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CSSE 490:

Fundamentals of Product Management

Week 1: Intro to PM

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Agenda

  • Syllabus review
  • Intro and background
  • The “who, what, why” of Product Management
  • “Jobs To Be Done” and product discovery
  • Brainstorming activities

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Who am I?

  • 2014 RHIT CPE/CS grad
  • First PM at Firebase
  • PM @ Google until 2019
  • Head of Product @ Stedi
  • PM @ GitHub on Codespaces/Copilot
  • Director of Product @ Crusoe

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Syllabus Review

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Course goals

Should you choose to, you should be able to get a job in PM. This means:

  • Understanding users, their jobs to be done/critical journeys, and the markets they exist in
  • Evaluating products, strategies, and business models to have an idea of which will win
  • Crafting measurable success metrics that are in line with business objectives
  • Being able to effectively communicate with x-functional stakeholders (e.g. marketing, finance, legal, engineering, design)
  • Competently and confidently pitching your product to any audience

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Course overview*

  • Week 1: Intro to PM
  • Week 2: Products, markets, and product/market fit
  • Week 3: Business models and go-to-market
  • Week 4: Communication and stakeholder management
  • Week 5: Design and user research
  • Week 6: Metrics
  • Week 7: Money, money, money
  • Week 8: Keeping it legal
  • Week 9: Working with engineering
  • Week 10: Getting a job in product management

* subject to change ;)

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Warning: this is not a typical course

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There are no formulas

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There are no right answers

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Why am I here?

  • Students aren’t exposed to career paths outside “software engineer”
  • Teaching is the best way to learn a skill
  • I’ve fallen into many pits, and I want to show you how to avoid them

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I want to give you money!

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Why are you here?

  • You once worked with a PM and you’re not really sure why they existed
  • You’ve heard of PM but you’re not sure what it is and want to learn more
  • You want to become a PM but aren’t sure how to break into it
  • You want to improve your PM skills
  • You have a business idea and want to make it a reality
  • …?

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The who, what, and why of PM

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Most products fail

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Why do PMs exist?

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The best tech doesn’t always win

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The best product wins*

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Case study: Mongo vs Rethink

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Case study: Mongo vs Rethink

...the product decisions were entirely within our control. We wanted to build an elegant, robust, and beautiful product, so we optimized for the following metrics:

  • Correctness. We made very strict guarantees, and fulfilled them religiously.
  • Simplicity of the interface. We took on most of the complexity in the implementation, so application developers wouldn't have to.
  • Consistency. We made everything from the query language, to the client drivers, to cluster configuration, to documentation, to the marketing copy on the front page as consistent as possible.

It turned out that correctness, simplicity of the interface, and consistency are the wrong metrics of goodness for most users.

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Case study: Mongo vs Rethink

The majority of users wanted these three trade-offs instead:

  • Timely arrival. They wanted the product to actually exist when they needed it, not three years later.
  • Palpable speed. People wanted RethinkDB to be fast on workloads they actually tried, rather than "real world" workloads we suggested. For example, they'd write quick scripts to measure how long it takes to insert ten thousand documents without ever reading them back. MongoDB mastered these workloads brilliantly, while we fought the losing battle of educating the market.
  • A use case. We set out to build a good database system, but users wanted a good way to do X (e.g. a good way to store JSON documents from hapi, a good way to store and analyze logs, a good way to create reports, etc.)

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Case study: Mongo vs Rethink

It's not that we didn't try to ship quickly, make RethinkDB fast, and build the ecosystem around it to make doing useful work easy. We did. But correct, simple, and consistent software takes a very long time to build. That put us three years behind the market.

By the time we felt RethinkDB satisfied our design goals and we were confident enough to recommend it to be used in production, almost everyone was asking ‘how is RethinkDB different from MongoDB?’ We worked hard to explain why correctness, simplicity, and consistency are important, but ultimately these weren't the metrics of goodness that mattered to most users.

RethinkDB: why we failed

gist.github.com/ramalho/93b87e961b6e019be8e1f6f82864b6f9

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Technology is a means to an end

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Technology is not the end itself

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What is product management?

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PM is an overloaded term

  • Product Manager: what/why (discovery, prioritization, justification)
  • Project Manager: how (delivery, coordination)
  • Program Manager: executes on broader initiatives (N projects)

Made more confusing by overlap in the usage (e.g. Microsoft’s product folks are called Program Managers, and Google’s Project Managers are called Technical Program Managers)

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The job of a PM is to discover problems and deliver solutions to customers

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Analogy time: PMs are farmers

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Farmer “does” and “doesn’ts”

Does:

  • Decides what to plant
  • Decides when to plant, harvest
  • Ensures sufficient resources
  • Reading the weather
  • Sows seeds, weeds, etc.

Doesn’t:

  • Actually grow

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PM “does” and “doesn’ts”

Does:

  • Decides what to build
  • Decides when to launch
  • Ensures sufficient resources
  • Understanding market conditions
  • Files bugs, maintains backlog, etc.

Doesn’t:

  • Actually build the product

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PMs are interfaces

Customers

PM

Business

Needs

Pitches, corrals, etc.

Products

Objectives

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PMs are hubs

Design

PM

Engineering

Sales

Marketing

Operations

Legal

Finance

Leadership

Testing/QA

Support

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Note: PM differs based on organization size

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Why would I be a product manager?

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Why would I want to be a PM?

  • Control: you enjoy being able to steer the ship
  • Difficulty: you enjoy a challenge
  • Breadth: you enjoy technology as well as business/finance/law
  • Comp: it pays well (~100k/year)

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Who are PMs?

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The product mindset

  • Curious
  • Creative
  • Determined
  • Empathetic
  • Optimistic
  • Persuasive

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What is “product vision”?

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Where do products come from?

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Product: Problem

Solution

Insight

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Product: Need

Hypothesis

Reason

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Everything starts with user needs

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Example user needs

I need a place to stay in a city, and I want to stay like a local

I need to commute to the office, but I don’t have a car

I need office space for my company, but can’t negotiate a lease

I need to make a healthy dinner, but I can’t cook

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Users “hire” products to fill their needs

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Products have “Jobs To Be Done

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“The company started by segmenting its market both by product (milkshakes) and by demographics (a marketer's profile of a typical milkshake drinker). Next, the marketing department asked people who fit the demographic to list the characteristics of an ideal milkshake (thick, thin, chunky, smooth, fruity, chocolaty, etc.). The would-be customers answered as honestly as they could, and the company responded to the feedback. But alas, milkshake sales did not improve.”

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“[Christensen] approached the situation by trying to deduce the ‘job’ that customers were ‘hiring’ a milkshake to do. First, he spent a full day in one of the chain's restaurants, carefully documenting who was buying milkshakes, when they bought them, and whether they drank them on the premises. He discovered that 40 percent of the milkshakes were purchased first thing in the morning, by commuters who ordered them to go.

The next morning, he returned to the restaurant and interviewed customers who left with milkshake in hand, asking them what job they had hired the milkshake to do.”

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“‘Most of them, it turned out, bought [the milkshake] to do a similar job,’ he writes. ‘They faced a long, boring commute and needed something to keep that extra hand busy and to make the commute more interesting. They weren't yet hungry, but knew that they'd be hungry by 10 a.m.; they wanted to consume something now that would stave off hunger until noon. And they faced constraints: They were in a hurry, they were wearing work clothes, and they had (at most) one free hand.’”

https://hbswk.hbs.edu/item/clay-christensens-milkshake-marketing

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Users can be over OR under served

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Overserved examples

  • Tons of breakfast foods (bagels, donuts, coffee, milkshakes, etc.)
  • Lots of hotel chains, but most people don’t have status or need amenities
  • Many people own cars, most cars do nothing for 95% of their lifetime
  • Too much content, not appropriately aggregated or relevant
  • Lots of grocery stores, online recipes, restaurants, etc.

Often very easy to tell users who are overserved (mature markets)

Overserved users often require little education (they know their problems)

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Underserved examples

  • Messy, not filling, unhealthy, too difficult to consume, etc.
  • No way to “stay like a local” or travel to places “off the beaten path”
  • Taxi cabs and public transit are dirty, slow, etc.
  • Lack of relevant content, difficulty keeping in touch with friends
  • No healthy options, too time intensive

Underserved users have a key issue: nobody knows they’re underserved!

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Users can be under AND over served

I want to stay at a hotel in a foreign city

I want to feel like I belong when I go on vacation

I want to commute to work

I want to show up at work without having to worry

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Different jobs for different users

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Jobs have both functional and emotional pieces

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What about well served users?

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What makes a good problem?

  • Popular
  • Growing
  • Urgent
  • Expensive
  • Mandatory
  • Frequent

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Where do you get ideas?

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Read the news, daily

Pick one from each category:

  • National news (NYT, WSJ, WaPo, etc.)
  • International news (BBC, The Economist, SCMP, etc.)
  • Finance news (FT, Bloomberg, etc.)
  • Tech press (Tech Crunch, etc.)

Aggregators are great (Reddit, Hacker News, Product Hunt)!

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I also strongly recommend newsletters/blogs

  • Money Stuff
  • Stratechery
  • Term Sheet
  • Ben Evans’ Newsletter
  • Unintended Consequences

Don’t be afraid to branch out beyond your comfort zone

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Talk to a lot of people

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Ask “why?” a lot

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What is the hardest part of doing X?

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When was the last time you had X?

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Why was X hard?

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What have you used to solve X?

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What don’t you love about X?

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Have hobbies, do them socially

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Get warm introductions

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Reach out cold (Twitter, email, etc.)

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Brainstorming exercises

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For next week

  • Read “Good PM, Bad PM
  • Five (5) problems, solutions, and insights
  • Why you think these are “good problems”

E.g.:

  • I am bad at keeping in touch with my friends, I want to connect them to each other
  • I’ll build a personal CRM tool that notifies me about connections between friends
  • Proactive notifications will make this easier and therefore connect me