improving organizational effectiveness in product management
DESCRIPTION
Product management, like any complex organizational design, is not perfect. There are communication breakdowns, blurred lines of responsibility, and changes in strategy that cause firms to question its value or even consider major reorganization efforts. Before your firm dives into either initiating OR eliminating a product management architecture, join us to explore a few tips and tools on both the need for, and the effectiveness of, a product management structure.TRANSCRIPT
University of Wisconsin-Madison
Executive Education
Product Management: Improving Organizational Effectiveness
Linda GorchelsDirector, Executive Marketing Programs
Fluno Center for Executive EducationSchool of Business, UW-Madison
(608) [email protected]
University of Wisconsin-Madison
Executive Education
Questions we’ll explore …
• How do product manager roles
relate to organization structure?
• What factors affect the “structural
fit” of product management?
• How can cross-functional
expectations be better aligned?
University of Wisconsin-Madison
Executive Education
Let’s start with the basics
University of Wisconsin-Madison
Executive Education
Strategic product line planning
New product development
Product life cycle management
Annual marketing planning
Advertising & promotions
Sales support
Product support
“Upstream planning”
(strategic)“Downstream planning”
(tactical)
Product planner
Tactical products manager
Product marketing manager
Product manager
Product Manager Continuum
University of Wisconsin-Madison
Executive Education
How do product managers work?
• Product managers must work through other people in a matrix structure (over a traditional structure).
• The various functions become “resources.”
• The product manager becomes the central knowledge repository.
University of Wisconsin-Madison
Executive Education
What are traditional structures?
• Functional • Divisional
CEO
Div. A
MFG Mktg
Div. B
MFG
Div. C
Mktg
CEO
HR Mktg Mfg
University of Wisconsin-Madison
Executive Education
Matrix structures
• Transparent
• Heavyweight
• Autonomous
University of Wisconsin-Madison
Executive Education
External
Environment
Culture
Structural Goodness-of-Fit
University of Wisconsin-Madison
Executive Education
Where PM fits – varied views
• The Cranky Product Manager - Why it doesn’t matter where Product
Management lives in the organization
• Marty Cagan, Silicon Valley Product Management Group – Where Should
Product Management Live?
• Rich Mirnov, Enthiosys – Where Should PM Report?
• Steve Johnson, Pragmatic Marketing – The Strategic Role of Product
Management
University of Wisconsin-Madison
Executive Education
Potential influence roadblocksChannels
General
public
Top
management
Sales
Purchasing
Legal
Customers Marketing
Research
Engineering
Customer
Service
Mfg
Finance
VOC
University of Wisconsin-Madison
Executive Education
Need to break through the walls
Salespeople feel they
“own” the customer
relationship
“Techies” feel
they are the
guardians of
innovationMarketers feel they
have objective
information
Production
wants to
minimize
change-
orders
Project
leaders want
to meet
critical
deadlines
University of Wisconsin-Madison
Executive Education
Product Management
Functional Positions
Customer
Channel Positions
What are the mutual
expectations?
What can I expect from product managers? What should they expect from me?
What can I expect from product managers? What should they expect from me?
12
University of Wisconsin-Madison
Executive Education
Key points
To increase the success quotient for product
management:
– Clarify the balance of upstream and downstream
responsibilities expected of the position.
– Assess the dimensions that affect the structural
goodness-of-fit.
– Gather and share mutual cross-functional expectations.