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Product Management:

Improving Organizational Effectiveness


Linda Gorchels
Director, Executive Marketing Programs Fluno Center for Executive Education School of Business, UW-Madison (608) 441-7336 lgorchels@exed.wisc.edu
University of Wisconsin-Madison Executive Education

Questions well explore


How do product manager roles relate to organization structure?
What factors affect the structural fit of product management? How can cross-functional expectations be better aligned?
University of Wisconsin-Madison Executive Education

Lets start with the basics

University of Wisconsin-Madison Executive Education

Product Manager Continuum


Upstream planning (strategic) Downstream planning (tactical)

Strategic product line planning


New product development Product life cycle management

Annual marketing planning


Advertising & promotions Sales support
Product planner

Tactical products manager

Product support
Product marketing manager

Product manager
University of Wisconsin-Madison Executive Education

How do product managers work?


Product managers must work through other people in a matrix structure (over a traditional structure).
The various functions become resources.

The product manager becomes the central knowledge repository.

University of Wisconsin-Madison Executive Education

What are traditional structures?


Functional Divisional
CEO

CEO HR Mktg Mfg


Div. A
MFG Mktg

Div. B
MFG

Div. C
Mktg

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Matrix structures
Transparent Heavyweight

Autonomous

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Structural Goodness-of-Fit
Culture

External Environment

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Where PM fits varied views


The Cranky Product Manager - Why it doesnt matter where Product Management lives in the organization Marty Cagan, Silicon Valley Product Management Group Where Should Product Management Live? Rich Mirnov, Enthiosys Where Should PM Report? Steve Johnson, Pragmatic Marketing The Strategic Role of Product Management

University of Wisconsin-Madison Executive Education

Potential influence roadblocks


Channels

Engineering
Customer Service

General public Top management

Mfg

VOC

Sales

Finance Marketing Research

Purchasing

Customers Legal

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Need to break through the walls


Techies feel they are the guardians of innovation Salespeople feel they own the customer relationship Marketers feel they have objective information

Production wants to minimize changeorders


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Project leaders want to meet critical deadlines

What are the mutual expectations?


What can I expect from product managers? What should they expect from me?

Product Management

What can I expect from product managers? What should they expect from me?

Customer Functional Positions Channel Positions

University of Wisconsin-Madison Executive Education

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Key points
To increase the success quotient for product management:
Clarify the balance of upstream and downstream responsibilities expected of the position. Assess the dimensions that affect the structural goodness-of-fit. Gather and share mutual cross-functional expectations.

University of Wisconsin-Madison Executive Education

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