In the dynamic world of product creation, success hinges on two critical components: Product Management and Product Development. These elements, while distinct in their functions, are deeply interconnected and essential for delivering products that truly meet market needs. In this post, we’ll explore the roles of these two components, how they complement each other, and the importance of their integration in the agile process.
When building products, it’s crucial to recognize that Product Management and Product Development are the twin pillars of success.
Product Management focuses on what to build.
Product Development addresses how to build it.
Though these functions are different, they need to work in harmony to ensure the product’s success. Product Management sets the strategic direction and goals, while Product Development brings these goals to life through actual delivery.
It’s a common misconception that Product Management and Product Development operate in isolation, with one merely handing over tasks to the other. In reality, they are part of an integrated story. There’s a continuous interaction and a necessary overlap between these two domains. A useful analogy here is the concept of Evidence-Based Management (EBM), which can help us understand how these functions not only interact but also complement each other.
At the core of Product Management is the goal of creating market value. This is achieved by focusing on two main aspects:
Current Value: This represents the features and capabilities that exist in the product right now. These need to be maintained, removed, or enhanced based on their current performance and relevance.
Unrealized Value: This is where Product Management often needs more focus. It includes the potential features and capabilities that the product could have but doesn’t yet. This is about identifying new markets, new users, and new opportunities to grow the product’s reach and value.
To maintain and grow market value, Product Management must balance between supporting existing users and aggressively pursuing new opportunities. A decline in user engagement is inevitable if the product remains stagnant, even if incremental updates are made.
A great way to think about this is by comparing it to Netflix’s approach to content creation. As a series progresses, viewership naturally declines over time, even if new seasons are introduced. The key question is whether the investment in new content can maintain a sufficiently high level of interest to justify further development.
Similarly, in Product Management, while it’s important to support and maintain the current investment, it’s equally crucial to push forward into new markets and capture new users. This proactive approach is what drives value creation.
Ultimately, Product Management is about leading the charge. It’s about defining where the product is headed, what the strategic goals are, and how to achieve them. This leadership in direction and strategy is what ensures that the product remains relevant and valuable in a constantly changing market landscape.
While Product Management sets the vision, Product Development is the engine that brings it to life. It is the organization’s capability to deliver on the promises made by Product Management. This process is broken down into two key areas:
Innovation is measured by how much time and resources can be allocated to developing new features and functionalities versus maintaining and supporting existing ones.
It’s about ensuring that there is a balance between creating new value and sustaining current value.
This measures how quickly a product can move from concept to market-ready.
It’s crucial for staying competitive and ensuring that the innovations made are delivered to users in a timely manner.
For Product Development to be effective, there must be a strong emphasis on product quality and engineering excellence. Agile Product Development is about building high-quality, usable, and working products that meet the needs of the market. This requires a commitment to continuous improvement and the ability to respond quickly to changes in the market or in user feedback.
In an agile environment, Product Management leads with a focus on strategy, vision, and validation:
Strategy: Determining the long-term goals and the direction in which the product should move.
Vision: Setting a clear and compelling picture of what the product will achieve.
Validation: Ensuring that the product is on the right track by continuously gathering feedback and making necessary adjustments.
To realize the vision set by Product Management, there must be a strong collaboration with Product Development. This collaboration allows for the continuous collection of data, feedback, and telemetry, which in turn informs Product Management whether the product is moving in the right direction.
Feedback Loops: Agile Product Development enables the creation of quick feedback loops, ensuring that products are tested and validated in real-time. This helps in making informed decisions about whether to continue on the current path, pivot, or stop altogether.
Building for Value: The ultimate goal is to build products that deliver maximum value to users. By focusing on both the current and unrealized value, Product Development supports the vision of Product Management, ensuring that every product increment is valuable and aligned with market needs.
The interplay between Product Management and Product Development creates a continuous cycle of improvement:
Experimentation: Running small experiments to test new ideas and features.
Delivery: Rapidly delivering these experiments to users to gather feedback.
Adjustment: Using the feedback to make adjustments and improvements.
This cycle not only drives the product forward but also ensures that it remains relevant and valuable in a rapidly changing market.
The success of a product lies in the seamless integration of Product Management and Product Development. By understanding and leveraging the strengths of both, organizations can create products that not only meet the current market demands but also anticipate and fulfill future needs.
To recap:
Product Management defines what to build by focusing on market value, strategy, and vision.
Product Development delivers how to build it by focusing on innovation, time to market, and engineering excellence.
Together, they form a continuous cycle of improvement that drives product success.
In your own product journey, remember that the synergy between these two functions is key. By ensuring that they work together harmoniously, you can maximize the value your product delivers and ensure its long-term success.
🚀 Key Takeaways:
Align your product strategy with market value and future needs.
Prioritize continuous improvement and quick feedback loops.
Foster strong collaboration between Product Management and Product Development.
By adopting this integrated approach, you’ll be well on your way to building products that truly make an impact.
If you've made it this far, it's worth connecting with our principal consultant and coach, Martin Hinshelwood, for a 30-minute 'ask me anything' call.
We partner with businesses across diverse industries, including finance, insurance, healthcare, pharmaceuticals, technology, engineering, transportation, hospitality, entertainment, legal, government, and military sectors.
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