The Existential Crisis of Product Management: Navigating Role Encroachment and Reclaiming Our Core
Product management is facing an existential crisis—critical responsibilities are slipping away, diluting the role's impact and value.
Product management, especially in tech, is in troubled waters.
Responsibilities that once defined the role are now scattered across various teams. This dilution threatens the core of what it means to be a product manager. If we want to remain relevant and effective, we must reclaim our essential duties and blend commercial acumen with technical expertise.
The Fragmentation of Responsibilities
Today’s product management landscape is fragmented. Key functions traditionally managed by PMs are now owned by different teams:
GTM Strategy: Managed by marketing and other go-to-market teams
Pricing and Packaging: Controlled by finance or strategy teams
Growth: Driven by growth teams.
Product Vision: Defined by Executives.
Product Strategy: Crafted by strategy teams with management consulting backgrounds.
Business Modeling: Owned by research and analytics.
Customer Voice: Managed by customer success teams.
Product Analytics and Operations: Managed by specialized operations teams.
Everything that was once integral to product management has been divided, leaving PMs narrowly focused on delivery and execution, stripping the role of its strategic and commercial essence.
I strongly see the need for General Managers as Product Leaders who drive business outcomes with the product. Today's PM role is ineffective.
This was however the classic PM role from before. In tech, we’ve strayed from this model. PMs must return to being commercially savvy. But if we start calling them 'GMs,' they need true GM authority, or we'll repeat the 'CEO of the product without being a CEO' problem.
The heat is on for entrepreneurial leaders, those who understand the full spectrum of bringing a product to life and ensuring its financial success. The pressure is mounting to not just manage but to own the business outcomes of our products.
The Historical Context
Product management hasn't always been the fragmented role we see today. Its origins lie in a far more integrated approach where the product manager was the lynchpin of both commercial and technical aspects of a product.
The Evolution of Product Management:
Origins: Initially, product management was a commercial function focused on business success and market outcomes. PMs were expected to have a deep understanding of market dynamics, customer needs, and business strategies. They were the bridge between the market and the engineering teams, ensuring that the product not only met technical specifications but also aligned with market demands and business objectives.
Shift to Technical Delivery: Over time, as products became more complex and technology-driven, the role of the PM began to shift towards technical delivery. PMs started focusing more on feature specifications, sprint planning, and delivery timelines, while commercial aspects were handed over to specialized teams. This shift created a void in commercial responsibilities, which were increasingly taken over by marketing, finance, and strategy teams.As the focus on technical delivery intensified, specialized roles emerged to handle various aspects of product management. These roles included data analysts, customer success managers, growth hackers, and more. Each of these roles took over a slice of the PM’s original responsibilities, further fragmenting the role and diluting its impact.
The Path Forward
To address this existential crisis, PMs need to reclaim their core responsibilities and integrate commercial acumen with their technical expertise.
A) PMs Need to Become Commercially Savvy Again:
PMs must deepen their understanding of market dynamics, financial metrics, and business strategies. This involves:
Market Analysis: PMs need to stay abreast of market trends, competitive landscape, and customer needs. They should conduct thorough market research and competitive analysis to identify opportunities and threats. Understanding market dynamics is crucial for making informed decisions about product strategy and positioning. This piece is mostly still happening in product teams.
Financial Acumen: PMs must master pricing strategies, revenue models, and cost structures. They should understand how their products generate revenue and what the key cost drivers are. This knowledge is essential for making strategic decisions about product features, pricing, and go-to-market strategies. PMs should also be able to build and analyze financial models to evaluate the business impact of different product strategies.
Strategic Thinking: Developing product strategies that align with business goals and drive growth is essential. PMs should be able to translate business objectives into product strategies and roadmaps. They should also be able to communicate these strategies effectively to stakeholders and align cross-functional teams around a common vision. Strategic thinking involves not only setting the direction for the product but also being able to pivot and adapt to changing market conditions.
B) Organizations Must Leverage PMs Effectively:
Companies need to recognize and fully utilize the capabilities of their PMs by:
Supporting Development: Investing in training to enhance PMs' commercial and strategic skills. Companies should provide PMs with opportunities for continuous learning and development. This can include training programs, workshops, and mentorship opportunities. By investing in the development of their PMs, companies can ensure that they have the skills and knowledge needed to drive product success.
Empowering PMs: Providing PMs with the authority and resources to make strategic decisions. This includes giving PMs the autonomy to prioritize features, allocate resources, and make trade-offs based on business objectives. Empowered PMs are more likely to take ownership of the product and drive it to success.
Product management is at a crossroads. To navigate this existential crisis and role encroachment in tech, PMs must reclaim their core responsibilities, embrace strategic thinking, and act as true owners of their products.