The Future of Product

The product management landscape is rapidly evolving, and the year 2024 promises to be an interesting moment for the industry. In a recent podcast episode, Carlos Gonzalez d.v. Ambrosia, the founder and CEO of Product School, discussed the key trends that are shaping the future of product management.

Check out the short video below or read on to delve into these trends and explore how they are shaping the industry.

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📢 The Rise of the Chief Product Officer

The podcast episode starts by highlighting the significant shift in the role of product management over the past decade. The rise of the chief product officer (CPO) is identified as the main catalyst for this transformation. It is mentioned that over one-third of Fortune 100 companies already have a CPO, and this number is expected to increase to over 50 by the end of 2024. This shift is attributed to the fact that companies across various industries, including oil and gas, financial services, and healthcare, are investing in technology and becoming software companies. The role of the CPO is seen as crucial in driving revenue growth and positioning product teams as strategic functions within organizations.

🔧 Tools and Education in Product Management

The podcast emphasizes the importance of education and tools in the field of product management. It is mentioned that there has been a significant increase in education programs and initiatives focused on product management, both within universities and companies. The emergence of product schools and associate product manager programs, such as Google's Associate Product Manager Program, is highlighted as evidence of the growing emphasis on product education. In terms of tools, the podcast mentions the shift from using tools created for other professionals, like Photoshop, to using specialized tools for product management tasks. Examples of such tools include Figma for prototyping and various no-code or low-code platforms that enable product managers to build products without a technical background.

💰 Product as a Revenue Generator

The podcast discusses the changing perception of Product as a revenue generator rather than just a cost centre. It is mentioned that Product is now being perceived as a strategic function that can directly contribute to revenue growth. The podcast highlights the shift from product reporting to marketing or technology departments to having a seat at the table and being accountable for revenue generation. This shift is attributed to the digital transformation of companies, the availability of cost-efficient infrastructure like cloud services, and the ability to leverage websites and mobile apps for direct revenue generation. The podcast emphasizes the need for product teams to balance short-term revenue generation with long-term value creation for users.

🌟 Product's Role in Revenue Growth

The podcast delves deeper into the role of Product in revenue growth and highlights the concept of product-led growth (PLG). It is mentioned that Product can be a distribution channel and can drive revenue by increasing the adoption, retention, and expansion of existing customers. The podcast emphasizes the importance of product teams collaborating with go-to-market teams, including marketing, sales, and customer support, to leverage Product as an inbound channel. Examples of companies successfully implementing PLG strategies are mentioned, such as Airbnb and their focus on creating value for users upfront to make marketing channels more cost-efficient. The podcast also highlights the role of product marketing in enabling successful go-to-market strategies.

👥 The Expansion of Product Teams

The podcast discusses the expansion of product teams and the increasing intersection of Product with other functions within organizations. It is mentioned that product teams are no longer limited to product managers and that there is now a defined career ladder within product management, including roles such as associate product manager, product manager, senior product manager, group director, VP, and CPO. It also highlights the parallel track for individual contributors who want to continue growing without transitioning into management roles. The emergence of new roles within the product team, such as product marketing, is mentioned as a way to support the increasing relationships with other functions. The podcast emphasizes the need for product teams to collaborate effectively with sales, customer success, data, research, and other teams to drive successful product outcomes.

📚 Training and Retention of Top Product Talent

The podcast addresses the challenges of acquiring and retaining top product talent. It is mentioned that around 60% of product managers surveyed expressed a likelihood of leaving their companies within the next two years. The podcast emphasizes the importance of training and development in retaining top talent. Companies are investing more in training and empowering product leaders to make decisions about the type of training that works best for their teams. But it highlights the need for specific, custom, and advanced training that drives business outcomes. The importance of retaining top talent is emphasized, as the cost of acquiring and ramping up a new product manager is expensive. The podcast suggests that investing in training is a more sustainable strategy for retaining talent.

What Can I Do With This Information?

There are several key takeaways from the podcast transcript that you can apply to your role:

1. Embrace the role of revenue generation: Recognize that product management is not just about adding user value, but also about driving revenue growth. Understand the importance of balancing short-term revenue generation with long-term value creation for users. Look for opportunities to leverage your product as a distribution channel and collaborate closely with go-to-market teams to maximize revenue potential.

2. Stay informed about industry trends and tools: Stay up to date with the latest trends and tools in product management. Continuously educate yourself on new methodologies, frameworks, and tools that can enhance your product management skills. Explore specialized tools designed for product managers, such as Figma for prototyping or no-code/low-code platforms for building products without a technical background.

3. Expand your skill set and career opportunities: Understand the career ladder within product management and identify opportunities for growth. Consider pursuing advanced roles within the product team, such as senior product manager, group director, or VP. Alternatively, if you prefer to remain an individual contributor, explore roles like principal product manager or lead product manager that allow you to continue building and staying close to the product.

4. Foster collaboration with other functions: Recognize the increasing intersection of product with other functions within organizations. Build strong relationships with go-to-market teams, including marketing, sales, and customer support. Collaborate closely with these teams to leverage product as an inbound channel and drive successful go-to-market strategies. Embrace the role of product marketing in enabling effective product launches and positioning.

5. Invest in training and development: Recognize the importance of training and development in retaining top product talent. Advocate for training programs that are specific, custom, and advanced, and that drive business outcomes. Seek opportunities to enhance your own skills and knowledge through training programs, workshops, or certifications. Consider the specific needs of your product team and work with your business to provide training opportunities that align with those needs.

By applying these insights to your role as a product manager or leader, you can position yourself as a strategic revenue driver, foster collaboration across functions, and invest in your own professional growth and development.

🎙️ Listen to the full episode: here 

⏰ Timestamps: Timestamps:

• 00:00:35 - The Rise of the Chief Product Officer

• 00:02:42 - Tools and Education in Product Management

• 00:05:24 - Product as a Revenue Generator

• 00:07:19 - Product's Role in Revenue Growth

• 00:10:13 - The Expansion of Product Teams

• 00:16:41 - Training and Retention of Top Product Talent

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