Product Owner vs Product Manager – A Comparative Analysis

One big question always pops up when building a product: who’s in charge of what?

If you are a growing company, then chances are that you probably have heard the terms “Product Owner” and “Product Manager.”

But how’s this any different? And are they just more expensive synonyms for the same job, or do they actually have very different roles? They appear to be talking about the same thing, but if we dig a bit deeper, it emerges that these are two different positions with unique purposes and focuses.

Let’s break down product owner vs product manager clearly and answer what we have all probably asked ourselves when building a product team.

Product Owner vs Product Manager: Key Responsibilities that Make Them Different

At first glance, both roles work towards successfully creating products. But how they do it is totally different.

The PM (product manager) is looking at the big picture. They are considering the future of the product, what the market really needs, and how it fits with the company’s ideals.

They ask, “Where do we want to see this product in five years?”

On the other hand, the PO (product owner) concentrates mostly on day-to-day details. They ensure the vision from the PM is implemented by the development team.

They are more in touch with what’s happening today. A PO will have more technical time, where they directly talk to developers, making the ideas a reality.

In a nutshell, a PM would decide what and why, whereas a PO would figure out how and when.

Key Differences:

• Product Manager:
  • Long-term strategy.
  • Market research and competitor analysis.
  • Align the product with business objectives.
  • Manage the product roadmap.

• Product Owner:
  • Translate product vision to tasks to be executed by the development team.
  • Manage the product backlog.
  • Focus on user stories and technical implementation.
  • Collaborate with the Scrum team so that the product is on track.

The Product Manager is always looking ahead.

They are the ones asking, “Where is the market going?” The PM has to predict trends, understand user needs, and make a product roadmap that takes the development team towards long-term goals.

Think about designing an e-commerce platform. So, the PM would study competitors like Flipkart or Amazon. He would analyse customer behaviour and then decide what is critical to be included in the platform so that one can compete after two years.

Here is what the PM does in this scenario:

• Analyses market trends: They don’t see what users want today but what they would need tomorrow.
• Picks features: They can’t build all of it simultaneously, so they identify what adds the highest value to the product.
• Closely works with stakeholders: The PM collaborates with marketing, sales, and other executives to ensure the product aligns with the business goals.

The PM is not coding or designing, but they are charged with making sure the product stays relevant. They decide on the direction with the aim of ensuring the product will provide value to the business as well as value to the user.

Also Read: How to become a Product Manager

Tactical Role of the Product Owner in Managing Backlog and Sprint Execution

While the Product Manager takes the view of the horizon – the Product Owner is knee-deep in the details.

The PO works within the Scrum framework if the company follows Agile. They are the ones talking every day with the development team to make sure what the PM has mapped out in a roadmap is translated into actionable tasks.

Let’s get back to the e-commerce example.

Once the PM defines AI-based product recommendations as the priority, the PO will work to break down that goal into smaller tasks called user stories. Then, they collaborate with developers to determine what needs to occur in each sprint.

This’s how the PO works in this context:

• Manages the backlog: The PO prioritises the user stories and technical requirements based on the roadmap.
• Translate vision to tasks: They help break up high-level goals into workable tasks for the team.
• Sets a runaway sprint back on track: The PO ensures that the team is delivering the right features at the right time.
• Lead communication with the development team: they truly bridge the gap between the technical team and the product vision.

PO does not just sit back and wait for things to get done

They are actively involved in ensuring that all moves during a sprint take the product forward. When things get really tough, it is the PO who problem-solves, ensuring the team is always working on what matters most.

Product Owner vs Product Manager: How Decision-Making Differs

Product owner vs product manager: who decides what should be delivered as a result of today’s work, and who thinks about tomorrow?

The product manager looks into the future. The guy is thinking about the future of the product—for example, where it needs to be in six months, a year, or even two years.

Their choices are derived based on market analysis, the needs of the users and business strategy.

Product Owner, on the other hand, is focused on the ‘here and now.’ They are deciding what the development team needs to work on this sprint. The PO takes the PM’s vision into action, ensuring the product keeps going.

Thus, even though both of them make critical decisions, their focuses and timing differ.

Key Differences in Decision-Making:

• Product Manager:
  • Long-term impact.
  • Measures what to build based on business objectives.
  • Analyses user data and market trends as a guideline for what should be built next.
• Product Owner:
  • In-process activities.
  • Converts overall goals into sprint priorities.
  • Ensures that the team is building the right feature at the right time.

Example:

Think about developing a mobile banking application.

The product manager can decide that including UPI payments will be critical next year to stay relevant in India.

The product owner elaborates that objective into a more granular set of work, such as UI changes, security updates, and integration of payment gateways, for example, for the next sprints.

Both roles make decisions that keep the product on track.

However, a product manager looks a bit further forward, while a product owner makes sure these decisions are made and acted upon.

Skills Breakdown: What It Takes to Succeed as a Product Owner vs Product Manager

Product Manager Skills:

• Market Research: A PM must be aware of industry trends and what bothers customers. Thus, they have to formulate a roadmap which keeps the product ahead of competitors.
• Strategic Thinking: They should always have a big-picture view. The product should align with long-term company objectives.
• Communication: PMs should be able to communicate the product vision to stakeholders, such as executives, marketing teams, and sales departments.
• Leadership: The PM should lead cross-functional teams and ensure everyone is in the know.

Product Owner Skills:

• Scrum and Agile Expertise: They should be well aware of agile methodologies, especially Scrum so that the sprint can easily be delivered.
• Backlog Management: They must be able to organise and prioritise user stories in the product backlog.
• Problem-Solving: POs have to handle everyday blockers, so strong problem-solving skills are needed to get blockers across quickly.
• Collaboration: They have close interaction with developers, testers, and designers so that the product reflects the vision of the PM.

How Product Managers and Product Owners Engage with Teams and Stakeholders

In a well-oiled product team, the Product Manager and Product Owner have great cooperation.

However, they interact with different groups.

The product manager spends most of his time discussing with stakeholders. They are in constant communication with marketing, sales, and executives. Their job is to ensure everyone knows which direction the product is headed. They gather feedback and adjust the roadmap if necessary.

The product owner primarily works with the development team. They are the liaisons between the team and the product vision. They can break down features and enable the team to remove roadblocks; they keep the team on track.

Ultimately, these roles have to converge in close alignment to ensure that what is being built is aligned with the long-term vision.

The Product Manager sets the course, and the Product Owner makes sure the team stays the course.

The Product Managers vs. Product Owners in Agile and Scrum Environments

In a Scrum setting, it is the product Owner who plays a very key role.

They work closely with the development team during sprint planning and backlog grooming activities. Their job is to ensure that the correct features are built in the correct order and with the correct amount of detail.

The product manager operates outside of the Scrum team.

They are not part of the daily standups or sprint reviews. They work on strategic alignment and help shepherd the product so it grows in the correct direction and is aligned with user needs.

Key Roles in Agile:

• Product Manager:
  • Collaborate to define the product strategy over the long term.
  • Roadmaps are adjusted according to market and user feedback.
  • Communicates goals to stakeholders.
• Product Owner:
  • Break down goals into user stories.
  • Participates during sprint planning with the team to ensure goals will be met.
  • Maintains the backlog prioritised and organised.

Example:
Over the next year, a product manager for a food delivery app might plan new features to include subscription services.

In the meantime, the product owner makes sure that the development team works on more substantial deliverables, like adding a “save favourite meals” feature in the upcoming sprint.

Also read: What is Production Management

When to Use Both a Product Manager and Product Owner: Organisational Needs

Not every company needs both a Product Manager and a Product Owner.

So how do you decide?

If you are a small business or startup, you may just have one doing both. Now, the person has to balance strategy with execution in the long term with implementation on a day-to-day basis.

However, for large companies, it is highly important that the team is divided into two.

When to Use Both:

• Large teams: If you have a large development team, it makes sense to have someone focused on the details (product owner) and someone who manages the big picture (product manager).
• Complex products: In the case of a complex product, both roles are very useful in differentiating responsibilities.
• Multiple stakeholders: You have to manage several departments or external partners within your organisation. A Product Manager will find it easier to handle communication, and the Product Owner will find it easier to handle the team.

Career Path for Product Owners and Product Managers

One big question most people ask: Where does this role lead? Is there a clear path for growth if you’re a Product Owner or Product Manager?

Let’s break it down.

Both Product Managers and Product Owners have stable career paths, but they can diverge as responsibilities grow.

Product Manager Career Path

A product manager is much more visible within an organisation. Hence, career paths can lead to senior leadership in the organisation.

This is what the progression of a product manager might look like:

• Senior Product Manager: You are dealing with more complicated products in terms of size.
• Director of Product Management: You will hold complete ownership of several products or a portfolio of products.
• VP of Product: You lead the entire product organisation and are heavily involved in strategic business decisions.
• Chief Product Officer (CPO): In this role, you work directly with the C-suite and board to establish how the product will shape the company’s vision and direction.

Product Owner Career Path

For a product owner, the path often stays within agile frameworks, but there are still plenty of growth opportunities:

• Senior Product Owner: You handle more complex product backlogs and development teams.
• Scrum Master: After gaining quite a bit of experience, some product owners find themselves becoming Scrum Masters to help teams get much better at using agile practices.
• Product Manager: A few product owners become product managers, where they become a little strategic.
• Agile Coach: POs who have grasped the heart of the agile methodology can become Agile Coaches for those organisations while helping other teams and organisations improve their workflows.

Success Metrics: How Product Managers and Product Owners Measure Performance

How do we know if a Product Manager or Product Owner is doing a good job?

The answer lies in metrics. But the way success is measured differs between the two roles.

Product Manager Metrics

A product manager needs to keep tabs on big-picture outcomes. They look at metrics that show how well the product is performing in the market:

• Revenue: Is it generating revenue for the business?
• Customer Satisfaction: How much do customers love the product?
• Market Share: Is it expanding its market share in the industry?
• User Retention: How many customers are sticking around?

Product Owner Metrics

Their focus is on delivery and efficiency. They watch the process of development:

• Sprint Velocity: How much work can the team deliver in a sprint?
• Backlog Management: Is the backlog well-prioritised and up to date?
• Delivery Time: How quickly are the features being developed and deployed?
• Quality: Are there fewer bugs or technical issues after each sprint?

Conclusion

Knowledge of the different responsibilities of product owner vs product manager facilitates a more balanced process of product development.

A product manager focuses on a long-term view and market alignment, leading the strategy of the product, but a product owner controls day-to-day execution through teams to ensure they build the right features at the right time.

These roles differ, yet they have to work together in order to succeed.

Having a Product Owner and a Product Manager, whether in a startup or an enterprise, would ensure that the product stays focused on the users’ needs, in accordance with the business goals, and in compliance with the technical requirements. As companies scale, splitting these roles helps to focus efforts and produce better outcomes.

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