Product Strategy of Microsoft, Yahoo, and FAST - BUT war declared on Google

By the time you read this blog post the announcement that Microsoft has put in a $44b bid for yahoo will be yesterday’s news. But have you taken a minute to think what this takeover means for the Group Product managers of MSN and Microsoft, the Product Strategist at Yahoo. It goes with out saying that... this bid is either a strategic step aimed to ensure that Microsoft has a long term future in the internet world and the ability to deliver world class search technology as part of their product offering. In the first half of January Microsoft decide to purchase FAST the search technology. Bill on Business comments that:

Microsoft has laid its cards on the table early in 2008 with its $1.2 billion cash acquisition of the Norwegian enterprise search player FAST. What does this say about Microsoft's intentions, and what implications might be in store for the content community?

One can imagine that the Product Strategist have put the integration of FAST on Sharepoint’s product roadmap as part of its search knowledge management product offering. Couple that with the what Microsoft will get when they acquire Yahoo and I believe we have an outright declaration of digital-war on google. ChannelWeb Network reports that:

With out a shadow of a doubt these are exciting times for those in the digital arena – such competition can only spark aggressive innovation for dominance and market share. Given the choice which camp would you like to be product manger in: Yahoo, Microsoft or Google?

With dominance over the IT industry and Internet at
stake, top executives at Google and Microsoft have been at each other's throats over the past several years. Google has attempted to take on Microsoft's dominance in productivity software by launching Google Docs; Microsoft, in turn, is developing Office Live Workspace and its own search, mapping and online advertising businesses. The proposal to take over Yahoo is its boldest move to date against Google.

How Product Managers can avoid innovation traps #part2

How Product Managers can avoid innovation traps Part#1 touched on two innovative traps that ProductManagers may encounter:

#1. Strategy: the misconception that every innovative idea has to be a blockbuster – where as a number of small incremental innovations could lead to over all product success. And
#2. Process: subjecting innovative efforts and projects to the same rigor, reviews and filters as standard business as usual (BAU) will stifle innovative growth.

Part #2 will now deal with the innovative traps of Structure and Skills.

Structure
The wrong company structure could easily hinder innovation. However a key part of the Product Management function is to collaborate with stakeholders from across the company in order to collate possible ideas for future product development and product enhancement as well as to smooth the way for the implementation of such ideas.

Rosabeth Moss Kanter gives example of companies that setup innovative projects that included individuals from across various functions [sales, marketing, production…] with in an organization. These individuals worked apart from the traditional company structure in order to avoid a company culture that would hinder innovation. The ideas that were most innovative and promising from the various areas [sales, customer support, marketing…] would be introduced back into the main company. However Kanter reports that the projects failed to integrate the new ideas back into the mainstream part of the firms. The key reason, for failure, was put down to a poor connection between the experimenting innovative team and the mainstream company. Product Management by its very nature seeks buy-in from across various cross functional areas and acts as the oil to smooth the way for such changes in order to ensure products experience constant improvement at each point their life cycle.

The Product Management function also needs to be able to review activity from various divisions across an organization – divisions that will probably be working with various technologies and/or operating in different markets. Kanter gives examples of CBS and Gillette who failed to bring various technologies together from its various divisions in order to come up with cutting edge products.

CBS was once the world’s largest broadcaster and owned the world’s largest record company, yet it failed to invent music video, losing this opportunity to MTV. In the late 1990s, Gillette had a toothbrush unit (Oral B), an appliance unit (Braun), and a battery unit (Duracell), but lagged in introducing a battery-powered toothbrush. The likelihood that companies will miss or stifle innovations increases when the potential innovations involve expertise from different industries or knowledge of different technologies. Managers at established organizations may both fail to understand the nature of a new idea and feel threatened by it.

Possible lessons learnt for CBS and Gillette would be enable Product Management to operate horizontally across the enterprises various divisions in order come up with innovative ideas. This means that the Product Manager would need to have at least an appreciation of the various markets and technology from across the enterprise.

The 4^th and final innovation traps that Kanter list is Communication and leadership Skills:

Being able to innovate is one thing but having the ability to convince others of your innovative idea is another. Failure to be able to sell your idea to internal stakeholders will probably result your innovative ideas not making itto market - and by chance they do they are in danger of being a commercial failure. I worked for a company where the engineers came up with a fabulous idea – it was designed – manufactured – was displayed at exhibitions but was not a commercial success, simply because the Sales Director did not understand or believe in it. I’ve also worked for a different company where a particular engineering team continuously produced competitive products that earned the company substantial revenue. However the team failed (for one reason or another) to gel with the rest of the company. The result was that the team was dismantled by senior management. Strong management including Product Management is required to complement innovation.

• Relationships need to be built and maintained,
• People need to buy-in to the ideas,
• Colleagues need to speak up for your innovative ideas at meeting that you don’t attend,
• Unhealthy competition between R&D teams needs to be put to rest.

Micheal in his blog High tech Product Management who owns innovation in your company writes:

"In most high-tech companies, the Product Management/Marketing team has the best view of the cross-functional processes of the organization - across Development, Marketing, Distribution, Operations, Sales and Support."

In short Product Management needs to drive innovation through various stages by using their soft ‘people skills’. Chief being the ability to communicate at all levels through out the organization.

Read also:

How Product Managers can avoid innovation traps #part 1
The innovation value chain and Product Management
Innovation the classic traps

What direct reports and co-workers expect from a Lead Product Manager

In this article I give my take on Larry Bossidy’s article “What Your Leaders Expects of You” published in April’s Harvard Business Review and “..What is Expected from Product Managers..” Where I report what senior managers expected from me as their Product Manager.

Identify what your line manager, MD, and other senior stakeholders expect from their Product Manager is only half of the story. It is just as important to understand what your direct reports and co-workers in other department expect from you and work hard to fulfil them. I have seen a few middle managers become so focussed on keeping the chief executives happy that they forget, neglect and even ignore their direct reports and co-workers. Taking such a stance can only threatens ones future career prospects and hinder current performance. Colleagues may become resentful in going the extra mile.

My Take on Larry Bossidy’s article is as follows:
Provide clarity of direction: Understand what your reports have to do on a daily basis – lead, direct and as well as manage.

• Set goals and direction: Communicate their goals in the context of the goals of the team, group, department and company.
• Give frequent, specific, and immediate feedback: provide feedback in a timely manor and in context.
• Be decisive and timely: Do not delay in acting irrespective or whether the task is agreeable to our feeling or not.
• Be accessible: Try not to be so busy that you do not have time to sit down and have regular (ad hoc as well as official) catch-ups with your direct reports.
• Demonstrate honesty and candor: Be honest, upfront and direct but not blunt, rude or insulting.
• Offer an equitable compensation plan: Recognise and reward high performers.

Compare this academic report with a practical survey where direct feedback from Product Managers to their Lead Product Manager.

• Guidance on the company’s web strategy & how it applies to the online products I manage.
• Knowledge sharing of web strategy & new technology being used.
• Support in resolving issues & difficulties.
• Help in developing new skills and career.
• Fairly access performance & help improve it and processes & working practice.
• Leadership: leading the product manager(s).
• Performance appraisal on a regular basis.
• Training, coaching and guidance for my role of being a new Product Manager.
• Communication and direction given from higher in the food chain.
• Openness – easy for me to approach you regarding work and how my projects are going.
• Recognition of my contribution to department.

A comparison of the two lists highlights that both Larry and the Product Managers who report to me are saying similar things. The following are key point that co-workers expect from their Product Manager.

Feedback from Commercial Stakeholders

• Delivery to agreed timescales.
• Communication of any issues or risks with suggestions of solutions
• Innovative approach, always looking to improve process and technology
• Maintaining effective channels of communication with all key stakeholders.
• Be on hand to lend expertise regarding possibilities for advertising and development on the site.
• Keep team updated on any problems on the site that interfere with advertising or performance.
• Be the bridge between the commercial team and developers for site developments
• Keep me updated on development/deployments we’re requesting for the site and any delays.
• First point of contact for any technical problems on the site.

Feedback from Technical Team Leader

• Coordinating with the business and the development team to ensure that there is a common understanding of priorities.
• Collaborating with the development team leader to ensure that product managers, developers and business owners understand and accept their responsibilities as we proceed with implementing new processes (SCRUM).
• Performing the role of Scrum Master for a number of sites.
• Collaborating with the development team leader to manage the relationship between product managers, developers and the business.
• Contributing to the Release process when required.
• Infrastructure team aware of the importance of a particular release.

Different groups will expect different things from you. It is important to know who expects what and how you can full fill your co-workers and direct reports expectations. Failure to do so could not only threaten your current performance but stifle your career. However by asking the simple question “what do you expect of me” and making the appropriate adjustments could lead to increased performance resulting in an increased ROI and a greater chance of career progression.
What do you expect from your co-workers?