Product Management Metrics Be the Product CEO

Product Management Metrics

How to truly manage your
products like a CEO

June 9, 2012

Saeed Khan
Twitter: @saeedwkhan, @onpm
www.OnProductManagement.net

Copyright © Saeed Khan 2012

Is this you? 

http://www.productfocus.com/blog/archives/129


My Talk Last Year

http://bit.ly/building-pm-org


The goal of Product Management

To deliver measurable
business results through
product solutions that
meet both market needs
and company objectives.
Don Vendetti - http://wp.me/pXBON-WE


Comments during the talk

“the business people push us to
fill the gap on the technical
side of things.”

Is that desired?

“No, but that’s the way it is.”


Turning the situation around…

Do you want to be more strategic?
Do you want to show your CEO the
value of Product Management in
your company?
Do you want to get promoted?*

* No promises of career success are being made in this presentation.
Your mileage may vary.


Manage your product
like your CEO manages
the company
Yes I know you are not the “CEO of your product” but
don’t let that stop you from acting like you are.


What examples are
there for managing
Products in a
systematic way?


Captain Jack – Product Manager

http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version


Soon a True PM you shall be!

http://www.slideshare.net/dan_o/how-to-be-a-web-20-metrics-jedi-web-20-expo-april-2009


Don’t let Chuck Norris stop you!

http://www.slideshare.net/maverickaman/metrics-for-start-up-ninjas


Lots of Web funnel related metrics

• http://www.slideshare.net/stueccles/lean-startup-metrics
• http://www.cindyalvarez.com/data-driven/57-questions-about-metrics
• http://bostonturnergroup.com/ideals-2/web-funnel-101-24-metrics-you-need-to-measure-
right-now/

Couldn’t find anything
taking a holistic view
of the overall state of
the product


The key question

How to truly
manage the product
across the
product lifecycle?
(and stop being the gap filler)


What is
“the Product”?


What is “the product” OR….

What are the major
areas I must track and
manage to ensure
product success?


4 Areas of Focus

Business Organization

Go To Market Product


4 Areas of Focus

Business Organization
Corporate Objectives, Internal Training and
Revenue, Pipeline, Enablement (Sales,
Win/Loss, Renewals, Support, Marketing etc.)
Pricing, etc.

Go To Market Product
Positioning, Messaging, Product Strategy,
Lead Gen, Marketing Capabilities, Roadmap,
Plan/Funnel, References, Quality, Performance,
Collateral etc. Stability, Gaps etc.


What is the
Product
Lifecycle?

Product Lifecycle Stages

End of Life
Develop

Maturity

Decline
Launch

Growth


Product Lifecycle OBJECTIVES

Extend it
Scale it
Build it

Milk it

End it
Nail it


Product Lifecycle Objectives

Objective Description

Build it Build the first version of the product for specific use
cases for a target market
Nail it Identify and address barriers to wider adoption within
your target market and prepare the company for
product growth – more than just product/market fit
Scale it Scale the business (marketing/sales etc.) and focus on
expansion and new customer acquisition
Extend it Move into new markets, market segments, use cases.
Growth in new customers and sales into existing base
Milk it Reduce investment but continue to market/sell with an
eye on maximizing profits from customer base
End it Remove all investment, stop actively marketing and
eventually remove from market


At each lifecycle stage,
Product Management
focus and objectives
are different!


Focus Areas vs. Lifecycle Objectives


For any product, look at 1 stage at a time


So what goes in the boxes?

Questions that are important
to answer for each focus area
for the current stage of the
product lifecycle

i.e. key business metrics 


What is a “business metric”?

The definition I like is:

• n. A business metric is any type of
measurement used to gauge some
quantifiable component of a company’s
performance.

Somewhat vague (but good for us)! 


Rules for defining key “business metrics”

• Define metrics to align with key goals and
objectives for your product.
• Ensure that you can put programs in
place to change those metrics if needed.
• The actual “metrics” will be a
combination of numeric values, and
empirical evaluations of important
situations (i.e. judgment calls)


Hypothetical example… READ THIS!

• The following is an example set of dashboards
for an early (Scale it!) stage product to show
how to implement the model.
• For each of 4 focus areas, I’ve picked
important metrics to track. You will need to
pick the right metrics for your product and
stage.
– i.e. these may not all apply to your product.
Don’t just copy them without thought. 


Creating a simple dashboard

• CEOs like dashboards 
• Use traffic light model to indicate state
of metric

- on or ahead of plan

- at risk of missing plan (must monitor)

- behind plan, needs immediate attention


Common Business Metrics

• Sales/Revenue
What are the key metrics
• Pipeline and measurable factors to
• Win/Loss track business progress
and success?
• Deal Size
• Renewals How are you tracking
against the plan or target?
• Pricing
What actions are needed
• Resellers to improve the situation?
• Etc.

Hypothetical Business Dashboard


Common Go-To-Market Metrics

• Positioning
• Competition
• References These “metrics” are not as
• Social Media numeric as the Business
are, but are key to
• Analyst Relations tracking GTM status and
progress
• Demand Gen
• Web Presence
• Collateral

Go-to-Market Metrics


Organizational Readiness

• Each group that is
key to go-to-market
or the ongoing
Ensure there is a clear way
success of the to assess if team are
product should be ready. Processes in place,
assessed to see if training complete, systems
they have been ready etc.
trained and are
functioning
optimally.


Organizational Readiness


Product Metrics

• Strategy
• Roadmap status Where you probably spend
a lot of your time
• Product/Market currently, filling gaps,
Fit fighting fires etc.

• Product Gaps Raise the bar and
systemetize your efforts
• Product Quality and management of the
product
• Etc.


Product Metrics


Each metric is based on
additional underlying
data or information.
Should be available if
needed by Management.

Updated dashboards as
often as needed for
business review.
Quarterly or semi-
annually is good for most
companies.

Why go through all
this effort and
present the product
this way?


Why do this?

• It is a simple, standard way to
manage almost ANY product
• Easy to communicate status and
trouble spots to Senior Management
• Raise your own understanding of
your product and manage it like a
CEO
• And finally….

…Because this is NOT what you want!!

http://www.productfocus.com/blog/archives/129


Product Management Metrics Be the Product CEO

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