Design a build-buy-partner decision matrix
Leadership is asking whether to build a capability in-house, buy a startup, or partner with an incumbent. The team keeps re-debating the question each time. This produces a reusable matrix with scored criteria and a default decision rule so the next build-buy-partner call takes a day, not a quarter.
Core vs. Context: The Question That Actually Decides Build-Buy-Partner
The build-buy-partner debate is rarely about cost — it is about whether the capability is core (a differentiator you must own) or context (necessary but not differentiating, per Geoffrey Moore's distinction). Marty Cagan's product strategy writing notes that teams building context capabilities in-house starve the core capabilities of engineering attention, a common pattern in mature product orgs. Reforge's product strategy stack frames build-buy-partner as a resourcing question: what are we willing to fund at category-leader quality, and what are we willing to consume from others?
How the Design a build-buy-partner decision matrix Prompt Works
The prompt forces a 6-criteria scorecard with explicit weights, then applies four default decision rules based on strategic fit and time-to-market so the team does not re-debate the framework each time. The second-order effects step — talent, customer perception, competitive signal — catches considerations that cost-benefit analyses routinely miss.
When to Use It
- A major capability gap is blocking a strategic bet.
- A startup in your space is acquirable at a reasonable price.
- An incumbent is offering a partnership that would accelerate launch.
- Engineering is at capacity and leadership is asking about alternatives.
- A previous build-buy-partner call went badly and the team wants a reusable frame.
Common Pitfalls
- Debating cost first. Cost comes after the core/context call. Cheap-to-build context capabilities still starve core ones.
- Underestimating integration cost on buy. Acquisitions routinely cost 2-3x the purchase price in integration time. Score 18-month TCO, not purchase price.
- Partnering on core. A partner controlling your core capability is a hostage situation. Never partner on differentiators.
Sources
- Product Strategy Overview — Silicon Valley Product Group
- The Product Strategy Stack — Reforge
- The Product Manager — Silicon Valley Product Group
- Transformed — Silicon Valley Product Group
Sources
- Product Strategy Overview — Silicon Valley Product Group
- The Product Strategy Stack — Reforge
- The Product Manager — Silicon Valley Product Group
- Transformed — Silicon Valley Product Group
Prompt details
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