“Leadership is a potent combination of strategy and character. But if you must be without one, be without the strategy.
-General Norman Schwartzkopf
“However beautiful the strategy, you should occasionally look at the results.”
-Winston Churchill
“A good plan, violently executed now, is better than a perfect plan next week.”
-General George S. Patton
“A half-baked strategy well executed will be superior to that marvelous strategy that isn’t very well executed.”
–Allan Gilmour, former Vice Chairman, Ford Motor
“Quality of execution is far more important than the idea.” -Barnett Helzberg, Helzberg Diamonds (bought by Warren Buffett, Berkshire Hathaway)
Strategy shows up in Power Point decks, in corporate brochures, and to the delight of executives, in business publications with their names prominently attached. Great time and effort go into slicing and dicing markets, attempting to find sweet spots, and pontificating at the 100,000 foot level how to grow the biz.
Unfortunately, that which is often neglected is the execution. To unfortunate ends. As anyone reading at the grade school level can attest from the lines above, execution plays a central role to organizational success. This is true of not only military organizations, but those of a business bent as well.
Why then do so many, spend so much, for so long, on something which can yield so little? Particularly if the support and performance aren’t there? Because it’s sexy, that’s why. It’s more interesting to tell your neighbor that you’re a strategist rather than a manager or an operations grinder. And for these folks, by the time the chickens come home to roost, they can simply say that market conditions changed, requiring a change in strategy, and away they go.
As a rock solid PM, you cannot lose sight of the execution tree for the forest that is strategy. Many product lines fail to produce and firms fall because the execution was not present to support the strategy in the Power Point. In other words, without consistent execution, the greatest of strategies becomes expensive slide ware, vapor ware, or any other empty “ware” you care to call it.
Strategy… fine. Execution…. Required!
Saturday, May 24, 2008
Thursday, May 22, 2008
Outside the Box
What a ridiculous phrase within the business world. Likely to be one of the most oft used and trite phrases imaginable. No doubt it’s a top pick in boardroom bingo games across the continent.
Why such derision where these three words are concerned? Because they’re liberally thrown about when events aren’t going as expected. Sales volume not up to par? How do we get outside the box to drive deal velocity. Operations having difficulty containing costs? Let’s focus outside the box and find ways to trim expenses while maintaining product flow. Yak, yak, yak!
Unfortunately, the phrase “outside the box” may be a thin cover for a lack of proficiency inside the box. In other words, when people or firms can’t execute the basics with great consistency, failures occur. Rather than targeting flaws, which means identifying culprits, it’s much easier to say, “Let’s blah, blah, blah outside the box” and boo-ya, problem solved!
When folks hear “outside the box” they forget about proficiency of business principals and instead gaze into the magic 8-ball to divine new, novel, risky, and “unique” solutions. This is done in hopes of diverting attention from the ineptitude that got them into hot water in the first place.
There’s nothing better than confusion and obfuscation to cover one’s bum in hopes of getting lucky with another tactic!
The sad fact is this. By revisiting the fundamentals and exercising them in an expert and consistent fashion, a great many of the individual and business problems raising their ugly heads can be effectively addressed. I’ve been dumbfounded by firms in which I’ve worked, that ignore business basics to their detriment, yet continue chasing the holy grail of “getting outside the box” to improve performance.
Get back in the box! Return to the basics and learn how to do them extraordinarily well. If you can’t execute the fundamentals IN the box with great proficiently, attempting anything complex or fancy outside the box should be considered speculation, not investment and certainly not sound business practice in a great many cases.
Why such derision where these three words are concerned? Because they’re liberally thrown about when events aren’t going as expected. Sales volume not up to par? How do we get outside the box to drive deal velocity. Operations having difficulty containing costs? Let’s focus outside the box and find ways to trim expenses while maintaining product flow. Yak, yak, yak!
Unfortunately, the phrase “outside the box” may be a thin cover for a lack of proficiency inside the box. In other words, when people or firms can’t execute the basics with great consistency, failures occur. Rather than targeting flaws, which means identifying culprits, it’s much easier to say, “Let’s blah, blah, blah outside the box” and boo-ya, problem solved!
When folks hear “outside the box” they forget about proficiency of business principals and instead gaze into the magic 8-ball to divine new, novel, risky, and “unique” solutions. This is done in hopes of diverting attention from the ineptitude that got them into hot water in the first place.
There’s nothing better than confusion and obfuscation to cover one’s bum in hopes of getting lucky with another tactic!
The sad fact is this. By revisiting the fundamentals and exercising them in an expert and consistent fashion, a great many of the individual and business problems raising their ugly heads can be effectively addressed. I’ve been dumbfounded by firms in which I’ve worked, that ignore business basics to their detriment, yet continue chasing the holy grail of “getting outside the box” to improve performance.
Get back in the box! Return to the basics and learn how to do them extraordinarily well. If you can’t execute the fundamentals IN the box with great proficiently, attempting anything complex or fancy outside the box should be considered speculation, not investment and certainly not sound business practice in a great many cases.
Tuesday, May 20, 2008
Tyranny of the Urgent
The nice thing about being a product manager is that you get involved in all kinds of stuff. The bad part of being a product manager… is that you get involved in all kinds of stuff! There’s more work to do in a given day than there is day in which to do it. Everything is important. Even urgent. This is where a product manager has to be careful.
When managers, engineers, or sales people are pinging you for help immediately, it’s easy to get caught up in the “need asap” mode. Unfortunately, there are times when someone’s “need now” is not as important as the overall health of your business. As a product manager, you’ve got to think longer term. Many of the requests you receive, which seemingly must be addressed today will, by next week, be nits.
Conversely, items which don’t appear critical today, may become infinitely more so in a month. By putting off those activities because the deadline isn’t immediate may leave a product manager too little time to act on the greater need. The result could be a product “short” of the resources required to succeed.
The moral of this story? Consider your options. Weigh the opportunity cost of engaging the urgent need at the expense of the critical activity. If you don’t, you may become entangled in a never-ending loop of urgent requests, monopolizing your time like a tyrant pillaging a country even as your product dies.
When managers, engineers, or sales people are pinging you for help immediately, it’s easy to get caught up in the “need asap” mode. Unfortunately, there are times when someone’s “need now” is not as important as the overall health of your business. As a product manager, you’ve got to think longer term. Many of the requests you receive, which seemingly must be addressed today will, by next week, be nits.
Conversely, items which don’t appear critical today, may become infinitely more so in a month. By putting off those activities because the deadline isn’t immediate may leave a product manager too little time to act on the greater need. The result could be a product “short” of the resources required to succeed.
The moral of this story? Consider your options. Weigh the opportunity cost of engaging the urgent need at the expense of the critical activity. If you don’t, you may become entangled in a never-ending loop of urgent requests, monopolizing your time like a tyrant pillaging a country even as your product dies.
Thursday, May 15, 2008
Training Tools
Over the course of the past year, I’ve been slowly absorbing the best practice wisdom published by the Product Development and Management Association (PDMA). Both “The PDMA Toolbook for New Product Development”, Editions 1 and 2, as well as the Journal of Product Innovation Management (JPIM), have been worth the read.
While each resource leans more toward academic best practice than “rubber meets the road” practicality, they do deliver significant wisdom. Throughout each chapter or monthly publication, I’ve gleaned a nugget of information or found some useful tool with which I can further my product’s likelihood of success.
Since I work in new product development and management, rather than managing a mature product or an OEM offering, having the ability to see what others are doing on the front side of the business is helpful. Sometimes the help comes in the form of tools, ideas, or information which is immediately applicable. At others, it’s simply knowing I’m not the only PM suffering (learning!) how to improve the process of bringing new products to market.
Over the years I’ve seen far too many PM’s who, once they become comfortable in their role – stop improving their skill sets. They put it on auto-pilot and coast. I don’t mean this in a bad way, per se, since these PM’s continue to work hard. However, they discontinue searching for, retrieving, and putting to use the knowledge and insight that’s available around them. For PM’s who want to become outstanding, engaging cruise control isn’t the answer.
With that said, there are numerous resources available in the market today. Training on line, in class, during seminars, and the most ubiquitous of all – simply reading. That’s what I’ve been doing a lot of lately and it’s paying off – without even resorting to the use of picture books!
To become a great product manager, just pick up a publication devoted to product management and get going. The PDMA, referenced above, is a good start. There are plenty of other resources from which to choose as well. Google away and get started. Your business and your employer with thank you for it.
While each resource leans more toward academic best practice than “rubber meets the road” practicality, they do deliver significant wisdom. Throughout each chapter or monthly publication, I’ve gleaned a nugget of information or found some useful tool with which I can further my product’s likelihood of success.
Since I work in new product development and management, rather than managing a mature product or an OEM offering, having the ability to see what others are doing on the front side of the business is helpful. Sometimes the help comes in the form of tools, ideas, or information which is immediately applicable. At others, it’s simply knowing I’m not the only PM suffering (learning!) how to improve the process of bringing new products to market.
Over the years I’ve seen far too many PM’s who, once they become comfortable in their role – stop improving their skill sets. They put it on auto-pilot and coast. I don’t mean this in a bad way, per se, since these PM’s continue to work hard. However, they discontinue searching for, retrieving, and putting to use the knowledge and insight that’s available around them. For PM’s who want to become outstanding, engaging cruise control isn’t the answer.
With that said, there are numerous resources available in the market today. Training on line, in class, during seminars, and the most ubiquitous of all – simply reading. That’s what I’ve been doing a lot of lately and it’s paying off – without even resorting to the use of picture books!
To become a great product manager, just pick up a publication devoted to product management and get going. The PDMA, referenced above, is a good start. There are plenty of other resources from which to choose as well. Google away and get started. Your business and your employer with thank you for it.
Monday, May 12, 2008
Hocus, pocus.... focus!
Center. Concentrate. Core. Heart. Nucleus. Rallying point around which a business must congregate in mind and effort in order to succeed. Sports teams and athletes know about focus. They talk about it regularly. They “focus” on it. Why is it that businesses find focus so easy to forget or disregard?
Over the years, PM’ing away, I’ve seen and been a part of organizations which lose focus. They scatter their precious efforts and personnel across a swath of programs looking for that magic bullet, killer app, or market disrupting offering. It can be a little ridiculous to be truthful. It’s as if they take to heart the investor’s mantra…. diversify!
Diversifying your investments can be a good thing. It may reduce risk, particularly if you’re not an artful investor. But if you’re running a business or product, you have to establish business focus. Else your product may wander like a rudderless ship in a storm. The ride may be exciting, but the ending isn’t likely to be pleasant.
Management teams are often afraid that not pursuing all opportunities may mean missing the one big thing. Hence, they try to be all things to all markets. Doing so results in being little to any. Yet, executives frequently like to follow this shotgun approach despite less than noteworthy results yielded time and again.
Warren Buffet tells his investment partners (shareholders) to put big bets on sure things. He has little trouble in putting most of his eggs in a single basket – well understood of course – and reaping big benefits. He’s proven remarkably adept at it.
His big bets are chosen on the basis of value, not popularity. And he keeps a keen eye on limiting risk to his capital. You can’t invest in this manner unless you are focused. As product managers, it is our job to make decisions based upon the value-add of our products, not industry fad or “follow me” decision making. And we should make those decisions in a risk averse manner to the best of our abilities. Thus, we need focus.
PM’s should make every effort to prevent products from wandering due to strict adherence to executive scatter-gunning dictums. This means educating, advocating, persisting, and above all focusing on the interests of the business. Our business. We own it. We are responsible for it. We must direct it.
Otherwise, the alternative for our products is chance, fate, or whatever hocus-pocus and mumbo-jumbo that can be ginned up. Consequently, the business becomes little more than speculative in which case, close up the shop, head for the casinos, and bet it all on black. At least that may be entertaining.
Over the years, PM’ing away, I’ve seen and been a part of organizations which lose focus. They scatter their precious efforts and personnel across a swath of programs looking for that magic bullet, killer app, or market disrupting offering. It can be a little ridiculous to be truthful. It’s as if they take to heart the investor’s mantra…. diversify!
Diversifying your investments can be a good thing. It may reduce risk, particularly if you’re not an artful investor. But if you’re running a business or product, you have to establish business focus. Else your product may wander like a rudderless ship in a storm. The ride may be exciting, but the ending isn’t likely to be pleasant.
Management teams are often afraid that not pursuing all opportunities may mean missing the one big thing. Hence, they try to be all things to all markets. Doing so results in being little to any. Yet, executives frequently like to follow this shotgun approach despite less than noteworthy results yielded time and again.
Warren Buffet tells his investment partners (shareholders) to put big bets on sure things. He has little trouble in putting most of his eggs in a single basket – well understood of course – and reaping big benefits. He’s proven remarkably adept at it.
His big bets are chosen on the basis of value, not popularity. And he keeps a keen eye on limiting risk to his capital. You can’t invest in this manner unless you are focused. As product managers, it is our job to make decisions based upon the value-add of our products, not industry fad or “follow me” decision making. And we should make those decisions in a risk averse manner to the best of our abilities. Thus, we need focus.
PM’s should make every effort to prevent products from wandering due to strict adherence to executive scatter-gunning dictums. This means educating, advocating, persisting, and above all focusing on the interests of the business. Our business. We own it. We are responsible for it. We must direct it.
Otherwise, the alternative for our products is chance, fate, or whatever hocus-pocus and mumbo-jumbo that can be ginned up. Consequently, the business becomes little more than speculative in which case, close up the shop, head for the casinos, and bet it all on black. At least that may be entertaining.
Saturday, May 10, 2008
Rule of Thumb and Law of Fat
PM’s are frequently asked to assess business opportunities such as opportunity / cost, partnership analysis, and office football pools. We’re generally pressed for time – particularly on the football pool. Therefore, it’s helpful to filter the fluff and take a defensible analytical swag (some wild ass guess) up front. This can save you from investing considerable work only to find later there was no chance in the first place. For this, Rules of Thumb and The Law of Fat are handy.
Rules of thumb are as advertised. They involve the basics – addition, subtraction, multiplication, division, and rounding. They provide a dash of estimation that’s, “close enough for government work”. Knowing your business intimately from one end of the value chain to the other is crucial for this to play out properly.
The long and short of it goes like this. Run approximate numbers quickly in your head or with a pencil and paper. By hitting only the pertinent points, for instance, sales volumes and average sales prices for revenue relative to approximate costs to deliver and you can determine whether or not there’s much “fat” in the deal.
Mr. Pareto is helpful here. If you get round figures that capture 80% or more of the deal attributes without breaking a sweat, that’ll work.
Once you’ve conjured up your estimate, check to see how it stacks up relative your company’s revenue, margin, or ROI targets which you should know. If this comparison shows the deal will fly easily, you’re probably in the chips. There’s plenty of fat to cushion the unexpected. However, if you discover a rough cut requires running your calculations to two or three decimal places to see if it works, then walk away.
When the estimates to make the deal work are close enough that precise models are required to justify the business, there isn’t enough room in the business for error. If the financial math must pencil exactly to work, then the program must work perfectly in real life if your product is going to make money. How often does a perfectly run product or program happen? Never. Therefore, you need plenty of fat if you’re going to mint money and that’s why it’s a Law.
With quick Rules of Thumb and the Law of the Fat, you can readily filter ideas landing on your desk. Using simple math can help you determine the high level merit of the business without cycling up your three product management brain cells for a full analysis. This will leave you more time for the important work of analyzing your football picks!
Rules of thumb are as advertised. They involve the basics – addition, subtraction, multiplication, division, and rounding. They provide a dash of estimation that’s, “close enough for government work”. Knowing your business intimately from one end of the value chain to the other is crucial for this to play out properly.
The long and short of it goes like this. Run approximate numbers quickly in your head or with a pencil and paper. By hitting only the pertinent points, for instance, sales volumes and average sales prices for revenue relative to approximate costs to deliver and you can determine whether or not there’s much “fat” in the deal.
Mr. Pareto is helpful here. If you get round figures that capture 80% or more of the deal attributes without breaking a sweat, that’ll work.
Once you’ve conjured up your estimate, check to see how it stacks up relative your company’s revenue, margin, or ROI targets which you should know. If this comparison shows the deal will fly easily, you’re probably in the chips. There’s plenty of fat to cushion the unexpected. However, if you discover a rough cut requires running your calculations to two or three decimal places to see if it works, then walk away.
When the estimates to make the deal work are close enough that precise models are required to justify the business, there isn’t enough room in the business for error. If the financial math must pencil exactly to work, then the program must work perfectly in real life if your product is going to make money. How often does a perfectly run product or program happen? Never. Therefore, you need plenty of fat if you’re going to mint money and that’s why it’s a Law.
With quick Rules of Thumb and the Law of the Fat, you can readily filter ideas landing on your desk. Using simple math can help you determine the high level merit of the business without cycling up your three product management brain cells for a full analysis. This will leave you more time for the important work of analyzing your football picks!
Friday, May 9, 2008
Pilots and Product Managers
In, “Poor Charlie’s Almanac,” the less renowned half of the Berkshire Hathaway investing duo, Charles Munger, posits that the best training for business is actually provided to pilots. How can that be? Very good question! Had I not been a flight instructor who eventually entered business as a product manager, my answer may not have been given with a straight face.
Pilots must know a diversity of information. They are expected to understand and apply it in real time. They need do so in an integrated manner to ensure success. Success, by the way, is not crashing the plane!
A pilot must grasp weather, aerodynamics, and aircraft systems, for instance. All are seemingly unrelated topics. If one were to be an expert in meteorology only, flying success would be fleeting. The same is true for individuals who are “only” aerodynamicists or mechanics. Solid, crash-free pilots they would not be.
Weather conditions like density altitude, or air density related to temperature, pressure, and humidity, affect the flying characteristics of airplanes. The higher the density altitude, the greater the air velocity across the wing needed to generate lift i.e., you need more speed and require a longer runway to get there. Likewise, the higher the density altitude, the less fuel is required within a carbureted engine to obtain maximum power. Operating the engine with a fuel / air mixture that is too rich for the density altitude will also adversely affect takeoff performance.
Without interactional understanding of such disciplines, a pilot attempting to take off from a field that is too short for the conditions may fail with terrible consequences. In other words, he runs out of runway before gaining enough airspeed for takeoff. This is a wonderful method for making the evening news but for all the wrong reasons.
Like pilots, product managers must have command of many disciplines. Furthermore, we must understand how these specializations relate if we are to succeed in our craft. Being financially astute yet ignorant of customer needs because our research was poor may yield cost constrained, feature deficient products the market does not want. Not understanding trade-offs between engineering development schedules and time to market consequences can result in market demand going unmet when products are delivered late or with significant defects.
Pilots must synthesize weather, human physiology, aerodynamics, aircraft systems, performance, navigation, communication, and decision-making within real time environments on each flight. Likewise, product managers must integrate research, development, finance, manufacturing, sales, marketing, legal, and service disciplines every day. Failure to grasp the interrelatedness in either the cockpit or conference room may have profoundly unfortunate consequences for the principal.
Charles Munger, one of the foremost investors of our time, believes the best education for the boardroom (and the PM) is the interdisciplinary training pilots receive. Having set foot in both worlds, I think Charlie’s on to something!
Pilots must know a diversity of information. They are expected to understand and apply it in real time. They need do so in an integrated manner to ensure success. Success, by the way, is not crashing the plane!
A pilot must grasp weather, aerodynamics, and aircraft systems, for instance. All are seemingly unrelated topics. If one were to be an expert in meteorology only, flying success would be fleeting. The same is true for individuals who are “only” aerodynamicists or mechanics. Solid, crash-free pilots they would not be.
Weather conditions like density altitude, or air density related to temperature, pressure, and humidity, affect the flying characteristics of airplanes. The higher the density altitude, the greater the air velocity across the wing needed to generate lift i.e., you need more speed and require a longer runway to get there. Likewise, the higher the density altitude, the less fuel is required within a carbureted engine to obtain maximum power. Operating the engine with a fuel / air mixture that is too rich for the density altitude will also adversely affect takeoff performance.
Without interactional understanding of such disciplines, a pilot attempting to take off from a field that is too short for the conditions may fail with terrible consequences. In other words, he runs out of runway before gaining enough airspeed for takeoff. This is a wonderful method for making the evening news but for all the wrong reasons.
Like pilots, product managers must have command of many disciplines. Furthermore, we must understand how these specializations relate if we are to succeed in our craft. Being financially astute yet ignorant of customer needs because our research was poor may yield cost constrained, feature deficient products the market does not want. Not understanding trade-offs between engineering development schedules and time to market consequences can result in market demand going unmet when products are delivered late or with significant defects.
Pilots must synthesize weather, human physiology, aerodynamics, aircraft systems, performance, navigation, communication, and decision-making within real time environments on each flight. Likewise, product managers must integrate research, development, finance, manufacturing, sales, marketing, legal, and service disciplines every day. Failure to grasp the interrelatedness in either the cockpit or conference room may have profoundly unfortunate consequences for the principal.
Charles Munger, one of the foremost investors of our time, believes the best education for the boardroom (and the PM) is the interdisciplinary training pilots receive. Having set foot in both worlds, I think Charlie’s on to something!
Thursday, May 8, 2008
Ditch that customer!
Finally! Someone sees things the way I have for quite a while. Since my first year as a PM, I’ve told people the old axiom, “The customer is always right,”…isn’t always true. Insurance firms have known this for years.
Now the Harvard Business Review, April 2008 edition, “The Right Way to Manage Unprofitable Customers”, has researched the issue and verified my perspective. Ahhh, vindication!
People, regardless of characteristic e.g., height, IQ, poor dance skills (me!), fall along a continuum. On one end are those folks who have a great deal of said characteristic. At the other are people completely lacking it. With this in mind, customers who, near as I can tell are also people, reside on a continuum ranging from low maintenance, high profit on one end to high maintenance, no profit at the other.
Smart businesses and PMs realize this fact and find ways to determine the point on the continuum at which a customer is break-even. In other words, the cost of the customer’s care and feeding is just high enough to perfectly offset any profits they may otherwise provide. Anything below that point and the customer costs the business money. Unless you’re the government or a philanthropist, this is not the best strategy for long-term success. So what should you do?
As a young PM, my initial reaction was to say, “Ditch ‘em! If they’re costing my product money, I don’t need ‘em”. Not the most prudent counsel a body can give. Thank goodness for age, guile, and a few reading skills! The HBR piece provides sage advice – at least it’s more responsible than my youthful PM reaction.
The authors provide a strategy for reviewing the customer’s status and determining how best to address it. Within the framework of a simple, 5-step process, the business should assess the relationship, provide customer education if needed, renegotiate the value proposition of the business arrangement if warranted, and migrate customers to other vendors if possible. Then, failing all else, carefully terminate the relationship.
Of course, terminating a relationship may have pitfalls. Customers who are not let go may fear they’re next and seek other vendors to be safe. If enough customers are divested, the firm may need to downsize, losing valuable institutional knowledge as people resources are let go. Worse, divested customers may spread the word about being slighted. While the first two issues might be valid, the last may be less so. Another old adage states, “Birds of a feather flock together.”
So, if you feel as a PM that an unruly or costly customer is worthy of divestment, don’t fret much about negative word of mouth. If one unprofitable customer who is invited to leave tells his friends, it’s likely his friends are costly to your business as well. Not getting entangled with them because they’ve been warned off by their gold digging and newly divested comrades may be one of the best moves your business can make!
Now the Harvard Business Review, April 2008 edition, “The Right Way to Manage Unprofitable Customers”, has researched the issue and verified my perspective. Ahhh, vindication!
People, regardless of characteristic e.g., height, IQ, poor dance skills (me!), fall along a continuum. On one end are those folks who have a great deal of said characteristic. At the other are people completely lacking it. With this in mind, customers who, near as I can tell are also people, reside on a continuum ranging from low maintenance, high profit on one end to high maintenance, no profit at the other.
Smart businesses and PMs realize this fact and find ways to determine the point on the continuum at which a customer is break-even. In other words, the cost of the customer’s care and feeding is just high enough to perfectly offset any profits they may otherwise provide. Anything below that point and the customer costs the business money. Unless you’re the government or a philanthropist, this is not the best strategy for long-term success. So what should you do?
As a young PM, my initial reaction was to say, “Ditch ‘em! If they’re costing my product money, I don’t need ‘em”. Not the most prudent counsel a body can give. Thank goodness for age, guile, and a few reading skills! The HBR piece provides sage advice – at least it’s more responsible than my youthful PM reaction.
The authors provide a strategy for reviewing the customer’s status and determining how best to address it. Within the framework of a simple, 5-step process, the business should assess the relationship, provide customer education if needed, renegotiate the value proposition of the business arrangement if warranted, and migrate customers to other vendors if possible. Then, failing all else, carefully terminate the relationship.
Of course, terminating a relationship may have pitfalls. Customers who are not let go may fear they’re next and seek other vendors to be safe. If enough customers are divested, the firm may need to downsize, losing valuable institutional knowledge as people resources are let go. Worse, divested customers may spread the word about being slighted. While the first two issues might be valid, the last may be less so. Another old adage states, “Birds of a feather flock together.”
So, if you feel as a PM that an unruly or costly customer is worthy of divestment, don’t fret much about negative word of mouth. If one unprofitable customer who is invited to leave tells his friends, it’s likely his friends are costly to your business as well. Not getting entangled with them because they’ve been warned off by their gold digging and newly divested comrades may be one of the best moves your business can make!
Wednesday, May 7, 2008
Plight of the PM
A product manager is the center of everything, yet directly controls nothing. People look to the PM for information and direction yet generally, no-one reports to her. When folks need something, the PM represents the “business unit” or BU. The PM is the bulwark against market uncertainty and the filter through which pertinent information flows. She is the wise decision maker who guides the product to fruitfulness and corporate praise. Right.
When peeps, frequently a cast of thousands, take issue with a PM, then she’s “marketing”… derogatorily speaking, of course. An airline pilot friend of mine said that “marketing comprised the five dumbest people in the company.” I thought this was pretty funny. Then I got into product management or marketing when things don’t go according to someone’s plan. Not so funny, now. Although I will admit, some days it feels like I’m one of the five dumbest people in the company. Don’t tell engineering I said that, though!
Because of this beautiful dynamic, I’m been asked by new PM’s how to proceed. With lots of adult beverages is my sage advice! Actually, I just had this conversation with a new PM (in position less than 1 year) who had been sucked into the marketing vs BU abyss by a technical colleague. Truthfully, I had to ponder the question before answering. What have I done when faced with an abrasive engineer who didn’t take guidance from “marketing”?
The best advice I could provide was to ensure the conversation revolved around the business. Building groovy technology, then figuring out how to sell it doesn’t work out well. It’s more productive to learn what groovy product you can sell, then figure how to build it. With this in mind, my response to said young PM was, “Focus on the customer.” Her needs drive the business which in turn dictates what is built.
As long as the PM has strong command of market information, customer needs, and the associated dollars, the decision making will hinge on data-driven information. Facts are harder to dispute than opinion and readily defended if something goes amiss. Furthermore, when things go swimmingly for the business, data-driven decision practices can be duplicated for future success. As a bonus, the PM retains title of “BU” where engineering is concerned.
Conversely, if the PM allows the conversation to dive into the technical weeds, devolving into engineering vs marketing opinion rather than facts related to revenue, she risks becoming irrelevant. This is bad.
What’s worse is the business drifts into feel good development and technology garage activity. Development considers this more interesting. Unfortunately, doing so departs from disciplined decision making that improves the odds of long-run success.
As a former flight instructor, the training mantra was, “Good information leads to good decisions.” For new PM’s, and those of us who aren’t so shiny, this rule is important. If the new PM becomes marketing, business, and customer savvy about her product and directs that knowledge with commanding presence, she trades the moniker of “marketing” for the more valuable title of "Business Unit". More importantly, she’ll build a better business.
When peeps, frequently a cast of thousands, take issue with a PM, then she’s “marketing”… derogatorily speaking, of course. An airline pilot friend of mine said that “marketing comprised the five dumbest people in the company.” I thought this was pretty funny. Then I got into product management or marketing when things don’t go according to someone’s plan. Not so funny, now. Although I will admit, some days it feels like I’m one of the five dumbest people in the company. Don’t tell engineering I said that, though!
Because of this beautiful dynamic, I’m been asked by new PM’s how to proceed. With lots of adult beverages is my sage advice! Actually, I just had this conversation with a new PM (in position less than 1 year) who had been sucked into the marketing vs BU abyss by a technical colleague. Truthfully, I had to ponder the question before answering. What have I done when faced with an abrasive engineer who didn’t take guidance from “marketing”?
The best advice I could provide was to ensure the conversation revolved around the business. Building groovy technology, then figuring out how to sell it doesn’t work out well. It’s more productive to learn what groovy product you can sell, then figure how to build it. With this in mind, my response to said young PM was, “Focus on the customer.” Her needs drive the business which in turn dictates what is built.
As long as the PM has strong command of market information, customer needs, and the associated dollars, the decision making will hinge on data-driven information. Facts are harder to dispute than opinion and readily defended if something goes amiss. Furthermore, when things go swimmingly for the business, data-driven decision practices can be duplicated for future success. As a bonus, the PM retains title of “BU” where engineering is concerned.
Conversely, if the PM allows the conversation to dive into the technical weeds, devolving into engineering vs marketing opinion rather than facts related to revenue, she risks becoming irrelevant. This is bad.
What’s worse is the business drifts into feel good development and technology garage activity. Development considers this more interesting. Unfortunately, doing so departs from disciplined decision making that improves the odds of long-run success.
As a former flight instructor, the training mantra was, “Good information leads to good decisions.” For new PM’s, and those of us who aren’t so shiny, this rule is important. If the new PM becomes marketing, business, and customer savvy about her product and directs that knowledge with commanding presence, she trades the moniker of “marketing” for the more valuable title of "Business Unit". More importantly, she’ll build a better business.
Tuesday, May 6, 2008
How Does One Become a Product Manager?
Usually by accident. Seriously.
To the best of my knowledge, which may be limited, there is only one university in the U.S. that provides a Product Management training curriculum resulting in a degree. The rest of us landed those jobs because we:
1) Didn’t know any better
2) Had incriminating photos of hiring managers and extorted our way in
3) Were “drafted” since there were no other eligible i.e., warm, breathing bodies available
4) Sort of knew what was up and decided to do it anyway because hey, it might work out.
I believe I most closely approximated number 4.
Up until about 6 months before I embarked upon my first PM gig, I didn’t even know what a PM was. I’d never heard of one. Didn’t have the foggiest notion of what a PM did and likely confused Product Manager with Project Manager to the same extent everyone else I know does now.
Fortunately, I had luck on my side. I was working as a technical writer which put me in close proximity to some low-level product managers, one of whom left his role to take a flying job. That’s right – he gave up the glory that is product management for hours of unending boredom punctuated by moments of stark terror as a commuter airline pilot. Gotta wonder about that call, right? Anyhow, it worked out well for me. I was able to take my partially baked MBA, along with some previous advertising and sales experience, and train it on the role of product manager… as soon as I figured out what it was.
Other PM’s I’ve had the great good fortune to know have similar stories to tell. They moved into the role from an engineering position or popped onto the PM radar screen from marketing, business development, or operations. What all these folks have had in common is this…. none had any formal training as product managers prior to entering the field. That’s right. People with little idea about what they were doing were given multi-million dollar businesses and told to “go make money with ‘em!”
P.J. O’Rourke, author of “Parliament of Whores” said of politicians that, “Giving them power and money was like giving teenage boys a bottle of whiskey and the keys to the car.”
In many cases, that’s an accurate portrayal of the installation of new PMs. There may be lots of enthusiasm and bravado about their role, but little real knowledge of how to behave with the responsibility given them. It’s little wonder that outstanding PM’s who can truly manage the value chain, drive positive products to their customers, and generate large American dollars for their corporations aren’t more common – at least not early in their career paths.
What’s an aspiring PM to do? Shoot, how is a barely new or even seasoned PM to respond to such an inauspicious start? Hopefully you’ll read on as this blog unfolds. It certainly won’t be a complete owner’s manual to Product Management, but hopefully the mistakes, misfortunes, and successes that have been experienced over the years - by me and others – will enlighten, entertain, and educate all of us in the world of product management in the belief that when one teaches, two learn. Or in this case, many teach, even more learn, and all prosper. Hopefully.
To the best of my knowledge, which may be limited, there is only one university in the U.S. that provides a Product Management training curriculum resulting in a degree. The rest of us landed those jobs because we:
1) Didn’t know any better
2) Had incriminating photos of hiring managers and extorted our way in
3) Were “drafted” since there were no other eligible i.e., warm, breathing bodies available
4) Sort of knew what was up and decided to do it anyway because hey, it might work out.
I believe I most closely approximated number 4.
Up until about 6 months before I embarked upon my first PM gig, I didn’t even know what a PM was. I’d never heard of one. Didn’t have the foggiest notion of what a PM did and likely confused Product Manager with Project Manager to the same extent everyone else I know does now.
Fortunately, I had luck on my side. I was working as a technical writer which put me in close proximity to some low-level product managers, one of whom left his role to take a flying job. That’s right – he gave up the glory that is product management for hours of unending boredom punctuated by moments of stark terror as a commuter airline pilot. Gotta wonder about that call, right? Anyhow, it worked out well for me. I was able to take my partially baked MBA, along with some previous advertising and sales experience, and train it on the role of product manager… as soon as I figured out what it was.
Other PM’s I’ve had the great good fortune to know have similar stories to tell. They moved into the role from an engineering position or popped onto the PM radar screen from marketing, business development, or operations. What all these folks have had in common is this…. none had any formal training as product managers prior to entering the field. That’s right. People with little idea about what they were doing were given multi-million dollar businesses and told to “go make money with ‘em!”
P.J. O’Rourke, author of “Parliament of Whores” said of politicians that, “Giving them power and money was like giving teenage boys a bottle of whiskey and the keys to the car.”
In many cases, that’s an accurate portrayal of the installation of new PMs. There may be lots of enthusiasm and bravado about their role, but little real knowledge of how to behave with the responsibility given them. It’s little wonder that outstanding PM’s who can truly manage the value chain, drive positive products to their customers, and generate large American dollars for their corporations aren’t more common – at least not early in their career paths.
What’s an aspiring PM to do? Shoot, how is a barely new or even seasoned PM to respond to such an inauspicious start? Hopefully you’ll read on as this blog unfolds. It certainly won’t be a complete owner’s manual to Product Management, but hopefully the mistakes, misfortunes, and successes that have been experienced over the years - by me and others – will enlighten, entertain, and educate all of us in the world of product management in the belief that when one teaches, two learn. Or in this case, many teach, even more learn, and all prosper. Hopefully.
On Being a Product Manager
Product management has been my field of choice for 6 of the past 9 years. The other 3 were spent on a form of sabbatical which yielded nice business and sales lessons but weren’t altogether monetarily enriching (read, boondoggle). Fortunately, I found those lessons to be useful in my return to this illustrious and sometimes infamous profession known as product management.
I’ve been asked what a product manager is – usually because people confuse product management with project management. My response has been that a PM is like a mini CEO. He’s the master of his own business… almost. He sets business direction, builds strategy, and hob-knobs with executives. He also has no employees and he doesn’t deal with Wall Street. A pretty sweet deal, indeed.
On the other hand, the PM gets cussed by engineering for directing them to build things they don’t want to, hounded by manufacturing for forecasts (guesses?) that are never right, and harassed by account reps who wonder why their huge deal fell apart because the price the PM placed upon the widget is far too high…. In other words, the PM actually wanted to charge somebody for it. Go figure.
What’s a project manager? Well, he chases down program milestones the way my neighbor’s kids herd cats - loudly and with little success.
So what’s the thrill in being a PM? You, more than anyone but the CEO, get to see the entire company, from end-to-end, and everything that happens within it. This is actually rather cool.
As PM you become familiar with all pieces of the value chain required to bring your product to market and make money. It’s been said that position determines perspective and in this case, the perspective of a PM is quite vast because the position is at the top of the heap… your product being the heap, of course.
What then, is the downside of being a PM, you ask? You get to see the entire company from end-to-end along with everything that happens within it. Some days it’s like an alimentary canal… all appetite at the front end, no clear idea about what goes on in the middle, and a odiferous aroma at the end.
It’s been said that ignorance is bliss, but the visibility a PM enjoys generally nullifies ignorance – unless of course he’s working at being ignorant. Not recommended for career length PM employment, by the way. While blissful ignorance may be highly prized in the mind of a stressed PM, in practice it is best left for happy hour ruminations irrespective of the insanity you may be facing at the moment.
Long story short, a PM’s life is diverse, intense, frustrating, and rewarding. And that may be before the first cup of coffee is drained on Monday morning and the Outlook calendar has reminded you of your 8 a.m. con call with the good folks building your widgets in Singapore. Ah, the life of a PM… gotta love it!
I’ve been asked what a product manager is – usually because people confuse product management with project management. My response has been that a PM is like a mini CEO. He’s the master of his own business… almost. He sets business direction, builds strategy, and hob-knobs with executives. He also has no employees and he doesn’t deal with Wall Street. A pretty sweet deal, indeed.
On the other hand, the PM gets cussed by engineering for directing them to build things they don’t want to, hounded by manufacturing for forecasts (guesses?) that are never right, and harassed by account reps who wonder why their huge deal fell apart because the price the PM placed upon the widget is far too high…. In other words, the PM actually wanted to charge somebody for it. Go figure.
What’s a project manager? Well, he chases down program milestones the way my neighbor’s kids herd cats - loudly and with little success.
So what’s the thrill in being a PM? You, more than anyone but the CEO, get to see the entire company, from end-to-end, and everything that happens within it. This is actually rather cool.
As PM you become familiar with all pieces of the value chain required to bring your product to market and make money. It’s been said that position determines perspective and in this case, the perspective of a PM is quite vast because the position is at the top of the heap… your product being the heap, of course.
What then, is the downside of being a PM, you ask? You get to see the entire company from end-to-end along with everything that happens within it. Some days it’s like an alimentary canal… all appetite at the front end, no clear idea about what goes on in the middle, and a odiferous aroma at the end.
It’s been said that ignorance is bliss, but the visibility a PM enjoys generally nullifies ignorance – unless of course he’s working at being ignorant. Not recommended for career length PM employment, by the way. While blissful ignorance may be highly prized in the mind of a stressed PM, in practice it is best left for happy hour ruminations irrespective of the insanity you may be facing at the moment.
Long story short, a PM’s life is diverse, intense, frustrating, and rewarding. And that may be before the first cup of coffee is drained on Monday morning and the Outlook calendar has reminded you of your 8 a.m. con call with the good folks building your widgets in Singapore. Ah, the life of a PM… gotta love it!
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