Product Managers and Product Owners: Which Do We Need, What Do they Do? Agile Bazaar, Feb 26th 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 Chair of Agile ‘09 track for product mgrs/product owners Repeat offender at software prod mgmt Tandem, Sybase, four start-ups “ The Art of Product Management”

CMO at Enthiosys, agile product mgmt consultancy

Business models/pricing, roadmaps

Innovation Games ® and customer needs

Agile transformation, interim PM executive

Chair of Agile ‘09 track for product mgrs/product owners

Repeat offender at software prod mgmt

Tandem, Sybase, four start-ups

“ The Art of Product Management”

My Biases Product management is a professional role Experience-based, not learned overnight Most products fail in the market, not the lab Revenue is best success metric for “products” Versus IT and internally consumed software There’s no substitute for frequent face-to-face interactions with customers and prospects “ Product Owner” partly grew out of frustration/ unfamiliarity with product management

Product management is a professional role

Experience-based, not learned overnight

Most products fail in the market, not the lab

Revenue is best success metric for “products”

Versus IT and internally consumed software

There’s no substitute for frequent face-to-face interactions with customers and prospects

“ Product Owner” partly grew out of frustration/ unfamiliarity with product management

Agenda 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

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

Product Owner? Product Manager? Most agilists think only about product owners Formal part of agile team Needs to be physically present Driving user stories and sub-iteration decisions No selection bias for field experience or PM training Most product managers are not agilists Late adopters Servicing multiple inbound and outbound Own market success, long-term strategic issues Socially isolated, nomadic

Most agilists think only about product owners

Formal part of agile team

Needs to be physically present

Driving user stories and sub-iteration decisions

No selection bias for field experience or PM training

Most product managers are not agilists

Late adopters

Servicing multiple inbound and outbound

Own market success, long-term strategic issues

Socially isolated, nomadic

Possibly Incompatible Viewpoints Product owner Must be available to the team at any time, especially during the sprint planning and review meetings Showcases provide customer input for prioritization Product manager Majority of work to deliver products (revenue) happens outside Engineering Markets must be experienced directly, frequently, and not filtered through Sales or execs

Product owner

Must be available to the team at any time, especially during the sprint planning and review meetings

Showcases provide customer input for prioritization

Product manager

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

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

Where Does Product Management Fit? market information , priorities, requirements, roadmaps, MRDs, personas, user stories… software strategy, forecasts, commitments, roadmaps, competitive intelligence Budgets, staff, targets Field input, Market feedback Segments, messages, benefits/features, pricing, sales support, demos… Development Marketing/Sales Customers 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? 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 “ 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

“ 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.”

Product Owner’s Calendar Borrowed from Catherine Connor, Rally

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, little product management experience “ Big P” Product Owner Strategic view of customers, profitability, markets Sets broad direction, allocates resources Deep experience with customer segments I see very few “Big P” Product Owners in the wild

“ 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, little product management experience

“ Big P” Product Owner

Strategic view of customers, profitability, markets

Sets broad direction, allocates resources

Deep experience with customer segments

I see very few “Big P” Product Owners in the wild

“ 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 Detailed user stories and acceptance criteria Blocking issues Iteration content and release content Prioritizing features according to market value ( not really ROI ) 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

Detailed user stories and acceptance criteria

Blocking issues

Iteration content and release content

Prioritizing features according to market value ( not really ROI )

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

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 Must apply some paired or hybrid solutions

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

Must apply some paired or hybrid solutions

Product Manager Failure Modes Solo Product Manager fails the agile team 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

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 Weak on actual economic value: pricing, packaging, upgrades, professional services, discounting, competitive dynamics Disconnected from cross-functional teams that turn software into products Trading off company-wide product strategy in favor of product-level features Assuming showcase customers represent market

Solo Product Owner fails the market

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

Disconnected from cross-functional teams that turn software into products

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

Assuming showcase customers represent market

A Scalable PM/PO Model Small product, co-located team Agile product manager also acts as product owner Complex product PM covers strategic/outbound, PO for tech/inbound Report up through same PM management chain Distributed teams One or more PMs at main Eng location Every remote team has a PO Frequent, intense collaboration among all PMs/POs

Small product, co-located team

Agile product manager also acts as product owner

Complex product

PM covers strategic/outbound, PO for tech/inbound

Report up through same PM management chain

Distributed teams

One or more PMs at main Eng location

Every remote team has a PO

Frequent, intense collaboration among all PMs/POs

Agile’s Inner Loop (Development)

Agile’s Strategic Outer Loop (PM) Markets Customers Biz Models Strategy Portfolios Funding Customers Sales Marketing Support Upgrades EOL/EOS

Markets

Customers

Biz Models

Strategy

Portfolios

Funding

Customers

Sales

Marketing

Support

Upgrades

EOL/EOS