What is a product owner?

A product owner works within the Scrum or Agile development methodology. The purpose of the role is to ensure a product delivers customer value by managing the backlog, which lists the requirements and features of each product.

They often serve as liaisons between collaborators and the delivery teams to optimize the product and meet end users’ needs. Product owners help keep the product development process organized and ensure the Scrum team prioritizes the correct tasks.

A product owner also helps shape the direction of a product by focusing on the features that deliver the greatest value. They may conduct early testing to gather customer feedback and apply it by balancing customer needs with business goals.

What is a product manager?

Product managers also work with several groups, including collaborators, senior management and product development teams. They aim to develop a strategy for the product based on business goals and user needs.

A product manager’s duties include creating a feature roadmap and establishing timelines for the project. This helps the development team decide the next steps and meet the goals established by the product manager.

Once the product development process is finished, the product manager often participates in launch activities. For example, they might help create the go-to-market plan and track analytics.

Similarities between the roles

Product managers and product owners work with products as they go through the development process. Both roles work with the development team and other collaborators and typically conduct tests to ensure the products function as intended.

Many key skills for the positions overlap, such as communication, active listening, decision-making, leadership and critical thinking.

Differences between a product owner vs. a product manager

Understanding the differences between a product owner vs. a product manager can give you a better idea of how they might add to your organization.

Product owner vs. product manager salary

Indeed Salaries reports that product owners make an average of $114,796 per year plus an average yearly cash bonus of $7,500. Product managers average a higher base salary, $121,164 per year, with a slightly lower annual cash bonus of $5,000.

Scope of the position

Product managers may handle a broader scope than product owners. A product owner focuses mainly on user stories and feature development. Several duties are involved in that role, but it’s a limited scope compared to the overall project life cycle.

Meanwhile, a product manager is typically involved from the beginning of the project through the launch. They’re responsible for the product’s overall success and make strategic decisions throughout the development process.

Focus

While both professionals work toward creating a successful product, their focus is slightly different. Product owners focus on creating a product with features that satisfy customer needs. They typically work with different groups, including end users and the development team.

Product managers assess a project from a highly strategic standpoint. They guide the overall direction of the project and often work with more groups than product owners, including executives, marketing and sales. Those collaborations help ensure their strategy is carried out properly.

Job skills

A product manager typically needs a broad range of skills beyond product management, including market research and marketing. Product owner candidates need a strong understanding of the Scrum software development life cycle (SDLC) methodology and should be detail-oriented.

Which to hire: Product manager vs. owner

Deciding between a product manager vs. an owner often depends on your organization’s structure and needs. These factors can help you decide:

• Project goals: Decide whether you want to focus on optimizing the value for users or balancing customer needs with business value. A product owner can help with the former, while a product manager often excels at the latter.
• Current structure: Assess your current team. If you’re just starting a team, you might hire a product manager first. They can handle most of the duties of a product owner while your organization is small.
• Processes and performance: Evaluating your current product development process helps you look for inefficiencies or areas for improvement. If your development team works well on their own, you might hire a product manager to oversee the process. If the development team needs more hands-on guidance, a product owner can help.

When to hire a product manager

You might hire a product manager in these circumstances:

• You already have a product owner on the team.
• You want someone to manage the entire process, from concept development to product launch.
• You’re a small company forming your project management team.
• You want to take a strategic approach to product development.
• You want more help with a product’s overall direction.
• You could benefit from more help with market research and overall vision.

When to hire a product owner

Your organization might benefit more from hiring a product owner in these situations:

• Your current project manager could use assistance.
• You use the Scrum methodology.
• Your development team needs more support to guide their duties.
• You want to expand your product development team.
• You want to focus on meeting customers’ needs.

Frequently asked questions about a product owner vs. a product manager

Is a product owner or a product manager a higher-ranking position?

A product manager often ranks higher than a product owner within a company. The product manager usually has more duties and responsibilities and manages many aspects of a project. When you have both on your team, your product owner typically reports to your product manager. However, product owners and product managers have distinct duties, often including supervisory and decision-making tasks.

Do product owners and product managers collaborate?

If your organization hires both positions, they should collaborate extensively throughout the process. The product owner focuses on smaller aspects of the job, aiming to fulfill the product manager’s vision and goals. They need to communicate well to ensure they have the same product vision and know how to prioritize features to achieve that goal.

What should you look for in a product manager?

When hiring a product manager, seek candidates with well-rounded business and technical experience. They should also have strong leadership and collaboration skills to work with a wide range of people.

Asking targeted product manager interview questions can help you assess each candidate’s qualifications.

What should you look for in a product owner?

Consider choosing a product owner with a strong understanding of Agile processes. Attention to detail is also important for ensuring product features meet customer needs. Other helpful attributes may include knowing how to prioritize tasks, communicating effectively and understanding consumers’ wants.