Product Management - Optimizing it at your company

© 2014 280 Group LLC.

Optimizing Product Management

1

Five Strategies for Optimizing

Product Management at Your

Company

A comprehensive study about how to

optimize Product Management to

delight your customers and

dramatically increase profits

© 2014 280 Group LLC.

Download The Phenomenal Product Manager!

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© 2014 280 Group LLC.

Brian Lawley: CEO & Founder

3

Thought Leadership in

Product Management Award

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http://www.280group.com/resource-central/books/42-rules-of-product-management-2/

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Researched and Produced By…

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© 2014 280 Group LLC.

Mission

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We help individuals and companies

do GREAT Product Management

using our Optimal Product

Process™ framework.

Consulting – Contractors – Training - Templates – Books – Coaching - Certifications

© 2014 280 Group LLC.

Why We Commissioned the Study

Worked with thousands of Product Management

Executives

No comprehensive study or data

Further profession

Help others be successful

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© 2014 280 Group LLC.

About the Product Management Study

>25 comprehensive data sources

Millions of dollars of research

Hundreds of hours

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We are pleased to share this informative study with

you!

© 2014 280 Group LLC.

Today’s Agenda

The rise of Product Management

ALL of your products are going to fail

Five reasons for product failure

Massive company/career costs

Five Product Management excellence

strategies

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One: The Rise of Product Management

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How and when did Product

Management come to be?

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Product Management is Now Mandatory

1931 1980’s and 1990’s 2013

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Source: CBS News 2013 poll of corporate executives

Fourth MOST Important in Corporate America

1. CEO

2. Senior Executives

3. General Manager

4. Product Manager

12© 2014 280 Group LLC.

© 2014 280 Group LLC. 13© 2014 280 Group LLC.

Critical For Time to Market

13Source: 2009, Aegis Resources Inc.

Companies that empower

product managers are 50% faster

to market!

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Executives Highly Influenced

Source: 2012 Team Performance Survey, Actuation

58% of Product Management’s

work directly with CEO, CMO,

CFO and VP Sales

14© 2014 280 Group LLC.


CEO’s Demand Product Management Report Directly

Source: 2012 Pragmatic Marketing Survey

30% of CEOs have Product

Management Organizations reporting

directly to them

15© 2014 280 Group LLC.


Product Management Present in All Company Sizes

Source: Salary.com 201316

18%

24%

15%

18%

5%

15%

5%

Product Management By Company Size

<100

100-500

500-1k

1k-7.5k

7.5k-15k

15k-50k

50k+

© 2014 280 Group LLC.


Product Management Present Across In All Industries


15%

13%12%

8%

7%

Product Management by Industry

MFG Durable

Retail & Wholesale

Software & Networking

MFG Nondurable

Healthcare

© 2014 280 Group LLC.


Product Managers Are Experienced

18Source: Salary.com 2013

67% of Product Management’s have >5 Years Experience

12%

21%

32%

22%

13%

Zero to One

Two to Five

Five to Ten

Ten to Fifteen

Fifteen+

© 2014 280 Group LLC.


Product Managers are Well-Educated

19Source: Salary.com 2013

>50% of Product Management’s have Master’s Degrees

1%

3%4%

39%52%

1%

No diploma

High School

Associate's/Certificate

Bachelor's

Master's

Doctorate

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© 2014 280 Group LLC.

Product Management Pays Well – up to $210k


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Product Management Ranked as Top Job

Source: Money Magazine21

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Product Management Well-Positioned To

Become Executives

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Product Management

Sales

Customers

Support

Channel

Operations

Executives

Partners

Engineering

Marketing

Press/Analysts

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Product Management to CEO

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Apple and Product Management

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Mike Markkula: The ORIGINAL Apple Product

Management

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Proctor & Gamble Requires Product

Management

Source: Gale Group

The last seven CEOs have

been former product managers

28© 2014 280 Group LLC.


Can be a VERY Rewarding Job

Source: 280 Group Poll – 30k members 2013

66% of Product Managers motivated by

“Delivering Great Products” and “Driving a

Vision”

29© 2014 280 Group LLC.

© 2014 280 Group LLC.

Product Management Rising: What You Have

Learned

• Product Management is rising

• More important than ever

• Mission-critical

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Two: Your Products are Going to Fail

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What percentage of products fail?

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Answer…

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60% to

95%!

Source: Over 15 research studies

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Most Products Fail

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“75% of new product

develoProduct

Managementent

programs fail

commercially.”

Source: Griffin, A. and Page, A. L. Journal of Product Innovation Management. 1996

© 2014 280 Group LLC.

Most Products Fail

“80% - 95% of new

product introductions

fail.”

Source: “Returning Insight To The Consumer” - New Products Magazine Dec 2006

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Product Failures: What Have You Learned

• Odds are against your products

• Be proactive against failure

• Pay now or pay later

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Three: Why Products Fail

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Failure Point One: Poor Definition

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“Poor definition

was cited as single

biggest reason

products fail to

meet market

needs.”

Source: “Product DeveloProduct Managementent Best Practices Survey: Report of Findings”Product DeveloProduct Managementent Consulting, Inc. 1996.

© 2014 280 Group LLC.

Failure Point Two: Poor Customer Input

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“Seven out of ten product

failures cases resulted from

poor customer input.”

Source: World-Class New Product DeveloProduct Managementent: Benchmarking Best Practices of Agile Manufacturers

© 2014 280 Group LLC.

Failure Point Three: No Market Research

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“Market research was simply

not done in about 75% of new

product develoProduct

Managementents.”

Source: Cooper, R. G., Winning at New ProductsAccelerating the Process from Idea to Launch 2001

© 2014 280 Group LLC.

Failure Point Four: Poor Value Proposition

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“Three out of ten

products fail because of

a poor value

proposition.”

Source: Greg Stevens, James Burley, and Richard Divine,

“Creativity + Business Discipline = Higher Profits Faster from New Product DeveloProduct Managementent,”

The Journal of Product Innovation Management 16 #5 (September 1999), 455 – 468

© 2014 280 Group LLC.

Failure Point Five: Variety of Other Factors

Marketing?

Execution?

Competition?

Strategy?

Timing?

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Central point

Vision & strategy

Whole product

Roadmap/requirement

s

Lead groups

Product Management: Buck Stops Here

Product Management

Sales

Customers

Support

Channel

Operations

Executives

Partners

Engineering

Marketing

Press/Analysts

43

© 2014 280 Group LLC.

Few Survive Without Strong Product

Management

3000 ideas = ONE success

1 in 4 developed get to market

2 of 3 that are launched fail

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Source: Source: Stevens, G.A and Burly, J. 3000 Raw Ideas = 1 Commercial Success”. May/June 1997

3000 Ideas

One Successful

Product

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Why Products Fail: What You Have Learned

• Poor planning = failure

• Weak Product Management = poor planning

• Don’t let this happen to you

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Four: Massive Company & Career Costs

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Almost Half of Money Spent Wasted

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“46% of all

resources allocated

to new products by

US firms is spent on

failed products.”

Source: Stevens, G.A and Burly, J.

3000 Raw Ideas = 1 Commercial Success”. May/June 1997

© 2014 280 Group LLC.

Huge Amount Wasted During DeveloProduct

Managementent

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“70% of product

develoProduct

Managementent life-cycle

costs are determined during

the crucial product definition

phase.”

Source: Committee on Engineering Design Theory and MethodologyNational Research Council. Improving Engineering Design


What’s it cost your company?

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Total # employees 1000

Cost/person working on new products/year (fully

loaded) $150,000

% of employees working on new products 20%

Total Cost

$30,000,00

0

% working on products likely to fail 0.46

Cost

$13,800,00

0

© 2014 280 Group LLC.


Personal Cost to Product Management

Executives

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Career trajectory

Personal brand reputation

Failure to achieve your aspirations

Do NOT let this slow you down

© 2014 280 Group LLC.

© 2014 280 Group LLC.

Product Failure: What You Have Learned

• Most products fail

• Huge waste of resources and money

• Poor planning and weak Product Management

is the cause

• This is personal

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So what are you doing to be

certain your products will

succeed massively?

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© 2014 280 Group LLC.

Five: Five Strategies for Product

Management Excellence

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What makes an optimized Product

Management function?

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People

ProcessTools

© 2014 280 Group LLC.

Strategy One: Assess and Set Goals

Gather data and analyze

Must cover all three areas

- People

- Process

- Tools

Baseline against industry standards

Set goals

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Goals are Critical to Succeed

Harvard study

3% of graduates earn 10X as much as other

97%

Those 3% had clear, written goals

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© 2014 280 Group LLC.

What Are Your Product Management

Organization’s Goals?

Do you have a plan?

What do you want to accomplish?

What are your metrics?

How will you track success?

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© 2014 280 Group LLC.

Strategy Two: Create a Multi-Year Plan

Not a one-time event

CANI (Constant and Never-Ending

Improvement)

1-3 years to achieve world-class Product

Management function

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© 2014 280 Group LLC.

Example of a Product Management-

Optimization Plan

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Year one

- Implement process improvements

- Clarify roles & responsibilities

- Create Product Management career paths

- Provide foundational training to get entire team up to base-level excellence

- Standardize tools/templates to boost productivity and quality of results

- Implement coaching/mentoring program

- Build Product Management portal and community

Year Two

- Measure progress and adjust

- Foundational courses for new Product Managements who have joined

- Advanced courses – soft skills, leadership, Agile

- Professional certifications – entire organization or select stars

- Continued coaching/mentoring

- Expand Product Management community efforts

- Continued education – monthly webinars/seminars

Year Three

- Measure progress and adjust

- Custom courses specific to your improvement areas

- Continue with foundational/custom courses and coaching/mentoring

- Expand Product Management Community, portal and tools efforts

© 2014 280 Group LLC.

Strategy Three: Optimize People

Foundation training

Advanced training

Coaching

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Foundational: Entire

product lifecycle

- Business cases

- Market/customer needs

- Early customer

programs

- Launches

- Marketing

- End of life

Optimizing people: Skills to Develop

Advanced Topics

- Soft Skills

- Leadership

- Soft Skills

- Innovation

- Agile

- Lean

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What percent of Product

Managers have received

training?

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Almost None

<2%!Source: Published Training Numbers 63

© 2014 280 Group LLC.

Training Your Team

Annual commitment

Foundational course to start – full lifecycle

Soft skills

Agile if appropriate

Advanced courses

- Leadership

- Certifications

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Source: Accenture Training ROI study

Training Delivers Measurable Results

17% more productive

20% higher performance levels relative to peers

ROI is 353%

65© 2014 280 Group LLC.

© 2014 280 Group LLC.

Career DeveloProduct Managementent #1

Retention Factor

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“Career develoProduct

Managementent is the

number one factor in

employee retention,

according to a survey of 6,400

employees.”

Source: Sharon Jordan-Evans and Beverly Kaye

© 2014 280 Group LLC.

Without Training Employees WILL leave

67

“Among employees with poor

training opportunities,

41 percent planned to leave within a

year, whereas of those who

considered their company's training

opportunities to be excellent, only

12 percent planned to leave.”

Source: Lou Harris & Associates

© 2014 280 Group LLC.

How to Choose Training

68


Class Size Makes all the Difference

Source: Journal of Educational Psychology

Small class sizes were associated with

significantly higher performance 69© 2014 280 Group LLC.

© 2014 280 Group LLC.

Trainers Must Be Actively Doing Product

Management

Not professors

Not people who only do training

At least 10 years experience

70

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“How To” Skills & Tools

“How” not just what

Lots of hands-on exercises

Templates & skills you can immediately apply

71

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Training Must Cover Entire Product LifeCycle

Flexible framework

Both Product Management and Product

ManagementM

Foundation courses

Any product/stage

72

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Get Your Team Coaches

Fastest way to excellence

Leverage experience and successes/failures

You are spread too thin

73


Coaching Market Growing Massively

75Source: MarketData Report

“The $2.4 billion business coaching

market is growing at about 18% per

year”

© 2014 280 Group LLC.


87% HR Managers: Coaching Value High

76Source: Marketing Sherpa Coaching Study

87%

11%

2%

Very High

Somewhat high

Low

© 2014 280 Group LLC.


Source: Innergized Solutions

Coaching Has Huge Benefits

67% Increase in Teamwork

71% Increase in Relationships with

Supervisors

61% Increase in Job Satisfaction

52% Reduction in Conflict

77© 2014 280 Group LLC.


Coaching Has a HUGE ROI

80Source: 2009 International Coach Federation Client Study

Median coaching ROI is 700%!

© 2014 280 Group LLC.

© 2014 280 Group LLC.

Strategy Four: Definition, Process Tools

Get clarity & agreement on roles/responsibilities

Streamline and upgrade product process

Arm Product Managers with good tools

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Almost Half Of Companies Poorly-Defined

Product Management

Source: Team Performance Survey, ActuationWell-defined Not well-defined or no PM

48%

!

82© 2014 280 Group LLC.

© 2014 280 Group LLC.

Poor or Non-Existent Product Process

84Source: Quantum Whisper 2009 Product Management survey

“30% of companies

surveyed didn’t even

know what product

process was being

used.”


Time Saved Using Templates

85Source: HSC 2011

Templates reduce time to

completion of more effective

documents by 40%

© 2014 280 Group LLC.

© 2014 280 Group LLC.

Strategy Five: Holistic Change Management

Communication and buy-in of plan

Clarity on roles and responsibilities

Executive support

Likely to fail without it

Essential for long-term change

86

Goal: Make REAL change that sticks and has a

huge impact on your organization and your

career

© 2014 280 Group LLC.

McKinsey Study: Change Management

Three year study

311,000 respondents

6,800 CEOs

900 Academic Journal Articles

87

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Failure Due to Non-Holistic Approach

Source: McKinsey

“Only 10% of

transformations succeeded

where companies did not

have a holistic

transformation approach.”

90

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Five Strategies for Product Management

Excellence

• Assess

• Multi-year plan

• Optimize People

• Optimize Process & Templates

• Holistic Change Management

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It’s Our Hope You Have Learned…

The rise of Product Management

Product failure

Five failure factors

Massive costs of failure

Five Product Management excellence strategies

92

© 2014 280 Group LLC. 95

Would anyone hear like to know a

little more about what the 280 Group

does?

We have a five minute overview…

© 2014 280 Group LLC.

World’s Best Consultants and Trainers

Hand-picked from Brian’s network

15-30 years experience

Certifications: CProduct Management/CProduct

ManagementM/ACProduct Management

Authors

Thought-leaders

Well-known experts

97

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Who Trusts Our Work?

98

http://www.adobe.com/

http://www.adobe.com/

http://www.netcom.com/

http://www.netcom.com/

http://www.telocity.com/

http://www.telocity.com/

http://www.280group.com/projects.htm

http://www.280group.com/projects.htm

© 2014 280 Group LLC.

280 Group: The Only Complete Solution

10

0

Foundation & Advanced Training

Product Management

Office Templates &

Books

Coaching

Assessments

© 2014 280 Group LLC.

Optimal Product Process™

>200 years experience

Agile, Lean, Waterfall

Flexible

Strategic/Tactical

10

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© 2014 280 Group LLC.

How the 280 Group Can Help You

Full assessment

Build multi-year plan

Optimize:

- People: training, coaching

- Process: customized to your situation

- Tools: Product Management Office™

Change management for organization alignment

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2

© 2014 280 Group LLC.

280 Group Highly-Effective Training

Working instructors with 15-30 years

experience

Foundation course: Optimal Product

Management

Advanced & custom courses

“How To” skills applied immediately

Small classes

Corresponding templates 10

3

© 2014 280 Group LLC.

Coaching to Make You Successful

Seasoned, experienced coaches

Assessment and career plan

Every ten days

Focus where help needed most

10

4

© 2014 280 Group LLC.

Product Management Office Professional™

More effective documents faster

Over 200 best practices templates

Covers entire product lifecycle

Taught in courses – use immediately

Covers everything in Product Management!(Business case, MRD, roadmaps, launch plan, marketing plan, end of life, beta programs and more)

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Product Management - Optimizing it at your company

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Transcript of Product Management - Optimizing it at your company