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IF ONLY I’D HAD A TARDIS: WHY YOU SHOULDN’T RELY
ON TIME TRAVEL TO MANAGE YOUR PRODUCT FINANCIALS
Amanda RalphHead of Product – Kinetic Super
22 August 2015
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#prodmgmt @ralphytown @pcampmelb
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A core role of the product manager is VALUE CREATION – value to the customer; value to the business
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You must be able to predict (forecast), measure and create value
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AS PRODUCT MANAGER YOU NEED TO:
• Know and understand your customer: understand the customer need – the job to be done
• Identify the market opportunity and the business drivers• Translate those needs into product strategy and requirements • Develop a business case that defines the expected costs and
return on investment • Test, learn, iterate and take your proposition to market
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BUT IT IS NOT JUST A CASE OF ‘BUILD AND SHIP’
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YOU NEED TO MEASURE PERFORMANCE
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UNDERSTAND YOUR FINANCIALS
• They will help you identify where the opportunity exists to realise benefits and deliver optimal value… at scale• And to know where problems and
threats to your product performance exist….
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YOU NEED TO MEASURE PERFORMANCE SO YOU CAN OPTIMISE BUSINESS AND CUSTOMER VALUE
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WHAT TO MEASURE?
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DEFINING YOUR BUSINESS METRICS
• They must be measurable – you need to be able to track them back to business/value driver
• They must align to your product and business objectives• They must be actionable – i.e. you have to be able to do something about
them; to intervene and make an impact
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They will be a combination of numerical business values (within your P & L) as well as more intuitive ‘gut feel’ indicators
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• Revenue• Costs – cost to acquire; cost to serve; cost to retain• Management expenses (your business overheads)• Margin – gross and net• Volumes – number of customers/’widgets’ acquired, lost• Market share• Actual versus Forecast – OVER TIME• Measure of channel effectiveness• Customer satisfaction
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Together, these form your product dashboard
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Source: http://www.slideshare.net/saeed_w_khan/product-management-metrics-be-the-product-ceo?next_slideshow=1
SAMPLE DASHBOARD – STATUS AND KEY INSIGHTS
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Your dashboard should enable you to understand performance at a ‘snapshot’ and then to drill down in more detail within each measure.
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It should be easy to communicate and quickly highlight opportunities and trouble spots
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TOOLS OF THE ‘TRADE’ FOR A PRODUCT MANAGER
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Product Canvas by Shardul Mehta (The street smart Product Manager) http://streetsmartproductmanager.com/product-canvas/
Great for identifying on a single page your product strategy and the elements of your proposition that you need to deliver to solve for the job to be done – including core business value and financials
PRODUCT CANVAS
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Useful once you have identified the job(s) to be done to focus on core drivers of value across different dimensions of the business – these can then become central to business case and defining measures of success and should be reflected in your product dashboard.
VALUE DRIVER TREES
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A FINAL WORD ON WHY YOU SHOULD KNOW YOUR FINANCIALS…
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LOOK FAMILIAR?
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AS PRODUCT MANAGER YOU NEED TO HAVE EXCEPTIONAL INFLUENCING SKILLS: • You need to be able to build trust and confidence in your product
strategy• The business needs to get a sense of the degree of business risk
and business value that your strategy will deliver• And they need to be able to understand ‘what success looks like’
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In larger corporate environments, you will need to be able to navigate and deliver your product vision confidently to:• Investment committees• CFOs• Actuaries• The Board• The Executive Committee• And any other governance ‘clearing houses’ that your company
requires
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If you are a start up, you will need to be able to convince:• Funding partners – investors; crowd sourcing• Grant committees • And any other governance ‘clearing houses’ that
your start up requires
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YOU NEED TO BE THE CONSUMMATE DIPLOMAT – A WELL INFORMED AND KNOWLEDGEABLE ONE
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KNOWING YOUR FINANCIALS WILL BUY YOU STAKEHOLDER ‘CAPITAL’ AND CREDIBILITY
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WHICH MEANS YOU CAN KEEP DOING WHAT YOU LOVE – DEVELOPING AND MANAGING LEADING PRODUCT PROPOSITIONS
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THANK YOU!
+61 429 512 566
au.linkedin.com/in/ralphamanda
@ralphytown