490: Product Process: Fourth of Seven Knowledge Areas of Product Mastery – with Chad McAllister, PhD

Product Mastery Now for Product Managers, Leaders, and Innovators

How product managers can master product process

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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

1. Product Innovation Management: Maximizing the return from product innovation through application of sound management practices throughout the product life cycle
2. Strategy: Provides the context, goals, and direction for product innovation and ongoing product management
3. Portfolio Management: Establishes and maintains balance of new and existing product innovation projects aligned with the business strategy
4. Process: Provides an approach, which is commonly understood and accepted by the whole organization, for developing new products or improving existing products
5. Design & Development: Efficiently and effectively evolve a product from initial idea to a developed, manufactured, and “market-ready” form
6. 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
7. 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:

1. 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.
2. Focus Arena: Identifies the target market, key technologies, marketing aspects, and competitors’ strengths and weaknesses.
3. Goals and Objectives: Outlines specific and measurable goals related to the project’s contribution to business strategy, operational goals, and project-specific objectives.
4. 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:

1. Stage-Gate
2. Waterfall
3. Concurrent Engineering
4. Integrated Product Development (IPD)
5. Agile Product Innovation
6. Agile Stage-Gate
7. Systems Engineering
8. Design Thinking
9. Lean Product Innovation
10. Lean Startup
11. 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:

1. Discovery: Identifying new product ideas and opportunities.
2. Scoping: Conducting a quick assessment of the market opportunity, technical requirements, and organizational capabilities.
3. Business Case: Justifying the project to the organization by evaluating the market, the proposed solution, and the business viability.
4. Development: Designing, prototyping, and preparing for the product launch.
5. 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/.