What Does a Product Manager Really Do?
Segmenting markets, identifying target customers, and garnering customer insights. There is no business without customers, and it’s up to the product manager to understand who customers are, what they do, and why. Product managers must be able to characterize customers into logical groups (segments) of people with similar needs, or by other means (as in demographics, geography, etc.).
Assessing the industry and competition. You may be able to characterize customers and segments, but your competitors are doing the same thing. If they find a way to solve a problem or address a need that’s better than your product, or they have a more unique message or a more appealing design or user interface, they’ll win and you’ll lose. No one wants to lose, so product managers must track the goings-on with competitors and assess how their products compare to the competition.
Formulating product strategies. Establishing a vision for the product and crafting a path to the future rests with the product manager. Product managers must always align the strategies for the product with those of the company in which they work.
Integrating and synchronizing. Across the life cycle, the work output of many people performing a wide range of functions must be orchestrated to achieve a common goal (the completion of a new product, the upgrade of a current product, or any initiative to improve the product’s business or market performance). In order to deliver results and positive outcomes, product managers must be able to see the big picture; they must also be able to “connect the dots” among all aspects of the product’s business.
Influencing others. There is a distinct difference between managing and leading. Managing implies explicit authority over individuals. Leadership, on the other hand, means you must convince those individuals to follow your vision. Influence today also extends across formal and informal social networks, both within and outside your company. Who you are, what you say, the positions you take, and the degree to which you engender trust fall under the umbrella of influence.
Leading cross-functional product teams. Product managers cannot have their eyes on everything about the product that’s important. Thus, they need the help of many people, including those who bring specialized expertise from diverse areas and functions. The product manager organizes and leads a cross-functional product team composed of people who can perform the tasks necessary to achieve success for the product. In addition to leading the team, the product manager must be able to facilitate discussions and debate, mediate conflict, and nurture a collaborative, “functional” cross-functional team that can ultimately act as the board of directors for the product.
Solving problems and making decisions. Product managers must continually strive to make better, data-driven, informed decisions in near real-time at every point across the product’s life cycle.
Using financial tools to prepare plans or budgets and analyze variances. Companies invest money in products, and these products are expected to yield a positive return to the business. Product managers should be expected to fulfill the responsibility of planning for profitability; therefore, they (and their teams) need a solid understanding of the financials.