The Business Management of Product Management

From our recent webinar on 3/23/16

Transcript

1. ©2016 SEQUENT LEARNING NETWORKS The Business of Products or Why Product Management is a Strategic Asset for Any Firm
2. ©2014 SEQUENT LEARNING NETWORKS • Former corporate leader (AT&T, Oracle) • Started out in finance • Moved to product (20+) • Evolved to ardent advocate for business excellence • Started a company in 2002 sjhaines@sequentlearning.com 212-647-9100 2
3. ©2014 SEQUENT LEARNING NETWORKS Sequent Learning Networks Sequent Learning Networks is a learning and advisory company specializing in the areas of Product Management, Strategy, and Marketing. We help our clients implement business practices by showing them HOW, so they can adopt the techniques that will contribute to product and market success. 3
4. ©2014 SEQUENT LEARNING NETWORKS Books from Sequent Learning Networks Steven Haines, Founder Bob Caporale, President 4
5. ©2014 SEQUENT LEARNING NETWORKS The well-being of any high-performance organization is tied to its ability to align business functions, and to produce and manage profitable products. Opening Statement 5
6. ©2014 SEQUENT LEARNING NETWORKS Discuss what’s necessary to effectively enable any company (any size, any business) to produce great products Goal 6
7. ©2014 SEQUENT LEARNING NETWORKS How 1. Organizational Challenges 2. Business Infrastructure 3. Pathways Forward 7
8. ©2016 SEQUENT LEARNING NETWORKS Organizational Challenges 8
9. ©2014 SEQUENT LEARNING NETWORKS Senior executive churn • High rate of churn causes Product Management to ebb and flow Middle management churn • Not as high as seniors, but still significant Churn 9
10. ©2014 SEQUENT LEARNING NETWORKS Companies that reinvent the PM wheel each time a new executive arrives don’t benefit from lessons learned 10
11. ©2014 SEQUENT LEARNING NETWORKS Role and purpose of product management in the company Role of the product manager Roles 11
12. ©2014 SEQUENT LEARNING NETWORKS What is it? 556 12
13. ©2014 SEQUENT LEARNING NETWORKS The business management of products and portfolios across their life cycles. 13
14. ©2014 SEQUENT LEARNING NETWORKS Why the Confusion? • Industry or Sector • Company size • Company maturity • Speed of Market • Debate between tangible products and intangible services Definitions that seem “fit for purpose” without appropriate benchmarks diminishes the value of the “function” of Product Management as well as the “profession” for product managers 14
15. ©2014 SEQUENT LEARNING NETWORKS The Product Manager • A person appointed to be a proactive, product or product line “mini- business” owner • PMs lead cross-functional product teams • PMs, like GMs, are best equipped to synchronize the organization’s gears because they see how it all comes together! 15
16. ©2014 SEQUENT LEARNING NETWORKS Conflicting agendas Portfolio City of Silos 16
17. ©2014 SEQUENT LEARNING NETWORKS City of Silos 17
18. ©2014 SEQUENT LEARNING NETWORKS How it ought to look • PM Serves as a “horizontal” integrative “business function” • PMs synchronize the work of others • Aligns cross-functional teams around common goals Marketing Sales Operations Development Service Product Management 18
19. ©2014 SEQUENT LEARNING NETWORKS Portfolio Allocations ? 19 Diagram from: The Product Manager’s Desk Reference (2e) By Steven Haines
20. ©2014 SEQUENT LEARNING NETWORKS Financial data Nonfinancial KPIs Measuring Systems 20
21. ©2014 SEQUENT LEARNING NETWORKS Challenges with Respect to Data Collection and Analysis • Product and product line financial data isn’t always available (G/L and other system problems) • Product managers not sufficiently trained in financial analysis • Reward systems for PMs and teams not in place to keep product teams moving in right direction – staying aligned
22. ©2014 SEQUENT LEARNING NETWORKS Of product managers Management 22
23. ©2014 SEQUENT LEARNING NETWORKS How many product managers review their goals and progress with their managers at least once a year? How many managers of product managers review progress of product managers: • Once a year? • More than once a year? Quick Survey 23
24. ©2014 SEQUENT LEARNING NETWORKS Most PMs Want to Get Promoted! >90% of product managers don’t know what they need to do to get promoted. >90% of managers of product managers don’t have established criteria for progression to the next level 24
25. ©2016 SEQUENT LEARNING NETWORKS Business/Infrastructure What’s needed to be successful 25
26. ©2014 SEQUENT LEARNING NETWORKS Financial (revenue, costs, gross margin) Customer insights Competitors Competitive products Industry trends Data Market Intelligence 26
27. ©2014 SEQUENT LEARNING NETWORKS Should be evaluated using a maturity model Can be used to guide – not to be too rigid Precedents need to be established for a learning organization Improvements should be continuous Processes 27
28. ©2014 SEQUENT LEARNING NETWORKS Interconnected Processes: Contribute to Best Practice Foundations Translate Insights and Business Data to Spur Innovations and Develop Product Vision and Strategy Evaluate Product investment Options and Make Informed Decisions on Existing Products and Portfolios Ensure that Products are Efficiently Developed and Launched to the Market in a Timely Manner Monitor Business and Financial Data and Make Adjustments to the Marketing Mix Elements to Improve Results and Reset Strategy Continuously Analyze Customers, Industries, and Competitors and Garner Relevant Market Insights Strategic Planning Process Market Insight Development Process Product Introduction (GTM) Process Performance Management Process Decision-Making Process 28
29. ©2014 SEQUENT LEARNING NETWORKS Product/Business Dashboards KPIs Performance Management 29 Diagram from: The Product Manager’s Desk Reference (2e) By Steven Haines
30. ©2014 SEQUENT LEARNING NETWORKS Product/Business Information Dashboards 30 Diagram from: The Product Manager’s Desk Reference (2e) By Steven Haines
31. ©2016 SEQUENT LEARNING NETWORKS Pathways Forward 31
32. ©2014 SEQUENT LEARNING NETWORKS How do we know? Benchmarking History 32
33. ©2014 SEQUENT LEARNING NETWORKS The Best of the Best! – Everyone Focuses on the Same Thing! • Sustain singular focus on markets • Set clear objectives and strategies • Align product portfolio and platform investments with strategy • Flexibly adapt phased NPD process • Use cross-functional product teams to manage “mini-businesses” • Minimize confusion by using standard tools, processes, documentation and terminology 33
34. ©2014 SEQUENT LEARNING NETWORKS Current Information – Value of Product Management 92% 88% 90% 84% 88% 93% 2014 PM Benchmark Survey n = 208 Contributes to the creation of high value products Provides the means to execute on strategy Allows our firm to be more competitive Contributes greatly to product profitability Stimulates innovation Provides leadership across the organization 34
35. ©2014 SEQUENT LEARNING NETWORKS Interesting Tidbits Survey Item Commentary 38% of firms have a CPO or equivalent head of PM A “c-suite” or equivalent leader can help build bridges with other leaders and align those around product strategy 37% indicate that product managers regularlyevaluate the product P&L Whether it’s the evaluation of revenue, gross margin, or other indicators, greater emphasis is needed on performance management 29% of firms indicate that there is adequate funding for market intelligence gathering. Business decisions that are not based on up- to-date, relevant market data, are likely to be sub-optimal and will waste precious resources 35
36. ©2014 SEQUENT LEARNING NETWORKS Now we have the foundation! What’s next? 36
37. ©2014 SEQUENT LEARNING NETWORKS Everyone Owns The Solution Alignment Collaboration Focus Leadership 37
38. ©2014 SEQUENT LEARNING NETWORKS Alignment: 1) Senior leaders align around the purpose and function of Product Management 2) Role of the product manager is agreed to by all 38
39. ©2014 SEQUENT LEARNING NETWORKS Collaboration: 1) People encouraged to work together to solve problems – especially those that involve customers 2) Strengthen partnerships inside and outside of the company 39
40. ©2014 SEQUENT LEARNING NETWORKS Focus: 1) On markets (external) 2) On competitive advantage 3) On efficiency 4) On business results 5) On winning 40
41. ©2014 SEQUENT LEARNING NETWORKS Leadership: 1. Big picture thinking 2. Shared vision 3. Sound judgment 4. Informed decisions 5. Action orientation 6. Strategic mindset 41
42. ©2014 SEQUENT LEARNING NETWORKS Organizational symmetry starts here Everyone views the “business of the product” from a holistic perspective 42
43. ©2014 SEQUENT LEARNING NETWORKS Leaders build PM through enablers Data Availability and Management Process and Template Management Performance and Metrics Management Management of Product Managers Cross-Functional Product Team Management Product Portfolio Management Enabling Practices 43
44. ©2014 SEQUENT LEARNING NETWORKS Competent, capable product managers are required Discovery and Innovation Developing Market Insights Strategy and Planning Synthesizing Data and Setting Direction Outbound Execution Implementing the Marketing Mix and Launching Products Performance Management Fulfilling Objectives and Delivering Results Competency Groups 44
45. ©2014 SEQUENT LEARNING NETWORKS Organizing for Product Management Around the PM LC Model Data Availability and Management Process and Template Management Performance and Metrics Management Management of Product Managers Cross-Functional Product Team Management Product Portfolio Management Enabling Practices Discovery and Innovation Developing Market Insights Strategy and Planning Synthesizing Data and Setting Direction Outbound Execution Implementing the Marketing Mix and Launching Products Performance Management Fulfilling Objectives and Delivering Results Competency Groups 45
46. ©2014 SEQUENT LEARNING NETWORKS • Organizing properly for “Product Management” can be a source of competitive advantage • Organizing effectively for PM can enable firms to optimize products and portfolios • When Product Management takes root in a company and thrives, the entire organization succeeds and everyone wins Closing Statements 46
47. ©2014 SEQUENT LEARNING NETWORKS 47 Dobbs Hogoboom Sr. Manager of Product & Strategy // Opportunity Current audience of aging readership. Team wanted to set strategy to focus on younger, affluent mobile audience
48. ©2014 SEQUENT LEARNING NETWORKS // Agile market research in the strategy phase Incorporating on-demand user research into the strategy phase enabled Dobbs’ team to rapidly test and prioritize ideas, so they could invest in the areas with the most innovative potential // Opportunity Current audience of aging readership. Team wanted to set strategy to focus on younger, affluent mobile audience
49. ©2014 SEQUENT LEARNING NETWORKS Rapid turnaround of user feedback Interactive prototypes & user sourcing Capabilities: Benefits: Informs team about marketability of ideas Iterations and data keeps team aligned
50. ©2016 SEQUENT LEARNING NETWORKS Thank you! Stay in Touch! 50
51. ©2016 SEQUENT LEARNING NETWORKS Redeem your free experiment at: http://alpha-ux.co/experiment