Agile Product Owner – New Name, Same Old Problem

This is a guest blog post by John Mansour, Founder and Managing Partner of ZIGZAG Marketing

In the world of agile software development, the confusion over product owner versus product manager is hardly new. This problem has existed as long as software and product managers have been around. It merely has a new name.

First, let’s cover the basics. There are two key roles in the software product delivery continuum that must precede the first line of code being written, regardless of development methodology.

  1. The “what & why” role – responsible for determining “what” functionality should go into a product and “why” from a market and business perspective. The “what and why” role serves as the conduit for all inputs both internal and external. The end game of this role is to grow revenue by aligning product direction with market dynamics and customer needs. The “what & why” function is typically the responsibility of the product manager. Traditional or agile, it’s necessary regardless of who does it, their title or how it gets done.
  2. The “how” role – responsible for determining “how” product features should work to support the things users do. In its most basic form, this role is a surrogate user responsible for explaining in verbal, written and illustrated forms and in excruciating detail, what users do, how they do it and how software must work “functionally” to support the users. They spend most of their time with developers and they test functionality to make sure it works as designed, along with a host of other responsibilities. And yes, the best people for this role are former users or those who have worked intimately with a variety of users in multiple environments.

The “how” function is typically the responsibility of a functional product designer (for lack of a better title). For the fraction of software companies that have them they go by such titles as Business Analyst, SME (subject matter expert) and Technical Product Manager. In an agile environment they’re called Product Owners. Call them what you want, every company with high user interaction products needs them. They get much of the credit for things like iPhones and TiVo where the cool factor is the usability.

In my humble opinion, the confusion lies in two areas. First, software companies have been trying to combine responsibilities of the product manager and functional product designer for years and it’s a nightmare in every single case I’ve ever seen, and I’ve seen a lot. Plus it creates the same identity crisis as the product manager vs. the product owner in an agile world.

Regardless of development methodology, combining these roles is a recipe for failure because the skill sets and personality types required are distinctly different for each, not to mention the time commitment. When combined, the end result is either the right functionality with poor usability or highly usable features no one cares about. A dilemma on par with, “would you like to lose an arm or a leg today?”

The bottom line – your products will eventually fail. Second, “product owner” couldn’t possibly be a worse title, given the responsibilities of this role. Furthermore, product managers have always been affectionately referred to as product owners because they “own” the ultimate success of a product. Perhaps a dope-slap is in order for the person who coined the title “product owner.”

In summary, two distinct roles are necessary to feed requirements to software developers if you want usable products the market will buy, regardless of development methodology. The titles are less relevant as long as the responsibilities are clearly defined. For more on functional product designers read the article titled, Product Management & The Functional Designer – 3 Reasons it’s a “Must-Have” for Successful Products.

5 symptoms that software product managers are worrying more about competition and not customers

In the video presentation soon after Amazon’s acquisition of Zappos, Jeff Bezos, CEO of Amazon said “Obsess more about your customers than your competition.”  I could not agree more with him.

Here are 5 symptoms that you, as a software product manager, are worrying more about your competition and not customers:

  1. You spend more time benchmarking your competition than talking to your prospects or customers.
  2. Your sales team says that they cannot sell your current product because it does not have the latest gizmo widget that your competitor just released. They say “We need just that.”
  3. In internal company meetings, your team members spend more than 25% of the meeting time reviewing what the competition has done and dismissing them as a joke.
  4. Your company bad mouths your competition to customers and prospects.
  5. Your sales team brings up your competitor’s in presentations with customers and how you are better than them.

Don’t get me wrong, you need to keep a very good tab on your competition. You need to have a detailed understanding of their product strategy, their products, their financials, their pricing strategy – do as much competitive intelligence gathering as you can and make sure it is kept upto date. Use their products as prototypes. Get one person dedicated to that effort if you have the resource.

But spend at least 5 times more time listening to your prospects and your customers. Even talk to your competitor’s customers – understand how the competitor’s products work, where they fall short and why. Why did they select their product? What drove their decision making? What other products did they consider during purchase? How happy are they, why and why not? Would they be willing to test drive your product and give you feedback of what they like and don’t? Keep all of this customer centric and not competitor centric. Forget about the “corporate” nature of your competitor, instead keep it human, keep the focus on their products/services and how well they solve your market’s problems.

Just because your competitor build something does not mean they are right. They could be dead wrong. We definitely do not want to jump off the cliff with them, would we? Empower your sales team with all the competitive intelligence they need, in case they get questions on why you are better. But don’t make it their focus. More time they spend talking about the competition, less time they spend talking about you. Your sales team must not bring up your competitors unless you are asked. The whole show is about you, not about the competition. By bringing up their names unprompted, you are essentially creating free awareness and legitimizing your competition. For all you know, your prospects may have never heard about them.

I have written in the past on how it is not possible to win a feature war. Your competition will invariably have features you don’t have and vice versa. Instead focus on how you can build value for the customer and make them more successful in what they do. If you do this well, your success will come. No matter what competition throws at you, remain human. Civility never loses!

Never bad mouth the competition, respect them and beat them.

Thoughts? What are your insights?

7 things about product pricing

Here are 7 things I have learnt about product pricing.

#1 If price is your ONLY product differentiator, you are selling a commodity. And if your competitor is much larger than you, you may not have a prayer – they can run you out of town by giving the product away for free.

#2 There is nothing called perfect price. You will either overprice or underprice your product. The key is to test quickly to see what the market can bear, quickly iterate and arrive at your final price. Pick test markets, learn and manage, so that if you do not get it right, you do not have a customer backlash to deal with.

#3 Never roll out pricing increase to existing customers all at once. Why? – see #2.

#4 You cannot increase price without adding additional value for your customers. Customers don’t care about your expenses especially when they have choices. Focus on value you bring to the table for the customer, how it solves their pain points, not your expenses.

#5 You do not have to drop prices if your competitors do. If price is all you have to talk about, see #1. Refocus the discussion to customer value you provide and why the value is worth the additional price. If the customer will not, assess if the customer is worth acquiring. Not all customers are.

#6 You do not have to have single pricing. Promotions to attract new customers, rebates for large volume customers are things to consider only if it makes business sense. Don’t do any of this unless you have a sales strategy in place – what is the end goal for promotions and rebates – new customer acquisition? customer retention?

#7 If you want to price products based on value, think about packaging. Car companies do it – EX, LX, RX; consumer products do – large, medium, small; online services do – Basic, Pro, Premium.

What are your learnings about pricing based on your experience? Please share with me and other readers.

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Awareness, Persuasion and Shelf Life

Couple of weeks back, I was invited to write a guest blog post on On Product Management.

My post was titled Awareness, Persuasion and Shelf Life. I hope you enjoy reading it. If you do, please leave comments either on the post there or here.

Prevent your development team from turning into “blind men”

Involve them in exactly ONE customer interaction whether it is a customer visit or a customer phone call!

Not more, not less, exactly ONE and you as a software product manager would have done them the greatest disservice. blindmenandelephantThere is no better way for you to taint your team’s perspective of your market, your prospects, your customers, your buyers. They will now have ONE data point to rely on. Later when they question your market research based on your large number of customer data points, can you blame them? You will hear “That is not what I heard from the customer I talked to…..”

Instead as a software product manager, involve your cross functional team members (development, QA, product marketing etc.) in multiple customer interactions as possible. Avoid the situation where a team member just attends one. Set the ground rules – either you attend at least three customer calls (visits) or you don’t attend any. Having a musical chair of developers attend these customer calls (visits) such that each one gets to listen to one customer is not useful. If this happens, your team’s perspective of the customers will be akin to the Blind Men in the famous Indian fable of Blind Men and the Elephant.

They will miss out on seeing the patterns, trends, consensus, variations, contradictions that emerge after multiple customer calls. You will be better off in having less number of developers get a good feel for the user base by having them consistently attend multiple calls (visits) than spreading the wealth among all of your team members. Once you do this, it will be a lot easier to prioritize and decide what to build.

Thoughts?

Image Courtesy of: Satrakshita

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Business Lesson from Wimbledon Finals 2009?

What an amazing Wimbledon Men’s final it turned out to be between Andy Roddick and Roger Federer. An epic battle of 4+ hours, 77 aces, 77 games, the fifth set alone lasting 90 minutes. Roddick brought his A+ game to try to beat his arch nemesis Federer who had beaten him 18 of the previous 20 times they had met. But alas after 77 games, 27 aces, holding serve until the very last game, winning 83% of his first serve points – the result ended up to be the same – Federer won it all. I felt bad for Roddick because he gave it everything and still came up short.wimbledon

As I was thinking about the entire match over the course of the afternoon, something dawned on me as a business lesson from this finals. It is every tennis player’s dream to win at Wimbledon. But not many do, it is a lot harder. But then there are tons of other tournaments where the competition is not that tough but with a lot of winners. This is where I thought businesses could learn from – which dreams to chase, where to play, where to spend the energy and time etc.

Imagine that you sell sales automation software. The market is huge since every company on the planet can possibly make use of it. Let us assume that you have $100,000 sales and marketing budget. Would you want to spend all of it in trying to win the “big fish” account – a Fortune 500 company trying to replace their current sales automation software? The stakes are high, competition is stiff with a lot of bigwigs with a lot of money in the fight. You could transform your company overnight if you win it all – but should you play? The question comes to something simple – what are your chances of winning? Are you better off playing in the smaller “tournaments” and building a strong customer base before trying to play on “center court” in the biggest tournament of your market? Will you survive if after all the effort you end up like Roddick – with no Wimbledon title to show? (Andy Roddick is still an awesome player who still has a lot to show since he has won 27 singles titles, $15M+ prize money).

The key is “focus” – where do you want to spend your money, time and energy? It sounds simple right? No. It is very easy to try to be everything to everyone and be nothing to anyone. It is easy to go chasing after the biggest deal on the planet and come up with nothing. It is easy to try to solve a problem more than you can chew and fail completely. A local company that recently shuttered its doors comes to mind – it (I am withholding the name) was launched with an ambitious goal of  developing a cross-channel commerce platform that would allow large retailers to integrate and manage content and sales across the Internet, catalogs, and physical stores – a novel idea, but with one problem – they had just one customer (its parent from whom they had spun-off) sign up on the vision – eventually the company folded when it could not deliver. TechCrunch report said “In retrospect, the warning signs were everywhere: 1) big company spin-off; 2) raised way too much money for a series A round; 3) reliance on that same big company as its main customer (and as an investor)”.

So everytime you are told by sales that this is “the” deal – ask about the stakes. What if you don’t win after all? Will you survive? Do you have eggs in other baskets? It could be your biggest win but could be your death knell as well. It may just be OK to say “No” to play and spend your energy in the smaller “tournaments” and notch up wins. Business after all is never a sprint, it always is a marathon.

Keep it human

Susan Oakes of M4BMarketingBlog asked me if I would be willing to write a short tip for her upcoming post on “How to Keep your Customers Loyal”. The post outlining some great tips should be coming out anytime now. Here is what I submitted.

Keep it Humantips
In the times we live in, customers are bombarded with marketing messages from all over. In this noisy world, companies that stand out are the ones which retain the human touch. The best way to buy customer loyalty is by treating each one of them as a unique human being at every touch point. Buying after all is a human behavior, so make sure you respect the “human” part of it.

Now what does “keep it human” mean? It could mean any or all of the following:

  1. An introductory greeting and opening the door to the customer when they walk into your store
  2. Helping the customer “buy” the right thing to solve their problem and not just try to “sell” them what you have. In some cases, you may not even have the right thing that the customer wants – recommend where they can “buy” the right thing – it means loss of a sale, but could be earning a longtime “relationship”, people typically don’t forget those who help them.
  3. A thank you card send to the customer after purchase
  4. A follow up phone call to make sure the customer is satisfied a few days after purchase
  5. A website that helps the customer finalize the buying decision and written in a language that the customer understands as opposed to one with marketing gobbledygook where the customer feels stupid
  6. A no questions asked, quality guarantee for all purchases
  7. Reachable customer support and friendly voice of the rep that engages with the customer to solve the problem
  8. A business that the customer would like to associate with and recommend to family/friends thereby putting his/her own reputation on the line
and the list could go on.

If you think about it, many of the above holds good for local businesses – the mom and pop stores in your neighborhood. The owner knows many of his customers by name, he chit chats with them when they come in, helps them solve their problem (not just sell them what they have). This is a relationship that has been painstakingly built over the years. The value of the relationship is not completely based on how much money you have spent in the store, but being respectful of you as a human being. In the good and bad economic times, one scarce resource is “customer’s attention”. Business that win more of the customer’s “attention” will succeed. Customers tend to give more “attention” to those that respect them and keep it human.

Do you agree? What would your tips be on “How to keep Customers Loyal?”

Image Courtesy of: Montgomery Public Schools

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