Imagine a new product is to be launched. The product manager will focus on the ‘what’ and ‘why’ behind the product. They ensure customer expectations are met and the product is aligned with business goals. On the other hand, the product owner is in charge of the ‘how’—executing the planning to bring these ideas to life.
Their responsibilities are complementary and often overlap, which is why, at times, these terms are used interchangeably. Yet, their roles and goals are different, as are their skills and aptitudes.
In this article, we will examine the key differences between product owners and managers and define the roles and responsibilities for each. We will also examine ways to improve the coordination between the two to make product execution seamless.
Who is a product manager?
Product managers are the visionaries who define a particular vision and develop the strategy to implement it. The role spans the entire product life cycle – from market research and consumer discovery to product delivery. A leader in the true sense, the product manager also builds and aligns the team around a product roadmap. They are central to any product’s management and development.
A jack of all trades, the product manager is expected to simultaneously be a product visionary, strategic leader, and even a customer advocate. He also looks at some product roadmap examples to understand which type best suits his needs. There are various metrics product managers use to measure the success and impact of the product. A product manager generally has the following functions:
- Consumer research: Assists in formulating the go-to-market strategy and interprets market trends and insights to understand users’ needs.
- Defines product vision: Formulates product vision and long-term strategy. Follow some product strategy examples to create the right framework.
- Budgeting: Factors in expenses of creating, delivering, and updating the product.
- Delivers unique features: Decides the features to build next and delight customers.
- Supports sales and delivery teams: Trains both teams about product features and uses.
- Creates team synergy: Champions team members and ensures alignment around the product roadmap.
Who is a product owner?
The role of a product owner is crucial. They are responsible for managing the product workflow and thereby maximizing its value. They turn the product manager’s strategy into clear tasks and work with different teams to bring the organization’s vision to life.
The role is relatively recent and traces back to organizations adopting Scrum and Agile practices. That’s why they are mainly part of setups that follow agile development. A product owner’s responsibilities can be summarized as follows:
- Manage backlog: Create production processes for the development team to clear the backlog.
- Coordinate and align development: Attend scrum meetings to keep the team on course with the product roadmap.
- Organize demos: Based on market analysis, create demos for development and sales teams.
- Participate in testing: Gets involved in product testing and iterations.
- Create user stories: Develop user stories based on customer issues, prioritize these stories, and arrange them in the product backlog.
- Provide feedback: Coordinate with the product manager on the product roadmap and give feedback.
Let’s move on to exploring the differences between the two roles in greater detail.
Product owner vs. product manager: Key differences
The common link between managers and owners is the ‘product.’ Both roles are instrumental in any development process. However, both perform unique functions in an agile organization and differ in several ways:
| Function | Product Manager | Product Owner |
|---|---|---|
| Role | Strategic role with a focus on long-term vision | Tactical role with short to medium-term focus |
| Scope of Work | High-level and long-term, defines the “what” and “why” of the product | More detailed and short-term, focuses on “how” the product vision is executed |
| Decisions | They need to make strategic decisions that impact the overall product and its success | They need to make decisions within their project execution scope |
| Key Responsibilities | Defines features, sets product goals, aligns with business value, and prioritizes based on customer needs | Manages the product backlog, defines user stories, and ensures timely delivery by the development team |
| Skills and Qualifications | They need a mix of business acumen, market research skills, technical know-how, communication skills, and need to closely work with all the stakeholders | They need to be organized, detail-oriented, and agile-focused |
| Stakeholder Interaction | Works closely with executives, marketing, sales, engineering, and customers | Acts as a key bridge between development teams and stakeholders |
| Market Research | Leads customer research and competitive analysis to shape product strategy | Uses stakeholder and user feedback to refine product features and stories |
| Budgeting and ROI | Manages budgeting, pricing strategies, and revenue goals | Not responsible for budgeting; focuses on execution |
| Goals | To create a successful product that meets customer needs and provides value for the business. | To ensure that the team delivers user stories and features on time and according to customer needs. |
| Challenges and Solutions | They face a challenge of meeting the market demands by aligning the vision and also managing cross-functional team communication. To overcome this challenge, they rely on regular market research, using effective channels of communication with team members, and also by creating an adaptive product roadmap. | Some of the challenges faced by product owners include aligning the teams to the shared goals, conflict resolution with multiple stakeholders, and deciding on the priorities of the features to be released. They overcome by prioritizing the backlogs, having regular meetings with stakeholders to clarify the pain points, and focusing on delivering value. |
| Success benchmarks | NPS, CSAT, Revenue Churn | Completed stories and performance metrics for the development team |
Now that we have a general idea of the differences between product managers and owners, let’s classify their responsibilities and capabilities next.
How to improve collaboration between product managers and product owners?
While the roles and responsibilities of product managers and product owners vary, it is crucial to have strong collaboration between them for project success. Ensuring that the two roles are in sync can improve workflow and help an Agile process function seamlessly. Here are some ways to enhance collaboration between the two:
- Establish clear roles and responsibilities: Overlapping responsibilities often lead to conflict. Clearly define the roles, such as high-level strategy and product vision for product managers, and product roadmap execution for product owners.
- Encourage open communication: Regular communication between both roles is crucial to ensure that both are on the same page. Schedule weekly check-ins and stand-up meetings, and have shared documentation to ensure a seamless journey.
- Create a feedback loop: Feedback is vital for continuous improvement and ensuring the product meets user needs. Both roles should engage in regular retrospectives to evaluate what is working and improve collaboration.
- Align roadmap priorities: Hold joint product roadmap meetings to ensure alignment and avoid miscommunication about feature prioritization. This will ensure that the long-term goals are aligned with actionable tasks.
For example, for an SaaS company building a new analytics dashboard, the product manager defines the long-term goal: to improve user retention by giving customers more insight into their usage data. The product owner translates this into actionable features for the development team, such as customizable charts and real-time metrics. They hold weekly check-ins and share planning sessions to stay aligned on priorities and make quick decisions on trade-offs. As a result, they release the new feature set ahead of schedule, leading to an increase in user engagement within the first month.
When these roles work well together, the result is not just a product that meets business goals but also delivers real value to users.
Can one person perform both functions?
A product manager and product owner can indeed be one person. With an overlap in responsibilities, one single person can perform both functions. Due to a lack of resources, a product owner may be expected to take up strategic responsibilities. The creation of a product owner’s role also depends on the maturity and size of the organization and whether it has adopted Scrum and agile practices.
Multi-tasking may be a natural trait of several team leaders, but when it comes to these two roles, they are unique functions and two full-time jobs. While a product owner focuses on internal communication within the production team, the product manager also needs to handle external communication. Similarly, the product manager focuses on products to be developed while the product owner ensures the development team is aligned to build these products. Burdening one person with both these roles may not be beneficial for the long-term goals of an organization.
Conclusion
The roles of a product manager and a product owner are not PM vs. PO but are two sides of the same coin. They must work together to make product development seamless and align it with both the organizational objectives and consumer needs.
To ensure smooth collaboration between both, it is crucial to establish clear roles and responsibilities, encourage open communication, create a feedback loop, and align priorities. When they operate in harmony, they can drive innovation, improve efficiency, and deliver a product that truly meets customer needs.
If you’re looking for software that is compatible with Agile practices and allows dividing tasks based on the roles of product owner vs product manager, consider using Amoeboids’ Roadmap and Idea Portal App For JSM, which can help you create roadmaps, organize your workflow and allot tasks to different team members quickly and efficiently.
FAQs
What is the primary difference between a product owner and a product manager?
Product managers play a broader, strategic role by defining the overall product vision, long-term strategy, and go-to-market plans through market research. In contrast, product owners focus on tactical execution within Agile teams, working closely with developers to implement the vision and manage day-to-day tasks.
Which role is more strategic, Product Owner or Product Manager?
A product manager is inherently more strategic, focusing on market trends, competitor analysis, and aligning the product with long-term business objectives. Product owners, meanwhile, concentrate on tactical execution within an Agile framework, making decisions that impact the short-to-medium term.
How do the responsibilities of a product owner differ in Agile methodologies?
In Agile, the product owner manages and prioritizes the product backlog, defines and communicates user stories, and acts as the primary link between stakeholders and the development team. They also oversee product demos and continuously refine the product based on feedback, ensuring the iterative process meets evolving requirements.
What skills are most valued in product managers?
Key skills for product managers include strategic thinking, market research, and data analysis, along with strong communication and business acumen. These skills enable them to align product development with business goals and drive long-term growth effectively.
Can a product manager also act as a product owner?
While one individual can fulfill both roles, it is generally not recommended for larger organizations or complex products because each role demands full-time focus—strategic planning versus tactical execution. In smaller startups or simpler projects, combining the roles might be necessary, provided clear boundaries are maintained.
How do product owners and product managers impact business outcomes?
Product managers shape long-term business outcomes by aligning the product with overall strategy and identifying market opportunities, while product owners ensure efficient execution and high-quality deliverables through Agile practices. Together, they balance strategic direction with operational efficiency to drive significant business success.
