The Strategic Role of Product Management
How a market-driven focus leads companies to build products people want to buy.
Who in your organization is focused on next year and the one after, the next product, the next market?
- Steve Johnson, author of Strategic Role of Product Management
Download The Strategic Role of Product Management e-book (.pdf)
Watch a webinar on The Strategic Role of Product Management
Does product management matter? Does it have an impact on the business and its strategy? Pragmatic Marketing has been helping product managers and marketers become more effective using practical (pragmatic) techniques for more than 15 years.
This free e-book explains why product management is a critical, strategic role in a technology company. One which guides products to be created based on a market need, not because some thinks it is a good idea.
Marketing people know how to communicate; product managers know what to communicate.
Sales people know what one customer wants to buy; product managers can determine if the deal represents a single customer or a market full of customers.
Developers know what can be built; product managers know whether it should be built.
About the author
Steve Johnson has many years of experience leading product management teams, and over a decade of teaching seminars around the world to product managers, marketers and company executives. This e-book is Steve’s guide for technology companies looking to build products people want to buy.
Download the Kindle Edition of The Strategic Role of Product Management ($0.99)

Attend the Practical Product Management seminar to learn more about the strategic role of product management.
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Commentary on the Strategic Role of Product Management
Jeff Lash at How to be a Good Product Manager
Delegate Tactical Responsibilities
If you want to be a bad product manager, do everything yourself. You’re the product manager, after all, so you should be the final authority on everything related to the product. You should be the one answering questions from salespeople, drafting press releases for marketing, defining all of the processes for suppliers, and poring over every detail with engineering. Sure it takes a lot of your time, but that’s what a product manager should be spending time on. What other more important things are there to do?
If you want to be a good product manager,delegate tactical activities to allow you to spend time on the strategic aspects of the job. Effective product managers pass on product knowledge and responsibility for tactical decision-making as much as possible to others on the product development team. By leveraging the rest of the team, the product manager can focus on the strategic role of product management.
It is difficult for many product managers — especially new product managers — to effectively balance the strategic and tactical priorities of product management. With so many competing priorities, the minutia and day-to-day tends to take over. To extend a common metaphor, it’s not just that product managers sometimes focus on the trees instead of the forest — they go so far as to end up focusing on a specific piece of bark.
While it is easy to say that product managers should be more strategic and less tactical (see Spend your time in the right places, for example), actually accomplishing that is a significant challenge. Pragmatic Marketing recently released the free ebook “The Strategic Role of Product Management,” by Steve Johnson, which describes why product management is a strategic role and why product managers need to think and act strategically. Buried in the “Final thoughts” section is this beautiful nugget of wisdom (emphasis added):
Product management is a strategic role. Yet as experts in the product and the market, product managers are often pulled into tactical activities. Developers want product managers to prioritize requirements; marketing people want product managers to write copy; sales people want product managers for demo after demo. Product managers are so busy supporting the other departments they have no time remaining for actual product management. But just because the product manager is an expert in the product doesn’t mean no one else needs product expertise.
Product managers should take heed of this last sentence. Think about all of the tactical activities in which you engage — documenting details, answering questions, describing functionality, responding to feedback, tracking down responses, and the like. How much of your time is taken up by these activities? Why are you engaged in them? Is it because
- you are the only person in the company who knows how?
- everyone else is busy and you are the only one who has free time?
- they are so important that they must be done by you and only you?
The answer to these questions is probably an emphatic NO in most cases. The real reason that product managers are engaged in these activities is because they have done them in the past, so others assume they will do them in the future. Every time a product manager writes copy for marketing, or conducts a demo for sales, or investigates some technical issues for development, the product manager creates the expectation that he or she will do that in the future. Obviously, there are some occasions where this may be appropriate, However, the vast majority of the time, the product manager can and should be giving the necessary direction, context, and guidance to allow other people to accomplish these tasks themselves.
Most product managers do not have staff reporting to them, so it is not necessarily as easy as delegating tasks to a direct report. Instead, product managers need to leverage others and teach them to be self-sufficient. This is not to say that product managers should ignore requests or haphazardly push off their responsibilities, of course. Instead, product managers should look to make those around them more effective by providing them with the tools, information, or resources they need.
Every time you as a product manager are presented with a task, ask yourself these questions:
- Is this helping to advance the product strategy?
- Does this support one of the high-level goals for my product?
- Is there anyone else within the company besides me who can accomplish this task (e.g. answer this question, investigate this problem)?
- Is this something that has come up before or is likely to come up again?
- Is this a valuable use of my time?
It’s never easy saying “no,” though it may be easier to look at it this way — every time a product manager says “yes” to something that is tactical and routine, they are saying “no” to something that is forward-looking and strategic. Which would you feel more comfortable telling your boss — or the CEO — that you said “no” to?
So what do you do with the tactical activities — those requests for copy writing, operational meetings, responses to customers, and discussions of detailed product minutia? Ask yourself — and others — whether they are really necessary, or at least whether it is really necessary for you to be included. Going back to the three questions posed earlier, look at why you are engaged in tactical activities:
- If you are the only one who knows some vital piece of information, figure out some way to rectify that. Document it, communicate it, teach it to others, pick someone to transfer knowledge — find some way to make sure that someone else has the information. Beyond just providing better use of your time, this can be vital for business continuity and succession planning.
- If everyone else is claiming to be busy and is offloading responsibilities, the same can be doubly true for a product manager. Help create ways for people to answer questions or streamline tasks on their own, rather than passing on their additional work for you.
- If there really are activities that appear to be vital enough to be performed by you and only by you, analyze those activities closely. Some may seem critical at first glance, though upon review you may notice that they are not as important as originally thought. Also, other people may be turning to you because they think you want to be involved, or because they think you would be offended if you were not consulted. Just because someone else thinks a task is crucial enough that it must only be done by you does not mean that you have to agree with them.
Lastly, if you are involved in these activities only because you have always been — well, then make it a resolution to stop today! The more product managers can think about their role as being strategic and market-focused, the more they can add value to the organization and to customers. Effective product managers help create more product expertise within the company. This gives the product manager as much time as possible to focus on the reason the company created the position — to add value by creating and improving market-focused products.
Michael Ray Hopkin at Lead on Purpose
Though the role of product manager differs from one company to the next, most product managers I know believe they drive the strategy for their products. I suppose in most cases they do. Strategic product managers spend time understanding the market and directing product activities toward meeting those activities. CEOs and other executives don’t always (or often) understand this. Therefore, part of the product manager’s job becomes educating executives on the strategic importance of understanding the market.
I found a great new resource for educating people on the strategic role of product management. Yesterday Steve Johnson released an ebook called The Strategic Role of Product Management. He answers several questions such as who needs product management, what is marketing, and where does product management belong in an organization. It’s written in an easy-to-read format, in Steve’s unique and witty style, with stories that drive home key points. It’s replete with facts and statistics based on the many years of research carried out by Pragmatic Marketing. One of the key takeaways for me is the focus on helping people in other roles understand why product management is strategic. The following quote provides some insight on this:
Instead of talking about the company and its products, the successful product manager talks about customers and their problems. A product manager is the voice of the market full of customers.
One last thought about the importance of leadership. I found a quote by Dee Hock (founder of Visa) that provides good advice for product managers who need help convincing executives of their strategic role:
Control is not leadership; management is not leadership; leadership is leadership. If you seek to lead, invest at least 50% of your time in leading yourself—your own purpose, ethics, principles, motivation, conduct. Invest at least 20% leading those with authority over you and 15% leading your peers.
Roger Cauvin at Cauvin
Pragmatic Marketing's Steve Johnson has written an e-book, The Strategic Role of Product Management. In it, Steve argues that strong product management is key to the success of a company when it is strategic and focuses on identifying and solving market problems.
A key graph from the book is
Increasingly we see companies creating a VP of Product Management, a department at the same level in the company as the other major departments. This VP focuses the product management group on the business of the product. The product management group interviews existing and potential customers, articulates and quantifies market problems in the business case and market requirements, defines standard procedures for product delivery and launch, supports the creation of collateral and sales tools by Marketing Communications, and trains the sales teams on the market and product. Product Management looks at the needs of the entire business and the entire market.
What can you, as a corporate executive, do to enable the strategic product management that will contribute to your company's success?
- Create a product management department in your company.
- Ask your product managers to lead the company's positioning efforts.
- Hire interaction designers and user interface designers that free your product managers to focus on documenting market requirements.
- Support your product managers' efforts to call and visit both prospective and existing customers.
- Make sure your QA team tests not just against technical specifications, but also tests that your products solve the problems your product managers identify in the market.
- Make sure your product managers are experts in the principles governing positioning, pricing, and naming.
Above all, stand up for the strategic recommendations of your product managers. In the face of interdepartmental paralysis, effective product management requires strong executive support.
Download The Strategic Role of Product Management e-book
PM in a strategic role
Research
Our Research
We have found in all cases that product managers can change the way products are developed, marketed, and sold by focusing on the problems of the market rather than the features of the product. Our research is consistent around the world. Successful products come from the companies that know the market and its problems. Check the Pragmatic Marketer’s article on “Products and services that resonate” at http://www.pragmaticmarketing.com/publications/magazine/6/2/why-didnt-we-think-of-that
SAAS
SaaS Business Model
The big impact SaaS has on product management is that it tends to pull product managers into more urgent operational and individual customer issues. SaaS packaging seems to involve more daily and weekly decision-making. That’s why many SaaS companies supplement the product manager (who should be monitoring the future market and potential offerings over months and years) with an operations manager (who monitors the daily health of the current customers and existing products over days and weeks).
Saas Business Model
Steve's webinar on this topic "Roadmaps, Requirements, ..." is a must to listen to to help you organize this barage of FR's.
Communication out becomes very critical the the influx of communication "in" when working with SaaS solutions.
How ave you dealt with these issues?
Critera
Qualities of a Product Manager
Agile Environment
Agile Environment
The challenge for many product managers is that they are getting pulled into (or are imposing themselves onto) development management. Effective product managers focus on product managementand leave development to the developers. Learn more about product management in agile at http://www.pragmaticmarketing.com/publications/topics/06/0606sj/ and at Stacey Weber’s blog at http://theagileproductmanager.blogspot.com/
MARCOM
Marcom
Tactical to Strategic
On the Framework
The CEO
Use the Framework
Software PM's
Product Managers
Product managers from the sales ranks know the market, know the product, know how to demonstrate and close and answer technical questions. They’re great! Their biggest challenge is to step away from their sales orientation—the issues of today’s big deal, the urgent client problem—and focus on market full of clients.
Here’s the best source of product managers: hire your competitor’s top sales engineer. He or she cannot be promoted because they are so good. Your competitor’s best SE already knows your market, they know their product (and yours), they know how to travel but they are ready to travel less than 110%.
Buyer Personas
Buyer Personas
The more time you spend with clients, the more obvious your personas become. Creating a persona is not a creative writing exercise (although it certainly helps to be creative). Instead, persona development is grounded in research.
We at Pragmatic Marketing know product managers: we visit dozens of them weekly; we survey hundreds in our annual survey; I can review their technical stats in my website logs. I can tell you everything about Robin, the product manager and Alan, the director of Strategy.
Do you know your customers? Are they fictional characters? Or are they archetypes grounded in research? Personas give us a programming and marketing target. Make sure that everyone in the company has clarity on our customer so we can deliver product that meet their needs and marketing collateral that answers their questions.
Read more in http://www.pragmaticmarketing.com/publications/magazine/1/4/0310sj and http://www.pragmaticmarketing.com/blogs/productmarketing/archive/2007/08/28/knowing-your-personas/
The Role of Product Management
Customers with requirements...
One of my favorite clients is a church headquarters. They have dozens of product managers supporting their internal infrastructure. They want to run their IT like a business including formalized product requirements, clear market positioning, and sales tools that help their distributed churches “buy” the right solutions.
Yet I’ve had this discussion with some organizations that just stare at me blankly. “What’s a customer?” they ask. One government agency thinks of us as taxpayers, not customers—which says a lot, doesn’t it?
Whether a church, an internal IT group, or a vendor, we all have customers with requirements.
Understanding the Market
Be part of it.
Many product managers come from the client world so we already know more about the technology and domain than an outsider. But we have to keep that information current. If you’ve been a product manager for more than a couple of years, you areout of date; you no longer understand the realities of the job. The best way to understand the problems in a market is to observe them. Go visit to customers and resist the temptation to talk. Watch with your eyes open and your mouth closed.
For more on conducting research, see Barb Nelson’s series on understanding the market at http://www.pragmaticmarketing.com/publications/magazine/1/2/07bn
Buy In
Getting Buy In
We have consistently heard that developers embrace our problem-oriented approach to writing requirements as explained in our Requirements That Work seminar and our “Writing the Market Requirements Document” article at http://www.pragmaticmarketing.com/publications/topics/01/0104sj/
Question
Prove It!
Survive to fight another day
Emergency Mode
A company that is always in a state of emergency will quickly find that its best people are leaving for a company that is being run by adults.
Lost Prospects
Win/loss analysis
Win/loss analysis tells us what we do right and wrong in selling. For product management purposes, you may need to visit only one or two each month to learn what you need to know about problems in selling. But I suggest that you look at your list of questions—and then look at them again from the customer’s point of view. Are you asking sales questions (focused on‘how I can sell you better next time’) or are you asking product management questions (focused on ‘how we can create a better product in the future’)?
Product managers tell me repeatedly that they visit lost customers quite easily. One said that he had a 100% success rate. I suspect he starts by saying, “I’m not selling.” Another product manager told me that she did a dozen win/loss calls, wrote it up, and gave it to her VP. A few days later, the VP told her that the win/loss was the only fact-based document in the entire company. Kudos!
Read more about win/loss analysis in http://www.pragmaticmarketing.com/publications/magazine/1/3/08bn
Roadmapping
Roadmapping
A roadmap is not a litany of committed features. A roadmap shows where we’re planning to go without guaranteeing that we’ll get there. Roadmaps are not always graphical and they don’t always show a timeline.
We offer five types of roadmaps in our Pragmatic Roadmapping seminar, each focused on a different audience. One quick tip: you probably should not show your internal roadmap to sales people or customers orbefore you know it, your plan has become a commitment.
Learn more about roadmapping at http://www.pragmaticmarketing.com/publications/magazine/2/2/0312sj
Tools
Embracing from the CEO Down
Research Tools
Recommendations?
Prove the framework by living it
The Triangle
The Center of the Triangle is the Grid
Getting Strategic
Getting Strategic
I have long been an advocate for the role of sales engineering. Read more at http://www.pragmaticmarketing.com/publications/magazine/2/5/0410sj/
Lead Generation
Lead Generation
For more on marketing programs, learn about our Effective Product Marketing session at www.pragmaticmarketing.com/epm.
Career paths
Career paths
But for many, product management is the ideal job. It was for me! The great thing about product management is that you touch every part of the company: you work with development, marcom, sales, support, services, finance, operations, production, and more. You work with everyone in the company. Only one other role has the same holistic view of the company… CEO.
Career paths
Tools and Templates
Tools and Templates
Teams Attending Seminars
Bring the Whole Team!
Educating Executives
Educating Executives
Newbie Product Manager
Newbie Product Manager
In the end, your team has to ask: where do requirements come from? If you don’t answer “the market” then this will be an uphill battle. While it is true that people don’t know what features they need, people do know what problems they have. Or can recognize them when problems are shown to them.
Or here’s another approach. Just do it. Interview 10 customers this month and start being a name-dropper. At your next development meeting, say “really? Is that what you think? Because Jim Brunke at J P Morgan Chase told me something else entirely. He said, …”
Don’t try to show them with your words; show them with results.
Question
CEO Playing Director of Product Stategy
The one who owns these activities is the one who writes them down and keeps them current. Is that your CEO (or president, head of business development, director of strategy, product manager)?
Ask your CEO,
• How many customer visits have you documented this month?
• When was the last time you watched a client doing the job?
• When was the last time you interviewed a client without demoing the product
• How many win/loss interviews did you complete this month?
• What are the top three product issues according to customer support?
• What are the top three buying issues according to the sales channel?
(Oh, and if you’re a product manager, ask yourself the same questions.)
New Position
New Position
And of course, the best way to start a new job is to make sure you have current skills, so you’ll definitely want to attend Practical Product Management to get grounded in best practices—andpractical ones—forproduct management.
Pricing
Pricing
The Triad
The Triad
The way I have organized the triad may not work for everybody. Feel free to change the coloration to better fit your environment. However be cautious of adding or removing activities. We often find that companies have added non-product management activities, such as beta test and writing RFPs, because product managers have the skills to do them—not because it has anything to do with product management. In these two specific cases, beta testing should be run by QA and RFPs should be written by sales and sales engineering. Just because a product manager can do it, doesn’t mean he should.
comments
i read this column its so great and in line of job responsibilities of product manager. i happy to read it.
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hello
what roles do consumer and supplier play in new product definition and production?..





Great e-book!
This is a great e-book and one I will pass around to our Executives. Do you know what percentage of companies use product managers in a strategic role vs. a tactical role?