It is difficult for Product Managers to think business

 

Translation_Needed

Why do founder CEOs with strong product management skills have difficulties when their companies need scaling? Why are product managers often perceived as the guys who don’t understand “business”? Why is is often so frustrating to manage stakeholders if you are a Product Manager?

I have asked myself this type of questions pretty often. Actually, at times I felt so far away from business that I was proud of being an idealistic advocate of our users. I found excitement in challenging the business colleagues by presuming I had the better (because user related) arguments in discussions. And yes, it is true that there are many articles about this topic. One of my employees pretty often asked me to be less “ideologic” and my strategy papers etc. were often perceived as kind of “bible”. Personally I believe this has been and still is a defensive move of the function product. Let´s try to understand the different historical phases of product management:

PHASE I (TACTICAL MARKETING)

Product was simply one of the four p´s in the marketing mix. Product Managers got a list of features they had to build and to release. That´s it.

PHASE II (STRATEGIC MARKETING)

Marketing became more and more a philosophy for companies to be truly consumer centric. It is the moment where marketing started to ask for seats at the executive table.

PHASE III (R&D COMPLEXITY)

Latest with the arrival of digital, products became too complex to be built based on top down specification. The introduction of agile methodologies has changed they way R&D needs to be led.

PHASE IV (STRATEGIC PRODUCT MANAGEMENT)

With all the agile teams led by Product Managers a new level of organizational challenge arrived: how to make sure all teams are working towards the same goal? Traditional general managers often fail to manage R&D because they are not seasoned Product Managers. They need “help” in steering those teams. The only way to inspire those teams is to have a clear product vision instead of asking for simple features to be built. There is translation needed. Otherwise there will be no real link between general management and R&D and the company will not be successful.

So, if you experience Product Managers not embracing your corporate strategy, this might be due to the fact that she/he is not willing and/or able to challenge it. It might be a comfort zone related issue. On the other hand side, it is always hard to leave the area of your own functional expertise and to broaden your view. It is like a nail that has been driven into a plank and then needs to expand in order to make a real hole…

Broadening_Business_Ambition

 

A big question remains open: how to broaden your view as a Product Manager? I have chosen to do a MBA for this. But if you have colleagues with a solid consulting background and openness towards design thinking this might also be very valuable.

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