As a product manager or product owner in the realm of digital products, you’re often faced with the distinction between „managing“ and „owning“ a product. While the terms might seem interchangeable, there’s a subtle yet significant difference that shapes the approach and mindset of professionals in these roles. Let’s delve into this disparity and explore why, despite the title, a product owner doesn’t truly „own“ the product and why both terms might be misleading.
Managing a Product: Aligning the product with business objectives
Product management involves a more high-level point of view compared to being a product owner, encompassing strategic planning, stakeholder coordination, and budget decisions. Managers are entrusted with the responsibility of steering the product towards success by aligning it with business objectives, customer needs, and market demands. They serve as the connectors to a cross-functional team, guiding them through each phase of the product lifecycle. Product managers act as the liaison between different departments, translating customer feedback into actionable insights and fostering a culture of continuous improvement.
Owning a Product: Accountability with Boundaries
On the other hand, the title of „product owner“ might suggest a sense of ownership akin to possessing a tangible asset. However, in reality, the term signifies a different kind of ownership — one rooted in accountability rather than possession. A product owner is accountable for maximizing the value of the product by defining and prioritizing its features, maintaining a clear product backlog, and ensuring that the team’s efforts align with the overarching vision. They represent the voice of the customer, advocating for their needs and preferences throughout the development process.
Why both terms are misleading
If you think about the relationship between product managers and product owners, you will come to the conclusion that the product manager has a more high level role and the product owner is responisble for the operational part. But when you look at how these terms / roles are defined in other contexts, then we might reconsider their definition in the realm of product development. I would like to illustrate this with an example from owning and managing a property.
As the property owner, you hold the legal title and rights to the property, entitling you to make decisions regarding its use, transfer, or sale. Your ownership grants you the authority to set rental rates, approve lease agreements, and make long-term investment decisions, such as property improvements or expansions. Ultimately, you bear the financial risks and rewards associated with property ownership, including taxes, mortgage payments, and potential appreciation or depreciation in property value.
In contrast, property management involves the hands-on administration and supervision of the rental property to ensure its efficient operation and maintenance. A property manager, whether hired by the owner or a third-party management company, takes on the day-to-day responsibilities of tenant relations, lease administration, maintenance coordination, and financial management. They handle tasks such as rent collection, property maintenance and repairs, tenant screening, and resolving tenant disputes. While the property manager acts on behalf of the owner to preserve the property’s value and generate rental income, they do not hold legal ownership of the property itself.
In summary, property ownership means to make decisions for the overall „direction“ and maximize its value, while management involves the practical execution of tasks to ensure its effective operation and maintenance. In our world of digital product development it is the other way around.