Product Management - Optimizing it at your company

transcript

Optimizing Product Management

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

Download The Phenomenal Product Manager!

http://go.280group.com/pcamp-opp

Brian Lawley: CEO & Founder

Thought Leadership in

Product Management Award

Researched and Produced By…

Mission

We help individuals and companies

do GREAT Product Management

using our Optimal Product

Process™ framework.

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

Why We Commissioned the Study

Worked with thousands of Product Management

Executives

No comprehensive study or data

Further profession

Help others be successful

About the Product Management Study

>25 comprehensive data sources

Millions of dollars of research

Hundreds of hours

We are pleased to share this informative study with

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

One: The Rise of Product Management

How and when did Product

Management come to be?

Product Management is Now Mandatory

1931 1980’s and 1990’s 2013

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

Critical For Time to Market

13Source: 2009, Aegis Resources Inc.

Companies that empower

product managers are 50% faster

to market!

Executives Highly Influenced

Source: 2012 Team Performance Survey, Actuation

58% of Product Management’s

work directly with CEO, CMO,

CFO and VP Sales

CEO’s Demand Product Management Report Directly

Source: 2012 Pragmatic Marketing Survey

30% of CEOs have Product

Management Organizations reporting

directly to them

Product Management Present in All Company Sizes

Source: Salary.com 201316

Product Management By Company Size

100-500

500-1k

1k-7.5k

7.5k-15k

15k-50k

Product Management Present Across In All Industries

13%12%

Product Management by Industry

MFG Durable

Retail & Wholesale

Software & Networking

MFG Nondurable

Healthcare

Product Managers Are Experienced

18Source: Salary.com 2013

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

Zero to One

Two to Five

Five to Ten

Ten to Fifteen

Fifteen+

Product Managers are Well-Educated

19Source: Salary.com 2013

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

39%52%

No diploma

High School

Associate's/Certificate

Bachelor's

Master's

Doctorate

Product Management Pays Well – up to $210k

Product Management Ranked as Top Job

Source: Money Magazine21

Product Management Well-Positioned To

Become Executives

Product Management

Customers

Support

Channel

Operations

Executives

Partners

Engineering

Marketing

Press/Analysts

Product Management to CEO

Apple and Product Management

Mike Markkula: The ORIGINAL Apple Product

Management

Proctor & Gamble Requires Product

Management

Source: Gale Group

The last seven CEOs have

been former product managers

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”

Product Management Rising: What You Have

Learned

• Product Management is rising

• More important than ever

• Mission-critical

Two: Your Products are Going to Fail

What percentage of products fail?

Answer…

60% to

Source: Over 15 research studies

Most Products Fail

“75% of new product

develoProduct

Managementent

programs fail

commercially.”

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

Most Products Fail

“80% - 95% of new

product introductions

fail.”

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

Product Failures: What Have You Learned

• Odds are against your products

• Be proactive against failure

• Pay now or pay later

Three: Why Products Fail

Failure Point One: Poor Definition

“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.

Failure Point Two: Poor Customer Input

“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

Failure Point Three: No Market Research

“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

Failure Point Four: Poor Value Proposition

“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

Failure Point Five: Variety of Other Factors

Marketing?

Execution?

Competition?

Strategy?

Timing?

Central point

Vision & strategy

Whole product

Roadmap/requirement

Lead groups

Product Management: Buck Stops Here

Product Management

Customers

Support

Channel

Operations

Executives

Partners

Engineering

Marketing

Press/Analysts

Few Survive Without Strong Product

Management

3000 ideas = ONE success

1 in 4 developed get to market

2 of 3 that are launched fail

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

3000 Ideas

One Successful

Product

Why Products Fail: What You Have Learned

• Poor planning = failure

• Weak Product Management = poor planning

• Don’t let this happen to you

Four: Massive Company & Career Costs

Almost Half of Money Spent Wasted

“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

Huge Amount Wasted During DeveloProduct

Managementent

“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?

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

% working on products likely to fail 0.46

$13,800,00

Personal Cost to Product Management

Executives

Career trajectory

Personal brand reputation

Failure to achieve your aspirations

Do NOT let this slow you down

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

So what are you doing to be

certain your products will

succeed massively?

Five: Five Strategies for Product

Management Excellence

What makes an optimized Product

Management function?

People

ProcessTools

Strategy One: Assess and Set Goals

Gather data and analyze

Must cover all three areas

- People

- Process

- Tools

Baseline against industry standards

Set goals

Goals are Critical to Succeed

Harvard study

3% of graduates earn 10X as much as other

Those 3% had clear, written goals

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?

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

Example of a Product Management-

Optimization Plan

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

Strategy Three: Optimize People

Foundation training

Advanced training

Coaching

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

What percent of Product

Managers have received

training?

Almost None

<2%!Source: Published Training Numbers 63

Training Your Team

Annual commitment

Foundational course to start – full lifecycle

Soft skills

Agile if appropriate

Advanced courses

- Leadership

- Certifications

Source: Accenture Training ROI study

Training Delivers Measurable Results

17% more productive

20% higher performance levels relative to peers

ROI is 353%

Career DeveloProduct Managementent #1

Retention Factor

“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

Without Training Employees WILL leave

“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

How to Choose Training

Class Size Makes all the Difference

Source: Journal of Educational Psychology

Small class sizes were associated with

Trainers Must Be Actively Doing Product

Management

Not professors

Not people who only do training

At least 10 years experience

“How To” Skills & Tools

“How” not just what

Lots of hands-on exercises

Templates & skills you can immediately apply

Training Must Cover Entire Product LifeCycle

Flexible framework

Both Product Management and Product

ManagementM

Foundation courses

Any product/stage

Get Your Team Coaches

Fastest way to excellence

Leverage experience and successes/failures

You are spread too thin

Who Needs A Coach?

Everyone!

Coaching Market Growing Massively

75Source: MarketData Report

“The $2.4 billion business coaching

market is growing at about 18% per

year”

87% HR Managers: Coaching Value High

76Source: Marketing Sherpa Coaching Study

Very High

Somewhat high

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

Training Delivers 18% Productivity Gain

What if you combine training

with coaching?

Coaching with Training: 88% Gain

Source: Summers, 2004

400%More Effective!

Coaching Has a HUGE ROI

80Source: 2009 International Coach Federation Client Study

Median coaching ROI is 700%!

Strategy Four: Definition, Process Tools

Get clarity & agreement on roles/responsibilities

Streamline and upgrade product process

Arm Product Managers with good tools

Almost Half Of Companies Poorly-Defined

Product Management

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

75% of Companies Don’t Understand Product

Management

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%

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

Goal: Make REAL change that sticks and has a

huge impact on your organization and your

career

McKinsey Study: Change Management

Three year study

311,000 respondents

6,800 CEOs

900 Academic Journal Articles

What percentage of transformations fail?

Percentage of Failed Transformation

Source: McKinsey

70%!89

Failure Due to Non-Holistic Approach

Source: McKinsey

“Only 10% of

transformations succeeded

where companies did not

have a holistic

transformation approach.”

Five Strategies for Product Management

Excellence

• Assess

• Multi-year plan

• Optimize People

• Optimize Process & Templates

• Holistic Change Management

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

Researched and Produced By…

Download The Phenomenal Product Manager!

http://go.280group.com/pcamp-opp

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