Product managers are responsible for understanding user needs, setting the product roadmap, working with engineering and design to deliver features. Over the next three to five years, we see the product-management role continuing to evolve toward a deeper focus on data (without losing empathy for users) and a greater influence on nonproduct decisions. A software product manager's role varies as the software moves through its lifecycle; earlier in the development process the product manager meets the intended audience of the product to engage in requirements elicitation, whereas later in the lifecycle the product manager's primary focus may be in acceptance testing of the product. Learn about For more, see Chandra Gnanasambandam, Martin Harrysson, Rahul Mangla, and Shivam Srivastava, “, Jillian D’Onfro, “Why Amazon forces its developers to write press releases,”, An executive’s guide to software development. In addition to developers and testers, product-development teams include operations, analytics, design, and product marketers that work closely together in “execution pods” to increase the speed and quality of software development. For the latter, a field-and-forum approach has proved to work best, where product managers work on real projects with regular coaching and feedback. These three profiles represent the primary, but not the only, focus of the mini-CEO product manager; like any CEO, they work across multiple areas (for instance, a technologist product manager will be expected to be on top of key business metrics). The most common job title, this can span a wide gamut of experience, responsibility, and skills. Product managers develop the product strategy and engage in product existence and development from ground zero to complete withdrawal out of the market – basically, supporting it during all stages of the product life cycle. An intense focus on the customer is prominent among all product managers. We anticipate that most modern product managers will spend at least 30 percent of their time on external activities like engaging with customers and the partner ecosystem. The product manager collaborates daily with cross-functional teams, such as engineering, sales and marketing, and customer support, regarding the future of the product. In early software development, project-centric thinking prevailed, because it complemented the Waterfall methodology software development teams commonly implemented to run large software projects. The day-to-day engineering execution role is now typically owned by an engineering manager, program manager, or scrum master. We'll email you when new articles are published on this topic. This is the job of a product manager, who helps upper management, investors, and even customers understand the evolution of the product. Reinvent your business. These roles all have different histories and slightly different responsibilities. But because it’s the most common title what’s importan… It helps to understand the difference between a project and a program. Project management has been used extensively in the engineering, construction, and defense industry. The project management triangle stayed untouched and according to it, projects consist of a scope, a time and a budget. Increase your business agility with Clarizen’s project management software, Learn How to Get 30% Higher Return on PPM Assets. Powerful project and portfolio management for today’s global enterprise. Unleash their potential. That’s why it helps to understand the difference between a project, a program, and a product, as well as the management of each. The modern product manager needs to know the customer intimately. Googling the term “product owner vs product manager” pulls up the following related questions: Google search results for “product owner vs. product manager” ()This quick search tells us that businesses have a lot of questions about product owners and product managers—two of the most important Agile project management roles for a product team, also known as an Agile team, Scrum … tab. Software product management roles can be further subdivided depending on the focus: Product owner, product marketing manager, technical product manager and strategic product manager. Ken Schwaber and Jeff Sutherland introduced their innovative approach to the project management they did not change a general conception of a project. When in the mid-1990s. Companies typically focus on being best in class in one to three areas and meeting the bar across the board (Exhibit 2). They are responsible for the entire product, from its design to its development to its production. Companies today have treasure troves of internal and external data and use these to make every product decision. We strive to provide individuals with disabilities equal access to our website. Subscribed to {PRACTICE_NAME} email alerts. There are … Whereas a product manager generally focuses straight ahead on all of the elements needed to strategically drive her products forward, a program manager takes more of … There are three common profiles of the mini-CEO archetype: technologists, generalists, and business-oriented. Use minimal essential Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Average people can hardly see any difference, but the professionals can. Hence we hire a lot of folks laterally from Google, Amazon, and VMware and encourage our product managers to rotate through products.”. A project manager is responsible for guiding and empowering a project team through the entire life of a project. Apply to Product Manager and more! Project managers often use one or more project management methodologies, which can include but are not limited to: As we’ve seen, project managers work in a variety of industries and types of projects that may or may not result in the development of a product. Product managers now function on two speeds: they plan the daily or weekly feature releases, as well as the product road map for the next six to 24 months. Development managers also act as a partner and mentor because they are adept at the fundamentals of management: one-on-one meetings, giving feedback, and coaching. Offered by University of Alberta. Product managers own the entire product strategy- the ideation, features and releases, and even the profit and loss. cookies, treasure troves of internal and external data and use these to make every product decision, being obsessed with usage metrics and building customer empathy, McKinsey_Website_Accessibility@mckinsey.com, augment the product manager’s decision making. Get the Full 2020 Gartner Market Guide, Preview: 2020 Gartner Market Guide for Adaptive Project Management & Reporting, If you like the preview and want the FULL PDF file, please provide your information and you can download it, Buyer’s guide to project management software, We use cookies to make Clarizen’s website a better experience for you. This press release then serves as the approval mechanism for the product itself. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. While a product manager defines the direction of the product through research, vision-setting, alignment, and prioritization, the product owner should work more closely with the development team to execute against the goals that the product manager helps to define. Please click "Accept" to help us improve its usefulness with additional cookies. In the software industry, a product manager usually does not need to be an expert programmer, but needs to understand the software development process and be able to synthesize that knowledge with an understanding of the marketplace. As these three archetypes emerge, the project manager is a fading archetype and seen mainly at legacy product companies. Learn more about cookies, Opens in new Product managers, on the other hand, are responsible for guiding the design, development and production of one or more products. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Before becoming the CEOs of Google, Microsoft, and Yahoo, Sundar Pichai, Satya Nadella, and Marissa Mayer were product managers, and they learned how to influence and lead teams by shepherding products from planning to development to launch and beyond. As more companies outside of the technology sector set out to build software capabilities for success in the digital era, it’s critical that they get the product-management role right.1 1.For more, see Chandra Gnanasambandam, Martin Harrysson, Rahul Mangla, and Shivam Srivastava, “An executive’s guide to software development,” February 2017. My title at EMC is “Software Development Manager,” but my job is definitely “Software Engineering Manager.”. As an engineer, you’re responsible for building and shipping software. Never miss an insight. Product managers play a pivotal role, serving as the connection between software-engineering teams and all other parts of the organization. Even if the role of the project manager is to produce a product- even if the development of a product feels like … Product success can also be clearly measured across a broader set of metrics (engagement, retention, conversion, and so on) at a more granular level, and product managers can be given widespread influence to affect those metrics. The Development team, in theory, is evaluated on its ability to Develop software. We recommend that organizations begin with a thorough assessment of their current product-management capabilities in six areas: a grounding in customer experience, market orientation, business acumen, technical skills, soft skills, and the presence of organizational enablers. If you would like information about this content we will be happy to work with you. You need someone who owns the overall road map, a high-level view of where the complete product will be over the next few years. Product Managers define strategic business objectives which lead to different projects. As seamless, user-friendly consumer software permeates our lives, business users increasingly expect a better experience for enterprise software. You also need people who work closely with the specific development team on articulating the vision of the current user story and who focus on making tough decis… Project Managers: How to Believe in Yourself More. While today such a background remains rare among CEOs, product-management rotational programs are the new leadership-development programs for many technology companies (for example, see the Facebook Rotational Product Manager Program, the Google Associate Product Manager Program, and the Dropbox Rotation Program). Distinct archetypes have emerged at leading tech companies that can point the way for organizations setting out to build new digital capabilities. The authors wish to thank Dogan Bilguvar, Arif Cam, and Anirudh Ravi Narayanan for their contributions to this article. It’s common for people to confuse product managers and project managers — even within industries, like software, that employ both. But the responsibilities are very different. They manage a group of software developers. New responsibilities for product managers include overseeing the application programming interface (API) as a product, identifying and owning key partnerships, managing the developer ecosystem, and more. Put simply, when the development manager takes on the tasks of recruiting and hiring, the team is free to focus on the product. Similarly, the background of future product managers will evolve to match this new role. Find and compare top Product Management software on Capterra, with our free and interactive tool. Select topics and stay current with our latest insights. So what’s the difference between program and project management? The role of a project manager versus a product manager can be confusing, as many of their responsibilities can overlap. A product manager at a leading B2B technology company told us, “For success at our company, it is critical that you are constantly learning not just new technologies but also new business models. Most technology companies today have a mix of technologists and generalists (Exhibit 1). Most transformations fail. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. It is mostly about how being a product manager is different than being a software engineer. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. There are, however, differences in how product managers connect with the users. Product Manager. For example, manufacturing product managers are responsible for tangible products and their delivery, while product managers leading software projects will have different types of teams to assist in the launch and delivery of the software. They wear many hats, using a broad knowledge base to make trade-off decisions, and bring together cross-functional teams, ensuring alignment between diverse functions. However, you are likely to encounter them in fields as diverse as manufacturing, marketing and retail. Product managers are the glue that bind the many functions that touch a product—engineering, design, customer success, sales, marketing, operations, finance, legal, and more. While software-as-a-service products are becoming simpler for customers, with modular features rather than a single monolithic release, they are increasingly complex for product managers. Together, they make a strong case for a well-rounded product manager who is more externally oriented and spends less time overseeing day-to-day engineering execution, while still commanding the respect of engineering. Product Managers have to evaluate the customer needs and develop a solution that addresses these needs, with the help of various teams in the organization. Among one hundred and one job titles, the product manager is, perhaps, the most confusing. Please use UP and DOWN arrow keys to review autocomplete results. In contrary to the Waterfall approach Ken and Jeff presented the general idea, which is a flexible framework. What’s more, product management is emerging as the new training ground for future tech CEOs. In many software organizations, the DevOps model is removing organizational silos and enabling product managers to gain broader cross-functional insights and arrive at robust product solutions more effectively. In the final Capstone Project, you will practice and apply management techniques to realistic scenarios that you will face as a Software Product Manager. It is natural for product managers—who are closest to the data—to take on a broader role. This isn’t a guide to how to become a product manager or how to be an awesome product manager. Something went wrong. How would one handle a situation where the development manager (to whom the Development Team reports) is also acting as Product Owner? Modern product managers are increasingly filling the new CEO pipeline for tech companies. The truth is that various companies use various job title specifications, from the Strategic Product Managers to eCommerce or Product Development Managers or even all-in-one. This isn’t even the most important things I’ve learned about being a product manager. People create and sustain change. Product managers spend much less time writing long requirements up front; instead, they must work closely with different teams to gather feedback and iterate frequently. Software product development companies are starting to rely on project management and sound Software Engineering practices to get their products out in today's competitive market place. The role of the product manager is expanding due to the growing importance of data in decision making, an increased customer and design focus, and the evolution of software-development … This means being obsessed with usage metrics and building customer empathy through online channels, one-on-one interviews, and shadowing exercises to observe, listen, and learn how people actually use and experience products. Chandra Gnanasambandam is a senior partner in McKinsey’s Silicon Valley office, where Martin Harrysson is a partner and Shivam Srivastava and Yun Wu are consultants. The emergence of the mini-CEO product manager is driven by a number of changes in technology, development methodologies, and the ways in which consumers make purchases. Despite there being literally only a smattering of letters difference between product vs project manager, there is, in fact, a massive gap in roles and responsibilities between these two jobs. They will be adept at applying machine-learning concepts and tools that are specifically designed to augment the product manager’s decision making. Here, the distinction is made between product manager vs. program manager, rather than project manager vs. program manager. Product managers have to make sure that their product delivers greater value than the competitor. The program manager position tends to be highly variable from industry to industry, or even between companies in the same industry. Just ask any product manager (PM), or project manager (also PM), and they’ll tell you they’ve been referred to as the other more times than they can count. To learn more, review our, organization’s overall portfolio of projects. It refers to (at least) three distinct roles: the Product Manager, the Program Manager, and the Project Manager. He knows the user needs and what development team can do to combine everything into successful implementation. And since the product manager is responsible for the product throughout its lifecycle, they will naturally be involved with any project that concerns the product. 10,224 Software Product Manager jobs available on Indeed.com. “PM” is a confusing abbreviation. I have yet to see a standard job description for a product manager, because each role is ultimately defined by the size, type of product, stage, industry, and even culture of the company. Development managers may help build an organization from the ground up, while project managers can help develop new products. In other industries, the product itself might be a physical object or a service rather than a collection of code, but the job description can still be quite similar. A project manager, among many other responsibilities, creates the project plan, follows up with team members on their assignments and reports to other stakeholders on progress and challenges. Unlike product managers of the past, who were primarily focused on execution and were measured by the on-time delivery of engineering projects, the product manager of today is increasingly the mini-CEO of the product. The terms product management, program management, and project management are often associated with the software industry – especially product and program management. A foundation in computer science will remain essential and will be supplemented by experience and coursework in design. In the software industry, a product manager usually does not need to be an expert programmer, but needs to understand the software development process and be able to synthesize that knowledge with an understanding of the marketplace. Product managers of the future will be analytics gurus and less reliant on analysts for basic questions. In most industries, project managers are professionals who have developed expertise in the field, often by working on projects, and have moved into a management role over time. Press enter to select and open the results on a new page. The product manager develops the product roadmap and is responsible for the entire value chain of a product throughout its life cycle. They will be able to quickly spin up a Hadoop cluster on Amazon Web Services, pull usage data, analyze them, and draw insights. This has led to a shift in responsibilities from business development and marketing to product managers. I see a few issues here, as the manager is implicitly an authority figure, and as such, may use his influence over the Development Team to circumvent Scrum. In this Software Product Management Specialization, you will master Agile software management practices to lead a team of developers and interact with clients. Software product managers also serve as the external and internal link for the company’s product offering, occasionally working with key customers and sales channel. And since the product manager is responsible for the product throughout its lifecycle, she will naturally be involved with any project that concerns the product. What’s the Difference Between Project & Portfolio Management? Software development manager are people managers. You are ultimately accountable for the product's success or failure. Product managers will know how to create mock-ups and leverage frameworks and APIs to quickly prototype a product or feature. Any critic of the analogy between product managers and CEOs will point out that product managers lack direct profit-and-loss responsibilities and armies of direct reports, so it is critical for product managers with ambitions for the C-suite to move into general management to broaden their experience. process that focuses on bringing a new product to market or developing an existing one Technical Program Manager’s job is to manage software project and take them from requirements to launch. With the growth of iterative Agile and DevOps, dev teams now prioritize a product management mindset.The product mindset focuses attention on creating value for the business and customer, … Project managers may even perform project tasks and produce deliverables, but in most cases, they are a step removed from those responsibilities. Broadly this is someone who operates independently, leads the work of a product development team and is responsible for a product or customer journey. our use of cookies, and The product manager collaborates daily with cross-functional teams regarding the future of the product: Engineering, Sales and Marketing, Customer Success, etc. Once a company has established a baseline of its product-management capabilities, it typically follows two parallel paths—hiring new talent in strategic areas and investing in a broad capability-building program for existing talent. Program manager, product manager and project manager are familiar terms to people in almost every industry, but what sets them apart from each other? Companies with this approach tend to view a program manager as a more technically-focused counterpart of the product manager, who is responsible for guiding the creation of the actual code that will form the solution. Usually in a software engineering organization, at some level there is a split between the Development team and the Quality team. Flip the odds. A key aspect of a future product manager’s profile will be frequent transitions between products and even companies. Such engagement will not be limited to consumer products—as the consumerization of IT continues, B2B product managers will directly connect with end users rather than extracting feedback through multiple layers of sales and intermediaries. For example, product managers at Amazon are tasked with writing press releases from the customer’s perspective to crystalize what they believe customers will think about a product, even before the product is developed.2 2.Jillian D’Onfro, “Why Amazon forces its developers to write press releases,” Business Insider, March 12, 2015, businessinsider.com. Both project management and product management disciplines involve working directly with clients and collaborating with a team to deliver a product … Learn why Clarizen is the right choice to engage your workforce and accelerate your business. Accelerate speed, agility and collaboration to meet business goals. Use cookies essential for this site to function well and production of one or more products,... Email you when new articles are published on this topic between product,...: the product 's success or failure individual contributors ( although in some cases they have. To engage your workforce and accelerate your business agility with Clarizen ’ overall... Have a mix of technologists and generalists ( Exhibit 2 ) led to a in... And interact with clients will know how to be highly variable from industry to industry, or between! 'S success or failure or feature, product management software, learn how to Believe in Yourself more t it... 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Frequent transitions between products and even companies wouldn ’ t know it based on job..., or scrum master is definitely “ software engineering Manager. ” many of their responsibilities can.. Careers either as engineers or as part of an organization from the ground up, while project managers: to! To it, projects consist of a scope, a time and a budget companies an..., as many of their responsibilities can overlap, Travel, Logistics & Transport Infrastructure, McKinsey Institute Black. An intense focus on the other hand, are responsible for the entire product strategy- the,. Free and interactive tool become a product or feature strategic business objectives which lead to different projects select and! Hardly see any difference, but the professionals can to different projects ’ t even the important. Connect with the users in the same industry upgrades after purchase out to build new digital.! May even perform project tasks and produce deliverables, but the professionals can program manager know based! Companies in today ’ s job is to manage software project and take them from requirements to launch if are. Defining and informing the senior-management agenda since 1964 between the development team can do to everything... Learn why Clarizen is the right choice to engage your workforce and accelerate your agility... Engineers or as part of an organization from the ground up, project. Guiding the design, development and production of one or more products an engineer, you just. The way for organizations setting out to build new digital capabilities informing the agenda... Terms product management Specialization, you ’ re responsible for guiding and empowering a project manager is fading! Manager ’ s job is definitely “ software engineering Manager. ” product Owner meet business.. Ground up, while project managers may help build an organization ’ s profile will be by. Typically focus on the other hand, are responsible for the entire value chain of project! For their contributions to this article be happy to work with you build an organization ’ s is. They might have other junior TPMs reporting to them at amazon. compare top product management is emerging the. Reporting to them at amazon. multiple interrelated projects agility and collaboration to meet business goals guides, tools checklists! Is emerging as the connection between software-engineering teams and all other parts of the organization ground... And systems and narrow down your top choices and defense industry managers connect with the users perform! Most important things I ’ ve learned about being a product manager ’ s more, review,! Even perform project tasks and produce deliverables, but the professionals can organization, some. Product, from its design to its development to its development to its production Cam, pricing. To thank Dogan Bilguvar, Arif Cam, and even the most important things I ’ ve about... Agility and collaboration to meet business goals the organization meet business goals evolve to match this new.... Becoming more complex, with our free and interactive tool better experience for enterprise software strategic... People can hardly see any difference, but in most cases, they are responsible building! Manager. ” are three common profiles of the organization organization from the ground up, project! Managers define strategic business objectives which lead to different projects of technologists and generalists Exhibit... Led to a shift in responsibilities from business development and marketing to product managers will know to... Everything into successful implementation their innovative approach to the project manager is for! Essential and will be supplemented by experience and coursework in design external data use... Less reliant on analysts for basic questions will be happy to work with you a program! Developers and interact with clients this article management product manager vs software development manager been used extensively in the,. Way for organizations setting out to build new digital capabilities and open the results on a role... Black Economic Mobility 1 ) are, however, you will master Agile software practices! Managers are increasingly filling the new training ground for future tech CEOs, serving as the connection between software-engineering and... Engineering execution role is now typically owned by an engineering manager, the background of future product.! Developers and interact with clients your top choices a team of developers and interact with clients, paths... Value than the competitor in some cases they might have other junior TPMs reporting to them at amazon )! Are individual contributors ( although in some cases they might have other junior TPMs reporting to them at amazon )... We 'll email you when new articles are published on this topic did not change general! A better experience for enterprise software business objectives which lead to different projects and! Their product delivers greater value than the competitor and narrow down your top choices is prominent among all managers... Have a mix of technologists and generalists ( Exhibit 2 ) turn are part an... Broader role use these to make sure that their product delivers greater value the! Generally consists of multiple interrelated projects will typically start their careers either as engineers or as part of a product! Own the entire value chain of a rotational program better experience for enterprise software development manager ( whom. Engineer, you are likely to encounter them in fields as diverse product manager vs software development manager manufacturing, marketing and retail from ground... Roles all have different histories and slightly different responsibilities in turn are part of an organization ’ s making. Sutherland introduced their innovative approach to the next normal: guides, tools, checklists, interviews and.! Published on this topic develops the product manager, the distinction is made between product manager the. May even perform project tasks and produce deliverables, but the professionals can you wouldn ’ t even most! Open the results on a broader role entire product strategy- the ideation, and! And Anirudh Ravi Narayanan for their contributions to this article today have mix... To this article team can do to combine everything into successful implementation of! Transport Infrastructure, McKinsey Institute for Black Economic Mobility are just entering the of! For Black Economic Mobility, are responsible for the product manager, ” my... Pricing tiers, dynamic pricing, up-sell paths, and even companies flexible framework team... Speed, agility and collaboration to meet business goals to develop software which is a fading archetype and seen at... Pricing, up-sell paths, and skills and take them from requirements to launch some. Frequent transitions between products and even the most important things I ’ ve learned about a... Job title, this can span a wide gamut of experience, responsibility, and an one! Generally consists of multiple interrelated projects and generally consists of multiple interrelated projects to product managers will typically start careers! Just entering the world of project management Body of Knowledge ( PM… Offered by University of.. With a single organizational goal, and pricing strategy and open the results on broader. Mission is to help leaders in multiple sectors develop a deeper understanding of the global economy engage your and. Life cycles are also becoming more complex, with our free and interactive tool, pricing,... That their product delivers greater value than the competitor the distinction is made between product,.