What is Product Management and What do Product Managers do?

What is Product Management?

Product management is a key business process that guides a product's journey from the initial idea to the market. It's central to a company's success, and its scope can vary based on the firm's structure and needs.

At its core, product management ensures the success of a product or a group of products, making it vital for any business. It's all about planning, creating, launching, and running a product or service effectively. This means it involves the entire product lifecycle - from the spark of an idea, through development, to finally reaching the customers.

Product managers are often seen as the link between business, design, and technology. They need to understand the business's needs and goals, the market trends, and customer behavior. They must also have a grasp of design principles to ensure the product is user-friendly and appealing. Plus, they need a good understanding of technology to work closely with the development team, shaping the product based on the latest tech possibilities and limitations.

In essence, product management plays a crucial role in driving a product's success, ensuring it delivers value to both the company and its customers. This is done by effectively combining business savvy, design understanding, and technological insight. The end goal is a product that not only meets customer needs but also brings business growth and success.

What do Product Managers do?

Product management is a crucial role in both the digital world and the business realm. Product managers are responsible for understanding customer needs and aligning them with the overall goals of the company. They envision what a successful product should be and motivate their team to bring that vision to life. While product management is a relatively new concept compared to traditional roles like design and engineering, it plays a vital role in the success of the product.

Different experts offer their interpretations of the product manager's role.

Ben Horowitz, former CEO and co-founder of Opsware calls product managers the CEOs of the product, highlighting their responsibility in setting objectives and driving results.

Marty Cagan author of the book "Inspired" also describes product managers as "mini-CEOs" who are accountable for the success of their product. PMs must have a clear vision, set strategic goals, and make critical decisions to achieve those objectives. A deep understanding of the market, technology, and user needs is crucial for product managers.

Julie Zhuo, a former VP of Product Design at Facebook, emphasizes the role of product managers as the "voice of the user" within the organization. They should empathize with users, understand their needs, and advocate for their interests. Product managers play a crucial role in translating user feedback into actionable insights for the development team.

Despite the slightly different interpretation it seems that the industry overall agrees on the fact that product management is the intersection of business, technology, and user experience. ProductTank founder Martin Eriksson says "A good product manager must be experienced in at least one, passionate about all three, and conversant with practitioners in all."

Product managers come from various professional backgrounds and coordinate activities throughout the product lifecycle. They interact with users during development, analyze market trends and competition, and make decisions about new features. They also create a vision for the product and foster a collaborative team environment.

But what does that mean in practice? What activities are product managers expected to do on a day-to-day basis?

Product manager responsibilities

So, what does the role of a Product Manager entail? The answer varies based on several factors: the size of the business, the structure of the product team, the methodologies applied, and the unique dynamics of different industries. Therefore, a product manager's responsibilities can significantly differ from one company or industry to another.

Nevertheless, there are common responsibilities typically associated with product management, often falling on the shoulders of the product manager unless covered by another individual with a specified role.

Customer Research: Product managers must have a profound understanding of their customer base. They must engage in regular customer research to ascertain their needs, behaviors, and pain points. This knowledge forms the base for shaping the product strategy.

Market Research: Understanding market trends and potential opportunities is another crucial task. Product managers analyze the market landscape and trends, informing strategic decision-making and feature development.

Competitor Monitoring / Analytics: To maintain competitiveness, product managers must keep a close eye on rival products, monitoring their strategies and analyzing their strengths and weaknesses.

Data Analytics: Interpreting data to gain insights is a fundamental aspect of the job. Data analytics helps to measure product performance, monitor customer behavior, and assess the success of different features.

Project Management: Product managers often oversee product development projects, coordinating with various teams, and ensuring the on-time delivery of product features.

Product Roadmap & Planning: Creating and maintaining the product roadmap, outlining the vision and direction of the product over time, is a key responsibility.

Product Marketing: Often, product managers are involved in marketing the product, collaborating with the marketing team to ensure consistent messaging and positioning.

Stakeholder Management: They liaise with various stakeholders, including executives, engineers, marketers, and customers, balancing different interests and facilitating effective communication.

Product Strategy & Vision: Perhaps the most significant role of a product manager is defining the product's strategy and vision, aligning it with the business goals, and ensuring it evolves to meet changing customer needs.

In essence, a product manager wears many hats, making it a challenging yet rewarding profession that plays a pivotal role in a product's journey from conception to market.

Career steps in product management

Product management roles and their associated responsibilities can significantly vary based on a multitude of factors. These factors may include the size of the company, the specific industry, the complexity and scale of the product, the company's development methodology (like Agile or Waterfall), and the company's culture and organizational structure.

In a startup or small company, for example, a product manager might be involved in a wide array of tasks that in larger companies would be divided among several roles. On the other hand, in a large enterprise, roles may be more specialized, with distinct responsibilities assigned to product analysts, product owners, or product operations managers.

Furthermore, different industries might have their unique approaches to product management, and the exact nature of the product (physical goods, software, services, etc.) could also shape the roles within the product management function.

Here's a high-level overview of key roles within product management at various levels. However, it's crucial to bear in mind that these descriptions are generalized, and the specifics may vary depending on the factors mentioned above.

1. Associate Product Manager (APM): Typically an entry-level or junior position in product management. The APM supports the product manager in carrying out various tasks, which might include market research, data analysis, assisting in creating and refining the product roadmap, and coordinating with other teams. They learn from the more experienced product managers and gradually take on more responsibilities as they gain experience and knowledge.

2. Product Manager (PM): The PM acts as the primary point of contact for all product-related activities. They are responsible for defining the vision for the product based on market analysis, user feedback, and company strategy. They create and prioritize the product roadmap, define product requirements, and collaborate with various teams like design, engineering, marketing, and sales to bring the product to life. They're also in charge of tracking product performance and making data-informed decisions for product improvements.

3. Senior Product Manager: With more experience and responsibility than a PM, the Senior PM often oversees multiple products or a major product line. They guide the strategy for their product(s), which can have a significant impact on the company's success. They also often take on people management responsibilities, coaching and mentoring junior PMs or APMs.

4. Director of Product Management: As a leadership role, the Director of Product Management is in charge of the strategic planning for a suite of products or the entire product portfolio. They manage and guide a team of product managers, helping to ensure alignment across different products and teams. They often participate in cross-functional leadership discussions and decisions, shaping the overall direction of the company's product offerings.

5. Chief Product Officer (CPO) or VP of Product: These are executive-level roles with responsibility for the company's overall product strategy. They work closely with other top executives (like the CEO, CTO, and COO) to align the product strategy with the company's broader goals and objectives. They oversee all product-related activities across the company, manage a large team of product professionals, and have a significant influence on company-wide strategy and direction.

Other roles in product management

Within the sphere of product management, there exists a broad spectrum of specialized roles, each contributing unique expertise and value to the product lifecycle. However, it's important to note that such a high degree of specialization often only becomes possible in larger organizations, where the scale and complexity of operations justify the presence of these distinct roles. These organizations typically have the financial resources to support a diverse array of product roles, allowing for a more segmented approach to product management.

On the other hand, in startups and mid-sized companies, resources may be more constrained and the product management function often needs to be more nimble and versatile. In such cases, the Product Manager often takes on the responsibilities of several roles. They might find themselves wearing many hats, from understanding user requirements and defining product vision to interpreting data analytics and coordinating go-to-market strategies.

In the following section, we'll explore some of these specialized roles that exist within product management, bearing in mind that the presence and distinctness of these roles can vary greatly depending on the scale, industry, resources, and specific needs of the organization.

1. Product Owner: In agile development frameworks, the product owner is the individual responsible for defining, prioritizing, and accepting work from the development team. They act as the liaison between the business stakeholders and the development team, ensuring that the work aligns with business objectives and user needs.

2. Product Analyst: This role is more focused on data and analytics. A product analyst examines user behavior, market trends, and product performance to provide actionable insights that can guide product strategy and decision-making. They often work closely with product managers to ensure decisions are data-driven.

3. Product Designer: Product designers are essential in creating the user interface and user experience of a product. They conduct user research, create wireframes and prototypes, and design the visuals and interactions for the product. Their goal is to make the product functional, easy to use, and enjoyable for the user.

4. Product Marketing Manager: A product marketing manager helps to ensure that a product meets market needs and that potential users understand its benefits. They conduct competitive analysis, market research, and customer segmentation, and they create positioning, messaging, and go-to-market strategies. They're often involved in product launches and promotional campaigns.

5. Product Operations Manager: This role is responsible for improving the efficiency and effectiveness of the product management team. They may handle tasks such as managing tools and processes, coordinating between different teams, and facilitating communication.

6. Program Manager: In product management, program managers often oversee multiple related projects or initiatives, ensuring they are coordinated and align with the organization's strategic goals. They work with multiple teams and stakeholders to manage resources, timelines, and dependencies.

7. Technical Product Manager: A technical product manager combines deep technical knowledge with product management skills. They often work on products that require a strong understanding of technology, like software or hardware products. They can speak the language of developers and understand the technical constraints and possibilities of the product.

These roles often collaborate and intersect with each other in different ways, forming a product team that works together to create, launch, and optimize products. The specifics can vary significantly depending on the company and the particular product or project.