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Forrester Consulting Study: Investing in product management’s business impact

Forrester Consulting Study: Investing in product management’s business impact

How strong product management practices drive better business outcomes 

Organizations with advanced product management practices are 36% more likely to achieve revenue growth, yet investments in the function are still falling behind the demand for digital products and rise in customer expectations.

Productboard commissioned Forrester Consulting to conduct a new study, The Business Impact Of Investing In Product Management, that provides a deep analysis of the relationship between greater product investment and performance – an investment that organizations can’t afford to ignore in an increasingly uncertain economic environment. 

Dive into some key takeaways below. The full study, which includes recommendations on making product bets with greater impact, is available here.

Key takeaway 1: Pressure on product management is growing

Pressure on product managers increased in the past two years as their organization’s products are expected to evolve, improve, and drive specific customer and business outcomes on increasingly tight timelines. 

Product management has increased responsibility in driving business outcomes. Over the next 12 months, firms are prioritizing revenue growth, increasing operational efficiencies, and improving their ability to innovate. Within the product management organization, these priorities are reflected in the shifts in its division-specific priorities.

-Forrester Consulting Study

Streamlined processes and upskilled teams are required to execute on these product-driven goals, but available resources often don’t match up with expectations. Thus, product teams that are forced to do more with less will vastly underperform their peers.

Key takeaway 2: Investments in product management organizations aren’t sufficient

A major disconnect exists across product organizations between product managers and leadership: the C-level believes their product management practices and investments are more advanced than they actually are, putting the entire organization in peril of underperformance against their goals. 

The impact of this disconnect is immense; product teams are under pressure to advance business-critical work without sufficient investment and resources fit for the purpose of their roles. Even greater, many don’t even have final – or any – say in technology selection and are left using disparate tools that often do not integrate with other business-critical tools at their organizations. 

The product management organization is using disparate tools to perform their work. When asked about the tools and technologies they use to do their jobs, respondents indicated that their time is fragmented across a variety of tools that may or may not interoperate.

-Forrester Consulting Study

Key takeaway 3: Investing in product management drives business outcomes

There’s hope yet for organizations seeking a path to outperformance, and it begins stronger product practices and dedicated tools specifically designed for their roles and workflows. Organizations that are equipped with these toolkits are more likely to overperform on business-critical goals, including revenue growth, operational efficiency, and improved customer experience.

Product management organizations that deliver better business results are empowered by fit-for-purpose technology… Those using dedicated product management platforms are more likely to overperform on their high and critical business goals including growing revenue, increasing customer retention, and evolving the product portfolio.

-Forrester Consulting Study

To tap into a deeper analysis of the challenges facing product organizations – including key recommendations to success and practical ways to make product investments that drive better business outcomes – download the study now

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