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Developing product-management leadership | McKinsey

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Four levers can help broaden your approach to product-manager leadership training." name="twitter:description"/><meta content="Article" property="contenttype" name="contenttype"/><meta content="https://www.mckinsey.com/~/media/mckinsey/industries/technology%20media%20and%20telecommunications/high%20tech/our%20insights/the%20product%20management%20talent%20dilemma/the-project-management-talent-1536x1536-400.jpg?mw=677&amp;car=42:25" name="twitter:image"/><meta content="The product management talent dilemma" name="twitter:image:alt"/><meta content="true" name="mobileready"/><meta content="public" name="accesslevel"/><meta content="false" name="excludefromclientlink"/><meta content="article" name="articletype"/><meta content="Chandra Gnanasambandam | Martin Harrysson | Shivam Srivastava | Vaish Srivathsan" name="authors-name"/><meta content="2018-11-28T00:00:00Z" name="itemdate"/><meta content="High Tech, Telecoms &amp; Internet | Article | November 28, 2018" name="searchresults-tags"/><script type="application/ld+json">{"@context":"https://schema.org","@type":"Article","url":"https://www.mckinsey.com","publisher":{"@type":"Organization","name":"McKinsey & Company","logo":{"@type":"ImageObject","url":"https://www.mckinsey.com/~/media/Thumbnails/Mck_Logo"}},"mainEntityOfPage":{"@type":"WebPage","@id":"https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/the-product-management-talent-dilemma"},"datePublished":"2018-11-28T00:00:00Z","dateCreated":"2018-12-14T16:19:54Z","dateModified":"2018-11-28T00:00:00Z","heading":"The product management talent dilemma","image":"https://www.mckinsey.com/~/media/mckinsey/industries/technology%20media%20and%20telecommunications/high%20tech/our%20insights/the%20product%20management%20talent%20dilemma/the-project-management-talent-1536x1536-400.jpg","description":"Product managers are critical to software companies but often neglected from a talent-management perspective. 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data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="AnchoredHero" class="ArticleDefault_mck-c-article-default__SfYQE"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-article-default ArticleDefault_mck-c-article-default__parallax-container__fZ7Iq"></div><div class="ArticleDefault_mck-c-article-default__gradient__Uu21n"></div><div class="ArticleDefault_mck-c-article-default__wrapper-content__XOe9C"><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing mdc-u-grid mdc-u-grid-col-lg-12"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-col-lg-start-1 mdc-u-grid-col-lg-span-10"><div><h1 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-2 mck-u-animation-slide-down ArticleDefault_mck-c-article-default__heading__bv6rL"><div>The product management talent dilemma</div></h1></div><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-10 mck-u-animation-blur-in-800 ArticleDefault_mck-c-article-default__description__sjoe9"><div><time datetime="2018-11-28T00:00:00Z">November 28, 2018</time> | Article</div></div></div></div></div></div></div><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing mdc-u-grid mdc-u-grid-gutter-xxl"><section data-layer-region="article-body-header" class="mdc-u-grid mdc-u-grid-col-md-12 mck-u-animation-blur-in-400 byline-share-container"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-8 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-8 mdc-u-ts-9"><span> </span><span class="AuthorsByLine_mck-c-authors-byline__author__XdrlD"><span class="AuthorsByLine_mck-c-authors-byline__no-wrap__Ced0j"><a data-component="mdc-c-link" href="/our-people/chandra-gnanasambandam" class="mdc-c-link-inline___7DRrt_2734c4f mdc-c-link-inline--secondary___YKoOK_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Chandra Gnanasambandam</span></a> </span></span><span class="AuthorsByLine_mck-c-authors-byline__author__XdrlD"><span class="AuthorsByLine_mck-c-authors-byline__no-wrap__Ced0j"><a data-component="mdc-c-link" href="/our-people/martin-harrysson" class="mdc-c-link-inline___7DRrt_2734c4f mdc-c-link-inline--secondary___YKoOK_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Martin Harrysson</span></a> </span></span><span class="AuthorsByLine_mck-c-authors-byline__author__XdrlD"><span class="AuthorsByLine_mck-c-authors-byline__no-wrap__Ced0j"><a data-component="mdc-c-link" href="/our-people/shivam-srivastava" class="mdc-c-link-inline___7DRrt_2734c4f mdc-c-link-inline--secondary___YKoOK_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Shivam Srivastava</span></a><span>  </span></span></span><span class="AuthorsByLine_mck-c-authors-byline__author__XdrlD"><span class="AuthorsByLine_mck-c-authors-byline__no-wrap__Ced0j">Vaish Srivathsan</span></span></div><div class="mdc-u-grid-col-md-start-8 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-8 mdc-u-grid-col-lg-end-11 ArticleContent_mck-c-article-content__share-tools__kWRRw"></div></section><section class="mdc-u-grid mdc-u-grid-col-md-12 mck-u-animation-blur-in-400"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11"><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-5"><div class="mck-u-links-inline">Despite product managers&rsquo; central roles in software organizations, they are often neglected from a talent-management perspective. Four levers can address this industry-wide challenge.</div></div></div></section><main data-layer-region="article-body" class="mdc-u-grid mdc-u-grid-gutter-xxl"><div class="mdc-u-grid mdc-u-grid-col-1 mdc-u-grid-col-md-12"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11"><div class="mdc-o-content-body mck-u-dropcap"><div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="DownloadsSidebar_mck-c-downloads-sidebar__iFmyt mck-o-xs-right-span"><div data-layer-region="downloads-right-rail"><h3 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-c-heading--border___K8dj3_2734c4f"></h3><div><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f"><a data-component="mdc-c-link" href="#/download/%2F~%2Fmedia%2Fmckinsey%2Findustries%2Ftechnology%20media%20and%20telecommunications%2Fhigh%20tech%2Four%20insights%2Fthe%20product%20management%20talent%20dilemma%2Fthe-product-management-talent-dilemma-vf.pdf%3FshouldIndex%3Dfalse" class="DownloadsSidebar_mck-c-downloads-sidebar__download-link__fPqFQ mdc-c-link___lBbY1_2734c4f" target="_self" data-layer-event-prefix="Download Link" data-layer-action="click" data-layer-report-type="" data-layer-file-name="the-product-management-talent-dilemma-vf" data-layer-report-name="the-product-management-talent-dilemma-vf&gt;"><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mdc-c-icon--size-md___yi5fA_2734c4f mck-download-icon"></span><span class="mdc-c-link__label___Pfqtd_2734c4f"> (PDF-1 MB)</span></a></div></div></div></div> <p><strong>Product management</strong> remains one of the most critical roles for any company for which software is a core growth driver. Amid the growing importance of data in decision making, an increased customer and design focus, and the evolution of software-development methodologies, the <a href="/industries/technology-media-and-telecommunications/our-insights/product-managers-for-the-digital-world">role of the product manager has evolved</a> to influence every aspect of making a product successful. As a result, CEOs and technology leaders often identify the role of product manager as one of their top talent priorities. Paradoxically, results from the McKinsey Product Management Index reveal that companies are underinvesting in this crucial talent pool.</p> <p>The McKinsey Product Management Index is a survey of product managers at leading software companies to understand the capabilities and enablers that create top-performing product managers (Exhibit 1). This research surfaced systemic gaps around software-<a href="/featured-insights/talent-management">talent management</a>; in fact, fewer than half of the product managers feel prepared to play the roles expected of them or grow into future product leaders.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-inline-module-container mck-o-md-center"><div class="mdc-u-grid mdc-u-grid-gutter-lg mdc-u-grid-col-sm-1 mdc-u-grid--align-start mdc-u-mb-3 GenericItem_mck-c-generic-item__sGwKL"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-xs GenericItem_mck-c-generic-item__content__gq1m0"><div class="mck-c-eyebrow mdc-u-ts-10"><span> 1</span></div></div></div><div class="mck-u-inline-module-border-top mck-u-inline-module-border-bottom"><picture data-component="mdc-c-picture" class="Exhibit_mck-c-exhibit__image__pyIDm"><source media="(min-width: 768px)" srcSet="/~/media/mckinsey/industries/technology%20media%20and%20telecommunications/high%20tech/our%20insights/the%20product%20management%20talent%20dilemma/svgz-pm-talent-dilemma-ex1.svgz?cq=50&amp;cpy=Center"/><img alt="Five core capabilities, supported by an effective operating model, create the conditions for top-performing product managers." src="/~/media/mckinsey/industries/technology%20media%20and%20telecommunications/high%20tech/our%20insights/the%20product%20management%20talent%20dilemma/svgz-pm-talent-dilemma-ex1.svgz?cq=50&amp;cpy=Center" loading="lazy"/></picture></div><div class="mck-u-sr-only"></div></div> <h2>Product managers spend time across a range of critical areas and influence every part of the product</h2> <p>The McKinsey Product Management Index highlights the wide range of activities that demand the attention of product managers. The days and weeks of an average product manager are fragmented, which requires they be good at wearing multiple hats and prioritizing ruthlessly (Exhibit 2).</p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-inline-module-container mck-o-md-center"><div class="mdc-u-grid mdc-u-grid-gutter-lg mdc-u-grid-col-sm-1 mdc-u-grid--align-start mdc-u-mb-3 GenericItem_mck-c-generic-item__sGwKL"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-xs GenericItem_mck-c-generic-item__content__gq1m0"><div class="mck-c-eyebrow mdc-u-ts-10"><span> 2</span></div></div></div><div class="mck-u-inline-module-border-top mck-u-inline-module-border-bottom"><picture data-component="mdc-c-picture" class="Exhibit_mck-c-exhibit__image__pyIDm"><source media="(min-width: 768px)" srcSet="/~/media/mckinsey/industries/technology%20media%20and%20telecommunications/high%20tech/our%20insights/the%20product%20management%20talent%20dilemma/svgz-pm-talent-dilemma-ex2.svgz?cq=50&amp;cpy=Center"/><img alt="Product managers must easily change gears and ruthlessly prioritize to support a vast number and range of activities." src="/~/media/mckinsey/industries/technology%20media%20and%20telecommunications/high%20tech/our%20insights/the%20product%20management%20talent%20dilemma/svgz-pm-talent-dilemma-ex2.svgz?cq=50&amp;cpy=Center" loading="lazy"/></picture></div><div class="mck-u-sr-only"></div></div> <p>Modern product managers are involved in a wide range of decisions. For example, nearly 80 percent of product managers actively participate in design activities, over 80 percent are involved in go-to-market decisions, and nearly half are involved in pricing decisions. Additionally, 60 percent of product managers have basic analytics skills that enable them to dive into metrics and draw insights without relying on analysts.</p> <h2>Talent management is a pervasive gap</h2> <p>Despite the central role that a product manager plays, the talent-management practices associated with this function are surprisingly underdeveloped. This gap is evident across the industry—at large software companies in Silicon Valley, early-stage tech companies, and incumbents in other industries that are becoming more software oriented.</p> <p>As an example, only 35 percent of the product managers have clarity on what it would take to advance in their organizations, roughly the same number feel sufficiently coached and mentored and around 20 percent say that their companies have highly effective programs to identify and retain the best talent.</p> <p>We observe several underlying drivers for this gap in talent development. First, there are limited roles that involve managing people and teams in the product organization, and unlike in engineering, companies have not consistently defined an expert track for product managers. This can prevent product managers from growing or feeling that their careers are progressing unless they are managing more people.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-disruptor1up mck-o-md-center mck-u-inline-module-border-top mck-u-inline-module-border-bottom mck-u-screen-only" data-layer-region="disruptor-1up"><div class="mdc-u-grid mdc-u-grid-gutter-md mdc-u-grid-col-lg-12 mdc-u-grid-col-md-12 "><div class="mdc-u-grid-col-md-span-12"><header data-component="mdc-c-header" class="mdc-c-header"><div class="mdc-c-header__block___i1Lg-_2734c4f"><h3 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f"><div>Would you like to learn more about our <a href="/sitecore/service/notfound.aspx?item=web%3a%7b8a208d56-3227-43f9-95ee-9fb263b6c5f7%7d%40en">High Tech Practice</a>?</div></h3></div></header><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--display-column___X0HDD_2734c4f mck-c-disruptor1up__content Disruptor1Up_mck-c-disruptor1up__content--links__VV4lE mdc-u-grid-gutter-md"><a data-component="mdc-c-link" href="/industries/technology-media-and-telecommunications/how-we-help-clients/software-product-management-and-development" class="mdc-c-link-cta___NBQVi_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Visit our Product Management & Development page</span><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mck-link-arrow-right-icon"></span></a></div></div></div></div> <p>Additionally, the leadership development model for product management—that is, the behaviors and mind-sets that product managers are expected to display at various levels—is often poorly articulated. As a result, the only way to measure product managers is on the success of their product. Product managers tell us that they believe career progression at their companies is a matter of being in the right place at the right time to become part of a hit product rather than of doing the right things.</p> <p>What is more, product management primarily requires learning on the job, but few software companies have put in place mechanisms to support this learning. Product managers often start in other functions, such as engineering, design, or marketing, and bring a specific set of skills from their previous roles. But this transitioning talent needs support to wear the multiple hats required of product managers.</p> <p>Compounding the issue is the fact that product managers make up a small talent pool at most companies and hence often end up lower on the agenda of HR leaders.</p> <h2>Several elements can help companies build a world-class product management talent program</h2> <p>There are four key levers to pull to build a world-class program for product management talent.</p> <p>First, articulate the product management leadership development model for the organization. This should include a concrete, actionable description of what the organization wants and expects from its product managers. It should reflect the organization’s strategy and priorities and is not the same as the conventional list of competencies used to assess employees. For example, competency models are often expressed as innate traits, qualities, or values that product managers should have, such as “is decisive,” whereas a leadership model is expressed as concrete descriptions of desired behaviors, such as “acts to reach timely closure on decisions.” The leadership model should also articulate what it looks like to make different transitions in the organization. For example, how do the behaviors and mind-sets differ for an established, principal product manager from one who is transitioning to a director of product.</p> <p>Second, provide the product managers with organizational enablers for ongoing growth and apprenticeship. There are many ways to do this, including rotational programs, regular cadence of product reviews (with focus on coaching and knowledge sharing rather than inspection), walking in the shoes of other functions (taking support calls or doing customer demonstrations, for example), conducting skip-level one-on-one sessions, providing formal mentorship programs, giving regular growth-based feedback, and so on.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-disruptor1up mck-o-md-center mck-u-inline-module-border-top mck-u-inline-module-border-bottom mck-u-screen-only" data-layer-region="disruptor-1up"><div class="mdc-u-grid mdc-u-grid-gutter-md mdc-u-grid-col-lg-12 mdc-u-grid-col-md-12 "><div class="mdc-u-grid-col-lg-span-4 mdc-u-grid-col-md-span-5 Disruptor1Up_mck-c-disruptor1up__image___2Gc4"><picture data-component="mdc-c-picture"><img alt="Linking talent to value" src="/~/media/mckinsey/industries/technology%20media%20and%20telecommunications/high%20tech/our%20insights/linking%20talent%20to%20value/linkingtalenttovalue_1536x1536.png?cq=50&amp;mh=145&amp;car=16:9&amp;cpy=Center" loading="lazy"/></picture></div><div class="mdc-u-grid-col-lg-span-8 mdc-u-grid-col-md-span-7"><header data-component="mdc-c-header" class="mdc-c-header"><div class="mdc-c-header__block___i1Lg-_2734c4f"><h3 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f"><div>Linking talent to value</div></h3></div></header><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--display-column___X0HDD_2734c4f mck-c-disruptor1up__content Disruptor1Up_mck-c-disruptor1up__content--links__VV4lE mdc-u-grid-gutter-md"><a data-component="mdc-c-link" href="/capabilities/people-and-organizational-performance/our-insights/linking-talent-to-value" class="mdc-c-link-cta___NBQVi_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Read the article</span><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mck-link-arrow-right-icon"></span></a></div></div></div></div> <p>Third, leverage a field-and-forum approach to design an end-to-end learning journey. There are several principles and approaches for learning programs that we have discovered through our work with technology companies. The first is that product managers, like most adults, <a href="/capabilities/operations/our-insights/experiential-learning-whats-missing-in-most-change-programs">learn best by doing</a> rather than by watching videos or sitting in classrooms. Additionally, product managers learn most effectively through activities that are grounded in their day-to-day context rather than through generic product management trainings. For example, we have run a product management academy program in which product managers take on ambitious projects and are coached through them on a weekly basis (Exhibit 3). It is important to note that these learning programs must be tailored to the different transitions that are critical for the individual organization. Additionally, it is important to put hard metrics on the “soft stuff” by tracking key performance indicators for these programs that measure both participation and subsequent effectiveness.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-inline-module-container mck-o-lg-right-span"><div class="mdc-u-grid mdc-u-grid-gutter-lg mdc-u-grid-col-sm-1 mdc-u-grid--align-start mdc-u-mb-3 GenericItem_mck-c-generic-item__sGwKL"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-xs GenericItem_mck-c-generic-item__content__gq1m0"><div class="mck-c-eyebrow mdc-u-ts-10"><span> 3</span></div></div></div><div class="mck-u-inline-module-border-top mck-u-inline-module-border-bottom"><picture data-component="mdc-c-picture" class="Exhibit_mck-c-exhibit__image__pyIDm"><source media="(min-width: 768px)" srcSet="/~/media/mckinsey/industries/technology%20media%20and%20telecommunications/high%20tech/our%20insights/the%20product%20management%20talent%20dilemma/svgz-pm-talent-dilemma-ex3-expanded.svgz?cq=50&amp;cpy=Center"/><img alt="Training for product managers is most effective when learning is grounded in daily activities." src="/~/media/mckinsey/industries/technology%20media%20and%20telecommunications/high%20tech/our%20insights/the%20product%20management%20talent%20dilemma/svgz-pm-talent-dilemma-ex3-expanded.svgz?cq=50&amp;cpy=Center" loading="lazy"/></picture></div><div class="mck-u-sr-only"></div></div> <p>Last, hiring should be a strategic priority for senior leadership. At best-in-class software companies, senior product managers often report spending 3 to 5 percent of their time (equivalent to a half day to a full day per month) on recruiting. Doing recruiting well includes getting three elements right:</p> <ol> <li>identifying and articulating the organizations’ unique value proposition for product managers</li> <li>leveraging diverse sourcing channels (using online communities like Hacker News, sponsoring meet-ups, identifying internal talent in other functions that are likely to produce product managers, and making “acqui-hires,” for example)</li> <li>a recruiting process that is efficient, removes <a href="/capabilities/risk-and-resilience/our-insights/the-business-logic-in-debiasing">unconscious biases</a>, and tests real-life skills (through cases, actual presentations on product ideas, analyses using real product data, interactions across functions to test the ability to work with engineering and design, for example)</li> </ol> <hr/> <p>Product management is one of the most critical talent pools for any company that is writing software but often does not get the right level of attention. Having a world-class product management function requires a multipronged approach under a holistic talent-management program. We recommend that this be a joint priority of the chief HR officer and the head of product.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-disruptor-signup mck-o-lg-right-span mck-u-inline-module-border-top mck-u-inline-module-border-bottom mck-u-screen-only" data-layer-region="disruptor-signup"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-4 DisruptorSignUp_mck-c-disruptor-signup__heading__JR4i0"><div>Stay current on your favorite topics</div></h2></div><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--align-left"><a data-component="mdc-c-link" href="/user-registration/register-mvc" class="mdc-c-button___U4iY2_2734c4f mdc-c-button--primary___Ed-lT_2734c4f mdc-c-button--size-large___jwpUy_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Subscribe</span></a></div></div></div><div class="container-placeholder"></div></div></div><div class="mdc-u-grid mdc-u-grid-gutter-xl"><section role="contentinfo" data-layer-region="article-about-authors" class="mdc-u-grid mdc-u-grid-col-md-12 AboutAuthor_mck-c-about-author__nRJzu"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11"><h5 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-c-heading--border___K8dj3_2734c4f mdc-u-align-center"></h5><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-u-links-inline mck-u-links-inline--secondary mdc-u-mt-5"><div><p><strong><a href="/our-people/chandra-gnanasambandam">Chandra Gnanasambandam</a></strong> is a senior partner in McKinsey&rsquo;s Silicon Valley office, where <strong><a href="/our-people/martin-harrysson">Martin Harrysson</a></strong> is a partner, <strong><a href="/our-people/shivam-srivastava">Shivam Srivastava</a></strong> is an associate partner, and <strong>Vaish Srivathsan</strong> is a consultant.</p></div></div></div></section><section class="mdc-u-grid mdc-u-grid-col-md-12 mck-u-screen-only"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-5 mdc-u-grid-col-lg-end-9"><h5 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-c-heading--border___K8dj3_2734c4f mdc-u-align-center">Explore a career with us</h5><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--align-center___ar3mu_2734c4f"><a data-component="mdc-c-link" href="/careers/search-jobs" class="mdc-c-button___U4iY2_2734c4f mdc-c-button--secondary___Boipq_2734c4f mdc-c-button--size-large___jwpUy_2734c4f" aria-label="Search Openings" data-layer-event-prefix="CTA Link" data-layer-action="click" data-layer-category="careers" data-layer-subcategory="search" data-layer-text="Search Openings"><span class="mdc-c-link__label___Pfqtd_2734c4f">Search Openings</span></a></div></div></section></div></main></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="lightest-grey" data-module-category="StandalonePromo" class="RelatedArticle_mck-c-article-related__GGA76 mck-u-screen-only" data-layer-region="related-articles"><div class="mdc-o-container__wrapper is-wrapped mdc-u-spaced-mobile"><h5 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-u-align-center">Related Articles</h5><div class="mdc-u-grid mdc-u-grid-col-md-3 RelatedArticle_items-container__s2uD0"><div class="mdc-u-grid mdc-u-grid-gutter-lg Card_card__diA2r Card_hover-effect__RGb9b"><div class="Card_wrapper-image__8b4P6"><a data-component="mdc-c-link" href="/capabilities/people-and-organizational-performance/our-insights/linking-talent-to-value" class="mdc-c-link___lBbY1_2734c4f"><picture data-component="mdc-c-picture" class="Card_wrapper-image__8b4P6"><style>.picture-uniqueKey-linki-0 { aspect-ratio: 16/9 }</style><img alt="Linking talent to value" class="picture-uniqueKey-linki-0" src="/~/media/mckinsey/industries/technology%20media%20and%20telecommunications/high%20tech/our%20insights/linking%20talent%20to%20value/linkingtalenttovalue_1536x1536.png?cq=50&amp;mw=767&amp;car=16:9&amp;cpy=Center" loading="lazy"/></picture></a></div><div class="Card_wrapper-text__U6Y3k"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f Card_content-block__pF6Z1"><span>Article - <i>McKinsey Quarterly</i></span><h6 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-6"><a data-component="mdc-c-link" href="/capabilities/people-and-organizational-performance/our-insights/linking-talent-to-value" class="mdc-c-link-heading___Zggl8_2734c4f mdc-c-link___lBbY1_2734c4f"><div>Linking talent to value</div></a></h6></div></div></div><div class="mdc-u-grid mdc-u-grid-gutter-lg Card_card__diA2r Card_hover-effect__RGb9b"><div class="Card_wrapper-image__8b4P6"><a data-component="mdc-c-link" href="/industries/technology-media-and-telecommunications/our-insights/product-managers-for-the-digital-world" class="mdc-c-link___lBbY1_2734c4f"><picture data-component="mdc-c-picture" class="Card_wrapper-image__8b4P6"><style>.picture-uniqueKey-produ-0 { aspect-ratio: 16/9 }</style><img alt="Product-managers-1536x1536-100_Standard" class="picture-uniqueKey-produ-0" src="/~/media/mckinsey/industries/technology%20media%20and%20telecommunications/high%20tech/our%20insights/product%20managers%20for%20the%20digital%20world/product-managers-1536x1536-100_standard.jpg?cq=50&amp;mw=767&amp;car=16:9&amp;cpy=Center" loading="lazy"/></picture></a></div><div class="Card_wrapper-text__U6Y3k"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f Card_content-block__pF6Z1"><span>Article</span><h6 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-6"><a data-component="mdc-c-link" href="/industries/technology-media-and-telecommunications/our-insights/product-managers-for-the-digital-world" class="mdc-c-link-heading___Zggl8_2734c4f mdc-c-link___lBbY1_2734c4f"><div>Product managers for the digital world</div></a></h6></div></div></div><div class="mdc-u-grid mdc-u-grid-gutter-lg Card_card__diA2r Card_hover-effect__RGb9b"><div class="Card_wrapper-image__8b4P6"><a data-component="mdc-c-link" href="/capabilities/mckinsey-digital/our-insights/an-executives-guide-to-software-development" class="mdc-c-link___lBbY1_2734c4f"><picture data-component="mdc-c-picture" class="Card_wrapper-image__8b4P6"><style>.picture-uniqueKey-anex-0 { aspect-ratio: 16/9 }</style><img alt="An-executives-guide-to-software-1536x1536-0_Standard" class="picture-uniqueKey-anex-0" src="/~/media/mckinsey/industries/technology%20media%20and%20telecommunications/high%20tech/our%20insights/an%20executives%20guide%20to%20software%20development/an-executives-guide-to-software-1536x1536-0_standard.jpg?cq=50&amp;mw=767&amp;car=16:9&amp;cpy=Center" loading="lazy"/></picture></a></div><div class="Card_wrapper-text__U6Y3k"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f Card_content-block__pF6Z1"><span>Article</span><h6 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-6"><a data-component="mdc-c-link" href="/capabilities/mckinsey-digital/our-insights/an-executives-guide-to-software-development" class="mdc-c-link-heading___Zggl8_2734c4f mdc-c-link___lBbY1_2734c4f"><div>An executive&rsquo;s guide to software development</div></a></h6></div></div></div></div></div></div></div></main></div><script id="__NEXT_DATA__" type="application/json">{"props":{"pageProps":{"locale":"en","dictionary":{},"sitecoreContext":{"route":{"name":"The product management talent dilemma","displayName":"The product management talent dilemma","fields":null,"databaseName":"web","deviceId":"fe5d7fdf-89c0-4d99-9aa3-b5fbd009c9f3","itemId":"426545e1-d53c-4c0c-9cf3-5c54fa0b56cd","itemLanguage":"en","itemVersion":2,"layoutId":"ae753eb4-a035-40b4-83bf-4b4438df6742","templateId":"683910db-02ba-40ba-92e7-726c880160a9","templateName":"ArticleJSS","placeholders":{"jss-main":[{"uid":"232bb7e9-289f-492d-a916-2b6185e44a84","componentName":"ArticleTemplate","dataSource":"","fields":{"data":{"articleTemplate":{"title":{"jsonValue":{"value":"The product management talent dilemma"}},"sEOTitle":{"value":"Developing product-management leadership"},"description":{"jsonValue":{"value":"Despite product managers\u0026rsquo; central roles in software organizations, they are often neglected from a talent-management perspective. Four levers can address this industry-wide challenge."}},"sEODescription":{"value":"Product managers are critical to software companies but often neglected from a talent-management perspective. Four levers can help broaden your approach to product-manager leadership training."},"displayDate":{"jsonValue":{"value":"2018-11-28T00:00:00Z"}},"body":{"value":"[[DownloadsSidebar]] \u003cp\u003e\u003cstrong\u003eProduct management\u003c/strong\u003e remains one of the most critical roles for any company for which software is a core growth driver. Amid the growing importance of data in decision making, an increased customer and design focus, and the evolution of software-development methodologies, the \u003ca href=\"/industries/technology-media-and-telecommunications/our-insights/product-managers-for-the-digital-world\"\u003erole of the product manager has evolved\u003c/a\u003e to influence every aspect of making a product successful. As a result, CEOs and technology leaders often identify the role of product manager as one of their top talent priorities. Paradoxically, results from the McKinsey Product Management Index reveal that companies are underinvesting in this crucial talent pool.\u003c/p\u003e\n\u003cp\u003eThe McKinsey Product Management Index is a survey of product managers at leading software companies to understand the capabilities and enablers that create top-performing product managers (Exhibit 1). This research surfaced systemic gaps around software-\u003ca href=\"/featured-insights/talent-management\"\u003etalent management\u003c/a\u003e; in fact, fewer than half of the product managers feel prepared to play the roles expected of them or grow into future product leaders.\u003c/p\u003e\n[[Exhibit 1]]\n\u003ch2\u003eProduct managers spend time across a range of critical areas and influence every part of the product\u003c/h2\u003e\n\u003cp\u003eThe McKinsey Product Management Index highlights the wide range of activities that demand the attention of product managers. The days and weeks of an average product manager are fragmented, which requires they be good at wearing multiple hats and prioritizing ruthlessly (Exhibit 2).\u003c/p\u003e\n[[Exhibit 2]]\n\u003cp\u003eModern product managers are involved in a wide range of decisions. For example, nearly 80 percent of product managers actively participate in design activities, over 80 percent are involved in go-to-market decisions, and nearly half are involved in pricing decisions. Additionally, 60 percent of product managers have basic analytics skills that enable them to dive into metrics and draw insights without relying on analysts.\u003c/p\u003e\n\u003ch2\u003eTalent management is a pervasive gap\u003c/h2\u003e\n\u003cp\u003eDespite the central role that a product manager plays, the talent-management practices associated with this function are surprisingly underdeveloped. This gap is evident across the industry\u0026mdash;at large software companies in Silicon Valley, early-stage tech companies, and incumbents in other industries that are becoming more software oriented.\u003c/p\u003e\n\u003cp\u003eAs an example, only 35 percent of the product managers have clarity on what it would take to advance in their organizations, roughly the same number feel sufficiently coached and mentored and around 20 percent say that their companies have highly effective programs to identify and retain the best talent.\u003c/p\u003e\n\u003cp\u003eWe observe several underlying drivers for this gap in talent development. First, there are limited roles that involve managing people and teams in the product organization, and unlike in engineering, companies have not consistently defined an expert track for product managers. This can prevent product managers from growing or feeling that their careers are progressing unless they are managing more people.\u003c/p\u003e\n[[Disruptor1up dis1]]\n\u003cp\u003eAdditionally, the leadership development model for product management\u0026mdash;that is, the behaviors and mind-sets that product managers are expected to display at various levels\u0026mdash;is often poorly articulated. As a result, the only way to measure product managers is on the success of their product. Product managers tell us that they believe career progression at their companies is a matter of being in the right place at the right time to become part of a hit product rather than of doing the right things.\u003c/p\u003e\n\u003cp\u003eWhat is more, product management primarily requires learning on the job, but few software companies have put in place mechanisms to support this learning. Product managers often start in other functions, such as engineering, design, or marketing, and bring a specific set of skills from their previous roles. But this transitioning talent needs support to wear the multiple hats required of product managers.\u003c/p\u003e\n\u003cp\u003eCompounding the issue is the fact that product managers make up a small talent pool at most companies and hence often end up lower on the agenda of HR leaders.\u003c/p\u003e\n\u003ch2\u003eSeveral elements can help companies build a world-class product management talent program\u003c/h2\u003e\n\u003cp\u003eThere are four key levers to pull to build a world-class program for product management talent.\u003c/p\u003e\n\u003cp\u003eFirst, articulate the product management leadership development model for the organization. This should include a concrete, actionable description of what the organization wants and expects from its product managers. It should reflect the organization\u0026rsquo;s strategy and priorities and is not the same as the conventional list of competencies used to assess employees. For example, competency models are often expressed as innate traits, qualities, or values that product managers should have, such as \u0026ldquo;is decisive,\u0026rdquo; whereas a leadership model is expressed as concrete descriptions of desired behaviors, such as \u0026ldquo;acts to reach timely closure on decisions.\u0026rdquo; The leadership model should also articulate what it looks like to make different transitions in the organization. For example, how do the behaviors and mind-sets differ for an established, principal product manager from one who is transitioning to a director of product.\u003c/p\u003e\n\u003cp\u003eSecond, provide the product managers with organizational enablers for ongoing growth and apprenticeship. There are many ways to do this, including rotational programs, regular cadence of product reviews (with focus on coaching and knowledge sharing rather than inspection), walking in the shoes of other functions (taking support calls or doing customer demonstrations, for example), conducting skip-level one-on-one sessions, providing formal mentorship programs, giving regular growth-based feedback, and so on.\u003c/p\u003e\n[[Disruptor1up dis2]]\n\u003cp\u003eThird, leverage a field-and-forum approach to design an end-to-end learning journey. There are several principles and approaches for learning programs that we have discovered through our work with technology companies. The first is that product managers, like most adults, \u003ca href=\"/capabilities/operations/our-insights/experiential-learning-whats-missing-in-most-change-programs\"\u003elearn best by doing\u003c/a\u003e rather than by watching videos or sitting in classrooms. Additionally, product managers learn most effectively through activities that are grounded in their day-to-day context rather than through generic product management trainings. For example, we have run a product management academy program in which product managers take on ambitious projects and are coached through them on a weekly basis (Exhibit 3). It is important to note that these learning programs must be tailored to the different transitions that are critical for the individual organization. Additionally, it is important to put hard metrics on the \u0026ldquo;soft stuff\u0026rdquo; by tracking key performance indicators for these programs that measure both participation and subsequent effectiveness.\u003c/p\u003e\n[[Exhibit 3]]\n\u003cp\u003eLast, hiring should be a strategic priority for senior leadership. At best-in-class software companies, senior product managers often report spending 3 to 5 percent of their time (equivalent to a half day to a full day per month) on recruiting. Doing recruiting well includes getting three elements right:\u003c/p\u003e\n\u003col\u003e\n \u003cli\u003eidentifying and articulating the organizations\u0026rsquo; unique value proposition for product managers\u003c/li\u003e\n \u003cli\u003eleveraging diverse sourcing channels (using online communities like Hacker News, sponsoring meet-ups, identifying internal talent in other functions that are likely to produce product managers, and making \u0026ldquo;acqui-hires,\u0026rdquo; for example)\u003c/li\u003e\n \u003cli\u003ea recruiting process that is efficient, removes \u003ca href=\"/capabilities/risk-and-resilience/our-insights/the-business-logic-in-debiasing\"\u003eunconscious biases\u003c/a\u003e, and tests real-life skills (through cases, actual presentations on product ideas, analyses using real product data, interactions across functions to test the ability to work with engineering and design, for example)\u003c/li\u003e\n\u003c/ol\u003e\n\u003chr /\u003e\n\u003cp\u003eProduct management is one of the most critical talent pools for any company that is writing software but often does not get the right level of attention. Having a world-class product management function requires a multipronged approach under a holistic talent-management program. We recommend that this be a joint priority of the chief HR officer and the head of product.\u003c/p\u003e\n[[DisruptorSignUp full-width]]"},"isFullScreenInteractive":{"boolValue":false},"hideStickySocialShareBar":{"boolValue":false},"desktopID":{"value":""},"mobileID":{"value":""},"desktopURL":{"value":""},"mobileURL":{"value":""},"desktopPaddingPercentage":{"value":""},"mobilePaddingPercentage":{"value":""},"desktopOverrideHeight":{"value":""},"mobileOverrideHeight":{"value":""},"cerosOembedURL":{"value":""},"cerosRenderMode":{"targetItem":null},"cerosBackgroundColor":{"targetItem":null},"hideByLine":{"boolValue":false},"tableOfContentsTitle":{"value":"TABLE OF CONTENTS"},"accessStatus":{"targetItem":{"key":{"value":"RegisteredUsers"},"value":{"value":"Registered Users"}}},"articleType":{"targetItem":{"displayName":"Article"}},"hasSpecialReport":{"boolValue":false},"contentType":{"targetItem":{"displayName":"Article"}},"sourcePublication":{"targetItem":null},"externalPublication":{"value":""},"mobileReady":{"boolValue":true},"forClientsOnly":{"boolValue":false},"excludeFromClientLink":{"boolValue":false},"originalPublishDate":{"jsonValue":{"value":"2018-11-28T00:00:00Z"}},"footnotes":{"value":""},"contributoryPractice":{"targetItems":[{"displayName":"Technology, Media \u0026 Telecommunications"}]},"aboutTheAuthors":{"value":"\u003cp\u003e\u003cstrong\u003e\u003ca href=\"/our-people/chandra-gnanasambandam\"\u003eChandra Gnanasambandam\u003c/a\u003e\u003c/strong\u003e is a senior partner in McKinsey\u0026rsquo;s Silicon Valley office, where \u003cstrong\u003e\u003ca href=\"/our-people/martin-harrysson\"\u003eMartin Harrysson\u003c/a\u003e\u003c/strong\u003e is a partner, \u003cstrong\u003e\u003ca href=\"/our-people/shivam-srivastava\"\u003eShivam Srivastava\u003c/a\u003e\u003c/strong\u003e is an associate partner, and \u003cstrong\u003eVaish Srivathsan\u003c/strong\u003e is a consultant.\u003c/p\u003e"},"authors":{"targetItems":[{"template":{"id":"3FBABDB63A094F68B1F8E1BBE1BA124E","name":"Author"},"id":"95DB5E2449DC4FE69C04C34EBFD416AD","name":"Chandra Gnanasambandam","authorTitle":{"value":"Chandra Gnanasambandam"},"description":{"value":""},"thumbnailImage":{"alt":"","src":null},"profile":{"targetItems":[{"standardImage":{"src":"/~/media/mckinsey/our people/chandra gnanasambandam/gnanasambandam_chandra_fc_mask_profile_1536x1152.jpg","alt":"Chandra Gnanasambandam"},"emailLinks":{"value":"Chandra_Gnanasambandam@mckinsey.com"},"linkedInUrl":{"value":"https://www.linkedin.com/in/chandra-gnanasambandam-733213"},"description":{"value":"Helps high-tech companies transform performance by setting business, product, and go-to-market strategies that create sustainable value"},"locations":{"targetItems":[{"name":"Bay Area","displayName":"Bay Area"}]},"firmTitle":{"value":"Senior Partner"},"thumbnailImage":{"alt":"Chandra Gnanasambandam","src":"/~/media/mckinsey/our people/chandra gnanasambandam/gnanasambandam_chandra_fc-mask_headshot_988x741.jpg"},"url":{"path":"/our-people/chandra-gnanasambandam"}}]}},{"template":{"id":"3FBABDB63A094F68B1F8E1BBE1BA124E","name":"Author"},"id":"1A6F760AB57C402490E4A76952668736","name":"Martin Harrysson","authorTitle":{"value":"Martin Harrysson"},"description":{"value":""},"thumbnailImage":{"alt":"","src":null},"profile":{"targetItems":[{"standardImage":{"src":"/~/media/mckinsey/our people/martin harrysson/martin harrysson_0872_fc-mask_profile_1536x1152.png","alt":"Martin "},"emailLinks":{"value":"Martin_Harrysson@mckinsey.com"},"linkedInUrl":{"value":""},"description":{"value":"Draws on expertise in software product development and digital strategy to help clients innovate the customer experience, evolve their operating model, and develop new products"},"locations":{"targetItems":[{"name":"Bay Area","displayName":"Bay Area"}]},"firmTitle":{"value":"Senior Partner"},"thumbnailImage":{"alt":"Martin Harrysson VI","src":"/~/media/mckinsey/our people/martin harrysson/martin harrysson_0872_fc-mask_headshot_988x741.png"},"url":{"path":"/our-people/martin-harrysson"}}]}},{"template":{"id":"3FBABDB63A094F68B1F8E1BBE1BA124E","name":"Author"},"id":"1675F992EFE2485FA2DA553D2FC22692","name":"Shivam Srivastava","authorTitle":{"value":"Shivam Srivastava"},"description":{"value":""},"thumbnailImage":{"alt":"","src":null},"profile":{"targetItems":[{"standardImage":{"src":"/~/media/mckinsey/our people/shivam srivastava/shivam-srivastave_profile_1536x1152.jpg","alt":"Shivam Srivastava"},"emailLinks":{"value":"Shivam_srivastava@mckinsey.com "},"linkedInUrl":{"value":"https://www.linkedin.com/in/shivam-srivastava-09176527"},"description":{"value":"Provides product expertise to software companies around the world"},"locations":{"targetItems":[{"name":"Bay Area - Silicon Valley","displayName":"Bay Area - Silicon Valley"}]},"firmTitle":{"value":"Partner"},"thumbnailImage":{"alt":"Shivam Srivastava","src":"/~/media/mckinsey/our people/shivam srivastava/shivam-srivastava_headshot_988x741.jpg"},"url":{"path":"/our-people/shivam-srivastava"}}]}},{"template":{"id":"3FBABDB63A094F68B1F8E1BBE1BA124E","name":"Author"},"id":"5BD5FFED974548CFA5F5C305C049000A","name":"Vaish Srivathsan","authorTitle":{"value":"Vaish Srivathsan"},"description":{"value":""},"thumbnailImage":{"alt":"","src":null},"profile":{"targetItems":[]}}]},"nonPartnerAuthors":{"targetItems":[]},"interactiveToUse":{"targetItem":null},"enableArticleComponents":{"boolValue":false},"relatedArticles":{"targetItems":[{"sourcePublication":{"targetItem":{"name":"McKinsey Quarterly"}},"publicationSource":null,"externalPublication":{"value":""},"title":{"value":"Linking talent to value"},"url":{"path":"/capabilities/people-and-organizational-performance/our-insights/linking-talent-to-value"},"eyebrow":{"targetItem":{"name":"Article"}},"articleType":{"targetItem":{"name":"Article"}},"contentType":{"targetItem":{"name":"Article"}},"description":{"value":"Getting the best people into the most important roles does not happen by chance; it requires a disciplined look at where the organization really creates value and how top talent contributes."},"standardImage":{"src":"/~/media/mckinsey/industries/technology media and telecommunications/high tech/our insights/linking talent to value/linkingtalenttovalue_1536x1536.png","alt":"Linking talent to value"},"heroImage":null,"thumbnailImage":null},{"sourcePublication":{"targetItem":null},"publicationSource":null,"externalPublication":{"value":""},"title":{"value":"Product managers for the digital 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