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Tag: Maximal Product Management

  • Product Lifecycle Management: Strategic for Growth

    Are You Using Product Lifecycle Management to Achieve Your Growth Goals?

    For many organizations, the answer is No. When it comes to Product Lifecycle Management, organizations and their Product Managers tend to place substantial emphasis on the early stage of the product lifecycle, (Introduction) and not nearly enough time on products in the advanced stages (Growth, Maturity, and Decline).

    Regardless of the reasons, most Industrial, B2B companies are making a miscalculation by failing to execute comprehensive product lifecycle management. They miss out on the impact a thorough analysis of the existing product mix can have on the company’s ability to drive growth.

    The Importance of Product Lifecycle Management for Advanced Stage Products

    Industrial companies deal with three important realities: (1) Revenue and profits from the existing product mix represent as much as 75% or more of the entire product portfolio! (2) Industrial products tend to have longer product lifecycles. (3) New product development takes longer and is costlier to implement.

    While new product development is essential, company growth is still very dependent on the continued viability of existing products as the foundation for long term growth. In today’s business environment, where revenue and profits of existing products are under increasing competitive pressure and risk, additional time and effort, should be spent proactively managing existing products.

    Comprehensive Product Lifecycle Management Increases Your Strategy Options

    When Product Lifecycle Management is primarily focused or heavily driven by Introductory stage products (New Product Development) only 2 of four strategy options (Product Development and Diversification) are in play.

    When focus to existing products in the Growth, Maturity, and Decline stages of the lifecycle is added, Product Managers put the other 2 strategy options (Market Penetration and Market Development) in play as well.

    Optimize Product Lifecycle Management Maximize Growth

    New product introduction is essential to the vitality of a product line and the long-term health and profitability of a company, but it comes with high cost and risk. It also only addresses 25% of the product lifecycle, and 50% of your strategy options.

    Comprehensive Product Lifecycle Management, allows organizations and their product managers, to balance risk and cost more effectively. Product Managers will have more strategy options to accommodate short- and long-term needs. Ultimately, Product Managers will optimize their product portfolio, target products to markets more effectively,  maximize financial results, and drive growth.

    Greg DiCillo, president of Maximal Product Management and author of Dominate Your Space: Unleashing the Power of Your Product Managers, shares his research insights with companies that want practical steps to establish a culture of high-performance product portfolio management.

    Simplify your Product Management with Maximal Strategist , a comprehensive tool designed for a complex role.

     

  • Four Capabilities Product Management Should Possess

    Four Essential Product Management Capabilities

    Product Management in Industrial, B2B organizations needs to think strategically and have a proactive vision and market orientation to go with the ability to manage a business. Unfortunately, organizations often have Product Managers who think more tactically; are reactive, product-centric and prone to managing projects and programs rather than products.

    So why does this gap exist?

    One reason is because Product Management is more complex than most organizations appreciate. Industrial Product Management requires individuals in the role to be entrepreneurial, market focused, and strategic, while also being knowledgeable about their products and applications.

    Often, individuals in these roles meet the product and application knowledge requirements but lack other essential capabilities necessary to perform the role effectively.

    The 4 essential Product Manager capabilities include: business management, planning, marketing, and strategy.

    Business Acumen

    The product manager role should include managing all aspects related to the product line as if it was his or her own business. As business “owners,” product managers must be adept at developing product or brand goals that are realistic and aligned with corporate objectives. Product Managers should be proficient in measuring and monitoring product line revenue and profit performance. They should also be capable in their understanding of product line costs such as product development and maintenance, manufacturing, inventory, and associated sales and marketing costs.

    Planning Skills

    Product Managers must be skillful planners and portfolio managers. They should be expert product lifecycle managers capable of identifying the best ways to optimize the product line to maximize results. Product Managers must be balanced between introducing new product and service requirements and managing existing and mature products. They need to proactively define and execute product end of life activities. Product planning must include short-term to meet existing market needs but must also contain a long-term element to anticipate or uncover changes in requirements, usage, and applications over time.

    Marketing Aptitude

    Product managers should be the resident experts on their market(s). The product manager role requires depth of knowledge beyond understanding market size, share, and growth rates. They should have an intimate knowledge of market segments and the needs, wants, or unmet needs of the customers in each segment. Product Managers must be proficient when assessing the viability of adjacent and emerging markets and competent when evaluating the market trends that impact the viability of their product offerings. Highly effective Product Managers continuously scan the landscape to identify opportunities to differentiate and maximize value.

    Strategic Mindset

    Successful product managers should have an aptitude for developing comprehensive strategies that consider all aspects of the marketing mix (product, price, place, and promotion) for their products and product lines. They must be able to differentiate their product offerings in their target markets. They must be able to develop and articulate sustainable competitive strategies that are based on value. They must be skillful in developing appropriate pricing and discounting strategies based on their understanding of the market segments.

    Summary

    The Product Manager role is broader than product expert and project manager. Think of your Product Managers as business owners within the business. If you want to maximize the impact product management can have on your organization, start by looking for these capabilities in your Product Manager candidates and strive to develop these skill sets in your product management organization.

    Greg DiCillo, is president of  Maximal Product Management and author of Dominate Your Space, Unleashing the Power of Your Product Managers. Maximal is a consulting and training firm specializing in Industrial,  B2B Product Management.

    If your tired of ad hoc Product Manager tools and templates, visit Maximal Strategist, and learn about a software tool for Product Managers designed specifically to help them build comprehensive product portfolio strategies.  

  • 4 Tips to Maximize Product Manager Roles

    Manage Product Managers? These 4 Tips will help you Maximize Product Managers Roles

    Because most companies long for strategic, forward-looking business leadership from their product managers, it’s crucial that managers actively support the desired behaviors.  Here are four tips Managers can implement to maximize product manager roles.

    TIP #1: DEFINE PRODUCT MANAGER ROLES AND RESPONSIBILITIES.

    Product managers must have clearly defined roles, not just a list of tactical activities. You may have a variety of product manager roles, depending on your organization and its needs. Multiple product manager roles are not uncommon, and all are extremely important. Clearly defined product manager roles and responsibilities direct product managers toward the crucial actions needed to be most effective, while eliminating wasted time spent “in the weeds” and “majoring in minor things.”

    TIP #2: ESTABLISH APPROPRIATE METRICS TO MEASURE AND MODIFY BEHAVIOR.

    You want your product managers to be strategic, market-oriented business managers, therefore, measure them using metrics that encourage this behavior. Measuring success for product manager roles solely on tactical activities will force product managers more tactical. Establish balance between strategic and tactical metrics. Since you want performance to change you must reward the behaviors you desire.

    TIP #3: DEFINE RULES OF ENGAGEMENT BETWEEN PRODUCT MANAGEMENT AND OTHER FUNCTIONS.

    Product managers are responsible for overall product success, but rely on other functional areas for the execution of product and market strategies. Clearly define the responsibilities each functional area has related to product success. Set clear expectations to avoid finger pointing and confusion. Clearly delineate how the organization and product manager roles will interface with one another. Product managers have overall responsibility for the product line, but success is accomplished when each functional area plays its role.

    TIP #4: HIRE THE RIGHT PEOPLE.

    Product managers must be generalist and specialist, but Product manager roles also require business management, strategy, leadership, and interpersonal skills. In addition, product managers must have strong product and market knowledge. Build a complete profile for each product manager roles based on skills and abilities, personal traits and characteristics, and knowledge. As you analyze each individual, fit will be more easily identified, the result, a better match to specific Product Manager roles.

    Summary

    A clear, well-understood definition and structure is crucial to effective product manager roles because product managers depend so highly on those around them. Don’t worry if you already have a fully staffed product management organization. Implement these four steps to help you re-assess and re-align your current product manager resources or assist you as scale your product management organization for growth.

    Greg DiCillo, president of Maximal Product Management (and author of Dominate Your Space: Unleashing the Power of Your Product Managers) shares his research insights with companies that want practical steps to establish a culture of high-performance product portfolio management.