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Product operations is a key player in evolving product-centered companies, but why? And should your company consider using product ops? This article covers everything you need to understand about product ops and how it fits into product management.
Products evolve. That is the basis for product management, which helps products evolve and grow into versions that better meet the needs of the market. Companies evolve. Netflix grew from a company that mailed DVDs to homes into a disruptive company streaming movies directly into living rooms across the nation. So, it’s no surprise that roles also evolve, which is how product operations came into the picture.
Growing companies faced the challenges of managing increasingly complex products and struggled with the efficient utilization of rapidly expanding data sets. Product operations were established to help face these challenges by handling some of the operational work that is necessary but also time-consuming. By offloading these tasks, product managers could focus on building better, more profitable products.
But what is product operations, how does it diverge from other product roles? What functions does it fulfill within an organization? Let’s explore product ops and how it plays a role in growing product-centered companies.
You can start at the beginning or skip to the part that most interests you:
- What is product operations?
- Product operations and other product roles
- Product operations responsibilities
- Who needs product operations?
- Final thoughts on product ops
What is Product Operations?
The most basic way to understand the role of product operations, or product ops, is to see it as a support system for product teams. Product teams are responsible for a laundry list of tasks, many of which are high stakes. They juggle many essential responsibilities, from representing user needs and defining a product’s vision and strategy to creating product positioning. Product teams also collaborate extensively with various departments to align product strategy with company objectives and market conditions.
As a company grows, the demands on product teams also grow, which is where product operations come into the picture. Product operations keep product teams on the same page, working toward the same goals and measuring against the same benchmarks. This arrangement ensures that product teams work efficiently, are well-coordinated and use data effectively to drive decisions.
Product operations also help manage and improve the systems and procedures that product teams use daily. Not only does this help product teams become more effective, but it also contributes to developing internal best practices and long-term improvement.
Product Ops and Other Product Roles
At first glance, it can seem difficult to differentiate between product roles. After all, at the heart of all product roles lies the goal of creating products that delight customers and meet business objectives. Reaching those goals, however, requires a great deal of work from a variety of disciplines, both on and off the product team.
It can be easier to understand the place of product operations within the big picture when you compare simplified definitions of product operations against product management and product marketing.
Product operations streamline internal processes to enhance the efficiency of the product team, ensuring that all components of product development are well-coordinated and data-driven, but:
Product management crafts and executes strategies for product development, focusing on defining the product vision, prioritizing features and meeting customer needs.
Product marketing creates and implements marketing strategies to generate demand and effectively position the product in the competitive market.
When you look at these stripped-down definitions, it is easier to see the differences between these roles. It’s worth noting, however, that in smaller organizations, product managers often handle tasks under all three roles. So, if the responsibilities of all three definitions fall onto the product manager’s desk in your organization, you likely haven’t grown to the point of needing product ops yet.
You can learn more about product operations versus product management.
Product Operations Responsibilities
Companies leverage teams, including product operations, in a way that aligns with their current needs, staffing levels and future plans. This means how product ops functions can look different from company to company. However, some general responsibilities and expectations fall under the umbrella of product ops.
Let’s look at some typical product operation responsibilities and how each benefits product teams.
Data Management and Analysis: Collecting, organizing, and analyzing data to inform strategic decisions and monitor product performance.
How it benefits product teams: By handling the complex task of data management, product operations enable product teams to focus on strategic decision-making. This frees up product managers to use insights from well-organized data without getting bogged down by data gathering and analysis details.
Process Standardization: Developing and standardizing processes and tools across teams to ensure consistency and efficiency.
How it benefits product teams: Standard processes reduce confusion and errors, making it easier for product teams to collaborate and move quickly. This consistency leads to faster execution and less time spent on course correction.
Communication Facilitation: Streamlining communication between product teams and other departments to ensure alignment on product goals.
How it benefits product teams: Clear and efficient communication helps product teams stay aligned with company objectives. It also reduces miscommunication and ensures everyone is working towards the same goals, enhancing teamwork and productivity.
Best Practices Development: Identifying and implementing best product development and management practices.
How it benefits product teams: By researching and implementing best practices, product ops provide product teams with effective strategies and tools. This supports continuous improvement and helps maintain high standards across all product-related activities.
Tool Administration: Managing the tools and technologies the product teams use, ensuring they are optimized for performance.
How it benefits product teams: Effective tool management ensures that product teams have reliable and efficient tools tailored to their needs. This minimizes downtime and maximizes productivity.
Performance Measurement: Setting up metrics and KPIs to measure the success of product operations and the overall health of the product lifecycle.
How it benefits product teams: By establishing clear metrics, product operations provide a framework for evaluating performance. This enables product teams to understand their impact and identify areas for improvement.
Stakeholder Collaboration: Working closely with stakeholders such as engineering, sales, marketing, and customer support to gather insights and coordinate efforts.
How it benefits product teams: Product operations act as a bridge between various departments. This keeps the product team’s efforts in sync with other parts of the organization, enhancing the overall strategy and execution of product initiatives.
Training and Support: Providing training and support to product managers and other team members to improve skills and knowledge related to product management.
How it benefits product teams: Continuous learning opportunities offered by product operations keep the product team up-to-date with the latest trends and methodologies. Product ops also often help train new product managers, creating a consistent team environment.
Feedback Management: Collecting and prioritizing user feedback to refine product features and enhance the overall user experience.
How it benefits product teams: Product ops streamline the feedback loop, collecting user insights and prioritizing it to ensure that the most critical issues are addressed first. This helps product teams focus on changes that are most likely to impact user experience and satisfaction positively.
Understanding the general responsibilities of product ops and how they benefit product teams makes it easier to see how product operations fit into a company’s big picture.
Who Needs Product Operations?
In smaller or emerging companies, product managers often handle the work that product operations would typically cover. However, as the product and market complexities increase, passing these responsibilities over to a dedicated product operations team can help maintain focus on product strategy and development.
Here are some situations in which a company might find a dedicated product operations team helpful:
Growth and Scale: As companies expand, the volume and complexity of processes and data also grow. Managing this increase without dedicated support can strain product managers, leading to inefficiencies. Product ops help by standardizing processes, managing tools, and ensuring that teams remain aligned with the company’s goals, thus supporting scalable growth.
Data Management Challenges: In larger companies or those that handle large amounts of data, it becomes crucial to have a centralized system for managing this information. Product ops are critical in collecting, organizing, and analyzing data to provide insights that help product managers make informed decisions. This is especially true when data is dispersed across various platforms or stored in formats that are not readily accessible.
Efficiency in Resource Allocation: Product operations ensure that product managers can focus on strategic tasks rather than getting bogged down by administrative duties or data wrangling. By optimizing processes and tools, product ops allow product teams to work more efficiently, which is critical as the organization grows.
The move from having no product operations to having product operations isn’t likely to happen overnight. As typical product operations responsibilities start to weigh down product teams, they might hire individuals to help in key areas, like analytics or budgeting. In time, this can evolve into a full-fledged product operations team.
Final Thoughts
Product operations support and enhance product management by ensuring that processes are streamlined, data is effectively utilized, and teams are aligned with organizational goals. Implementing product operations allows product teams to focus on innovation and user needs instead of administration, data management and other tedious tasks. As businesses grow and evolve, the clarity and efficiency provided by product ops become essential to managing the increasing complexity and data overload that comes with the territory.
Incorporating a dedicated product ops team is a forward-thinking move for growing companies that aim to maintain agility and effectiveness in their product development lifecycle. As you consider the next steps for your organization, remember that investing in product ops is not just about enhancing current capabilities—it’s about setting the stage for sustainable growth and innovation.
