Throwback to 1st Episode: The Different Styles of Decision-Making
Oct 18, 2023
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Marketing professor Jeff Shulman and advisory board members welcome experts Adam Grupp, Greg Young, Sumathi Kadambi, Marily Nika, and Sumantro Das to discuss decision-making in product management. They cover different styles of decision-making, the cost of failing to make decisions, creating metrics, building an ecosystem of experts, favorite decision-making matrices, sourcing new ideas, unconventional ideas, and decision-making frameworks and strategies.
Understanding the different styles and technical skills needed for effective decision-making in product management.
Building an ecosystem of experts and balancing data-driven and instinct-based decision-making.
Valuing customer feedback, embracing failure, and seeking diverse sources of inspiration in decision-making.
Deep dives
Importance of Decision-Making in Product Management
Decision-making is a crucial skill for product managers as they face various challenges in their role. It involves considering different decision-making styles and the technical skills required. New product managers need to understand the art and science of decision-making, while also learning to balance both throughout their careers. The danger of not making a decision and the fear of making wrong decisions are common concerns. Building an ecosystem of experts within the company can help in making effective decisions, especially when data is limited or misleading.
Understanding the Decision-Making Process
The decision-making process is iterative and requires setting the right frame and structure for decisions. Efforts should be focused on making the right decisions and committing to them, rather than striving for exhaustive data perfection. Involving the right stakeholders, considering market impact, and aligning decisions with company goals are important factors. Different decision-making frameworks can be helpful, such as the impact-probability-effort matrix, personal time management matrix, and pro-con lists. The key is to continuously develop decision-making skills and strive for a balance between data-driven and instinct-based decision-making.
Validating Decisions and Embracing Failure
Validating decisions and gathering feedback from customers is crucial. Engaging with customers, understanding their pain points, and solving their complaints can be a valuable source of inspiration for new ideas. Peer discussions, social media insights, and listening to podcasts related to one's area of work can also provide fresh perspectives. It is important to build a culture that accepts failure and encourages learning from it. Differentiating between small and big decisions helps in prioritizing the decision-making process and allows for quicker iterations when smaller decisions are made.
Leveraging Expertise and Looking Beyond
Decision-making should involve considering expertise but also looking beyond it. Experts can provide valuable insights, but their perspectives may be limited or biased. Cultivating curiosity and seeking inspiration from diverse sources can lead to innovative ideas. Looking outside the category, exploring adjacent products, and analyzing other successful examples can help generate unexpected solutions. Being scientific in decision-making involves having a clear understanding of objectives, cultivating a learning culture, and articulating decision criteria. It is also important to acknowledge biases and encourage a balance between expertise and thinking outside the box.
Frameworks and Considerations for Decision-Making
Decision-making frameworks such as RACI (Responsible, Accountable, Consulted, Informed) help in understanding decision criteria and promoting a learning organization. Decisions should be aligned with business or product objectives, and the scale of each decision should be evaluated. Considering risks, outcomes, goals, and the decision impact guides the decision-making process. Transitions between decisions and their criteria should be well-documented to support effective decision-making within the organization. Open communication, clear objectives, and understanding the decision process contribute to successful decision-making.
In this episode of the How to Succeed in Product Management Podcast, marketing professor Jeff Shulman and The Product Management Center advisory board members Red Russak and Soumeya Benghanem welcome Adam Grupp (Woodhaven Advisors), Greg Young (Collectors Universe), Sumathi Kadambi (Zillow), Marily Nika (Meta), and Sumantro Das (Mattress Firm) as they discuss the importance of decision making in the success of any project. The panel of experts, known and respected in their respective expertise, share valuable tips and insights on what it takes to come up with the right decision.
Disclaimer: All opinions of the speakers are their own.
What to Listen For:
00:00 Intro
01:03 The different styles of decision-making
03:44 “Understand the right process and structure to use to frame up decisions.”
05:37 “The expensive and scary are the ones where it's a long-term commitment you can’t change so easily.”
08:05 The cost of failing to make a decision and the fear of decision-making.
12:17 “Create your own metrics for your own product.”
14:57 What’s your bold thought on decision-making?
16:37 Is data just confirming what you already know or do you have some wild changes based off of it?
20:02 Half of PM decisions are decisions they’re not even conscious of
21:26 Build an ecosystem of experts within the company to help make decisions
24:24 Favorite decision-making matrix regularly used
27:01 Go-to method for sourcing new ideas or iterating mature and new products
34:23 Oftentimes, the best ideas come from unexpected places
37:15 Take what makes you successful but apply it in new places that can help make big changes
39:05 Be very clear on how everyone makes decisions
43:09 Decision-making takes time to build confidence on and to build the tool set
44:27 Some things are hard to let go but maybe they're not where our future is
46:24 Build a learning organization by understanding how decisions are made and documenting them
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