Product management is an essential function to introduce to any organization once it reaches a critical size. By effectively introducing or optimizing the product management function, a company can be significantly more profitable. Conversely, ignoring this key function or poor implementation can mean missed profit opportunities. I’ve had the good fortune of introducing product management into three organizations. While no easy task, the financial rewards to an organization for implementing rigorous product management are vast. Here are seven secrets to product management success:
1. Assure independence: The product management function should never report to the engineering department. By being independent and neutral this assures a deeper understanding of customer perceptions, which can be different from the developer’s perceptions. Product Management should be the voice of the customers needs. In fact, product management is most useful to an organization before projects get to engineering. As such, it is a distinctly different function than engineering.
2. Avoid early assumptions: It is important to avoid making assumptions in the early stages of new product development. Most products fail due to poor market research, so product management must be independent enough that company bias is avoided. We may think the widget we developed is the greatest solution on the planet, but what matters is the customer perception of our widget.
3. Shore up marketing: Across many companies there exists a major imbalance between technology and marketing in how firms allocate resources. Successful companies have shored up the marketing side of the house with good solid product management and marketing communications.
4. Weed out the losers: It is during the early research phases where the obvious loser new product ideas should be weeded out, and where the key decisions to commit significant resources are made. These decisions need to be taken so that resources are available to focus on the best ideas. As well, they need to be market driven and unbiased.
5. Learn to differentiate: The most successful product managers understand how to differentiate products and the need to offer customers a unique value proposition. Learn your customer’s business inside out and understand how your product can help them perform better. Also learn to understand their needs, not just what they think they want.
6. Spend time selling: To be a successful product manager you must understand your customer base. There is no better way to assure this than by working directly with your sales team selling the product. You will learn information about your customers and the competition that you will never find in a survey. Additionally, you improve your communication and listening skills by working in sales and this will help you both internally and externally as you move forward with product management and your career.
7. Prune and optimize: While good product management is important to success in the front end of the product life cycle, it is also essential during all phases. Every year product management should take the time to review all products for sales and margin. Your organization will be more efficient and profitable if you prune the losers and adjust pricing as appropriate. Seeking out products that should be discontinued, or ones that are selling below cost, is a key responsibility of product management. When done correctly, this process assures a more focused effective and profitable organization. Product Management ultimately should be responsible for the product’s success. This means not only technical specifications, but also marketing, pricing, market acceptance and communications. As a product manager you are the sentinel of the product and in a unique position to assure its success. Singer Executive development offers a Product Management Boot Camp that can help your team be more successful. This course is ideal for both newer and experienced product managers. For more information on our product management training – http://www.singerexecutivedevelopment.com/driving-successful-product-management-innovation-training/
