peak product ag / powerpoint master 16x9

ProductManagement

Trends & Benchmarks Report 2020

Connect. Grow. Impact.

2

Key Findings

TRENDS AND BENCHMARKS IN PM 2020

Growth Opportunities

PMs want to grow, and 46.7% think their

manager should provide them with more

growth opportunities.

Lack of growth opportunities

is also the No. 1 reason why

PMs leave their job.

See page 31 for the reasons why PMs leave

their jobs.

Organizational Focus

38.5% of respondents say the biggest

focus on improving PM in their

organizations currently goes to

improving the products/services.

Only 15.5% say this focus is on

developing people and capabilities.

See page 44 in chapter Organization.

Leading PMs

Nearly 37% of the respondents

are not happy with the way their

manager gives feedback.

24.6% think their manager should

be more available.

See page 21 in chapter Leadership.

Collaboration

31.6% of respondents cite organizational

silos as the biggest barrier to good

collaboration among their teams.

See more on what hinders good

collaboration on page 43.

Key Insights 02

Leadership and Culture 11

People 23

Organization 34

Salaries in Product

Management 47

Process and Product 53

Frame of Survey 64

PMF Initiatives 73

Table of Contents


3


10,6%

17,6%

18,1%

20,2%

20,3%

24,6%

31,9%

36,6%

46,7%

Other

Be more supportive

Have more empathy

Ensure every team member feels safe and respectedat work

Micromanage less and give me more autonomy

Be more available

Provide more training opportunities

Improve the way they give feedback

Provide me with growth opportunities

Leadership & Culture

TRENDS AND BENCHMARKS IN PM 2020 Connect. Grow. Impact.

Leadership is not a title, and we believe that behind every great product team, there is a great leader. Here is what else PMs shared on what they wish their managers would improve.

“Become a leader not trying to be a helper.”

“Provide more opportu-nities to learn by example.”

“Focus on the organiza-tional barriers, structures and incentives that help me be more effective.”

“Take on more initiative towards solving cultural and cross-functional problems.”

How to Improve in Leading Product Managers

On Leadership and Culture

Page 11

Among the reasons for leaving the previous jobs, PMs cited family reasons, desire to relocate, restructuring, failed start-ups and many more. Here is what some of the respondents said in our survey:

“Work hours incompatible with family life.”

“Not impactful enough.”

“Multiple: I would like to grow more/have more responsibilities and am unsatisfied with my pay.”

People


34,2%

16,5%14,9%

6,2%

28,3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

No opportunities togrow

Poor managementperformance

Bad team culture Too much workloadfor the pay I receive

Other

Why PMs Leave Their Jobs

On People and their

challenges

Page 23

Oftentimes, organizations spend a lot of resources to make processes and methods better, instead of working towards improving culture, leadership and to bring structural changes.

Shifting the focus of improvement by investing in people, their development and in company culture and leadership will not only boost team morale, improve psychological safety, but also increase the product team performance and help with talent retention.

Organization


38,5%

30,0%

15,9%

6,2%

9,4%

26,4%

21,1%

24,6%

1,9%

25,9%

0%

10%

20%

30%

40%

50%

Product and/orservices

Processes andmethods

People andcapabilities

development

Place (structuralchanges)

Leadership andculture

Current Focus Desired Focus

Improving Product Management; Current Focus vs Desired Focus

OnOrganization

Page 34

18.923

20.391

24.063

46.886

47.425

56.919

67.025

69.022

70.238

71.958

79.174

81.558

88.333

97.484

118.683

140.289

0 20.000 40.000 60.000 80.000 100.000 120.000 140.000 160.000

Indonesia

Turkey

Malaysia

India

Russia

Spain

France

Sweden

Germany

Canada

Singapore

Netherlands

UK and Northern Ireland

Australia

Switzerland

USA

Salaries

Product Manager Average Annual Salary – Before Tax in USD*


*Average salary in Product Manager roleper country stated if at least 3 sampleswere available.

Salaries have been asked in USD, CHF EUR or GBP. For comparison, salaries have been converted to USD.

7

Salaries in different

roles

Page 47


8

How product decisions are made can vary significantly between different organization types. In agile organizations, product decisions are most often made using prioritization criteria. The highest percentage of ad-hoc decisions is observed naturally in chaotic organization.

47%

61%

70%59%

44%

62%

65%

42%

49%

39% 25%34%

37% 29%31%

28%

26% 27% 22% 25%

7% 8% 9% 9%

Chaotic Start-up Agile Bureaucratic

Other

Reaction to competitor's moves

Next customer deal decides

Ad hoc

Using data and analytics

Using prioritization criteria

Process and Product


How Product Decisions Are Made in Different Organization Types

Type of Organization

On PM Processes

Page 53

Start-up

• constantly shifting focus

• ad hoc and frenetic

• unpredictable

• no boundaries

Agile

• collaborative

• quick decision making

• responsive and resilient

• empowered to act

Chaotic

• uncoordinated

• fighting fires

• rigid

• local tribes

Bureaucratic

• siloed

• established and reliable

• slow

• risk averse

9

Organization Types


In this report, the organization types we look at are Chaotic, Agile, Start-up and Bureaucratic. See below for some of the characteristics these different types of organizations exhibit.

COERCIVE

“Do what I tell you.“

Coercive leadership is a command

and control style. It relies on forcing

people to do what you tell them,

whether they want to or not.

AUTHORITATIVE

“Come with me.”

The ability to inspire others to trust

your vision and follow willingly. It’s a

strong, positive, visionary style that

requires leaders establish a strong

bond based on trust.

AFFILIATIVE

“People come first.“

Affiliative leaders focus on harmony

and put people first. It is a leadership

style that shies away from

confrontation.

DEMOCRATIC

“What do you think?“

Democratic leaders take everyone’s

opinion on board so that all decisions

are backed by a consensus.

Leadership Styles


SERVANT

“I’m here for you and to

help you succeed.“

The servant-leader listens, puts the

needs of others first, is empathetic

and committed to developing and

growing people.

PACESETTER

“Do as I do now.“

Pace-setting leaders push their

people hard by setting stretch goals.

10


In this report, we look at how different primary leadership styles correlate to several other aspects in Product Management, such as product team health rating, psychological safety and openness to new jobs. See below for definitions of the primary leadership styles explored in the Trends and Benchmarks in PM 2020 report.

www.ProductManagementFestival.com

LEADERSHIP STYLES | CULTURE | PSYCHOLOGICAL SAFETY

LEADERSHIP AND CULTURE


http://www.productmanagementfestival.com/

12



12,1%

16,3%

21,3%

14,3% 13,8%

22,2%

COERCIVE

AUTHORITATIVE

SERVANT

AFFILIATIVEPACESETTER

Primary Leadership Style in Product Management

DEMOCRATIC

Coercive Leadership

“Do what I tell you.”

Authoritative Leadership

“Come with me.”

Servant Leadership

“I’m here for you and to help you succeed.”

Affiliative Leadership

“People come first.”

Pacesetter Leadership

“Do as I do now.”

Democratic Leadership

“What do you think?”

13



4%3%

4%

7%

10%

13%

17%

20%

14%

7%

0%

5%

10%

15%

20%

25%

1 2 3 4 5 6 7 8 9 10

How Psychologically Safe PMs Feel at Work 1 – very often I feel uncomfortable and stressed at work 10 – I love the atmosphere at work

Psychological Safety Rating Scale :

Psychological Safety

4,8

6,3

7,26,8

6,3

7,0

1

2

3

4

5

6

7

8

9

10

Coercive Authoritative Servant Affiliative Pacesetter Democratic

Psy

cho

log

ica

l Sa

fety

14



Psychological Safety and Its Relationship to Leadership Style There is a relationship between leadership style and psychological safety rating.

Managers can make a real difference on the psychological safety of their team with how they lead.

A mix of involving leadership styles such as servant, democratic and affiliative can work wonders.

1 – very often I feel uncomfortable and stressed at work 10 – I love the atmosphere at work


”Do what I tell you.”

”Come with me.”

”I’m here for you and to

help you succeed.”

”People come first.”

”Do as I do now.”

”What do you think?”

15



4,5

6,1

7,2 7

6,3

7

4,8

7 7,2

6,56,2

6,66,7

5,3

8,2

6,5 6,5

7,8

1

2

3

4

5

6

7

8

9

10


Psy

cho

log

ica

l Sa

fety

EMEA APAC North America


”Come with me.”






Psychological Safety in Relationship to Leadership Styles Across Regions

1 – very often I feel uncomfortable and stressed at work 10 – I love the atmosphere at work


16



4,5

6,0

6,9

6,0 6,16,5

1

2

3

4

5

6

7

8

9

10


Job

Sa

tisf

act

ion

Le

ve

l

Primary Leadership Style and Its Relationship to Job Satisfaction

1 – very dissatisfied 10 – very satisfied

Job satisfaction level on a scale from :


”Come with me.”






5,3

6,8

8,0

6,0

1

2

3

4

5

6

7

8

9

10

Yes, I'm activelysearching

Not looking, butsomehow open

No, I'm happy in mycurrent position

Yes, but outside ProductManagement

Psy

cho

log

ica

l Sa

fety

17



Psychological Safety and Its Relationship to Openness to New Jobs1 – very often I feel uncomfortable and stressed at work 10 – I love the atmosphere at work


Openness to New Jobs



54%

34%

20%

35%

30%

24%

35%

48%

48%

44%47%

55%

4%16% 29% 17% 18%

18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Yes, I'm actively searching Not looking, but somehow open No, I'm happy in my current position

Yes, but outside PM Other

Primary Leadership Style Relating to Openness to New Job Opportunities

Coercive Leadership

“Do what I tell you.”

Authoritative Leadership

“Come with me.”

Servant Leadership

“I’m here for you and to help you succeed.”

Affiliative Leadership

“People come first.”

Pacesetter Leadership

“Do as I do now.”

Democratic Leadership

“What do you think?”

18


67%

23%18% 17%

8% 6%

19


1:1, bi-weekly

or similar

meetings

Does not provide

me with feedback Accurate and

well-timed

feedback

Regular OKRs

status updates

with measures

taken accordinglyCoaching

sessions



How Managers Lead Their PMs

Other

Others include:

“Ad hoc feedback not often and timely enough.”

PM from a B2B company with over 2000 employees.

“Ad hoc but frequent feedback focused on projects/tasks –no coaching or career development or regular feedback.”

PM from a B2C company with 101-500 employees.

7,3 7,26,7

6,3

4,9

1

2

3

4

5

6

7

8

9

10

Coaching sessions Accurate and well-timed feedback

Regular OKRs statusupdates with measures

taken accordingly

1:1, bi-weekly orsimilar meetings

Does not provide mewith feedback

Job

Sa

tisf

act

ion

20



Relationship Between How Managers Lead and Job Satisfaction How managers provide feedback directly impacts the job satisfaction of PMs.

PMs who receive feedback in coaching sessions and/or accurate and well-timed feedback have rated their job satisfaction the highest. Not providing feedback, on the other hand, leads to less content PMs.

1 – very dissatisfied 10 – very satisfied

Rating Scale is :

10,6%

17,6%

18,1%

20,2%

20,3%

24,6%

31,9%

36,6%

46,7%

Other

Be more supportive

Have more empathy

Ensure every team member feels safe and respectedat work

Micromanage less and give me more autonomy

Be more available

Provide more training opportunities

Improve the way they give feedback

Provide me with growth opportunities



Leadership is not a title and we believe that behind every great product team, there is a great leader. Here is what else PMs shared on what they wish their managers improve.

“Become a leader not trying to be a helper”

“Provide more opportu-nities to learn by example”

“Focus on the organisa-tional barriers, structures and incentives that help me be more effective”

“Take on more initiative towards solving cultural and cross-functional problems”

How to Improve in Leading Product Managers

21


22



12%

40%

18%

30%

23%

18%

14%

24%

38%

40%

44%

40%

42%

36%

37%

40%

31%

40%

16%

32%

18%

17%

14%

22%

12%

40%

18%

36%

22%

21%

31%

21%

54%

20%

37%

44%

42%

30%

16%

25%

69%

80%

54%

56%

49%

56%

61%

39%

23%

22%

26%

27%

27%

29%

26%

19%

20%

23%

20%

17%

19%

18%

17%

Project Manager

Product Designer

Product Owner

Junior Product Manager

Product Manager

Sen Product Manager

Product Lead

VP of Product/Head ofProduct

Micromanage less and give me more autonomy Improve the way they give feedback

Have more empathy Ensure every team member feels safe and respected at work

Provide more training opportunities Provide me with growth opportunities

Be more available Be more supportive

Desired Management Improvements by Role


JOB SATISFACTION | PMs’ ACTIVITIES | CHALLENGES

PEOPLE


People


4,8%

4,9%

5,2%

6,9%

7,4%

10,2%

13,4%

16,7%

18,3%

23,8%

Market/competitive research

Product Marketing related activities

Product viability related activities

Learning/working on PM and org maturity

Interacting with customers

Product vision and strategy work

Meetings without product focus

Product development related work

Meetings with product focus

Daily business, ad hoc requests, firefighting

Main Activities of PMsNote: Respondents provided main activities performed during the 4–8 week period prior to taking the survey.

e.g. backlogs, user stories, testing

e.g. pipeline, growth, profitability

e.g. sales kits, trainings

24


People


54% 44%46%

59%

41%46%

56%

37%

48% 33%

26%

33%

40% 40%28%

28%

38%

21%17% 44%

37%

25%23%

41%

10%

22% 16%12%

15%11% 10%

15%12% 10%

Chaotic Start-Up Agile Bureaucratic

Other

Not being able to influence engineering

Not being able to find product market fit

Not being able to influence management

Lack of executive support

Lack of PM processes

Lack of role clarity

Lack of time

Competing objectives in the organization

Top Challenges for PMs by Organization Type


25

0%

5%

10%

15%

20%

25%

1 2 3 4 5 6 7 8 9 10

2018 2019 2020

People


Job Satisfaction Rate YoY 1 – very dissatisfied 10 – very satisfied

Rating scale:

26


People


4,8

6,5

7,3

5,4

1

2

3

4

5

6

7

8

9

10


Job

Sa

tisf

act

ion

Average Job Satisfaction by Organization Type

27


20%

15%

7%

50%

42%

19%

11%14%

21%

13%

22%

29%

5% 5%

19%

1% 2%5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Product-led organization(PMs are seen as leaders/PM as the

key differentiator)

PM is valued equally to other roles PM is not valued in our organization

I have fun in the daily job Hard work but it's fun

Hard work and I'm exhausted Workload is ok, but I'm not satisfied with the work

Workload is ok, but environment is very bad Other

Product Managers who work in product-led organizations and organizations where PM is equally valued to other roles work hard but also play hard.

In organizations where PM is not valued the percentage of Product Managers who find their workload to be ok, but believe the environment is very bad is more thanthree times higher.

PMs seeking higher job satisfaction should choose wisely the organization they want to work for and strive to understand how PM is valued inside the organization.

28

People


Perception of Product Management and Its Relationship to Job Satisfaction

24,9%

50,6%

21,4%

0,7%2,5%

31,0%

47,2%

18,3%

1,7% 1,9%

0%

10%

20%

30%

40%

50%

60%

Yes, I'm activelysearching

Not looking, butsomehow open

No, I'm happy in mycurrent position

Yes, but outsideProduct

Management

Other

2019 2020

People


Openness to a New Job YoY

29


People


40%

26%

20%

41%

45%

45%50%

47%

10% 23%28% 9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Other

Yes, but outside Product Management

No, I'm happy in my current position

Not looking, but somehow open

Yes, I'm actively searching

Openness to Other Jobs by Organization Type

30


Among the reasons for leaving the previous job PMs pointed family reasons, desire to relocate, restructuring, failed start-ups and many more. Here is what some of the respondents said in our survey:

“Work hours incompatible with family life.”

“Not impactful enough.”

“Multiple: I would like to grow more/have more responsibilities and am unsatisfied with my pay.”

People


34,2%

16,5%14,9%

6,2%

28,3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

No opportunities togrow

Poor managementperformance

Bad team culture Too much workloadfor the pay I receive

Other

Why PMs Leave Their Jobs

31

13% 12%

3%

10%

35%

17%

11%

15%

10%

2%

8%

43%

15%

7%

18%

10%

2%

9%

34%

12%

16%

24%

18%

53%

6%

0%

10%

20%

30%

40%

50%

60%

Better pay Organizationmaturity

Fewer hours Better product PM maturity Better companyculture

Other

EMEA APAC North America South America

32

People


Desired Characteristics of a New Job by Regions

Top 10 CompaniesPMs Would Love to Work for

33

People



TYPES | PM MATURITY | COLLABORATION | RECRUITING

ORGANIZATION



35

Organization


Type of Organization PMs Work for

17,7%

23,7%

30,4%

28,3%

Chaotic

Start-up

Agile

BureaucraticThe organization types we look at in this

report are Chaotic, Agile, Start-up and

Bureaucratic.

See page 9 for the description of the

different organizational characteristics.

36,4%

50,3%

11,4%

1,9%

Product Managers areseen as leaders/ProductManagement as the keydifferentiator (product-

led organization)

Product Management isvalued equally to other

roles

Product Management isnot valued in our

organization

Other

Organization


Perception of Product Management in the Organization

36

We asked respondents to share why in their opinion PM was NOT valued in their organization, and here is what they shared:

“Misunderstanding on what product management involves; lack of transparency and support from senior management.”

Respondent from B2B business with 3–5 years of experience in PM

“It is treated as a project management role with focus on output not outcome.”

Sen PM with 6–10 years of experience in PM

37

Organization


41%

33%

44%

29%

49%53%

39%57%

10% 12% 14%14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

APAC EMEA North America South America

Other

Product Management is not valued inour organization

Product Management is valuedequally to other roles

Product Managers are seen asleaders/product management as thekey differentiator (product-ledorganization)

Perception of PM in the Organization – Regional Differences


38

Organization


28%

30%

39%

44%

12%

7%

11%

22%

20%

11%

10%

6%

19%

12%

7%

20%

14%

6%

8%

4%

8%

11%

8%

11%

10%

5%

4%Yes, but outside Product Management

Yes, I'm actively searching

Not looking, but somehow open

No, I'm happy in my current position

Getting things done Impact Speed

Political savviness (selling/talking) Saying what bosses like to hear Creativity and Innovation

Comply to existing working culture Long hours Other

Correlation Between Most Valued Work Styles in the Organization and Openness to New Jobs

30%

36%

39%

22%

25%

23%

5%

5%

4%

12%

8%

8%

7%

2%

1%

11%

11%

9%

10%

12%

11%

3%

1%

4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

EMEA

APAC

North America

We have just PMs, no POs

We have PM covering also the PO role

We have a 1:1 relation from PM to PO

A PM has several POs

We have no PMs, only POs

A mix of all

We do not distinguish between POs and PMs

Other


39

Organization


Product Manager – Product Owner Ratio Across Regions


40

Organization


28,2%

20,4%

4,5%

11,1% 11,6%

9,5%11,4%

3,3%

32,5%

22,5%

5,0%

10,5%

5,1%

11,1% 10,7%

2,6%

We have just PMs,no POs

We have PMcovering also the PO

role

We have a 1:1relation from PM to

PO

A PM has severalPOs

We have no PMs,only POs

A mix of all We do notdistinguish between

POs and PMs

Other

2019 2020

Product Manager - Product Owner Ratio YoY Comparison

Organization


21%

15%12%

10%

43%

56% 57%

48%

29%25% 25%

29%

8% 5% 6% 14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

North America EMEA APAC South America

We have just started doing PM

We are doing PM but it's notestablished

PM is established but stilldeveloping

PM has reached maturity

Product Management Maturity by Regions

41


31%

38% 38%37%

45%

34%6%

7%

18%

8%

14%

15%8%

16%

10%

9%

7%

7%

21%

11%

9%19%

9%

14%

17%

8%5% 9%

9%

5%

10%

10% 7%

11% 9%

10%

7% 9%6% 5%

12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Other

Long hours

Creativity and Innovation

Comply to existing workingculture

Saying what bosses like tohear

Political savviness(selling/talking)

Speed

Impact

Getting things done

Organization


Most Valued Work Style in Organizations by Primary Leadership Style

42


Lack of alignment around goals44,2%

Internal competitiveness8,1%

Organizational silos31,6%

Physical separation (teams in different

time zones)10,0%

Other6,1%

Working together effectively with stakeholders is crucial for the success of the Product Manager and even the product. However, there are many barriers to good collaboration, many of which are outside the PM’s control or skillset. See what examples our respondents gave as roadblocks on the path to good collaboration:

43

Organization


Barriers to Good Collaboration

“Overlapping responsibilities.”

“Poorly stated company direction leaves a lot to interpretation.”

“Political non-alignment on goals, silos and also egos.”

Oftentimes, organizations spend a lot of resources to make processes and methods better, instead of working towards improving culture, leadership and to bring structural changes.

Shifting the focus of improvement by investing in people, their development and in company culture and leadership will not only boost team morale, improve psychological safety, but also increase the product team performance and help with talent retention.

Organization


44

38,5%

30,0%

15,9%

6,2%

9,4%

26,4%

21,1%

24,6%

1,9%

25,9%

0%

10%

20%

30%

40%

50%

Product and/orservices

Processes andmethods

People andcapabilities

development

Place (structuralchanges)

Leadership andCulture

Current Focus Desired Focus

Improving Product Management; Current Focus vs Desired Focus

We have a big problem in finding talent30,7%

We find talent but it involves a lot of effort

52,1%

We find Product Managers relatively

easily7,7%

Other9,5%

Organization


Issues Recruiting PM Talent


45

Organization


9%5% 8% 9%

58%57%

48%

42%

25%

25%

36% 41%

8% 13% 8% 8%

Agile Start-up Bureaucratic Chaotic

Other

We have a big problem in findingtalent

We find talent but it involves a lot ofeffort

We find Product Managersrelatively easily

Recruiting Efforts of PMs in Different Organization Types Chaotic and bureaucratic companies find it more challenging than agile and start-ups do in finding PM talent. And they also have the highest percentage of PMs who are actively looking to change jobs.

Positive impact on talent attraction and retention adds to the already numerous reasons to strive towards a more agile organization.

46



SALARIES IN PRODUCT MANAGEMENT


18.923

20.391

24.063

46.886

47.425

56.919

67.025

69.022

70.238

71.958

79.174

81.558

88.333

97.484

118.683

140.289

0 20.000 40.000 60.000 80.000 100.000 120.000 140.000 160.000

Indonesia

Turkey

Malaysia

India

Russia

Spain

France

Sweden

Germany

Canada

Singapore

Netherlands

UK and Northern Ireland

Australia

Switzerland

USA

Salaries

Product Manager Average Annual Salary – Before Tax in USD*


*Average salary in Product Manager role per country stated if at least 3 samples were available.

Salaries have been asked in USD, CHF EUR or GBP. For comparison salaries have been converted to USD.

48


49

Salaries


-

50.000

100.000

150.000

200.000

250.000

Product Owner Senior PM VP of Product/Head of Product Manager of PMs

USA Switzerland Australia UK and Northern Ireland The Netherlands Singapore Germany India

Salaries in Product Management Across Countries and Roles – Before Tax in USD*

*Average salary in different roles per country stated if at least 3 samples were available. Salaries have been asked in USD, CHF EUR or GBP. For comparison, salaries have been converted to USD. *In some countries, Manager of Product Managers come mainly from very large companies, while VP from smaller ones. This may result in disproportional earnings for these two positions in some countries.

67.839

64.471

79.835

129.323

102.387

Product Owner

Product Manager

Senior Product Manager

Manager of Product Managers

VP of Product/Head of Product

Germany (in EUR)

58.500

74.861

87.357

155.714

133.750

Product Owner

Product Manager




The Netherlands (in EUR)

68.333

68.415

84.545

123.400

92.222

Product Owner

Product Manager




UK and Northern Ireland (in GBP)

111.843

115.798

146.500

166.140

176.143

Product Owner

Product Manager




Switzerland (in CHF)

Salaries


Average Annual Salaries by Country *

*Average salary in different roles per country stated if at least 3 samples were available. Salaries have been asked in USD, CHF EUR or GBP. *In some countries, Manager of Product Managers come mainly from very large companies, while VP from smaller ones. This may result in disproportional earnings for these two positions in some countries. 50


35.949

42.519

65.025

89.622

90.846

Product Owner

Product Manager




India (in USD)

49.944

27.145

46.464

64.957

Product Owner

Product Manager



Malaysia (in USD)

110.667

97.484

130.430

126.000

178.400

Product Owner

Product Manager




Australia (in USD)

53.865

79.174

94.710

198.333

98.000

Product Owner

Product Manager




Singapore (in USD)

Salaries


*Average salary in different roles per country stated if at least 3 samples were available. Salaries have been asked in USD, CHF EUR or GBP. For comparison, salaries have been converted to USD. *In some countries, Manager of Product Managers come mainly from very large companies, while VP from smaller ones. This may result in disproportional earnings for these two positions in some countries.


51


107.333

152.162

163.148

241.179

224.231

Product Owner

Product Manager




USA (in USD)

71.958

116.000

120.833

142.826

Product Manager




Canada (in USD)

Salaries


*Average salary in different roles per country stated if at least 3 samples were available. Salaries have been asked in USD, CHF EUR or GBP. For comparison salaries have been converted to USD. *In some countries, Manager of Product Managers come mainly from very large companies, while VP from smaller ones. This may result in disproportional earnings for these two positions in some countries.


52



PROCESS | DECISIONS | METHODS & TOOLS

PROCESS AND PRODUCT



54

How product decisions are made can vary significantly between different organization types. In agile organizations product decisions are most often made using prioritization criteria. The highest percentage of ad-hoc decisions is observed naturally in chaotic organization.

47%

61%

70%59%

44%

62%

65%

42%

49%

39% 25%34%

37% 29%31%

28%

26% 27% 22% 25%

7% 8% 9% 9%


Other

Reaction to competitor's moves

Next customer deal decides

Ad hoc

Using data and analytics

Using prioritization criteria

Process and Product


How Product Decisions Are Made in Different Organization Types

Type of Organization

34,6%

24,0%

14,9%

9,7%

4,6% 5,2%7,0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

ProductManagementorganization

ProductManager

CEO/Founder HiPPO (HighestPaid Person

Opinion)

Otherdepartments

(sales,engineering)

PMs think theymake decisionsbut engineeringteam does what

they want

Other

Process and Product


Who Makes the Product Decisions

55

Here is what some of the participants who answered “other” wrote about decision making in their organizations:

“Collaborative between different roles. PM synthesizes and coordinates.”

“The Balanced Team (PM, UX, Eng. working together).”

“Tactical decisions by the PM teams, overall priorities by VP of the division.”

56

Process and Product


43%

33%

15%

31%

21%

13%

12%

16%

21%

5%

11%

4%

11%

21%

6% 11%

6%7% 7%

0%

20%

40%

60%

80%

100%

Product-ledorganization (PMs

are seen asleaders/PM as thekey differentiator)

ProductManagement is

valuedequally to other roles

ProductManagement is not

valuedin our organization

I don’t know

Other

Other departrments (Sales, Engineering)

HIPPO (Highest Paid Person in the Room)

PMs think they make decisions butengineering team does what they want

CEO/Founder

Product Manager

Product Management Organization

Decision Makers According to the Perceived Value of PM in Organizations

In product-led organizations, PMs and PM teams make decisions more often than in organizations where PM is perceived equally to other roles or not at all valued.

In organizations where PM is not seen as a key differentiator the percentage of PMs who think they make decisions, but engineering team does what they want is significantly higher.

In these organizations CEOs/Founders and HIPPOs make decisions most of the times. While it’s not uncommon in organizations for decisions to be made not solely relying on data, but also on gut feelings and experience, the highest paid person’s opinions and decisions can be dangerous to diversity, creativity and innovation.

PMs don’t win as loners regardless of the type of organization or the value seen in Product Management in these organizations. It takes working together well with all teams involved to create successful products.

55,3%

16,6% 16,0%

8,9%3,2%

0%

10%

20%

30%

40%

50%

60%

The direction wasright, but more timeshould have been

invested in thequality of the

decision

It was the rightdecision with

positive results

I do not know/tooearly to say

It was the wrongdecision with

negativeconsequences

Other

Process and Product


Did We Make the “Right” Decisions?

57

2%

4%

5%

16%

18%

13%

15%

22%

33%

3%

3%

3%

4%

9%

13%

21%

37%

37%

40%

48%

56%

56%

2%

2%

2%

3%

3%

4%

10%

6%

6%

9%

7%

5%

3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

AIPMM Framework

Blackblot PM's Toolkit

ISPMA

PRINCE2

Pragmatic Marketing

SAFE

Waterfall

Design Sprints

A/B Testing

OKRs

Lean Start-up/MVP

User Research

Scrum/Agile/Kanban

Works very well Could be working better Doesn’t work at all Not used


58

Process and Product

Satisfaction Level with Different Processes and Methods


2,8%

7,5%

11,2%

22,0%

30,9%

33,4%

41,1%

45,7%

47,6%

56,2%

0% 10% 20% 30% 40% 50% 60%

Other

We do not measure it

Growing faster than competition

Market Share

Conversion

Retention

Engagement/Usage

Customer Satisfaction/Net Promoter Score

Number of customers

Financial metrics (Revenue/Profit)


59

Process and Product


Product Success Metrics


59

2%

10%

4%

3%

4%

14%

18%

18%

23%

43%

25%

43%

30%

14%

24%

20%

23%

10%

7%

6%

10%

7%

3%

4%

5%

3%

1%

3%

5%

6%

5%

6%

South America

North America

APAC

EMEA

Hourly Daily Weekly Monthly Quarterly Every 6 months Yearly I don't know Other


61

Process and Product


Frequency of New Feature Launches by Regions

70,6%

57,0%53,1%

36,1%34,1%

29,7%

20,9%

14,5%

5,8% 5,3% 5,2% 4,2%2% 1,7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Jira Slack Confluence GoogleAnalytics

Gsuite Trello GoogleForms

SurveyMonkey

ProductPlan Typeform Aha Amplitude Roadmunk Pendo


62

Process and Product


Tool Landscape in Product Management


63

Process and Product

Desired Areas for Better Product Management Tools


2,4%

8,6%

10,6%

17,6%

17,6%

20,8%

22,1%

27,9%

35,9%

40,9%

42,7%

46,9%

50,4%

0% 10% 20% 30% 40% 50% 60%

Other

Service and Support

Sales/Pre-Sales

Engineering and Testing

Product Marketing

Design

Prototyping

Product Requirements Management

Business Case incl. Budgeting and Pricing

Roadmapping and Release Management

Research (Market and Product)

Customer Feedback

Product Vision and Strategy


COUNTRIES | BUSINESS SECTORS | CUSTOMERS | PRODUCT AREAS

FRAME OF SURVEY


Product Management Festival (PMF) conducted the Trends and

Benchmarks in PM survey over a period of 7 weeks starting in Nov

2019. Over 2000 product management professionals across the globe

participated in the survey. Participants came from a variety of industries

and company sizes and had different levels of experience.

Data Pool

A number of channels were used to reach as many respondents as

possible, these included, but were not limited to: PMF newsletters, PMF

events, web traffic, social media platforms, LinkedIn, Facebook product

management professional groups and product management

Slack channels.

About the Report


65


Product Management Festival (PMF) aims to amplify the impact that product

managers and their supporting organizations have on their careers, teams,

products, and the PM profession. It contributes to the development of product

managers and helps promote the importance of their roles by offering them a

variety of resources, data and insights, tools, and activities to empower them to

be more successful. PMF believes that supporting product managers in becoming

masters of their “craft” will help ensure the creation of extraordinary products

and even redefine the way we perceive these currently.

PMF Initiatives:

Product Management Festival - annual 2-day conferences in Europe and APAC

Local Executive Circles for Product Leaders

Global Product Executive Summits in APAC, Europe, and US

Product Management Executive Education with INSEAD

PM Nights - local community events open to all product managers online and

virtual

PMF Connect - virtual product sessions

PMF is led by a steering board with representatives from organizations such as

Google, Facebook, Ebay, Zalando, Omio, Ava, Pivotal Labs, Naspers, and SAP.

66

About Us


Survey Participants

Over 2000 product professionals,

32% of whom worked in companies with

more than 2000 employees.

Global Survey

PM professionals from 30 countries on 6

continents took part in the 2020 Trends and

Benchmarks in PM Survey.

Gender Ratio

Over 35% of the survey participants

identified themselves as women.

Range of Roles

From Junior PMs to CEOs and Founders,

PMF‘s survey was completed by

professionals with a range of roles. 22% of

the participants had Product Leader titles

(VPs/Head of Product/Director of Product).


67

Methodology


Frame of Survey

68


Map of Countries with Participants in the Survey


14,7 %

0,0 %

11,9%

2,1%

2,5%

2,9%

3,6%

3,8%

4,0%

4,5%

4,7%

5,2%

5,2%

7,9%

10,1%

13,3%

18,3%

Other*

Human Capital & Human Resources

Gaming & Apps

Telecommunications

Academic, Education & Trainings

Travel & Tourism

Airlines, Transport & Mobility

Industrial, Automation & IoT

Marketplaces

Consulting

Healthcare, Medtech & Science

Digital & Media

Consumer, Goods, Retail & Ecommerce

Banking/Finance/Fintech

B2B & SaaS

69

Frame of Survey


Business Sectors *Other:

Other sectors include, but are not limited to Insurance, Food & Restaurant, Luxury, Fashion & Retail

5,1%

10,5% 10,4%

24,7%

16,7%

32,7%

0%

5%

10%

15%

20%

25%

30%

35%

1 – 10 51 – 100 51 – 100 101 – 500 501 – 2000 >2001

70

Frame of Survey


Size of Organization – Number of Employees

71

Frame of Survey


Number of PMs in the Organization

9,7%

7,8%

19,5%

16,4%

12,6%

10,2%

6,3%

17,6%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

1

2

3 – 5

6 –10

11 – 20

21 – 50

51 – 100

>100

8,5%

17,3%

31,1%

25,7%

12,1%

1,7%3,7%

0%

5%

10%

15%

20%

25%

30%

35%

<1year

1-2years

3-5years

6-10years

11-20years

>20years

I haven’t worked as a

product manager yet

72

Frame of Survey


Years of Experience in Product Management

Trends and Benchmarks in Product

Management - an annual global report

which serves as a barometer of the

state of Product Management as a role

and function in organizations.

Product Management Nights – local

informal events aiming to bring the PM

community together regularly to

network and discuss topics on Product

Management.

PMF Europe and PMF APAC - annual

international conferences in Zurich and

Singapore, showcasing the latest from

PM experts and leaders from top

companies from across the globe.

Product Management Executive

Programme with INSEAD - a 5-day

globally-renowned program for current

and rising PM executives.

73

Product Management Festival Initiatives

Connect. Grow. Impact.TRENDS AND BENCHMARKS IN PM 2020

Connect. Grow. Impact.TRENDS AND BENCHMARKS IN PM 2020

CHECK OUT:


http://www.productmanagementfestival.com/

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