering nothing lies in the ability to deliver something else. It allows hard-pressed resources to be brought to focus on what truly matters. By avoiding the sunk cost fallacy, minimizing HiPPO influence, resisting passing fads, and conducting regular reviews, product managers can make strategic decisions that drive real value.
Saying “No” is not a sign of failure – it is a testament to disciplined and thoughtful product leadership.
Saying “No, because…” is a sign of professional maturity.
When companies embrace the power of delivering nothing, they open the door to more impactful innovation, efficient resource utilisation and stronger alignment with customer needs.
In the end, sometimes the best way to move forward is to know when to stop.
