why product management matters

© Copyright Sequent Learning Networks

Why Product Management Matters

®

Presented by:

Steven HainesPresident, 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

© Copyright Sequent Learning Networks®

Demonstrated thought leadership

3

www.pmdeskreference.com

� The “body of knowledge” for Product Management

� The comprehensive guide to creating and managing profitable products and services across the entire life cycle

� 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


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

4

Steven Haines


Resources for product peopleSequentlearning.com

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� Templates

� Newsletters

� PM Public Blog (PMEX)

� PM Life Cycle Model


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

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Product Management refers to the business management products

7

1


With such an easy to understand definition, what’s the problem?

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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


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

• High levels of variation in PM practices = inefficiency

• In some companies, PM as a “function” ebbs and flows – like the business cycle

The New Head of Product Management


It’s time to stop reinventing the wheel!

Here’s how. . .

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2

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The role of Product Management in the firm

• Product Management is a vital

element of the organization’s

business model and part of the

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

Plan Develop Launch Growth Maturity Decline

Product Life Cycle Management

New Product Development

Post-Launch Prod Mgt


Product ManagementA “horizontal” integrative function

13

Ma

rke

tin

g

Sa

les

Op

era

tio

ns

De

ve

lop

me

nt

Su

pp

ly C

ha

in

Cu

sto

me

r S

erv

ice

Product Management

Source: “Managing Product Management” by Steven Haines


The main players?

3


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


The Accidental ProfessionEveryone comes from somewhere else!

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Marketing

Sales

Development

Manufacturing

Other

• Knowledge• Skills• Experiences• Documents• Processes• Beliefs• Paradigms

Inconsistent

understanding

and use of

practices

Skills not

transportable

across the

business

Documents

that are not

the same

across teams

or business

divisions

• Process/role confusion

• Poor team behavior

• Underperforming products• Focus on projects, not

products

• Misaligned product &

market strategies

• Lack of market focus

• Less innovation

• Poor decision making

Where they

come fromWhat they bring

with themHow they

perform

Impact on the

business


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?

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We have to understand how product managers learn their jobs.

5


The product manager mind mapYou can’t make an appointment with experience!

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Acquire

Knowledge,

Skills, and

Experience

Customer Research

Competitor Research

Competitive Product Research

Industry Analysis

Product planning Pricing

Promotional planning

Channel Planning

Launching Products

Win-Loss Analysis

Post-Launch Audits

Financial Planning & Analysis

Working with and Training

Sales

Forecasting

Make vs.Buy vs. Partner Analysis


We need to examine how product managers assimilate to produce positive business outcomes.

6

© Copyright Sequent Learning Networks

Acquire

Knowledge,

Skills, and

Experience

Customer Research

Competitor Research

Competitive Product Research

Industry Analysis

Product planning Pricing

Promotional planning

Channel Planning

Launching Products

Win-Loss Analysis

Post-Launch Audits

Financial Planning & Analysis

Working with and Training

Sales

Forecasting

Make vs.Buy vs. Partner Analysis

Utilize

Critical Thinking,

Synthesizing, and

Facilitative Skills

Deriving

Market

Insights

Managing

Risk

Segmenting

Markets

Positioning

Products

Creating

Value

Propositions

Managing

Projects

StrategizingLeading &

Influencing

Decision

MakingPrioritizing

Comm-

unicating

Optimizing

Performance

& Results

Produce High

Quality

Documents

(Consistently)

Business

Case

Product

Reqt’sMarketing

PlanProduct

Strategy

Product

RoadmapLaunch Plan

Deliver

Results

SatisfiedCustomers

Fulfill KPIs

ProfitableProducts

Market Share


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

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For the PM to influence others and assume product (team) leadership, he or she must earn credibility through actions


Capturing work: The Product Master PlanA long-lived, ongoing plan of record for the product or product line

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• Product Descriptions• Functional Support Plans and

Cross-Functional Team Members• Project Plans• Sales & Distribution Plans• Promotional Plans• Pricing Strategies• Gate Reviews• Product Retirement Information• Product Related Documents:

• All Relevant Artifacts and Product History

• Product Performance Information (Financials, KPIs, History, Trends)

• Market Research Data

– Customers, segments, industry trends, competitive product comparisons, competitor information

• Successes & Failures, wins & losses

From: : “The Product Manager’s Desk Reference”

Business Cases

Launch Plans

Strategic Plans

PRDs

Product Road Maps

Marketing Plans


Product managers need to integrate, leverage, and synchronize… they cannot do it on their own.

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The product team

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Product

Manager

MarketingSales

Regulatory or

Legal

Product

Development

Finance

Supply

Chain

Customer

Service

Operations


Cross-functional teamsTwo 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

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Process interpretation or,

poor or non-existent processes

Behavioral and cultural challengesEven in the best-performing companies

Don’t align on objectives or

priorities

People don’t Communicate (e.g. Risks)

Over-CommittingUnder-Delivering

Lack of

trust

Lack of commitment & accountability

People don’t confront, e.g.

culture of “nice”


Foundations of successful teams

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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


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

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Cross-functional engagementAcross the life cycle

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Function Planning Phases

Developing Products

Launching Products

Managing Products

(G – M – D)

Product Manager

Marketing

Development

Sales

Operations

Finance

Customer Svce

Supp Chain


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

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Product managers depend on proven business practices and a usable, relevant reference model.

8


The Product Management Life Cycle Model

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Areas of Work

Phase-Gate NPD Process


The PM LC Model offers a framework To carry out work and produce the proper documents

© Sequent Learning Networks

Product Management Life Cycle ModelA holistic model to manage products, services, and portfolios across their life cycles

NEW PRODUCT

PLANNING � Prioritize Opportunities

� Produce Opportunity Statement

� Shape Value Proposition

� Assert Competitive Positioning

� Build Prototypes

� Develop Business Case

� Derive Forecasts

� Compose Product Requirements

� Prepare Launch Plan

� Define Marketing Mix Model

� Establish Future Metrics

� Conduct Make v. Buy Analysis

� Construct Product Master Plan

NEW PRODUCT

INTRODUCTION� Oversee Development

� Manage Scope & Trade-Offs

� Manage Projects

� Secure Regulatory Approvals

� Catalyze Ecosystem

� Synchronize Operations

� Orchestrate Product Launch

� Prime Channels

� Publish Marketing Material

� Conduct Sales Training

� Prepare Service Organization

� Announce Product

� Conduct Analyst Meetings

POST-LAUNCH PRODUCT

MANAGEMENT� Conduct Post-Launch Audits

� Track Customer Satisfaction

� Leverage Cross-Functional Team

� Reassess Industry Movement

� Reevaluate Competitor Actions

� Conduct Win-Loss Studies

� Evaluate Metrics and KPIs

� Analyze Product Profit & Loss

� Refine Value Based Pricing

� Improve Promotional Programs

� Gauge Channel Performance

� Rationalize Portfolios

� Discontinue Products

DISCOVERY and INNOVATION

Develop Market Insight

� Segment Markets

� Define Customer Targets

� Assess Customer Needs

� Create Customer Personas

� Detect Industry Trends (PRESTO)

� Evaluate Competitors

� Compare Competitor Products

Formulate Strategy

� Establish Strategic Baseline

� Configure Product SWOT

� Determine Life Cycle State

� Uncover Opportunities

� Integrate Product Roadmap

� Align Cross-Functional Teams

New Product

Planning

New Product

Introduction

Post-Launch Product

Management

Concept Feasibility Definition

DevelopmentPerformance Management

Growth-Maturity-Decline

Discovery and

Innovation

Market Insight

Strategy

= Decision Check Point= Major Decision Point


Get the model!

sequentlearning.com/pm-model.php

37


Foundations of the PM Life Cycle Model

The Deming Cycle

• Plan – design a path forward

• Do – implement the plan (execute)

• Check – evaluate and measure performance against the plan

• Act – Make changes and improve

Plan

Do

Check

Act


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

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How the model is used.

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New Product Planning

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New Product Planning

Concept Feasibility Definition

Concept: Rapid evaluation new concepts and ideas

Feasibility: Deeper evaluation. Research, validation, Business Case, Launch Plan

Definition: More research, PRD, final BC, final Launch Plan and Marketing Mix model

Decision Points


New Product Introduction

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Launch:

Execution work designed to bring a targeted product or service to market

Work activities include:

• Fulfilling all aspects of the

launch plan

• Preparation of all launch

materials

• Setting up all internal

structures and operational

systems to support the product

during and after launch

• The announcement and

associated events and

activities Internally and

externally)

Development:Execution work designed to fulfill product requirements

Work activities include:

• Producing the product

• Managing scope, making

trade-offs and prioritizing

• Meeting regulatory

requirements

• Keeping the teams

focused


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

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Process application with respect to planning

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• Major new products

• Enhancements

• Blockbusters

Phase 1 Phase 2 Phase 3




Post-Launch Product ManagementIt’s about managing performance!

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Post-Launch Product

Management

• Refers to strategies and tactics to optimize the performance of current products in the market

• Data collection, analysis, and re-planning new marketing mix initiatives is vital

• Using the cross-functional team like the product’s board of directors to make informed, relevant business decisions

Performance Management

Growth-Maturity-Decline

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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


PMs need committed, aligned executives to properly govern (guide) Product Management as a business function.

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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

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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

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Thank you!

Steven HainesSequent Learning Networks www.sequentlearning.com

The Product Management Executive Boardwww.productmanagementexecboard.com

+1 212.647.9100

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