Tammy Tibbles’ Post

View profile for Tammy Tibbles, graphic

Fractional and Interim Head of Product for startups and growth-stage companies

Can a Product Manager own the P&L for a product if the teams building and supporting the product don’t report to the #ProductManager? You must set people up for success if you want them to succeed. Giving a product manager the responsibility of profit and loss over a product without authority over how it is built and maintained is the opposite of setting them up for success. I had a conversation with Ruby Raley about this yesterday. I shared a story about a company I know where the CTO was charged with building a new product. He outsourced it to an IT vendor. They got it built in about 9 months. It was sold to a handful of clients. The clients started using it. The bill arrived from the cloud hosting service and it was $1.2M for the month‼️ The company was going to lose over $1M a month just to run the product. 👆🏻This is what happens when goals and incentives are misaligned and constraints are not communicated. The CTO was not involved in pricing; nor had he considered the cost of the architectural decisions made by the outsource team. I rarely see the engineering organization report into the Head of Product. And even more rarely are product managers setting pricing for the products they manage, or determining the size and quality of their design and development teams. Honestly, I am on the fence about this topic. I see so many product managers struggling with the demands of doing all the things they need to do to manage their products. Many PMs only have 3-5 years of business experience. Do they have the time, skills, training, and aptitude for managing a P&L too? Does the reporting structure support it? Will the executive team support it? I would love to hear from product managers. Do you manage your product’s #ProfitAndLoss? Do you want to?

View profile for Ed Biden, graphic

Chief Product Officer | Advisor

The time for zero-interest product managers has ended Casey Winters came up with the term “zero-interest PMs”: • Don’t deliver business impact • Can’t articulate the commercial case for the work they are doing • Cost the business more money than they deliver • Don’t feel comfortable taking big decisions • Don’t feel accountable for success of their team As a product manager you are a sculptor of the P&L. You’ve got to be increasing profitability by: 1. Getting more customers 2. Selling more to customers 3. Reducing costs The way you do that is through deep understanding of customer needs. But solving customer problems alone is NOT sufficient to do your job. There’s a lot of work out there that will incrementally improve the user experience and won’t change the business fundamentals. How long will your company invest in you and your product team if you’re not delivering a return on investment? Visit Hustle Badger for practical advice for product leaders DM me for private workshops, coaching and advice

Ed Biden

Chief Product Officer | Advisor

2mo

Tammy Tibbles I think PMs owning the P&L is a pretty extreme position, and in most cases I wouldn't advocate this. But I think product teams have a fairly special role in that they can shape the P&L - unlike say, sales or marketing who usually just drive the top line. If PMs are working smart (and empowered to do so! Big if...) then they can change the cost of customer acquisition, the LTV of customers, or the cost to serve. They don't need to own the whole P&L to do that, but that's driving real financial benefits for the company.

Ruby Raley

Strategic Sales Leader who GETS Marketing | Delivering Revenue | Getting Things Done | Selling SaaS & Services | Transforming Teams | Florida History and Other Tall Tales

2mo

Great post. I think Product Managers are often not the P&L owner. I believe that decisions that product makes affects revenue and can cause leakage. Many folks think that sales owns pricing but my experience is sales owns discounting within guidelines. So who sets prices and do they know what customers want? Does pricing team know how price affects retention and adoption? From a sales standpoint, what drives upsell is important. How does customer behavior guide pricing decisions? I strongly believe this is an important conversation that startups need to have.

Dave Cross

CEO & Co-founder at Crosshatch Games

1mo

Well, someone has to own the P&L, regardless of the title. If it's the PM, then it makes me wonder what the executive team is doing 🤔

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