The document discusses integrated product management and how product management should communicate with a Board of Directors. It explains that the Board cares about current and future financial performance. Product management needs to understand the business plan assumptions and address any issues if product execution is not conforming to the plan, for example by analyzing sales channel performance and market opportunities. When speaking to the Board, product management should quantify issues, use data-driven analysis, discuss goals and progress, and relate topics to key financial concerns.

1. Integrated Product
Management
SVPMA March 5, 2003
Darlene K. Mann, CEO Siperian
dmann@siperian.com

2. Speaker Background
 Personal data
 Sales and Marketing for 12+ years
 VC for 6+ years
 CEO for 1+ month
 Siperian Inc.
 Customer data management solutions
 Unique composite object technology
 “Aware Applications” offering a single point
of interaction for customer-centric activities

3. Agenda
 What is “integrated” product
management
 What do Board of Directors (BOD)
care about?
 Why would product management
attract BOD attention?
 How does product management
speak to the BOD

4. Integrated Product
Management
 Executive management sets the
business plan
 Board of Directors approves business
plan and oversees results
 Product management is key to
execution of the business plan
 Doyou understand the product
assumptions driving the plan?

5. Business Plan “Model”
Opportunity Market Problem Buyer Transaction
(Discover)

6. Business Plan “Model”
Execution Technology Product
Product Company Business
(Implement)

7. Business Plan “Model”
Opportunity Market Problem Buyer Transaction
(Discover)
Strategy Value Operating Financial
Vision
(Design) Proposition Model Model
Execution Technology Product
Product Company Business
(Implement)

8. What do BODs care about?
 Is the company operating well today?
 Revenue
 Cost Structure
 Profitability
 Will it continue to do well in the
future?
 Market
opportunities
 Competitive Advantage

9. Business Plan Concerns
Opportunity Market Problem Buyer Transaction
(Discover)
Strategy Value Operating Financial
Vision
(Design) Proposition Model Model
Execution Technology Product
Product Company Business
(Implement)
Problems: Missed revenue/profits indicate execution
issues, if no strategic cause

10. “Operational” Problems
 Revenue model cannot support the
necessary cost structure
 Customer acquisition costs too high
 Channel costs too high
 Operating expenses or COGS
increase substantially (e.g. cost of
labor, materials, etc.)
 Poor expense controls (shameful!)

11. Business Plan Concerns
Opportunity Market Problem Buyer Transaction
(Discover)
Strategy Value Operating Financial
Vision
(Design) Proposition Model Model
Execution Technology Product
Product Company Business
(Implement)
Problems: Product misalignment or market saturation
create strategic issues

12. “Value Proposition” Problems
 Problem isn’t big enough to matter
 Market was never big enough
 Market now saturated
 Product inadequate for problem
 Poor execution
 Poor vision
 Competitive price pressure
 Value undermined

13. Business Plan Concerns
Opportunity Market Problem Buyer Transaction
(Discover)
Strategy Value Operating Financial
Vision
(Design) Proposition Model Model
Execution Technology Product
Product Company Business
(Implement)
Problems: Market disruption creates strategic issue

14. “Vision” Problems
 New technologies
 Better, faster, cheaper
 Direct competitor or substitute
 M&A events
 Channel strength
 Product line completeness
 Critical mass effects

15. Why would Product Management
attract BOD attention?
 Missed revenues or profitability? Inspect:
 Channel
• Direct/Indirect sales metrics
• Contribution across channels
 Product
• Evaluation of market opportunity
• Feature/functionality/fit analysis
 Underlying cost structures
• Structural changes to cost
• Poor management

16. Why would Product Management
attract BOD attention?
 Value proposition under fire
 Customer adoption
 Competitive pressure
• Out-selling
• Better product
• Price pressure
• True cost advantage
• Buying share
• Lousy competitor

17. Why would Product Management
attract BOD attention?
 Overcome by disruptive technology
 Industry structure change
 Too early

18. How should Product Management
speak to the BOD?
 Financial expressions of issues
 Quantify it when possible
 Data-driven, clear about sources
 Explain what and how you know
 High level
 Relevant to the big issues
 Place/Process/Progress
 Where did you start, what is your goal
 How will you get there
 Where are you now

19. Summary
 From the BOD perspective, everything
nets to financial performance
 In tough times, understanding the
expected business model behavior is
essential for financial success
 If your product line is not conforming
to the model, understand why and
what can be done