Product Manager vs. Product CEO: Are These Roles Compatible?

Contents:

• When a product manager takes on the role of chief product officer
• Inappropriate analogies: product and CEO in different planes
• Product manager responsibilities: how to clearly define the boundaries of the role
• Avoiding burnout on the path to mini-CEO: inspiration, ambition, and development

Elizaveta Bogdanova, entrepreneur and former product owner at companies such as Sber and Yandex, and author of the channel "Liza's Whims", shared her opinion on when a product manager can truly take on the role of CEO.

It's hard not to notice that a product manager covers a wide range of responsibilities: they motivate the team, shape strategy, and strive to achieve ambitious goals. In this regard, the statement is often heard: "a product manager is a kind of mini-CEO." However, in reality, this analogy is not always justified.

What does the phrase "I have everything under control" really mean? Should a product manager show initiative and take responsibility for the strategic direction of the product? In what cases does a product manager act as a full-fledged "co-pilot" in an organization, and when are they simply an employee who has been assigned additional tasks without the appropriate authority?

In this article for the Skillbox Media "Management" editorial team, I will try to answer these questions. This can be useful for both experienced product managers and newcomers just starting out in the profession.

• When a product manager effectively assumes functions similar to those of a product CEO.
• There are several circumstances when it is inappropriate to compare the role of a product manager with the position of a CEO. First, a product manager does not have the same degree of responsibility for all aspects of the business as a CEO. The CEO makes key decisions that affect the entire organization, while a product manager focuses primarily on product development and strategy.

  Second, the CEO is responsible for the financial stability of the company and its long-term strategic direction, while a product manager is limited to the scope of a specific product or product group. This means that a product manager typically does not participate in matters related to investments, resource management, or external relations.

  Furthermore, the CEO has a significantly higher level of interaction with external partners and customers. The CEO represents the company at a high level and is involved in shaping its image. The product manager, in turn, interacts with users and stakeholders, but their role does not include responsibilities for negotiating at the top management level.

  Finally, it is worth noting that the CEO has a much broader range of responsibilities, including team management, shaping corporate culture, and strategic planning. The product manager, while playing an important role in the team, is more focused on specific aspects of the product's development and success in the market. Therefore, when discussing these two roles, it is important to consider the differences in their responsibilities and impact on the company.

• What specific tasks and responsibilities are the responsibilities of a product manager?
• How to avoid burnout while striving to become a mini-CEO

When a product manager takes on the responsibilities of a chief product officer

Comparing the role of a product manager to the CEO position is not always correct, but in some cases, such a comparison can be appropriate. Here are three typical situations when a product manager effectively acts as a "mini-CEO" for their product.

A small team of specialists or a startup. A startup can even emerge within a large company when a product is being developed whose value still needs to be proven. In such situations, the team consists of a limited number of participants, resources are extremely limited, and each member is forced to fulfill several roles simultaneously. The product manager becomes not only an analyst and strategist, but also a source of inspiration and tester, while not forgetting their primary responsibilities.

Management delegates more management authority. When the product makes strategic decisions, is involved in the hiring process, and is responsible for important situations, their influence becomes comparable to that of the CEO.

The product is now perceived as an integral part of the business, and not just another function. When an initially small part of a larger project evolves into an independent product with its own financial metrics, budget, and key performance indicators, and the product manager takes responsibility for all aspects and defends their decisions to stakeholders or investors, they can be considered the CEO of this product. In this context, it makes sense that he begins to focus on product development and shaping his new role.

For example, I am involved in business development and product promotion at a startup, which means that all customer interactions go through me. Therefore, in this situation, it is quite appropriate to call myself the CEO of the product.

Inappropriate Analogies: Product and CEO in Different Dimensions

The responsibilities of a product manager cover a wide range of tasks, which can sometimes make it difficult to determine when a product manager is entitled to act as a mini-CEO, and when such a comparison is not entirely appropriate. Here are a few examples where this can create certain obstacles.

A product manager does not have the authority to make major decisions. For example, they may be assigned product responsibility, and perhaps the word "leader" appears in their job description, but actual decisions regarding strategy, recruitment, and financial planning are made by another party. In this situation, the product manager should not be called the product's CEO. If they do consider themselves CEO, there's a chance they will eventually begin to feel incompetent and dissatisfied with their role.

A product manager is responsible for a specific function, not the entire product. If their area of ​​responsibility is just a fragment of a larger mechanism, such as self-checkout at Magnit or the shopping cart function in e-commerce, they cannot be considered the product's CEO. They play a significant role, but they do not manage the entire system.

A product manager assumes responsibilities that have not been delegated to them. For example, they may take on tasks assigned to colleagues who are unable to complete them on time, or they may seek to take on more complex projects. In general, this approach can be beneficial for career advancement, but without a formal delegation of authority, this product manager finds himself under enormous pressure, which negatively impacts his main job. Ultimately, he may not achieve significant results that could bring him satisfaction.

If you intend to become If you're a product manager or already in this role but are having trouble understanding your responsibilities, I'll try to shed some light on these issues in the next section.

Product Manager Responsibilities: How to Clearly Define the Role's Boundaries

Being a product manager provides a unique opportunity to be directly involved in product creation, but with this privilege comes certain risks. At some point, it's easy to become overwhelmed, taking on too many other people's responsibilities in an effort to meet KPIs. Let's look at how to avoid this situation.

A product manager's daily work typically focuses on three key aspects:

• Analyzing user behavior and developing hypotheses.
• Collecting information, processing it, and prioritizing tasks.
• Aligning the strategic approach with the development, design, and marketing teams.

In some cases, a product manager may have deep expertise in one area, for example, consumer research. This isn't a problem if there's a team nearby that can handle other aspects of the work.

Establishing clear boundaries of your responsibilities is paramount. First of all, it will help you avoid unnecessary workload and focus on what matters most. In addition, it will make it easier for your manager to evaluate your work, since it will become clearer which aspects exactly you are responsible for. To clearly define these boundaries, you can classify tasks into three levels:

• Scope of your responsibilities. What processes are you responsible for? What expectations do you have, and what results do you need to achieve?
• Your zone of influence. Which processes and teams are so intertwined with you that their activities would stop without your intervention?
• Your area of ​​aspiration. In what direction do you want to move? What rights and opportunities do you want to take into your own hands, but are not yet able to do so?

This structure will help you determine when you are truly achieving results, and when your desire is simply to appear useful. This is important not only for self-analysis, but also for your further development. If you find yourself wanting to have more influence, it's worth discussing this with your manager and gradually increasing your responsibilities.

Avoiding Burnout on the Road to Mini-CEO: Inspiration, Ambition, and Development

There are plenty of resources on how to clearly define your responsibilities, and you can even discuss this with managers and HR professionals in numerous meetings. However, sometimes we still fall into the same traps. As someone who has always strived for a higher position, I understand this situation all too well.

Here are some tips that may be helpful in situations where time seems to be constantly slipping away:

• Set realistic goals. Sometimes it seems that high ambitions automatically lead to career advancement. However, this is not entirely true. Your advancement depends not on ambitions alone, but on successfully achieving the goals set by, for example, your superiors or shareholders. It is this serious work that helps you establish yourself as a reliable and effective specialist.
• Connect with those who have already achieved success. In some companies, HR fosters an atmosphere in which managers are happy to share their experiences with those just beginning their path to success. This can happen through mentoring or brief phone conversations. During such meetings, you have the opportunity to ask questions, discuss your concerns, and receive detailed answers. These experienced colleagues can offer valuable advice on how to move forward.
• Understanding the impact of your actions and your scope of influence is of paramount importance. If your team is energized, your goals are inspiring, and the needs of both management and clients are met, then successfully resolving emerging challenges only enhances your sense of importance. These circumstances are clear signs that you're on the right track.

Focus on areas where your involvement can make a real difference. This focus not only prevents burnout but also allows your contribution to be noticed.

Based on my own experience, I could say that at a certain point in time, I was striving for massive expansion. While working at Sber, I dreamed of achieving instant success in all areas: bringing a product to market, implementing an internal mobile app, and organizing releases of a desktop solution used by the entire bank. However, this approach led to a scattered focus and a loss of concentration—even though I was busy with many things, I was unable to achieve tangible results.

Defining key areas and goals on a quarterly basis has proven to be significantly more productive. This involves selecting 1-2 priority areas, formulating clear objectives, setting metrics and deadlines, and then focusing efforts on those elements. Concrete work results are much more meaningful than superficial involvement in the development of several products at once.

Materials from Skillbox Media may be very useful for you.

• How can one become a product manager and does it require a special education?
• A product manager at an international company shares tips on how a product manager can find a job in the United States.
• Starting at a new company can be a real challenge for a product manager. To avoid confusion and successfully adapt, it is worth referring to a number of recommendations and using a useful checklist. Here are nine tips to help you start off confidently in your new role.

  1. Research the company. Before diving into your responsibilities, it's important to understand what your new organization does, its values, and its culture. Familiarize yourself with the products the company offers and try to grasp its strategy.

  2. Identify Key Stakeholders. Find out who the key players on and off the team are that you'll be interacting with. Building good relationships with them will help you get up to speed faster.

  3. Dive into the Product. Make sure you familiarize yourself with the existing product or services. A thorough examination of the current product's state will allow you to identify its strengths and weaknesses.

  4. Understand Current Projects. Analyze what the team is currently working on. Understanding current challenges will help you better adjust your actions and make the necessary changes.

  5. Set Short-Term Goals. Determine what you want to achieve in your first months on the job. These can be both personal and team goals that will help you focus on important aspects.

  6. Communicate with colleagues. Don't be shy about asking questions and sharing your thoughts. Open communication with people from different departments will help you better understand the internal processes and culture of the company.

  7. Study analytics. Understanding how your company tracks product success and what metrics are used is crucial. This will give you the opportunity to evaluate the effectiveness of your work.

  8. Be open to learning. Don't be afraid to admit that you don't know something. A willingness to learn and develop will help you adapt faster and become a valuable member of the team.

  9. Maintain a balance. It is important not only to work actively, but also to find time to recharge. Monitor your well-being to avoid burnout in a new place.

  By following these recommendations, you can more easily go through the adaptation process and start your career at a new company with confidence.

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