Innovation accounting for teams, managers, and strategy – for product managers Today we are talking about measuring innovation effectiveness in organizations. To help us is the person who has written the book on the topic, Innovation Accounting, Esther Gons. Esther is the CEO of GroundControl, an Innovation Accounting software platform to help corporate ventures with the development of new […]

365: Innovation accounting metrics to improve product management – with Esther Gons

Welcome to Product Mastery Now, where you learn the 7 knowledge areas for product mastery. We teach product managers, leaders, and innovators the product management practices that elevate your influence and create products your customers love as you move toward product mastery. To see all seven areas go to https://productmasterynow.com. Hosted by Chad McAllister, PhD, product management professor and practitioner.

Business

Investing

Careers

Management & Marketing

Business News

Shopping

Marketing

Management

What product managers need to elevate their careers
Watch on YouTube

TLDR
In this episode, I share insights on developing essential skills for product management and leadership. I explain how mastering the seven knowledge areas of product management outlined by the Product Development and Management Association (PDMA) can help product managers elevate their careers and create products that customers love. I explore the key objectives and challenges faced by product managers and offer both easy-to-implement and harder-to-implement takeaways to enhance product management practices. By focusing on customer-centric product development, strategic alignment, portfolio management, project selection, and product life cycle management, product managers can sharpen their skills and drive successful product innovation.
Introduction
In today’s fast-paced business world, product management plays a pivotal role in creating products that not only captivate customers but also drive business success. As a product manager or leader, continuously developing and refining your skills is essential for career growth and making a lasting impact. This article summarizes key concepts and takeaways on developing essential skills for product management and leadership.
On the Product Mastery Now podcast, we simplify the seven key areas that form the foundation of the Product Management Body of Knowledge. By mastering these areas, you can unlock your full potential as a product manager and lead your organization to new success.
The Seven Knowledge Areas from PDMA
The Product Development and Management Association (PDMA) has identified seven critical knowledge areas that are essential for product management success. These areas have been extensively researched and curated since 1976, forming the bedrock of the product management body of knowledge. Let’s take a closer look at each of these areas:

Product Strategy: Developing a clear and compelling product vision and roadmap that aligns with the organization’s goals and customer needs.
Portfolio Management: Managing the mix of products and projects to optimize resource allocation and maximize business value.
New Product Development Process: Implementing a structured approach to guide products from ideation to launch and beyond.
Culture, Teams, and Leadership: Fostering a collaborative and innovative environment that empowers teams to excel.
Tools and Metrics: Leveraging data-driven insights and tools to make informed decisions and measure success.
Market Research: Gathering and analyzing customer and market data to identify opportunities and validate product concepts.
Life Cycle Management: Managing products throughout their entire life cycle, from introduction to growth, maturity, and decline.

By dedicating yourself to mastering these knowledge areas, you’ll develop the skills and confidence needed to create products that customers love and drive business success.
Objectives and Challenges in Product Management
As a product manager, you’ll face many objectives and challenges in your role. Some of the key objectives you’ll strive to achieve include:

Launching products that customers can’t resist
Meeting and exceeding revenue and profit expectations
Aligning your efforts with the organization’s strategic objectives
Accelerating time-to-market for new products

However, the path to achieving these objectives is often laden with challenges. Common hurdles that product managers face include:

Maintaining a laser focus on the customer
Juggling project deadlines and competing priorities
Overcoming silos and fostering cross-functional collaboration
Ensuring consistency and discipline in product development processes
Aligning product initiatives with overarching business needs
Understanding the underlying rationale behind established processes
Building a strong foundation of product management skills

By proactively addressing these challenges and keeping your objectives in sight, you can pave the way for success in your product management career.
Easy-to-Implement Takeaways

Throughout the podcast episode, I’ll share several easy-to-implement takeaways that you can start applying today to enhance your product management practices and drive better results. Let’s dive into each of these takeaways:
1. Lead with the Problem, Not the Solution
When discussing your work, shift your focus from merely describing your role or the solution you’re working on to highlighting the problem you’re solving. For example, instead of saying, “I’m a software programmer using C++ and working with AI models,” try something like, “I help people improve their health by providing them with tools to understand how their body reacts to supplements.” By leading with the problem, you can cultivate a customer-centric mindset and foster a culture of innovation within your organization.
2. Start with Strategy
Ensure that you have a deep understanding of your organization’s strategy and how your product work aligns with its strategic objectives. This alignment is crucial for driving business success and demonstrating the value of your product management efforts. Take the time to familiarize yourself with your company’s strategic goals and consider how your product initiatives contribute to achieving those objectives.
3. Engage with Customers
Stay connected to your customers by actively seeking out and leveraging existing customer insights. Collaborate with team members who regularly interact with customers, such as sales, customer support, or user research. By tapping into their knowledge and experiences, you can gain valuable insights into customer needs, preferences, and pain points, enabling you to make more informed product decisions.
4. Share High-Value Resources
Foster a culture of collaboration by actively sharing high-value resources with your team and colleagues. These resources could include market research reports, industry analyses, or professional development materials. By promoting the exchange of information and insights, you can encourage cross-functional collaboration, break down silos, and ensure that everyone has access to the knowledge they need to make data-driven decisions.
5. Clarify Who the Customer Is
Be precise and consistent when referring to your target customers. Use personas to create vivid representations of your key customer segments, making it easier for everyone in the organization to understand and empathize with their needs. By clarifying who your customers are and using a shared language to describe them, you can align your team’s efforts and make product decisions that truly resonate with your target audience.
Harder-to-Implement Takeaways
In addition to the easy-to-implement takeaways, I’ll provide some more challenging concepts that require a deeper understanding of the knowledge areas and close collaboration with cross-functional teams. Let’s examine these harder-to-implement takeaways:
1. Portfolio Management
Gain a comprehensive understanding of your organization’s current product portfolio structure and analyze how individual projects align with that portfolio. Consider employing different approaches to construct and manage your portfolio, such as:



Portfolio Construction Approach
Description


Category Buckets
Group projects into categories such as new products, enhancements, and maintenance


Innovation Landscape
Categorize projects based on their level of technological change and business model impact


Three Horizons
Classify projects as core (Horizon 1), adjacent (Horizon 2), or transformative (Horizon 3)



By carefully constructing and managing your portfolio, you can ensure optimal resource allocation and maximize the business value delivered by your product initiatives.
2. Project Selection
Establish and communicate clear criteria for evaluating and selecting product projects. These criteria should be firmly rooted in your organization’s strategic objectives and prioritize projects that deliver the greatest value to customers and the business. By implementing a rigorous project selection process, you can ensure that your team is working on the most impactful initiatives and avoid spreading resources too thin.
3. Doing More with Less
In a world of limited resources, it’s crucial to focus on taking on fewer but more important projects. Ruthlessly prioritize initiatives that deliver the most value and resist the temptation to overload your team with too many simultaneous projects. By doing more with less, you can ensure that your team is laser-focused on the projects that truly move the needle and avoid the pitfalls of overextension.
4. Managing the Product Life Cycle
Develop a deep understanding of where each product in your portfolio is in its life cycle. Ensure that you have a balanced mix of products across the different stages:



Product Life Cycle Phase
Description


Introduction
Product is launched into the market


Growth
Product experiences increasing sales and market share


Maturity
Product reaches peak market share and sales growth slows


Decline
Product experiences declining sales and may be considered for retirement



By actively managing your products throughout their life cycles, you can maintain a healthy product portfolio and ensure a steady stream of new revenue sources as older products reach maturity and decline.
5. Maximize the Benefit of a Product Process
Clearly define and communicate your organization’s product development process, ensuring that everyone understands the purpose and value of each stage. Be open to modifying the process based on project risk and complexity, avoiding unnecessary bureaucracy and enabling faster time-to-market for low-risk initiatives. By optimizing your product development process, you can strike the right balance between structure and agility, enabling your team to innovate quickly while maintaining the necessary controls.
Conclusion
Developing essential skills for product management and leadership is an ongoing journey that requires dedication, curiosity, and a willingness to learn. By focusing on the seven knowledge areas outlined by the PDMA and applying the takeaways shared here, you can elevate your product management game and create products that truly resonate with customers.
Remember to lead with the problem, align your efforts with organizational strategy, engage with customers, share valuable resources, and clarify who your target audience is. Embrace the harder-to-implement concepts, such as portfolio management, project selection, doing more with less, managing product life cycles, and optimizing your product development process.
Embrace your unique talents, pursue your passions, and let your creativity shine as you navigate the exciting world of product management. With the right skills, mindset, and determination, you have the power to create products that leave a lasting impact and shape the future of your organization.
Useful links:

Special Offer: Unlock a 30% discount on the Rapid Product Mastery training program using the code “podcast” at productmasterynow.com/rpm
Check out the 2024 Product Development and Management Body of Knowledge by Allan Anderson, Chad McAllister, and Ernie Harris

Innovation Quote
“Don’t let anyone rob you of your imagination, your creativity, or your curiosity. It’s your place in the world; it’s your life. Go on and do all you can with it, and make it the life you want to live.” – Mae Jemison
Application Questions

How can you reframe your product management work to focus on the problems you’re solving rather than just the solutions you’re building? What impact can this shift in perspective have on fostering a culture of innovation within your team?
What steps can you take to ensure that your product initiatives are tightly aligned with your organization’s strategic objectives? How can you communicate this alignment to secure buy-in and support from key stakeholders?
How can you establish a regular cadence of collaboration with cross-functional teams to gather and share valuable customer insights and market intelligence? What processes or tools can you put in place to facilitate this exchange of information?
What criteria would you use to evaluate and prioritize product projects within your portfolio? How can you ensure that these criteria are aligned with your organization’s goals and customer needs?
How can you streamline your product development process to focus on the most impactful initiatives and accelerate time-to-market? What steps can you take to identify and eliminate unnecessary bureaucracy and red tape?

Chad’s Bio

Chad McAllister, PhD, is a product management professor, practitioner, trainer, and host of the Product Mastery Now podcast. He has 30+ years of professional experience in product and leadership roles across large and small organizations and dynamic startups, and now devotes his time to teaching and helping others improve. He co-authored “Product Development and Management Body of Knowledge: A Guide Book for Product Innovation Training and Certification.” The book distills five decades of industry research and current practice into actionable wisdom, empowering product professionals to innovate and excel. Chad also teaches the next generation of product leaders through advanced graduate courses at institutions including Boston University and Colorado State University and notably re-engineered the Innovation MBA program at the University of Fredericton, significantly broadening its impact. Further, he provides online training for product managers and leaders to prepare for their next career step — see https://productmasterynow.com/.
Thanks!
Thank you for taking the journey to product mastery and learning with me from the successes and failures of product innovators, managers, and developers. If you enjoyed the discussion, help out a fellow product manager by sharing it using the social media buttons you see below.

494: Developing Skills in Product Management and Leadership – with Chad McAllister, PhD


How product managers can master product culture and teams
Watch on YouTube

TLDR
In this episode, I dive into the seventh knowledge area of product mastery: culture and teams. We explore the importance of fostering an innovation culture, understanding team dynamics, and navigating product teams’ common challenges. Key takeaways include:

The impact of organizational culture and climate on product success
Factors that contribute to a thriving innovation culture
Characteristics of high-performing product teams
Strategies for resolving conflicts and promoting collaboration
The importance of strategic alignment, engagement, and empowerment in product teams

I also provide practical tips for assessing and improving your team’s performance, as well as resources for continued learning and growth in product management and product development.
Understanding and Fostering an Innovation Culture
Culture is the foundation of successful product innovation. It encompasses the shared beliefs, values, and expectations of people within an organization. Climate, on the other hand, refers to the localized characteristics in a specific work environment, such as a product team or group.
Several factors influence team climate, including:

Leadership approach and quality
Communication frequency and style
Task responsibilities and workload
Trust and autonomy among team members
Recognition and rewards at both individual and team levels
Opportunities for advancement and growth

To create a thriving innovation culture, organizations should focus on:

Clearly communicating strategic and innovation goals across all levels
Accepting failures as learning opportunities
Recognizing and rewarding individual and team performance in support of innovation goals
Considering both functional capability and cultural fit when making hiring decisions
Ensuring clear and consistent internal and external communications
Encouraging constructive conflict to support idea generation and problem-solving
Providing engaging work and encouraging professional and personal growth

A great example of a company with a strong innovation culture is 3M. They practice “customer-inspired innovation,” connecting with customers to identify their needs and leveraging 3M’s capabilities to develop unique, proprietary, and sustainable solutions.

The Fundamentals of Effective Teams
A team is a small group of individuals with complementary skills who are committed to a common purpose, set of performance goals, and approach for achieving those goals. They hold themselves mutually accountable for their progress and success.
Product teams are typically cross-functional, consisting of individuals from various functions such as product management, engineering, design, marketing, and finance. Cross-functional teams offer several benefits, including:

Improved speed of product development
Increased probability of product success
Enhanced problem-solving capabilities
Greater adaptability to changing market conditions

Navigating Common Team Challenges
Conflict is a natural part of innovation projects due to the diverse working styles and priorities of team members. High-performing teams view conflict as a positive force for achieving desired results and leveraging the strengths of all involved.
The Thompson-Killman model provides five approaches to conflict resolution based on levels of cooperativeness and assertiveness:



Approach
Cooperativeness
Assertiveness
Description




Avoiding
Low
Low
Withdrawing from the problem, leaving it unresolved


Accommodating
High
Low
Yielding to others to maintain harmony


Compromising
Moderate
Moderate
Seeking a middle ground, often seen as a lose-lose solution


Competing
Low
High
Directing the outcome, disregarding others’ opinions


Collaborating
High
High
Engaging in dialogue to find a win-win solution



Collaborating is generally considered the most effective approach for high-performing product teams, as it involves a high degree of concern for both others and oneself, leading to better problem-solving and outcomes.
Characteristics of High-Performing Product Teams
Successful product teams exhibit strategic alignment, engagement, and empowerment. They share ten essential characteristics:

Clearly defined common goals focused on a single purpose
Strong leadership that encourages involvement and shared roles
Valuing and acknowledging all contributions
Open communication and effective relationship-building
Empowered decision-making and problem-solving
Effective team processes with clear roles and responsibilities
Mutual respect, integrity, and trust among team members
Respect for differences and the ability to disagree constructively
Effective conflict management through collaboration
Continuous learning and improvement

Assessing and Improving Your Team’s Performance
To assess your product team’s performance, rank each of the ten characteristics on a scale of 1-10 (with 10 being the highest). Use this scorecard to identify areas for improvement, focusing on open communication, trust, and effective conflict management.
Reflect on your best and worst team experiences to gain insights into what makes a team successful. Emphasize the positive elements and work to minimize the negative ones in your current and future product teams.
Conclusion
Mastering product innovation requires a deep understanding of culture, teams, and the factors that contribute to their success. By fostering a supportive innovation culture, building high-performing cross-functional product teams, and continually investing in personal and professional growth, product managers can lead their organizations to develop groundbreaking products that delight customers and drive business success.
Useful links:

Special Offer: Unlock a 30% discount on the Rapid Product Mastery training program using the code “podcast” at productmasterynow.com/rpm
Check out the 2024 Product Development and Management Body of Knowledge by Allan Anderson, Chad McAllister, and Ernie Harris

Innovation Quote
“When all think alike, then no one is thinking.” – Walter Lippmann
Culture & Teams Application Questions

How would you describe your organization’s innovation culture? What steps can you take to foster a more supportive environment for product innovation and product development?
Think about your current product team. Which of the ten characteristics of high-performing teams are your strengths, and which areas need improvement?
Reflect on a recent conflict within your team. Which conflict resolution approach was used, and how effective was it? How might a collaborative approach have changed the outcome?
What are some strategies you can employ to promote open communication, trust, and effective conflict management within your product team?

Chad’s Bio

Chad McAllister, PhD, is a product management professor, practitioner, trainer, and host of the Product Mastery Now podcast. He has 30+ years of professional experience in product and leadership roles across large and small organizations and dynamic startups, and now devotes his time to teaching and helping others improve. He co-authored “Product Development and Management Body of Knowledge: A Guide Book for Product Innovation Training and Certification.” The book distills five decades of industry research and current practice into actionable wisdom, empowering product professionals to innovate and excel. Chad also teaches the next generation of product leaders through advanced graduate courses at institutions including Boston University and Colorado State University and notably re-engineered the Innovation MBA program at the University of Fredericton, significantly broadening its impact. Further, he provides online training for product managers and leaders to prepare for their next career step — see https://productmasterynow.com/.
Thanks!
Thank you for taking the journey to product mastery and learning with me from the successes and failures of product innovators, managers, and developers. If you enjoyed the discussion, help out a fellow product manager by sharing it using the social media buttons you see below.

493: Perfecting Product Culture and Teams: Seventh Knowledge Area of Product Mastery – with Chad McAllister, PhD

Mastering Market Research Techniques for Successful Product Management
Watch on YouTube

TLDR
Market research is essential for product managers to make informed business decisions and to create products customers love. Common market research methods include focus groups, interviews, ethnographic research, customer site visits, and social media. Each has advantages and disadvantages. Using multiple methods provides a more complete and insightful picture of customer needs. Qualitative research uncovers deep insights, while quantitative research offers statistical confidence. The goal is to understand the target market, identify unmet needs, and inform product design and marketing. Successful companies leverage market research to drive innovation and revenue growth.
Understanding Market Research
Market research is the process of gathering information about your target market and customers to inform product development and marketing decisions. It helps answer key questions such as:
– What do customers want and need?
– What drives purchase decisions?
– How should we price and position our product?
– Will customers buy the product, and how often?
Effective market research aligns the product with market demand, giving you a competitive advantage.
Voice of the Customer (VOC)
Often market research is used synonymously with Voice of the Customer (VOC).  VOC focuses on gathering and analyzing customer feedback to understand their needs, preferences, and expectations. VOC goes beyond simply asking customers what they want. Instead, it seeks to uncover deeper insights by exploring:

The jobs customers are trying to accomplish
The outcomes they desire
The challenges and pain points they face

According to a study by Aberdeen Group, best-in-class companies that effectively use VOC methods enjoy a 10 times greater year-over-year increase in annual company revenue compared to other companies.

VOC can help answer key questions such as:

What value proposition should your product offer?
What features and capabilities are most important to customers?
How can we improve the product to better meet customer needs?

To use VOC, the key is to listen closely to the words customers use to describe their experiences and translate those insights into actionable product improvements.
Qualitative and Quantitative Research Methods
There are two main types of market research:
1. Primary research: Gathering new data directly from potential customers via surveys, interviews, focus groups, and observation.
2. Secondary research: Analyzing data from already available sources like market reports, competitor websites, and customer reviews.



Primary Market Research
Secondary Market Research


Surveys
Market reports


Focus groups
Industry publications


Interviews
Government statistics


Customer observation
Competitor websites



Qualitative vs. Quantitative Research
Qualitative research explores the “why” behind customer attitudes and behaviors. Methods include:
– Focus groups
– In-depth interviews
– Ethnographic research (observing customers in their environment)
 

While not statistically significant, qualitative research uncovers rich insights about customer motivations, pain points, and desires that guide product design.
In contrast, quantitative research measures customer attitudes and behaviors using numerical data that can be statistically analyzed. Techniques include:
– Surveys
– Questionnaires
– Data analysis (e.g. website analytics, sales data)
Quantitative research helps validate qualitative insights and provides confidence for business decisions. Use both types for a well-rounded understanding of your market.
5 Powerful Market Research Techniques
1. Focus Groups
A focus group brings together 6-10 target customers to discuss their needs, preferences, and reactions to a product idea or prototype. Advantages include:
– Quickly gathering feedback
– Generating new ideas
– Gauging emotional responses
However, focus groups can be biased by group dynamics and may not represent the broader market. Use focus groups for exploratory research, not conclusive decisions. Also, a skilled facilitator is needed to moderate focus groups.
2. In-Depth Interviews
One-on-one interviews with target customers provide deep insight into their goals, challenges, and product perceptions. Benefits include:
– Uncovering unarticulated needs
– Exploring sensitive topics
– Diving into individual customer stories
Some market researchers find as few as 6-8 interviews are needed, as insights tend to converge around this number. However, around 20 interviews is sure to uncover almost all relevant findings. Avoid leading questions that bias responses.
3. Ethnographic Research
Also called participant observation, ethnographic research involves observing customers in their natural environment as they use a product or complete relevant tasks. Advantages include:
– Gaining context about product usage
– Identifying unspoken needs and pain points
– Sparking ideas for product innovation
Ethnography is time-intensive but provides a uniquely realistic view of the customer experience.

For example, product designers planning a new farm tractor model decided to conduct ethnographic research to better understand customer needs. First, they facilitated a focus group with farmers who owned tractor produced by the company.
One farmer told the researchers his tractor was “perfect” and should not be changed in the new model. However, upon observing the tractor in person, the researchers noticed he had made over 20 modifications to it.
This insight revealed unmet needs and opportunities for product improvement that the farmer himself hadn’t articulated. By watching what customers actually do – not just listening to what they say – ethnographic research uncovers breakthrough ideas.
4. Customer Site Visits
Visiting customers on-site provides an up-close view of how they use your product and what needs it does or doesn’t fulfill. Benefits include:
– Understanding the customer’s environment
– Uncovering product improvement opportunities
– Building customer relationships
Have a clear agenda but allow for unstructured conversation and observation. Involve other teams like sales and engineering for shared learning.
5. Social Media Listening
Monitor social media channels to understand what target customers are saying about your brand, products, and competitors. Advantages include:
– Getting unprompted, real-time feedback
– Identifying trending topics and unmet needs
– Engaging proactively with customers
Tools can help analyze social sentiment and spot opportunities. But don’t over-rely on social media, as it may skew negative and isn’t statistically representative.
Putting Market Research Into Practice
Now that you understand different types of market research, how do you conduct an effective study? Follow these steps:
1. Define your research goals
2. Identify your target market
3. Choose the right market research techniques
4. Develop research instruments (e.g. survey, interview guide)
5. Collect and analyze data
6. Translate insights into action
7. Measure results and refine
Consider hiring a market research firm if you lack in-house expertise. But stay closely involved to ensure the research meets your needs.
Integrating market research into the product development process keeps you customer-centric. For example:
– Concept testing with focus groups before investing in development
– Surveying beta users to optimize product-market fit
– Conducting win/loss interviews to understand sales drivers
Customer Insights Drive Growth
Legendary management consultant Peter Drucker said, “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” Market research makes this possible.
Don’t get trapped in simply asking customers what they want. As Steve Jobs famously said, “People don’t know what they want until you show it to them.” Use market research techniques to uncover latent needs customers can’t always articulate.
The most successful companies make market research an ongoing priority, not a one-time event. They continuously gather customer insights to drive product innovation and stay ahead of the curve.
For example, PepsiCo’s Dewmocracy campaign used social media to crowdsource new Mountain Dew flavors. Thousands of consumers submitted ideas, voted on favorites, and shared with friends. The winning flavors generated billions in sales.
When you invest in market research, the ROI compounds over time. Use these techniques to delight customers and leave competitors behind:
– Integrate market research into every stage of the product lifecycle to ensure you meet customer needs.
– Triangulate insights from multiple research methods for a holistic view of your market.
– Share research insights across the organization to infuse customer-centricity into every team.
– Continuously monitor the market and adapt your product and marketing based on evolving customer needs.
– Measure the impact of your research efforts on key metrics like revenue, customer satisfaction, and market share to prove the value.
With a strong market research foundation, your product management work results in even more valuable products customers love. So get out there and start talking to your customers!
Discussion Questions
1. What market research techniques does our organization currently use? Where are the gaps and how can we fill them?
2. How can we integrate market research insights more effectively across teams (e.g. product, sales, marketing)?
3. What processes can we put in place to make market research an ongoing, iterative effort rather than a one-time project?
4. How will we measure the ROI of our market research efforts to secure ongoing investment and executive buy-in?
Useful links:

Special Offer: Unlock a 30% discount on the Rapid Product Mastery training program using the code “podcast” at productmasterynow.com/rpm
Product Development and Management Association (PDMA)
Check out the 2024 Product Development and Management Body of Knowledge by Allan Anderson, Chad McAllister, and Ernie Harris

Innovation Quote
“If you don’t know where you’re going, any road will take you there. – Cheshire Cat responding to Alice (Alice in Wonderland)
Chad’s Bio
Chad McAllister, PhD, is a product management professor, practitioner, trainer, and host of the Product Mastery Now podcast. He has 30+ years of professional experience in product and leadership roles across large and small organizations and dynamic startups, and now devotes his time to teaching and helping others improve. He coauthored “Product Development and Management Body of Knowledge: A Guide Book for Product Innovation Training and Certification.” The book distills five decades of industry research and current practice into actionable wisdom, empowering product professionals to innovate and excel. Chad also teaches the next generation of product leaders through advanced graduate courses at institutions including Boston University and Colorado State University and notably re-engineered the Innovation MBA program at the University of Fredericton, significantly broadening its impact. Further, he provides online training for product managers and leaders to prepare for their next career step — see https://productmasterynow.com/.
Thanks!
Thank you for taking the journey to product mastery and learning with me from the successes and failures of product innovators, managers, and developers. If you enjoyed the discussion, help out a fellow product manager by sharing it using the social media buttons you see below.

492: Mastering Market Research: Sixth of Seven Knowledge Areas of Product Mastery – with Chad McAllister, PhD

How product managers can master product design & development
Watch on YouTube

TLDR
This article explores the crucial role of product design in product management, focusing on ideation and concept design tools. It covers various ideation techniques such as SCAMPER, brainstorming, mind mapping, storyboarding, brainwriting, Six Thinking Hats, Delphi, ethnography, Day in the Life, empathy analysis, personas, and customer journey maps. The article also delves into concept design, discussing the Kano Method for classifying product requirements and identifying customer perceptions. By understanding and applying these tools, product managers can create customer-centric products that drive satisfaction, differentiation, and competitive advantage.
Introduction
Product design is a critical aspect of product management, as it directly impacts the success of a product in the market. To create products that customers love, product managers must have a deep understanding of their target audience and employ various tools and techniques to generate ideas, validate concepts, and optimize the user experience (UX). In this episode, we will explore the essential product design tools that every product manager should know, focusing on ideation and concept design.


Ideation Tools
Ideation is the creative process of generating, developing, and communicating new ideas. It is an essential part of the product development process, particularly in the early stages when product managers are looking to identify customer needs and develop innovative solutions. Here are some powerful ideation tools that can help product managers in their quest for product innovation:

 

SCAMPER is an acronym that stands for Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, and Reverse. This tool helps generate new ideas by prompting product managers to think about their product in different ways. By applying each of these actions to their product, they can come up with creative solutions and improvements.
Traditional brainstorming involves gathering a group of people to generate a large number of ideas in a short period. However, research has shown that this method may not be the most effective. The Nominal Group Technique (NGT) is an improved version of brainstorming that incorporates individual reflection time before the group discussion, leading to better quality ideas.
Mind Mapping is a visual tool that starts with a central idea and builds a web of relationships around it. This tool is particularly useful for collaborative ideation sessions, as it allows team members to see the connections between different ideas and build upon them.
Storyboarding focuses on developing a story to understand the problems or issues customers face when using a product. By visually representing the key elements of the story, product managers can gain insights into the customer journey and identify areas for improvement.
Brainwriting is a variation of NGT that involves individual writing and idea sharing. Participants write down their ideas and then pass them to the next person, who builds upon them. This process continues until everyone has had a chance to contribute, resulting in a diverse set of ideas.
Six Thinking Hats encourages team members to examine a problem or topic from multiple perspectives. Each hat represents a different way of thinking, such as facts, emotions, or creative ideas. By wearing different hats, product managers can approach a problem from various angles and generate more comprehensive solutions.
The Delphi method utilizes a panel of experts to provide insights and scenario planning. Through a series of surveys, experts independently share their thoughts on a specific topic. The results are then synthesized and shared back with the group for further refinement. This process helps product managers make informed decisions based on expert opinions.
Ethnography involves observing users in their natural environment to gain a deeper understanding of their needs and behaviors. By combining ethnography with interviews, product managers can uncover valuable insights that may not be apparent through other research methods.
The Day in the Life method helps product managers uncover the routines, behaviors, and challenges customers face when using a product. This can be done through remote user observation, such as video submissions, allowing product managers to gather data from a diverse set of users.
Empathy Analysis is crucial for creating customer-centric products. By immersing themselves in the user’s world, product managers can better understand their problems and develop solutions that address their needs. Empathy analysis should be a fundamental part of any product design process.
Personas are fictional characters based on real customer interactions. They help product managers understand their target audience by incorporating demographic, behavioral, and psychographic data. By adding jobs-to-be-done to personas, product managers can gain even more clarity on the outcomes customers are trying to achieve.
Customer Journey Maps are flowcharts that visualize the actions and behaviors of customers as they interact with a product. They identify touchpoints, emotions, and visible interactions, providing a comprehensive view of the customer experience. Product managers can use this information to optimize the user experience and improve customer satisfaction.




Ideation Tool
Key Benefits




SCAMPER
Generates new ideas by prompting different ways of thinking about a product


Brainstorming (NGT)
Incorporates individual reflection time for better quality ideas


Mind Mapping
Visualizes connections between ideas and facilitates collaborative ideation


Storyboarding
Provides insights into the customer journey through visual storytelling


Brainwriting
Encourages diverse idea generation through individual writing and sharing


Six Thinking Hats
Examines problems from multiple perspectives for comprehensive solutions


Delphi
Utilizes expert opinions for informed decision-making and scenario planning


Ethnography
Uncovers deep insights through observing users in their natural environment


Day in the Life
Reveals routines, behaviors, and challenges customers face when using a product


Empathy Analysis
Helps create customer-centric products by understanding user needs and problems


Personas
Provides a clear understanding of the target audience based on real customer data


Customer Journey Maps
Visualizes the customer experience, identifying touchpoints, emotions, and interactions



Concept Design
Once product managers have generated ideas through ideation, the next step is to develop and refine these ideas into product concepts. Concept design involves creating a detailed description of the product, including its features, benefits, and user experience. One powerful tool for concept design is the Kano Method.
The Kano Method classifies product requirements into three categories:

Basic (Must-be) Requirements: These are the essential features that customers expect from a product. If these requirements are not met, customers will be dissatisfied.
Performance (One-dimensional) Requirements: These requirements are directly related to customer satisfaction. The better a product performs in these areas, the more satisfied customers will be.
Excitement (Attractive) Requirements: These are unexpected features that can delight customers. While their absence does not lead to dissatisfaction, their presence can significantly boost customer satisfaction and loyalty.

The Kano Method also helps identify customer perceptions through surveys, which focus on four key aspects:

Attractive Quality Elements: Customers are satisfied when these elements are present, but not dissatisfied when they are absent.
One-dimensional Quality Elements: These elements have a direct impact on customer satisfaction. More functionality leads to higher satisfaction, while less functionality results in lower satisfaction.
Must-be Quality Elements: Customers expect these elements as a minimum. Their presence does not increase satisfaction, but their absence leads to dissatisfaction.
Indifferent Quality Elements: These elements do not impact customer satisfaction, whether they are present or absent. Investing resources in these elements is not advisable, as they do not contribute to the product’s success.

By applying the Kano Method, product managers can prioritize product features and allocate resources effectively. This helps create products that not only meet customer expectations but also exceed them, leading to higher customer satisfaction, differentiation, and competitive advantage.
Conclusion
Product design is a vital aspect of product management, and product managers must be well-versed in various ideation and concept design tools to create successful products. By understanding and applying tools such as SCAMPER, brainstorming, mind mapping, storyboarding, brainwriting, Six Thinking Hats, Delphi, ethnography, Day in the Life, empathy analysis, personas, and customer journey maps, product managers can generate innovative ideas and gain deep insights into customer needs.
Furthermore, by utilizing the Kano Method for concept design, product managers can classify product requirements and identify customer perceptions, ensuring that they focus on the features that matter most to their target audience. This customer-centric approach to product design leads to higher customer satisfaction, product differentiation, and competitive advantage.
Investing in product design and continuously improving the product development process through iterative design and customer feedback is essential for long-term success. By staying attuned to the voice of the customer (VoC) and leveraging these powerful product design tools, product managers can create products that not only meet but exceed customer expectations, driving product adoption, customer retention, and ultimately, business growth.
Useful links:

Special Offer: Unlock a 30% discount on the Rapid Product Mastery training program using the code “podcast” at productmasterynow.com/rpm
Check out the 2024 Product Development and Management Body of Knowledge by Allan Anderson, Chad McAllister, and Ernie Harris

Innovation Quote
“Discovery consists of seeing what everybody has seen and thinking what nobody has thought.” – Albert von Szent-Gyorgy
Application Questions

What ideation tools have you used or seen used?
Think critically about your experience with these techniques and list the positive and negative aspects.
Do you have a “go to” tool you must often use?

Chad’s Bio
Chad McAllister, PhD, is a product management professor, practitioner, trainer, and host of the Product Mastery Now podcast. He has 30+ years of professional experience in product and leadership roles across large and small organizations and dynamic startups, and now devotes his time to teaching and helping others improve. He coauthored “Product Development and Management Body of Knowledge: A Guide Book for Product Innovation Training and Certification.” The book distills five decades of industry research and current practice into actionable wisdom, empowering product professionals to innovate and excel. Chad also teaches the next generation of product leaders through advanced graduate courses at institutions including Boston University and Colorado State University and notably re-engineered the Innovation MBA program at the University of Fredericton, significantly broadening its impact. Further, he provides online training for product managers and leaders to prepare for their next career step — see https://productmasterynow.com/.
Thanks!
Thank you for taking the journey to product mastery and learning with me from the successes and failures of product innovators, managers, and developers. If you enjoyed the discussion, help out a fellow product manager by sharing it using the social media buttons you see below.

491: Product Design & Development: Fifth of Seven Knowledge Areas of Product Mastery – with Chad McAllister, PhD

How product managers can master product process
Watch on YouTube


TLDR
– The Product Innovation Charter (PIC) is a short document that provides direction and alignment for a product development project.
– Stage-Gate and Agile Stage-Gate are popular product development processes that manage risk and incorporate Agile elements.
– Jobs-to-be-Done theory focuses on understanding the customer’s underlying needs and the jobs they are trying to accomplish with a product.
Introduction
In today’s competitive market, creating products that customers love is crucial for the success of any organization. Product managers and innovators play a vital role in delivering value to customers by effectively managing the product innovation process. In this article, we will explore the seven knowledge areas for product mastery. These knowledge areas are based on the Product Development and Management Association’s (PDMA) body of knowledge, which has been curated since 1976.
The Seven Knowledge Areas for Product Mastery

Product Innovation Management: Maximizing the return from product innovation through application of sound management practices throughout the product life cycle
Strategy: Provides the context, goals, and direction for product innovation and ongoing product management
Portfolio Management: Establishes and maintains balance of new and existing product innovation projects aligned with the business strategy
Process: Provides an approach, which is commonly understood and accepted by the whole organization, for developing new products or improving existing products
Design & Development: Efficiently and effectively evolve a product from initial idea to a developed, manufactured, and “market-ready” form
Market Research: Provide market-related information to underpin decision-making in all aspects of strategy development, portfolio management, the product innovation process, and life cycle management
Culture & Teams: Essential to forming and maintaining an innovative environment that enables, encourages, and rewards product innovation processes and practices.

In this article, we will focus on the New Product Process knowledge area, which covers various product innovation processes and methodologies.
The Product Innovation Charter (PIC)
The PIC is a short document (1-3 pages) that serves as the heart of any organized effort to commercialize a new product. It consists of four sections:

Background: Provides context for the project, including why the company is pursuing it, the scope, the project team’s role, and any constraints or key technologies involved.
Focus Arena: Identifies the target market, key technologies, marketing aspects, and competitors’ strengths and weaknesses.
Goals and Objectives: Outlines specific and measurable goals related to the project’s contribution to business strategy, operational goals, and project-specific objectives.
Special Guidelines: Covers team communication and accountability, reporting requirements, project expenditure responsibilities, external agencies, and product quality or launch constraints.

A helpful acronym to remember these sections is “BAGG” (Background, Arena, Goals, Guidelines). The PIC is a valuable collaboration tool that ensures everyone involved in the project has the same vision and understanding of the product’s purpose, target market, and objectives. Many companies do not start projects with a clear, concise document like the PIC, which can lead to confusion and misalignment among team members and stakeholders.
Product Development Processes
There are numerous product development processes and methodologies covered in the New Products Process knowledge area. Some of the most notable include:

Stage-Gate
Waterfall
Concurrent Engineering
Integrated Product Development (IPD)
Agile Product Innovation
Agile Stage-Gate
Systems Engineering
Design Thinking
Lean Product Innovation
Lean Startup
Jobs-to-be-Done

Stage-Gate and Agile Stage-Gate
The Stage-Gate process, developed by Dr. Robert G. Cooper, is a widely adopted product development process that manages risk by breaking the process into stages separated by decision gates. The five stages are:

Discovery: Identifying new product ideas and opportunities.
Scoping: Conducting a quick assessment of the market opportunity, technical requirements, and organizational capabilities.
Business Case: Justifying the project to the organization by evaluating the market, the proposed solution, and the business viability.
Development: Designing, prototyping, and preparing for the product launch.
Testing and Validation: Assessing all aspects of the product and launch plans, potentially involving customer trials or market tests.

Agile Stage-Gate incorporates Agile elements, such as Sprints and time-boxing, into the Stage-Gate process to promote faster learning cycles and adaptability. By breaking down the work in each stage into time-boxed Sprints, teams can focus on delivering value incrementally and adapt to feedback and new information more quickly.
Jobs-to-be-Done Theory
Jobs-to-be-Done (JTBD) theory, pioneered by Clayton Christensen and Tony Ulwick, focuses on understanding the underlying needs and jobs customers are trying to accomplish when using a product. Christensen’s approach emphasizes improving existing products to increase demand by understanding why customers “hire” a product to do a specific job. Ulwick’s approach, on the other hand, focuses on creating products that people want by identifying the customer’s desired outcomes and job metrics.
By identifying the customer’s key job metrics, such as decreasing the time to complete a task or increasing the number of options available, product teams can design solutions that effectively address the customer’s needs. The example of the Apple iPod and iTunes ecosystem illustrates how understanding the customer’s job (easily putting music on a portable player) and the associated job metrics (decreasing time to load music and increasing song capacity) led to a successful product innovation.
Mastering Product Management
Mastering the seven knowledge areas for product mastery equips product professionals with the skills and knowledge needed to create products that customers love. By understanding and applying various product innovation processes, such as Stage-Gate, Agile Stage-Gate, and Jobs-to-be-Done, product managers and innovators can effectively manage risk, adapt to changing market conditions, and deliver value to customers.
Conclusion
In the words of Henry Ford, “Vision without execution is hallucination.” By mastering the seven knowledge areas for product mastery, particularly the New Products Process, product professionals can effectively execute their vision and create products that customers love. Investing in professional development and applying the appropriate product innovation processes will help product managers and innovators deliver value, advance their careers, and contribute to the success of their organizations.
Useful links:

Special Offer: Unlock a 30% discount on the Rapid Product Mastery training program using the code “podcast” at productmasterynow.com/rpm
Check out the 2024 Product Development and Management Body of Knowledge by Allan Anderson, Chad McAllister, and Ernie Harris

Innovation Quote
“Vision without execution is hallucination.” – Henry Ford
Chad’s Bio
Chad McAllister, PhD, is a product management professor, practitioner, trainer, and host of the Product Mastery Now podcast. He has 30+ years of professional experience in product and leadership roles across large and small organizations and dynamic startups, and now devotes his time to teaching and helping others improve. He coauthored “Product Development and Management Body of Knowledge: A Guide Book for Product Innovation Training and Certification.” The book distills five decades of industry research and current practice into actionable wisdom, empowering product professionals to innovate and excel. Chad also teaches the next generation of product leaders through advanced graduate courses at institutions including Boston University and Colorado State University and notably re-engineered the Innovation MBA program at the University of Fredericton, significantly broadening its impact. Further, he provides online training for product managers and leaders to prepare for their next career step — see https://productmasterynow.com/.
 

365: Innovation accounting metrics to improve product management – with Esther Gons

Download our free app to listen on your phone