Comments on: How Much is a Product Manager Worth? https://www.prodpad.com/blog/product-manager-salary/ Product Management Software Wed, 14 Dec 2022 15:17:57 +0000 hourly 1 https://wordpress.org/?v=6.7.1 By: Nils Davis https://www.prodpad.com/blog/product-manager-salary/#comment-90 Mon, 11 Apr 2016 19:02:03 +0000 http://www.prodpad.com/?p=3377#comment-90 Jock – interesting thoughts! I do want to point out that I didn’t necessarily suggest measuring PMs on their revenue contribution – after all, it’s a very lagging indicator – the things I do today as a PM might not result in significant revenue for six months or more. On the other hand, if you can’t get the sales people to sell your product, that might mean it’s too hard to sell, which might mean it doesn’t solve enough of a problem for prospects that they have an urgent need for it. Or it might mean that you haven’t done enough work on the go to market side to help the sales team position the product to prospects. Or against competitors.

My goal in the article is really to point out that if a company wants to get their money’s worth from a product manager, they have to make sure that all three components of the activity – finding and validating market problems, creating solutions, and taking the solutions to market – are supported, and that the PMs are effective at all of them.

]]>
By: Jock Busuttil https://www.prodpad.com/blog/product-manager-salary/#comment-89 Wed, 15 Jul 2015 15:00:46 +0000 http://www.prodpad.com/?p=3377#comment-89 Many companies assess the success of their product manager(s) on the basis of the success of their products. This seems like a good idea, except that in many companies, particularly those with a sales team, the success of the product is not just dependent on the ability of the product manager, but on how effectively other groups of people are at their own jobs. While the product manager has influence (hopefully) over the sales team, in my experience it’s rare that control over sales incentives and strategy sits with the product manager. Usually this responsibility falls to the VP or head of sales.

Once, I had the situation where my product was one of several that the sales team could sell, and whether I liked it or not, I couldn’t force the sales team to sell my product. So of course they sold whatever was easiest for them to earn their commission cheque – namely the products they were more familiar with, even though they were lower margin. Selling those products resulted in lower but safer commission. Of course, this is just one example, I’m certain there a many counter-examples, but hopefully you appreciate my point.

So if the product manager has no direct control over how effectively the product is marketed and sold, I’d argue it’s not a reasonable assessment of their ability to create a successful product if they’re not in control of all aspects of taking that product to market. So in those situations the performance of the product is not necessarily a representative indicator of the performance of the product manager.

Rather, on the assumption that product managers doing the right things will stand a greater chance of successful products, I’d suggest assessing product managers on their ability and success with the activities that are within their direct control: being user-centric, evidence-led, adept at keeping track of both the detail and big picture, and alignment fo their product strategy with the broader organisational goals.

]]>