🧠3 Types of Product Management Knowledge And How to Build Them
Alex KlufasThe Three Types of Product Management Knowledge
Welcome to the first edition of Pivot Into: Product! 😊
We’re definitely going to hit some growing pains, so please stick with me for a few newsletter issues!
Product management requires a broad range of skills and knowledge. You’re responsible for ensuring that the product is:
Successful in the market
Meets the needs of customers
Supports the company's strategic goals
To achieve these objectives, you must have a deep understanding of the 3 key PM knowledge areas:
Functional Knowledge
Organizational Knowledge
Industry Knowledge
Functional Knowledge
The Definition
Functional knowledge is knowing how your product works. This includes the history of your product, the direction of your product, and how your product fits into the overall company structure.
Why do I care?
Functional knowledge is important for identifying opportunities for innovation and improvement. By understanding the strengths and weaknesses of your product, you can identify areas where you can add value and differentiate yourself from the competition.
How to Build Functional Knowledge
To build functional knowledge, you need to review your product documentation and have conversations with your coworkers about how your product came to be.
You need to understand the features, benefits, and limitations of your product to be able to communicate effectively with developers, designers, and other stakeholders. Having a solid understanding of the functionality of your product will help you make informed decisions when it comes to prioritizing features, testing new ideas, and improving the user experience.
Organizational Knowledge
The Definition
Organizational knowledge is understanding how your company works, who are the key people you need to communicate with, and, most importantly, the flow of information. You want to be able to know who to turn to when you need to get a certain task done.
Why do I care?
Organizational knowledge is essential for building consensus and driving change within the company. As a product manager, you will need to work closely with people from different departments and levels of seniority to achieve your objectives. Understanding the motivations and incentives of different stakeholders will help you make a compelling case for your ideas and get buy-in from decision-makers.
How to Build Organizational Knowledge
Building organizational knowledge requires observation and documentation of the key players and their motives. Understanding the roles and responsibilities of different departments and stakeholders will help you navigate the company hierarchy and make informed decisions.
Organizational knowledge is crucial for setting realistic timelines, managing resources, and collaborating with cross-functional teams.
Industry Knowledge
The Definition
Industry knowledge is understanding the market you operate in. You want to understand who your competitors are, their advantages, and trends in the wider industry.
Why do I care?
Industry knowledge is important for identifying potential threats and weaknesses in your product or business model. By understanding the broader industry landscape, you can anticipate changes in customer preferences, emerging technologies, and new entrants into the market. This knowledge can help you develop contingency plans and adapt your strategy to stay ahead of the curve.
How to Build Industry Knowledge
To build industry knowledge, consume news, analyst reports, and review competitor’s websites. Keeping up with industry trends and emerging technologies will help you identify new opportunities and stay ahead of the competition. It will also help you make informed decisions when it comes to pricing, marketing, and positioning your product in the marketplace.
Investing time and effort into building these types of knowledge will help you make informed decisions, communicate effectively with stakeholders, and ultimately drive the success of your product.
As a product manager, it is your responsibility to continually develop and refine your knowledge in these areas to stay competitive and drive innovation in your company.
