What Is Product Management Maturity Model?
What Is Product Management Maturity Model?
The product management maturity model is a method of measuring the optimal function and effectiveness of product management in a company. It is a new concept used in organizations with extensive product portfolios. The product management maturity model measures the performance of functions, such as interactions between the people, processes, and systems that support the product.
Every company can be evaluated on their maturity in these areas. Based on this evaluation, they're classified into tiered levels of optimizations, helping to identify problem areas and create a plan of action for improving them.
Why is a product management maturity model important?
The success of a product may be measured by the revenue generated or customers serviced. To determine if a product is performing at its most profitable, we examine the organizational structure responsible for it. This may lead to questions like:
- Does the product strategy align with the company's business objectives?
- Are the processes followed in product management well-defined?
- Are features being prioritized correctly?
- Is the release timeframe in alignment with all product teams?
A product management maturity model ensures defined parameters for planning, building, and delivering products to meet your company's business objectives.
Levels of the product management maturity model
Generally, maturity model frameworks have three to five levels. Every level underlines the product management maturity of a particular domain in a company.
1. Ad-hoc
Companies that fall into this level are usually startups. However, poorly structured mid-sized and large organizations may fall in this group too. In ad-hoc product management, there is almost no planning, defined processes, or structured roles.
Every time a new product or feature is to be released, all processes are reinvented. In ad-hoc project management companies, employees may suffer from stress or burnout from rework or failure to meet product goals.
2. Partially defined
In these companies, there is a slightly more pronounced organizational structure with management functions partially defined. There is better role clarification for employees, making it a more effective workplace.
Product managers in partially defined maturity models tend to think on their feet or make tactical decisions rather than strategic ones. Though not wholly ad-hoc, processes are still largely trial and error-based. The processes set in place are usually created by experienced product managers who have been formally trained for their roles. These processes are then followed by newer or more inexperienced managers.
Partially defined companies are usually aware of their strategic deficits. However, they may lack planning to drive the company to the next level, reducing the overall impact of the product and the company's revenue.
3. Optimized
In a completely optimized product management maturity model, every process, role, and system is well-defined and streamlined. In such organizations, all stakeholders work to the best of their ability and add value to the company.
Along with product life cycle knowledge, optimized product managers are trained with foundational skills that inspire them to drive initiatives.
Achieving product management maturity in an organization is crucial for the products and the company to succeed. Finding areas of improvement go a long way in bridging the time gaps and organizational deficits that reduce profitability in most companies.
