maturity levels in product management (Product Maturity
The 5 levels of maturity of a Product team according to Birdie
The combination of the 4 dimensions previously exposed generates 5 different maturity levels of a Product team. It is important to emphasize that moving to the next level does not necessarily mean eliminating all the characteristics of the previous levels; it is more about adding other layers to it , especially in terms of understanding when and how to use each of these characteristics.
A Product organization that is, for example, at a strategy-driven level still uses intuition in decision-making, a characteristic of the first stage of maturity, and project management skills developed in the second stage. Thus, the difference with more mature companies is that maturity makes it easier to identify when to use each of the methods in this “toolbox” that is acquired as experience increases.
Level 1: Intuition-driven
This is a common stage for early-stage organizations. It’s costa rica mobile phone number typically characterized by the absence of a formal product management team or by a team that primarily executes ideas from leadership—something that can work in the early days, especially because the founders have a strong vision of what they want to accomplish as a company and are looking to turn that vision into reality.
Companies at this stage also tend to lack a formalized product vision, clear strategy, and processes to prioritize features based on customer and market needs. Decisions tend to be made based on HIPPOs rather than evidence – and the lack of criteria behind this results in a lot of inefficiencies, especially when trying to scale the company.
Level 2: Project-oriented
Companies at this level begin to formalize their Product organization, but the product management team is seen primarily as process facilitators who help deliver products on time while also ensuring the quality of what is delivered.
It is not uncommon for Product organizations at this stage to have trouble translating customer conversations into real needs – as they basically work managing demand requests, operating almost like project managers.
Product teams at this level typically lack a shared vision, strategy, and roadmap with the rest of the organization. Product roadmaps change frequently—or don’t even exist—and some decisions remain unclear.
Level 3: Customer-driven
At level 3, companies have a stronger Product area, some established processes, and shift their focus to listening to customers.
Since the customer is the focus, areas that deal directly with the end customer, such as customer service and sales, gain a lot of power and influence over the product strategy. It is not uncommon to see roadmap prioritizations that mirror internal projects from the Customer Success (CS) team or that address requests from a more “important” customer – this happens mainly due to the lack of processes and tools to collect, store and translate user feedback into real needs and results.
Other characteristics of this level include a lack of understanding of the bigger picture, a lack of real understanding of the market, a lack of a well-defined product strategy, and a short-term product vision. This makes it difficult to make prioritization decisions and define product metrics and KPIs that help measure progress. Finally, customer requests that come through the Sales or Service teams not only impact the product strategy, but also influence the corporate strategy as a whole, which is still immature.
Level 4: Opportunity-driven
At an opportunity-driven level, Product teams are able to gain a better understanding of the market, competition, and user needs. Cross-functional teams become more consolidated and autonomous, which aligns with a better-established product vision and strategy, and defined goals and metrics. Product leadership becomes more strategic, has a stronger voice, and begins to influence the overall strategy of the company. Evidence is often used to justify product decisions and to help direct strategies in other areas.
Product teams in these organizations are capturing and accessing user feedback from different sources and analyzing it to understand what they should do and what their pain points are. They are also beginning to combine qualitative and quantitative data to segment user groups and understand what perceptions and behaviors are linked to different profiles.
At this point, Product teams may still feel overwhelmed with too much data and disconnected information, which can lead to a delay in the decision-making process, mainly due to the lack of a unified view of the quantitative and qualitative data of the customer base.
Level 5: Strategy-driven
At an excellent level, decisions are made taking into account both corporate strategy, market dynamics, and customer needs. Product has a clear understanding of customer needs and is able to lead strategy, P&L, and collaborate cross-functionally with other teams to achieve their goals.
Product teams at this level have well-defined processes and access to tools that allow them to focus on desired outcomes and have frictionless access to data and evidence – both user behavior and perception – to drive discussions and support all activities across the product lifecycle.
The product vision and strategy, along with the evidence and data that are used for decision making, are shared with the entire organization and other areas such as customer support, marketing and sales have a clear understanding of how they can collaborate for the business success through the product.
Conclusion
Product Management has become an essential strategic discipline for product-centric companies. For the PM team to gain the necessary relevance, it is essential that product teams learn to explore customer feedback and behavioral data to guide, through evidence, the area's vision and strategy.
A maturity model can be a valuable tool to assess your organization’s performance across different pillars, identify gaps, and direct your team’s efforts toward meaningful improvements. Birdie’s Product Management Maturity Model is a simple framework that encompasses dimensions that can be used by Product leaders at any company.
Now that you know the different maturity levels, it's time to assess what stage of maturity you and your company are at. Increase the impact of the Product area in your company and download the product management maturity matrix!