What Do PMs Do & What Skills Are Necessary?

If you ask ten people what Product Managers do, you're likely to receive ten different responses. Some may believe PMs manage timelines and deliverables, while others might think they closely collaborate with engineering teams on technical requirements, or that they are responsible for creating visual designs and journey maps. This variety in perception stems from the differing roles and expectations within various companies.

Gibson Biddle aptly described product leaders as those who should drive strategy to

> Delight customers in hard-to-copy, margin-enhancing ways. — Gibson Biddle

Following this framework of delighting customers in unique ways that competitors cannot imitate, I have identified four key skill sets essential for PM candidates:

1. Business
2. Technology
3. Product Design
4. Domain Expertise

Moreover, effective communication is paramount. For example, promoting your exceptional product to your team, peers, and leadership is vital for identifying strategic gaps and securing early support. A PM's primary tool for leading without formal authority lies in their storytelling and advocacy, typically manifested through:

• Face-to-face (or Face-to-Zoom) Conversations — Direct interaction allows for honest feedback, particularly crucial when presenting to leadership, as it cultivates allies for your product.
• Presentations — These help establish credibility and excite internal stakeholders, motivating them to champion your product. This enthusiasm drives sales teams to engage customers and can encourage investors for funding rounds.
• Meetings — Keep these brief and focused, with essential participants only. Meetings should foster two-way communication, aiming for tangible outcomes.
• Documentation — Similar to meetings, documents should be concise, operating with a "one-pager" mindset to effectively communicate ideas. These serve as both the product strategy's source of truth and offline reference for the team.
• Messaging Platforms (Slack/Email) — Promptness in responses is crucial. As the focal point for your team, maintain clear and transparent communication across all channels.

1. Business

A PM must ensure that the product they are developing will thrive in the market. This requires a set of critical business skills akin to those taught in an MBA program:

• Forecasting
• Segmentation
• Strategy
• Top-down market analysis — TAM/SAM/SOM
• Bottom-up market sizing — sales reach, marketing reach, segment growth
• Pricing
• Packaging
• Go-To-Market strategy
• And more!

This category focuses on ensuring the product's viability and alignment with the company's strategic and market objectives.

2. Technology

This skill set involves anticipating technological trends, communicating effectively with engineering teams, and contributing to design discussions.

• Familiarity with the Software Development Life Cycle (SDLC)
• Broad awareness of tech trends
• Comprehension of engineering efforts and estimates
• Quality/Scope/Schedule/Cost trade-offs
• Building rapport and trust with engineering teams

Understanding the relative effort of work is crucial for managing product timelines. For instance, if integrating an "Add to Cart" button is estimated at 900 story points, a PM should be able to assess that realistically.

3. Product Design

In terms of design, a PM must possess a keen product sense to engage customers, foster growth, retain users, and create memorable experiences that distinguish their product from competitors.

Nir Eyal captures this concept in his book Hooked, noting that to create a sticky product that captivates users, the focus should be on delighting them over time to foster habits and encourage investment.

> Habit-forming products often start as nice-to-haves (vitamins), but once the habit is formed, they become must-haves (painkillers). — Nir Eyal

A Product Manager must grasp the following skills to collaborate effectively with UX teams in crafting outstanding products:

• Product sense
• Growth loops
• Retention loops
• Product stickiness
• Personas
• Journey maps/user stories
• Visual design
• User experience
• Creating delightful customer experiences

4. Domain Expertise

This area emphasizes developing a deep understanding and substantial expertise in the product space. A proficient PM not only comprehends their own industry but also possesses extensive knowledge of competitors' products and solutions.

To excel, a PM should:

• Segment their personas — Clearly define customer segments, target audiences, and their pain points.
• Conduct competitive analysis — Evaluate how their product compares to competitors, focusing on strengths and growth trajectories.
• Engage in research — Stay informed about macro trends and technological advancements that could affect strategy.
• Build a network — Establish relationships within the domain to gain insights and support.

PM Roles Can Be Loosely Defined

The product manager role is often vaguely defined and may encompass several of the aforementioned categories. In larger organizations, roles tend to be more specialized; for instance, Inbound Product Managers (technical PMs/TPO) may be distinct from Outbound Product Managers (strategy/vision/go-to-market).

In sizable companies, UX teams might handle most product design tasks, while Product Marketing Managers (PMMs) take on marketing responsibilities. PMs are expected to be knowledgeable across a wide array of topics, allowing them to navigate almost every aspect of a product's lifecycle effectively.

The Product Unicorn

The four key areas—Business, Technology, Design, and Domain—are essential for a PM's success. While it's uncommon for one individual to excel in all four, proficiency in at least two is crucial. Those who master all four categories may be considered exceptionally rare—a standout Product Manager.

In conclusion, you now have insights into what it means to be a product manager. The role is dynamic and varies across organizations, demanding a diverse skill set and knowledge base.

For a deeper understanding of the PM role, check out the detailed video below on YouTube and consider subscribing to my channel. Stay tuned for part 2!