Good Product Manager vs. Bad Product Manager: Lessons for Software Companies
- Fredrik Navjord
- 2 mars
- 5 min läsning
Adaptation on the work by Ben Horowitz and David Weiden A great product manager is critical to the success of any software product. They are the driving force behind turning an idea into a thriving product, and keeping it ahead of the competition. In fact, a product manager's ability to lead successful product development is often the top criterion for promoting leaders in software organizations.
However, being a great product manager is challenging—so much so that many fail, resulting in flawed products, missed opportunities, and damaged team morale. Bad product management doesn’t just hurt the product—it can derail entire teams, causing cascading issues for revenue and reputation.
This guide outlines practical principles and behaviors that distinguish exceptional product managers from poor ones, providing actionable insights for those navigating software development.
What Makes a Good Product Manager?
1. CEO of the Product
A great product manager owns their product like a CEO owns a company. They take ultimate responsibility for its success or failure, crafting a clear vision and rallying the team to make it a reality.
Example: Think of a PM working on a task management app. A good PM ensures every team member understands the goal: "Make task tracking so simple that users can organize their day in under a minute." They guide every decision—from UX design to marketing—with this vision.
Good Product Managers:
Drive the product vision and ensure everyone understands it.
Balance business, technical, and customer considerations.
Are respected as the leader of the product team.
Bad Product Managers:
See themselves as mere marketers or administrators.
Get bogged down in minor tasks like meeting notes or press releases.
Make excuses for failure instead of taking ownership.
Example: A bad PM on the same task management app might only focus on writing feature descriptions and delegating tasks without ensuring alignment on the overall product vision.
2. Master of Balancing Priorities
Good product managers balance key factors that drive the success of software products.
Key Factors to Balance:
Company Goals & Capabilities: A PM at a startup prioritizing user acquisition should know they can’t afford a feature-heavy product that requires a long sales cycle. Instead, they launch a simple, intuitive version first to attract users quickly.
Customer Needs: If users request "an export to Excel" feature, a good PM probes further: "Why do you need it?" The answer might reveal they’re trying to analyze team productivity, which could lead to building a built-in analytics dashboard instead.
Competition: A PM working on a cloud storage app ensures their product stands out by offering seamless integration with the most popular tools (e.g., Slack, Trello) rather than trying to outdo competitors on storage size alone.
Good Product Managers:
Know what they know, admit what they don’t, and actively seek answers.
Anticipate changes and regularly revisit their assumptions.
Ensure their team aligns on the product’s direction.
Bad Product Managers:
Build products for the wrong markets or fail to prioritize based on company strengths.
React to competitors without creating a unique product identity.
Ignore shifting dynamics and let the product fail.
3. Clear, Written Communication
Defining product requirements clearly and thoroughly is one of the most critical responsibilities of a software product manager.
Example: When designing a video conferencing tool, a good PM specifies:
What the product does: "Allows up to 50 participants in a single call with HD video and noise cancellation."
Who it’s for: "Remote teams needing reliable video meetings."
Release criteria: "Must work on macOS, Windows, and iOS; 99.9% uptime required."
Good Product Managers:
Write comprehensive Product Requirement Documents (PRDs) that clearly define the "what" (not the "how").
Engage with engineering early to anticipate challenges and ensure alignment.
Update PRDs regularly and communicate changes to the team.
Bad Product Managers:
Leave requirements vague, leading to misinterpretations.
Dictate technical solutions without consulting engineering.
Neglect to keep documentation up to date or fail to share updates.
Example: A bad PM might say, "Make it easy to use," without defining what "easy" means, leaving the engineering team to guess at critical details.
4. Clear Goals and Differentiation
Software products succeed when they have a clear purpose and unique value in the market.
Example: For a fintech app, a good PM defines clear goals: "Enable users to invest spare change with one click, driving 10% monthly user growth." They also articulate differentiation: "We’re the only app that offers round-ups plus personalized investment advice."
Good Product Managers:
Define specific, measurable goals for success.
Understand their product’s competitive advantages and communicate them effectively.
Bad Product Managers:
Have vague or shifting goals.
Struggle to articulate how their product is different or better.
5. Sales and Customer Focus
A good product manager bridges the gap between development and the real world.
Good Product Managers:
Build strong relationships with the sales team, understanding their challenges and helping them succeed.
Spend time with customers, learning firsthand about their needs and use cases.
Are great presenters, making the product’s value clear and compelling.
Example: A good PM working on CRM software attends sales pitches to hear objections firsthand, then adapts product messaging to address common customer pain points.
Bad Product Managers:
Ignore the sales team’s insights or avoid customer interaction.
Focus only on competitors or technical details, neglecting the customer perspective.
Example: A bad PM might avoid customer calls entirely, leading to features that sound good on paper but fail to address real-world needs.
Core Skills for Software Product Managers
Marketing & Communication:
Clearly articulate the product’s value and ensure consistency across all materials.
Create reusable assets (FAQs, presentations, white papers) to streamline communication.
Example: A good PM on a SaaS platform creates a detailed FAQ document, reducing repetitive questions from sales and support teams.
Time Management:
Focus on high-impact tasks, like closing big deals or refining product strategy.
Avoid getting stuck in reactive tasks by building scalable resources.
Example: Instead of answering the same question from sales repeatedly, a good PM creates a recorded demo explaining key features.
Discipline:
Keep product plans up to date and communicate regularly.
Set realistic expectations and ensure engineering focuses on critical work.
Example: A disciplined PM ensures their project management tool is always updated so stakeholders can track progress without unnecessary meetings.
The Difference Between Good and Great
Good Product Managers:
Execute effectively on their product’s vision and goals.
Deliver results and establish themselves as leaders within their teams.
Great Product Managers:
Think beyond their product, influencing overall company strategy.
Anticipate challenges, build strong relationships with executives, and leverage the full organization to succeed.
Use creativity and intensity to solve problems and drive the business forward.
Example: A great PM at a software company identifies an untapped market segment and leads cross-functional teams to launch a new product that becomes a major growth driver.
Final Thoughts
Product management is one of the most demanding yet rewarding roles in the software industry. It requires balancing vision, execution, and communication while maintaining a relentless focus on customer and business success. By embracing these principles—and learning from real-world examples—product managers can lead their teams to create software products that thrive in competitive markets.