The ultimate guide to product operations | Melissa Perri and Denise Tilles

Click to expand the mind map for a detailed view.

Key Takeaways

  • Product Operations (Product Ops) is an emerging role designed to support product managers by handling operational tasks, allowing them to focus on strategic work.
  • Three Pillars of Product Ops: Business & Data Insights, Customer & Market Insights, and Process & Practices.
  • Benefits of Product Ops: Reduces burnout, improves efficiency, and enables product managers to focus on high-impact strategic decisions.
  • First Hire: Start with one person focusing on the most critical pillar for your organization.
  • Product Ops vs. Project Management: Product Ops focuses on enabling better decision-making, while project management is about executing specific projects.
  • Scaling Product Ops: Begin with a small team and scale as needed, ensuring the function remains lean and efficient.

Detailed Summary

Introduction to Product Operations

  • Product Ops is a relatively new role that has gained traction in the last five years, especially in scaling tech companies.
  • The role aims to offload operational tasks from product managers, allowing them to focus on strategic work.
  • Melissa Perri and Denise Tilles, authors of Product Operations: How Successful Companies Build Better Products at Scale, discuss the evolution and importance of this role.

The Three Pillars of Product Ops

  1. Business & Data Insights:
    • Focuses on quantitative data to inform product decisions.
    • Helps product managers access and interpret data without spending excessive time on data extraction.
    • Example: Creating dashboards for executives to monitor product health and strategy alignment.
  2. Customer & Market Insights:
    • Focuses on qualitative data, such as customer feedback and market research.
    • Helps streamline user research processes, including participant databases and research synthesis.
    • Example: Aggregating customer feedback from sales and support teams to inform product decisions.
  3. Process & Practices:
    • Focuses on improving product management processes and governance.
    • Helps standardize roadmaps, OKRs, and cross-functional communication.
    • Example: Implementing consistent roadmap templates across teams to improve visibility and alignment.

Benefits of Product Ops

  • For Product Managers: Frees up time to focus on strategic work, reduces burnout, and improves decision-making.
  • For Companies: Increases efficiency, improves product quality, and aligns product teams with business goals.
  • For Executives: Provides better visibility into product performance and strategic alignment.

Challenges and Considerations

  • Fear of Role Overlap: Product managers may fear losing control over decision-making, but Product Ops is designed to support, not replace, their role.
  • Hiring the Right Person: The first hire is critical and should align with the most pressing need (e.g., data analysis, user research, or process improvement).
  • Scaling Product Ops: Start small, focus on high-impact areas, and scale as the organization grows.

Case Study: Athenahealth

  • Challenge: With 360 product managers and 5,000 developers, Athenahealth needed better visibility into product roadmaps and data.
  • Solution: Implemented Product Ops to streamline data analysis, improve executive visibility, and standardize processes.
  • Outcome: Product Ops became a critical function, retained through multiple organizational restructurings.

Key Insights

  1. Product Ops is not a replacement for product management but a support function that enables product managers to focus on strategy.
  2. The Three Pillars: Business & Data Insights, Customer & Market Insights, and Process & Practices form the foundation of Product Ops.
  3. Start Small: Begin with one person focusing on the most critical need, then scale as the organization grows.
  4. Product Ops vs. Project Management: Product Ops focuses on enabling better decision-making, while project management is about executing specific projects.
  5. Data is Key: Product Ops helps product managers access and interpret data faster, improving decision-making.
  6. Customer Insights: Product Ops streamlines user research, making it easier for product managers to gather and act on customer feedback.
  7. Process Standardization: Product Ops helps standardize processes, reducing inefficiencies and improving alignment across teams.
  8. Executive Visibility: Product Ops provides executives with better visibility into product performance and strategic alignment.
  9. Hiring the Right Person: The first Product Ops hire should align with the organization’s most pressing need (e.g., data analysis, user research, or process improvement).
  10. Scaling Product Ops: Keep the function lean and focused, scaling only as needed to avoid unnecessary overhead.

Software Tools

  • Jira Product Discovery: A prioritization and roadmapping tool for product teams.
  • Amplitude: A product analytics tool for tracking user behavior and product performance.
  • Looker: A business intelligence tool for data analysis and visualization.
  • Tableau: A data visualization tool for creating dashboards and reports.
  • Dovetail: A tool for aggregating and analyzing customer research data.
  • MongoDB: A database tool used for data extraction and analysis.

People Mentioned

Speakers

  • Melissa Perri: Author of Escaping the Build Trap, co-author of Product Operations, and founder of Produx Labs.
  • Denise Tilles: Product leader, coach, and consultant, co-author of Product Operations.

Other Individuals

  • Blake Samic: Head of Product Operations at OpenAI, previously at Uber and Stripe.
  • Christine: From Pendo, discussed Product Ops in a previous podcast.
  • Jen Cardello: VP of User Insights at Fidelity, known for her work in research ops.
  • Brian Bhuta: Chief Product Officer at Forsta, advocates for Product Ops.
  • Tim Davenport: Oversees Product Ops at Athenahealth.

Companies Mentioned

  • OpenAI: Employs Product Ops to streamline product management processes.
  • Uber: One of the early adopters of Product Ops, led by Blake Samic.
  • Stripe: Utilizes Product Ops to improve product decision-making.
  • Ramp: A company with a lean Product Ops team.
  • Deal: Another company leveraging Product Ops for efficiency.
  • Athenahealth: A case study in the book, showcasing the implementation of Product Ops.
  • Pendo: A company that has been vocal about the importance of Product Ops.
  • Forsta: A company where Product Ops has been instrumental in improving product management.
  • Fidelity: Utilizes Product Ops for user insights and research operations.