Back to the Future

The changes I have observed in business have been dramatic since the first edition of my book was published. The Internet was a fledgling concept at that time and now it has become a fairly standard part of business. Although globalization was a growing phenomenon prior to my first edition, it has also escalated in importance. On the other hand, there have been some constants. Through all the turbulence, there remains a need for entrepreneurial spirit, for an ability to work with and through other people, and for a clear and focused direction. These are the characteristics of a product manager acting as the general manager of a “virtual company.” Product management has long been viewed as one of the more effective organizational forms for multiproduct firms. The advantages are numerous and frequently documented. First, it provides a dedicated champion for a product, brand, or service. Second, a healthy internal competitive environment can be created. Third, by championing a number of offerings, a firm can more quickly respond to shifting customer loyalties. And, finally, an opportunity is provided to readily assess candidates for promotion to higher management levels.

Nevertheless, the effectiveness of product management is contingent upon several factors. If we expect product managers to truly champion brands, they must be engaged in both day-to-day decision issues and in developing the strategic future paths of their offerings. Although some companies have created a hierarchical product management structure to do this, effective product management in the future will result from a horizontal decision-making process. Product managers will play a major role in most product-related decisions, while relying on specialists to carry out many of those decisions. The emphasis will be on matching customer needs with corporate capabilities through the development of specific products and services. Now, to introduce the second edition, I’d like to use the contemporary format (often used in website design) of frequently asked questions (FAQs).