At the most basic level, a product’s success is measured by how well it sells in the market and the profit it brings to the company. A company’s success is ultimately a roll-up of all products and services selling for a profit. This seems straight forward, and yet in my experience company leaders too often lose track of this important goal. They focus on this marketing campaign or that new technology, and lose track of what’s most important. Granted, sometimes they focus too much on profit at the expense of other important directives, but that’s a topic for another post.
In most companies product managers have a lot of products and significant responsibilities. It’s easy for them to get bogged down in the countless tasks that are thrown their way every day. With all the meetings, floods of email, and requirements to manage, the thought of focusing on a product’s profitability can be illusive. It’s not impossible, however. By focusing on three simple, yet powerful, practices, product managers can channel their products toward profitability:
- Know your market: Get a clear understanding of the market where your products compete, and work diligently to stay in front of new trends and technologies. Make customer calls and customer visits often. Work with the sales team; understand how they sell your products. Know what works. Know the weaknesses of the products (and take action to correct them). Understand why people pay (or don’t pay) for your products. Be the voice of the customer to your company.
- Provide clear direction: One of the key directives for products managers is to provide clear direction to the engineering/development teams. Good product managers write understandable and timely requirements and prioritize them effectively. They provide solid product design (most effectively with the help of good designers). A key to giving clear direction is for product managers to project their confidence and full support to the work engineering is doing. Earn their trust. Inspire them to do great things, especially when developing your products.
- Launch successfully: A successful product launch depends on a coordinated launch plan involving many different groups. Product managers are in a unique position to facilitate successful product launches. Start with a tight, focused beta program; learn from the testers and change accordingly. Help product marketing set the proper tone for the launch by understanding the new product’s strengths. Work in tandem with the customer support teams to monitor product acceptance and make changes where necessary. Work with the sales team to make sure they understand the new product and hit the ground running when it releases. After a successful launch, monitor the product’s uptake and financials and make sure it continues to succeed. This, of course, loops back to knowing your market and making sure your product meets the needs of the people in your market.
These three practices cover the most important bases for creating successful products. You should plan time to focus on these elements on a daily and weekly basis. If you are in a leadership position in product management, take time to evaluate your team and make sure they are focusing on these key practices that will lead to profitable products.