Product Manager vs. Project Manager - What's the difference?
Do you know the difference and similarities? Let's demystify...
Welcome back to another edition of our weekly newsletter!
This week, we're diving into a topic that often causes confusion in the world of product management…
The difference between a Product Manager and a Project Manager.
At the core, both roles play critical parts in the success of a project, but they have distinct aspects to help craft an experience for the business and customers.
Questions I’ve been asked…
"So, what's the main thing that a Product Manager does compared to a Project Manager?"
"How does a Product Manager decide what to work on compared to a Project Manager?"
"Can you give me an example of when a company would need both a Product Manager and a Project Manager?"
Let's break it down.
Product Manager:
Think of the Product Manager as someone that is focused on the "why" and the "what" of a product or feature. Their responsibilities include crafting the product roadmap, defining the product vision and strategy, and prioritizing features based on customer needs and business goals. Essentially, they're the ones who determine what needs to be built and why it matters.
Project Manager:
Now, enter the Project Manager, who has a discipline of execution. Their value lies in helping with the "how" and the "when" of a project. Once the Product Manager has laid out the roadmap and requirements, it's the Project Manager's job to figure out how to bring those plans to life. They work closely with cross-functional teams, set timelines, allocate resources, and ensure that everything stays on track to meet project milestones and deadlines.
*For those folks in startups, typically a product manager will have to handle both roles given lack of resources or funding. In these cases, prioritize the why and the what, and balance scope, quality, and timing with the various teams.
While both roles share the common goal of removing hurdles for the team and achieving business objectives, they have distinct focuses.
The Product Manager is more concerned with adding value for the business and the customer, ensuring that the product aligns with the overall strategy and vision. On the other hand, the Project Manager is laser-focused on execution, making sure that tasks are completed efficiently and on time.
Let's delve into a couple of real-world examples to illustrate the nuances:
First Example - Product Manager at an eCommerce Company Launching new Payment System
Imagine a Product Manager at an eCommerce company tasked with launching a new payment system. They collaborate with various teams, including Legal, DevOps, Credit and Financing, and Accounting. Here, a Project Manager steps in to coordinate efforts, ensuring that each team member delivers their part on time.
#ProductManagerWork - Vision and Strategy: The vision is to launch a seamless and secure payment system that enhances the customer experience and streamlines the checkout process. The strategy involves collaborating with Legal to ensure regulatory compliance, DevOps to build a robust technical infrastructure, Credit and Financing to manage payment processing, and Accounting to integrate the new system seamlessly.
#ProjectManagerWork - High-Level Gantt Chart:
The content of each bullet point that requires requirements or direction would be a result of conversations between legal, product management, and project management. Where, once again, the product manager cares about why and what for each, and the project manager cares mostly about how it can get done in a timely fashion.
Legal:
Review and approve payment system terms and conditions
Ensure compliance with financial regulations
Deadline: End of Week 2
DevOps:
Build and deploy the payment system infrastructure
Conduct security testing and implement necessary measures
Deadline: End of Week 4
Credit and Financing:
Set up payment processing mechanisms
Test payment flows and resolve any issues
Deadline: End of Week 6
Accounting:
Integrate the new payment system with existing financial workflows
Ensure accurate reporting and reconciliation
Deadline: End of Week 8
#ProductManagerWork - High-Level Epic:
The epic involves developing and launching a new payment system that encompasses legal compliance, robust infrastructure, efficient payment processing, and seamless integration. It touches all co-creators involved in the process, ensuring that each team member contributes their expertise to achieve the common goal.
Project Manager's Role:
The Project Manager conducts regular meetings with each team to review progress, identify any roadblocks that they can make sure the product manager is aware of, and ensure alignment with the overall project timeline. They facilitate cross-departmental communication, address any conflicts or dependencies, and keep the project on track for timely delivery.
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Example 2 - Product Manager at a SaaS company developing performance testing software
In another scenario, a Product Manager at a SaaS company overseeing the development of performance testing software. They work alongside a Scrum Master for their immediate development, design, and QA squad/team, while a Project Manager takes charge of the broader project scope, spanning multiple departments.
#ProductManagerWork - Vision and Strategy:
The vision is to develop cutting-edge performance testing software that empowers users with actionable insights to optimize digital experiences and drive business growth. The strategy involves collaborating with various departments, including marketing, sales, and customer support, to ensure a holistic approach to product development.
#ProjectManagerWork -High-Level Gantt Chart:
The content of each bullet point that requires requirements or direction would be a result of conversations between legal, product management, and project management. Where, once again, the product manager cares about why and what for each, and the project manager cares mostly about how it can get done in a timely fashion.
Product Development Team (led by the Product Manager and Scrum Master):
Prioritize and develop key features based on user feedback
Conduct iterative testing and refinement
Deadline: End of Week 6
Marketing:
Develop marketing collateral and promotional materials
Plan product launch campaigns and events
Deadline: End of Week 8
Sales:
Train sales teams on product features and benefits
Develop sales strategies and pricing models
Deadline: End of Week 10
Customer Support:
Prepare support documentation and training materials
Implement customer feedback mechanisms
Deadline: End of Week 12
#ProductManagerWork - High-Level Epic:
The epic involves developing and launching performance testing software that encompasses product development, marketing, sales, and customer support. It touches all co-creators involved in the process, ensuring a coordinated effort to deliver a valuable product to customers.
Project Manager's Role:
The Project Manager organizes regular meetings with each department to track progress, address any issues or dependencies, and ensure alignment with the overall project goals. They facilitate cross-functional collaboration, manage timelines and resources, and ensure that the project stays on course for successful delivery.
Side-by-side comparison on the various aspects of the roles
So, while the Product Manager sets the direction and vision, the Project Manager ensures that the journey to realization is effectively communicated, as smooth as possible by bringing co-creators that have friction together to solve, and up to date based on any chances to scope, quality, and timing.
Answers to the questions I started this post with…
"So, what's the main thing that a Product Manager does compared to a Project Manager?"
A Product Manager focuses on deciding what products to build and why, while a Project Manager focuses on how and when those products will be built.
"How does a Product Manager decide what to work on compared to a Project Manager?"
Product Managers prioritize tasks based on the product's overall vision and strategy, while Project Managers prioritize tasks based on timelines and resource allocation.
"Can you give me an example of when a company would need both a Product Manager and a Project Manager?"
A company may need both roles when they have complex projects requiring strategic planning and execution (Product Manager) as well as detailed coordination and task management (Project Manager) across many different teams that don’t typically overlap in their day-to-day execution.
The next time someone asks you “wait are you just a project manager?” or “what is the difference”… simply tell them you are focused on the “Why” and the “What” while project management focuses on the “how” and “when.” If they need more detail, send them to this newsletter!
Speaking of which, if you found this newsletter helpful or thought-provoking, don't forget to hit subscribe and share it with your colleagues. Let's spread the knowledge!
Until next week!
Jason
