The Role of a Product Portfolio Manager: Unlocking Business Growth
As companies grow and expand their offerings, managing multiple products becomes increasingly complex. This is where a product portfolio manager (PPM) comes in – to oversee the entire product portfolio and make strategic decisions that drive business growth.
What is a Product Portfolio Manager?
A PPM is responsible for managing a company’s entire product portfolio, which includes multiple products that are often complementary but distinct. The PPM’s primary goal is to maximize the value of the entire portfolio, rather than focusing on individual products.
Key Responsibilities of a Product Portfolio Manager
The PPM’s tasks are both similar to and distinct from those of a standard product manager. Key responsibilities include:
- Identifying Crossover Functions: The PPM looks for opportunities to consolidate activities and eliminate redundancies across products.
- Identifying Market Opportunities: The PPM analyzes the market to identify gaps and opportunities that align with the company’s goals.
- Addressing Strategic Goals: The PPM develops strategies to achieve business objectives across the entire product portfolio.
- Reducing Product Risk: The PPM identifies potential risks and develops plans to mitigate them.
Assessing Activities: Tools of the Trade
PPMs use various tools to analyze the product portfolio and make informed decisions. These include:
- Boston Consulting Group’s Growth Share Matrix: This tool helps identify high-growth and high-share opportunities.
- GE/McKinsey’s Portfolio Analysis Matrix: This tool assesses competitive strength and industry attractiveness.
- Ansoff Matrix: This tool evaluates market and product dimensions to determine the best growth strategy.
Do I Need a Product Portfolio Manager?
If you have a portfolio of products, the answer is likely yes. A PPM can add significant value by providing a holistic view of your products and making strategic decisions to drive business growth.
Unlocking Business Growth
By understanding the role of a product portfolio manager and leveraging the right tools and strategies, businesses can unlock new growth opportunities and achieve success in today’s competitive market.