Heard this one before? Well, I'm no stranger to it either. While the internet is bursting with articles on this topic, here's my two cents on the matter.
In the ever-evolving world of business, "product management" and "project management" work hand in hand, seamlessly collaborating like a well-coordinated team at an event., but they represent two distinct philosophies that can significantly influence an organisation's success. While project management is essential for executing specific tasks—think of it as the meticulous planner ensuring everything runs on time—product management is the visionary artist crafting a masterpiece that resonates with customers.
Melissa Perri, a leading voice in product management, aptly talks about this, in a blog about her reflections on Product management and how it has changed over the years,
'2014: "I do not need Product Managers, I can run my company myself,.I have the strategy."
2019: "How do I hire a Chief Product Officer? I need them yesterday."
Founders realising they can't do it all on their own, that Product Management is a career, and an important skill for the executive team.'
Let’s delve into why product management deserves the limelight in today’s fast-paced market.
Understanding the Differences
To appreciate why product management?, we first need to understand the key differences between these two roles.
Product management is all about the entire lifecycle of a product—from its initial conception to its eventual retirement. Picture product managers as captains steering a ship through turbulent waters, guided by market research, customer feedback, and strategic goals.
In contrast to this, project management focuses on executing specific projects within defined parameters such as time, budget, and scope. Project managers are the taskmasters who ensure that every cog in the wheel turns smoothly, but they often lack influence over the strategic direction of the product itself. This distinction is crucial; while project managers are vital for tactical execution, they don’t typically engage with the broader vision of what a product should become.
Crafting Long-Term Value
One of the most compelling reasons to prioritise product management is its rock-solid focus on long-term value creation. Product managers continuously assess a product's performance and make iterative improvements based on user insights and market trends. This ongoing engagement allows companies to adapt to changing customer needs faster than you can say "pivot."
Take Airbnb as an example. What began as a humble idea—renting out air mattresses in their apartment—has transformed into a global platform offering unique travel experiences. Through relentless feedback from users and an unwavering commitment to understanding their needs, Airbnb has thrived. This adaptability has allowed Airbnb to navigate the changing tides brought forward coz of Covid with finesse. They faced bulk cancellations. While refunding customers was expected, they also refunded part of the booking amount to hosts. Slowly as tourism picked up, they relied on data to fine-tune search to show more local listings as was the customer demand. And the latest with airbnb experiences.
The Symphony of Strategy
Focusing on product management ensures that offerings align closely with market demands and overarching business objectives. By prioritising product strategy, organisations can allocate resources more effectively and prioritize initiatives that drive growth.
Consider how Apple approaches product management. The company doesn’t just build products; it crafts experiences that resonate with consumers on an emotional level. Steve Jobs famously declared,
“You’ve got to start with the customer experience and work back toward the technology.”
This philosophy has led Apple to create products that not only meet customer needs but also set industry standards—like a maestro conducting a symphony.
The Team Sport
Another significant advantage of product management is its emphasis on cross-functional collaboration. Product managers work closely with various teams—engineering, marketing, sales—to ensure all aspects of the product lifecycle are considered. This collaboration enhances communication and alignment across departments.
For instance, when Spotify was developing its music streaming service, it didn’t just rely on developers to create features; it involved marketers and user experience designers from the outset. This holistic approach allowed Spotify to launch a platform that was not only technically sound but also user-friendly and market-ready—a true team sport where everyone plays their part.
Embracing Adaptability
In today’s fast-paced environment, adaptability is key. Product managers are equipped to pivot strategies based on real-time data and feedback—a flexibility that is less prevalent in project management where changes can disrupt established plans like an unexpected plot twist in a thriller novel.
A great example of this adaptability can be seen in how Slack evolved from a gaming company 'Tiny Speck'. The game Glitch's glitch, evolved into a leading communication platform and the eventual 'email killer'. Slack pivoted when they recognised its potential as a standalone product based on user feedback. In the words of Stewart Butterfield
"So in the early days, we looked at our customers, really just testers at that point, and we paid extra attention to the teams we knew should be using Slack successfully." -
This willingness to adapt based on user input has been crucial for Slack’s meteoric rise.
While project management plays an essential role in executing specific tasks efficiently—like keeping trains running on time. it’s clear that product management needs its due credit, in driving overall business success through strategic oversight of products throughout their lifecycle. Organisations can better meet customer needs, adapt swiftly to market changes, and create lasting value, by focussing on product management.
Melissa Perri, in her book Escaping the Build Trap: How Effective Product Management Creates Real Value explains the role succinctly:
"The product manager deeply understands both the business and the customer to identify the right opportunities to produce value.
They are responsible for synthesizing multiple pieces of data, including user analytics, customer feedback, market research, and stakeholder opinions, and then determining in which direction the team should move.
They keep the team focused on the why — why are we building this product, and what outcome will it produce?”
Not yet convinced, let's get into a call to discuss if a product manager could help?
