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Product Management:Improving Organizational Effectiveness             Linda Gorchels    Director, Executive Marketing Prog...
Questions we’ll explore …  • How do product manager roles    relate to organization structure?  • What factors affect the ...
Let’s start with the basics                   University of Wisconsin-Madison                         Executive Education
Product Manager Continuum “Upstream planning”                                           “Downstream planning”      (strate...
How do product managers work?• Product managers must work through other  people in a matrix structure (over a traditional ...
What are traditional structures? • Functional                      • Divisional                                           ...
Matrix structures• Transparent• Heavyweight• Autonomous                University of Wisconsin-Madison                    ...
Structural Goodness-of-Fit            Culture       External       Environment        University of Wisconsin-Madison     ...
Where PM fits – varied views•   The Cranky Product Manager - Why it doesn’t matter where Product    Management lives in th...
Potential influence roadblocks                              Channels                                                   Gen...
Need to break through the walls                        “Techies” feel                        they are the                 ...
What are the mutual                       expectations?What can I expectfrom product                                      ...
Key pointsTo increase the success quotient for productmanagement:– Clarify the balance of upstream and downstream  respons...
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Improving organizational effectiveness in product management

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Product management, like any complex organizational design, is not perfect. There are communication breakdowns, blurred lines of responsibility, and changes in strategy that cause firms to question its value or even consider major reorganization efforts. Before your firm dives into either initiating OR eliminating a product management architecture, join us to explore a few tips and tools on both the need for, and the effectiveness of, a product management structure.

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Transcript of "Improving organizational effectiveness in product management"

  1. 1. Product Management:Improving Organizational Effectiveness Linda Gorchels Director, Executive Marketing Programs Fluno Center for Executive Education School of Business, UW-Madison (608) 441-7336 lgorchels@exed.wisc.edu University of Wisconsin-Madison Executive Education
  2. 2. Questions we’ll explore … • How do product manager roles relate to organization structure? • What factors affect the “structural fit” of product management? • How can cross-functional expectations be better aligned? University of Wisconsin-Madison Executive Education
  3. 3. Let’s start with the basics University of Wisconsin-Madison Executive Education
  4. 4. Product Manager Continuum “Upstream planning” “Downstream planning” (strategic) (tactical)Strategic product line planning New product development Product life cycle management Annual marketing planning Advertising & promotions Sales support Product planner Tactical products manager Product support Product marketing manager Product manager University of Wisconsin-Madison Executive Education
  5. 5. How do product managers work?• Product managers must work through other people in a matrix structure (over a traditional structure).• The various functions become “resources.”• The product manager becomes the central knowledge repository. University of Wisconsin-Madison Executive Education
  6. 6. What are traditional structures? • Functional • Divisional CEO CEO Div. A Div. B Div. CHR Mktg Mfg MFG Mktg MFG Mktg University of Wisconsin-Madison Executive Education
  7. 7. Matrix structures• Transparent• Heavyweight• Autonomous University of Wisconsin-Madison Executive Education
  8. 8. Structural Goodness-of-Fit Culture External Environment University of Wisconsin-Madison Executive Education
  9. 9. Where PM fits – varied views• The Cranky Product Manager - Why it doesn’t matter where Product Management lives in the organization• Marty Cagan, Silicon Valley Product Management Group – Where Should Product Management Live?• Rich Mirnov, Enthiosys – Where Should PM Report?• Steve Johnson, Pragmatic Marketing – The Strategic Role of Product Management University of Wisconsin-Madison Executive Education
  10. 10. Potential influence roadblocks Channels General Engineering public Top Customer management Service Mfg VOC Sales Finance Purchasing Customers Marketing Research Legal University of Wisconsin-Madison Executive Education
  11. 11. Need to break through the walls “Techies” feel they are the guardians of Marketers feel they innovation have objectiveSalespeople feel they information“own” the customerrelationship Production wants to minimize Project change- leaders want orders to meet critical University of Wisconsin-Madison deadlines Executive Education
  12. 12. What are the mutual expectations?What can I expectfrom product What can I expectmanagers? What from productshould they expect managers? What Product Management should they expectfrom me? from me? Customer Functional Positions Channel Positions 12 University of Wisconsin-Madison Executive Education
  13. 13. Key pointsTo increase the success quotient for productmanagement:– Clarify the balance of upstream and downstream responsibilities expected of the position.– Assess the dimensions that affect the structural goodness-of-fit.– Gather and share mutual cross-functional expectations. University of Wisconsin-Madison Executive Education
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