Escaping the Build Trap: How Effective Product Management Creates Real Value

by Melissa Perri

Consider an insurance company. The products for an insurance company are what they sell to customers: car insurance, home insurance, life insurance, and so on. I buy car insurance because it provides me with peace of mind in case I get into an accident—that’s value. Having an iPhone app that allows you to manage your car insurance, for example, is only a piece of that product’s value stream. That app can help get me more information on my insurance policy or find options if I get in an accident. This functionality is valuable to me, but the app on its own is not enough value. I still need the car insurance product. You can still have a product manager owning that iPhone app’s experience, but you must make sure that they are part of the larger division that holds the true value—the car insurance division. This structure makes it possible to set strategy at the division level, with the product manager able to execute on product initiatives that tie to their product. Keeping the strategy and the value execution together is key. This approach allows you to really evaluate the work happening on your teams and to make sure it’s essential to achieving your strategy.