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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 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.

Published in: Business
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Adventures in P&L - P&L ownership for Product Managers

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