# The Overlooked Aspect of Product Management: The Role of General Management
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Chapter 1: The Importance of General Management in Product Success
In the world of product development—whether it involves software, hardware, retail goods, or consumer services—there comes a moment when a product reaches its peak performance. This phase is characterized by a sense of accomplishment as the product stands at its most refined and visually appealing. However, the joy can be short-lived. Once the product is launched and the initial excitement fades, sales may start to decline. You might find that the actual market interest in your meticulously crafted product doesn’t align with the optimistic forecasts made based on prior, less polished iterations.
At this juncture, it becomes evident that there is an imbalance between product management and business management. A crucial question arises: Where is your product’s general manager?
The Peloton Example: A Cautionary Tale
As I pen this article, Peloton is reportedly halting production on several of its innovative products due to a sudden decline in demand. This downturn seems to be more closely related to post-lockdown realities than any inherent flaws in the products themselves. Just a year ago, Peloton was thriving, with its stock value soaring and production struggling to keep pace with demand—an impressive feat considering some of their products had to be recalled due to customer injuries.
Lauren Thomas from CNBC notes, "Peloton miscalculated how many bikes would be sold after demand surged during the pandemic." Now, the company is grappling with excess inventory of cycles and treadmills that are either trapped in warehouses or stuck on shipping vessels. The question remains: Where was the general manager while warehouses overflowed with treadmills?
The Reality of Demand Fluctuations
In the hardware industry, where product durability and design are paramount, the stakes are high. In contrast, software demand often plateaus more frequently and predictably. Concurrently, Netflix faced its own challenges when it failed to meet subscriber growth expectations, shortly after increasing its prices. Despite being a leader in the streaming world, Netflix's management seemed blindsided by the limitations of its audience—a reminder that even industry giants can misjudge market dynamics.
The Role of the GM in Product Management
Your general manager should act as a gatekeeper for the release roadmap, ensuring that new features or iterations don’t leapfrog critical developments simply because they align with a release date.
#### Prioritizing User Experience (UX) Over User Interface (UI)
Feedback on user interface is often loud and persistent, leading entrepreneurs to obsess over aesthetics at the expense of functionality. However, research shows that users will favor a less attractive but highly functional product over a visually appealing yet ineffective one.
#### Enforcing Deadlines
Upon launching a product, it's common to have numerous fixes and workarounds that require attention. However, each moment spent refining these elements detracts from efforts to expand market share. The GM must find a balance between improving the product and pursuing growth.
#### The Value of Diligence
While building a product is exhilarating, managing it can feel monotonous. Yet, both aspects are crucial. The tangible results from development are gratifying, but the success of business management often stems from smaller, cumulative improvements.
Focusing on the Right Goals
The aspiration for a flawless product often prioritizes company objectives over customer needs, particularly in startup environments. Transitioning from a minimum viable product to a fully functional offering poses challenges, especially in balancing preparation for scaling with actual growth.
The interplay between product management and general management is essential for achieving the right equilibrium. Don’t overlook the often-ignored side of this equation. Consider hiring or stepping into the role of your product's general manager today.
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This article first appeared in Built In, where I contribute a weekly column on startup and innovation strategies.
Chapter 2: Key Video Insights on Product Management
The first video, "Webinar: Finding Your Superpower in Product Management," features Disney's Senior Product Manager Greg Newman discussing the unique strengths that product managers can harness to drive success.
In the second video, "The Forgotten Value of Experience in Product Management," industry experts delve into how past experiences can significantly influence effective product management strategies.