PT Toronto #7: Saeed Khan (Product Manager at Informatica) shares his talk “Product Management Metrics OR How to Manage Your Products like a CEO."

1. @ProductTankTO
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#ProductTank
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A MEETUP FOR PRODUCT PEOPLE,
BY PRODUCT PEOPLE

2. Product Management Metrics
OR
How to Manage Your Products
like a CEO
January 12, 2017
Saeed Khan
@saeedwkhan
https://ca.linkedin.com/in/saeedwkhan

3. Is this you? 
http://www.productfocus.com/blog/archives/129

4. Or is this you?
https://marketoonist.com/2012/08/the-art-of-product-management.html

5. Turning the situation
around…
Do you want to be more
strategic?
Do you want to show your CEO
the value of Product Management
in your company?
Do you want to get promoted?*
* No promises of career success are being made in this presentation.
Your mileage may vary.

6. What is Product Management?
Building
“insanely
great
products”

7. “…the fusion
between
technology…
and the business
side…”
https://techcrunch.com/2009/03/06/marissa-mayer-on-charlie-rose-the-future-of-google/

8. Driving Product
Success through
all stages of the
Product Lifecycle
The Goal of Product
Management

9. Delivering measurable
business results through
products & solutions that
meet both market needs
and company objectives
across the product
lifecycle.
The Goal of Product
Management

10. Delivering measurable
business results through
products & solutions that
meet both market needs
and company objectives
across the product
lifecycle.
The Goal of Product
Management

11. You need to manage
your products like
your CEO manages
the company
Yes I know you are NOT the “CEO of your product” but
don’t let that stop you from acting like you are.
In Other Words….

12. What examples are
there for managing
Products in a Standard
and Systematic way?

13. Startup Metrics for Pirates
http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version

15. Become A PM Jedi
http://www.slideshare.net/dan_o/how-to-be-a-web-20-metrics-jedi-web-20-expo-april-2009

17. Become a Product Ninja
http://www.slideshare.net/maverickaman/metrics-for-start-up-ninjas

19. Lots of Web, Funnel & Other metrics

20. Couldn’t find anything
to holistically manage
the overall state of the
product

21. Let’s talk
about Metrics

22. What is a metric?
A business metric is a quantifiable measure
used to track, monitor and assess the
success or failure of a business process…
…[and] to communicate a company's
progress toward specific long- and
short-term objectives.
http://searchcrm.techtarget.com/definition/business-metric

23. What is a metric?
A business metric is a quantifiable measure
used to track, monitor and assess the
success or failure of a business process…
…[and] to communicate a company's
progress toward specific long- and
short-term objectives.
http://searchcrm.techtarget.com/definition/business-metric

24. Types of Metrics
Quantitative Metrics
Numerical values that can literally be measured through
automation or manual processes
e.g. deals closed, leads generated, pageviews, closed bugs etc.
Often easy to gather and share with others
Qualitative Metrics
Subjective assessments of status or results of a process or activity
e.g. training status, support readiness, task completeness
Often can be presented in quantitative forms

25. Types of Metrics
Vanity Metrics
Metrics that are easy to collect, but are difficult to use to
improve the business
e.g. Likes, Retweets, Downloads etc
Actionable Metrics
Metrics that directly measure important attributes that are
key to driving the business forward
e.g. conversion rates, acquisition cost etc.

26. Types of Metrics
Lagging Metrics
Metrics that tell you want happened, but don’t necessarily
help you change the outcome
e.g. Customer Turnover/Churn, # Bugs Closed
Leading Metrics
Metrics that help you predict a potentially related Lagging
metric
e.g. # customer complaints/week,
# high severity bugs opened/release

27. Lots of metrics to choose from (just a small sample)
Monthly Active Users
Churn
Retention Rate
Page
Views
Daily Active Users
Average
Customer
Lifetime
Net Promoter Score
Annual
Recurring
Revenue
Monthly Recurring Revenue
Customer
Acquisition
Cost
Lifetime
Customer
Value
Average MRR Per Account
Average Contract LengthAverage Case
Time Open Customer Renewal Rate
Net $
Renewal
Rate
Averag
e Sale
Price
Opened
Bugs per
Sprint
MOM
Growth
Sprint
Velocity
Average
Revenue
Per User
Activation
Rate
Implementation
s Started
Cases Closed
Average
Initial
Response
Time
Lost
Clients per
Quarter
Marketing
Qualified
Leads
Story Points Completed

28. The Key Question...
How to define the
right metrics to
manage your product
across the
product lifecycle?

29. What are the key areas
that must tracked and
managed to ensure
product success?
The First Step…

30. A Number of Categories to Choose From:
• Business
• Organizational Readiness
• Go-to-Market
• Product
• Operations
• Financial
• Sales
• Etc.

31. Decided on 4 Categories of Focus

32. What is important in each area?
Business
Corporate Objectives,
Revenue, Pipeline,
Win/Loss, Renewals,
Pricing, etc.
Organization
Internal Training and
Enablement (Sales,
Support, Marketing etc.),
Partners, Channels etc.
Go To Market
Positioning, Messaging,
Lead Gen, Marketing
Funnel, Sales Metrics,
Collateral etc.
Product
Product Strategy,
Capabilities, Roadmap,
Quality, Performance,
Stability, Gaps etc.

33. What is the
Product
Lifecycle?

34. Product Lifecycle Stages
Develop
Launch
Growth
Maturity
Decline
EndofLife

35. Product Lifecycle OBJECTIVES
Buildit
Nailit
Scaleit
Extendit
Milkit
Endit

36. Product Lifecycle Objectives
Objective Description
Build it
Nail it
Scale it
Extend it
Milk it
End it
Build the first version of the product for specific use
cases for a target market
Identify and address barriers to wider adoption within
your target market and prepare the company for product
growth – more than just product/market fit
Scale the business (marketing/sales etc.) and focus on
expansion and new customer acquisition
Move into new markets, market segments, use cases.
Growth in new customers and sales into existing base
Reduce investment but continue to market/sell with an
eye on maximizing profits from customer base
Remove all investment, stop actively marketing and
eventually remove from market

37. At each lifecycle stage,
Product Management
focus and objectives
can be different!

38. Focus Areas vs. Lifecycle Objectives

39. For any product, look at 1 stage at a time

40. For any product, look at 1 stage at a time

41. For any product, look at 1 stage at a time

42. For any product, look at 1 stage at a time

43. How to Define the Important Metrics to track
What questions are important
to answer for each focus area
for the current stage of the
product lifecycle
i.e. the key business metrics 

44. Rules for defining the product metrics
1. Define metrics to align with key goals
and objectives for your product.
2. Ensure that you can put programs in
place to change those metrics if needed.
3. The actual “metrics” will be a
combination of quantitative AND
qualitative measurements

45. Hypothetical example… READ THIS!
• The following is an example set of dashboards
for a “Scale it” stage product to show how to
implement the model.
• For each of 4 focus areas, I’ve picked key
metrics to track. You will need to pick the right
metrics for your product and stage.
• i.e. these may not all apply to your product. Don’t
just copy them without thought. 

46. Creating a simple dashboard
• CEOs like dashboards 
• Use simple traffic light model to indicate state of
metric
- on or ahead of plan
- at risk of missing plan (must monitor)
- behind plan, needs immediate attention
• Trend indicators showing whether improving or
declining

47. Common Business Metrics
• Sales/Revenue
• Pipeline
• Win/Loss
• Deal Size
• Renewals
• Pricing
• Resellers
• Etc.
What are the key metrics
and measurable factors to
track business progress
and success?
How are you tracking
against the plan or target?
What actions are needed
to improve the situation?

48. Business Metrics

49. Common Go-To-Market Metrics
• Positioning
• Competition
• References
• Social Media
• Analyst Relations
• Demand Gen
• Web Presence
• Collateral
These “metrics” are not as
numeric as the Business
ones, but are key to
tracking GTM status and
progress

50. Go-to-Market Metrics

51. Organizational Readiness
• Each group that is key
to go-to-market or the
ongoing success of the
product should be
assessed to see if they
have been trained and
are functioning
optimally.
Ensure there is a clear way
to assess if teams are
ready. Processes in place,
training complete, systems
ready etc.

52. Organizational Readiness

53. Product Metrics
• Strategy
• Roadmap status
• Product/Market Fit
• Product Gaps
• Product Quality
• Etc.
Where you probably spend
a lot of your time currently,
filling gaps, fighting fires
etc.
Raise the bar and
systemetize your efforts
and management of the
product

54. Product Metrics

55. • Each metric is based on additional
underlying data or information.
• Should be available if needed by
Management.
• Update dashboards as often as needed for
business review.
• Quarterly or semi-annually is good for most
companies.
Additional Rules and Guidelines

56. Why go through all
this effort and
present the product
this way?

57. • It is a simple, standard way to
manage almost ANY product
• Accounts for different needs at
different stages of lifecycle
• Easy to communicate status and
trouble spots to Senior Management
• Raise your own understanding of your
products and manage it like a CEO
• And finally….
Why do this?

58. …Because this is NOT what you want!!
http://www.productfocus.com/blog/archives/129

59. Product Management Metrics
OR
How to Manage Your Products
like a CEO
January 12, 2017
Saeed Khan
@saeedwkhan
https://ca.linkedin.com/in/saeedwkhan