The field of product management is currently undergoing a transformation, leading some to argue that it is in a state of crisis. After a rapid growth phase for product organizations, not every company has seen the return on investment i.e. world class products they had wished for. The combination of development of mediocre products, unclear responsibilities in the organization and how to master new technologies have brought criticism to the CPOs.
Today’s CPOs are important leaders within the C-suite. Keeping company goals front of mind and aligning product strategies accordingly, they play a critical role in guiding the company toward success. In this fast-changing world, they watch current trends and anticipate future ones; they effectively manage product teams, drive innovation and ensure products meet market demands—and have the agility to change strategies if needed.
However, they face significant challenges—unclear role definition, how to really measure success, the right level of communication and dealing with expanding technologies. By addressing them, CPOs could drive ROIs and alter the perception of the impact that product management can make within organizations.
- CPOs need to clearly define the role of product management within the organization’s context and strategy—to themselves and to others. Product management is often confused with project or delivery management, which blurs the operational and strategic responsibilities of the role. This is especially true in non-tech companies that have little prior experience and knowledge about the product management role—it is no wonder that CPOs in that domain struggle to position their product organization within the company.
- The difficulty in positioning the organization can be compounded by a lack of clear understanding of how the product organization’s success is measured. To effectively showcase product management success, CPOs need to establish focused objectives that align with the organization's overall strategy—setting specific goals and metrics that can be easily understood and tracked, which in turn can enable clearer ownership structures. CPOs also need to be the bridge between product teams and financial teams.
- CPOs need to be able to communicate effectively. They need to explicitly explain the strategic role of product management—using the relevant language whether it be financial, legal, technical, or customer-centric. Although communication and collaboration should be core capabilities of the product management function, CPOs may underestimate the importance of using these capabilities to promote the product management organization. To be effective in their roles, CPOs need, for example, to create alliances with other top-level executives and convincingly communicate how product management can have a powerful impact on the success of the organization.
- And, as with many other roles, the rapid rise of technologies such as artificial intelligence (AI) has placed a significant emphasis on technical skills and know-how for product managers. Striking a balance between technical expertise and product management skills is crucial. CPOs need to understand and embrace the implications of tech changes and learn to leverage them to the company’s (and customers’) advantage—while ensuring that their teams possess the necessary skills to develop technically innovative products that focus on customer needs and market developments.
Despite the positive impact that product management can have within organizations, there is a shortage of roles which are scoped in an empowered way on the one side and a shortage of qualified product management professionals who are able and willing to fill the role appropriately, particularly in Europe, where the role is relatively new compared to i.e. the US. As a result, organizations may end up with gaps in product development. This, in time, may result in the product organization not delivering on its promises and lead to questions about the necessity of the role overall.
Therefore, CPOs play a critical role in organizations as leaders who drive their product teams to develop best-in-class, customer-focused products that drive value. Despite the product management function currently facing challenges, overcoming these hurdles could lead to the necessary evolution and strengthening of the CPO role—ultimately making it even more essential for the success of organizations.
