What is CIRCLES Framework? A Must-Know Method for Product Managers

Great product managers don’t rely on random ideas—they use structured methods to solve problems effectively. One such approach is the CIRCLES Framework, created by Lewis C. Lin. This step-by-step method helps product managers tackle design challenges, prioritize features, and make user-focused decisions with clarity and confidence. Whether in interviews or real-world projects, the CIRCLES Framework provides a clear path to breaking down complex product questions and finding the best solutions.

What is CIRCLES Framework? It’s a step-by-step approach developed by Lewis C. Lin to help product managers and designers tackle problems in a structured way. By following this framework, professionals can break down challenges, analyze user needs, brainstorm solutions, and evaluate trade-offs with confidence.

Whether you’re preparing for a product management interview or working on a real-world project, understanding the CIRCLES Framework can make your decisions more strategic and user-focused. In this guide, we’ll explore each step in detail and show you how to apply it effectively.

What is the CIRCLES Framework?

The CIRCLES Framework is a simple method that helps product managers solve problems step by step. It was created by Lewis C. Lin, a product management expert. The framework gives a clear way to think about product design challenges and make better decisions.

Product managers and designers use this framework because it helps them stay organized. Instead of guessing solutions, they follow a process to understand the problem, figure out what users need, and choose the best ideas. It’s also very helpful in PM interviews, where clear and structured answers are important.

The best thing about the CIRCLES Framework is that it focuses on users. It helps teams make products that solve real problems instead of just adding random features. By following this method, product managers can make smarter choices and create products that people actually need.

Why Use the CIRCLES Method?

The CIRCLES Method helps product managers solve problems in an organized way. Instead of guessing, they follow clear steps to understand the problem, think of ideas, and choose the best solution. This makes it easier to make smart decisions and focus on what really matters.

This method is also very useful for PM interviews. Many companies ask product managers to solve design problems during interviews. Using CIRCLES helps them give clear and structured answers. It also helps in feature planning and design, making sure teams work on the most important things first.

Another big reason to use CIRCLES is better teamwork and communication. When everyone follows the same process, it is easier to talk about ideas and make decisions. Teams can work together better and focus on solving real user problems.

Step-by-Step Breakdown of the CIRCLES Framework

1. Comprehend the Situation

The first step is to understand the problem clearly. Before thinking about solutions, a product manager needs to define what the challenge is. Is it about improving an app? Fixing a user complaint? Adding a new feature?

Next, it’s important to understand the business goals. Every company has goals, like increasing sales, getting more users, or improving customer satisfaction. The product should help achieve these goals.

There are also constraints to consider. Constraints are limitations like budget, time, or technical issues. For example, if a company has only three months to launch a feature, the solution must fit within that time.

2. Identify the Customer

A great product must solve a real user problem. That’s why the next step is to identify who the customer is.

This means asking questions like:

• Who will use this product?
• What are their needs and habits?
• What problems do they face?

A good way to understand users is to create user personas. A user persona is a simple profile of a typical customer. For example, if the product is a food delivery app, a persona might be:
“Emma, 25, a busy student who orders food late at night because she has no time to cook.”

Personas help product managers think from the user’s perspective and make better decisions.

3. Report Customer Needs

Once the users are identified, the next step is to find out their needs. What do users struggle with? What are they expecting from the product?

A product manager can learn this by:

• Reading customer reviews
• Doing surveys and interviews
• Looking at app usage data

For example, if many people complain that food delivery takes too long, their need is faster delivery. If users say they can’t track their order, their need is a better tracking system.

After collecting this information, product managers must turn these needs into clear goals. These goals will shape the design and drive the product development process.

4. Cut, Through Prioritization

Not all problems can be solved at once. That’s why product managers prioritize—they decide which issues to fix first.

One way to do this is by asking:

• Which problems affect users the most?
• Which issues impact the business the most?
• What can be fixed quickly with good results?

To make prioritization easier, product managers use different methods like:

• Impact vs. Effort: Focus on tasks that have high impact but require low effort.
• RICE: (Reach, Impact, Confidence, Effort) Helps rank features based on their value.
• MoSCoW: (Must have, Should have, Could have, Won’t have) Helps decide which features are essential.

By focusing on the most important problems first, teams can deliver real value to users.

5. List Possible Solutions

Now it’s time to brainstorm solutions. A good product manager doesn’t just choose one idea—they explore many possibilities.

Different ways to generate ideas include:

• Looking at competitors—How do other companies solve similar problems?
• Asking team members—Designers, engineers, and marketers all have unique perspectives.
• Thinking outside the box—Sometimes, creative ideas lead to the best solutions.

For example, if the problem is long delivery times, possible solutions could be:

1. More delivery drivers
2. AI to predict orders and prepare food faster
3. A premium service for faster delivery

Having many options allows the team to pick the best one.

6. Evaluate Trade-offs

Every solution has pros and cons. Before making a final decision, a product manager must analyze trade-offs.

This means thinking about:

• Cost: Is it too expensive to build?
• Feasibility: Can the team actually create this solution?
• User experience: Will this make the product easier or harder to use?

For example, hiring more delivery drivers might be expensive but solves the problem fast. AI predictions could work well but might take too long to build.

By looking at trade-offs, product managers choose the best option for both the company and the users.

7. Summarize Recommendations

The final step is to present a clear solution. A product manager must explain:

1. What problem they are solving
2. Why this solution is the best choice
3. What steps come next

For example, if the decision is to use AI for faster food preparation, the recommendation might look like this:

• Problem: Orders take too long.
• Solution: AI to predict popular meals and start cooking them early.
• Next steps: Work with engineers to build a test version in one city.

A well-structured recommendation helps teams take action quickly and move forward with confidence.

Example of the CIRCLES Method in Action: Improving Duolingo

Let’s explore how the CIRCLES Method can be applied to enhance Duolingo, a popular language learning app known for its gamified approach to education.

1. Comprehend the Situation

Define the Core Problem or Design Challenge:

Duolingo has noticed that while many users start learning a new language, a significant number discontinue their lessons after a few weeks. The challenge is to identify why users lose interest and how to improve user retention.

Understand Business Goals, Product Objectives, and Constraints:

• Business Goals: Increase user retention to boost ad revenue and subscription conversions.
  
• Product Objectives: Enhance the learning experience to keep users engaged over longer periods.
  
• Constraints: Limited development resources and the need to maintain the app’s free accessibility.
  

2. Identify the Customer

Define the Target User (Demographics, Behavior, Preferences):

Duolingo’s users vary widely, but for this analysis, we’ll focus on:

• Demographics: Young adults aged 18-30, tech-savvy, interested in personal development.
  
• Behavior: Users who engage in short, daily learning sessions, often during commutes or breaks.
  
• Preferences: Enjoy gamified learning experiences, appreciate visual progress indicators, and prefer community interaction.
  

Create User Personas and Understand Their Pain Points:

Example Persona:

• Name: Alex
• Age: 24
• Occupation: Marketing Professional
• Pain Points:
  
  • Feels lessons become repetitive over time.
  • Lacks motivation without tangible progress milestones.
  • Desires more interaction with fellow learners.
    

3. Report Customer Needs

Identify Customer Problems and Expectations:

• Problems:
  
  • Monotony in lesson structure leading to boredom.
  • Absence of clear, achievable goals resulting in decreased motivation.
  • Limited social features causing a sense of isolation in the learning journey.
    
• Expectations:
  
  • Varied and interactive lesson formats.
  • Recognition of achievements through badges or certificates.
  • Opportunities to connect and compete with peers.
    

Translate Findings into Clear, Actionable User Needs:

• Introduce diverse lesson activities to maintain engagement.
• Implement a system of rewards and milestones to acknowledge progress.
• Develop social features like leaderboards and discussion forums.
  

4. Cut, Through Prioritization

Evaluate Which Problems Are Most Critical to Solve:

Prioritize issues based on their impact on user retention:

1. Lack of motivation due to unrecognized progress.
2. Monotony in lesson structure.
3. Limited social interaction features.
   

Use Prioritization Frameworks (Impact vs. Effort):

• High Impact, Low Effort: Implementing a rewards system.
  
• High Impact, High Effort: Redesigning lesson structures.
  
• Moderate Impact, Moderate Effort: Adding social features.
  

Focus initially on the rewards system to quickly boost motivation.

5. List Possible Solutions

Brainstorm Potential Product Features or Design Improvements:

• Rewards System: Introduce badges, certificates, and streak bonuses.
  
• Varied Lesson Formats: Incorporate quizzes, interactive stories, and real-life conversation simulations.
  
• Social Features: Add user profiles, friend lists, leaderboards, and community challenges.
  

Consider Multiple Perspectives and Creative Ideas:

• User Perspective: Desire for a sense of accomplishment and community belonging.
  
• Business Perspective: Enhanced engagement leading to higher retention and potential revenue growth.
  
• Technical Perspective: Assess feasibility of integrating new features without compromising app performance.
  

6. Evaluate Trade-offs

Weigh the Pros and Cons of Each Potential Solution:

• Rewards System:
  • Pros: Boosts motivation, relatively easy to implement.
  • Cons: May require continuous updates to keep rewards appealing.
    
• Varied Lesson Formats:
  • Pros: Enhances learning experience, reduces monotony.
  • Cons: Requires significant content development and testing.
    
• Social Features:
  • Pros: Fosters community, encourages healthy competition.
  • Cons: Needs moderation to prevent misuse, adds complexity to the app.
    

Analyze Cost, Feasibility, and Impact on User Experience:

• Rewards System: Low cost, high feasibility, positive user impact.
  
• Varied Lessons: High cost, moderate feasibility, high user impact.
  
• Social Features: Moderate cost, moderate feasibility, moderate user impact.
  

Starting with the rewards system offers a quick win, while planning for more extensive features in the long term.

7. Summarize Recommendations

Present a Structured, Logical Recommendation:

1. Implement a Rewards System: Introduce badges and streak bonuses to acknowledge user progress.
   
2. Redesign Lesson Formats: Gradually incorporate diverse activities like quizzes and interactive stories to enhance engagement.
   
3. Develop Social Features: Plan and roll out community-based features such as leaderboards

Common Mistakes to Avoid When Using CIRCLES

Even though the CIRCLES Framework is a great way to solve product problems, many people make mistakes when using it. Here are some common ones and how to avoid them.

1. Skipping User Research

Some product managers jump straight to solutions without understanding the user. This is a big mistake. Without research, you don’t know what the real problem is. If you assume what users need, you might create the wrong solution. Always take time to collect real user data. Talk to customers, look at analytics, and understand their pain points before moving forward.

2. Spending Too Much Time on One Step

Each step in the CIRCLES Framework is important. Some people focus too much on one part and ignore the rest. For example, they might spend hours defining the problem but not enough time brainstorming solutions. This creates an imbalance. Make sure to move through each step properly without getting stuck on just one.

3. Not Prioritizing the Right Problems

Not all problems are equal. Some have a bigger impact than others. If you try to solve everything at once, you will waste time and resources. Use prioritization methods like the Impact vs. Effort matrix to focus on the most important problems first. This will help you get better results faster.

4. Ignoring Trade-offs

Every product decision has pros and cons. Some solutions might be great for users but too expensive for the company. Others might be easy to build but won’t solve the problem well. It’s important to consider these trade-offs. Always ask: What do we gain? What do we lose? This helps in making smarter decisions.

5. Not Thinking About Feasibility

Some ideas look great on paper but are not realistic. Maybe they need too much time, money, or technology that doesn’t exist yet. It’s important to check if a solution can actually be built. Always work with engineers, designers, and business teams to see if your idea is possible before moving forward.

6. Forgetting to Summarize Findings

After going through the framework, you need to clearly summarize your recommendations. Some people gather lots of insights but don’t organize them well. This makes it hard for teams to take action. A good summary should include the problem, user needs, best solutions, and next steps. This ensures that everyone is aligned.

7. Not Practicing Enough

The CIRCLES Framework takes practice. Some people only use it in interviews or big meetings, but that’s not enough. The more you use it, the better you get. Try applying it to everyday product decisions. This will make you more confident and skilled over time.

Also Read: Why Most Product Launches Fail

CIRCLES Framework for Different Product Management Roles

The CIRCLES Framework is useful for all product managers. But not every PM role is the same. The way you apply the framework can change depending on the type of company and product. Let’s look at how different PMs use CIRCLES in their work.

1. B2C vs. B2B Product Managers

B2C (Business-to-Consumer) product managers build products for everyday people. Their users are customers who buy and use the product directly. Think of apps like Spotify or Duolingo. B2C PMs focus on user experience, engagement, and customer emotions. When using CIRCLES, they spend more time on customer research. They need to understand user behavior, pain points, and preferences. Their solutions often involve improving design, personalization, or marketing strategies.

B2B (Business-to-Business) product managers create products for other businesses. Their customers are companies, not individuals. Think of tools like Slack or Salesforce. B2B PMs focus on solving business problems. Their users care about efficiency, cost savings, and integration with other tools. When using CIRCLES, B2B PMs spend more time on feasibility and trade-offs. They work closely with sales teams and consider long-term contracts.

Also Read: What is B2B and B2C? The Key Differences

2. Early-Stage Startups vs. Large Enterprises

Startups and big companies operate differently. The way they use CIRCLES is also different.

In an early-stage startup, speed matters. Teams are small, and resources are limited. A startup PM must move fast. They use CIRCLES in a flexible way, sometimes skipping certain steps. For example, they may not have time for deep user research. Instead, they rely on quick feedback from early customers. They also focus on launching an MVP (Minimum Viable Product) quickly, testing it, and making fast changes.

In a large enterprise, things move slower. There are more teams, more approvals, and more rules. A PM at a big company follows the CIRCLES framework in a detailed way. They conduct deep research before making decisions. They work with many stakeholders—marketing, engineering, finance, and executives. Their solutions must scale to millions of users. They also have to consider risks, brand reputation, and long-term impact.

3. Growth PMs vs. Platform PMs vs. AI PMs

There are different types of product managers based on their focus area. The way they use CIRCLES also changes.

A Growth PM works on increasing users, revenue, or engagement. Their goal is to make the product grow faster. They use CIRCLES to test new ideas quickly. They focus a lot on prioritization because they need to decide which ideas will have the biggest impact. They also test solutions in small groups before rolling them out to everyone.

A Platform PM works on the core systems that power a product. They don’t build features directly for users. Instead, they create tools that other teams use. Think of a PM working on an API or a cloud storage system. They use CIRCLES differently because their “customers” are engineers or other product teams. They focus more on trade-offs and feasibility since their solutions must work across many products.

An AI PM works on artificial intelligence and machine learning products. They use CIRCLES to define the right problem for AI to solve. AI solutions are complex, so they spend more time on evaluating trade-offs. They also work closely with data scientists and engineers. Unlike other PMs, AI PMs need to think about bias, fairness, and ethical issues when building solutions.

Conclusion

The CIRCLES Framework is a useful tool for product managers. It helps them solve problems in a clear, structured way. Instead of guessing or making random decisions, they can follow steps to understand users, find the right problems, and create better solutions. This makes product management more organized and effective.

Using CIRCLES is not just for interviews—it is helpful in real work too. Product managers can use it to plan features, improve products, and work better with teams. It also helps them think deeply about user needs and business goals.

The best way to learn CIRCLES is to practice. Try using it in real situations, like analyzing a product you use or solving a work problem. The more you use it, the easier it becomes. Over time, it will help you become a better product manager and make smarter decisions.

FAQs: What is Circles Framework