For project managers looking to cross the chasm from a purely tactical role to a strategic position that has the ability to drive both their organizations and careers forward, transitioning into product management could be the right endeavor at just the right time.
The role of product managers has become even more critical in recent years, as businesses shift from a project-focused approach to a product-centric model in order to remain relevant. Plus, when the economy slows, companies tend to invest in positions that can have a positive impact on the top and bottom line, such as product managers.
In fact, over 8,900 positions for product managers were filled and 7,100 were posted just in the last 30 days, according to the State of Product Management Report.
While you probably possess some of the skills and experience that you will need to become a product manager, most project managers need to develop a broader, evolved skillset and mindset to deliver business outcomes instead of tasks, explained Dr. Sheldon St. Clair, a PMO consultant for St. Clair Solutions Ltd. and expert on the differences between project and product management.
Here’s a look at the skills and experience you need to acquire and some tips for making the evolutionary leap from project management to product management.
Familiarity with the Product Management Process
Understanding the main stages of the product management process and lifecycle will give you an overview of the discipline and highlight the skills you will need to master during your journey.
Get involved with the people in adjacent roles during projects (such as designers, engineers and business analysts) to see how they collaborate and work together to build great products, advised Andrew Wagner, lead product manager for Macy’s and former project manager.
“Sit in on design meetings and critiques to get a sense for the iterative design process or take a class on design fundamentals or watch YouTube videos,” Wagner suggested.
Volunteer for market research tasks or ask to be involved with product launches; basically, you want to participate in anything that will help you develop your strategic thinking skills and ability to align products with business goals. Remember, unlike project management, the product management process doesn’t have a definite start and end date; you’re always gathering feedback from users and customers and iterating.
Product Mindset and Business Acumen
Product managers need the ability to apply financial acumen, market research, budgeting, pricing strategies, risk management and financial impact to their product pitches in order to win support.
When you develop a product, it’s all about business value, St. Clair said. When it’s built, will it attract users, will it generate recurring revenue, how should it be priced? Answering these questions requires a deep understanding of the needs of the market, a user focus and the ability to perform a competitive analysis.
You could make a lateral move to business analyst or work on a project that involves marketing, risk management, customer support or sales to expand your business and market knowledge, or seek out mentors in those areas. Whatever your choices, your intellectual curiosity may be the key to your success.
After you complete a project, go back to the sponsor and the main stakeholders to find out what went right and what went wrong, St. Clair said. What’s the feedback from users? If you can start developing that product management mindset now, you can incorporate it into your current projects and become comfortable asking different questions—not “better” questions, just different questions that explore the business impact of your work.
Speaking of mindsets, Wagner offered this warning: “You need to make the change to product management for the right reasons.”
Product management isn’t about coming up with ideas, he said. It’s about gathering ideas, talking to customers, identifying problems and getting everyone to agree on a solution. In other words, you have to be willing to leave your ego at the door.
Cross-Functional Relationships and Communication
What makes product management so challenging is that it requires building relationships and trust with diverse stakeholders beyond development. Specifically, driving product initiatives requires communicating horizontally with cross-functional team members, as well as vertically with other members of the organization, including the C-Suite. There’s also the need to interact externally with customers, vendors, strategic partners and shareholders.
In most cases, you have a flatter organizational hierarchy in product management than you have in project management. For instance, St. Clair says that he’s been in environments where the CEO engaged in regular conversations with the product analyst or market researcher.
While the project management communication process is a good foundation, it’s repetitive and tends to focus on execution, Wagner explained. Communicating as a product manager is very demanding. You need the ability to tailor and optimize your messages toward each group or type of stakeholder.
Surveys show that communicating with stakeholders is an area where product managers often fall short. Communicating effectively with stakeholders about outcomes (not features and functionality) is a skill that can be learned through free online courses, books, videos, and of course, on-the job practice.
Exposure to Scrum and Agile
Now that more companies are applying the Agile framework to product management and developing products using an iterative process like Scrum, it’s helpful to have some exposure to Agile and Agile ceremonies before attempting to make the transition from project manager to product manager.
In some companies, the product manager ends up the de facto Scrum Master, working with the Agile development team. Other times, they may be tasked with serving as the product owner on a Scrum team in addition to their product management role. Regardless, being familiar with Agile and Scrum can help you evolve to a higher level and set you up for success as a product manager.
