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© 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
© Copyright Sequent Learning Networks®
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
© Copyright Sequent Learning Networks®
Resources for product peopleSequentlearning.com
5
� Templates
� Newsletters
� PM Public Blog (PMEX)
� PM Life Cycle Model
© Copyright Sequent Learning Networks®
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
6
© Copyright Sequent Learning Networks®
Product Management refers to the business management products
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1
© Copyright Sequent Learning Networks®
With such an easy to understand definition, what’s the problem?
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© Copyright Sequent Learning Networks®
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
© Copyright Sequent Learning Networks®10
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
© Copyright Sequent Learning Networks®
It’s time to stop reinventing the wheel!
Here’s how. . .
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2
© Copyright Sequent Learning Networks®Page
12
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
© Copyright Sequent Learning Networks®
Product ManagementA “horizontal” integrative function
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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
© Copyright Sequent Learning Networks®
The main players?
Page 14
3
© Copyright Sequent Learning Networks®
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
© Copyright Sequent Learning Networks®
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
© Copyright Sequent Learning Networks®17
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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© Copyright Sequent Learning Networks®18
We have to understand how product managers learn their jobs.
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© Copyright Sequent Learning Networks®
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
© Copyright Sequent Learning Networks®20
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
© Copyright Sequent Learning Networks®
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
22
For the PM to influence others and assume product (team) leadership, he or she must earn credibility through actions
© Copyright Sequent Learning Networks®
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
© Copyright Sequent Learning Networks®24
Product managers need to integrate, leverage, and synchronize… they cannot do it on their own.
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© Copyright Sequent Learning Networks®
The product team
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Product
Manager
MarketingSales
Regulatory or
Legal
Product
Development
Finance
Supply
Chain
Customer
Service
Operations
© Copyright Sequent Learning Networks®
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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© Copyright Sequent Learning Networks®27
© Copyright Sequent Learning Networks®
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”
© Copyright Sequent Learning Networks®
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
© Copyright Sequent Learning Networks®
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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© Copyright Sequent Learning Networks®
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
© Copyright Sequent Learning Networks®
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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© Copyright Sequent Learning Networks®33
Product managers depend on proven business practices and a usable, relevant reference model.
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© Copyright Sequent Learning Networks®
The Product Management Life Cycle Model
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Areas of Work
Phase-Gate NPD Process
© Copyright Sequent Learning Networks®
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
© Copyright Sequent Learning Networks®
Get the model!
sequentlearning.com/pm-model.php
37
© Copyright Sequent Learning Networks®
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
© Copyright Sequent Learning Networks®
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
39
© Copyright Sequent Learning Networks®40
How the model is used.
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© Copyright Sequent Learning Networks®
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
© Copyright Sequent Learning Networks®
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
© Copyright Sequent Learning Networks®
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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© Copyright Sequent Learning Networks®
Process application with respect to planning
44
• Major new products
• Enhancements
• Blockbusters
Phase 1 Phase 2 Phase 3
Phase 1 Phase 2 Phase 3
Phase 1 Phase 2 Phase 3
© Copyright Sequent Learning Networks®
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
© Copyright Sequent Learning Networks®Page
46
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
© Copyright Sequent Learning Networks®47
PMs need committed, aligned executives to properly govern (guide) Product Management as a business function.
10
© Copyright Sequent Learning Networks®
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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© Copyright Sequent Learning Networks®
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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© Copyright Sequent Learning Networks®50
Thank you!
Steven HainesSequent Learning Networks www.sequentlearning.com
The Product Management Executive Boardwww.productmanagementexecboard.com
+1 212.647.9100