In all software companies, it's the product development that creates the long-term value of the company. But - who are in charge and who makes the decisions? How do we ensure that our product development is creating as much value as possible for the company? In this presentation, I focus on describing how responsibilities and work are organized in practice between the various authorities to ensure that product development is made according to the company's strategic plan.

1. Strategic
Product
Development
How it works
Daniel Maurer – September 2015
Software Vendor Management Guide
www.softmanguide.com

2. A presentation for you who…
• Is the CEO of a software company
• Shall take over as CEO of a software company
• Member of the management team of a software company
• Is a board member of a software company
• Is the owner of a software company
• Is an investor in a software company
• Wants to start a software company
• Are generally interested in how software companies are managed and
developed

3. Content
Who are in charge and who makes the decisions?
Which role does Management and the Board have?
How do you organize responsibilities and who do what?

4. Who makes the decisions?
Product Development Organization

5. The Product Development Organization
• Product Management
• Board of Directors
• Management Team
• Product Council
• Product Manager

6. Product Management
Product Management is not a function
It’s a process that manage Product Development

7. Product Management
The process comprises different functions within the Software
Vendor

8. The Process Product Management involves
• Board of Directors
• Management Team
• Product Council
• Product Manager

9. Board of Directors

10. Board of Directors
Makes the strategic decisions
Therefore responsible for the strategic part of Product
Development

11. Board of Directors
Also makes indirect decisions of Product Development resources

12. Board of Directors
Shall decide on the long term Product Roadmap
Preferably as a part of the yearly Business Plan

13. The Management Team

14. The Management Team
The highest operational decision level for Product Development
Plans – Decide – Follows up

15. The Management Team
Product Development must be represented here
Can be the CTO, the Product Manager or someone else who has
a correspondent function

16. The Management Team
Works out the strategic and tactical plan

17. Product Council

18. Product Council
A broad representation from other parts is vital
Sales and Marketing representation is mandatory for the Product
Council

19. Product Council
Responsibilities…
• Decide on pricing of products and services
• Follow up product success on the market concerning the allocation,
revenue and margin
• Continuously monitor competitors
• Launch and lead strategic technical or product-related partnerships
• Quality assurance of internal influence and coordinate cross-
functional activities
• Document and assure the quality of the Product Development
process

20. Product Council
Whether decisions are made by the Product Council or the
Management Team is optional
However – reporting back to the Management Team is
mandatory

21. Product Manager

22. Product Manager
Have the highest operational responsibility for Product
Development

23. Product Manager
Requirements
• Business Professionalism
• Business Focus
• Technical background facilitates

24. So…
- Product Management is a process
- Involve the Board of Directors
- The Management Team has great responsibilities
- The Product Council facilitates
- The Product Manager manage and distributes the daily work

25. Strategic
Product
Development
Thank you for your attention!
Daniel Maurer – September 2015
Software Vendor Management Guide
www.softmanguide.com