The Evolution of Product Management: From Project Managers to Growth Drivers

The Changing Landscape of Product Management

Product management is undergoing a significant transformation. Gone are the days when product managers were simply seen as "mini CEOs" of their product areas. Today, the role is evolving into something more akin to a "growth manager" - a position that combines elements of traditional product management with a strong focus on driving business growth and revenue.

From Product Manager to Growth Manager

According to Ola Johansson Visova, a product and growth advisor with over a decade of experience in product management, this shift is already well underway. She observes that effective product managers have always tied their work to financial outcomes, but now this connection is becoming more explicit and central to the role.

"If you're a good and effective product manager, what you usually do is you put a dollar tag on everything you do," Johansson Visova explains. "On the processes you do, on the effects of your work and revenue stream - everything you can turn into a money-wrapped item."

This evolution is being driven by market demands. Companies, especially in the B2C and early-stage startup spaces, are looking for product leaders who can not only manage the development process but also directly impact the bottom line.

The New Expectations for Product Managers

The changing nature of product management is reflected in job descriptions that Johansson Visova has observed. These roles often expect candidates to have:

• A deep understanding of marketing principles
• Responsibility for profit and loss statements
• Budget management skills
• The ability to build and manage teams
• A track record of driving growth and revenue

These expectations represent a significant expansion of the traditional product management role. It's no longer enough to simply oversee the product development process - today's product managers are expected to be growth drivers for their organizations.

Bridging the Gap Between Product and Marketing

One interesting aspect of this evolution is how it's blurring the lines between product management and marketing roles. Historically, "growth" was often seen as the domain of marketing teams. Now, product managers are increasingly taking on these responsibilities.

Johansson Visova sees this as a positive development: "This us versus them mentality from marketers versus product people, I think now is going to morph into one nice interesting role that I would love to see more people do."

This convergence of skills and responsibilities could lead to more holistic, customer-centric approaches to product development and marketing.

The Skills Product Managers Need in the Growth Era

To thrive in this new landscape, product managers need to develop a range of skills that may not have been part of their traditional toolkit. Johansson Visova highlights several key areas:

1. Continuous Learning

The pace of change in technology and business means that product managers must commit to ongoing learning and skill development. This isn't just about staying current with product management methodologies - it also means developing a broader understanding of business, marketing, and growth strategies.

2. Expanded Perspective

Product managers need to look beyond their immediate area of responsibility. Understanding how their work fits into the broader business context - from marketing to monetization to customer retention - is crucial for driving growth.

3. Effective Communication and Visibility

It's not enough to do great work - product managers need to be able to effectively communicate their achievements and impact to stakeholders across the organization. This includes quantifying the value of their work in financial terms whenever possible.

4. Entrepreneurial Mindset

The ability to think like an entrepreneur - identifying opportunities, taking calculated risks, and driving innovation - is becoming increasingly valuable for product managers.

5. Financial Acumen

Understanding the financial implications of product decisions and being able to tie product metrics to business outcomes is crucial in this new landscape.

Challenges and Considerations

While the evolution towards growth-focused product management offers exciting opportunities, it also presents some challenges:

Balancing Short-term and Long-term Goals

With an increased focus on revenue and growth metrics, there's a risk that product managers might prioritize short-term gains over long-term strategic initiatives. It's crucial to maintain a balance and continue to invest in innovations that may not yield immediate financial returns but are essential for long-term success.

Avoiding the Dunning-Kruger Effect

As product managers expand their skill sets into areas like marketing and finance, there's a risk of overconfidence. It's important to remain humble and recognize the depth of expertise that specialists in these areas possess.

Managing Increased Expectations

The expanding scope of the product management role could lead to unrealistic expectations. Companies might expect a single individual to possess deep expertise across a wide range of disciplines, which could lead to burnout or dissatisfaction.

The Future of Product Management Careers

Johansson Visova sees two potential career paths emerging for product managers in this new landscape:

1. High-Impact Individual Contributors: Some product managers may evolve into highly skilled individual contributors who can leverage tools, agencies, and AI to generate significant value for their organizations.

2. Fractional or Advisory Roles: Others may move towards fractional, advisory, or mentorship roles, where they can apply their broad skill set across multiple organizations on a part-time or project basis.

Both of these paths leverage the entrepreneurial skills and broad knowledge base that growth-focused product managers are developing.

Adapting to the New Reality

For product managers looking to thrive in this evolving landscape, Johansson Visova offers several pieces of advice:

1. Prioritize Ruthlessly: With an expanding set of responsibilities, it's more important than ever to focus on high-impact activities.

2. Quantify Your Impact: Always try to tie your work back to financial outcomes or other key business metrics.

3. Expand Your Knowledge: Look for opportunities to learn about areas adjacent to your current role, such as marketing, finance, or data analysis.

4. Develop Your Personal Brand: As the lines between roles blur, your personal brand and reputation become increasingly important.

5. Stay Curious: Maintain a learning mindset and stay open to new ideas and approaches.

Conclusion

The evolution of product management towards a more growth-focused role represents both a challenge and an opportunity for product managers. By embracing this shift and developing a broader skill set, product managers can position themselves as key drivers of business growth and innovation.

However, it's important to approach this evolution thoughtfully. While expanding one's skills and taking on more responsibility can be exciting, it's crucial to maintain a balance and avoid burnout. Product managers should strive to become T-shaped professionals, with deep expertise in core product management skills and a broad understanding of related disciplines.

Ultimately, the most successful product managers in this new landscape will be those who can effectively bridge the gap between product development, marketing, and business strategy - driving growth while still delivering exceptional user experiences. As the role continues to evolve, staying adaptable, curious, and committed to continuous learning will be key to success in the dynamic world of product management.

Article created from: https://www.youtube.com/watch?v=Om7eB5wjr6M