Clarifying the Role ofSoftware Product Management

Rick Berzle

Founder and President

GoToMarket LLC

1© 2008 GoToMarket LLC

Agenda

• Speaker Background

• Product Management and Related Roles

• Role/Scope of PM based on company size

• Beware of too many hats.

• How to deal with too many demands?

• Summary and parting thoughts

2© 2008 GoToMarket LLC

Speaker Background

• BS Computer Science/MBA• 8 years in Software Development• 10 years in Software Product Management• 15+ years in VP-level Marketing Positions• 6 years interim CMO/VP Marketing

3© 2008 GoToMarket LLC

Discussion Topic

• Product Management is a unique discipline– Strategic– Technical– Business– Evangelistic

• Few high-level executives truly understand the role• PM’s get pulled into other roles based on need or

incompetence of existing personnel• PM need, impact and success is dependent on company size

and leadership• Managing expectations is key to a successful and rewarding

PM career

4© 2008 GoToMarket LLC

Roles & Responsibilities

Project

Management

• Organizing

• Managing

• Scheduling

• Issue mgmt

• Release mgmt

Process

Product

Management

• Requirements

• Positioning

• Packaging

• Availability

• Business Planning

Strategy

Product

Marketing

Awareness

• Positioning

• Pricing

• Promotion

• Programs

• Prospecting

Sales

Engineering

• Demos

• Problem solving

• Technology

• Pre-Sales

• Tactical

Revenue

Focus

5© 2008 GoToMarket LLC

Vendor Dynamics

•Sales leadership

•Product suites

•Revenue growth

•Brand awareness

•Integrated sales/mkting

•Technical leadership

•One Product Company

•Reference Accounts

•Sales & Sales Support

•Minimal Marketing

Start-up

$0-5M

Early-Stage

$5-20M

Mid-Stage

$20-50M

Growth

$50-100M

•Financial leadership

•Product lines

•Predictable revenues

•Brand value

•Market/Product Strategy

Mature

100+M

6© 2008 GoToMarket LLC

Marketing Dynamics

Start-up

$0-5M

Early-Stage

$5-20M

Mid-Stage

$20-50M

Growth

$50-100M

Mature

100+M

• Focus is account acquisition

• Product defined by engineering

• Marketing is describing what was built

• Product Management is non-existent

• Focus is market expansion

• Product Management/Marketing blended role

• Product strategy and roadmap fundamental

• Marketing is about awareness and value proposition

• Product and Product line strategy

• Specific marketing disciplines exist

• Product management is fundamental

• Well-defined marketing/sales boundaries

7© 2008 GoToMarket LLC

Wearing the engineering hat?

• Engineering sees Product Management as Project Management– Coordinating engineering meetings– Note taking– Issue Management– Tactical, not strategic

• PM should focus on “release management”– Whole product definition– Packaging– Licensing/Pricing– Coordination of Product Availability (service, support, sales readiness,

etc.)

8© 2008 GoToMarket LLC

Wearing the sales hat?

• Sales Engineering/Pre-sales either lacks knowledge or skill to support sales

– Product Management is tapped to fill the void

– The more PM steps in the more Sales will ask for PM assistance

– The more PM steps up the less PM they do

• PM should visit customer’s regularly

– Not to sell, but to gather usage scenarios

– Identify customer requirements and to set priorities for new product development

9© 2008 GoToMarket LLC

Product Mgmt/Marketing

• Is there a problem with a blended role?– No, but the skill sets are quite different

• Common in early and mid-stage ventures

• Requires an extraverted personality

• More tactical and creative (from a promotional perspective)

• Closer to a sales personality than engineering

• Must like trade shows, speaking in public and demos

10© 2008 GoToMarket LLC

Product Management fit

• Engineering must want customer/market insight

• Product Management must gain the respect of engineering

• Personalities and previous experiences matter a lot

• Executive management must view marketing as a discipline – a profession

• Toughest job in any company – IMHO

– Account-ability and no authority

11© 2008 GoToMarket LLC

Summary

• There is no “pure” product management role in early-stage and many mid-stage ventures

– Product Management at best is a blended function with Product Marketing

• Product expertise is valuable and in high demand

– Watch out for abuse across organization boundaries

• Establishing an agreed to job description and setting expectations can eliminate a lot of pain

12© 2008 GoToMarket LLC

Final Thoughts

• Company leadership establishes the power of marketing

• Engineering leadership determines the influence of product management

• Sales leadership hold marketing accountable for sales execution

• Marketing leadership attempts to keep everybody happy!

13© 2008 GoToMarket LLC

Thanks for your time and

interest.

14© 2008 GoToMarket LLC

rberzle@gotomarket.com

(w) 858-271-4351

www.gotomarket.com