The Product Owner role was originally established in Scrum (see Scrum Guide). The focus is on guiding the Scrum Team through product-oriented guidelines: user stories, product backlog, prioritization, communication, and decision-making. Product Owners (POs) operate as individuals, not as committees. This ensures clear responsibilities and enables timely decision-making.
This narrow understanding of roles raises several open questions:
- What does the Product Owner do if the agile project doesn't use a Scrum methodology?
- How does the Product Owner ensure that the right content is delivered and prioritized in the Product Backlog?
- Is the Product Owner really only responsible for the development team?
- How credible is the PO if he or she promises the moon regarding value?
The two sides of the PO
Well, every coin has two sides – and so does the role of the PO: In order to appear as a competent decision-maker "downwards" to the team, he or she must appear "upwards" to top management as a competent strategist and entrepreneur:
"The PO is the CEO of the product."
The Product Owner must therefore understand the customers, generate value, develop implementation strategies, and clearly demonstrate why the product is needed and how the market will be conquered. This brings us to a key leader who is responsible for nothing less than the product's success.
This dual role is very demanding, requiring the combination of strategic know-how and operational implementation skills. We often see product owners focusing on one aspect or the other, neglecting the other. This leads to constant pressure and stress because expectations – whether those of stakeholders or their own standards – are not met.
The basis for resolving this inner conflict lies in becoming clear about what is specifically expected from each side and what skills and tools are needed to meet these expectations.
The question of value
For example: The success of a product is measured by the value it delivers. Which stakeholders have which value expectations, and how do I, as the Product Owner, determine the value I promise these stakeholders? Furthermore: How do I implement this promise in the product?
In order: First, the stakeholders who demand value are:
- the customers (female buyers)
- the users
- the management and the organization itself
Customers who purchase the product often measure its value in terms of its price-performance ratio. Customers are experts when it comes to price. If they are not the users themselves, they rely on others to assess the product's performance.
Users want their needs met and their problems solved. Therefore, the product that maximizes their benefit is of greatest value to them. The following benefit-oriented product definition (Fig. 1) helps in this regard:
Figure 1: Elements of product benefits
Management measures the product's value by its contribution to financial success, market positioning, and brand reputation. Other stakeholders in the organization have additional value criteria, such as job creation and retention, engaging tasks and challenges, and being part of an innovative initiative.
To meet all these expectations, tools and methods must be used that allow for the concrete determination and influence of value. Often, however, the promised value cannot be directly influenced. For example, if management expects a financial contribution, the Product Owner (PO) cannot simply dip into the company coffers and transfer an impressive sum to the company account. No, customers must be persuaded to pay for the product. But even this action is not directly controllable by the PO; otherwise, they would have to persuade each customer individually to purchase the product. It is therefore not so simple and straightforward, but requires know-how, techniques, and tools to effectively manage this indirectness. The following model helps in understanding this (Fig. 2):
Figure 2: «Value Model» from the APO training
As Product Owners, we make decisions within our "sphere of influence." This allows us to shape and influence all aspects of the product:
- Appearance and Functionality → User Experience
- Integration into the context (e.g., complementary services, support, sales, social aspects) → Customer Experience
- Development and operational process → Team Experience
Through the targeted and systematic development of the product's design within its "impact sphere," we achieve—hopefully—the desired effects in the "result sphere." Our goal as Product Owners is therefore that buyers and users experience the promised value as effective product benefits (see above) and, in return, pay their fair share. Ultimately, internal stakeholders should also experience the expected value.
As Advanced Product Owners, we understand the entire Product Owner value chain, including all its tasks, tools, and interdependencies. As the product's CEO, we are accustomed to navigating between different levels (individuals, development team, core Product Owner tasks, management, customers, users, and the market) and confidently making the right, fact-based decisions to maximize the promised benefits. Those who haven't yet reached this level of expertise can deepen their knowledge in the Infometis Academy's Advanced Product Owner training and exchange practical experiences with other Product Owners.
