product management

Product owner vs product manager: 6 key differences

When it comes to product management, there are two main roles: the product owner and the product manager. Though both have a focus on the product, their responsibilities and day-to-day tasks vary greatly. So, what does a product owner and product manager do? And what exactly are the key differences between the two? Read on to find out.

What does a product owner do

Product owners are responsible for managing the product backlog and delivering customer value. They work closely with stakeholders to define the product vision, prioritize features and user stories, and ensure that the development team is focusing on the right items to meet customer demands. They need to understand how customers use the product, which features are successful, and what areas can be improved. This requires a deep understanding of user data and analytics. Product owners are also responsible for ensuring that any changes to the scope or timeline are communicated effectively. 

Product owners must be able to explain complex concepts to non-technical stakeholders and ensure that everybody is on the same page. Finally, they must be able to make quick decisions and manage competing demands while still delivering customer value.

What does a product manager do

Product managers are responsible for setting the product strategy and overseeing its execution. They work closely with senior leadership, stakeholders, developers, designers, engineers, and other teams to ensure that their product is aligned with the business goals. Product managers need to be able to communicate effectively between all of these groups to ensure alignment on objectives and deliverables. 

The product manager is responsible for researching and understanding the customer base and their needs, as well as any competition in the market. Based on this research, they will develop a comprehensive product strategy that outlines how to meet the customer’s demands. This includes defining the user experience, technical requirements, feature sets, and pricing structures. 

Product managers also oversee the product development process, which involves developing a feature roadmap, setting timelines and milestones, and ensuring that the team is meeting its goals. They are also responsible for testing the product before it goes to the market to ensure quality and usability. Finally, product managers will often be involved in launching the product by coordinating marketing campaigns, providing customer service, and gathering analytics. 

6 key differences between a product manager and product owner

1. Scope of Responsibility

The product owner is a member of the agile team responsible for delivering features and user stories on time and according to customer needs. On the other hand, the product manager is responsible for managing the entire product lifecycle from concept to launch.

2. Decisions

A product owner makes decisions within their project scope, while the product manager makes strategic decisions that affect the overall product and its success, like monetizing data and increasing user engagement.

3. Skills

Product owners need to be organized, detail-oriented and agile-focused. On the other hand, product managers need a mix of business acumen, market research skills and technical know-how. They must also have excellent communication skills and be able to work with stakeholders.

4. Goals

A product owner’s goal is to ensure that the team delivers user stories and features on time and according to customer needs. The product manager’s goal is to create a successful product that meets customer needs and provides value for the business.

5. Roles

The product owner is the team’s facilitator and helps the team to focus on the customer. The product manager acts as a proxy between stakeholders, customers and development teams.

6. Responsibilities

A product owner is responsible for setting up user stories and features that meet customer needs, while a product manager is responsible for overall success of the product and its profitability. They are both responsible for creating a roadmap and managing stakeholders.

How to transition from a product owner to a product manager

Transitioning from a product owner to a product manager can be challenging, but following the right steps will help make it easier. 

Cultivate the right skills

The first step is to learn as much as possible about the role of a product manager and the skills needed to succeed. This means researching what duties are expected of a PM, understanding the different areas of expertise, and gaining experience working with related technologies.

Develop a comprehensive strategy 

It's also important to develop a comprehensive understanding of the company and its product, as well as the target audience and market. This includes researching competitors, understanding customer needs, and identifying opportunities to increase engagement, like adding embedded analytics and staying up-to-date on new industry developments.

Gather experience

The next step is to gain practical experience in product management. This may include taking on smaller projects or shadowing a senior PM for guidance. Additionally, attending events and networking with peers can give you valuable insights into the field and help build relationships with potential employers.

Showcase success

Finally, it's important to demonstrate that you have the skills to manage products effectively. This can be done by creating a portfolio of your experience, writing blog posts and articles about product management topics like metrics and kpis the most successful product managers track, or demonstrating your expertise in industry forums. Strong communication skills and the ability to solve problems quickly and efficiently is essential for success.

By following these steps, transitioning from a product owner to a product manager can become an achievable goal. It requires dedication, hard work, and an understanding of the product manager role, but it is possible to make a successful transition with the right approach.

Make better data-driven decisions

Overall, product owners ensure that customer needs are met through agile delivery, while product managers set the vision for the product and ensure it is successful in the market. Both roles require different sets of skills, but they must work together to create a successful product.

The distinction between these two important roles is more nuanced than what it appears on the surface. It's essential for any organization to understand the differences and ensure that both positions are clearly defined within their teams. With a clear understanding of each role, organizations can create successful products that engage customers, drive revenue, and provide value to the business. 

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