Adventures in P&L - P&L ownership for Product Managers
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Adventures in P&L - P&L ownership for Product Managers

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What does it mean for a Product Manager to truly own P&L? Is that possible when you don't really control development costs, or discounting via channels? Are product mgrs tuly managers of P&L or ...

What does it mean for a Product Manager to truly own P&L? Is that possible when you don't really control development costs, or discounting via channels? Are product mgrs tuly managers of P&L or destined only to "observe and report"?

Join me in an interactive discussion about "adventures in P&L" - common scenarios that test the theory of P&L ownership and creative ways to address them.

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Adventures in P&L - P&L ownership for Product Managers Presentation Transcript

  • 1. Adventures in P&L
    Navin Ganeshan,
    Product Strategy, Network Solutions
  • 2. P&L “Ownership”
    Who owns P&L?
    Product Mgmt?
    Marketing?
    GM?
    CxO?
    Who impacts P&L?
    Product Mgmt
    Marketing
    Engineering
    Partner/channels
    Service/Support
  • 3. Metrics To Manage
    • Which margin matters most to your business?
    • 4. What is goal/acceptable threshold? (ask your CFO)
    • 5. Beyond margins, what are “earners” vs strategic plays?
    • 6. How often do you need to measure?
    • 7. How do you establish a baseline?
  • Adventures in P&L
    Marketing runs a campaign for 70% off Product A, drives X new customers, destroys margins, declares success! “What was the goal again”?
    Technology operations wants new $1M hardware and allocates cost across your product “Ambiguous expense looking for a home?”
    Product delivery team is overstaffed for the volume of products sold “variable costs that are not truly variable”?
    Your Engineering team for Product A has 8 developers, of whom only 3 work on Product A. “Who are these guys and what do they do again?”
    Other adventures?
  • 8. What you can do
    Monitor cost drivers
    Understand (and negotiate!) cost allocation – your financial analyst is your new BFF
    Agree on overarching “neutral” goals – customer value, strategic goals etc
    Provide guidance on pricing ranges within channels