You will often hear the terms Product Manager and Product Owner used interchangeably. However, there is a critical difference between the two.
During interviews, this is one of the most common questions.
It is critical for any Product professional to be able to seamlessly differentiate between the two terms.
I’m a certified Product Manager by the Scaled Agile Framework (SAFe) and this is one of the first things that they teach us. In fact, the differentiation between the two terms is at the core of the SAFe philosophy.
Your job becomes even more difficult when you work at a traditional large corporate, which have a set of doing things. These large MNCs may not be very Agile. Therefore, even if you try to set up the right processes for your developers, you may receive pushback. But that’s a part of our jobs. The important thing is to focus on the goal, stay calm and get things done. Don’t forget the KISS principle!
More Confusion
This confusion is similar to the confusion people have with Product Manager vs Project Manager (also applicable to Product Owner vs Project Manager).
And you know what get’s even more confusing? People use all three terms interchangeably!
But after reading this article, you can differentiate between all three terms with poise!
Remember, you must be familiar with the concepts of Agile Methodology to understand these differences better.
Key Differences – Product Manager vs Product Owner
The two terms are as different as chalk and cheese. Ok, that maybe an exaggeration. But, I want to emphasise the difference so that you never make the mistake of thinking that these two terms are one and the same. This articles uses the SAFe product owner and SAFe product manager definitions.
In Melissa Perri’s classic analysis of Product Manager vs Product Owner, she mentions the following –
Product Owner is a role you play on a Scrum Team. Product Manager is the job.
Melissa Perri
The above is definitely true for startups and new age tech companies. But for traditional, giant, multi-national coporates, that have recently joined the agile bandwagon, the above definition is not suitable.
This is also a good time to make sure you understand what it means to be Product Agnostic.
For many companies that are very traditional in nature, the definition for the two roles is as defined below –
| Product Manager | Product Owner |
| Interfaces directly with the business stakeholders | Gets direction directly from the Product Manager |
| Has an external focus, on the market and competition | Has an internal focus, on execution and development |
| Develops the Product Roadmap | Creates Features and User Stories |
| Drives the PI level objectives | Drives the sprint level objectives |
Basically, in many traditional companies, the definition boils down to this – a Product Owner reports to a Product Manager. That is a common Product Owner definition. This should help you make more sense when you read a Product Owner job description or a Product Manager job description.
Now would also be a good time to know the differences between Agile and Waterfall.
Similarities – Product Manager and Product Owner
I also want to point out certain similarities between both roles –
- Both are essentially Product roles – you need to have a good grip on what needs to be delivered to the customer
- The Product Manager and the Product Owner generally work as one unit – if they are working in silos, then that is a recipe for disaster
- Both should seek out feedback to make the product better
- Both need to come up with fresh ideas and brainstorm on how to improve the product
- And, both should know how to influence without authority!
The degree to which the above functions are done by a PM and a PO could be different. But, both should be doing all of the above functions.
So, yes, even though the Product Manager and Product Owner roles are different, they have similar characteristics and need to function as one unit.
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If you have questions around product lead vs product manager or product owner vs business analyst roles, then generally, this is the hierarchy – Product Lead > Product Manager > Product Owner > Business Analyst. But, no matter your role, you should definitely have a strategy in place when building products.
Check out Google’s OKR Strategy.
Different responsibilities can be split up between the two roles depending on your company. For example, most companies consider Jira responsibilities to be a part of Product Owner skills.
Now is also a good time to make sure you know the top 15 advantages of Kanban. And not to forget the top 15 benefits of Scrum.
Conclusion
You should now have a good idea about product owner vs product manager. You now understand product owner responsibilities and product manager responsibilities.
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Most people you interact with will not know these differences. And that’s ok. It is your job to make sure people are aware of these differences. And even if they are unable to understand these differences, that’s ok too. As a Product person, you are expected to work with all kinds of stakeholders!
Learn how to communicate like a boss!
However, remember that the list of must-have Product skills is more or less the same for both roles. In both roles, you are expected to guide your developers to build better products. This clear guidance is what makes Elon Musk a great Product Manager.
You will face situations where people may seem difficult to work with. But remember, everyone wants to do a good job. And everyone is in it together. So as the Product person, you need to make sure people are motivated and understand what is at stake.
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You can also check out Product Owner Responsibilities SAFe and Agile Product Owner Certification.
Bonus – How do you remain an effective Product Manager during the current coronavirus crisis?
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