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Product Management for Second-Stage Technology firms
- 1. Under 40 Product Management Product Management for Emerging Technology firms January 20, 2010 By Ken List, Sr. Product Manager
- 2. Objectives • Soup-to-nuts understanding: Formal Product Management • Top three PM activities • Options to a full-time Product Manager
- 3. Product Development & Services solve the problem Promotion Marketing Communications communicates the solution Place Sales Channel sells it profitably Price Sales or Marketing sets the value Product Management finds and quantifies the problem The 4 5 P’s
- 5. Product Manager Job Description • Managing the entire product line life cycle from strategic planning to tactical activities • Specifying market requirements for current and future products by conducting market research supported by on- going visits to customers and non-customers. • Driving a solution set across development teams (primarily Development/Engineering, and Marketing Communications) through market requirements, customer stories, and positioning. • Developing and implementing a company-wide go-to- market plan, working with all departments to execute. • Analyzing potential partner relationships for the product.
- 6. MARKET STRATEGY BUSINESS PLANNING PROGRAMS READINESS SUPPORT Sales Process Sales Process CollateralCollateral Sales Tools Sales Tools Channel Training Channel Training Presentatio ns & Demos Presentatio ns & Demos “Special” Calls “Special” Calls Event Support Event Support Channel Support Channel Support Competitive Landscape Competitive Landscape Technology Assessment Technology Assessment Distinctive Competence Distinctive Competence Win/Loss Analysis Win/Loss Analysis Market Problems Market Problems Product Roadmap Product Roadmap Product Portfolio Product Portfolio Distribution Strategy Distribution Strategy Market Definition Market Definition InnovationInnovation Product Profitability Product Profitability Buy, Build or Partner Buy, Build or Partner PricingPricing Business Plan Business Plan Requiremen ts Requiremen ts Use Scenarios Use Scenarios Status Dashboard Status Dashboard User Personas User Personas Buyer Personas Buyer Personas Buying Process Buying Process PositioningPositioning Launch Plan Launch Plan Thought Leadership Thought Leadership Lead Generation Lead Generation Referrals & References Referrals & References Program Effectivenes s Program Effectivenes s Customer Retention Customer Retention Customer Acquisition Customer Acquisition Marketing Plan Marketing Plan © Pragmatic Marketing Inc. Fingers in a lot of places!
- 7. Competitive Landscape Competitive Landscape Product Roadmap Product Roadmap InnovationInnovation Requiremen ts Requiremen ts Launch Plan Launch Plan Sales Process Sales Process Presentatio ns & Demos Presentatio ns & Demos MARKET STRATEGY BUSINESS PLANNING PROGRAMS READINESS SUPPORT Technology Assessment Technology Assessment Use Scenarios Use Scenarios Thought Leadership Thought Leadership CollateralCollateral “Special” Calls “Special” Calls Status Dashboard Status Dashboard Lead Generation Lead Generation Sales Tools Sales Tools Event Support Event Support Referrals & References Referrals & References Channel Training Channel Training Channel Support Channel Support Distinctive Competence Distinctive Competence Product Portfolio Product Portfolio Product Profitability Product Profitability User Personas User Personas Program Effectivenes s Program Effectivenes s Win/Loss Analysis Win/Loss Analysis Distribution Strategy Distribution Strategy Buy, Build or Partner Buy, Build or Partner Buyer Personas Buyer Personas Customer Retention Customer Retention Market Problems Market Problems Market Definition Market Definition PricingPricing Buying Process Buying Process Customer Acquisition Customer Acquisition Business Plan Business Plan PositioningPositioning Marketing Plan Marketing Plan Less Technical More Technical Strategic Tactical © Pragmatic Marketing Inc.
- 8. Competitive Landscape Competitive Landscape Product Roadmap Product Roadmap InnovationInnovation Requiremen ts Requiremen ts Launch Plan Launch Plan Sales Process Sales Process Presentatio ns & Demos Presentatio ns & Demos MARKET STRATEGY BUSINESS PLANNING PROGRAMS READINESS SUPPORT Technology Assessment Technology Assessment Use Scenarios Use Scenarios Thought Leadership Thought Leadership CollateralCollateral “Special” Calls “Special” Calls Status Dashboard Status Dashboard Lead Generation Lead Generation Sales Tools Sales Tools Event Support Event Support Referrals & References Referrals & References Channel Training Channel Training Channel Support Channel Support Distinctive Competence Distinctive Competence Product Portfolio Product Portfolio Product Profitability Product Profitability User Personas User Personas Program Effectivenes s Program Effectivenes s Win/Loss Analysis Win/Loss Analysis Distribution Strategy Distribution Strategy Buy, Build or Partner Buy, Build or Partner Buyer Personas Buyer Personas Customer Retention Customer Retention Market Problems Market Problems Market Definition Market Definition PricingPricing Buying Process Buying Process Customer Acquisition Customer Acquisition Business Plan Business Plan PositioningPositioning Marketing Plan Marketing Plan Marketing Technical Strategy © Pragmatic Marketing Inc.
- 9. The Product Manager’s Top 3 Activities • Voice of the Customer • The Product Roadmap • New Releases / New Products
- 10. The 20 Commandments 1. Your opinion, although interesting, is irrelevant. 2. The answer to most of your questions in not in the building. 3. The building is full of product experts. Your company needs market experts. 4. An outside-in approach increases the likelihood of product success. 5. Market problems determine what goes into the product. 6. Only build solutions for problems that are urgent, pervasive and the market will pay to solve. Voice of the Customer
- 11. The 20 Commandments 10.Every “product” needs product management and a business plan. 11.In the absence of market facts, he who builds the product wins. 12.If product management doesn’t do its job, the other departments will fill the void. Voice of the Customer
- 12. The 20 Commandments 13.Be able to articulate your distinctive competence. 14.Find market segments that value your distinctive competence. 15.Map your sales process to the buying process. 16.Product Management should help sales channels, not individual salespeople. 17.Don’t expect your sales channel to conduct win/loss analysis. Voice of the Customer
- 13. The 20 Commandments 18.Align your distribution strategy with personas and their problems. 19.Product management owns the message; marketing communications owns the rest. 20.Time spent on the strategic reduces time wasted on the tactical. Voice of the Customer © Pragmatic Marketing Inc.
- 14. The Product Roadmap • Goals for upcoming releases • Tentative, not a promise • Often divided into releases and themes – New features – 3rd party component support – Bug fixes – User experience vs backend technology • Based upon the Product Backlog Product Roadmap
- 15. External roadmap example FY10 FY11 FY12 Technology Application … * This document contains forward–looking statements based on current expectations, forecasts and assumptions of the Company that involve risks and uncertainties. Forward looking statements are subject to risks and uncertainties associated with the Company's business that could cause actual results to vary materially from those stated or implied by such forward-looking statements. Linux Support mySQL Support Exchange 2010 Chrome 64-bit PCIe support Speech Shopping Cart Link to Salesforce.com Product Roadmap © Pragmatic Marketing Inc.
- 16. Maintainability •Quis nostrud •Exerci tation •Ullamcorper Data Synchronization •Magna aliquam •Erat volputate •Ut wisi enim ad minim •Veniam Third-party Updates •Sed diam nonummy •Nibh eusmod •Tincidunt •Laoreet •Dolore Example external roadmap: Themes Operational Simplicity •Lorem ipsum •Dolor sit amet •Consectetuer •Adipiscing elit Q2-07 1H-08 Q4-07 2H-08 * This document contains forward–looking statements based on current expectations, forecasts and assumptions of the Company that involve risks and uncertainties. Forward looking statements are subject to risks and uncertainties associated with the Company's business that could cause actual results to vary materially from those stated or implied by such forward-looking statements. Product Roadmap © Pragmatic Marketing Inc.
- 17. The Product Roadmap • Discipline required in order to • Avoid Scope-creep so that you can • Meet targeted release date Product Roadmap
- 18. Gate Review A “need to have” not a “nice to have” Development Professional Services Customer Support Marketing Sales RC Ready Test Systems Test Systems Collateral updates Sales Training QA Testing Knowledge Transfer Knowledge Transfer Website Updates Channel Training Alpha/Beta program Training Course Updated SW download site updated E-mail notifications FAQs & sales support docs Documentation Press Release Demo systems GA Release Newsletter International Min. Hardware Busn. Processes Software Escrow New Releases/Products
- 19. In Closing • Product Management is a strategic activity • High doses of process and project management • Formal position in larger companies • Methodologies can be used in smaller firms • Adaptable for consulting and service firms
- 20. When is the right time to add a Product Manager? • Proactively instead of Reactively • When poised for growth • Once you add the role, LET GO, and let the person do their job. CEOs: It’s OK to let go.
- 21. In the meantime… • Training seminars ( www.pragmaticmarketing.com) • Part-time Product Manager • Product Management Consultant Mission / Vision Customer knowledgebase Go-to-Market Strategy Sales knowledgebase Business Case Customer survey program Gap Analysis / SWOT Profile Enhancement database Product Roadmap E-mail campaign program Gate Review process Sales Tools
- 22. Questions and comments. Ken List, Sr. Product Manager 630.329.5487 kenlist@kenlist.net
Editor's Notes
- As the CEO of a technology company you have a great deal to think about: customers, product development, marketing, supporting customers, professional services, the competition, and sales… to mention a few. On top of that you add the finances, expanding the business, and a whole lot more. One of the reasons I, as a product manager, attend this CEO roundtable is because I think about a lot of these are the same things. It’s my job to do so. A product manager is sometimes thought of as the “President of the Product”, because of his overall responsibility for the lifecycle, success, and profitability of the products for which he is responsible. I’d like to take you through an overview of the role of the product manager. This is to acquaint you with the process and methodology that he uses to do his job.
- [Read these three objective] Not all software companies are at the point where they will hire a product manager. All companies will benefit by utilizing the methods, principles, and processes that a solid/formal product management methodology has to offer. Some of you here today run other types of businesses, rather than software companies: consulting, services, marketing, etc. As you listen to what I talk about here, think about your company. Because even if you’re not developing a “product” that you can touch or install, you’re services and other offerings are really “products”, too.
- As Product Manager, you will guide a team that is charged with a product line contribution as a business unit. increasing the profitability of existing products developing new products for the company. You will build products from existing ideas, and help to develop new ideas based on your industry experience and your contact with customers and prospects. You must possess a unique blend of business and technical savvy; a big-picture vision, and the drive to make that vision a reality. You must enjoy spending time in the market to understand their problems, and find innovative solutions for the broader market. You must be able to communicate with all areas of the company. Engineering: to define product release requirements. Marketing communications to define the go-to-market strategy, helping them understand the product positioning, key benefits, and target customer. Serve as the internal and external evangelist for your product offering, occasionally working with the sales channel and key customers. A product manager's key role is strategic, not tactical. The other organizations will support your strategic efforts; you won't be supporting their tactical tasks.
- These areas and activities can be categorized in several dimensions, ranging between the strategic and tactical, as well as between the less technical and more technical.
- They can also be broken down in another way: that which is strategic, that which is technical, and that which is marketing-related.
- While your business may not be at the point where a full-time Product Manager is possible, all of the activities on the matrix should be accounted for. These responsibilities can be distributed to responsible individuals in the company. And that makes sense. After all a product manager doesn’t actually DO all these activities. He/she does some, and oversees others. Some activities, Marketing for example, are handled by a marketing individual. The product Manager is responsible to see that all these activities are getting done. The biggest challenges or responsibilities for the Product Manager are: Representing the voice of the customer. Bringing a new release or new product to market. The Product Roadmap One way to accomplish a set of these is the Gate Review, which is a “play book” that is used to prepare the organization for the release.
- The biggest challenges or responsibilities for the Product Manager are: Representing the voice of the customer. Bringing a new release or new product to market. The Product Roadmap
- “No” “Not Now” “I need more justification” Resist the “one off” for a single customer if it doesn’t make sense for others.
- Proactively vs reactively: Usually a company will add the PM role reactively, rather than proactively: there’s a problem, the existing process is screwing up: releases are way to late, we built a feature that’s a one off (we thought we had it right!)
- And what about in the meantime? Just as there are interim “part-time” CEOs and other senior roles, is there value in engaging the services of such a Product Manager to help put some of the strategic framework in place?