What Is It? Product Development vs. Product Management
- 2. What Is It? Product Management vs. Product Development Warren M. Gitt Overlook International Group LLC Columbia MD (410) 456-6282 wmgitt@gmail.com
- 3. Warren Gitt Overlook International Group LLC • Background & Experience • 35 Years in the Medical Device/Healthcare Arena • Products and Services for the Physician, Hospital, Medical Device, IT, Pharmaceutical, Consumer, and Managed Care Markets • Executive Level Roles in Product Management, Marketing and Sales Management, Business Development and General Management • Expertise/Experience in International Markets (Bilingual in German) • Public and Private, Start-Ups, Development Stage, Fortune 500 Cos • Currently Serving as VP Global Business Development for K2M, Inc. • Education &Training • BA Secondary Education and German Language (Hastings College, NE) • MBA International Business (Thunderbird – now part of ASU) • US Army Defense Language Institute
- 4. Key Takeaways This session will focus on the respective roles and responsibilities of the Product Manager vs. the Development Engineer from a product’s inception through its lifecycle maintenance, including: • Leveraging the Cross-Functional Product Team to Deliver Results How to manage and direct the organization’s resources to develop a product that will achieve the financial, market and strategic objectives of the product’s business. • Business vs. Technical Aspects of Product Development If not me, then who is responsible? • Putting the Customer First How to avoid developing the perfectly designed product that doesn’t fit the customer’s needs. • Navigating the Organization and Getting Things Done How to manage all that responsibility with little to no authority via networking, politicking and influencing (situational consultative leadership).
- 5. OMTEC 2016 PRODUCT DEVELOPMENT IS A SUBCOMPONENT OF PRODUCT MANAGEMENT WHAT IS IT?
- 6. A Picture Worth A Thousand Words
- 7. WHAT IS PRODUCT MANAGEMENT? OMTEC 2016
- 8. Product Management What Is It? Market TechnologyBusiness
- 9. What is Product Management? • Strategic Business and Product Planning • Global Strategic Business Planning • Long Term Strategic Growth • Maintaining a Strategically Healthy Product Range • Product • Manage the Product Development Process • Forecasting and Product Planning • Augmenting/Culling the Product Line • Distribution • Competitive Analysis • Sales Analysis • Sales Support • Product and Customer Education/ Training • Pricing and Reimbursement • Promotion • Sales and Product Promotions • Marketing Communications • Trade Shows, Exhibitions, Seminars UPSTREAMDOWNSTREAMUPSTREAMDOWNSTREAM
- 10. Upstream - Product Development Model Develop a collaborative approach to product development, through which healthcare providers, opinion leaders, experienced biomechanical engineers, and product management experts gather at regular product development meetings, maintaining constant communication either in-person or via prescheduled audio and video conference. Development Project
- 11. Upstream - CEO of the Product Line Product Management Customers: Distribution & End-Users Engineering Supply Chain Quality and Regulatory MarComm Med Ed Corp Events OUS vs US Finance Sales Management and Field Specialists Responsibility but Limited Authority – Requires Leadership from the Middle Execs Competitors Gov’t Regulatory User Preference
- 12. Downstream Marketing Medical Education (Includes Sales Training) Marketing CommunicationsField Activities Global Sales Support Corporate Events (Trade Shows/ Conferences) Global Marketing: Product Management functions as product CEO
- 13. Sales SupportActivities • Market and Territory Research and Analysis • Sales Planning and Review tools for use by Sales Management • Territory Planning Tools • Scorecard Development • Inventory Planning and Oversight Tools • Support of National Contracting Activity • Visits to the Field • Key End Users • Case Coverage • Training • Feedback Loop – “Voice of the Customer”
- 14. WHAT IS PRODUCT DEVELOPMENT? OMTEC 2016
- 15. Product Development Approach (Collaborative Teams) Development Team Project Manager Functions as the CEO for Team Develop Business Plan and Market Opportunity, Manages Team ‘s Administration and Logistics Senior Engineer Functions as the Chief Technical Officer Biomechanical Engineering Intellectual Property Development Regulatory/Clinical Interface Global Subject Matter Experts Providers (Surgeons, Nurses, Other Clinicians) Sub-Segment Expertise (CEO) (CTO) Structure and Process Are Essential
- 16. Stage Gate Model A conceptual and operational road map for moving a new-product development from idea to launch. It is a product management technique in which any product development process is divided into various stages separated by gates. It is an iterative process in which each stage is unique & independent, consisting of activities necessary before moving to the next gate. Gates serve as quality control checkpoints with 3 Goals: to ensure quality of execution, to evaluate the business rationale and to approve the project plan and resources. At each gate the team leadership determines if more information is required to move forward or whether to abort the project. The Product Manager can switch to any of the previous stages in case of failure to qualify through the appropriate gate.
- 17. Overview of Development (Device Market) • Project Initiation • Design Inputs • Design Reviews • Regulatory Planning • Design Transfer • Prototyping • Supply Chain Activities (Planning and Ordering Products) • FDA and CE (Regulatory) • Quality • Alpha/Beta Product Evaluation/ Intro • Changes as result of Alpha/Beta • Final Marketing Introduction DEVELOPMENT
- 18. KEYS TO SUCCESS Product Management OMTEC 2016
- 19. What ConstitutesAn Effective Product Manager? An effective Product Manager is… A person whose product decisions over time consistently result in increasing market share without a detrimental impact on margins. From the customer’s perspective – it is being constantly "delighted" with the product offering. How is it done? By developing and honing three critical marketing skills: (1) strategic insight, (2) near flawless tactical execution of strategies, and (3) the understanding and use of financial tools effectively.
- 20. Selection Is Critical PERSONAL QUALITIES AND ATTRIBUTES Ability to discern between strategic and tactical issues Meticulous attention to detail, Strong follow-up capability Ability to work alone Self-discipline, Self-starter, Goal oriented Possesses strong time management skills Team orientation Able to build team relationships with other business disciplines (e.g. interfaces continuously with engineering, Clinical, manufacturing, procurement, finance, sales and executive personnel) Strong oral and written communications skills Strong analytical and planning skills Project management skills Understanding of basic managerial skills Ability to plan and organize work efforts to maintain proper focus and output, yet be able to appropriately prioritize tasks PRODUCT MANAGERS HAVE RESPONSIBILITY BUT LIMITED AUTHORITY FIND/RECRUIT THOSE WITH THE ABILITY TO LEAD FROM THE MIDDLE Thick Skin Is Essential
- 21. Primary Product Management Responsibilities • Strategic Business and Product Planning • Product Development and Maintenance • Distribution Support and Planning • Product Promotion and Training • People Management • Financial and Business Management
- 22. • Same Skill Sets Required, Irrespective of Level Within Product Management. • Two Development Tracks •Management •Subject Matter Expertise • Appropriate Balance of Upstream vs. Downstream Marketing • Frequent, Periodic Feedback • Bonus Compensation Tied To Financial Success Category Marketing Assistant Associate Product Manager Product Manager Senior Product Manager Group Product Manager Education BA/BS BA/BS, MBA preferred BA/BS, MBA preferred BA/BS, MBA preferred BA/BS, MBA preferred Computer/Database Skills - Working knowledge of Microsoft Office, Database Applications, CRM Systems, ERP and Document Control Systems X X XX XX XXX Total Experience Required (Years In marketing, sales or related business positions, either internal or, if external, preferably in the medical device business) 0 to 2 1 to 5 3 to 10 5 or more 5 or more Marketing Experience Required (Years In marketing positions, either internal or, if external, preferably in spine or orthopedics) 0 1 to 3 3 to 5 5 to 10 5 to 10 Global Strategic Business Planning - Write worldwide strategic business plans in assigned product areas to insure that products are consistently managed for optimum growth and margin revenue, that products are properly introduced to the marketplace and to the sales force, that product management mileposts are set, prioritized and achieved according to plan, and that implementation tactics are carefully thought out and planned in advance of execution NA X XX XXX XXX Long-Term Strategic Growth - Develop and implement a strategic worldwide business plan the ensure that long-term (3 or more years) growth objectives are achieved. Identify and establish ongoing positive relationships with thought leaders worldwide. Become knowledgeable on current clinical trends. Gain strategic insight for providing product direction. Establish strong clinical partnerships in developing new products. Define and locate ideal products and/or business acquisitions which strategically fit K2M's mission and which provide the necessary growth. Map out tactical programs essential to achieving long-term business objectives, both domestic and international. NA Assists and Recommends XX XXX XXX Strategically Healthy Product Range - Provide direction to insure that the product range remains commercially viable and strong. Specific strategies include auditing the product range on a semi-annual basis for competitiveness and commercial parity, for completeness vs. product gaps, margin contribution, leapfrog opportunities (cutting edge technology for development or acquisition). Insure that direct reports remain up-to-date on customer and market issues. Train direct reports to do reliable primary market research. Insure responsiveness among direct reports to field "noise" on product related issues. Train direct reports on how to drive new product introductions. NA X XX XXX XXX PRODUCT MANAGEMENT REQUIREMENTS, RESPONSIBILITIES AND PERSONAL ATTRIBUTES Education Training StrategicBusinessandProductPlanning Well-Defined/ Monitored Expectations
- 23. Category Marketing Assistant Associate Product Manager Product Manager Senior Product Manager Group Product Manager Manage Product Development Process - Lead development efforts for new products by collecting and assessing design inputs, market needs, design and manufacturing limitations, financial constraints. Serve as Project Manager by setting timelines, financial and design controls, adherence to regulatory and quality requirements. Collaborate with production on all operational requirements. Serve as primary end-user customer interface (Voice of Customer) and as feedback loop as regards design, market and clinical needs. NA Assists but has limited authority for decision making XX XXX XXX Forecasting and Product Planning - Track sales and market history and project additional/new product sales so that accurate production schedules can be developed monthly to drive manufacturing, and so that intelligent marketing decisions can be made to correct sales lags, alter BOMs, instruments, etc. Assists X X X X Augmenting/Culling the Product Offering - Continuously monitor the product offering to identify and maintain high margin vs. low margin contributors, high vs. low volume usage, make recommendations for enhancing or improving the existing product offering, identify product gaps in order to maintain competitive parity, make recommendations for complementary product development or acquisitions Assists X XX XXX XXX Competitive Analysis - Closely monitor and document competition and competitive activity, evaluates competitive strategy, develop strategies to block competitive activity, insure products are at parity or above on all "customer perceived" critical features Assists Recommends, Limited Decision- Making X XXX XXX Sales Analysis - Analyze sales trends and collate sales data to determine effectiveness of selling effort, provide "intelligence" to sales management, identify weak market areas, identify profitable vs. unprofitable product lines, identify ASP, measure effectiveness of promotions, measure market share gains/losses. Assists X X XXX XXX Training Product Training - Insure that sales reps and sales management are well-trained so that surgeon questions about the product can be answered intelligently and properly. Insure that sales presentations are informative and cover all salient product features/benefits and surgical technique issues. Provide inservices which are thorough and which address all relevant questions and issues. Train sales managers such that they can answer virtually all general questions posed to and by their reps and surgeons. Collaborate with the training department so that field personnel have a product profile manual to refer back to for refresher training. Train customer service reps so they are knowledgeable regarding products and instruments. Develop professional training aids for use by both surgeons and sales. X XX XX XXX XXX PRODUCT MANAGEMENT REQUIREMENTS, RESPONSIBILITIES AND PERSONAL ATTRIBUTES ProductDistribution Category Marketing Assistant Associate Product Manager Product Manager Senior Product Manager Group Product Manager Pricing Administration - Manage the pricing function to insure that all products and instrumentation are priced to achieve K2M objectives, new products are priced appropriately for the market and to meet margin objectives, price increases are based on increases in costs, inflation, etc., short-term promotions or conversion pricing does not violate long-term business objectives, ASP objectives are set for major products on an annual basis and are closely monitored. NA X X XXX XXX Reimbursement - Research, document and communicate reimbursement strategies so as to ensure market acceptance and reimbursement for products sold (DRGs) and procedures performed (CPT Code) NA X X X X Sales and Product Promotions - Develops sales promotional concepts that stimulate short term demand, combat competitive tactics as required, secure sales attention and time when needed. Creates promotional programs that are easy to understand and implement, attractive to customers and sales reps, easy to accept and advantageous to use, limited in time to preserve premium margins, professional in all aspects, consistent with overall K2M strategic business objectives NA X XX XXX XXX Marketing Communications - Collaborate with Marcom Manager to interface with ad agencies, graphic designers, printers, etc. in the development of promotional and sales support materials. XX XX X X X Trade Shows, Exhibitions, Seminars - Plan and manage activities in collaboration with other marketing departments. Attend as required. Provide necessary equipment and staffing X X X X X PRODUCT MANAGEMENT REQUIREMENTS, RESPONSIBILITIES AND PERSONAL ATTRIBUTES PromotionPricing Performance Reviews Tied To The Product Management Matrix Well-Defined/ Monitored Expectations
- 24. MAJOR RESPONSIBILITIES OR TASKS DURING THIS REVIEW PERIOD AND RESULTS DURING THIS REVIEW PERIOD List in order of importance, what this employee was supposed to do (This is not a job description) What did this employee accomplish based on job assignment above, and any goals agreed upon? List significant results achieved. Explain any Major Lack of results Pricing Price list update and analysis of competitor pricing Maintain accurate tables of competitor pricing, develop updated Plates, Biologics, Motion, Interbody and Accesss pricing for price list. Update as needed, minimum of 1 time per year – Achieved, Worked on 2012 Pricing and on OUS Pricing/BOM Protocol Development Reimbursement Work with pricing team as needed to address any reimbursement issues As needed – None Required at this time Training Create training material and support HCIR trainings and VIP's for Plates, biologics, Motion, Interbody and Access as needed Training presentations and quizzes complete. Coordination of product for trainings and VIP visits. Update/support as needed – Prepared on time and as required, additional products added Attend and support Global Sales Meeting Attendance and preparation for 2012 meeting. Complete by date of GSM – On time, responsible for 1/3 of content Support Plates, Interbody and Access cadaver workshops. Provide product management support, logistical support, follow up with all surgeon and sales attendees, track usage after training. trainings in 2011 and in 2012. Complete analysis of ROI of trainings. (Qty Training TBD by MedEd) As scheduled; Completed as required Support Plates, Interbody, Biologics, Motion and Access product demos. Keep accurate feedback of meetings; follow up with all surgeons and sales agents within an appropriate timeframe after meeting. Maintenance of feedback, trip reports, completion of follow up activities. Monthly – completed as required • Weekly/Bi-Weekly 1:1s with the Manager • Quarterly Product Reviews with Sales and Executive Management • Annual Performance Review Tied to Specific Tasks Associated with the Matrix Responsibilities Well-Defined/ Monitored Expectations
- 25. Tactical Marketing – “Downstream” Objectives – Teach skills for immediate on-the-job application in five product management areas: 1. Sales Database Analysis Understanding what the numbers mean from a marketing perspective. 2. Field Sales Support Providing materials so effective they significantly enhance the reps ability to close a sale. 3. Time Management Gaining control of the most precious resource T-I-M-E. 4. Battlefield Competition Dealing with competitors on a day-to-day basis. 5. Market Research Learning the fundamentals of effective market research methods on a shoe-string budget. Training seminars are available from such organizations as “The Medical Product Management Institute”, “Sequent Learning Systems” and others and can be tailored to your specific company and products Develop Specific Product Management Skills via Training
- 26. Training - Strategic Marketing – “Upstream” Objectives – Provide insight into basic requirements for establishing and maintaining an effective business strategy. 1. Situation Analysis Comparative analysis of we versus they…product, distribution, market, and corporate culture. 2. Issues and Opportunities Using efficiency prioritization tools to rank issues and challenges, as well as strategic opportunities and initiatives. 3. Strategic Array What is your strategy? What are the four critical requirements for sustainable competitive advantage? 4. Voice-of-the-Customer How do you use VOC to identify and translate genuine customer needs into superior strategic products? What is your customer's "landscape of demand"? How do you achieve sustainable "customer advantage“? 5. Weighing Strategy Evaluating strategic initiatives: Using Tools such as Kano, conjoint, competency analysis, Go/No-Go decisions tools. 6. Positioning Brands Brand building and brand maintenance: How to get products firmly positioned in the mind of customers. 7. Business Plan Fundamentals How does one put together a long-term (3-5 years out) strategic business plan? Develop Specific Product Management Skills via Training Training seminars are available from such organizations as “The Medical Product Management Institute”, “Sequent Learning Systems” and others and can be tailored to your specific company and products
- 27. Training – Provide an understanding of the fundamentals of accounting and financial measurements used within your business environment and within your market (e.g. general finance, reimbursement, coding, currency exchange). 1. Your Company’s Finances –Understanding the financial nuances of your company, your market and your customers. Balance Sheet, Income Statements, Cash Flow, Operational vs. Capital Expense, Impact of Currency Exchange. 2. How does money move within your market – Understand the complexity of your market, where complicated marketing and financial issues exist. Recognize the interaction and sensitivity of volume, costs, and financials (In the medical market, where reimbursement issues control payment it is critical to understand the interaction between payers, physicians and hospitals). 3. Planning for New Product Introductions – Forecasting and working through the financials in a product introduction scenario where risk alternatives must be correctly determined and prioritized. 4. Measuring Success – the Right Metrics – Different kinds of measuring tools and the attributes of each. Understand how different metrics work. Putting it all together – comfort in understanding the financial management of your company. Financial Management Skills Understand “FINANCE” and how to “FOLLOW THE MONEY”
- 28. • Microsoft Office Suite • Excel • Word • Powerpoint • Training Specific to ERP System • Microsoft Access • Microsoft Project • Document Control System • Presentation Skills • Clinical Applications • DATA, DATA, DATA - Learn how to transform “Data” first into “Information” and then into “Actionable Intelligence” Additional “Skill-Specific” Training
- 29. LESSONS I HAVE LEARNED Product Management Vs. Product Development OMTEC 2016
- 30. Bad Product Manager • Always makes lots of excuses. • A bad product manager is not the product's CEO. • Lacks in communication skills. Bad product managers don't communicate well with the engineering team and others, and tend to blame others when things go wrong. • Puts out fires all day and complains about being swamped by questions and interruptions. • Bad product managers focus the team on the feature that the competition is building. • Bad product managers get confused about how to position their products. • Bad product managers always want to be told what to do. • Bad product managers don't adhere to schedules or process. • Bad product managers don't take responsibility and tend to blame others. Good VS. Bad Product Managers
- 31. Good Product Manager • Knows the product, the market and the competition really well. • Is the CEO of the product. • Takes responsibility for all aspects of the product. • Manages him/herself based on the product's performance on the market. • Takes responsibility for devising and executing a winning plan. • Good product managers manage the product team and not every detail of every aspect of everyone's work. He/she knows how to delegate and manage the team effectively. • Good product managers are focused on strategic decisions, ensuring that the product is flexible and adaptable to a changing business environment. • Good product managers create materials to support the day-to-day operations of the team. He/she is not swamped by questions about the product and ensures that the product manager is not the only one that can answer questions about the product. • Good product managers focus the team on revenue and customers. • Good product managers focus on delivering value to the market place and not on just matching the competition. • Good product managers are disciplined and maintain schedules. Good VS. Bad Product Managers
- 32. • To some degree, Product Managers are born, not made… leadership skills are a prerequisite • Draft well – don’t skimp on training (its about process, the product can be learned) • Some Engineers can be successful Product Managers (Must be “out of box” thinkers and an MBA is recommended. Beware the Engineer with no creativity!) • A good Salesman will not necessarily become a good Product Manager but a good Product Manager must be a good Salesman • If unable to “Multi-Task”, forget about Product Management • Product Managers must be expert communicators, have exceptional interpersonal skills and be “comfortable in their own skin” (and the skin better be thick). • “Good” Product Managers are not necessarily “Good” People Managers – Don’t make the mistake of promoting someone to a position managing others just because they are Subject Matter Experts. • Product Management activities should create a “One to Many” effect – There should be leverage in everything a Product Manager does. • Sales, Engineering and Marketing must share an integrated approach and must not operate independently • Empowerment is essential – Product Managers have limited authority, others in leadership must not undermine their efforts • Unfortunately, great Product Managers move on to leadership positions or get lured away (always have a succession plan) • Product Management is a terrific training ground for General Management MyAdvice To You
- 33. QUESTIONS/DISCUSSION What Is It? Product Management vs. Product Development Special Thanks to Sequent Learning Systems and to the Medical Product Management Institute whose training materials and practical experience are the basis for much of this presentation and whose approach to Product Management is quite similar to mine. OMTEC 2016
- 34. THANKS! Overlook International Group LLC 8732 Sage Brush Way Columbia MD 21045 410-456-6282 wmgitt@gmail.com WARREN GITT