What is the difference between the 3rd and 4th editions of Decode and Conquer?

Here’s the most common question I have been asked since I released Decode and Conquer, 4th edition:

Can you please tell me the difference between the two editions of the book? 

I want to buy a book that will help me best prepare for my upcoming PM interviews. My colleague recommended the book you wrote Decode & Conquer. I found multiple editions but I’m not sure which one to buy. Could you please tell me the difference?

DIFFERENCE BETWEEN THE 3RD AND 4TH EDITION

I’d be happy to tell you about the new changes in the 4th edition:

Expanded section On Strategy

I’ve rewritten the strategy section to appeal to both strategy beginners and experts.

Beginners will appreciate the detailed strategy primer. Experts will appreciate the elegant reintroduction to strategy that’s not convoluted.

I’ve also streamlined the strategy framework so that it is centered around the venerable and most popular strategy framework, the 3Cs.

I also define and explain the most important strategy terms such as:

• Opportunity cost

• Vertical integration

• Aggregation theory

Lastly, I discuss key strategic patterns including:

• Competing in emerging markets

• Competing in developing markets

• Competing in shrinking markets

• Dealing with competitors

• Strategically preserving option value

New Tradeoff Section

I’ve created two new chapters dealing with tradeoff questions like:

• Should a social media site’s videos default to autoplay or click- to-play?

• How do you decide between a display ad or a “people you might know” widget in the newsfeed?

• Should a social media site require its users to upload profile pictures when they sign up?

The first chapter discusses how to deal with tradeoff questions from a qualitative (non-numerical) perspective. And the second chapter discusses how to handle tradeoff questions from a quantitative perspective that advanced interviewers will expect.

I also illustrate an elegant way to organize your analysis, a framework I call option A vs. B:

Source: Decode & Conquer 4th Edition

Expanded section On Metrics & Execution

I’ve revamped the metrics section (Facebook calls them execution questions) to provide more guidance on how to choose a North Star metric:

Source: Decode and Conquer 4th Edition

I’ve also included the helpful TROPIC framework to help you make your way through diagnosis questions like “Daily active users went down 7% week-over-week. How would you diagnose it?”

New Market Entry Section

I’ve created a new chapter on entering new markets that includes eight factors you should consider when making a strategic decision:

1. Goal

2. Product-Market Fit

3. Market Size

4. Distribution

5. Team and Capabilities

6. Competitive Moat

7. Business Model

8. Timing

New A/B Testing Section

I also created a new section on how to approach A/B testing questions that includes a 5-step process:

Source: Decode & Conquer 4th Edition

And more changes

I also meticulously reviewed and re-wrote large sections of the book including:

• Improved visuals

• Simplified explanations

• Optimized practice questions for easier comprehension

I also updated the book to reflect the latest changes in the PM interview process with a wealth of frameworks, examples, and lessons built in. 

WHICH ONE SHOULD I GET

If you’ve been waiting to get Decode and Conquer, you should absolutely get the latest edition. Your time is too valuable to read older editions.

If you own the 1st or 2nd edition, be sure to upgrade to the latest edition. It’s been nearly 10 years since even the 2nd edition. The 4th edition will be an important addition to your bookshelf even if you’re not planning to interview. (Yes, CIRCLES and other frameworks will be invaluable on the job too.)

If you have the 3rd edition, you have a difficult decision to make. You can get by with the 3rd edition. However, I’d argue that there are so many new changes that you’ll strongly appreciate the clean, updated 4th edition text.

What is the AARM Method™?

Sometimes referred to as AARM Metrics™, the AARM Method™ is an analytical framework that defines the metrics for a product. This four letter acronym refers to acquisition, activation, retention, and monetization:

• Acquisition: Tracking customer signups for a service. The bar for signing up for a service has gotten lower and lower, thanks to the popularity of free signup and pay later “freemium” models. The typical acquisition metric to track is lazy registrations or app downloads.
• Activation: Getting users that have completed a lazy registration to register fully. For a social networking site like Google+, this may include uploading a photo or completing their profile page.
• Retention: Getting users to use the service often and behave in a way that helps the user or business. Key metrics include adding more information to their profile page, checking the news feed frequently or inviting friends to try the service.
• Monetization: Collecting revenue from users. It could include the number of people who are paying for the service or the average revenue per user (ARPU).

For more information and examples on how to use the AARM Method™ refer to Lewis C. Lin's book: Decode and Conquer.

More Kudos for PM Interview Questions & Decode and Conquer

Woo hoo! Great news from one of my half-day workshop attendees! They landed an Amazon PM internship! Read their full comments here:

I'm a first year MBA student at [West Coast University] and we met when you were on campus at the end of last year for a Product Management workshop. I got my Decode and Conquer copy signed by you after the session. I wanted to inform you that both Decode & Conquer and 150 PM Interview Questions books helped me immensely in my preparation for PM interviews, particularly since I was trying to transition from a Consulting background. I have successfully landed the Sr.PM internship role with Amazon for this Summer, and it was my target company. I would like to thank you for the content you've provided and material covered in your books! Hands down the best questions I've come across in my preparation. Thank you again, and good luck with your future work. :)

Screenshot: LinkedIn