Product vs project – intro
Nowadays there has been a considerable shift to agile ways of working where we deliver value to a customer. By value we mean a workable product that the customer can use. The customer value is most often delievered through projects. Products and projects sometimes get conflated, because they are closely related to one another. However, each of them mean a different thing. In this post I’II try to lay out the main differences between a product and a project.
What are they?
Product
By definition a product is the outcome or the result of actions essential to put the idea into effect. Products that satisfy the needs of customers are called B2C (business to customer), while those satisfying the needs of business are called B2B (business to business). To get the product done, we build a product roadmap. Simply speaking, it’s the overview of the product which needs to align with the company’s strategy. It’s a resource which provides a quick snapshot of product goals – the future state of the product. That’s something that business needs at the moment. To reach a PG, we start with product vision. That’s what you want your product to become in the future.
Project
By definition a project is a planned piece of work that is designed to find information about something, to produce something new, or to improve something. A project is a time-boxed course of actions, which means it expires. Apart from time being fixed, so are the budget, the scope and the requirements in traditional project management. Unlike products that are driven by business needs, projects are plan-oriented.
Product vs project – the differences and dependencies
While a product is almost never fully complete, as it may be improved and modified all the time, a project has a finite start and finish date. Normally, projects are goal-oriented (products end-user need-oriented). We follow a series of carefully-planned actions to reach the goal. Hence, we follow the plan we’ve created before (we plan upfront) realizing the defined requirements that are most often fixed. In the case of a product we plan rather iteratively, as the requirements of the product tend to change. What’s more, with product-based management we deliver different versions of the products, whereas with project-based management it’s usually a one-off delivery.
Different approach to changes
When creating a product, its vision changes, but with projects we stick with the defined requirements, budget and scope. Any kind of deviation from the plan might increase the cost of the project, and thus is unwelcome. Another difference is where focus is put. With products we focus on the end-user and tangible, workable product they’re going to use. Every time a customer gets something new. This is not the case with the projects. The biggest emphasis is placed on the plan (usually tons of documents). Creating a product we can experiments. We work in an adaptive, experimental mode, which is a benefit. With projects before we proceed, we first must ascertain whether the action we’re to take goes along with the plan.
Project manager
A project manager is like a doctor who administers a patient’s treatment. It’s the team they administer. He decides about the course of action of their team. PM has the leading role in planning – which is oftentimes more important than doing the work. He sets time estimates and evaluates the team’s or teams’ capabilities. Furthermore, he makes sure the project going within the scope and the budget. When it comes to relationships on the team, he takes actions to improve communication between its members. Of course, projects like products are intended for outside people who are B2B or B2C.
Product manager
A product manager is a person who is accountable for the product from conception to release. To start with, they research market needs, analyze them, talking with potential clients and customers. After all, it’s them that the future problem will be for. Therefore, a product manager make sure the company or organization they work for is able to satisfy a client’s need. In other words, he ensures whether the product vision is compatible with the strategic goals of the company. Also, he manages the product during its all life cycle by gathering, prioritizing, negotiating the product backlog – a requirements inventory. He’s an intermediary between the client and the company. As regards the team, just like a project manager he assigns tasks to team members, identifies and helps solve conflicts on the team.
project vs product mindset: execution vs discovery
A project is a container for all the activities we plan in advance with the time, budget and scope being fixed. A project has a finite lifetime. In this respect, a Sprint is a (small) project. Project mindset is about execution, while product mindset is all about discovery. A good product team tackle the unknown and looks for new solutions by an trial-and-error. Products are based on increasing quality of life. We value items that make our life easier. In the next post we will touch upon the issue of Agile-based projects.
