Product Management VS Project Management + Most Common Mistakes and Optimization Tips

In our previous articles, we told you about what product management and project management are. Check them out to make sure you`re aware of the basics to proceed to details.

Today we`ll refine your knowledge in product management by revealing its differences from project management, informing you on the most common mistakes, and sharing tips on avoiding them.

Product management VS Project management

Although these concepts are often used interchangeably, there are significant differences between them. In order to develop a successful product and properly build processes, it is necessary to distinguish between the responsibilities of product management from the project management ones.

Key differences

Product management is associated with the product development through forming an effective strategy, prioritizing initiatives, and making strategic decisions. Basically, product managers focus on business goals, measurable objectives, and desired results. In startups, this role is typically assumed by the founders.

It is around product management that the key goals, needs of customers, and development teams are centered. It performs both external and internal roles, covering technical, commercial, and operational areas.

Project management is rather at the tactical level controlling previously approved and developed plans. Its responsibilities include scheduling, resource management, and task execution.

Project managers come into play only after all the goals and objectives are defined. Project management encompasses project planning, resource allocation, budget management, and quality control. All this plays a crucial role in creating long-term enterprise value.

Similarities

Apart from the identical abbreviation, product and project management have other similar characteristics. First and foremost, they are both cross-functional as each of them deals with different departments within a larger organization.

In addition, both managements have a problem of responsibility without authority. It means assigning someone to a management job without the necessary authorities. Since product and project managers rarely supervise the responsible teams directly, they lack effective communication and consistency.

The way they exchange information, including timing, format, and resources, affects overall efficiency. A single solution to this problem can be a roadmap that visualizes the process from and to.

Overlap

Contrasting one management to another, you may assume they coexist in parallel worlds. However, this is not the case. Frequently, the responsibilities of product and project management can be duplicated and intertwined in the team.

Sometimes the product manager has to delve into the tactical details, the project-based area. In this case, they need to closely interact with each and divide common duties.

Similarly, a project manager can also shift from their tactical role to the more strategic prerogative. Most of the skills needed in project management can be applied in a broader analytical field associated with product management.

It is worth noting that both managements require the same soft skills. Some of them include effective communication, organizational talents, and listening.

Product management challenges

Having grasped the difference between product and project management, let`s get back to examining the former. As you already know, product management is responsible for a more global strategic field. Therefore, to move to lower tactical levels of the project, it is important to get the hang of the product management first.

Product management is a complex area that covers multiple business processes. To learn how to effectively manage a product, it is worth studying common mistakes that can ruin the overall picture.

To keep things illustrative, we attach a survey of product managers below. It displays the answers to the question about the main challenge of product management in the company.

Competing goals

Half of the respondents consider this the major difficulty when managing a product. And there`s something behind that. The goal is a startup's guide to a bright future. Normally, a product can have several goals that may conflict with each other. Let's say the founder pursues one goal, and investors or partners — another. In this case, they`re likely to come into serious conflicts and even ruin the organization.

However, any disagreements should not be the failure cause. After all, you have at least one single goal — to earn.

The hardest thing is to determine the priority goal of the product. To prevent disputes, find out what results stakeholders expect and make sure they understand the purpose of the enterprise as a whole. Arrange a meeting where everyone will present arguments in favor of a particular goal. By joint efforts, choose the product goal that best correlates with the startup's global mission.

Lack of time

Whether it`s time, money, or technology, shortage of resources is a key obstacle in almost half of the cases. You might assume the product manager simply needs to prioritize between important and unimportant things. But this is not the case. Anyone can do it. The real challenge is to prioritize things that have about the same significance. Often this is done improperly which results in a waste of time and hence money.

In order not to lose time, the product managers or the founders themselves need to possess excellent skills in planning and visionary. Though such prioritization shouldn`t be up to one single person. Consult with the team to find a compromise solution.

Lack of role clarity

This is the stumbling block of product management in a third of cases. Unclear responsibilities and tasks spoil the entire product development process.

The root cause can be traced to disparate roles, processes, and outcomes. The problem is that they are positioned as separate initiatives rather than a synchronized workflow. Under such chaotic conditions, it is impossible to achieve well-established communication and effective task performance.

To avoid blurred roles in the team, you should identify key workflow scenarios. For each of them, find the "cracks" that impede product management.

Often, several scenarios later add up to one. Each subsequent scenario should similarly have its own structure, reflect the responsibilities of each employee, and anticipate potential problems.

Inability to influence management

A third of respondents noted the management rigidity as a major problem. Such "petrification" of processes hinders the favorable development of product management.

There are several ways to overcome it. First of all, determine the individual motives of the employees that can slow down the process. A great product manager should have high emotional intelligence to understand the personal motives of team members.

How to optimize product management?

Well, you`re almost ready to become a great product manager. Finally, we`ll provide you with recommendations to refine product management processes. And then it's up to practice. The more you try, the more you improve your skills in managing a product.

Develop an optimization plan

An optimization plan is a must at every stage of product creation and promotion. Traditionally, it should be based on the feedback of your customer segment. Keep track of what users are not satisfied with and what they, on the contrary, like. In accordance with their requests, build an optimization plan. It may include adding new parts of the product or removing existing ones. Most often, such a process requires more work and resources.

Educate the team

Most of you must be well aware of what product management is and what value it has. So why should the founders explain obvious things? The fact is that, since this is still a new field, not everyone realizes the importance of product management. To many, it seems like some kind of excess because startups worked even before it emerged. However, product management emerged for a reason, and neglecting it can destroy the entire development process.

To avoid this, instill the values of product management in the team. Arrange workshops, invite experts, and develop a corporate culture.

Build a clear process

At first glance, product management seems to be something complicated. And we`ll probably disappoint you: this is really not a piece of cake. Nevertheless, in order not to complicate it more, build transparent processes for the entire team. To do this, structure all the stages, assign responsibilities, and don`t forget about visualization. By displaying the entire product management in the form of diagrams and graphs, you make the workflow much easier.