62: How to measure product manager performance

62: How to measure product manager performance

Early on in my blog, I wrote one of my most popular posts – 4 key ways to spot a successful product manager – about measuring the performance of product managers. The problem is that a lot – and I mean a huge amount – has changed in product management, and my own approach, since I wrote it.

I found myself describing to Martin Eriksson at his recent book launch some work I did at the UK’s Ministry of Justice on measuring product manager performance. So here’s an update to my original article from a real-life case study.

A bit of context #

Let me put this in context for you. When I wrote the original post about how to spot a good product manager, my experience up until that point had mostly been in the kind of companies that regarded product management as an evolution of project management – very process-driven. Gantt charts at dawn!

There, the product manager was meant to follow a waterfall process and attempt to make the user interface look like it hadn’t been designed by a database developer. (Even though it had.)

As a result my initial take on measuring how well a product manager is doing was against that backdrop.

Since then, I’ve learned a helluva lot from the dozens of different organisations I’ve worked with in the private and public sectors, many of which are embracing a more up-to-date approach to product delivery (i.e. user-centric, evidence-led, multi-disciplinary teams).

A terrible idea #

Ministry of Justice at 10 Petty France, London (Credit: Getty Images)
Ministry of Justice at 10 Petty France, London (Credit: Getty Images)

In the UK’s Ministry of Justice, I was Head of Product for their digital team, during which time I was responsible for 12 product managers of varying degrees of experience. Each product manager worked with her or his own multi-disciplinary delivery team (product management, research, design, development and delivery management).

Misguidedly, the senior management team was clinging on to their attempt to apply a command and control structure to a capable team of autonomous and intelligent people. Not the right approach at all. They had asked me to “stack rank” my product managers (assess their performance and put them in order from best to worst). There’s rarely any other reason for doing this other than a desire to reduce headcount by culling the worst performers.1

John Cleese, Ronnie Barker and Ronnie Corbett in 1966’s Class Sketch on ‘The Frost Report’ (Credit: Rex / BBC)
John Cleese, Ronnie Barker and Ronnie Corbett in 1966’s Class Sketch on ‘The Frost Report’ (Credit: Rex / BBC)

It didn’t appear to occur to them – though I pointed it out repeatedly – that this was frankly a terrible idea.

Hurray for diversity #

For starters, I knew that each person on my team was already a strong performer. Some of them had been in product management far longer that I had. Others were relatively new product managers, but even considering that were doing just fine, thanks.

Even if it was possible to assess all 12 product managers on a relative, linear scale normalised for their relative levels of experience, my team was perfectly capable of reading between the lines – they’d object so much to the stack rank exercise that they’d probably leave on principle. And I wouldn’t blame them for doing so, because who doesn’t love being devalued and treated as a commodity, right?

Each member of my team had different strengths and weaknesses, different backgrounds and levels of experience, different skill sets and different approaches. Sure, they were all product managers, but they each did product management differently. This was exactly what I needed them to do, because they were all solving different user problems.

Between compliance and disobedience #

It was becoming clear that I couldn’t refuse to assess their performance outright. This would lead to my swift removal, then someone less protective of my team than me would simply pick an arbitrary metric, rank my team and fire a few of them. I could serve my team better by treading a fine line between compliance and overt disobedience. I would do some kind of performance assessment, but I’d structure it so that a stack rank was bloody hard to do.

This is what I came up with.

Start with the team #

First of all, I sat down with my team and talked through what was going on. I then surveyed them to establish what they felt were the most important soft (emotional) and hard (technical) skills a product manager needed. We used the top ten or so as the dimensions for their assessment. I also asked them how conversant they were with skills from other disciplines they frequently would interact with, such as research, design, content and development.

Click on image to enlarge

Then I got them to assess themselves individually. They gave themselves a score out of 5 based on how skilled they felt they were in each area. I then plotted the results for each individual on a polar chart, and compared that to the team average.

Immediately it was clear to see where the team felt it was stronger and weaker. After seeing the results, several of my team took the initiative to start filling in the gaps: one person buddied up with another product manager who was more experienced in Kanban, another put themselves forward to do more public speaking, and so on.

Peer feedback #

But the really interesting part was yet to come. I asked each of the delivery teams to rate (anonymously) their product manager on the same sets of skills. A product manager needs to be effective in their interactions with their multi-disciplinary team, so I was interested in their team’s subjective perceptions of their product manager. Were they good communicators? Did they inspire?

Click on image to enlarge

This exercise again yielded some interesting insights. In some areas the product manager’s self-assessment and their delivery team’s assessment were in agreement. In others, the product manager had rated themselves weaker in an area, while the team thought they were particularly strong – and vice versa. These findings were also worth exploring further.

The distance between us #

Lastly, I asked senior management to rate the product managers in the same way I’d asked the delivery teams to. With a couple of notable exceptions, it was clear that senior managers had next to no idea how to answer the questions – they simply weren’t close enough to the product managers to make any kind of assessment.

While this highlighted a failing of the senior management team in what was declaring itself to be a ‘flat organisation’ (yeah, right), it also was a point for improvement in the product managers. Given how reliant they were on having senior management’s support to keep things moving apace, clearly they needed to invest more time into stakeholder management.

Takeaways #

So, what do I want you take away from this?

Measuring product manager performance is multi-dimensional – a role requiring multiple skills means you need to assess multiple performance areas

There is no single, absolute measure of performance – people have different strengths and weaknesses (and that’s okay)

You don’t want a homogeneous team – user problems are not all identical so you want a mixture of personalities, experience and abilities on your team to tackle them

Never underestimate the power of a pretty graph – it’s never a waste to spend a bit more time on making your stats easier to consume and tell their story more easily

Examples #

Click the image for the live demo

I used Highcharts to render the charts. Each product manager had their own page – for their eyes only. Senior management only got to see the aggregated averages in case they got any big ideas.

I’ve got a live demo of the full report page available if you fancy taking a look. Needless to say, for this article the individual’s data has been anonymised (there was no product manager called Petra) and slightly randomised.

The two surveys that I used are here:

Similar versions of the self-assessment survey were also used for the product manager’s team and for senior management.

If you have any questions, pop them in the comments below.

Notes #

  1. This was a few years ago, thankfully things are far more sensible on the Ministry of Justice Digital team these days.

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Jock is a freelance head of product, author and conference speaker. He has spent nearly two decades working with technology companies to improve their product management practices, from startups to multinationals. His clients include the BBC, University of Cambridge, and the UK's Ministry of Justice and Government Digital Service (GDS).In 2012 Jock founded Product People Limited, a product management consultancy and training company. He is also the author of the popular book The Practitioner's Guide to Product Management and the blog I Manage Products.

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8 Comments on “62: How to measure product manager performance

  1. Jock, we agree that not all companies understand product management or agree on the value good product management provides.

    But the primary topic of this discussion has been about how companies should assess the performance of product managers, not about how they do assess it or whether they agree on what value a well-performing product manager provides.

    As every good product manager knows, value is rooted in solving problems. Accordingly, I enumerated the problems a product manager provides leadership in solving. I then went on to suggest questions that shed light on the extent of a product manager’s contributions to solving the problems.

    In summary, the approach I have suggested measures, and provides insights into, the impact the product manager’s application of her talents and skills is having on solving problems, and therefore providing (real, not perceived) value to the organization.

    There is nothing wrong with assessing a product manager’s skills and abilities. But skills and abilities are not the same as performance. Moreover, as I have argued, measures of product manager performance, as I have defined them, are not the same as measures of product performance, and they embrace that factors outside of a product manager’s control affect ultimate outcomes.

  2. Respectfully, I disagree that “skills and abilities are not the same as performance” – I believe a product manager’s performance encompasses both their skills and abilities, as well as their effectiveness, but I’ve already covered these points.