Hello,
This is Oleg, CEO of GoPractice.
Many people assume that managing products and creating products is practically the same thing. Or that every product manager has to be able to create new products.
In reality, managing existing products and creating new ones from scratch require distinct skill sets and mindsets.
Here is my explanation.
Product management is built on structure, logic, and expertise
Product management implies clear expectations, decision-making logic, and a set of rituals necessary to achieve results.
Developing an existing product relies heavily on incremental improvements in user experience through problem solution. The value created for users is then converted into profits for the business.
You might argue that product managers often operate with a degree of uncertainty and sometimes lack structure, while their plans frequently change or fall short. They also seem to be constantly busy with testing hypotheses, as if they were unsure about what they should do and why.
It is true. That is so because it IS the essence of product management. Product managers’ work focuses on reducing the level of uncertainty within their area of responsibility. Finding the necessary levers to improve the product both for users and for the business is the key.
Creating new product: magic and intuition
While product management skills can be helpful in creating new products, they are not the key factor.
The success of a new product largely depends on the unique skills and expertise of the founders needed to solve a specific problem, rather than their product management background.
Only after achieving product/market fit—when founders’ intuition and market understanding become less and less relevant—does the need for product managers emerge. The need for those who can bring system and logic into the work done.
You can be an excellent product manager but it won’t help you see the potential behind creating GPT models. This requires a different skill set. However, when a technology and its related product succeed, as we've seen with ChatGPT, that's when product expertise becomes crucial.
Different skill set
Product management involves risk management, rationality, and structure. This job required a lot of planning, constant data/feedback analysis, effective communication, and a systematic approach towards improving the things one is working on.
On the other hand, creating products requires a willingness to risk, tolerate uncertainty, and perseverance. The success of an innovative product usually stems from a combination of some lucky intuitive steps, numerous experiments, and a high risk tolerance.
Do product management skills help with building products? Yes, they do. The ability to closely analyze feedback and data, perform qualitative research, find product insights, and battle chaos—all of it helps to decrease uncertainty and maximize the chances of success.
Is that all it takes to make successful products? Hardly. If that were the case, we’d only see big corporations driving innovation since they can afford to hire the best talent available. However, more often than not the most innovative products are born within small teams with rather limited resources.
I can’t say that it’s easy, or even possible, to teach someone how to consistently create successful, innovative products. But I know for a fact that you can improve your product management skills and knowledge. In our Data-Driven Product Management Simulator, you can enhance the quality of your decisions and your value to the company—all through an interactive storytelling format.
You can get a free trial of the course—no credit card required. Just reply to this message, and I’ll set it up for you.
Yours,
Oleg
