Dilemma: Agile Product Managers and Product Owners Product Camp NYC Rich Mironov, CMO, Enthiosys [email_address]

An Unapologetic Product Guy CMO at Enthiosys, agile product mgmt consultancy Business models/pricing, roadmaps Innovation Games ® and customer needs Agile transformation, interim PM executive Repeat offender at software prod mgmt “ The Art of Product Management” Chair of Agile ‘09 track PMs/POs Founded P-Camp

CMO at Enthiosys, agile product mgmt consultancy

Business models/pricing, roadmaps

Innovation Games ® and customer needs

Agile transformation, interim PM executive

Repeat offender at software prod mgmt

“ The Art of Product Management”

Chair of Agile ‘09 track PMs/POs

Founded P-Camp

Agenda Context, context, context Why talk about product managers versus product owners? What does a product manager do? What is a product owner? How did we get here? Recommendations

Context, context, context

Why talk about product managers versus product owners?

What does a product manager do?

What is a product owner? How did we get here?

Recommendations

Disjoint Communities Product Managers Agile Community Nearly empty, very lonely

Product Owner? Product Manager? Most agilists think about “product owners” Formal part of agile team Needs to be physically present Driving user stories and sub-iteration decisions Showcases provide primary customer input Most product managers are not agilists Majority of work to deliver products (revenue) happens outside Engineering Markets must be experienced directly, not filtered through Sales or execs Servicing multiple inbound and outbound queues

Most agilists think about “product owners”

Formal part of agile team

Needs to be physically present

Driving user stories and sub-iteration decisions

Showcases provide primary customer input

Most product managers are not agilists

Majority of work to deliver products (revenue) happens outside Engineering

Markets must be experienced directly, not filtered through Sales or execs

Servicing multiple inbound and outbound queues

Where Does Product Management Fit? Mktg & Sales market information , priorities, requirements, roadmaps, MRDs, personas, user stories… software strategy, forecasts, commitments, roadmaps, competitive intelligence budgets, staff, targets Field input, Market feedback Segmentation, messages, benefits/features, pricing, qualification, demos… Markets & Customers Development Executives Product Management

Product Management Planning Horizons Daily Sprint Strategy Portfolio Product Release Exec PM Dev Team 2 wk 2-9 mon many mons years many years

Pragmatic Marketing ® Framework Strategic Tactical Less Technical More Technical © 1993-2009 Pragmatic Marketing, Inc. All rights reserved Pricing Buy, Build or Partner Operational Metrics Business Case Sales Process Product Portfolio Market Requirements Market Sizing Marketing Plan Product Roadmap Customer Acquisition Market Research Market Problems Distinctive Competence Product Performance Customer Retention Positioning Launch Plan Thought Leaders Use Scenarios Innovation Success Stories Presentations & Demos Win/Loss Analysis Competitive Write-Up Event Support Channel Training Collateral & Sales Tools White Papers User Personas “ Special” Calls Release Milestones Answer Desk Technology Assessment Competitive Analysis Lead Generation Buyer Personas Market Analysis Product Strategy Program Strategy Product Planning Quantitative Analysis Channel Support Sales Readiness

Pragmatic Marketing ® Framework © 1993-2009 Pragmatic Marketing, Inc. All rights reserved Pricing Buy, Build or Partner Operational Metrics Business Case Sales Process Product Portfolio Market Requirements Market Sizing Marketing Plan Product Roadmap Customer Acquisition Market Research Market Problems Distinctive Competence Product Performance Customer Retention Positioning Launch Plan Thought Leaders Use Scenarios Innovation Success Stories Presentations & Demos Win/Loss Analysis Competitive Write-Up Event Support Channel Training Collateral & Sales Tools White Papers User Personas “ Special” Calls Release Milestones Answer Desk Technology Assessment Competitive Analysis Lead Generation Buyer Personas Market Analysis Product Strategy Program Strategy Product Planning Quantitative Analysis Channel Support Sales Readiness Dir, Prod Strategy Tech Prod Mgr Prod Mktg Mgr

What Does a Product Owner Do? “ In Scrum, a single person must have final authority representing the customer's interest in backlog prioritization and requirements questions. This person must be available to the team at any time , especially during the sprint planning meeting and the sprint review meeting.” Responsible for Defining the features of the product Deciding release date and content Profitability of the product (ROI?) Prioritizing features according to market value Changing features and priority between iterations Accepting or rejecting work results How developers define product management

“ In Scrum, a single person must have final authority representing the customer's interest in backlog prioritization and requirements questions. This person must be available to the team at any time , especially during the sprint planning meeting and the sprint review meeting.”

Responsible for

Defining the features of the product

Deciding release date and content

Profitability of the product (ROI?)

Prioritizing features according to market value

Changing features and priority between iterations

Accepting or rejecting work results

How developers define product management

Product Owner Must Be… Omniscient Represent true market needs without spending a lot of time “in the field” Manage complexities of detailed stories as well as marketplace financial tradeoffs IMO very difficult to do solo, nearly impossible without some product management experience

Omniscient

Represent true market needs without spending a lot of time “in the field”

Manage complexities of detailed stories as well as marketplace financial tradeoffs

IMO very difficult to do solo, nearly impossible without some product management experience

Product Owner’s Calendar Borrowed from Catherine Connor, Rally

Much More to Do Product Owner role adds 40-60% more work for a traditional product manager It was already hard to tell your boss how you spend your time Many PMs don’t recognize how stretched they really are Not just whiners and shirkers

Product Owner role adds 40-60% more work for a traditional product manager

It was already hard to tell your boss how you spend your time

Many PMs don’t recognize how stretched they really are

Not just whiners and shirkers

Two Sizes of Product Owner “ small p” product owner Focus on iterations (rather than releases) User story elaboration, backlog management Available to dev team hour by hour Customer showcase (rather than market research) Internal recruit, often little product management experience “ Big P” Product Owner, aka CPO Strategic view of customers, profitability, markets Sets broad direction, owns resource allocation Deep experience with customer segments My experience, “Big P” Product Owners call themselves: VP Product Management VP/GM of Business Unit VP Engineering

“ small p” product owner

Focus on iterations (rather than releases)

User story elaboration, backlog management

Available to dev team hour by hour

Customer showcase (rather than market research)

Internal recruit, often little product management experience

“ Big P” Product Owner, aka CPO

Strategic view of customers, profitability, markets

Sets broad direction, owns resource allocation

Deep experience with customer segments

My experience, “Big P” Product Owners call themselves:

VP Product Management

VP/GM of Business Unit

VP Engineering

PO/PM Organizational Map GM - VP PM - VP Eng/CTO product owners Product Management Organization more technical more market-focused

“ small p” product owner Development customer information, priorities, requirements, roadmaps, personas, user stories… software Marketing/Sales Customers Executives product owner

“ small p” product owner product owner Pricing Buy, Build or Partner Operational Metrics Business Case Sales Process Product Portfolio Market Requirements Market Sizing Marketing Plan Product Roadmap Customer Acquisition Market Research Market Problems Distinctive Competence Product Performance Customer Retention Positioning Launch Plan Thought Leaders Use Scenarios Innovation Success Stories Presentations & Demos Win/Loss Analysis Competitive Write-Up Event Support Channel Training Collateral & Sales Tools White Papers User Personas “ Special” Calls Release Milestones Answer Desk Technology Assessment Competitive Analysis Lead Generation Buyer Personas Market Analysis Product Strategy Program Strategy Product Planning Quantitative Analysis Channel Support Sales Readiness

Product Owner Focus Intensive focus on iterations and daily processes Frequent backlog prioritization according to market value Detailed user stories and acceptance criteria Blocking issues Iteration content and release content Accepting or rejecting work results Very limited time for cross-functional activities.. Review (or write) product descriptions and data sheet copy Unit/revenue forecasts, sales analysis for exec team Review (or design) sales qualification checklists Pitch product to customers onsite or in the field Help with pricing “specials” that reflect market’s value perception Repeatedly brief Support, Legal, Channel Sales, PR, Marcom

Intensive focus on iterations and daily processes

Frequent backlog prioritization according to market value

Detailed user stories and acceptance criteria

Blocking issues

Iteration content and release content

Accepting or rejecting work results

Very limited time for cross-functional activities..

Review (or write) product descriptions and data sheet copy

Unit/revenue forecasts, sales analysis for exec team

Review (or design) sales qualification checklists

Pitch product to customers onsite or in the field

Help with pricing “specials” that reflect market’s value perception

Repeatedly brief Support, Legal, Channel Sales, PR, Marcom

Context and Solo Models A seasoned Agile Product Manager can also be a Product Owner Cover both roles for one moderately complex product Heroically for two products? A Seasoned Product Owner can not also be a Product Manager Outbound coordination and Sales/Marketing/Field role don’t fit into schedule Best: Single organization for both PMs and POs Best: Collocated PMs and POs/TPMs (40% / 60%) Tough: HQ PM, remote PO with each dev team

A seasoned Agile Product Manager can also be a Product Owner

Cover both roles for one moderately complex product

Heroically for two products?

A Seasoned Product Owner can not also be a Product Manager

Outbound coordination and Sales/Marketing/Field role don’t fit into schedule

Best: Single organization for both PMs and POs

Best: Collocated PMs and POs/TPMs (40% / 60%)

Tough: HQ PM, remote PO with each dev team

Scalable PM/PO Models Small product, co-located team Agile product manager is the product owner Complex product PM covers strategic/outbound, PO (TPM) for inbound Report up through same PM management chain Distributed teams One or more PMs at main Eng location Every remote team has a PO (or PM) Frequent, intense collaboration among all PMs/POs Pool of PM/PO talent with strategic leadership Larger departments, enough resources to allocate Pair up, mix and match, share, share, share

Small product, co-located team

Agile product manager is the product owner

Complex product

PM covers strategic/outbound, PO (TPM) for inbound

Report up through same PM management chain

Distributed teams

One or more PMs at main Eng location

Every remote team has a PO (or PM)

Frequent, intense collaboration among all PMs/POs

Pool of PM/PO talent with strategic leadership

Larger departments, enough resources to allocate

Pair up, mix and match, share, share, share

Product Manager Failure Modes Solo Product Manager fails the agile team if… Part-timer, not fully engaged in team Lack of detail on stories, acceptance tests Stale items in backlog Handwaving and bluster Best of intentions, but pulled in too many directions “ Build what I meant”

Solo Product Manager fails the agile team if…

Part-timer, not fully engaged in team

Lack of detail on stories, acceptance tests

Stale items in backlog

Handwaving and bluster

Best of intentions, but pulled in too many directions

“ Build what I meant”

Product Owner Failure Modes Solo Product Owner fails the market if… Weak on actual economic value: pricing, packaging, upgrades, professional service models, discounting, competitive dynamics Disconnected from cross-functional teams that turn software into products (Marketing, Sales, Support…) Trading off company-wide product strategy in favor of product-level features Assuming showcase customers represent market

Solo Product Owner fails the market if…

Weak on actual economic value: pricing, packaging, upgrades, professional service models, discounting, competitive dynamics

Disconnected from cross-functional teams that turn software into products (Marketing, Sales, Support…)

Trading off company-wide product strategy in favor of product-level features

Assuming showcase customers represent market

Take-Aways Agile makes the PM job much bigger One of the reasons Agile delivers better software Framed as Product Owner Without deep and complex market input, PO can’t represent users/customers/markets Really hard for one PM to cover both roles Think about skills mix, R&D geo-distribution Start asking for more help now Or let me recap the problem for your boss

Agile makes the PM job much bigger

One of the reasons Agile delivers better software

Framed as Product Owner

Without deep and complex market input, PO can’t represent users/customers/markets

Really hard for one PM to cover both roles

Think about skills mix, R&D geo-distribution

Start asking for more help now

Or let me recap the problem for your boss