This year’s ProductCon LDN brought together product leaders from across Europe to discuss the evolving landscape of product management. Carlos Gonzalez de Villaumbrosia, founder and CEO of Product School, shared his insights on why now is the best time to build digital products, despite the challenges many companies face.
Key Takeaways
- The rise of the Chief Product Officer (CPO) role is transforming product management.
- Economic uncertainty highlights the importance of product quality and customer experience.
- Investing in team retention and training is crucial for building strong product teams.
The Rise of Product Management
Carlos opened his talk by emphasizing that this is the best time in history to build digital products. He noted that product management has evolved significantly over the years. In the past, product leaders often reported to marketing or design heads. Now, we see a shift with the emergence of the Chief Product Officer role, which is becoming more common in Fortune 100 companies. In fact, over 33% of these companies already have a CPO, and this number is expected to rise to 50% by the end of 2023.
This trend is not limited to tech companies; industries like oil, gas, and telecommunications are also recognizing the importance of product management. This shift is creating more opportunities for product professionals at all levels.
The Impact of Economic Uncertainty
Despite the current economic climate, where many companies are laying off employees, Carlos pointed out that product teams are among the least affected. For instance, at Twitter, only 4% of layoffs impacted product teams. This indicates a strong demand for product talent, with over 200,000 open product manager positions currently listed on LinkedIn.
Carlos explained that in times of economic uncertainty, the best products win. Companies are focusing on quality and customer experience, as marketing budgets shrink and customer acquisition costs rise. Investing in product development is essential because a great customer experience cannot be faked. It’s about retaining existing customers and attracting new ones through word-of-mouth and referrals.
The Importance of Product-Led Growth
Carlos introduced the concept of product-led growth, which emphasizes using the product itself as a primary driver for customer acquisition and retention. This approach is not just a tactic for product teams; it’s a company-wide strategy. Companies that adopt product-led growth strategies are seeing revenue growth rates 13% faster than those that do not.
Building Strong Product Teams
To build excellent products, companies need strong product teams. Carlos highlighted that product management is no longer just about generalists; there’s a growing need for specialists in areas like product marketing and product analytics. The demand for these roles is increasing, with over 65,000 open jobs for product marketing alone.
However, hiring more people isn’t a sustainable solution. Carlos shared that 60% of product leaders are considering leaving their companies within the next two years. Retaining talent is crucial, and companies must invest in training and development to keep their key players. Interestingly, 41% of companies surveyed by LinkedIn are looking to increase their training budgets in 2023.
Conclusion
In summary, Carlos emphasized three key trends:
- In times of economic uncertainty, the best products win.
- Product has earned a seat at the table.
- To build excellent products, we need excellent product teams.
Investing in team retention and training is essential. If companies take care of their teams, those teams will take care of their customers. This is the future of product management, and it’s an exciting time to be in the field.
Carlos closed his talk with a reminder that the landscape of product management is changing rapidly, and those who adapt will thrive in this new environment.
[Applause]
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