Product Management: Connecting Value and Viability

Product Management: Connecting Value and Viability

In the world of product management, the ultimate goal is to create great products that solve real problems for users and customers. These products not only meet the needs of our target audience, but also align with the goals and objectives of our business. However, it's important to understand that being a product manager goes beyond just owning the product. It involves a wide range of responsibilities and requires a deep understanding of both the value and viability of the product.

If you find yourself spending most of your time on project management tasks, chances are you are part of a feature team or delivery team rather than an empowered product team. Feature teams focus on delivering output, while product teams are driven by delivering outcomes. And let's face it, delivering outcomes is much harder.

To truly excel as a product manager, you must embrace the principles of strong product management. One of the key aspects of this is product discovery. Instead of simply being given features to build, empowered product teams are given problems to solve. Product discovery is the process through which we uncover solutions that are valuable, usable, feasible, and viable. It's about understanding the needs and desires of our users and customers, and finding innovative ways to meet those needs.

In the midst of this journey, it's crucial to recognize that the potential value of a piece of content or a new feature can usually be determined fairly quickly. By developing a solid foundation in the principles of strong product management, you'll be able to assess the potential value of an idea and make informed decisions about whether to pursue it or not.

Now, let's shift gears and dive into the world of finance and shares. When a corporation issues shares in exchange for payment, the purchaser becomes a stockholder. These shares are referred to as issued and outstanding. They are recorded in the corporation's stock ledger as owned shares. On the other hand, when a corporation grants someone the right to buy shares in the future, such as granting stock options to employees, these shares are not yet considered issued and outstanding. They do not appear on the stock ledger, and the holder does not become a stockholder.

However, if the stock option is exercised, the shares then become issued and outstanding, and the holder officially becomes a stockholder. The distinction between issued and outstanding shares and fully diluted shares is important, especially when calculating ownership. The unallocated option pool is not considered issued and outstanding. Whether a company calculates ownership based on the number of issued and outstanding shares or on a fully diluted basis depends on the context of the calculation.

To ensure clarity and avoid misunderstandings, it is crucial for all parties involved to clearly express their expectations and use the same method of calculation when discussing ownership. By doing so, everyone can have a shared understanding of the company's ownership structure and make informed decisions based on accurate information.

In conclusion, product management and finance may seem like two different worlds, but they both share the common thread of value and viability. As a product manager, your responsibility is to ensure that what gets built is not only valuable to the users and customers but also viable for the business. By embracing the principles of strong product management, you can navigate the complexities of product discovery and deliver outcomes that truly make a difference.

Actionable Advice:

1. Focus on problem-solving: Instead of just building features, shift your mindset to focus on solving real problems for your users and customers. This will help you create products that are truly valuable and meet their needs effectively.

2. Embrace product discovery: Invest time and effort in understanding your users' needs and desires. Engage in product discovery to uncover innovative solutions that are not only usable but also feasible and viable. This will give you a competitive edge in the market.

3. Communicate clearly: Whether you're discussing ownership calculations or product requirements, clear communication is vital. Ensure that all parties involved have a shared understanding of expectations and methods of calculation. This will prevent misunderstandings and facilitate informed decision-making.

By incorporating these actionable advice into your product management journey, you can enhance your skills and drive success in delivering valuable and viable products. Remember, it's the intersection of value and viability that truly defines great products.