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The first book we (the Smarter Product Managers book club - join us!) read was Predictably Irrational by Dan Ariely.

Irrational behavior is a part of human nature, but as MIT professor Ariely has discovered in 20 years of researching behavioral economics, people tend to behave irrationally in a predictable fashion. Drawing on psychology and economics, behavioral economics can show us why cautious people make poor decisions about sex when aroused, why patients get greater relief from a more expensive drug over its cheaper counterpart and why honest people may steal office supplies or communal food, but not money. According to Ariely, our understanding of economics, now based on the assumption of a rational subject, should, in fact, be based on our systematic, unsurprising irrationality. Ariely argues that greater understanding of previously ignored or misunderstood forces (emotions, relativity and social norms) that influence our economic behavior brings a variety of opportunities for reexamining individual motivation and consumer choice, as well as economic and educational policy. Ariely's intelligent, exuberant style and thought-provoking arguments make for a fascinating, eye-opening read. (Feb.)

Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

Overall I enjoyed this book. I struggled a bit to tie it back to product management but it provided plenty of food for thought in for personal decisions and product pricing. There were sections that helped understand how people do cost-benefit analysis, how they are persuaded by social norms and are driven by moral boundaries.

Chapters:

  1. The Truth about Relativity
  2. The Fallacy of Supply and Demand
  3. The Cost of Zero
  4. The Cost of Social Norms
  5. The Influence of Arousal
  6. The Problem of Procrastination and Self-Control
  7. The High Price of Ownership
  8. Keeping Doors Open
  9. The Effect of Expectations
  10. The Power of Price
  11. The Context of Our Character, Part 1
  12. The Context of Our Character, Part 2
  13. Beer and Free Lunches
  14. The Power of Price

Each chapter had lots of interesting studies and experiments (including beer, chocolate and sex) to keep you engaged through the various topics.

Here was my favourite line in the whole book

"Let me start with a fundamental observation: most people don't know what they want unless they see it in context."

This is important, your prospects, for the most part, have no idea really what they are looking for. The book builds on this point through most of the chapters.

If you have a spare cycle in your readings, I recommend this book.

Read another review here: How Product Managers Price Products For Irrational Customers by the The Accidental Product Manager.

Product Managers are Lions, Tigers, Monkeys, or Dogs.

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I was enjoying an old episode of Rockford Files the other night. While in that comfortable state between consciousness and sleep, I thought I heard Rockford tell or be told that all Product Managers are Lions, Tigers, Monkeys, or Dogs. Of course I don't remember much of the theory, but it sounded good.

I figure the Lions are the noble creatures who focus on product sustainability. The Tigers are more aggressive, perhaps focusing on personal bonuses. The Monkeys can't have much decision making ability. The Dogs are much like in the Boston Group's quadrants; those Product Managers who are under performing with no hope of improvement. What do you think?

I was surprised to find out how many of Product Managers thought of themselves as "Dogs". Last weekend, at the Product Camp in Austin, TX, there was a panel discussion titled, "Product Management and Leadership within the Organization".  It was voted, "Best Session". This session was chaired by Mike Boudreaux of Emerson, Derick Workman of RYMA, and Larry McKeogh of Xilinx. The session summary said the panel would address "why leadership is so important for success in product management."  It was also going to discuss "how to exercise leadership to influence others in your organization".

The main points from this open session ended up being:

  • Product management can't deliver products on its own. It's a cross-functional team effort.
  • They can't use authority from their job title to get other organizations to do what they want.
  • The value that each team member (development manager, marketing communication specialist, etc) gets from product management must be larger than the team requires.
  • The pm's opinion is only an opinion unless it is backed by market evidence. Do your homework and others will have confidence in the decisions you make.
  • Leadership styles should be situational. (Lot's of discussions on leadership styles)
  • The "Texas Roadhouse" rule - be nice until it's time to not be nice.
  • How can you exercise leadership to influence upper management? Lots of discussion on using pre-meetings to sell the project idea to each executive one-on-one. Get them onboard before the meeting. Create champions.
  • Senior Executives are trying to make decisions. Empower their decision making and you will have more influence.

It seems Product Managers often find themselves trying to lead people with little or no authority. They see themselves as having all the responsibility for the product's success, but no authority to make the right decisions. You Lions and Tigers be grateful. Most of your peers feel lucky to even be a Monkey.

Speaking of Monkeys and Tigers, Monkey Video.  A funny video even if you've seen it before.

Mike Hopkin's blog, Lead On Purpose addresses the Leadership Issues of the Product Manager. It's certainly worth monitoring if you're a product manager looking for leadership insight.

One alternative which I recommend is Servant Leadership.  The definition of Servant Leadership on Wikipedia is one of the best. Wikipedia mentions the film The Emperor's Club as an example of what I'm talking about; certainly worth a watch. While you watch, you put it in context of Product Management.  Another example of Servant Leadership can be found in this short article "How hard could it be?" ; by Joel Spolsky, CEO of Fog Creek Software. 

Greenleaf.org is still the largest promoter of Servant Leadership. If you're looking for additional resources, you'll probably want to bookmark this site. Another interesting site focusing on leadership development is Leaders Direct

There are two useful and slightly similar PDF documents you can download, one titled "Practicing Servant Leadership" by Larry Spears who is the CEO of Greenleaf.org. The other comes out of University of Nebraska, and from what I can tell is not one of the GreenLeaf members. "Becoming a Servant Leader: Do I have what it takes?"

Books on Servant Leadership that I recommend, and pass out on occasion are listed here. Prices are for comparison, actual prices may vary.

"The Servant: A Simple Story About the True Essence of Leadership" ; James C. Hunter; Crown Business; 1998; $22.00 

"Servant Leadership: A Journey Into the Nature of Legitimate Power and Greatness"; Robert K. Greenleaf, Larry C. Spears; Paulist Press;  2002; $16.47

"The Servant Leader: How to Build a Creative Team, Develop Great Morale, and Improve Bottom-Line Performance"; James A. Autry; Three Rivers Press; 2004; $13.95

"The World's Most Powerful Leadership Principle: How to Become a Servant Leader"; James C. Hunter; WaterBrook Press; 2004; $23.00

"Practicing Servant-Leadership: Succeeding Through Trust, Bravery, and Forgiveness"; Larry C. Spears, Michele Lawrence; Jossey-Bass; 2004; $27.95  

An authoritative book that will help Product Managers assume a greater role in their organizations, not yet published, but coming out I believe in Q2 of 2009, from Cambridge University Press is: "Power and Interdependence in Organizations"; Dean Tjosvold, Barbara Wisse; 2009; around $110.
Many universities in the US have formed "Alliances for Servant Leadership". Indiana State University is one. They have defined a set of principles to help the servant-leader address day-to-day situations.

  • Principle #1: Transformation
  • Principle #2: Personal Growth
  • Principle #3: Enabling Environments
  • Principle #4: Service
  • Principle #5: Trusting Relationships
  • Principle #6: Creating Commitment
  • Principle #7: Community-building
  • Principle #8: Nurturing the Spirit

This may seem to be too much for some. Another very actionable approach to power that Product Managers can take is found in Dr. John E. Barbuto's paper from the University of Nebraska, "77 Ways To motivate Your Workers".  Exchange the "Workers" in the title with "Co-workers" and your off and going. He creates a framework based on five types of motivation;

  • FUN
  • REWARDS
  • REPUTATION
  • CHALLENGE
  • PURPOSE

The 77 suggestions to motivate your co-workers, are placed into one of these five groups; i.e.;

REPUTATION contains 20 suggestions such as,

  • Give workers lots of feedback about the way they are performing.
  • Give praise in front of other people (the more people that know they did well the better!).
  • Make sure that you give credit to everyone that contributes (never leave people out when they make an impact).
  • Give unsolicited compliments and positive reinforcement to workers for jobs with which you are satisfied.
  • Tell your workers that you appreciate the work they do.
  • Consider starting an employee [product contributor] recognition system (employee [product contributor] of the month, department employee [product contributor] of the month).

Under PURPOSE, suggestions such as

  • Communicate the purpose of tasks being assigned.
  • Make sure the company has a vision and mission that it is pursuing.
  • Communicate the organization's vision and purpose on a daily basis.
  • Refer to the purpose of the organization and "why we exist" when outlining strategies and goals.
  • Remind employees of who depends on this organization to succeed (families, communities, industry, producers).
  • Discuss why (in terms of contributing to the mission) things need to occur.
  • Remind workers how their efforts make a difference for the company in its pursuit of it vision.
  • Make links between their work and the company vision so they can see how they fit into the bigger picture.
  • Include workers in the visioning and strategic planning process so that they feel they have a stake in the organizational outcomes.

Bottom line; the difference between the Lion, the Tiger, the Monkey, and the Dog is not what and how you eat. It's all about the Product Manager's leadership capabilities.

The Product Management Community knows the responsibility of Product Management. They also know how Product Mangers can acquire authority. Meaningful steps toward steering the activities within the innovation value chain can be taken by granting authority to the Product Manager. Product Management must effectively keep this path straight. The good news is that those who wish to help Product Mangers gain access to power within the innovation value chain can play a constructive - perhaps decisive - role in keeping that path unobstructed.

The Top Product Management Blogs

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Every once in awhile someone will ask me if there are any good product management blogs... are you kidding me? As a Product Manager you are suppose to some basic research skills. The easiest way to point someone to the best product management blogs is to show them "All the top Product Management news." I am going to take that one step further... the first official Product Management Blog Awards determined by the autocracy of me.

Top 5 Product Management Blogs
1. The Cranky Product Manager... because I fear her wrath so she is number 1. On a serious note, her blog is most widely recognized.
2. On Product Management... hands down a true thought leader on product management
3. Ask a Good Product Manager / How To Be A Good Product Manager... awesome resource
4. Tyner Blain... for the sheer volume of words per post
5. Write that Down... a straight approach to product management

Member of Hall of Fame
ProductMarketing.com... the most respected opinion in product management and marketing

Honourable Mentions
The Productologist... a respected member of the community

Top Product Management / Leadership Blog
Lead on Purpose... a mix of leadership with a dash of product management tossed in

Top Product Marketing Blog
Rocket Watcher... a true thought leader in this area and one of the top 10 Most Influential Women in Social Media in Canada!!

Up and Coming Product Management Blogs
The Accidental Product Manager... fairly new but awesome content so far

I you disagree or think your blog is worth of mention add it to the comments.

Book Review: Tribes, by Seth Godin

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Came across another great read from Seth recently. I really liked this book, mainly because it was a small and easy read - something you can pickup and put-down without losing your train of thought.

Seth does a marvelous job of describing Tribes, and how important and beneficial it is to not only be part of the tribe, but to lead it.

My two favorite quotes:

- "Heretics are the new leaders", Hope my CEO doesn't take this too personally:)

- "Leadership...is about creating change that you believe in."

If you have not seen already, Seth has a great PM blog which can be found here.

Many of his books should be available in your local book store as well as online, I found most of them on Amazon here.

Now my question for Seth is who is leading his tribe? Is it his loving wife, or perhaps a purple cow? :)

New Product Management Books

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The Product Manager's Desk Reference
by Steven Haines

Whether a business sells tangible goods or services, product management holds a critical position in the organization's pursuit of profits. Because traditional departmental roles continually evolve, and because the business climate is so competitive, the job of product manager has become exceedingly critical--yet it remains very complex. The Product Manager's Desk Reference is the first book to lay down a comprehensive body of knowledge for this critical function, and it is the only book that can effectively guide product managers so that they can establish and build a successful career in product management.

The Art of Product Management: Lessons from a Silicon Valley Innovator
by Rich Mironov

The Art of Product Management takes us inside the head of a product management thought leader. With color and humor, Rich Mironov gives us a taste of Silicon Valley's tireless pursuit of great technology and its creation of new products. He provides strategic advice to product managers and tech professionals about start-ups, big organizations, how to think like a customer, and what things should cost. He also reminds us to love our products and our teams. The Art of Product Management brings together the best insights from more than seven years of Product Bytes, Rich Mironov's long-running series on product strategy, technology companies, and how the two interact. This collection is for everyone who builds or markets the next new thing.

Note: I haven't read either one yet but I am hearing good things about Product Manager's Desk Reference and Rich Mironov has been producing quality articles for a few years now.

Alltop Product management news

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Quick post... just wanted to highlight a new topic on Alltop, Product Managment. If you go here: http://productmanagement.alltop.com/ you will find summaries from the top Product Management blogs. What is Alltop?

Purpose

We help you explore your passions by collecting stories from "all the top" sites on the web. We've grouped these collections -- "aggregations" -- into individual Alltop sites based on topics such as environment, photography, science, Muslim, celebrity gossip, military, fashion, gaming, sports, politics, automobiles, and Macintosh. At each Alltop site, we display the headlines of the latest stories from dozens of sites and blogs.

You can think of an Alltop site as a "digital magazine rack" of the Internet. To be clear, Alltop sites are starting points--they are not destinations per se. The bottom line is that we are trying to enhance your online reading by both displaying stories from the sites that you're already visiting and helping you discover sites that you didn't know existed. In other words, our goal is the "cessation of Internet stagnation" by providing "aggregation without aggravation."

Enjoy!

Adam wrote a great post about requirements... What Are Good Requirements? but in that post David Locke made a great comment.

"Requirements are value packages. With smaller sets of requirements you can maximize the value delivered to the customer. You can also reduce the training effort required to use the delivered functionality. A series of small releases will get your customer up to speed quicker than a waterfall of all that funcitonality at the end."

Well said.

If you are not reading Michael's blog... add it to your reader. Go here: Lead on Purpose. Also, while you are at it add my FriendFeed feed to your reader as well. Go here: Stewart's FriendFeed . I share and bookmark a lot product management content here and I trust you will find it a valuable resource. Also, Robert Scoble said that
"Google Reader makes me smarter than anything else I have found online. The stuff I find there is remarkable. Keep it up!" and I would agree. I read so much in one day it leaves me constantly amused but more importantly thinking. I tend to focus on product management content but if you are interested in what I am reading I can share. But the filtered interesting stuff is found in my FriendFeed. You may need an account for this.

OK, back on topic. Michael and I were discussing June 2007 Harvard Business Review article by Morten T. Hansen and Julian Birkinshaw titled The Innovation Value Chain. For a Product Manager, whose goal is sustainable product leadership (including positive ROI) this is an excellent article to help you think through that process. Here is Michael's review of the article. I /we would love to discuss this with you if you are interested.

Just finished the book, Tuned In, and I must say. Well done! The book, by simply stating, outlines the following steps: find unresolved problems, understand buyer personas, quantify the impact, create breakthrough experiences, articulate powerful ideas, establish authentic connections to create a resonator. A resonator is the perfect solution to a specific problem. It is a product or service so powerful that it sells itself, an offering that connects to what your market values most and an idea people immediately understand has value to them. I grabbed this content from their blog, Get Tuned In which is a great resource as well. I like the emphasis on problem statements and the potential buyer. So much time is spent today by Product Management on the post-sales Buyer.

Tuned In is one of those books that you will be entertained by, amazed by, not be able to put down and be inspired to change the way you approach product management. Most importantly, you will want your Executives to read it.

Here are some other bits of wisdom from the crowd on Tuned In.


Buy the book here: Amazon, Chapters.ca

Live on Purpose - Tuned In

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Check this out...

For this episode of Live On Purpose Radio, Dr. Paul is joined by Michael Ray Hopkin to interview Phil Myers, co-author of the hot new business book, "Tuned In: Uncover the Extraordinary Opportunities That Lead to Business Breakthroughs."

Michael Ray Hopkin has joined Ryma in our Professional Services group. Also, read Michael's blog here - Lead on Purpose.

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