Product and project - how they differ and how to grow from the second to the first

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

We give an answer to the age-old question.

The pandemic has accelerated digitalization, and the demand for IT specialists has only increased "There is a tough hunting": why the demand for IT specialists and their salaries has sharply increased in Russia / Forbes. And this applies to both applied and managerial professions. Among the latter, the most prominent are product and project managers, who are often referred to simply as product and project managers.

And although both positions have existed for a long time, there is still confusion about what these specialists are doing and what is the difference.

What is a product and how does it differ from a project

You can argue for a long time about what a product is - the interpretation depends on the context. Usually, this term is understood as the result of any activity. This could be your resume, a meal, or a phone app.

In IT, the need to have some value for the end user is often added to the definition. Not all companies achieve this, but they strive to do just that. Thus, a product is a result of an activity that potentially solves a problem or a user's task.

A project is a time-limited enterprise aimed at creating a unique product, service, service. A product can be the result of a project, but it never happens the other way around. At the same time, product development can last indefinitely, while the project has a clear deadline.

For example, the result of a project to create a site will be the site itself. And its revision may already be the next project. Product development is a whole set of projects, and a company may have many different products and projects.

What does a product manager do and what is responsible for

The product is responsible for the result and determines the final look of the product. This specialist is a true entrepreneur and innovator. He designs, builds, launches, and refines the product to improve business performance with new features and capabilities.

The product's area of responsibility is highly dependent on the company. In a startup, a manager can be responsible for almost everything. Except perhaps attracting investments, this is most often the task of the founder. In a larger firm, the product often only deals with a specific part of the product, such as the website.

In some cases, the term product owner is used. This is an advanced manager. The name appeared in the Scrum development methodology and rather describes the role in the team.

The main task of the manager is to speed up the receipt of the result and maximize it. This means that at different stages of product development, a specialist will have to deal with different things. So, at the beginning of development, the product will research the market, the audience, create prototypes, and give tasks to programmers.

As the project develops, the manager will have to analyze the data, build a team, engage in user acquisition, and even financial planning. Each of these tasks requires a variety of skills, from time management to communicating with people. And of course, you can't do without critical thinking: the manager makes endless decisions, and they must be effective.

In the process of work, you will have to constantly learn and learn something new: the product develops, and with it the tasks change. That is why you can write a separate article about the required product skills. It's easier to remember that within the framework of the product, the manager is responsible for everything, but primarily for the result. And if he requires the skill of distributing advertising brochures near the metro, then the product will deal with this as well.

What does a project manager do and what is responsible for

Unlike other managers, such as accounts or partner solutions specialists, the project is responsible for the implementation of the project, and not for the creative or specific tasks. Such a specialist does not need to look for new clients or sell anything.

He is responsible for specific projects. The manager plans resources, controls development, solves problems that arise in the process, and communicates with all participants so that everyone has the latest information and no one slows down the common business. The project manager must get the desired result on time and within the planned budget.

How they interact with each other

The product determines what needs to be done for a specific task, and the project takes on its implementation. The first one throws up coal, and the second is responsible for the proper operation of the furnace. If the product stops giving tasks, the fire will go out and there will be no result. And if the furnace breaks down, then it will not be able to burn the accumulated coal. In addition, the tasks set by the product should be closer to the result. If water is poured instead of coal, the flame will go out and the stove will stop working.

Suppose the team is faced with the task of launching a website. The product will determine how it will look, what the texts will be on the pages, how the registration process and communication with users will be arranged. And then the project must complete the website creation project on time.

Why it is important not to confuse their roles in the company

The goal of any business is to make a profit. Therefore, it is important for the owner of the firm and top management to distinguish between product and project. The former are responsible for product composition, business metrics and results. The second - for the implementation of the project on time. If the specialists are confused, it is likely that the person will not cope with the task.

So, when a company needs to create a new product that will increase profits or reduce costs, it is important to hire a product. If you entrust the task to the project, there is a great risk that the project will be completed on time, but the result will have no value. The project will not conduct interviews with users, research competitors, calculate economic parameters. And as a result, it will launch a product that the market does not need.

And if you need to implement a project in which tasks, goals and deadlines are clearly defined, you need to hire a project. He will competently and efficiently bring the enterprise to the result indicated in advance. For a product, it will most likely be boring to manage such projects - such people have an entrepreneurial mindset. As a result, the manager will either leave on his own, or the project will seriously expand in size.

How to grow from a project manager to a product manager

Compared to, for example, a programmer, it is often easier for a project to become a product, because management skills are important for both of these positions. Developers usually have less management experience.

However, leadership skills are not enough for a product position. It is necessary to learn and develop the mindset of an entrepreneur. Try this.

Focus on the result

Novice product managers often list what they did at work on their resume. For example, "launched the site". But it is not the process that is important, but the result. This sometimes requires a change in thinking and approach to problem solving. It is not the launch of the site itself that is important, but the specific result - “I attracted so many customers with the help of lead generation on the site”.

Try to take more responsibility and meet expectations

Products are hired to improve performance and improve efficiency. At the same time, no one will explain how to achieve this. And it is important to be ready to take responsibility for the result. Both negative and positive.

If you have such an opportunity, think about what can be improved, for example, on the website of the company where you work. Chat with users, calculate the cost of implementation, and draw up a development plan. And then come to the manager: “I did a research and found out that if we improve this section on the site, we can increase the number of potential customers by that many percent with the help of such and such solutions. Here is the development cost, I suggest you try it."

Negotiation is another critical skill for a product manager.

After convincing the boss, implement the project, and then analyze the results. Even if something does not work out, it is important to gain experience - it will still be useful to you.

Study business cases and develop awareness

This can be done in courses or conferences. Also try to communicate with products from other companies and read books about successful businesses. Just remember that it is not the process that is important, but the result. Thoughtlessly studying cases is pointless. It is necessary to understand the logic of decisions: how the sequence of actions led to a certain result.

Learn to analyze information and product metrics

Read books on statistics (for example, "Naked Statistics"), get acquainted with hermeneutics - the science of interpreting information. And product metrics such as LTV, GMV, unit economics, CAC, Retention, CR should turn from an incomprehensible sequence of letters into important data.

You also need to understand finance. Business metrics are decomposed into product metrics.

Train your creative thinking

The product has to constantly generate hypotheses and ideas - without them, the product will not develop. To develop creativity, try to look for non-standard and more promising solutions to business problems, master new skills, train your imagination. There are many ways.

What is worth remembering

1. A product manager is an advanced version of a project. It is important for the first to have the skills and abilities of the second, but not vice versa. Thus, the project is not required to do research or finance.
2. Product and project work together. The first determines what exactly needs to be done and why, and is responsible for the outcome. The second must achieve the designated result within the specified time frame.
3. It is important not to confuse products and projects, because different specialists are needed for different stages of the process. A new task without clear criteria is a product; a certain plan with clear terms and conditions - a project.
4. To grow from project to product, you need to learn to work in a situation of uncertainty, take on more responsibility and gain real experience.