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University of Wisconsin-MadisonExecutive Education

Product Management:

Improving Organizational Effectiveness

Linda GorchelsDirector, Executive Marketing Programs

Fluno Center for Executive EducationSchool of Business, UW-Madison(608) 441-7336

lgorchels@exed.wisc.edu

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Questions well explore

How do product manager roles

relate to organization structure?

What factors affect the structural

fit of product management?

How can cross-functionalexpectations be better aligned?

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Lets start with the basics

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Strategic product line planning

New product development

Product life cycle management

Annual marketing planning

Advertising & promotions

Sales support

Product support

Upstream planning

(strategic)

Downstream planning

(tactical)

Product planner

Tactical products manager

Product marketing manager

Product manager

Product Manager Continuum

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How do product managers work?

Product managers must work through otherpeople in a matrix structure (over a traditionalstructure).

The various functions become resources.

The product manager becomes

the central knowledge repository.

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What are traditional structures?

Functional Divisional

CEO

Div. A

MFG Mktg

Div. B

MFG

Div. C

Mktg

CEO

HR Mktg Mfg

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Matrix structures

Transparent

Heavyweight

Autonomous

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ExternalEnvironment

Culture

Structural Goodness-of-Fit

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Where PM fits varied views

The Cranky Product Manager - Why it doesnt matter where ProductManagement lives in the organization

Marty Cagan, Silicon Valley Product Management Group Where ShouldProduct Management Live?

Rich Mirnov, Enthiosys Where Should PM Report?

Steve Johnson, Pragmatic Marketing The Strategic Role of ProductManagement

http://crankypm.com/2008/12/where-product-manager-resides-organization/http://crankypm.com/2008/12/where-product-manager-resides-organization/http://crankypm.com/2008/12/where-product-manager-resides-organization/http://crankypm.com/2008/12/where-product-manager-resides-organization/http://www.svpg.com/blog/files/where_should_pm_live.htmlhttp://www.svpg.com/blog/files/where_should_pm_live.htmlhttp://www.svpg.com/blog/files/where_should_pm_live.htmlhttp://www.svpg.com/blog/files/where_should_pm_live.htmlhttp://www.svpg.com/blog/files/where_should_pm_live.htmlhttp://www.enthiosys.com/insights-tools/where-should-pm-report/http://www.enthiosys.com/insights-tools/where-should-pm-report/http://www.enthiosys.com/insights-tools/where-should-pm-report/http://www.pragmaticmarketing.com/strategic-role-of-product-managementhttp://www.pragmaticmarketing.com/strategic-role-of-product-managementhttp://www.pragmaticmarketing.com/strategic-role-of-product-managementhttp://www.pragmaticmarketing.com/strategic-role-of-product-managementhttp://www.pragmaticmarketing.com/strategic-role-of-product-managementhttp://www.pragmaticmarketing.com/strategic-role-of-product-managementhttp://www.pragmaticmarketing.com/strategic-role-of-product-managementhttp://www.pragmaticmarketing.com/strategic-role-of-product-managementhttp://www.pragmaticmarketing.com/strategic-role-of-product-managementhttp://www.enthiosys.com/insights-tools/where-should-pm-report/http://www.enthiosys.com/insights-tools/where-should-pm-report/http://www.enthiosys.com/insights-tools/where-should-pm-report/http://www.enthiosys.com/insights-tools/where-should-pm-report/http://www.svpg.com/blog/files/where_should_pm_live.htmlhttp://www.svpg.com/blog/files/where_should_pm_live.htmlhttp://www.svpg.com/blog/files/where_should_pm_live.htmlhttp://www.svpg.com/blog/files/where_should_pm_live.htmlhttp://www.svpg.com/blog/files/where_should_pm_live.htmlhttp://www.svpg.com/blog/files/where_should_pm_live.htmlhttp://www.svpg.com/blog/files/where_should_pm_live.htmlhttp://crankypm.com/2008/12/where-product-manager-resides-organization/http://crankypm.com/2008/12/where-product-manager-resides-organization/http://crankypm.com/2008/12/where-product-manager-resides-organization/http://crankypm.com/2008/12/where-product-manager-resides-organization/http://crankypm.com/2008/12/where-product-manager-resides-organization/http://crankypm.com/2008/12/where-product-manager-resides-organization/http://crankypm.com/2008/12/where-product-manager-resides-organization/http://crankypm.com/2008/12/where-product-manager-resides-organization/

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Potential influence roadblocksChannels

General

public

Top

management

Sales

Purchasing

Legal

Customers Marketing

Research

Engineering

Customer

Service

Mfg

Finance

VOC

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Need to break through the walls

Salespeople feel they

own the customerrelationship

Techies feel

they are the

guardians of

innovationMarketers feel they

have objective

information

Production

wants to

minimizechange-

orders

Projectleaders want

to meet

critical

deadlines

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Product Management

Functional PositionsCustomer

Channel Positions

What are the mutual

expectations?

12

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Key points

To increase the success quotient for productmanagement:

Clarify the balance of upstream and downstream

responsibilities expected of the position.

Assess the dimensions that affect the structural

goodness-of-fit.

Gather and share mutual cross-functional expectations.