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    Thank you for a great blog on a very interesting topic. From my experience (4 years of Product manager / Senior advisor in telecom solutions (software only)) I would say that product managers are the first sign of an organization to apply the matrix model with departments and product lines going on different directions.

    I have always had my goals and metrics based on the products P&L while each sales manager have had a total budget for all our products and support had metrics for their performance. This created some frustration when I advocated for actions that did not directly fullfill their goals this year.

    But by creating virtual teams in the organization we managed to continue to have department goals and product goals. We gave one sales agent the responsibility (and bonus based on) the success of sales for a product for all the sales agents. Same with developers, support and our system integration team. This also helps us in developing our next release since more people are dedicated.
    This worked our great for us!

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    If we have a good quarter it’s because of the work we did three, four, and five years ago. It’s not because we did a good job this quarter.–Jeff Bezos

    Good product management is about next year and the year after. Measure product management on future successes.

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      Great point, and it goes to underscore the strategic business focus that makes up a large part of Product Management, and not simply operational focus for the current quarter.

      Having said that, one question is how to measure those activities that have a longer lead time to having business impact.

      While Jeff Bezos can look at things with a 4 or 5 year window, most companies can’t or do not.

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        Saeed and Steve
        Thanks for resurrecting the older posts and continuing this discussion.

        It’s true that the stuff I’m working on can be very long term, via the roadmap and new products, but most product managers are also managing existing products. How is it doing towards supporting company strategy and goals? Do I even have the data to assess it (to David’s point) and how can I get it? Are there things that I can do around processes in the company that are inefficient and producing cost, or can I do something to reduce or improve customer support, or can I find a way to better manage feature requests and subsequently the roadmap, or can I find a way to better arm the salesforce in an emerging segment, or could I find a fast and cheap way to mock up some potential new roadmap features and validate with a few customers ahead of engaging development, etc.

        It doesn’t always have to be around changing or producing the actual product to produce a business impact, and thus does not have to be a long lead item.

        It also seems that a highly valuable contribution from product management is that it helps the organization LEARN, both in what’s happening in the market and with the product (and its supporting ecosystem). Getting data, analyzing it, synthesizing different views, and publishing it with trends and recommendations are all highly valuable activities that could ultimately change trajectories of a product strategy and potentially a company.

        I’ve had the opportunity to be in a couple of organizations where I was able to provide bonuses to product managers on a quarterly or semi-annual basis, driven by short term deliverables and activities that are attempted to align with at least some short term business objectives. You’d be amazed at the focus and results that can be achieved in smaller steps and with small incentives. It’s easy to get ourselves wrapped up in boil-the-ocean types of expectations when we can do several things that can create business impact.


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    If I understand your comment, you’re advocated a bottom up approach to collecting metrics. i.e. as you state — gathering lots of data…and then finding [the important metrics] in the data.

    While that may be an interesting academic exercise, most if not all companies would do it top down.

    i.e. once objectives and goals are agree upon, decide how success towards those goals would be measured and put mechanisms in place to measure and track those metrics.

    In running a business, there are usually a small number of primary metrics that can be used to track progress and then secondary metrics can be derived to drill down and get insight into more specific issues.

    Each department needs to decide what those primary metrics are for them, and that is what should be tracked at the corporate level. Secondary metrics should be used to identify problems and support corrective activities.

    It’s shouldn’t be that complicated, but given that Product Management has a horizontal (i.e. cross functional) role to play in a company, it is sometime hard for people to identify what is important to track and what isn’t.

  4. David Locke

    The metrics should be statistically significant to your organization. That pretty much means gathering a lot of data without any preconceived notions about what the metrics should be, and then finding them in the data via factor analysis. Factor analysis is a manual weighting process similar to machine learning.

    Forgetting is likewise important as the factors will change as your product matures. Forgetting is easy enough. Just lose some of your older data and doing the factor analysis again.

    Otherwise, you have to construct a policy model that runs something like given conditions 1-34, this metric will drive, 35-62, this other metric will drive.

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