Product leaders often feel they must present a perfect, unassailable plan to executives. However, the goal should be to start a discussion. Presenting an idea as an educated guess allows for a collaborative debate where you can gather more information and adjust the strategy based on leadership's feedback.
Product managers often fail to get ideas funded because they speak about user needs and features, while executives focus on business growth and strategic bets. To succeed, PMs must translate user value into financial impact and business outcomes, effectively speaking the language of leadership.
A maps feature with 3x user engagement was repeatedly ignored by Nextdoor's leadership. It was only prioritized after the product team translated that engagement into concrete financial terms: millions of dollars in potential sponsorship and advertising revenue. This demonstrates that financial impact outweighs user metrics for executive buy-in.
To bridge the communication gap with leadership, reframe common product metrics into financial terms. Instead of reporting daily active users (DAU), calculate and present average revenue per daily active user (ARPA-DAU). Similarly, frame quality initiatives not as ticket reduction but as operating expense (OPEX) savings.
A simple but powerful framework for any product initiative requires answering four questions: 1) What is it? 2) Why does it matter (financially)? 3) How much will it cost (including hiring and ops)? 4) When do I get it? This forces teams to think through the full business impact, not just the user value.
When COVID-19 invalidated its revenue plan, Nextdoor's GM used a pre-existing worst-case scenario to pivot the product strategy. The focus shifted from subscriptions to features that provided immediate cash flow to local businesses (e.g., gift cards), enabling a quick, board-aligned response to the crisis.