There have been so many analogies and directives around what the role of a product manager entails. One minute it is being ‘CEO of the product’ and then not, another being ‘data-driven’ or product-led and so on. In reality the role of product managers has become extremely complex and never ceases to morph and change along with technology trends and innovation. I’ve gone through of the must-have skills of PMs based on discussions with recruiters – some are obvious, others less so!
1. Data-Driven Decision Making
With the rise of big data and advanced analytics, being data-driven is no longer optional for PMs. Recruiters are looking for professionals who can interpret complex datasets to inform product decisions. For instance, companies like Spotify have set a high bar by leveraging user data to tailor recommendations and improve user experience. In 2023, Spotify’s PMs used machine learning algorithms to analyse listening habits, which led to the creation of personalised playlists like Discover Weekly and Wrapped, significantly boosting user engagement.
2. Customer-Centric Mindset
Understanding the customer’s needs and pain points remains paramount. A customer-centric approach ensures that products not only meet market demands but also foster loyalty and satisfaction. Amazon’s PMs focused on customer feedback to enhance the Alexa experience. They integrated new features based on user suggestions, which helped maintain Alexa’s market dominance in smart home technology.
3. Technical Savvy
While PMs don’t need to be coders, a solid understanding of the technical aspects of product development is crucial. This includes familiarity with software development processes, emerging technologies, and the ability to communicate effectively with engineering teams. Google’s PMs recently played a pivotal role in the launch of Bard, an AI chatbot. Their technical understanding facilitated seamless collaboration with engineers, ensuring the product met both technical and user requirements.
4. Commercial Acumen
Being commercially minded is essential for PMs to align product goals with business objectives. This involves understanding market dynamics, pricing strategies, and revenue models to ensure the product contributes to the company’s financial success. However this goes beyond strategy and product managers increasingly are required to gather a much more nuanced and detailed understanding of the organisation they’re building products for. I’ve seen some PMs push back on this, they feel that sales and marketing or the C-suite should be across these areas. True but PMs need to remove their blind spots in order to function well inside an organisation.
5. Design Trends and UX Proficiency
Staying abreast of design trends and having a keen understanding of user experience (UX) principles is vital. PMs must ensure that products are not only functional but also intuitive and aesthetically pleasing. I touched on this in another post and want to come back to it. I’ve noted recently that when recruiters are speaking to product managers they often look at how any task materials are presented and what design skills a PM might have. This may seem unfair but I see the point – if you’re able to throw together visually pleasing presentations and understand design then you’ll be better placed than a PM that does not when it comes to hiring.
6. Strategic Thinking
Strategic vision is essential for aligning product goals with business objectives. PMs must be able to forecast market trends, identify opportunities, and formulate strategies to capture market share. However be mindful of some of the topics highlighted above – as a PM are you able to discuss design strategy, branding, the importance of product positioning and also the commercial aspect of the organisation? Add visibility to these communication areas and you’ll be well placed to grow in your role.
7. Leadership and Communication
Effective leadership and communication skills are indispensable. PMs must inspire teams, manage cross-functional collaboration, and communicate the product vision clearly to stakeholders. Microsoft’s PMs effectively led the rollout of new features in Microsoft Teams. Their ability to manage cross-functional teams and communicate updates clearly was crucial in maintaining Teams’ competitive edge in the collaboration software market. I often see PMs struggle to advance in their career due to the fear of presenting and managing up and down in their roles. Be fearless and make sure you over-communicate to your teams and people. One thing I’ve been guilt of in the past is assumption. Never assume people know anything! Spell it out and you have a better chance of success.
8. Adaptability and Resilience
The ability to adapt to changing circumstances and bounce back from setbacks is increasingly valuable. The dynamic nature of the tech industry requires PMs to be resilient and flexible. As you can see the demands on product managers is ever increasing. To be able to deal with long hours, pivots, people problems and so much more, anyone in a product organisation needs to be able to adapt and build up resilience. During the economic fluctuations of 2023, many startups had to pivot their business models. PMs who successfully navigated these changes demonstrated remarkable adaptability, ensuring their products remained viable and competitive in challenging conditions. And it is here I’d like to end the post because I’ve seen the most successful product managers thrive when they are able to move quickly and bat off politics and other distractions in companies. If you need coaching in these areas please reach out!