Clarifying the purpose of Product Management - Defining the role of the Product Manager http://www.sequentlearning.com/index.php

1. ®
Why Product Management Matters
Presented by:
Steven Haines
President, Sequent Learning Networks
Founder, The Product Management Executive Board
Author, The Product Manager’s Desk Reference
Author, Managing Product Management
Author: The Product Manager’s Survival Guide
© Copyright Sequent Learning Networks

2. Sequent Learning Networks
Our mission:
To elevate the skills and capabilities of product managers
and marketers
To help executives improve the effectiveness of their PM
organizations
Our clients:
More than 10,000 alumni
100’s of organizational diagnostic projects
1000’s of product manager assessments
International clientele, multiple industries
Our People:
Steven Haines, founder and author
A team of former corporate leaders with the depth and
breadth of experience to guide organizations on their
Product Management journey
Contact:
+1.212.647.9100
sequentlearning.com
2 ®
© Copyright Sequent Learning Networks

3. Demonstrated thought leadership
The “body of knowledge” for
Product Management
The comprehensive guide to
creating and managing profitable
products and services across the
entire life cycle
www.pmdeskreference.com
Invaluable resource for senior
leaders to effectively organize and
manage Product Management
Comprehensive approach to govern
and sustain Product Management
for the long-term
www.managingproductmanagement.com
3 ®
© Copyright Sequent Learning Networks

4. Coming soon!
The Product Manager’s Survival Guide
• The first and only “how-to-get-started” in
Product Management!
– For people who want to be a PM
– For product managers who want to re-boot
their career
– For newly promoted managers of Product
Management
– For new Product Management leaders
Steven Haines
4 ®
© Copyright Sequent Learning Networks

5. Resources for product people
Sequentlearning.com
Templates
Newsletters
PM Public Blog (PMEX)
PM Life Cycle Model
5 ®
© Copyright Sequent Learning Networks

6. Main points for this program
• Share the Current State of Product Management
• Define the Role of Product Management in the Firm
• Portray the Main Players: The Product Managers and
the Cross-Functional Product Team
• Describe How Product Managers and Their Teams Do
What They Need to Do
• How to Leverage the Most Effective Reference Model
for Product Management
• Define What’s Needed from Executives
• Explain Why Product Management Matters
6 ®
© Copyright Sequent Learning Networks

7. 1
Product Management refers to
the business management
products
7 ®
© Copyright Sequent Learning Networks

8. With such an easy
to understand
definition, what’s
the problem?
8 ®
© Copyright Sequent Learning Networks

9. Research findings
• The role of Product Management is
misunderstood by leaders of other
business functions
• Company structures often favor “Sales”
to make deals or “Engineering”
because they make the technology
• Product Management is treated like
project management
• Executives expect a steady stream of
innovations when resources are short
and insights are rare
9 ®
© Copyright Sequent Learning Networks

10. Additional findings
• Product Management is in varying
states of maturity – all over
• New “administrations” try to
remake PM as they search for the
best way to make PM work
The New Head of Product Management
• High levels of variation in PM
practices = inefficiency
• In some companies, PM as a
“function” ebbs and flows – like
the business cycle
10 ®
© Copyright Sequent Learning Networks

11. 2
It’s time to stop reinventing
the wheel!
Here’s how. . .
11 ®
© Copyright Sequent Learning Networks

12. The role of Product Management in the firm
Product Life Cycle Management
• Product Management is a vital
element of the organization’s Plan Develop Launch Growth Maturity Decline
business model and part of the
New Product Development
organization’s DNA
• Best-in-class PM is achieved
by a commitment to the
efficient management of
products and portfolios,
holistically, across their life
cycles
Post-Launch Prod Mgt
Page ®
12 © Copyright Sequent Learning Networks

13. Product Management
A “horizontal” integrative function
Customer Service
Supply Chain
Development
Operations
Marketing
Sales
Product Management
Source: “Managing Product Management” by Steven Haines
13 ®
© Copyright Sequent Learning Networks

14. 3
The main players?
Page ®
14 © Copyright Sequent Learning Networks

15. The product manager
• A person appointed to be a
proactive, product or product
line “mini-business” owner
• Leader of cross-functional
product team
• Team’s mission: Optimize
product’s market position &
financial return across its life
cycle – consistent with
Corporate and Division
strategies
15 ®
© Copyright Sequent Learning Networks

16. The Accidental Profession
Everyone comes from somewhere else!
Where they What they bring How they Impact on the
come from with them perform business
Marketing
Inconsistent
Documents
• Knowledge understanding
that are not
• Process/role confusion
Sales and use of
the same • Poor team behavior
• Skills practices
across teams • Underperforming products
• Experiences • Focus on projects, not
or business
Development • Documents divisions products
• Processes Skills not
• Misaligned product &
transportable
• Beliefs across the market strategies
Manufacturing • Paradigms • Lack of market focus
business
• Less innovation
• Poor decision making
Other
16 ®
© Copyright Sequent Learning Networks

17. 4
If PMs are supposed to play such a
leadership role, and they’re all
different, why is that so, and what
can we do about it?
17 ®
© Copyright Sequent Learning Networks

18. 5
We have to understand how product
managers learn their jobs.
18 ®
© Copyright Sequent Learning Networks

19. The product manager mind map
You can’t make an appointment with experience!
Customer Product Promotional
Research planning planning Pricing
Acquire Industry Financial Win-Loss
Analysis Forecasting Planning & Analysis
Knowledge, Analysis
Skills, and Competitor Channel Make vs.Buy Working with
Research Planning vs. Partner and Training
Experience Analysis Sales
Competitive Launching Post-
Product Products Launch
Research Audits
19 ®
© Copyright Sequent Learning Networks

20. 6
We need to examine how product
managers assimilate to produce
positive business outcomes.
20 ®
© Copyright Sequent Learning Networks

21. Customer Promotional
Research Product planning Pricing
planning
Acquire Industry Financial Win-Loss
Analysis Forecasting Planning & Analysis
Knowledge, Analysis
Skills, and Working with
Competitor Channel Make vs.Buy
Experience Research Planning vs. Partner and Training
Analysis Sales
Competitive Launching
Product Post-Launch
Products Audits
Research
Deriving Creating Optimizing
Segmenting Positioning Managing Managing
Utilize Market Value Performance
Markets Products Projects Risk
Insights Propositions & Results
Critical Thinking,
Synthesizing, and
Facilitative Skills Decision Comm- Leading &
Strategizing Prioritizing
Making unicating Influencing
Produce High
Product Business Product Product Marketing
Quality Launch Plan
Strategy Case Roadmap Reqt’s Plan
Documents
(Consistently)
Deliver Profitable Satisfied Market Fulfill
Products Customers Share KPIs
Results
© Copyright Sequent Learning Networks

22. What it takes
• Business acumen – how the business ‘works’
• Get work done in complex organizations
• Influence people who work in other functions
• Build shared sense of purpose among team
members
• Passion, commitment & determination
• Market awareness and sensitivity
• Solve problems
• Know the numbers
• Adaptability & flexibility
• Make decisions
For the PM to influence others and assume product (team)
leadership, he or she must earn credibility through actions
22 ®
© Copyright Sequent Learning Networks

23. Capturing work: The Product Master Plan
A long-lived, ongoing plan of record for the product or product line
• Product Descriptions
• Functional Support Plans and • All Relevant Artifacts and
Cross-Functional Team Members Product History
• Project Plans • Product Performance
• Sales & Distribution Plans Information (Financials,
• Promotional Plans KPIs, History, Trends)
• Pricing Strategies • Market Research Data
• Gate Reviews – Customers, segments,
industry trends, competitive
• Product Retirement Information product comparisons,
• Product Related Documents: competitor information
• Successes & Failures, wins
Strategic
Plans
PRDs Business
Cases
& losses
Product Marketing Launch
Road Maps Plans Plans
From: : “The Product Manager’s Desk Reference”
23 ®
© Copyright Sequent Learning Networks

24. 7
Product managers need to integrate,
leverage, and synchronize… they
cannot do it on their own.
24 ®
© Copyright Sequent Learning Networks

25. The product team
Sales Marketing
Product Finance
Development
Product
Manager
Supply Customer
Chain Service
Regulatory
Operations or
Legal
25 ®
© Copyright Sequent Learning Networks

26. Cross-functional teams
Two categories, different purposes
Cross-functional product teams are
market focused
– “Board of Directors” for a product
• Own the P&L/accountable for product
performance
• Strategic orientation
Cross-functional project teams focus
on product-related projects
– Conducting a customer field research project
– Launching a product
– Making an operational improvement to support
a product’s business
26 ®
© Copyright Sequent Learning Networks

27. 27 ®
© Copyright Sequent Learning Networks

28. Behavioral and cultural challenges
Even in the best-performing companies
Process
interpretation or, Lack of
poor or non- commitment &
existent processes accountability
Don’t align on
objectives or
priorities
People don’t
Communicate Lack
(e.g. Risks) of
trust People don’t
confront, e.g.
Over-Committing culture of “nice”
Under-Delivering
®
© Copyright Sequent Learning Networks

29. Foundations of successful teams
Focus on achieving results
Hold one another accountable
Commit to decisions, plans, and actions
Engage in healthy conflict
Trust one another
Five Dysfunctions of a Team, Patrick Lencioni
29 ®
© Copyright Sequent Learning Networks

30. Other contributors to team success
• Commitment and buy-in
to objectives and
deliverables
• Use metrics that shape
performance and guide
activities and cross-
functional engagement
• Abide by rules of
behavior
– Attend meetings (on time)
– Communicate risks
30 ®
© Copyright Sequent Learning Networks

31. Cross-functional engagement
Across the life cycle
Function Planning Developing Launching Managing
Phases Products Products Products
(G – M – D)
Product Manager
Marketing
Development
Sales
Operations
Finance
Customer Svce
Supp Chain
31 ®
© Copyright Sequent Learning Networks

32. Re-cap
Product Management refers to the
business management of products
The role of the product manager
How product managers learn and work,
and provide positive outcomes for the
business
The importance of the cross-functional
product team
32 ®
© Copyright Sequent Learning Networks

33. 8
Product managers depend on
proven business practices and a
usable, relevant reference model.
33 ®
© Copyright Sequent Learning Networks

34. The Product Management Life Cycle Model
Areas of Work
Phase-Gate NPD Process
34 ®
© Copyright Sequent Learning Networks

35. The PM LC Model offers a framework
To carry out work and produce the proper documents
®
© Copyright Sequent Learning Networks

36. Product Management Life Cycle Model
A holistic model to manage products, services, and portfolios across their life cycles
Discovery and New Product New Product Post-Launch Product
Innovation Planning Introduction Management
Development
Market Insight Performance Management
Concept Feasibility Definition
Strategy Growth-Maturity-Decline
= Decision Check Point
= Major Decision Point
DISCOVERY and INNOVATION NEW PRODUCT NEW PRODUCT POST-LAUNCH PRODUCT
Develop Market Insight PLANNING INTRODUCTION MANAGEMENT
Segment Markets Prioritize Opportunities Oversee Development Conduct Post-Launch Audits
Define Customer Targets Produce Opportunity Statement Manage Scope & Trade-Offs Track Customer Satisfaction
Assess Customer Needs Shape Value Proposition Manage Projects Leverage Cross-Functional Team
Create Customer Personas Assert Competitive Positioning Secure Regulatory Approvals Reassess Industry Movement
Detect Industry Trends (PRESTO)
Build Prototypes Catalyze Ecosystem Reevaluate Competitor Actions
Evaluate Competitors
Develop Business Case Synchronize Operations Conduct Win-Loss Studies
Compare Competitor Products
Derive Forecasts Orchestrate Product Launch Evaluate Metrics and KPIs
Formulate Strategy
Compose Product Requirements Prime Channels Analyze Product Profit & Loss
Establish Strategic Baseline
Configure Product SWOT Prepare Launch Plan Publish Marketing Material Refine Value Based Pricing
Determine Life Cycle State Define Marketing Mix Model Conduct Sales Training Improve Promotional Programs
Uncover Opportunities Establish Future Metrics Prepare Service Organization Gauge Channel Performance
Integrate Product Roadmap Conduct Make v. Buy Analysis Announce Product Rationalize Portfolios
Align Cross-Functional Teams Construct Product Master Plan Conduct Analyst Meetings Discontinue Products
© Sequent Learning Networks

37. Get the model!
sequentlearning.com/pm-model.php
37 ®
© Copyright Sequent Learning Networks

38. Foundations of the PM Life Cycle Model
The Deming Cycle
Plan • Plan – design a path
forward
• Do – implement the
plan (execute)
Act Do
• Check – evaluate and
measure performance
against the plan
Check • Act – Make changes
and improve
®
© Copyright Sequent Learning Networks

39. Important points from Deming
• Commitment to continuous
improvement to reduce variation
• Encourage collaborative
communication so that employees
work in the organization’s interest
• Break down internal barriers –
department’s in an organization are
“internal Clients” to each other and
must work together
• Everyone is responsible for continual
improvement in quality and
productivity – particularly top
management
39 ®
© Copyright Sequent Learning Networks

40. 9
How the model is used.
40 ®
© Copyright Sequent Learning Networks

41. New Product Planning
Concept: Rapid evaluation
new concepts and ideas
Feasibility: Deeper
New Product
evaluation. Research,
Planning validation, Business Case,
Launch Plan
Concept Feasibility Definition
Definition: More research,
PRD, final BC, final Launch
Plan and Marketing Mix
model
Decision Points
41 ®
© Copyright Sequent Learning Networks

42. New Product Introduction
Development: Launch:
Execution work designed Execution work designed
to fulfill product to bring a targeted product
requirements or service to market
Work activities include:
Work activities include:
• Producing the product
• Fulfilling all aspects of the
• Managing scope, making
launch plan
trade-offs and prioritizing
• Preparation of all launch
• Meeting regulatory
materials
requirements
• Keeping the teams • Setting up all internal
focused structures and operational
systems to support the product
during and after launch
• The announcement and
associated events and
activities Internally and
externally)
42 ®
© Copyright Sequent Learning Networks

43. Phase-gate usage
• To make optimal decisions about:
– Moving a product project to a subsequent phase or
killing the project
– Investing in the best product projects
• To ensure that the right work is being done
– Caveat: The process is not about checking boxes
43 ®
© Copyright Sequent Learning Networks

44. Process application with respect to planning
• Major new products Phase 1 Phase 2 Phase 3
• Enhancements Phase 1 Phase 2 Phase 3
• Blockbusters Phase 1 Phase 2 Phase 3
44 ®
© Copyright Sequent Learning Networks

45. Post-Launch Product Management
It’s about managing performance!
• Refers to strategies and tactics to
optimize the performance of
current products in the market
Post-Launch Product • Data collection, analysis, and re-
Management planning new marketing mix
initiatives is vital
• Using the cross-functional team
like the product’s board of
Performance Management directors to make informed,
Growth-Maturity-Decline relevant business decisions
45 ®
© Copyright Sequent Learning Networks

46. PM processes can improve the “business”
• All products follow a life cycle
• Knowing what to do, with whom,
and when, improves business
efficiency and results
• Elevated business & marketing
discipline helps everyone
Page ®
© Copyright Sequent Learning Networks
46

47. 10
PMs need committed, aligned
executives to properly govern
(guide) Product Management as a
business function.
47 ®
© Copyright Sequent Learning Networks

48. Imperatives for organizational success
1. Executives must be aligned around the function and
purpose of Product Management
2. A Chief Product Officer should be appointed and
should have a seat at the table
3. A product portfolio council should serve as the single
source of reconciliation of all product, platform, and
portfolio investments
4. A Product Management governance board should be
established to guide key processes and programs to
enable the success of Product Management – and
product managers
5. The PM governance board should enable “continuous
improvement” of Product Management
48 ®
© Copyright Sequent Learning Networks

49. Why Product Management Matters
• It’s a function that, when properly
chartered, will add value to a firm
because if focuses on the product’s
business from a holistic
perspective
– No other function in a business can
properly and effectively fill this role
• Product Management can transform
an organization into a highly
performing, market focused
enterprise
– Its efforts create a unified view of
markets to conquer
– It minimizes functional agendas that
may not act in the best interest of the
collective organization
49 ®
© Copyright Sequent Learning Networks

50. Thank you!
Steven Haines
Sequent Learning Networks
www.sequentlearning.com
The Product Management Executive Board
www.productmanagementexecboard.com
+1 212.647.9100
50 ®
© Copyright Sequent Learning Networks