The role model for heads of product management

Home The role model for heads of product management

Basis for the successful management of your product management organisation

A contribution by Thomas Bauch, Managing Director PM1

PM managers are often inadequately prepared for their demanding role. Although experience as a product manager and attending a management seminar is necessary, it is by no means sufficient. In fact, a PM manager must master a wide variety of strategic, process-related and leadership-related topics in order to establish and expand effective product management. At the same time, the role of PM manager is probably one of the most interesting jobs of all.

Role 1 – The product manager

A PM manager should be able to take on the role of product manager themselves. This is not about taking the work off the individual product managers, but about being able to lead the area successfully. The understanding and experience that the PM is the entrepreneur for the product forms the basis for this. This is complemented by an understanding of the individual PM roles, all PM processes, methods and tools.

By being able to draw on their own experience of the topics and tasks of a product manager, the PM manager will be able to develop a better sense of how to successfully lead and manage this area. In many cases, PM managers were previously PMs themselves. However, there are always exceptions, especially if the PM manager function is performed by a BU manager, for example, or if the PM manager was previously a sales manager, R&D manager or service manager.

In practice, PM managers are often required to temporarily assume responsibility for a specific product area. This can particularly be the case when it comes to products and markets that are still relatively far removed from the existing portfolio. In this case, the product manager role can then also take on the role of business development manager.

These topics are part of the role:

Manifesto ‘The PM is the entrepreneur for the product’
PM core function, PM role model, PM processes and methods
Customer voice, market observation, determination of market structure and potential
Product business plan, product roadmap, specification sheet
Product market launch, product life cycle management, product discontinuation

Role 2 – The Product Portfolio Manager

An important role of the PM manager is to strategically control and manage the entire product portfolio covered by the PM team. While the product managers often already have partial portfolio responsibility for the product area they are responsible for, the PM manager forms the overarching bracket. In this role, the PM manager has a direct influence on the company’s success.

This means strategically managing all products with regard to phase-in, in-market and phase-out, with a direct link to the corporate strategy and by synchronising resources with the relevant specialist departments. In order to achieve this, appropriate processes, tools and KPIs must be established.

The integration of the idea management process with product portfolio management is particularly important to ensure the company’s ability to innovate. To this end, a clear link must be established between the desired target portfolio and the filter criteria of the phase-in innovation funnel. Practical experience shows that the product portfolio manager role is often only a sporadic or inconsistent role. This then manifests itself in major problems when prioritising R&D projects and in a delay in marketing measures.

And these are the topics that are linked to this role:

Product portfolio structuring, portfolio planning cycle, overall and sub-portfolio synchronisation
Existing product portfolio analysis, target product portfolio definition, portfolio KPIs
Idea management process, product portfolio roadmap, derivation of R&D roadmap and project prioritisation
Digitalisation of the product portfolio

Role 3 – The organisational developer

As long as the maturity level of the PM organisation has not already been fully reached and the company’s framework conditions are not static, a PM manager will also repeatedly take on the role of organisational developer. The entire ‘product management operating system’ needs to be constantly scrutinised, continuously developed or, if necessary, radically restructured.

This includes all operational elements such as the organisational structure, process organisation, methods and tools, objectives and KPIs. An important instrument for this work is the creation and maintenance of a PM organisation roadmap, which makes the planned development steps and milestones comprehensible for both the PM team and important stakeholders.

Topics and tasks of this role

Analysis and clarification of the goals, framework conditions, requirements for product management, including clarification of ‘What is the product?’
Definition of a product management blueprint including organisational structure, processes, methods and tools, goals and KPIs, personnel requirements and scaling
Development of a PM organisation roadmap, project management and implementation of the operating system elements, change management

Role 4 – The ambassador

The PM manager plays an important role as an ambassador for the positioning and acceptance of product management in the company. Compared to other departments, the product management function was often only introduced into the company at a later stage. This requires product management to be continuously represented and positioned positively within the company. One important aspect is to emphasise the benefits

of product management transparent and communicated. To do this, the PM manager must actively pursue stakeholder management at department head level and with the company management. As there is no linear management power available to them here, the PM manager, like their product managers, requires lateral management expertise.

Role 5 – Organiser and administrator

Like any manager with line responsibility, the PM manager also has a number of organisational and administrative tasks to perform. In this role, you are the ‘operator’ of the ‘PM operating system’, i.e. in the ‘run phase’. As an organisational developer, you were in the ‘build phase’. It is now a matter of ensuring the actual ‘operation’ of your organisational unit and making sure that processes and tools in particular work and are adhered to.

Topics and tasks:

Operator of the PM operating system, monitoring compliance with processes and tools
Set up PM KPI system and monitor effectiveness and efficiency of processes using KPIs
Eliminate obstacles and bottlenecks, ensure data access rights for employees
Recognising and enforcing capacity requirements, time recording and analysis
Budget planning for the department, personnel back-up planning, risk management

Role 6 – The Team Leader

As head of department, the PM manager is of course first and foremost a manager. They have to manage the team of product managers and, if necessary, other roles in disciplinary and technical terms. This also includes hiring new employees and, if necessary, replacing unsuitable employees. The definition of the necessary competences for the individual roles and the resulting employee development is therefore of particular importance.

high importance. Assessing the personality of employees and consciously putting together the team mix is also very important. The regular assessment of performance and the organisation of staff appraisals is an important part of this role. In terms of content, the product portfolio should be divided into corresponding sub-areas and responsibility for these should be transferred to the product managers.

Topics and tasks of the team leader:

Know the difference between management vs. leadership
Professional and disciplinary management of the team, employee management and motivation, employee coaching, definition and monitoring of targets
Employee appraisals, performance evaluation, qualification and personnel development,
Staffing and team composition, effective recruiting
Organising the product portfolio areas of responsibility and job descriptions

Would you like to PM manager role switch on the turbo?

Our PM1 Leader Camp is aimed at prospective product management leaders preparing for their new role or PM leaders with initial practical experience as well as experienced product management leaders who want to increase their efficiency or are facing major challenges with their PM organisation.

To the PM1 Leader camp