Rich Mironov - Product Managers Need to Understand the Language of Money (with Rich Mironov, Author and CPO Coach)

Returning guest Rich Mironov is a B2B product management legend, long-time blogger and author of "The Art of Product Management". He's recently moved to Portugal to sample the best of European product culture, and is currently actively coaching and mentoring product leaders. His goal is to help them understand what business leaders really care about and ensure that they make an impact by speaking the same language as the rest of the executive suite.

Episode highlights: 1. No one in the leadership team cares about how products are made; they care about making money

We product people can often be so in love with our craft and our terminology that we forget that no one else wants to hear it. We need to craft a narrative that moves beyond esoteric, fuzzy concepts about delight and happiness. These are important, but not as important to the leadership team as how those things make money for the company. We need to get off our high horses and meet our stakeholders where they are, just like we would with our users.

2. Product Managers need to know how their product and their company make money

Too many product managers are not aware of how their company makes money, how things are priced and packaged, and the effect that this will have on the types of decisions they can make. We need to up our game when it comes to financial literacy and understand the growth levers that we can pull if we want to have an impact at the top level.

3. It's important to build internal coalitions to get support early, rather than being the one person who dissents

It's always hard when there's a seemingly blockbuster deal on the table that has big revenue numbers attached, but is going to derail the roadmap for months. It's important to understand the positions of other non-product stakeholders and get their buy-in so that you're not the only person against the deal. Make sure you build bridges with your colleagues and go in with a united front.

4. Learn to tell "Money Stories" to get alignment around your roadmap and calculate the true cost of trade-offs

There are four different types of money stories: Cost savings, Upselling, New Market and Customer Satisfaction. These all use simple heuristics to sense-check the revenue impact of any initiative. Product people can get obsessed with accuracy, but your colleagues are guesstimating all their numbers, so get comfortable with directionally correct numbers. You can still make prioritisation debates clearer by "counting the digits" or comparing orders of magnitude.

5. Organisational context is everything, so you need to understand it

There are big differences between how Private Equity-funded and Venture Capital-funded startups work. They have different timeframes, different goals and, ultimately, a different mindset. There's no right or wrong here, simply an acknowledgement that your company's investment context will dramatically impact the types of decisions the leadership team will make. If you know this context, it can help you make better decisions (as well as decide whether it's the type of company you want to work for)

Check out Rich's essay "Business Cases are Stories about Money"

Rich's original essay, which has led to conference talks as well as this interview, can be found here: https://www.mironov.com/moneystories/

Buy "The Art of Product Management (2nd edition)"

"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."

Check it out on Amazon: https://www.amazon.co.uk/Art-Product-Management-Second-Innovator-ebook/dp/B0CVL45F36.

Contact Rich

You can catch up with Rich on LinkedIn: https://www.linkedin.com/in/richmironov/. Or check out his website: https://mironov.com.