This presentation will show you how to take your Product Management process, tools and team to the next level and set you up to make a huge impact in your company. And it will help you as a Product Manager, Director or Vice President to build a plan for getting your team to excellence so they deliver great results and dramatically move your career forward. All attendees will also receive a copy of two of Brian's books, Optimal Product Process and The Phenomenal Product Manager.

1. © 2014 280 Group LLC.
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One person wins the entire 280 Group Press series!
Must be present to win!
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Today’s Speaker
Presenter:
Brian Lawley CEO & Founder @brianlawley contact@280group.com www.280group.com +1.408.834-7518
www.aipmm.com

6. © 2014 280 Group LLC.
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Poll (answer in polling box)
What’s your title?
-Product Manager
-Senior Product Manager
-Director of Product Management
-Vice President of Product Management
-Chief Marketing Officer
-Other
www.aipmm.com

7. © 2014 280 Group LLC.
Researched and Produced By…

8. © 2014 280 Group LLC.
We help companies and individuals do GREAT Product Management and Product Marketing using our Optimal Product Process™ framework.
Mission
280 Group Overview

9. © 2014 280 Group LLC. Assessments & Custom Optimization Plans Consulting & Contractors Training Coaching Certifications Templates
Comprehensive Solutions for Organizations
280 Group Overview

10. © 2014 280 Group LLC. Training Certifications Templates Books Coaching
Individuals: Solutions for Every Career Phase
280 Group Overview

11. © 2014 280 Group LLC.
Why We Commissioned the Study Worked with thousands of PM Executives No comprehensive study or data Further profession Help others be successful

12. © 2014 280 Group LLC.
About the Study >25 comprehensive data sources Millions of dollars of research Hundreds of hours
We are pleased to share this informative study with you!

13. © 2014 280 Group LLC.
What you want out of this webinar Not included today(will be in the future)
-How to be a better Product Manager
-Product strategy
-Product launches TODAY’S TOPIC
How to Massively Optimize Product
Management at Your Company

14. © 2014 280 Group LLC.
Today’s Agenda The rise of Product Management Too many of your products will fail Five reasons for product failure Massive company/career costs Five PM excellence strategies Q&A

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Stay Tuned for the Entire Webinar
Everyone receives a copy of the book!

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One: The Rise of Product Management

17. © 2014 280 Group LLC.
How and when did Product Management come to be? Poll: Type into your Chat panel with your guess

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Product Management is Now Mandatory
1931
1980’s and 1990’s
2013

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Source: CBS News 2013 poll of corporate executives
Fourth MOST Important in Corporate America
1.CEO
2.Senior Executives
3.General Manager
4.Product Manager

20. © 2014 280 Group LLC.
Critical For Time to Market
Source: 2009, Aegis Resources Inc.
Companies that empower product managers are 50% faster to market!

21. © 2014 280 Group LLC.
Executives Highly Influenced
Source: 2012 Team Performance Survey, Actuation
58% of PM’s work directly with CEO, CMO, CFO and VP Sales

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CEO’s Demand PM Report Directly
Source: 2012 Pragmatic Marketing Survey
30% of CEOs have Product Management Organizations reporting directly to them

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PM Present in All Company Sizes
Source: Salary.com 2013
18%
24%
15%
18%
5%
15%
5%
Product Management By Company Size
<100
100-500
500-1k
1k-7.5k
7.5k-15k
15k-50k
50k+

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PM Present Across In All Industries
Source: Salary.com 2013
15%
13%
12%
8%
7%
Product Management by Industry
MFG Durable
Retail & Wholesale
Software & Networking
MFG Nondurable
Healthcare

25. © 2014 280 Group LLC.
Product Managers Are Experienced
Source: Salary.com 2013
67% of PM’s have >5 Years Experience
12%
21%
32%
22%
13%
Zero to One
Two to Five
Five to Ten
Ten to Fifteen
Fifteen+

26. © 2014 280 Group LLC.
Product Managers are Well-Educated
Source: Salary.com 2013
>50% of PM’s have Master’s Degrees
1%
3%
4%
39%
52%
1%
No diploma
High School
Associate's/Certificate
Bachelor's
Master's
Doctorate

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PM Pays Well – up to $210k
Source: Salary.com 2013

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PM Ranked as Top Job
Source: Money Magazine

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PM Well-Positioned To Become Executives
PM
Sales
Customers
Support
Channel
Operations
Executives
Partners
Engineering
Marketing
Press/Analysts

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PM to CEO

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PM to CEO

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PM to CEO

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Apple and Product Management

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Mike Markkula: The ORIGINAL Apple PM

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Proctor & Gamble Requires PM
Source: Gale Group
The last seven CEOs have been former product managers

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Source: LinkedIn June 2014
Huge Opportunity – Massive Job Openings
>28k!

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Can be a VERY Rewarding Job
Source: 280 Group Poll – 30k members 2013
66% of Product Managers motivated by “Delivering Great Products” and “Driving a Vision”

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PM Rising: What You Have Learned
•Product Management is rising
•More important than ever
•Mission-critical

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Two: Too Many of Your Products Will Fail

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What percentage of products fail?

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Answer…
60% to 95%!
Source: Over 15 research studies

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Most Products Fail
“75% of new product development programs fail commercially.”
Source: Griffin, A. and Page, A. L. Journal of Product Innovation Management. 1996

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Most Products Fail
“80% - 95% of new product introductions fail.”
Source: “Returning Insight To The Consumer” - New Products Magazine Dec 2006

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Product Failures: What Have You Learned
•Odds are against your products
•Be proactive against failure
•Pay now or pay later

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Three: Why Products Fail

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Failure Point One: Poor Definition
“Poor definition was cited as single biggest reason products fail to meet market needs.”
Source: “Product Development Best Practices Survey: Report of Findings” Product Development Consulting, Inc. 1996.

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Failure Point Two: Poor Customer Input
“Seven out of ten product failures cases resulted from poor customer input.”
Source: World-Class New Product Development: Benchmarking Best Practices of Agile Manufacturers

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Failure Point Three: No Market Research
“Market research was simply not done in about 75% of new product developments.”
Source: Cooper, R. G., Winning at New Products Accelerating the Process from Idea to Launch 2001

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Failure Point Four: Poor Value Proposition
“Three out of ten products fail because of a poor value proposition.”
Source: Greg Stevens, James Burley, and Richard Divine, “Creativity + Business Discipline = Higher Profits Faster from New Product Development,” The Journal of Product Innovation Management 16 #5 (September 1999), 455 – 468

50. © 2014 280 Group LLC.
Failure Point Five: Variety of Other Factors Marketing? Execution? Competition? Strategy? Timing?

51. © 2014 280 Group LLC. Central point Vision & strategy Whole product Roadmap/requirements Lead groups
Product Management: Buck Stops Here
PM
Sales
Customers
Support
Channel
Operations
Executives
Partners
Engineering
Marketing
Press/Analysts

52. © 2014 280 Group LLC.
Few Survive Without Strong PM 3000 ideas = ONE success 1 in 4 developed get to market 2 of 3 that are launched fail
Source: Source: Stevens, G.A and Burly, J. 3000 Raw Ideas = 1 Commercial Success”. May/June 1997
3000 Ideas
One Successful Product

53. © 2014 280 Group LLC.
Why Products Fail: What You Have Learned
•Poor planning = failure
•Weak PM = poor planning
•Don’t let this happen to you

54. © 2014 280 Group LLC.
Four: Massive Company & Career Costs

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Huge Amount Wasted During Development
“70% of product development life-cycle costs are determined during the crucial product definition phase.”
Source: Committee on Engineering Design Theory and Methodology National Research Council. Improving Engineering Design

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Almost Half of Money Spent Wasted
“46% of all resources allocated to new products by US firms is spent on failed products.”
Source: Stevens, G.A and Burly, J. 3000 Raw Ideas = 1 Commercial Success”. May/June 1997

57. © 2014 280 Group LLC.
What’s it cost your company?
Total # employees
1000
Cost/person working on new products/year (fully loaded)
$150,000
% of employees working on new products
20%
Total Cost
$30,000,000
% working on products likely to fail
0.46
Cost
$13,800,000

58. © 2014 280 Group LLC.
Personal Cost to PM Executives Career trajectory Personal brand reputation Failure to achieve your aspirations Do NOT let this slow you down

59. © 2014 280 Group LLC.
Product Failure: What You Have Learned
•Most products fail
•Huge waste of resources and money
•Poor planning and weak PM is the cause
•This is personal

60. © 2014 280 Group LLC.
So what are you doing to optimize Product Management and be certain your products (and career) will succeed?

61. © 2014 280 Group LLC.
Poll #1
Do you have a specific strategy for optimizing PM at your company? (select one)
•Yes
•No
•Kind Of

62. © 2014 280 Group LLC.
Five: Five Strategies for PM Excellence

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What makes an optimized PM function?
People
Process
Tools

64. © 2014 280 Group LLC.
Strategy One: Assess and Set Goals Gather data and analyze Must cover all three areas
-People
-Process
-Tools Baseline against industry standards Set goals

65. © 2014 280 Group LLC.
Goals are Critical to Succeed Harvard study 3% of graduates earn 10X as much as other 97% Those 3% had clear, written goals

66. © 2014 280 Group LLC.
What Are Your PM Organization’s Goals? Do you have a plan? What do you want to accomplish? What are your metrics? How will you track success?

67. © 2014 280 Group LLC.
Strategy Two: Create a Multi-Phase Plan Not a one-time event CANI (Constant and Never-Ending Improvement) Takes time to achieve world-class PM function

68. © 2014 280 Group LLC.
Example of a PM-Optimization Plan Phase One
-Assess function and implement process improvements
-Clarify roles & responsibilities
-Create Product Management career paths
-Foundational training
-Standardized tools/templates
-Implement coaching program Phase Two
-Measure progress and adjust
-Foundational courses for new PMs who have joined
-Advanced courses – soft skills, leadership, Agile
-Certifications
-Continued coaching/mentoring
-Build Product Management community
-Continued education – monthly webinars/seminars

69. © 2014 280 Group LLC.
Strategy Three: Optimize People Foundational training Advanced training Coaching

70. © 2014 280 Group LLC. Foundational:
-Entire Product Lifecycle Business cases Market/customer needs Early customer programs Launches Marketing End of life
-People/Soft Skills
-Agile
Optimizing people: Skills to Develop Advanced Topics
-Leadership
-Certifications
-Custom Topics

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What percent of Product Managers have received training?

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Almost None
<2%!
Source: Published Training Numbers

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Training Your Team Annual commitment Foundational course to start – full lifecycle Soft skills Agile if appropriate Advanced courses
-Leadership
-Certifications

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Source: Accenture Training ROI study
Training Delivers Measurable Results 17% more productive 20% higher performance levels relative to peers ROI is 353%

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Career Development #1 Retention Factor
“Career development is the number one factor in employee retention, according to a survey of 6,400 employees.”
Source: Sharon Jordan-Evans and Beverly Kaye

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Without Training Employees WILL leave
“Among employees with poor training opportunities, 41 percent planned to leave within a year, whereas of those who considered their company's training opportunities to be excellent, only 12 percent planned to leave.”
Source: Lou Harris & Associates

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How to Choose Training

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Must Be Custom-Tailored to Your Situation One size does not fit all Based on assessment results Areas of most improvement Match process and terms Fits culture and company

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Class Size Makes all the Difference
Source: Journal of Educational Psychology
Small class sizes were associated with significantly higher performance

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Trainers Must Be Actively Doing PM Not professors Not people who only do training At least 10 years experience

81. © 2014 280 Group LLC.
“How To” Skills & Tools “How” not just what Lots of hands-on exercises Templates & skills you can immediately apply

82. © 2014 280 Group LLC.
Training Must Cover Entire Product LifeCycle Flexible framework for your situation Must learn both PM and PMM to be effective Foundation courses should teach everything Learn to manage any product at any stage

83. © 2014 280 Group LLC.
Get Your Team Coaches Fastest way to excellence Leverage experience and successes/failures You are spread too thin

84. © 2014 280 Group LLC.
Who Needs A Coach?
Everyone!

85. © 2014 280 Group LLC.
Coaching Market Growing Massively
Source: MarketData Report
“The $2.4 billion business coaching
market is growing at about 18% per year”

86. © 2014 280 Group LLC.
87% HR Managers: Coaching Value High
Source: Marketing Sherpa Coaching Study
87%
11%
2%
Very High
Somewhat high
Low

87. © 2014 280 Group LLC.
Source: Innergized Solutions
Coaching Has Huge Benefits 67% Increase in Teamwork 71% Increase in Relationships with Supervisors 61% Increase in Job Satisfaction 52% Reduction in Conflict

88. © 2014 280 Group LLC.
Training Delivers 18% Productivity Gain
What if you combine training with coaching?

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Coaching with Training: 88% Gain
Source: Summers, 2004
400% More Effective!

90. © 2014 280 Group LLC.
Coaching Has a HUGE ROI
Source: 2009 International Coach Federation Client Study
Median coaching ROI is 700%!

91. © 2014 280 Group LLC.
Strategy Four: Definition, Process Tools Get clarity & agreement on roles/responsibilities Streamline and upgrade product process Arm Product Managers with good tools

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Almost Half Of Companies Poorly-Defined PM
Source: Team Performance Survey, Actuation
Well-defined
Not well-defined or no PM
48%!

93. © 2014 280 Group LLC.
75% of Companies Don’t Understand PM
Source: 280 Group 2013 survey

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Poor or Non-Existent Product Process Source: Quantum Whisper 2009 PM survey
“30% of companies surveyed didn’t even know what product process was being used.”

95. © 2014 280 Group LLC.
Time Saved Using Templates
Source: HSC 2011
Templates reduce time to completion of more effective documents by 40%

96. © 2014 280 Group LLC.
Strategy Five: Holisitic Change Management Communication and buy-in of plan Clarity on roles and responsibilities Executive support Likely to fail without it Essential for long-term change
Goal: Make REAL change that sticks and has a huge impact on your organization and your career

97. © 2014 280 Group LLC.
McKinsey Study: Change Management Three year study 311,000 respondents 6,800 CEOs 900 Academic Journal Articles

98. © 2014 280 Group LLC.
What percentage of transformations fail? Poll: Type into your Chat panel with your guess

99. © 2014 280 Group LLC.
Percentage of Failed Transformation
Source: McKinsey
70%!

100. © 2014 280 Group LLC.
Failure Due to Non-Holistic Approach
Source: McKinsey
“Only 10% of transformations succeeded where companies did not have a holistic transformation approach.”

101. © 2014 280 Group LLC.
Five Strategies for PM Excellence
•Assess
•Multi-year plan
•Optimize People
•Optimize Process & Templates
•Holistic Change Management

102. © 2014 280 Group LLC.
It’s Our Hope You Have Learned… The rise of Product Management Product failure Five failure factors Massive costs of failure Five PM excellence strategies

103. © 2014 280 Group LLC.
Wrapping Up
103
Free Copy for all Attendees!
www.aipmm.com

104. © 2014 280 Group LLC.
We help companies and individuals do GREAT Product Management and Product Marketing using our Optimal Product Process™ framework.
Mission
280 Group Overview

105. © 2014 280 Group LLC. Assessments & Custom Optimization Plans Consulting & Contractors Training Coaching Certifications Templates
Comprehensive Solutions for Organizations
280 Group Overview

106. © 2014 280 Group LLC.
Q & A
Presenter:
Brian Lawley
CEO & Founder
@brianlawley
contact@280group.com
www.280group.com
+1.408.834-7518 x1
www.aipmm.com

107. © 2014 280 Group LLC.
Drawing!
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Use coupon code: PPMEB100K
Download your FREE copy!
One person wins the entire 280 Group Press series!
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108. © 2014 280 Group LLC.
Join AIPMM!
For a limited time, get a one-year AIPMM membership when you purchase a copy of the Guide to the Product Management and Marketing Body of Knowledge (ProdBOK®). Learn more here: http://bit.ly/1iUknEx.
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109. © 2014 280 Group LLC.
Upcoming Courses
Certified Product Manager®
Nov 17-18, 2014 London, England
Dec 8-9, 2014 – DC Metro Area
Certified Product Marketing Manager®
Nov 19-20, 2014 London, Englang
Dec 10-11, 2014 – DC Metro Area
Click on the dates above for more information.
If you have a team of 10 or more that you want to certify, contact certification@aipmm.com.
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110. © 2014 280 Group LLC.
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Questions?
(408) 834-7518
contact@280group.com
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