The Importance of Product Management

“The long-term interests of shareholders are perfectly aligned with the interests of customers.” – Jeff Bezos

The role of the Product Management team is to implement business strategy while also playing the role of market advocate. They must assure that ideas implemented are in alignment with the overall corporate strategy. Product Management guides the company on how to invest its limited resources to deliver competitive products that are in line with market needs and then works with other teams to better enable them to help the company reach business goals. Product Management is instrumental in achieving business goals across the product life-cycle, which includes the following stages: Pre-Development, Development, Introduction/Launch, Growth, Maturity, Decline, and End of Life.

Product Management is the voice of the market inside the company. The “market” consists of customers and non-customers, buyers and users at companies in target market segments. They are the truth tellers to executive management, development, sales and other parts of the company by synthesizing meaningful market data into actionable information. A good Product Management team builds consensus and is welcomed into strategic planning and tactical activities alike. As the voice of the market, it is Product Management’s responsibility to assure the company’s solution set and messaging are aligned with company strategy and market needs. Any misalignment of market, product or strategy will result in less-than-optimal profits for the company.

In maintaining this alignment, Product Management helps keep the company focused, avoiding “shiny objects” that may appear to be good opportunities but in reality are distractions. Products and enhancements are built and marketed based on market needs, regardless of how great a new innovation may seem. Product Management cuts through the noise of hundreds of great ideas and customer requests to guide the organization down a path that results in maximized revenue at minimized cost. It is their role to persuade others to do what’s right for the company.

Product Management acts as the hub of product and market information for Sales, Marketing, Development, Support, Finance, Management and other parts of the company. Without this hub, each department develops their own perception of market reality, product capabilities and product portfolio direction.

Product managers are expected to be able to effectively communicate with all of these distinct internal groups while also getting out of the office to work with customers, partners and other parties. They act as a sort of translator, engaging customers in their language, translating that message to Management in their language for proposals and translating the message to Development in their language to relay product requirements. The circle is completed by expressing product features and benefits to customers in their language.

Product managers take it upon themselves to become recognized experts in all areas involving products: customers, the market, technology, competition, channels, media, analysts, trends and anything else that must be taken into account to win. They have a strong vision for their products and develop winning strategies that align with company goals and ensure that investments of time, money and energy are well-spent. With this parallel view of the tactical present and strategic future, Product Management is positioned to support the current product portfolio while directing activity that positions the company for competitiveness in the future.