July 17, 2024
Stakeholder Administration for Product Managers

Greater than 20 years in the past, tech entrepreneur and enterprise capitalist Ben Horowitz wrote {that a} good product supervisor is the CEO of the product. Many product managers disagree with this analogy, nevertheless it has some reality.

Senior product managers usually type sturdy relationships with the C-suite as they navigate transitional states, undefined targets, and competing stakeholders. A product supervisor’s knack for readability is pivotal in occasions of change when CEOs are more vulnerable. In these moments, strain from boards and pushback from staff can thwart strategic transformation, risking income and careers. By contracting a generalist product supervisor to handle relationships with stakeholders, CEOs can achieve operational insights and buy-in for merchandise and initiatives in any respect ranges of a corporation.

Reasons board members removed CEOs; 31% cited mismanaging change.
In a seminal 2015 survey of 1,087 board members, 31% reported ousting a CEO because of poor change administration. Mismanaging change stays a significant vulnerability for CEOs.

Why Product Managers Make Nice Deputies

Everybody likes a product supervisor. Or, a minimum of, nobody is threatened by them. That’s as a result of product managers don’t have any authority exterior of the product workforce. Their intention is to make sure the product roadmap solves compelling issues and addresses person priorities. To do this, they need to examine the ins and outs of every enterprise unit, constructing rapport alongside the best way.

Consequently, stakeholders really feel secure answering questions that might expose vulnerabilities or trigger misunderstandings. For instance, one in all my shoppers, a for-profit college group, was acquired in a leveraged buyout, and the brand new board ordered staff to digitize decades-old processes. However the board’s steering was imprecise and didn’t make sense in each state of affairs, main some stakeholders to disregard directives or quietly improvise their very own workflows. Had this been found, management would have penalized these stakeholders for going off-script. However their habits was a practical response to systemic issues they’d no authority to remove. I documented these top-down issues, not the stakeholder workarounds, as critical ache factors we wanted to resolve.

A product supervisor makes use of cultural data to map the corporate’s de facto processes, then shares problem-solving suggestions with the C-suite. Right here’s how they go about it.

How Product Managers Strategy Key Stakeholders

An skilled product supervisor will construct rapport with stakeholders to establish issues initially of a challenge, negotiate options to these issues, and be sure that the options are viable. This course of requires a collection of steps that leverage the product supervisor’s gentle expertise and a broad array of laborious expertise.

Listening

At first of a challenge, the product supervisor will maintain one-on-one conferences to permit stakeholders to talk freely about their ache factors with out the danger of retaliation. If there isn’t time to satisfy with each stakeholder, the product supervisor will goal a subset with essentially the most affect. These stakeholders are sometimes long-tenured managers or contributors who perceive the group’s structural points and function mentors to their colleagues.

Subsequent, the product supervisor will divide groups into small dialogue teams to learn the way they operate. Holding these conferences small ensures that people really feel comfy airing grievances, recommendations, or anxieties. By the tip of the listening section, the product supervisor could have captured vital particulars about every stakeholder’s workflow and constraints.

Mapping

The product supervisor will then use a device like Miro or diagrams.net to map relational workflows, information constructions, and organizational dependencies to launch additional dialogue with stakeholders. This map introduces management to on-the-ground realities and exhibits employees that different colleagues share their roadblocks and targets. The map additionally facilitates the roadmapping course of afterward, serving to to establish identified and unknown dangers to the group, from counterproductive workflows to looming disruptions that might have an effect on wholesome enterprise models.

At this level, some contract product managers will ship a tidy abstract and a few handsome slides earlier than signing off for good. This isn’t who you need to rent. A superb generalist product supervisor will stick round to collaborate on stakeholder-led options that work and hand off day-to-day troubleshooting to an in-house product supervisor as soon as the challenge is operating easily.

Participating

After drawing the map, the product supervisor will begin problem-solving, beginning with every stakeholder’s most easy ache factors. This train ought to yield instant advantages for the group at massive. Nonetheless, do not forget that the product supervisor mustn’t get too embedded inside a specific enterprise operate, or they danger turning into a part of the dysfunction they’re making an attempt to unravel.

As a substitute, the product supervisor ought to set up bigger, cross-functional tasks and implement information-sharing processes to preempt siloing and friction. The product supervisor might choose representatives from every related enterprise unit (usually gifted however underutilized workforce members) to collaborate on the challenge.

Suppose gross sales and advertising want higher alignment. On this case, the product supervisor may maintain a weekly working group with one marketer and one gross sales consultant to arrange their groups’ targets and processes and consider new buyer relationship administration (CRM) techniques. These representatives would then report their findings to their respective groups.

Mediating

Mediating amongst stakeholders is essentially the most delicate however rewarding stage for product managers. Strategies might fluctuate, however my strategy to mediation is easy:

  1. Manage a gathering and embody all stakeholders who will use or be affected by the product. The invite listing ought to embody the capabilities that different stakeholders are likely to overlook when planning main modifications. These capabilities fluctuate between organizations however usually embody customer support, human sources, or finance. Extending invites to as many stakeholders as attainable ensures that nobody derails the product out of self-interest, or fails to undertake the answer in favor of again channels.

  2. Primarily based on the assembly notes, draw a tough map of the capabilities’ overlapping and competing pursuits and priorities to seek out factors of commonality and battle.

  3. Foyer every workforce by figuring out the way it will profit from an initiative. If a workforce sees no upside to tasks that inconvenience it, it’ll decide out or resist. Say the CRM working group decides the engineers should replace the present platform to include new lead era instruments for the gross sales workforce. The ensuing disruption might final for months and closely affect advertising’s efficiency. To get advertising’s buy-in, the product supervisor should clarify the long-term benefits to the advertising workforce, similar to improved automation options.

  4. Reconvene the stakeholders and provide one or two artistic options to the primary proposal in case it fails to achieve consensus. If stakeholders can’t agree on an answer, the product supervisor ought to choose one and clarify why it’s the best choice.

  5. Repeat conferences with particular person stakeholders to solicit suggestions and clarify the plan’s affect on them and their groups. The purpose is to have blunt discussions that the product supervisor can use to craft a compromise.

  6. Define an motion plan and guarantee stakeholders perceive that their ideas and time are important and can generate worth for the group.

On the finish of this course of, stakeholders will view the product supervisor as a pleasant mediator and begin involving them in common data exchanges. Product managers in a position to work throughout capabilities and with many stakeholders will help remove inefficiencies and silos all through the corporate.

A chart lists a product manager’s top five skills.
Product managers are expert multitaskers. One generalist product supervisor can scale back many operational silos.

How CEOs Get Misplaced within the Company Fog

The “fog of conflict” is a time period derived from the treatise On Conflict by Prussian army strategist Carl von Clausewitz. It refers back to the necessity of creating operational selections with incomplete data. This fog additionally develops in altering organizations, similar to early-stage startups or extra established corporations within the throes of a scale-up or digital transformation. Activist boards demand quick results, whereas anxious staff resist change, battle over sources, or withhold data from management and each other. In the meantime, new purposeful overlaps and unexpected dependencies add complexity, deepening the chaos.

Within the case of the college group consumer I discussed earlier, educators, directors, and employees have been sluggish to implement new processes as a result of the processes have been complicated or ill-suited for a particular context. When the board’s new imaginative and prescient did not manifest rapidly, it fired the CEO. By the point I arrived, the board had changed all the C-suite twice in a single yr, to little impact.

Executives are sometimes too busy managing direct stories and board expectations to watch operational trivialities. When efficiency lags, they might exert broad strain, worsening fissures and dysfunction throughout the firm. An skilled product supervisor can break this vicious cycle by exploring all ranges of the group, gathering data, and organizing initiatives.

Product Managers Are Allies, Not Opponents

After the CEO, the senior product supervisor has essentially the most vital transverse function inside an organization, establishing webs of relationships and influencing tradition and strategic course. This affect can appear threatening to CEOs, significantly if the product supervisor strays out of their lane. For instance, an overenthusiastic product supervisor may counsel altering the corporate’s technique or suggest initiatives exterior the scope of their task. The stress of heading off a rogue product supervisor can lead CEOs to micromanage, slowing decision-making and decreasing autonomy all through the group.

CEOs and different C-suiters ought to do not forget that it’s unlikely a wayward product supervisor has ulterior motives. Whereas the job does have some gentle talent overlap with the CEO and even the COO, it lacks lots of the calls for of these roles. Product managers don’t cope with traders or the press like a CEO, or payroll and hiring like a COO, and that’s a part of the function’s enchantment. However, in the end, belief will rely on the distinctive relationship between the CEO and product supervisor, significantly in smaller corporations. Expertise and expertise are vital when evaluating a product supervisor, however belief will make the distinction between a counterproductive energy battle and a transformative collaboration.