The practice of software product development has evolved substantially and rapidly over the years and the widespread adoption of the Agile methodology is a critical factor in this evolution.
This transformation in product development has evolved beyond the way products are developed to the roles and responsibilities of the development and management process.
Among the different roles, two that are critical to the success of any product development effort are the Product Owner and Product Manager roles. (Full disclaimer: every role is critical).
Depending on the organization you happen to find yourself in, these roles can get you very confused as to who is who, and who does what., especially if you have to work in Startups. I assure you I have been there and understand how confusing this could be.
This article explores comprehensively the Product Owner and Product Manager roles including their unique functions, differences, and collaboration, and helps determine which role may be right for you and your business.
Product Owner vs Product Manager: Roles and Responsibilities
An Overview of the Product Owner Role
The Scrum Guide defines a Product Owner as the role with the responsibility of maximizing the value of the product that is developed as a result of the work by the Scrum team.
The Product Owner is responsible for maintaining and prioritizing the Product Backlog which is the master list of desired features, requirements, and user stories for the product based on factors such as business value, risk, and dependencies, ensuring the development team always works on the most critical tasks first.
This is an essential role in Agile product development that entails the product developed meets the vision of the organizational leadership or the end-user.
A lot of products being developed encounter scope creep and gold plating as the developers get so fixated on features and functionalities rather than how it relates to the Product Goal. That is where the Product Owner comes in to keep the team focused on the Product Goal.
Product Owner Responsibilities
The core responsibilities of the Product Owner are centered around maximizing the value of the product being developed. These include:
1. Defining and Prioritizing the Product Backlog
The Product Owner is responsible for creating, refining, and maintaining the Product Backlog, which is a prioritized list of features, enhancements, and bug fixes that the team will work on.
They have to ensure that the Backlog items are clearly defined, and regularly updated to reflect the changing needs of the stakeholders and the market, and they should communicate the priorities to the Scrum team.
2. Collaborating with Stakeholders
The Product Owner must maintain an open line of communication with stakeholders, such as customers, users, and other teams within the organization.
They should gather input and feedback to ensure that the Product Backlog is aligned with the stakeholders’ needs and expectations, and regularly engaging with stakeholders helps the Product Owner make informed decisions about the product’s direction and priorities.
3. Defining Acceptance Criteria
For each item in the Product Backlog, there exist acceptance criteria that set the standards for when the item can be considered “done” and ready for release. The acceptance criteria should be clearly defined by the Product Owner.
By providing clear acceptance criteria, the Product Owner helps the team understand the desired outcome and ensures that the final product meets stakeholder expectations.
4. Participating in Scrum Events
The Product Owner plays an essential role in Scrum events, such as Sprint Planning, Daily Standups, Sprint Review, and Sprint Retrospective, and should be available to provide clarifications, answer questions, and make decisions throughout the project.
Their presence and active participation in these events ensure that the team stays focused on delivering value and stays aligned with the product vision.
5. Managing Release Plans
Release plans outline when new features and improvements will be released to customers, and the Product Owner is responsible for managing them by balancing the needs and priorities of stakeholders, the available resources, and the development team’s capacity.
Effective release planning ensures that the team can deliver a high-quality product that meets stakeholder expectations within the required timeframes.
6. Maximizing Product Value
Maximizing the value of a developed product is the primary responsibility of the Product Owner. By using factors such as customer needs, market trends, and the organization’s strategic goals, they should make data-driven decisions about which features and enhancements to prioritize.
Also, it’s important that the Product Owner continuously evaluates the product’s performance and makes adjustments as needed to optimize its value.
An Overview of the Product Manager Role
While the Product Owner focuses deeply on the Agile development process, the Product Manager has a much wider scope, responsible for the overall business strategy and lifecycle of a product.
The Product Manager role exists in both Agile and traditional organizations. Product Managers oversee products from inception through end-of-life, which could span many years for some products.
Their focus is on the long-term success of products, which requires strong strategic thinking, the ability to influence without direct authority, and data-informed decision-making skills.
They combine market awareness with technical knowledge to make choices that maximize the value of their products to both customers and the business.
Product Manager Responsibilities
The responsibilities of Product Managers span various aspects of the product development process, from conception to post-launch analysis. These responsibilities include:
1. Defining the Product Vision
A Product Manager is responsible for setting the overall vision and direction of the product by identifying customer needs, market opportunities, and any gaps in the existing product portfolio.
The product vision should be clear, concise, and inspiring, providing a roadmap for the entire team to follow.
2. Creating and Managing the Product Roadmap
The product roadmap is a strategic plan that outlines the product’s development over time. It’s the responsibility of the Product Manager to create, maintain, and update this roadmap, ensuring it aligns with the overall product vision and business objectives.
This should be combined with the prioritization of features and enhancements while balancing short-term needs with long-term goals.
3. Defining Product Requirements
With a clear vision and roadmap, the Product Manager’s next responsibility is defining the specific product requirements by working closely with stakeholders to gather and document their needs, and translating them into actionable product features and functionality.
These requirements need to be realistic, achievable, and well-aligned with the product vision and business objectives.
4. Coordinating Cross-functional Teams
Product development is a collaborative process that involves multiple teams, such as design, engineering, marketing, and more. The Product Manager is responsible for coordinating and communicating with these cross-functional teams to ensure they are aligned with the product vision, roadmap, and requirements.
Also, the role involves facilitating decision-making, resolving conflicts, and removing any roadblocks that may impede the development process.
5. Tracking Product Development Progress
Throughout the product development process, the Product Manager must continuously monitor and track progress against the roadmap and product requirements by regularly reviewing key performance indicators (KPIs), such as development velocity, quality metrics, and feature completion rates.
Where adjustments to the plan are needed, based on new information or changing circumstances, then the Product Manager must also be prepared to make them.
6. Ensuring Product Quality
The Product manager is ultimately responsible for the quality of the product. This means working closely with the development and quality assurance (QA) teams to ensure that the product meets or exceeds customer expectations, as well as any applicable regulatory requirements.
Quality standards and best practices must also be established and enforced throughout the development process.
7. Launching the Product
Once the product is ready for launch, the Product Manager is responsible for coordinating the go-to-market strategy and execution. This includes collaborating with the marketing and sales teams to develop promotional materials, manage product launches, and drive adoption.
Also, they have to work with customer support teams to ensure they are prepared to handle any questions or issues that may arise post-launch.
8. Analyzing Product Performance
Post-launch, a Product Manager must analyze the product’s performance in the market by measuring KPIs, such as user engagement, customer satisfaction, and revenue generation, as well as gathering customer feedback and monitoring competitor activity.
Then use this data to identify trends, uncover opportunities for improvement, and ultimately drive the ongoing evolution of the product.
Product Owner vs Product Manager: Key Differences
From the overview of these roles and their responsibilities, you probably already have a good idea of how different they actually are.
This understanding is essential especially when you work in an organization where the roles of Product Owner and Product Manager are so interwoven and conflated that you don’t know who is who.
For further clarity, this head-to-head comparison clarifies other differences and highlights the unique value each role brings to a project.
1. Scope and Focus
Product Owner: The Product Owner is mainly focused on the tactical aspects of product development within a specific project or team with the primary responsibility of ensuring that the development team has a well-defined and prioritized Backlog of work items, such as user stories and features.
They work closely with the development team, clarifying requirements and ensuring that the team delivers the highest value to stakeholders.
Product Manager: In contrast, the Product Manager has a broader, more strategic role. They are responsible for defining the overall product vision, strategy, and roadmap, considering market trends, customer needs, and business objectives.
While the Product Manager does collaborate with the development team, their primary focus is on the bigger picture, ensuring that the product aligns with and supports the organization’s goals.
2. Stakeholder Engagement
Product Owner: The Product Owner interacts primarily with the development team and internal stakeholders, such as the Scrum Master and other team members acting as the voice of the customer within the team, conveying their needs and expectations.
They also work with stakeholders to gather feedback and ensure that the product aligns with desired outcomes.
Product Manager: Product Managers engage with a wider range of stakeholders, both internal and external working with customers, partners, and industry experts to gain insights into market trends and user needs.
Internally, they collaborate with cross-functional teams, such as sales, marketing, and customer support, to ensure a coordinated approach to product development and go-to-market strategies.
3. Metrics and Performance
Product Owner: The Product Owner is responsible for tracking and improving team-level performance metrics, such as sprint velocity, story completion rate, and team satisfaction.
They focus on ensuring the team is consistently delivering high-quality features on time and within budget.
Product Manager: Product Managers are more concerned with product-level metrics, such as customer satisfaction, user adoption, and market share.
They track key performance indicators (KPIs) to evaluate the success of the product and inform future product decisions and strategies.
4. Skillset
Product Owner: Product Owners typically have strong organizational and communication skills, as they need to keep the development team focused and aligned with stakeholder expectations.
They also have a solid understanding of Agile methodologies, such as Scrum or Kanban, and are skilled in backlog management, prioritization, and requirements definition.
Product Manager: Product Managers possess a diverse skill set, combining technical, business, and market knowledge. They need to be skilled in areas such as market research, competitive analysis, and business strategy.
Strong leadership, communication, and decision-making skills are also crucial, as they need to gain buy-in from stakeholders and drive the product vision forward.
5. Authority
Product Owner: The authority of a Product Owner is primarily limited to the Product Backlog. They have the final say on what items are included in the Backlog and their priority.
However, the Product Owner’s authority does not usually extend to other areas, such as the product’s overall vision or strategy.
Product Manager: Product Managers have broader authority, as they are responsible for defining the product’s vision, strategy, and roadmap.
They have the final say on the product’s direction and make decisions that impact the entire product lifecycle, from development to go-to-market strategy.
Product Owner vs Product Manager: How can they Collaborate for Succesful Product Development
Now that we have a clear understanding of these roles and how they differ, let’s explore how Product Owners and Product Managers can collaborate for successful product development.
- Shared Vision and Goals: It’s essential for both the Product Owner and Product Manager to have a shared understanding of the product vision, goals, and objectives. This alignment creates a strong foundation for collaboration and ensures that both roles are working toward the same end goal.
- Regular Communication: Frequent communication between the Product Owner and Product Manager is crucial to keep both roles informed about changes in user requirements, market dynamics, and strategic priorities. This can be achieved through regular meetings, progress updates, and collaborative planning sessions.
- Backlog Prioritization and Roadmap Alignment: The Product Owner and Product Manager should work closely to align the product backlog and roadmap. This ensures that the development team is working on the most valuable features and that the product strategy is being executed effectively.
- Cross-functional Collaboration: Both the Product Owner and Product Manager need to collaborate with other cross-functional teams, such as design, marketing, sales, and engineering, to ensure a cohesive product experience. Sharing insights, feedback, and learnings across teams helps to create a product that meets user needs and supports business objectives.
- Continuous Learning and Adaptation: In an agile environment, it’s important for both the Product Owner and Product Manager to embrace change and continuously adapt to new information. By learning from user feedback, market trends, and internal metrics, both roles can make informed decisions and adjustments to the product strategy, backlog priorities, and development efforts.
Product Owner vs Product Manager: Salary
For these roles, the salaries can vary based on factors such as industry, company size, location, years of experience, and the complexity of the role. However, these are the average salaries and the actual salaries can be significantly lower or higher based on various factors.
Product Owner Salaries: According to Indeed, the average salary for a Product Owner in the United States is $107551 per year, but this can vary widely depending on the factors mentioned above.
Product Manager Salaries: On the other hand, the average salary for a Product Manager in the United States is $113,484 per year according to Indeed. This too can vary widely.
Product Owner vs Product Manager: Which Role is Best for You
If you are thinking of crafting a career in either of these roles and wondering which is the best fit for you, from the overview of the roles, responsibilities, and differences, you should have an inkling which is a better fit for you.
To determine which role aligns best with your skills and career goals, you should also consider the following aspects:
1. Expertise and Interests
Product Owner: If you have a strong background in Agile methodologies, Scrum practices, and software development, the Product Owner role might be a better fit for you.
As a Product Owner, you need to have a deep understanding of the product, its users, and the technical aspects of the project to effectively prioritize and manage the Product Backlog.
Product Manager: If you have a more strategic and business-oriented mindset, the Product Manager role might be more suitable. As a Product Manager, you will focus on market research, customer segmentation, and long-term product vision.
If you enjoy creating business cases, understanding and analyzing market trends, and developing product strategies, this role could be the right choice.
2. Preferred Involvement Level in the Development Process
Product Owner: Product Owners are deeply involved in the day-to-day development process, collaborating closely with the development team and Scrum Master.
So if you enjoy being hands-on and working directly with developers to deliver a high-quality product, then you might find the Product Owner role more fulfilling.
Product Manager: Product Managers typically operate at a higher level, focusing on strategy and long-term product vision. They work with multiple stakeholders, including marketing, sales, and customer support, to ensure the product’s success in the market.
If you prefer a more strategic role that involves coordinating cross-functional teams and driving the overall product vision, Product Management might be for you.
3. Desired Career Trajectory
Product Owner: Product Owners often progress to senior product ownership roles, Agile coaching, or even Product Management positions.
If you’re passionate about Agile practices and want to continue growing within the Agile framework, the Product Owner role could be a great starting point.
Product Manager: As a Product Manager, your career path might lead to more senior product management roles, such as Group Product Manager, Director of Product Management, or even Chief Product Officer.
If you aspire to hold leadership positions in product development and strategy, pursuing a career in Product Management is the way to go.
Conclusion: The Importance of Defining Key Product Development Roles
With distinct focus and responsibilities, the Product Owner and Product Manager roles are both crucial for product development.
While the focus of the Product Owner remains to ensure value delivery and team alignment, Product Management drives the overall product strategy. By collaborating effectively, the likelihood of product success is greatly maximized.
A good understanding of the differences between these roles is also key for professionals in the product development field trying to choose between both roles
FAQs
Can a Product Owner become a Product Manager?
Yes, a Product Owner can transition to a Product Manager role. The skills and experience gained as a Product Owner, such as backlog management and stakeholder collaboration, are valuable in a Product Manager position.
However, additional development in areas like market research and strategic planning may be necessary. With continuous learning and skill expansion, a Product Owner can successfully become a Product Manager and take on broader responsibilities in product strategy and lifecycle management.
Can a Product Manager be a Product Owner?
Yes, a Product Manager can take on the role of a Product Owner, although it depends on the organization’s structure and needs. Combining these roles is common in smaller teams or startups.
However, it’s important to recognize that the responsibilities and focus of each role may differ. A Product Manager is typically responsible for product strategy, while a Product Owner is more involved in development and backlog management.
Does Product Owner report to Product Manager?
Typically, the Product Owner does not report directly to the Product Manager. Both roles often report to higher-level managers or executives in the product management hierarchy.
However, there is usually collaboration and coordination between the Product Owner and Product Manager to align product goals. The reporting structure can vary depending on the organization.
Is a Product Owner under a Product Manager?
No, a Product Owner is not typically under a Product Manager in the organizational hierarchy. While both roles collaborate and work together, they often have distinct responsibilities and may report to different higher-level managers or executives.
The Product Owner focuses on backlog management and ensuring the development team delivers value, while the Product Manager takes a broader strategic role in product vision and strategy. The reporting structure can vary based on the organization.
