Product managers conceive, plan, develop, test, launch, and deliver products in the market to satisfy customers and achieve business objectives. Also they can discontinue products that doesn’t meet market expectations, or that have increasing costs. Product management need to discover a product that is user-oriented, feasible and valuable in order to maximize sales revenues, market share, and profit margins for a company.
When the role of Product Management is well driven within startups or large companies, there is a direct and positive impact in their finances. Product managers actually will save you (and make you) money as a benefit of their project development strategies.
1) Sales support to meet revenue quotas
The principal goal of the sales department is to achieve the maximum number of transactions that the company establishes. Product Management can contribute to accomplish sales objectives by combining efforts to identify market opportunities and approach them with a collective strategy. Sales can work on acquiring clients and Product Managers can focus on developing products oriented to satisfy their needs. In the end, both departments will make more money by working closely than independently.
2) Risk reduction of product failure
Product managers have to conduct marketing research prior to the development of a product. That ensures that the product is designed to satisfy completely the needs of customers. The success of a product depends on whether it solves a market problem or not. If the company focuses on developing successful products, there won’t be wasted efforts and money.
3) Effective communication within the company
Communication is one of the keys to achieve the goals of a company effectively. Product Management has to identify problems and guide the team correctly to find the best solution and make it to work on time. Product Managers need to keep the people updated to the project strategy. If the team gets involved correctly in the process, the company will improve its productivity and use of resources.
4) Continuous testing of products to ensure quality
Product management likes to analyze and test continuously their products in order to improve them and make the most profit. Metrics and overall feedback are essential to compare how well is a product doing over the time. Therefore if a product needs adjustments or there is an opportunity to make an upgrade, the decision will be totally supported by trustable information.
5) Successful negotiation with stakeholders
Stakeholders are an important part of a company, but sometimes they like to fight for their own interests to make the most out of their investment. This creates a big conflict between the business departments, and gets everyone in a difficult position. Product managers have the characteristic of understanding and managing the different expectations that stakeholders may have within a company. Product Management will always encourage to bring the best solution for all the directions that they want to take in order to make a decision in consensus.
Some start-ups and large companies may doubt the benefits that Product Management can bring to their company. The truth is that there are no cons of managing this specialized department within your organizational structure. On the contrary, if you hire a product manager, you will be able to lower pressure from other areas to focus on achieving the most of your financial goals. If Sales, Marketing, Development and Management combine efforts, it will be easier to reduce unnecessary expenses and make the most profit for your company.