Knowledge for product managers
|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
Heads of product management are often inadequately prepared for their demanding role. Experience as a product manager and attendance at a management seminar are necessary, but by no means sufficient. In fact, a head of product management must master a wide variety of strategic, procedural and leadership-related topics in order to establish and develop effective product management. At the same time, the role of product management manager is probably one of the most interesting jobs there is.
Role 1 – The product manager
A Head of Product Management 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 form 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 head of product management will be able to develop a better sense of how to lead and manage this area successfully. In many cases, heads of product management were previously PMs themselves. However, there are always exceptions, especially if the head of the product management function is performed by a BU manager, for example, or if the head of product management was previously a sales manager, R&D manager or service manager.
In practice, heads of product management are often required to temporarily assume responsibility for a specific product area. This is particularly true when it comes to products and markets that are still relatively distant 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 head of product management 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 head of product management forms the overarching bracket. In this role, the head of product management 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 head of product management 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, and 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 head of product management 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 that the benefits
of product management are transparent and communicated. To do this, the head of product management must actively pursue stakeholder management at the department head level and with the company management. As there is no linear management power available to them here, the head of product management, like their product managers, requires lateral management expertise.
Role 5 – Organiser and administrator
Like any manager with line responsibility, the head of product management 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 the PM KPI system and monitor the effectiveness and efficiency of processes using KPIs
- Eliminate obstacles and bottlenecks, and ensure data access rights for employees
- Recognising and enforcing capacity requirements, time recording and analysis
- Budget planning for the department, personnel back-up planning, and risk management
Role 6 – The Team Leader
As head of department, the head of product management 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
Are you ready to take the lead in product management and kick things into high gear?
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.
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