Product management, like any complex organizational design, is not perfect. There are communication breakdowns, blurred lines of responsibility, and changes in strategy that cause firms to question its value or even consider major reorganization efforts. Before your firm dives into either initiating OR eliminating a product management architecture, join us to explore a few tips and tools on both the need for, and the effectiveness of, a product management structure.

1. 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

2. Questions we’ll 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

3. Let’s start with the basics
University of Wisconsin-Madison
Executive Education

4. Product Manager Continuum
“Upstream planning” “Downstream planning”
(strategic) (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

5. 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

6. What are traditional structures?
• Functional • Divisional
CEO
CEO
Div. A Div. B Div. C
HR Mktg Mfg
MFG Mktg MFG Mktg
University of Wisconsin-Madison
Executive Education

7. Matrix structures
• Transparent
• Heavyweight
• Autonomous
University of Wisconsin-Madison
Executive Education

8. Structural Goodness-of-Fit
Culture
External
Environment
University of Wisconsin-Madison
Executive Education

9. Where PM fits – varied views
• The Cranky Product Manager - Why it doesn’t 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

10. Potential influence roadblocks
Channels
General
Engineering public
Top
Customer
management
Service
Mfg VOC Sales
Finance Purchasing
Customers Marketing
Research
Legal
University of Wisconsin-Madison
Executive Education

11. Need to break through the walls
“Techies” feel
they are the
guardians of Marketers feel they
innovation have objective
Salespeople feel they information
“own” the customer
relationship
Production
wants to
minimize Project
change- leaders want
orders to meet
critical
University of Wisconsin-Madison
deadlines
Executive Education

12. What are the mutual
expectations?
What can I expect
from product What can I expect
managers? What from product
should they expect managers? What
Product Management should they expect
from me?
from me?
Customer
Functional Positions Channel Positions
12
University of Wisconsin-Madison
Executive Education

13. 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