To combat the spread of COVID, many of us have been home-bound over the past few weeks (and months). Though at times it has been challenging to see a silver lining in this, it has given many of us more time to do the things we've been delaying.
In my case, I took advantage of a promotion Udacity ran to learn about the fundamentals of product management (Product Manager Nanodegree). Even though I'm not seeking a career in this discipline (never say never), it's something which has overlapped on many of my projects. Hence, I wanted to deepen my understanding of this role.
In this essay, I'll be giving you an overview of product management. And, selfishly solidifying my understanding of the discipline as I do so.
What Is Product Management?
At its core, product management involves working across a spectrum of teams within the organisation, to ensure that the proposed product solves a real problem for real users.
As mentioned, product management involves working across a spectrum of teams. Some of the most common teams that those involved in product management work with, include:
- Quality Assurance
- Data Science
In product management, you spend a lot of time defining problems, creating strategies, communicating, coordinating the development, and responding to unforeseen situations.
In turn, that allows those in the discipline of product management to answer the four w's:
- What are we building?
- Who is the target user?
- Why are we building this solution?
- When are we building this?
The History Of Product Management
Before going any further, I want to share a brief history of product management with you. As with anything, by understanding the origins, it enables you to gain a deeper insight.
Let me take you back to the 1930s. A gentleman named Neil McElroy published a memorandum while working at Procter & Gamble, titled 'Brand Men'.
The memo touched on two parts for a function we now know as product management:
1. Full Responsibility
Those taking on the role of product management are responsible for the success of the product. Hence, PM's should be working across multiple teams to build great products.
2. Studying First-Hand
Those working within product management should witness the problems they're trying to solve with their products first-hand, interacting with users to gain deeper insights.
Forwarding to another advancement in the 1960s (after WW2), just-in-time manufacturing became common in Japan. On top of reducing waste, there were two key principles:
1. Kaizen - Change For The Better
This principle is about improving the business while driving for innovation. Today, you see those in product management working towards constant product optimisation.
2. Genchi Genbutsu - Real Location Real Thing
This principle involves going to the source to get the facts for better decision-making. Again, highlighting the importance for those in product management to experience the problem they're trying to solve first-hand.
What Does A Product Manager Do?
The core role of a product manager is to be that of a shepherd, let me explain. PM's must ensure their team is solving the right problem, and building the right product. And, since no company has unlimited resources (not even Amazon), they must be able to prioritise.
We can dissect the role of a product manager into the five areas below:
1. Problem Identification
One of the core responsibilities of a PM is to define the problem for the team to solve. Problem identification is one of the most critical responsibilities of a product manager.
2. Strategy Creation
Once the PM has a clear understanding of the problem and opportunity, it's then up to them to create a strategy for how to solve the problem through their envisaged product.
3. Communication Channels
PM's must ensure that the entire team is on the same page. Naturally, this it's achieved through a combination of channels, such as; presentations, conversations, emails etc. PRD's, written by PM's, play a crucial role in communicating the scope of a project.
4. Development & Launch Coordination
It may seem as if the product manager's do all the work, but that's not the case. Instead, they're in-charge of facilitating conversations and removing roadblocks across all partners, for example; design, marketing, engineering etc. With the end goal being to launch.
5. Responding To Information
Things change as new information comes to light over the lifecycle of a product; therefore, PM's need to stay in the loop and change the course of the work if needed.
It's important to note that the role of a product manager varies. At smaller companies product manager's tend to have more end-to-end responsibility. Whereas in larger companies, the product manager's responsibility will be more narrow in a specific area.
It may be the case that a product manager specialises in a particular type of product, such as data, growth, hardware, or software - each with their nuances as a product manager.
Finally, remember that the philosophy of a company's approach to building also shapes the role a PM plays from within. Common philosophies include; product-led organisations, engineering-led organisations, and a combination of the both working intertwined.
Product Management Glossary
- Acquisition Channel: An acquisition channel is where you find customers for your product.
- Average Revenue Per User: ARPU is the average amount of revenue generated per user.
- Cost-Based Pricing: Add a mark-up to the cost taken to produce the product.
- Design Sprint: A time-constrained design process to explore new products.
- Dynamic Pricing: Dynamic pricing is where the price changes to reflect fluctuations in supply and demand. Airlines adopt dynamic pricing models to the sale of their tickets.
- Efficiency Gain: Something that results in a process being cheaper to complete.
- Evangelise: To get people excited and vested into the interests of a project.
- Focus Group: Often a small group of people you present your ideas to, to see how they react. The group is generally diverse and asked specific questions for feedback.
- Freemium Pricing: A pricing is a model where the core product is free. Still, you have the option to purchase additional features or content for a fee. Spotify is an example of this.
- Gradual Rollout: The gradual rollout is a process of initially launching an updated product to a select number of users, and slowly adding more users of a pre-determined period.
- Iterate: Iteration is where you go through a process again to improve a product or feature.
- Lightning Talk: A brief presentation focussed on a specific topic.
- Minimum Viable Product: An MVP is the most basic form of a product, only with its necessary features. MVP's meet the needs of early adopters, from where teams can iterate as they build.
- Payback Period: The time it takes for a product to recoup the initial investment to build it.
- Price Discrimination: A model where different users pay a different price for the same product. For example, students may get a specific product cheaper than other people.
- Product Requirements Document: A PRD is a document which is written by a product manager describing the following; why we should build a product, what the product should do, and how to measure success.
- Release Notes: A document that accompanies the launch of a product. For example, the app store requires release notes which contain the new features for your latest release.
- Return On Investment: Ratio between net profit and investment. The higher, the better.
- Rollback Plan: This is a contingency plan you have in place if you need to undo your launch.
- Storyboard: A storyboard is a map of a user's experience with a product.
- Target User: Users with shared characteristics. Often used to describe your ideal customer.
- Total Addressable Market: TAM is a measure of the revenue opportunity for a product.
- Value-Based Pricing: A model whereby the price is correlated to the value a user gains.