1. Key Characteristics and Skills of a Product Manager

In this section, we will explore the essential characteristics and skills expected of a product manager (PM). These qualities are crucial for effectively managing products and leading teams.

Key Characteristics

1. Empathy

Empathy is perhaps the most important characteristic for any product manager. It is the ability to understand and share the feelings of others. Empathy allows a PM to deeply understand the problems and needs of customers, as well as the challenges faced by the internal team, including developers, designers, and other stakeholders. By understanding the impact of the product on different people, the PM can make more informed decisions and build stronger relationships.

For example, in situations where top-down decisions are made during crises, such as the COVID-19 pandemic, a PM with empathy will seek to understand the root problem driving those decisions and collaborate to find the best solution. Similarly, when asked about the timeline for a feature’s completion, an empathetic PM will probe deeper to understand the underlying concerns, such as fixed deadlines or expected outcomes, rather than just providing a date.

2. Communication

Communication is a critical skill for a product manager. Effective communication is a two-way street—it involves both speaking and listening. A PM must be able to communicate clearly with different audiences, including the engineering team, designers, stakeholders, customers, and shareholders. Each audience may require a different style of communication, whether it be written, verbal, or through presentations, and across various formats such as one-on-one meetings, video calls, or large group discussions.

3. Time Management

A product manager must be skilled at managing their time and prioritizing tasks. With a multitude of responsibilities—ranging from understanding customer needs and business requirements to creating product vision and strategies—24 hours often feels insufficient. The ability to distinguish between urgent and non-urgent tasks, and to focus on high-priority activities, is essential for ensuring that time is spent effectively and that the most critical problems are addressed.

4. Technological Awareness

Understanding new technologies and how they might impact the product is another key characteristic of a successful PM. This includes staying up to date with new development tools, frameworks, and databases, as well as being aware of how the product will be delivered to users across different platforms (e.g., computer, mobile, or wearable devices). A PM should be knowledgeable about the latest technological trends and how they can be leveraged to enhance the product.

5. Business Acumen

A product manager must have strong business skills and a clear understanding of how the company operates. This includes knowing how revenue is generated, the types of costs involved (fixed and variable), and how different departments within the company interact with the product. A PM needs to understand the broader business context to ensure that the product aligns with the company’s financial goals and strategic objectives.

6. Curiosity

An insatiable curiosity is vital for a product manager. Curiosity drives the PM to continuously learn more about the problems that need solving, the needs of the business, new product development methodologies, and emerging technologies. This constant desire to learn and improve is crucial for staying ahead in the fast-paced world of product management.

7. Domain Knowledge

Understanding the specific domain or industry of the product is essential. For example, if the product is focused on healthcare management, the PM should be familiar with the healthcare industry and its workflows. Similarly, at Conta Azul, a product management software company, some PMs had backgrounds as accountants, which helped them better understand the accounting needs of the product’s users. Domain expertise allows the PM to make more informed decisions and better understand the specific challenges and opportunities within the industry.

Data Skills

In addition to these seven characteristics, a product manager must be proficient in working with data. This includes having a basic understanding of SQL, knowing how to navigate spreadsheets, and using techniques from data science to extract insights from data. Being data-informed rather than data-driven is crucial—while data is a valuable tool for decision-making, it should be complemented by critical thinking, intuition, and qualitative inputs.

A product manager should be cautious of relying solely on data, as it can sometimes be biased or incomplete. Understanding the quality of the data, avoiding the trap of only measuring what is easy to measure, and being aware of local optima versus global optima are important considerations.

In some cases, the cost of analyzing all possible strategies may be so high that it’s more effective to implement a strategy, observe the results, and then iterate. This pragmatic approach can save time and resources, allowing the PM to learn quickly and adjust accordingly.

In summary, a successful product manager must possess a blend of empathy, communication skills, time management, technological awareness, business acumen, curiosity, domain knowledge, and data skills. These characteristics enable the PM to effectively lead their team, make informed decisions, and drive the product toward success.