6. Developing People in Product Leadership

Developing people is a critical responsibility for product leaders. In this section, we'll explore the key areas of focus for developing product managers (PMs) and how to guide them through the stages of their career.

Career Path in Product Management

To recap, the typical career path in product management begins with an Associate Product Manager (APM), responsible for specification and prioritization. The next step is Product Manager (PM), who handles specification, prioritization, and the vision and strategy for a product or feature. Beyond that is the Group Product Manager (GPM), who oversees multiple PMs and product groups, while the Chief Product Officer (CPO) is responsible for the vision and strategy of the entire company’s product portfolio.

Key Skills for Product Managers

As a product leader, one of your main tasks is to develop and nurture the skills of your team. There are several essential skills that every product manager should cultivate:

1. Empathy: The ability to understand and share the feelings of others is crucial for PMs. Empathy helps product managers understand customer needs but also extends to teammates, stakeholders, and even external partners. Empathy is not just about understanding users but also about recognizing the pressures and concerns of colleagues in other departments, the leadership team, and shareholders.

2. Communication: Effective communication is a vital skill for product managers. It involves clearly articulating ideas across various formats and audiences—whether technical or non-technical, large groups or one-on-one conversations. Communication is a two-way process; PMs must also be excellent listeners, which is closely tied to empathy.

3. Time Management: Product managers often face a wide array of tasks, so managing time efficiently is essential. Prioritization is key, and PMs need to focus on what drives the most significant results for the product and the business.

4. Understanding New Technologies: While PMs don’t need to be coders, it’s essential for them to understand the technologies that power their product. This includes knowing about the latest trends in development technologies, delivery platforms, and user interaction channels (e.g., web, mobile, smartwatches).

5. Business Knowledge: A strong understanding of the business side of the company is crucial for PMs. This means not just knowing how to build a product but understanding how it fits into operations, sales, marketing, finance, and legal frameworks.

6. Curiosity: PMs must constantly be learning and exploring new areas. Whether it’s learning more about the product domain, new technologies, or market trends, curiosity drives innovation and improvement.

7. Domain Expertise: A good product manager needs to understand the domain in which their product operates. For example, if you're managing a financial product, you need to understand the basics of finance and investment. If it’s an accounting product, you should grasp fundamental accounting concepts. Domain knowledge helps PMs make informed decisions and build better products.

8. Data Proficiency: Today, data is a critical aspect of product development. PMs need to be comfortable working with data, including knowing how to use SQL, work with spreadsheets, and have a basic understanding of data science techniques like clustering. The ability to make data-driven decisions is now an essential part of the PM toolkit.

Evaluating and Developing PMs

As a leader, evaluating the strengths and areas for development in each PM is essential. I like to start with a self-assessment where the PM evaluates themselves in each of the key skills above. Then, I compare this self-assessment with feedback from peers and other colleagues who work closely with the PM.

Once the evaluation is complete, I focus on the areas that need the most improvement and help the PM develop these skills. This could involve recommending relevant courses, providing mentorship, or giving them opportunities to work on projects that will help strengthen those areas.

Different Types of Product Managers

It’s also important to recognize that there are different types of PMs, and each may require specific skill sets. Beyond the classic PM, there are three additional types of product managers worth noting:

1. Data Product Manager (DPM): This role focuses on creating data products such as algorithms, insights, and machine learning models. DPMs work closely with data scientists and machine learning engineers to turn data into actionable products that provide value to the company or users.

2. Growth Product Manager (Growth PM): Growth PMs are responsible for driving user acquisition and growth strategies. They work closely with marketing teams and use techniques like SEO, A/B testing, and funnel optimization to increase the user base. At Lopes, we had both a growth squad and a Growth PM focused on customer acquisition.

3. Technical Product Manager (TPM): TPMs work on products or tools created by central teams that are used by other product teams. Examples include authentication and authorization systems, APIs, and one-click deploy systems. TPMs usually have a technical background and bridge the gap between engineering and product.

The Journey to Becoming a Great Product Manager

There is no shortcut to becoming a great product manager. As the author Malcolm Gladwell famously pointed out in his book "Outliers," it takes approximately 10,000 hours of deliberate practice to achieve mastery in any field. In product management, this means:

• Practicing Consciously: It’s essential to reflect on your experiences and learn from each situation.
• Having a Good Guide: A coach or mentor who can help steer your development is invaluable. They can point out pitfalls and guide you through complex situations.
• A Supportive Environment: Working in an environment that allows you to make mistakes and learn from them is crucial. PMs need the freedom to fail and grow from those experiences.

As a Head of Product, your role is to create an environment that fosters learning and growth. You need to be the guide or help your PMs find the right mentors. Encourage them to practice consciously and help them develop their skills through challenging projects.

Becoming a Great Head of Product

Just like becoming a great PM, the journey to becoming a great Head of Product is about delivering return on investment (ROI). A good Head of Product ensures that the company gets a solid return on its investment in the product development team. This doesn’t always mean immediate results, but there should be clear progress toward achieving that ROI.

To succeed in this role, you must leverage vision and strategy, develop your product managers, and effectively manage expectations across the organization. These skills are essential at every level, from GPM to CPO and VP of Product.

In conclusion, developing people is one of the most important aspects of product leadership. By focusing on key skills like empathy, communication, business knowledge, and data proficiency, product leaders can guide their teams to success. And as you move up the leadership ladder, your primary responsibility remains ensuring the company’s investment in product development generates meaningful returns.