Find the ultimate guide that trains you well by discussing product manager vs project manager concisely.
Sometimes you may confuse yourself with the terms product and project managers, since in most businesses you will see that these professionals are working together. Not to mention, fresh graduates and trainees often make such mistakes.
You could either be a product manager, project manager, or both, depending on your workplace, your own business, or contracts. Whichever the case may be, you must know the fine differences and similarities between these two professions.
Continue reading to understand product and project management techniques from the ground up, discover some online learning courses, and indulge yourself with the perks of these two job roles.
Who is a Product Manager?
A product manager is someone responsible for determining which customer needs and the business goals a product can fulfill. Being a relatively new position, there are various questions about the responsibilities of this position holder.
A Product Manager has to manage and assess a product throughout its lifecycle. However, they get assistance from other specialist professionals including designers, developers, QA engineers, manufacturing teams, supply chain and logistics experts, marketing managers, and many more.
Responsibilities of a Product Manager
A product manager is responsible for managing the overall process of product creation or feature addition. Throughout the product life-cycle, they need to wear many hats, including the following ones:
Problem Identification
A product should be able to resolve one or more problems of the customers. Hence, the most integral part of being a product manager is to identify the problems on which the team needs to build the next product.
Market Research
Market research is how a product manager will know the problems of the users or the existing requirements of a local or international market. This helps the whole team to understand the potential market size of a product and how it can resolve the problems.
Product Proposal Development
Product managers also need to get feedback from the technical team about their opinion and create a product proposal. The proposal will include which products and features to build or add text that aligns with the organizational policy.
Manage the Technical Team
Once a product gets the nod from the managerial team, the product managers have to guide their technical team to materialize the vision of a product. While they should give sufficient freedom to the tech team, constant supervision is also vital to keep the product development process on track.
Test and Review Products
Product managers continuously test and validate their products to make sure the customers get the best version of the product without any glitches. During the qualifying phase, they run beta programs. While in Agile environments, they need to always check for customer reviews and make necessary changes.
Determine Product Price
Product managers also play a role in setting the product price, whether by recommendation or info contribution. Though it only happens in selective industries, product managers should be aware of the competitor’s pricing to help decide the product price.
Product Launch
Even at the phase of launching, the product managers are not free from responsibilities. They need to be in touch with the company’s marketing team to make the product reach the right customers.
Who Is a Project Manager?
To understand the role of a project manager, first, you need to understand projects. A project is a set of time-bound tasks that upon completion produce an outcome. The outcome could be anything related to a business. For example, rolling out a software patch, pushing OS updates, producing products and distributing those, and so on.
A project can be linked to a product’s lifecycle. For example, choosing the graphical appearance of a product’s box could be a whole project. Another example could be marketing a smartphone game on social media to boost sales. All these are projects revolving around products.
Now, the professional who is responsible to completing a project and submitting the project report to their superiors is a project manager. A project manager is answerable for timely project completion, utilization of project resources, and keeping the project within a set budget.
Responsibilities of a Project Manager
Project Planning
The project manager needs to join the project from the planning stage and stay there until the outcome is evident. Along with technical specialists, accountants, product managers, human resources managers (HR), etc., a project manager needs to plan the whole project.
Creating the Project Team
A project manager must understand the requirements of the project and accordingly requisite workforce from the organization. If needed, project managers can requisite new hires through the HR team.
Leading the Project Team
Irrespective of the talent pool of the project team, a project manager is always the leader. You must lead the team and delegate appropriate tasks to the project resources. Also, you must train trainee project managers for future succession planning.
Set Rationale Project Deadlines
You need to work with the project’s client and business stakeholders to determine a rationale project deadline. You must keep a buffer to not exhaust your project team because this team will stay with you for more projects to come.
Monitor Project Progress
Being a project manager, the project progress chart, timeline, or Gantt chart should be at your fingertip. Whenever the client or organization leadership team asks for a status report, you must not hesitate to explain the project’s health and pace.
You should also check the best Gantt chart software.
Resolve Project Bottlenecks
Every project will encounter some bottlenecks. As an ace project manager, you should think creatively in multi-dimension to avoid common bottlenecks like the upcoming holiday season, weather issues, skill shortages, etc.
For unforeseen bottlenecks, you must work with the leadership team, business owner, and clients to resolve those issues and get the project back on track.
Manage Budget
You will be the sole manager of all the budgets for your project. So, you need to have appropriate money management skills to not make the project over budget.
Create Project Reports
You mostly need spreadsheet and project management app skills to manage projects digitally. Then, you also need to extract numerical data from the project to evaluate its performance.
Report to Business Stakeholders
Finally, you are responsible for submitting the project’s quarterly, half-yearly, or annual reports to the stakeholders. You are also the key person to delivering project deliverables to the client.
Product Manager Vs Project Manager: Differences
The key differences between a product manager and a project manager are as follows:
- A product manager deals with questions like “what” and “why” of the product. On the other hand, a project manager needs to take care of the “how” and “when” of it.
- Besides being business-savvy, product managers should be good at strategic thinking and market research. Contrarily, project managers are well versed in planning, budgeting, organizing, and time management.
- While product managers have a thorough and strategic knowledge of products, project managers know the planning and tactical parts.
- Product managers own the vision and set the goals. However, project managers follow that vision and work to achieve them.
- Product managers function as a bridge between the project manager and all other stakeholders. On the contrary, the project manager works as the coordinator between the technical teams and the product manager.
- Though product managers are part of the whole product development process, they are needed even after the product launch to work with the marketing and sales teams. On the flip side, the responsibility of the project manager ends with the project delivery.
Let’s see some vital comparisons between these two managers:
| Parameter | Product Manager | Project Manager |
|---|---|---|
| Primary Focus | Developing and launching successful products | Planning, monitoring, executing, and delivering projects |
| Skillset | Market research, analysis, strategy, UX design, product launch, marketing, data analysis | Project planning, execution, risk management, resource allocation, stakeholder communication, team leadership |
| Responsibilities | Identifying and validating product opportunities, developing product strategy, creating product roadmaps, managing product development, measuring product performance | Defining project scope, developing project plans, allocating resources, managing project risks, communicating project status, ensuring project deliverables meet stakeholder expectations |
| Earning Potential | $100,000 to $150,000 or more annually | $67,000 to 1,00,000 annually |
| Interaction | Have more direct interaction with customers and other stakeholders | Have more direct interaction with team members and other project stakeholders. |
| Involvement | more involved in the creative and strategic aspects of product development | more focused on the execution and delivery of projects. |
| Understanding | Have a deeper understanding of the market and customer needs | Have a stronger understanding of project management methodologies and tools. |
Necessary Educational Background
For Product Managers
You can become a product manager after graduating from any college degree, but a marketing or business operations degree is often preferred. If you can build experience and skills beforehand, that will be an added advantage. The following skills are important to become a product manager:
- Basic business knowledge
- Data analysis
- Market research
- Price modeling
- UX
Though it is not mandatory to have certifications to become a product manager, having one or more will surely work in your favor during the job interviews.
- AIPMM Certified Product Manager Credential
- Product Manager Certificate from Product School
- Certified Product Manager from Pragmatic Institute
So far, you have learned the mandatory educational qualifications, skills, and training necessary to become a successful product manager. Now, it is time to learn about professional online courses that can help you achieve your goals. Sign up for any of the courses below according to your learning objectives:
Become a Product Manager-Udemy
Becoming a Product Manager: A Complete Guide- LinkedIn Learning
Become a Product Manager-Udacity
Product Management Courses-edX
Real-World Product Management Specialization-Coursera
Software Product Management Specialization-Coursera
2. For Project Managers
Like the product manager, project managers cannot start their career in a management post. Most project managers start their career journey in the technical field. For example, an automotive project manager starts as an engineer, a software development project manager starts as a developer, and so on.
Speaking of skills, project managers must bring the following acumen to the table:
- Knowledge of Waterfall, Scrum, and Agile
- Managing risks
- Hands-on expertise in PM tools like Gantt charts, Jira, Asana, etc.
- Money management
- Ability to understand technology quickly
- Ability to apply business management concepts like Skill Will Matrix.
You also need to pass one or two global project management certifications like:
- Certified Associate in Project Management (CAPM)
- Professional Scrum Master (PSM I)
- Project Management Professional (PMP)
- Certified ScrumMaster (CSM)
Until now, you have learned the skills, training, acumen, and educational qualifications needed to succeed as a project manager. However, you need to sign up for an appropriate online course from the following list to organize your project management learnings and pass certifications:
Project Management for Beginners-Udemy
Google Project Management-Coursera
Project Management Principles and Practices Specialization-Coursera
Project Management Specialization-Coursera
Advance Your Skills as a Project Manager-LinkedIn
Introduction to Project Management-edX
IT Project Management Professional Certificate-edX
Skills, Certifications, and Earning Potential
In this section, let’s see the requirements of skills and certification for being a project and product manager.
Project Manager
A project manager looks after the planning, monitoring, execution, and delivery of projects to ensure projects are completed according to the proper requirements, within schedule, within the budget, and the set standards.
A project manager should possess strong knowledge of project management methodologies such as PRINCE2, Kanban, Scrum Methodology, Agile Methodology, Waterfall Methodology, Six Sigma, etc. Risk management is another vital part of project management wherein the manager should be able to identify risks and, at the same time, develop risk mitigation plans.
They are expected to show great communication with respective stakeholders and the ability to manage resources effectively.
Skills
- Project planning and execution: The ability to develop project plans with deliverable schedules and with achievable objectives, and able to execute those plans effectively.
- Risk management: A manager should be able to identify, assess, and mitigate project risks.
- Resource allocation: One of the key tasks of a project manager is the effective allocation of resources to deliver the projects within a set budget and schedule.
- Stakeholder communication: The ability to communicate effectively with all stakeholders, project owners, team members, and clients, keeping everyone abreast by sharing progress updates regularly.
- Leadership: Leading and motivating a team effectively to deliver the project.
Certifications
- Project Management Professional (PMP): An industry-recognized gold standard in project management, the PMP certification is highly sought after by organizations and provides its holders with limitless professional opportunities.
- CAPM (Certified Associate in Project Management): This certification is a good option for beginners in the project management field. It requires less experience than the PMP and is less expensive.
- Agile Certified Practitioner (ACP): This certification is for managers who work in Agile environments.
- PRINCE (Projects IN Controlled Environments): A structured project management method and certification program designed to improve project management skills and outcomes.
Earning Potential
As per the report from Glassdoor, the average salary for a Project Manager varies from $67,000 to 1,00,000 per year in the United States, except for other perks. It’s important to note that actual salary depends on factors like skillset, years of experience, location, and the industry.
Product Manager
Product managers oversee the overall success of a product, ranging from ideation through to launch and beyond. They need an understanding that ranges from the market, its target audience, and the competitive landscape.
They must also be able to develop a product strategy and product roadmap and lead the whole software product development process.
Skills
- Market research and analysis: Able to conduct market research and analyze data to have a better understanding of the market trends, customer needs, and competitive offerings.
- Product strategy: A manager should be able to develop a product that is aligned with the business objectives of the organization.
- UX design: Being able to understand the user’s needs and coming up with a product the user can use.
- Product launch and marketing: Being able to come up with and implement a plan that will contain the launching of the product as well as market the product to the audience.
- Data analysis: The ability to collect, analyze, and interpret when it comes to the measure of products’ performance data and to propose areas for improvement.
Certifications
- Certified Product Manager (CPM): The Association of International Product Marketing and Management (AIPMM) provides this certification. This certification showcases that you have the knowledge, skills, and abilities to be an effective product manager. It requires at least three years of experience.
- Certified Scrum Product Owner (CSPO): The CSPO is a certification for product owners who work in Scrum environments. It demonstrates your understanding of the Scrum framework, helps you become a more effective product owner, and can help you advance your career in Agile environments. The certification is offered by Scrum Alliance.
- Certified Product Owner (CPO): The CPO is a certification for product owners who want to learn the fundamentals of product management. It covers topics including product strategy, product development, product marketing, and product launch. This is offered by The American Association of Product Owners (AAPO).
Earning Potential
Glassdoor provides insights into the average salary for product managers in the United States, which typically ranges from $100,000 to $150,000 or more annually, except for other benefits.
Challenges of Being a Product Manager and a Project Manager
Though it sounds lucrative to be a product or project manager, there are some challenges that these professionals come across while working on projects.
Challenges of Being a Product Manager
- Managers must expertly manage conflicting expectations and devise solutions to meet all stakeholder’s expectations. They must know how to create win-win scenarios for everyone involved.
- Must carefully prioritize key features while keeping customers’ needs in mind. Balancing resources, time frames, and customer input is essential for developing successful products with the desired impact on the marketplace.
- Have extensive experience in navigating complex dependencies and challenges when meeting product launch deadlines, all while ensuring that crucial tasks are effectively prioritized.
- Product managers ensure projects stay on track by proactively identifying and mitigating risks to minimize potential disruptions. They should take a systematic approach to reduce the impact caused by budget overruns, technical issues, or market challenges.
- Must have exceptional communication skills and be able to quickly and effectively engage with various stakeholders. Their ability to write clear product requirements, deliver presentations, and keep everyone updated on progress is vital for success.
- Must stay up-to-date and be agile in adapting to changing environments. Also, product management requires strong decision-making skills, as well as the ability to navigate ambiguity skillfully while creating solutions that address real customer needs.
- Product management is a highly rewarding and stimulating career that can create meaningful impacts on products, consumers, and the industry, but not without challenges.
Challenges of Being a Project Manager
- Project managers must possess strong interpersonal and communication skills to effectively deliver on the expectations of various stakeholders.
- Having deep knowledge of the project scope is invaluable for understanding competing demands during each phase of the project lifecycle. It helps to stay on track from start to finish with minimum disruption along the way.
- Scope creep is the unfortunate reality of many projects, and managing it effectively requires skillful planning and years of experience.
- Without SMART objectives that are specific, measurable, achievable, and relevant, there is a high probability that the project may be delayed and result in unfavorable results. A capable project manager must have a clear vision of the end goal and plan for success.
- Project managers require access to sufficient personnel, equipment, and budget to achieve successful project completion or the possibility of missing delivery deadlines.
- Identifying and mitigating the risk is a top priority of the project manager. It becomes vital to monitor their progress throughout the project’s lifecycle and adjust plans as needed.
- Conflicts are bound to happen in the project, so project managers should be experts in managing and resolving conflicts between stakeholders, customers, and team members.
- Irrespective of all unfavorable conditions, project managers are responsible for meeting the project deadlines by efficiently managing time and people, juggling dependencies, and addressing unforeseen challenges.
Product Manager Vs Project Manager: Which Is Better?
Among MBA and college graduates, the product manager role is the most sought-after career. According to a Dec 13, 2021 report from Glassdoor, the average annual salary of a product manager could be up to $127,496 including base pay and additional pay.
However, an entry-level product manager can earn as low as $76K/year. Now, depending on experience and certifications, the salary could be as high as $216K/year.
You can start as an associate product manager. Then work diligently through your career path to acquire extraordinary skills and instincts that could make you the Chief Product Officer or CPO of a company. Then, instead of managing one product or service, you need to oversee all the product/service development projects in the organization.
On the flip side, you can earn an average wage of $84,970 annually as a project manager. The entry-level salary range is $53K/year and could go up to $137K/year. This salary data is according to the same Glassdoor report published on Dec 13, 2021.
However, you can get a much better salary if you could secure a job with enterprises like Meta (up to $200,903/yr), Brocade (up to $199,935/yr), Tencent (up to $195,229/yr), Google (up to $193,048/yr), NVIDIA (up to $188,369/y), and Logitech (up to $185,453/yr).
The project manager’s role is all about completing projects successfully and climbing the ladder of designations. You can start as a trainee project manager and become Chief Operating Officer or VP of Operations.
From the monetary aspect, it looks a product manager’s career is better in terms of compensation, perks, and benefits. However, at the top level, a project manager can control the entire business operation while a product manager simply oversees products/services.
Growth Prospects of Product Manager and Project Manager
Looking at the trend in the job markets over the past 5 years in the USA, the data for Product Managers and Project Managers mention a trend of demand that is on an upward trajectory for both sets of careers. Key statistics and trends are highlighted herein:
Project Manager
It remains explicitly clear that product management remains one of the on-demand careers with guaranteed growth. In addition, the May 2022 report indicated that Product managers earned a median annual wage of $121,590, while those with great experience earned exceeding $208,020 per annum. From 2022 to 2032, job growth is expected to grow by 10 percent, which indicates strong job security for anyone trying to get into this field.
Product Manager
As per the US Bureau Of Labor Statistics, employment is expected to rise 6 percent from 2022 to 2032, faster than the average for all occupations. Those individuals with three years or less experience working as Project Managers are found to earn around $79,992 as the average base salary in the US.
A PMI report shows that by 2027, there will be an estimated 87.7 million people in project management-oriented roles, representing a 33% growth compared to today’s figures.
Product and Project Managers are sweet positions in great demand, coming up with good pay and enough flourishing opportunities. Though the skillset requirement behind each job differs a bit, both of the positions cater to different sections of the set of jobs at hand. With the available knowledge base and appropriate background experience, both of the mentioned positions will be able to help you grow your career by huge margins.
Final Words
Skilled, self-driven, and responsible product, as well as project managers, are the two must-have talents that every business requires. You have distinctive roles as a project and product manager.
Every product manager vs project manager discussion ends with a conclusion that both are necessary to deliver business operations regularly, innovate new products/services, and grow into the future.
Depending on your education, skills, job experiences, and career goals, choose one that suits you the best and aim to become an ace in the industry.