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Product Manager Primer

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0% found this document useful (0 votes)
116 views

Product Manager Primer

Uploaded by

Sachin Bansal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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The

Task of a Product Manager


1. Understand Business Goals
a. Long term goals
Long term Business Goals are typically the long term direction and a list of possible
achievements for the entire organization. They are a direct derivative of the vision and
mission of the company, which is for most cases static for the entire life of the organization.
The lifetime of these goals ranges typically 5 – 50 years, depending on the type of industry
and the lifecycle stage the business is in. For example, an internet based startup might
define only 5 year goals as long term while an FMCG company may define its goals with a 25
year target. Defining these goals is the most important job of a CEO, and they should take
heed of the entire existing ecosystem as well as the dynamics of the world environment.

Suggested Approach:
The only technique to understand this kind of goals is to have rounds of discussion with the
senior management at the very start. A product manager must remember that while there is
a scope of suggesting business goals in a small organization, large organizations typically
have already gone through a long laid out process before defining these goals.

On the other hand, a product manager can, and should, always ask the question “why”.
Chances are that the goals will not be understandable completely during first interactions.
Idea is to build on a basic understanding, and eventually align oneself to the organization.

b. Short Term Goals


Long term goals cannot be achieved in one shot, and hence the need to break them down
into various short term goals. Depending on the kind of environment and industry, the
timeline may be equally divided between these short term achievements or may be
staggered over time. The basic idea behind this is to have a clearer view of the immediate
future, crisp defined targets and measurability. Defining short term goals also helps in path
correction opportunities earlier in the business roadmap.

Suggested Approach:
Short term goals are much easier to understand. While the only way still remains the same –
rounds of discussion – the number of discussions reduces drastically. Also there is much
more scope of contributing towards constructing these goals, so a product manager should
back himself to be able to pitch in in these discussions.

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2. Analyze Market
This is where a product manager’s work really starts. Once the goals are defined and
understood, a product manager would need to ideate, create and maintain products in order to
achieve those goals.

a. Market Sizing
What is the current TAM (Total Addressable Market)?

What is the foreseeable growth on TAM?

TAM is the entire population that appears to be a potential consumer of the product
whether now or even in the distant future. This does not mean that the solution needs to
cater to this entire population. This further needs to be broken down into segments
(described below) to find out the real market size.

Suggested Approach:
Although a lot of different data sources, many times specific to the industry, might be useful
in determining the market size, there are a bunch of common tools applicable in most cases:

i. Census Reports: This is a highly useful report when it comes to creating


segments based on age, sex, education level and location. Slice and dice the
historical data to understand the how many people would be affected by your
product at a macro level. One drawback of this tool is that it only provides data
at intervals of time, and hence sometimes might require mathematical
predictions to obtain approximate answers.
ii. Regular market research reports: These reports are available on the internet
either as free or paid version. Use them to look at industry specific analysis and
get a sense of addressable market and growth rate.
iii. Organization’s own information: Typically large organizations conduct their own
research annually. Use the annual reports of your own organization, as well as
publically available information of competitors (like annual reports, interviews,
PR articles).

b. Need based segmentation


Which is the biggest problem to solve in terms of market size?

Which is the biggest problem to solve in terms of value to the customer?

Suggested Approach:
i. Surveys: Either through already available survey data, or self-designed survey,
try to find out the top three problems of a sample set. Maybe five problems if
the segment or industry is new.
ii. Customer feedback mechanism: This typically works well in case of existing
products. Also, it is easier to get sensible data from feedback in a B2B
environment, reason being the difference in loyalty towards a product at
customer end. B2B customers are typically more loyal and hence more

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invested in the success of the product. Besides, a major drawback is that this
information will not be available to a new entrant.
iii. User behavior analysis: Whether it is an internet consumer product, e-
commerce portal, or a retail shop, there is always a possibility of observing
the behavior of the customer at various stages of decision making. While on
the internet we have various tracking tools like Google Analytics, Adwords,
Trends etc, offline customer can be tracked by a physical observation. In
either case, hints to look for:
1. What did the customer come looking for
2. What did he ask for
3. What did he evaluate
4. Was the information enough for him
5. How did he go about making his decision
6. What are the factors that influenced his decision
7. What was his overall experience
8. Can something more be offered to him based on his buying
9. Why was he looking for a solution? (what is their goal)

c. Identify Gaps
What are the current ways in which these needs are being addressed?

What are the gaps/issues in current system?

What would be the costs to cover these gaps?

Suggested Approach:
While the previous analysis was a top down method of finding customer needs, this part
should use a bottom up approach.

i. Use a graphical representation: We have three type of data – Different needs


of the customer, overall demand size, current offerings available (whether by
self or competitor). Map these over together in a graphical form to identify
gaps – visibly and literally
ii. Ecosystem Analysis: Why is this gap not yet filled? Answering this question
may help a product manager understand the existing challenges (technology,
government policies etc) and hence the costs associated (time cost, financial
cost, opportunity cost).
Once the answers to above questions are available, the Product Manager should be in a very
good position to know exactly what he needs to do create as a product, based on a function of
the market size, segments, needs and gaps identified in order to achieve maximum goal value. In
its most raw form, “goal value” = “Segment Size” x “Value to customer”/”Costs to cover gaps”

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3. Define Product Goals
Now that we know which needs to address, which consumer to address, and how to address it,
the Product Manager can go ahead and define the goal of the new product or redefine the goal
of an existing product. This goal definition is simply of the format:
The product has to solve “this” need of “this” customer by “doing this”.
You got that right: It is a positioning statement.

4. Define Product
OK, now we have the goal. Do we solve the skin problem of a customer through a fairness cream
or we solve it using a talcum powder? Are we going to make a mobile app to measure heart rate
changes or do we put a counter in the new cigarette lighter that stops it from lighting?
Define. This definition is an overlap with the positioning statement above, but a little more
concrete in terms of “what needs to be created”.
Taking the cigarette lighter example above, a positioning statement might look like:

“The product will help reduce smoking, within smokers trying to quit, by providing them a
reminder buddy that tells them they have had too much.”

The product definition then might be: “Counter in the cigarette lighter that counts no. of
cigarettes lit and stops lighting.” or: “Mobile app that measures heart rate change and warns the
customer.”
Or: “A pedometer that detects vicinity of smoke and calculates negative steps taken by the
customer today.”

a. Perform Customer Analysis


What is the size of the customers that will like to use your product?

How many of these customers actually are going to use your product?

Is this number going to grow at a healthy rate?

Suggested Approach:
i. Ecosystem and value chain analysis – What are the government policies
regarding smoking, usage of lighter, usage of lighter gas, price increase in
gasoline etc. This will help in determining the actual number of people who
can be targeted among your target segment.
ii. PEST – An analysis of the Political, Economical, Social and Technological
landscape as applicable to the identified market. Are there new technologies
that will replace pedometer or lighter? In case of mobile, should IoT be
considered? What is the social acceptance of smokers who try to quit? Is it
going to become a norm? How is the global/national economics affected if a
large no. of people quit? What will happen to the tobacco industry? Being
aware of possibilities makes sure the product has both sustainability and
scalability. Being aware of challenges helps in risk mitigation at an early stage.

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iii. Surveys – Online survey, offline survey, casual vs formal survey. This is a direct
way of finding out whether a customer will use such a product. A wisely
chosen sample set with multiple rounds of surveys should be able to provide
substantially accurate data.
iv. Market reports – How many people are trying to quit? Is the sale of nicotine
gum an indicator? These reports should be used as a supplement to above
methods, or only as a wild estimate. However, it gets one started in absence
of other tools.

b. Perform Competitive Analysis


Is there another player in the market that has a similar product?

Is there another player in the market that tries to solve the same problem with a
different product?

What are the problems with the existing products?

These questions sound very similar to the gap analysis we performed earlier. The only
difference is, earlier it was at a larger level catering to the parts of a consumer problem
remaining unsolved, while now it is about analyzing the existing products and identifying
ways to make it better. In other words, look at the existing products and ask:

i. Does it actually solve the problem it set out to address?


ii. What is the scope for innovation?
iii. What could be a simpler way to solve the same problem?
iv. How can the output be increased or improved?
Going with the smoking example - while nicotine patches, e-cigs, nicotine gums all
reduce tobacco intake, they may not solve the problem of craving.

The gap analysis now says: “The problem of craving is still unsolved”.

So one can attempt reduction in craving for the same result: reduced smoking.

At the same time, another similar product uses a low volume alarm in its reminder
buddy. However, it might be a better solution to raise a loud alarm, thus embarrassing
the smoker in public and adding social pressure. Of course, this has to be validated from
the insights about our customer, taken from market analysis and customer analysis
performed earlier.

How can this be done better?

As in the previous point, use the customer analysis done earlier and decide what would
make the product more useful and usable for this customer.

Suggested Approach:
i. Identify competition: This is the most essential
ii. Be a customer: Use the trial version of the product wherever possible.
However, sometimes the workflows need to be analyzed are only available in
paid version. So buy it, but use it.
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iii. Evaluate the competitor’s product on various parameters like performance,
usability, availability, pricing, features, reliability etc. Prepare a complete
comparison chart for all the products including the non-existing features. It is
important here to make sure that benchmarks/baselines for measurement are
quantified wherever possible. This makes it much more easier to identify
whether there is scope for innovation or improvement in a particular area.

c. Perform SWOT analysis


SWOT analysis helps us decide the feasibility of a certain product based on our core
strengths, shortcomings and external environment.
For example, even if the lighter seems to be the best solution, we only have capability of
mobile apps, that too windows OS.

Finding resources for other platforms (for example outsourcing) or developing capabilities
in-house may require investment in terms of both money and time, which is not feasible at
the moment.

At the same time, the opportunity analysis might reveal that Microsoft is working on a new
Windows version which will have great features for IoT, making it possible to link a cigarette
lighter to the mobile app with ease. However, a larger sized opportunity lies on the android
platform due to the popularity of android handsets.

Based on this analysis, it gives a snapshot of current and future state of affairs, provides an
understanding of the feasibility, and helps create a strategic plan for the evolution of the
product.

Typically ask few of the following questions, once the strengths, weaknesses, opportunity
and threat are identified:

i. Which opportunity can be targeted based on existing strengths?


ii. Which weaknesses to be taken care of in order to target other opportunities?
iii. How to manage other weaknesses to protect from the external threats?
iv. Which opportunities, if not addressed, could turn into imminent threats if
used by the competitor?

Suggested Approach:
i. Porter’s forces - This is one of the most popular ways to get a good look at the
competitive landscape and analyze possible threats. At the same time, it gives
a good knowledge of our strengths and weaknesses vs the competition. The
product manager should look at the value exchange (provided or gained)
happening due to this product with various entities like direct and indirect
competition, raw material suppliers and customers.
ii. Core Competency - This is another tool to analyze strengths and weaknesses.
iii. PEST, Ecosystem analysis, Value Chain analysis - These are good tools to find
opportunities and threats by analyzing existing organizations, government
bodies etc and supply chain in this market.

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can be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical,
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5. Coordinate with stakeholders
The question to be answered here is: How can the product add value to each and every
stakeholder? This is one of the key activities of a product manager, so much so that it often
differentiates a good product manager from a bad one. Given the diversity of expectations,
difference in outlook and performance pressures, there will always be a conflict of interest
amongst the stakeholders when it comes to “what product to build” and it is highly unlikely that
all stakeholders agree to a single point of view immediately. Stakeholder management takes
rounds and rounds of negotiation and persuasion, and the product manager is seen as
negotiating both for and against every stakeholder. A product manager need not stick entirely to
his product definition, however, it will be a nightmare to accommodate each and every
requirement of other stakeholders. Besides, a well analyzed and thought out product definition
should not have to go through multiple iterations, and should definitely not change its core
proposition.

a. Identify Stakeholders
Apart from customers and users, it is important to identify the internal stakeholders.
These are typically the functions whose functional performance (and hence individual
KPIs) is directly or indirectly affected by the performance of the product.
Typically the functions affected are: Sales, Operations, Marketing, Customer Care,
Service and Technology. However, it is a good practice to think of support functions like
HR and Finance as well when considering stakeholders.

b. Describe the product


It is very important that the stakeholders completely understand the value proposition
of the product. This is one of the challenging tasks for any product managers.

c. Understand what they need


This is where the product managers need to zip it.
Consider yourself a project manager of a large software services organization. You are
sitting at the client location, trying to understand the product requirement from them,
all this while trying to determine the costs involved in delivering what is being asked for.

d. Set the right expectations


Once you have heard the stakeholders, you work with them to set out what they can
expect to achieve with the help of the product, and what is expected of them to help
the product grow by leaps and bounds.

Suggested Approach:
There is no particular method or tool for stakeholder management. The Product manager
has to make sure he is approachable, empathetic, prepared with data and open to criticism
at the same time in order to successfully handle this activity. Still, there are some skills that
a product manager should acquire in his job, to be able to handle this part successfully:

i. Business understanding - Understand all the challenges, procedures and


requirements of your business

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ii. Leadership skills - People ultimately need to believe and follow you
iii. Negotiating skills - How do you manage various trade-offs with multiple
stakeholders, and how do you derive maximum value for the customer in the
process.

6. Define Product Roadmap


Now the product manager has the entire product goal, requirements/expectations from
stakeholders, and value proposition for the customers and users. Next step is to break it down
into a list of activities that will make the product sustainable, scalable and viable.

a. Define the feature Roadmap


The purpose of this roadmap is two-fold:
i. A clear picture of the road ahead and the direction of movement.
ii. Budget considerations for the next fiscal year.
Roadmap should not just consist of a list of features. It should be a logical path towards
building the entire product, based on the specific goals needed to be achieved at
specific stages of development. For example, initial ask could be just to acquire a huge
number of users, without any specific revenue targets. The product definition exercise
has all the inputs to tell which goals need to be achieved first.
At the same time, a good roadmap would also contain provision for learning, sourcing of
material/talent etc with specific timelines and costs. Even partnership is a feature in this
context.

Suggested Approach:
The actual problem here is to prioritize the features/activities in a way that you have a
complete product at regular intervals, as well as you don’t miss out on important goals of
the business. There are many different ways in which product managers approach this kind
of problem:

i. Project management tools with inputs from technology


ii. One goal approach which works best for an established product
iii. Bottom-up approach where tech innovation is the entire focus of the product
iv. feature complete approach where the annual plan is limited to one or two
features with all possible functionalities
v. Top Down Goal Based approach where multiple goals are to be realized
While other methods have their benefits in different situations, the Top-Down approach has
the most universal coverage of scenarios/product life-cycle. Following is a suggested way to
apply this method of prioritization which we will follow and build upon during each part of
the Roadmap definition exercise:

Use an excel sheet to clearly lay out a matrix of activities and their goals/importance. While
goals can be different in different situations, some of the common aspects that affect
decision making should form part of the goals axis. Few examples of such aspects are
“Dependencies”, “Hygiene” and “Technical Debt”. Sometimes Hygiene and Technical Debt
are necessary activities and cannot be avoided. Similarly, a feature may be dependent on
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can be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical,
photocopying, recording or otherwise without the permission of Anytime Learning Pvt. Ltd.

another feature or an architectural change. These aspects need to be understood, their
importance evaluated and assigned to goals axis as per the preferences of the organization.

Once this layout is created, take the following steps:

i. Start rating each activity on basis of its contribution towards realizing the goal
vs other activities. So if an activity results in both reach and engagement, it
may be rated 9 on reach as it brings the maximum traffic, but 3 on
engagement since other activities/features will be required to keep the visitor
engaged.
ii. Assign a relative rating to each goal w.r.t. to other goals based on their
importance in the coming term.
iii. Once all ratings are assigned, a weighted average approach can be used to
determine which features are most effective in realization of goals.

b. Define Feature Goals, KPIs and targets


Each feature needs to be given goals (User acquisition, KPI (One time users, Repeat
users, Organic, Paid etc) and targets against each of the KPIs defined. Unless this is
done, the product is nothing more than a castle in the air.

Suggested Approach:
i. Now use this same matrix to rate each goal based on its achievability through
a particular activity vs other goals from the same activity. This is like defining
the main purpose of each activity and might sometimes give different results
than the previous method of rating.
ii. Based on this rating, assign 2 – 3 specific goals and targets on which this
activity needs to be measured. Keeping it realistic and then assigning stretch
targets is one of the approaches in defining KPIs and targets.

c. Define the MVP


MVP – Minimum Viable Product. The biggest fallacy of an MVP is the fallacy of timeline.
This happens due to too much concentration on the word “minimum”, and ignoring the
words “viable” and “product”. MVP does not mean the minimum you can do in a
specific period of time. It means a basic standalone, complete product without which
you will not announce yourself in the market. It needs to address at least one workflow
completely, and it needs to be usable by itself in that form. Without these, it is just a
few parts that do not make sense. If it takes 5 years to build, so be it.

Suggested Approach:
Based on the KPIs and targets, prioritized feature list and dependencies, determine the
point where the collection of features can be called a complete product. Ideally, this product
will be a direct solution to the first problem/need/gap that we decided to solve earlier. If
not, the prioritization exercise needs to be repeated.

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can be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical,
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d. Define the Go To Market Strategy
What are the channels through which this product will be promoted?
How much and for how long do you think promotions will be required?
Do you need people for this?
Last but not the least, what value proposition should be communicated to the end user?

Suggested Approach:
For each feature, define the target audience: Who could act as evangelists and who would
be followers? Can you identify early adopters? These questions lead to a well-defined GTM
strategy. Marketing function plays an important role in building this strategy. However, if
there is no separate marketing function (like in a early stage startup) it is the product
manager’s job to create an end to end GTM strategy.

e. Set Timelines
Once the MVP is set, define the timelines to get it delivered. Technology plays a vital
role here as they are the ones executing the entire plan in the end.

Suggested Approach:
Take the MVP to tech team and explain each feature at the top level. Ask them for ball park
estimate, then add time buffer. Once you have the time estimates for all activities, you can
map it in a chart to lay out the actual roadmap.

7. Describe Features
Now starts the ground level work. Detailing a feature has four parts:

a. Define user workflows:


The workflows should be detailed to a level where all use cases, positive and negative,
are covered. Think like a Test Engineer.

Suggested Approach:
i. Flowcharts – The workflows are meant for engineers. Engineers love
flowcharts.
ii. User Stories – Engineers need to know the intentions of the product. User
stories tell them exactly how the product will behave on a particular action of
the user. This will also help the testing team to create better test plans.

b. Define points of measurement:


Clicks, errors, user reactions, anything that needs to be tracked, should be well defined
as part of feature description.

Suggested Approach:
i. One way of doing this is to create a laundry list of anything that needs to be
tracked, and ask for it at every step of the workflow. The obvious drawback is

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can be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical,
photocopying, recording or otherwise without the permission of Anytime Learning Pvt. Ltd.

performance issues, too much data to cater to. Benefit is the ability to use
modular approach to tracking and hence less development time.
ii. Define tracking parameters at feature level – direct measurement of KPIs. This
will tell you whether a feature worked or not, and then you can use ad-hoc
experiments to determine improvements inside the feature to achieve more
out of it.
iii. Define tracking at every user action – This will give a detailed data of user
behavior as well as product performance. Sometimes if the feature
implementations are standard, this may be unnecessary data.

c. Create Wireframes:
This is not UI designing. This is a skeleton of the product. Depending on the kind of
product, it may require a drawing tool or a CAD-CAM software.

Suggested Approach:
There are a huge number of tools for wireframing and all require a little bit of self-learning.
However, some of the tools widely used are listed below.
i. Balsamiq – Where on page interactivity is not required to be shown.
ii. Axure – Creates HTML protoypes and can be used for visualizing interactivity
at the basic level.
iii. Excel sheets – Where the designer is expected to do all the work.
iv. MS Paint – To depict small modifications to existing designs

d. Define UX:
In many cases this is a task handled by the designers. However, it is a good practice to
get involved in basic User experience at the feature description stage. It only helps in
giving more clarity to the designer.

Suggested Approach:
The UX is best described as part of flowcharts and wireframes. While flowcharts give a step
by step description, wireframes give a more visual representation of what the user
experiences while using the product. Ultimately, the designers are required to create the
final effect.

8. Liaise with Engineering and other stakeholders for timely execution


This is the day to day activity. Work with the engineering to explain your features, designs, UX,
and what you expect the functionality to be. Take part in sprint planning and daily scrum. Keep
worrying and stay miserable about the status of development.

Suggested Approach:
From defining development processes to tracking and monitoring, various methods can be
used as follows

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can be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical,
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i. Agile development – When you have a clearly defined MVP, and user stories
can be clubbed into chunks of 2 – 3 week cycles. This method can also be used
during development of patch or sub-versions of a product.
ii. Other methodologies – Typically a long cycle of development where a single
feature or user story takes many weeks, requires a more traditional form of
development.

9. Measure Performance of features


Okay. You got it built. It’s out there in the market, and you even got some users to use it. Now is
the time to measure and critique the performance of each feature.
This is also the time to experiment.

Suggested Approach:
i. AB experiments – AB experiments is one of the most popular mechanisms.
This requires making small changes and pushing it to smaller chunks of target
audience. There are other similar experimentation techniques, which can also
be explored. Various tools are available for this method of quick
measurement. The method is typically applicable for products with a very
short release and feedback cycle. Enterprise products may have frequent
patch releases but feedback may not be quickly available.
ii. Building a feedback mechanism within the product – This works mostly where
user loyalty and engagement can be assured. This means the product should
be already above average.
iii. Analytics data – If properly set up, an analytics tool can reveal a lot of
interesting information regarding user behavior and the points at which a
feature worked vs failed.
iv. Broad market survey – Talking to customers always helps understand the
product viability better.

10.Redefine product strategy


There are only two things always true about product strategy:
i. It fails
ii. It changes
Based on the performance of features, you may need to alter your roadmap, or alter the
product altogether.

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can be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical,
photocopying, recording or otherwise without the permission of Anytime Learning Pvt. Ltd.

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