A PM's guide to smarter ROI decisions

Let me share something I’ve noticed several times throughout my career, something that only recently clicked for me as a pattern. It’s about competing opportunities and the challenge of deciding how to invest our time and resources to maximize outcomes, whether for the next month, quarter, or the year ahead.

Here’s the thing: as product managers, we often create a false choice and debate the wrong issue, short-term results versus long-term value. I’ve wrestled with this for years, and I’ve come to realize that the real skill isn’t just picking one over the other. It’s about deeply understanding the ROI and broader implications of both.

The problem with how we think about ROI

We’ve all been taught to focus on outcomes over output. Success is defined by numbers going up and to the right: more users, more revenue, more features shipped. But blindly chasing this mindset can be a huge mistake.

Some types of ROI are difficult to see and even harder to measure using frameworks like RICE. For example, how do you evaluate the branding and UX impact of adding dark mode? Or decide whether to prioritize features that exist solely to secure your next funding round?

Let’s be honest, these aren’t ideal scenarios, but they’re often the reality handed down by leadership. “Build this tiny feature, and something magical will happen.” I’ve heard this pitch countless times in interviews. We build what someone assumes will have a big impact without requiring proof or validation.

New features often feel more exciting and are easier to sell internally and externally. But what if the highest ROI lies in fixing a half-baked feature from two years ago that 60% of customers use regularly?

The truth is, some of the most valuable work won’t show up in next quarter’s metrics. But we still need to create space for uncovering opportunities that deliver long-term ROI. How do we do that?

Simple questions to uncover the best opportunities

After seeing too many teams struggle with these decisions, I developed a straightforward approach. It’s based on using decision tree templates (see here), thinking about opportunities as part of a spectrum (more here), and asking a few key questions to evaluate both immediate and long-term impact.

Start with immediate impact

• What problem are we solving right now?
• Who benefits in the next few weeks, and how?
• Which metrics will improve?

Then, consider the long-term view

• Are we solving a long-term problem, or is this just about short-term impact?
• How will this decision affect our ability to improve the product later?
• Can we reverse course if things don’t go as planned?
• Does this align with where we want to be in three years?
• How will this influence our brand and positioning?

By weighing both perspectives, we often end up prioritizing entirely different opportunities. Decisions become less reactive and more grounded in the bigger picture.

A better approach to ROI decisions

Even if you’re in the middle of the quarter and everything seems clear, building a few habits now will prepare you for your next prioritization session:

1. Write Down and Visualize Assumptions
   Document both short-term and long-term impacts. Make your assumptions clear and explicit.
2. Regularly Review Outcomes
   Set up recurring reviews with stakeholders to check whether your decisions are delivering the expected value.
3. Create Space for Strategic Thinking
   In every planning session, separate urgent tasks from long-term strategic improvements.

Most importantly, avoid the trap of thinking you must choose between short-term wins and long-term health. The best product leaders don’t settle for one, they deliver both. They ensure today’s work solves immediate problems in a way that supports sustainable growth and future success.

Final thoughts

This article is rooted in real experiences from building and scaling products across industries. The lessons might seem simple, but they’re often the hardest to practice consistently.

Start small. Build habits. Be intentional. The payoff? Better decisions, stronger outcomes, and a more resilient product in the long run.

Start small. Build habits. Be intentional. The payoff? Better decisions, stronger outcomes, and a more resilient product in the long run.