Product School

Product Owner vs. Product Manager: Which Role to Choose?

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Carlos González De Villaumbrosia

July 17, 2024 - 13 min read

Updated: August 21, 2024 - 13 min read

Product Owner and Product Manager roles are often used interchangeably within companies. Knock on the next door and you’ll see these ‘uniform’ roles are not as ‘uniform’ as one might think. In fact, the differences can be so stark that switching companies often leads to confusion, inefficiency, and adjustment challenges for product team members. 

The reality is this: both roles involve pressure, handling uncertainty, managing complex stakeholder relationships without direct authority, and working closely with engineering and design teams on the minutest details. It’s not a walk in the park. Still, it’s a dynamic and rewarding journey. You get to solve big-time problems and have a notable impact on the company’s future.

With all of this at play, product members need to understand the nuances. It helps navigate an already complex set of challenges. It ensures smooth workflows, clear communication, and — above all — the right career choice. 

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The Difference Between Product Owners and Product Managers

Before we dive in, it's essential to clarify: the official Scrum Guide does not recognize the role of a Product Manager. In Scrum, the primary roles are the Product Owner, Scrum Master, and Development Team.

The role of the Product Owner is clearly defined — managing the product backlog and ensuring the team delivers value. 

The role of a Product Manager, however, is typically found in broader product management frameworks outside of Scrum. It originated from traditional business and marketing practices, particularly in companies that developed products for consumer markets. 

Product Management emerged as businesses recognized the need to oversee the entire lifecycle of a product. This included market research, strategic planning, development, launch, etc. Today, the role of Product Manager has more variations compared to the Product Owner position. These include Technical Product Manager, Data Product Manager, and AI Product Manager, among others.

Blog image: PM vs PO

Roles and Responsibilities of Product Owner (PO) 

A Product Owner primarily works within a Scrum team. They focus on maximizing the value of the product by managing the product backlog. They define what needs to be built and prioritize tasks. Taken together, their tasks ensure the team delivers high-value features to the customers.

Roles and Responsibilities of Product Manager (PM)

A Product Manager operates at a broader level. Their role is geared towards strategic planning, market research, and aligning the product vision with business goals. They oversee the entire product lifecycle, from ideation to market release, and ensure the product meets the company's strategic objectives.

Common Misconceptions About the Two Product Roles

1. “Product Owners are  Project Managers”

A common misconception about the Product Owner role is that they are simply project managers or task managers.

It arises because both roles involve overseeing work and managing priorities. In reality, the Product Owner is much more than that; they focus on maximizing product value through strategic prioritization and a deep understanding of customer needs. 

This confusion arises because organizations often don't fully grasp or properly implement Scrum practices. They may incorrectly see the Product Owner as a traditional project manager. Additionally, the Product Owner's involvement in daily team activities can blur the lines between the roles.

2. “The Product Owner is higher in the hierarchy”

The Product Owner is not necessarily higher in the hierarchy than the Product Manager. In fact, typically, the Product Manager is higher up in the chain of command. 

The Product Manager is responsible for the overall product strategy, product positioning, and long-term vision. These requirements often place them in a more senior role.

Meanwhile, the Product Owner focuses on tactical execution and working closely with the development team to deliver value based on the strategic direction set by the Product Manager. 

3. “Product Managers focus on product features”

A common misconception about the Product Manager role is that they only focus on product features and development timelines. 

In reality, Product Managers are responsible for the entire product lifecycle. Again, that includes market research, strategic planning, customer insights, and aligning the product with the overall business objectives. 

They balance the needs of various stakeholders, make strategic decisions based on market trends and data, and ensure the product delivers value to both customers and the company.

4. “Product Management has a direct authority over development”

Another common misconception is that Product Managers have direct authority over the development team. In reality, they often work through influence rather than control

Product Managers, therefore, must build relationships with cross-functional teams. This includes engineering, design, and marketing, to align everyone towards the product vision and goals. It even involves resolving conflict or miscommunication. Their success relies heavily on their ability to persuade, negotiate, and collaborate rather than on hierarchical power.

Essential Product Owner Skills

To excel as a Product Owner, you need a combination of technical expertise and soft skills. Key skills include:

  • Agile and Scrum Knowledge: Deep understanding of Agile methodologies.

  • Communication: Strong verbal and written communication abilities.

  • Prioritization: Capacity to prioritize tasks effectively.

  • Customer Focus: Ability to translate customer needs into actionable tasks.

  • Decision-Making: Critical thinking and making informed decisions.

  • Market Knowledge: Firm grasp of the product's market and users.

  • Adaptability: Being proactive and adaptable to changing priorities.

If you're thinking about becoming a Product Owner, expect a fast-paced and challenging job where you get to coordinate but also make decisions every day. You'll work with different teams, talk to customers, and help build products that people love.

To thrive in this role, you need to be good at problem-solving, multi-tasking, and comfortable with change. Being organized and able to prioritize tasks will help you manage your workload. Strong communication skills are essential because you'll need to explain your ideas clearly. 

Most importantly, you should care about what the customers need and make sure the product meets those needs. If you have these traits, you can do very well as a Product Owner.

Skills to Become a Great Product Manager

A successful Product Manager requires strategic thinking and a range of other skills. Essential skills, out of the 18 we cover in this article,  include:

  • Strategic Thinking: Ability to develop and maintain a long-term product vision.

  • Market Analysis: Understanding market trends and customer needs.

  • Customer Empathy: Strong sense of customer needs and user experience.

  • Leadership: Guiding and motivating cross-functional teams.

  • Analytical Skills: Tracking product performance and making data-driven decisions.

  • Communication: Clear and effective communication with stakeholders.

  • Problem-Solving: Addressing and resolving issues efficiently.

  • Time Management: Balancing short-term tasks with long-term goals.

Expect a dynamic and challenging role where you get to shape the future of products. You’ll work closely with different teams and have contact with important decision-makers around the company. They’ll need your input and strategic outlook on the product’s future in order to make well-informed and educated decisions.

To thrive in this role, you need to be good at researching and understanding market trends. Being organized and able to prioritize tasks will help you as much as Product Owner. Strong communication skills are essential because you'll need to convey your vision clearly to different groups of people. 

Most importantly, you should have a keen sense of what customers want and how to meet those needs. If you have these traits, you'll thrive as a Product Manager.

How to Become a Product Manager vs. a Product Owner

Becoming a product manager starts with mastering the key skills mentioned above. You can develop these skills through various forms of education and exposure. To start fast, it's best to begin with the resources that are immediately accessible. While getting a job and joining side projects is important, it might take a few months to start this journey. Instead, find materials you can get your hands on right now.

These include necessary qualifications such as:

  • Recognized Certifications: Obtaining certifications from reputable institutions like Product School can validate your expertise and commitment. It will not just build a strong foundation — it will make you a more attractive candidate right from the start.

  • Online education: Consider formal education in fields like business, marketing, or computer science to build a strong foundation. There are plenty of options to chose from! 

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Finally, you should build practical experience to solidify your skills:

  • Side Projects: Work on your own product ideas or contribute to startup projects. This hands-on experience helps you understand the product lifecycle from conception to launch.

  • Mentorship: Seek guidance from experienced product managers and product owners. They can provide valuable insights and real-world advice.

  • Internships: Participate in internships and co-op positions. These opportunities offer a structured environment to apply product management theories in practical settings.

  • Cross-functional Collaboration: Volunteer for projects that involve working with different teams. This experience helps you understand the dynamics of collaborating with engineering, design, and marketing teams.

For more in-depth information, check out our comprehensive guides:

Career Growth and Salary Prospects

blog image: PM vs PO Key factors for growth

Product Manager (PM)

As a Product Manager, you have the potential for significant career advancement. Starting as a Junior Product Manager, you can progress to roles such as Senior Product Manager, Director of Product, and eventually Chief Product Officer (CPO).

You’ll often be involved in high-level decision-making and cross-functional leadership, which can position you well for executive roles.  Networking, continuous learning, and gaining a deep understanding of the market and customer needs are essential for climbing the career ladder.

Product Managers typically command higher salaries compared to Product Owners due to the strategic and broad scope of their responsibilities. Entry-level Product Managers can expect competitive starting salaries, which increase significantly with experience and the level of responsibility.

In the US, the average salary for a Product Manager ranges from $80,000 to $170,000 annually, with senior roles like Director of Product or Chief Product Officer earning well over $200,000 per year.

Product Owner (PO)

The Product Owner role offers a clear and solid career path within agile and development teams. Starting from an entry-level PO position, you can advance to Senior Product Owner, Lead Product Owner, or even Agile Coach.

While the progression might be more focused on product development and agile frameworks, there are still ample opportunities to move into higher roles with greater influence over product strategy and implementation.

Gaining expertise in agile methodologies, continuous learning, and obtaining advanced certifications can accelerate your career progression.

Product Owners have competitive salaries, although they might be slightly lower than those of Product Managers due to the more focused nature of their role. Entry-level Product Owners can expect a solid starting salary, which grows with experience and seniority.

In the US, the average salary for a Product Owner ranges from $80,000 to $130,000 annually, with senior roles earning up to $150,000 or more.

Which Role Suits Your Profile the Best?

Choosing roles can feel like a daunting decision, especially considering the nuanced differences. The best way to approach this choice is by understanding your strengths, experiences, and aspirations. Let's break this down.

If you are someone who thrives on the details and leans more toward the technical side, you might find the role of a Product Owner (PO) a better fit. A person who loves getting into the nitty-gritty of how things work and how the puzzle pieces match different roles — they’ll relish the opportunity. 

A background in project management or a technical field is a big plus. Likewise, excelling in environments where methodologies and processes are the norm. Your ability to prioritize tasks effectively, communicate the smallest of details, and make quick, informed decisions will serve you well. As a PO, you are the bridge between the vision (1) and the execution (2) — you have to understand the first and stay in charge of the second.

Usual Interests of a PO Type

  • Reading Stack Overflow, GitHub discussions, and technical blogs to stay updated on software development trends.

  • Following process-oriented podcasts, and webinars to deepen their organizational knowledge.

  • Exploring new features on platforms like JIRA, Trello, or Asana, and updates to IDEs like IntelliJ IDEA or Visual Studio Code.

  • Reading UX Design and Nielsen Norman Group articles or participating in UX webinars to understand user needs.

  • POs often look forward to reading release notes and technical documentation from iOS, Android, or major cloud service providers.

On the other hand, if you have a strategic mindset and a passion for understanding market dynamics, the Product Manager (PM) role might be your ideal path. Think about it this way: you enjoy looking at the big picture and setting long-term goals. 

Perhaps you come from a background in business, marketing, or even a non-technical discipline where strategic planning is key. You’re adept at market research, identifying opportunities, and translating those insights into a coherent strategy. You like being the ship captain — setting the direction, aligning various teams towards a common vision, and ensuring success in the deepest of the waters.

Usual Interests for a PM Type

  • Reading Bloomberg, Harvard Business Review, and The Wall Street Journal to stay informed about market trends and business strategies.

  • They often read books like "Inspired" by Marty Cagan and "Lean Product and Lean Analytics" by Ben Yoskovitz or follow blogs like Silicon Valley Product Group and Mind the Product.

  • They may subscribe to services like Gartner, Forrester, or Statista for detailed market research reports and industry analysis.

  • PMs often engage with platforms like SurveyMonkey, Qualtrics, or social media listening tools to gather and analyze customer feedback.

How to Decide - Product Owner or Product Manager?

Your next 20, 30, sorry, 40 years can be profoundly shaped by the career path you choose today. Whether you decide to become a Product Owner or a Product Manager, take the time to understand your strengths, passions, and long-term goals. 

Consider seeking feedback from peers, mentors, or career coaches. Additionally, research the specific demands and growth opportunities within each role in your industry. Leverage platforms like LinkedIn to expand your network. Attach your professional portfolio. If you can step outside your comfort zone, increase your exposure through regular posting. 

This is especially important in the dynamic field of IT, where recruiters are always on the lookout for new talent and value hands-on experience.

Embrace this journey with confidence. Know that your commitment to learning and growth will pave the way for a fulfilling and impactful career.

If you’re already working on a product, the same advice applies. Learning about the differences between these roles will help you organize your work better, improve the quality of your work, and boost your reputation in the company. Imagine how this will make your work life much easier.

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Updated: August 21, 2024

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