Jose Gomez explains that project management and product management are very important yet distinct positions, and they are often interchangeably confused by all levels of business executives.
Products vs. Projects
Product management and project management are complementary but distinct. In order to fully understand the differences between these functions, one must first understand the difference between a product and a project.
A product is anything that can be offered to a market to solve a problem, or to satisfy a want or need.
Products have a life cycle that consists of multiple stages. First, the product is conceived, then developed, then introduced and managed in the market, and finally, the product is retired when the need for it diminishes.
A project is a temporary endeavor that is undertaken to create a unique product or service. With a project, there is a clear definition of what needs to be delivered by a specified date in time. It’s important to note that a product can only be developed within the context of a project, and multiple projects can occur within a product’s life cycle.
Unlike with a project, with a product, there is no clear definition of what has to be delivered. Customer needs naturally evolve over time, and products must evolve to serve these customer needs.
With products, there are no clear deadlines. A customer expects a product to meet their needs right NOW, not at some distant point in the future. Thus, product development is not a temporary or occasional endeavor. It is a continuous process of delivering new features and improving a given product over time.
Defining Product Management and Project Management
Product management is an organizational function within a company that deals with the planning, forecasting, and production or marketing of a product or products at all stages of the product life cycle.
Project management, on the other hand, consists of the application of processes, methods, knowledge, skills, and experience to achieve the objectives of a specific project.