Published today. Thank you, Simon!
Reading about supply chain management educates me that there are basically two dimensions to look at it: risk in supply vs. risk in demand. As long as you can accurately predict the demand of your products, you can optimize your production capacity and therefore reduce costs. But as soon as you have to take risk on the demand side, it will become more important to react quickly to changes in demand. Speed over costs!
And this stuff is not about agile development. It is part of our lecture “Operations Management” @HEC Executive Education. Those concepts are not new. Companies like P&G, Zara and others have optimized their value chains giving good example cases.
I am writing about this because I was very often in the situation where the Executives wanted me and my team to innovate and at the same time precisely forecast the demand and save costs. Intuitively I was reluctant to even try this. Working agile means being able to react to changes in demand. When you are building, measuring and learning this is exactly the same challenge. You need to be able to read the signal of your customers as soon as possible in the process and to adjust the “production” accordingly.
In the traditional supply chain model this would be described as “speed to react upon changes in demand”. There would be a business case for heavy investments – as long as your products don´t fall into the commodity space. Then you won´t achieve high margins. But what else than achieving greater margins is innovation about?
So, companies, believe in your ability to innovate. The reward will be superior margins!
Amazing article by @sarahdoody. I particularly liked the right-brain thinker idea and the concept of story telling.
“… and figure out how to distill a vision or idea into a product story.”
This might also explain, why many companies need a product CEO at their top.
If you want to formulate it positively, you might describe the role of a Product Manager as a central one. Working at the intersection of many disciplines. Making sure, the products of your company are viable, feasible and desirable.
But: a Product Manager can very quickly be in a situation where she/he has no real decision power. All the stakeholders expect certain things and one doesn´t have the time to think through everything. And not only that: a Product Manager needs to show the way into uncertainty. And is speaking a foreign language. Lost in translation so to say…
There are also other roles that are pretty central and where people are involved into kind of everything that is going on in a company: project managers, executive assistants etc. Would you see them as the leaders into uncertain areas? You might, but this is not what you will think about first when talking about this type of roles.
So, as a Product Manager you need to assume your leadership role. You need to feel comfortable with showing the way. And especially also to executives. In case this works out, you are in the pole position for an executive role yourself…
Very interesting article about the role of digital leadership in established boards and companies. As a headhunter has put it when I met him on Wednesday: “you are surfing on the right wave, your moment will come for sure”. But one thing cannot be learned with a MBA program: leadership. You need to get experienced with real transformation situations in larger corporations (e.g. in the media and/or telecommunications area). But the more experienced you get in those areas the less entrepreneurial you might become. This explains why those candidate profiles are pretty rare out there…
In interviews one is often asked “how do you lead people?”. Leading your own team is relatively easy. What do you do if you “have to make people listen to you who don’t have to?” (as one NOKIA HR Manager has always put it). I strongly believe that this is the moment to become serious about the content. You cannot solely lead by KPIs or by driving process milestones. Now imagine a situation where you have to lead really strong people like founders or senior engineers. What makes people listen to your ideas?
During the first ten years of my career I believed it was all about money and job titles. You could buy the loyalty of your employees without having to satisfy their demand for great stuff to work on. You could get any UX person if you just offer a nice title and a decent salary. This was the type of arrogance of people wearing suits and owning the P&L. I was so wrong. I found myself in situations where I had to sell the role to an interesting candidate – and had nothing to say.
When talking about “leading by vision” I don´t mean the fluffy high flying vague kind of thing. I mean the concrete and tangible artifact. At my previous company we identified so called “north stars” aka products that would guide us the way. We built a vision type to illustrate the concept as concretely as possible. It is hard and sometimes almost impossible. But you have to try. If you get this right, no, let´s say exciting for your (potential) followers then they will listen. The rest is empowerment and excellent management. Don´t let go. Also monitor progress and ruthlessly push for the execution of the vision.
When I was put in front of engineers for the very first time, I really didn´t know how to deal with them. Quickly I realized that my leadership style didn´t work out anymore. Please don´t get me wrong: I was an experienced manager with almost ten years of leadership experience. Until that point in time I was pretty successful in my roles. My strategy to get myself over this point was to put pressure. “We need to have feature A released by June, otherwise we won´t achieve our business target and our investors won´t like it…” I said. And you know what: my R&D colleagues simply didn´t care. Instead they asked me what to do, how to build it etc. I was not able to answer questions about the product itself and was caught waffling in many cases.
More than that: I always felt uncomfortable to talk about the product to be built. Even tried to avoid talking about it. Incredible, isn’t it? On top of that, I tried to avoid exposure to the teams in charge. Wanted to “manage” it top down.
The result was poor. We launched a product that more or less completely failed. But even worse: I had lost my reputation with my R&D team. They simply didn’t take me seriously anymore. My behavior had increased the gap between “business” and “engineering”.
Now after a couple of years later I understand why. I had to learn it the hard way how to collaborate with my R&D colleagues. But not without having gone to the other extreme: having lost my connection with my stakeholders. Only in the recent years I have been able to balance the needs better. And actually got a lot of satisfaction out of this. Starting with a product vision and then going through technical but also design and customer iterations is something extremely exciting.
The most important thing you need to bear with: accept that you don´t know much. You don’t need to be the one knowing everything and also not the one with the best ideas. In the contrary: the more you step back the more successful you will become. One team gave me a nickname after I had left – “Il Padrino” – the guy behind the scenes but in charge…