What Defines a Standout Product Manager in Today's Market?
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Understanding the Role of a Product Manager
The field of Product Management has experienced remarkable growth, particularly in 2020 and 2021, with a 32% increase over two years. This surge stems from a blend of two dynamics: individuals moving away from conventional 9-to-5 roles to embrace the startup ethos characterized by intense focus on products, services, and customer satisfaction, alongside traditional firms grappling with outdated offerings. These legacy companies often find themselves mired in a project-based approach that can lead to customized solutions for specific clients instead of scalable products. Additionally, tech giants are expanding their PM teams, contributing to the role's prominence.
As a result, Product Management ranks among the top five flourishing careers during this period. Drawing from my nine years of experience in PM roles across various organizations, I've provided insights at meetups, guest lectures at universities, and one-on-one mentoring. Today, I aim to answer the frequently asked question: "What exactly do Product Managers do?"
What Are the Responsibilities of PMs and the Skills They Need?
If you were to survey ten individuals about the responsibilities of a Product Manager, you'd likely receive ten different interpretations. Some might believe PMs primarily manage timelines and deliverables, while others might think they closely collaborate with engineering teams on technical aspects or focus on creating visual designs and user journeys. This divergence in perception arises because each company's product team assumes various roles, leading to differing expectations—everyone tends to grasp only part of the whole picture.
Gibson Biddle encapsulated the essence of product leadership by stating that successful PMs should drive strategies that:
Delight customers in ways that are hard to replicate and enhance profit margins. — Gibson Biddle
To align with this framework of customer delight through unique offerings, I've identified four key skill sets essential for PM candidates:
- Business Acumen
- Technical Knowledge
- Product Design Proficiency
- Domain Expertise
Moreover, effective communication is indispensable. For instance, promoting your outstanding product to your team, peers, and leadership is crucial for identifying strategic gaps and securing initial support. A PM's ability to lead without formal authority hinges on their storytelling and advocacy skills, often exercised through:
- Face-to-face Conversations: These direct interactions foster honest feedback and are vital when addressing leadership, ensuring they are informed allies for your product.
- Presentations: This platform builds credibility for your product strategy and energizes internal stakeholders, motivating sales teams and attracting investor interest.
- Meetings: Aim to keep meetings concise with essential participants, focusing on two-way communication with clear outcomes.
- Documentation: Maintain brevity in written materials, adopting a "1-pager" mindset to effectively convey ideas.
- Messaging Platforms: Responsiveness on tools like Slack and email is key, as they serve as primary communication channels in today's remote work landscape.
1. Business Acumen
PMs must ensure their product's market viability, necessitating business skills commonly associated with an MBA, including:
- Market Forecasting
- Customer Segmentation
- Strategic Planning
- Market Analysis (TAM/SAM/SOM)
- Pricing Strategies
- Go-To-Market Planning
This domain focuses on aligning the product with the company's overall strategy and market needs.
2. Technical Knowledge
This aspect involves anticipating technological trends and effectively engaging with engineering teams. A PM should have:
- Familiarity with the Software Development Life Cycle (SDLC)
- Awareness of current tech trends
- Understanding of engineering timelines and estimates
- Ability to balance quality, scope, schedule, and costs
3. Product Design Proficiency
A PM must possess the intuition to create a product that captivates users, fostering growth and retention. Nir Eyal in his book Hooked emphasizes that to create a product that resonates, it should delight customers consistently, leading to habitual use and dependency.
Key areas of focus include:
- User Experience
- Growth and Retention Strategies
- Visual Design
4. Domain Expertise
This involves developing a comprehensive understanding of the specific product landscape. A successful PM should:
- Segment target customers effectively
- Conduct thorough competitive analysis
- Stay informed about industry trends
- Cultivate a robust professional network for insights and support
The Evolving Nature of PM Roles
PM roles often lack rigid definitions, with responsibilities varying significantly across organizations. In larger companies, roles may be divided between Inbound PMs (technical focus) and Outbound PMs (strategic vision).
While PMs may not execute every aspect of the product lifecycle, they should possess enough knowledge to guide processes effectively.
The Rare Unicorn PM
To excel as a PM, mastering the four key areas—Business, Technology, Design, and Domain—is vital. While it's uncommon to excel in all four, proficiency in at least two is essential. Those who can demonstrate expertise across all categories truly stand out as exceptional Product Managers.
To gain further insights into the PM role and its intricacies, check out the following informative video and consider subscribing to my channel for more content!
This first video discusses the need for companies to rethink their approach to hiring product managers, emphasizing the qualities that truly matter in the current landscape.
The second video delves into the art of creating a "unicorn" in product management, offering valuable strategies and insights for aspiring PMs.