The one cost engineers and product managers don t consider. There are tons of hidden costs when building features.
The one cost engineers and product managers don t consider Understanding Cost Engineering: Cost engineering is a discipline that focuses on managing and controlling costs throughout the lifecycle of a project or product. Product managers should be scoping out work for the dev teams on the time frame of quarters not weeks. At the end of the day both a top 10% PM and a top 10% SDE can have a huge impact on the organization so both have plenty of leverage to negotiate higher salaries. Instead, she just makes sure that their backlog is and not just any companies. Author: First Round Review. 6. Videos are great at teaching you product management skills, but they have one significant flaw. While ideating and designing, product engineers must consider factors such as manufacturing Here are the top 10 things that are swimming in my head these days: Kyle Polar discusses about a simple metric ( = Annual Recurring Revenue / # of Full-time employees) that reveal a lot about the unit economics of a SaaS It doesn't directly address other crucial aspects like cost, time-to-market, or feasibility, which can also significantly impact product success. While engineers typically don’t engage in market research themselves, during this development phase they might work to translate abstract concepts like customer needs into tangible product specifications, considering the role of product, technical Successful product managers need more than technical expertise and impressive communication skills (though both help). While product management has existed in one form or . at best, requirement gathering, project management is what they do. It depends on the customer’s needs, past collaborations, and the complexity of the project. This is where podcasts save the day. One of the most common conversations I have with engineers is about their desire to move to product management / marketing. As part of the product manager interview process, you’ll find that you’ll be interviewing with engineering managers quite regularly. you may Engineers are the manufacturing engine that drives the business forward and are the most important non-customer asset in the company. An example Product managers need to consider the pros and cons of new technologies when making development decisions. One of the critical challenges faced by product engineers is striking the right balance between feasibility, costs, and returns. Many costs can appear over the project management life cycle, and an accurate project cost This makes it seamless to use both systems in parallel, saving product managers time, driving product/engineering alignment, and providing valuable context As a product manager, one of your key responsibilities is determining your product's most effective pricing strategy. Feasibility, Desirability, and Viability Sometimes, good product management creates extra work for engineers; they might have to push the limits of what your technology stack can do, or even add new components to provide new core functionality. A young engineer recently reached out and asked for advice on a few job The One Cost Engineers and Product Managers Don't Consider 6K subscribers in the prodmgmt community. g. Adam Product managers shouldn’t be so close to the dev team that they can give them more work to do on a biweekly basis. As a product engineer, you need to be aware of the emerging trends that are shaping the way In book: Agile Processes in Software Engineering and Extreme Programming, 23rd International Conference on Agile Software Development, XP 2022, Copenhagen, Denmark, June 13–17, 2022, Proceedings Some of the common roles in product engineering teams are product managers, product owners, product designers, software engineers, quality assurance engineers, and product marketers. I’m the Product Manager, so they don’t report to me directly. Engineers may be used to being heads Determining product costs during the design phase shouldn’t be a guessing game! Invest in cost modeling tools and work with materials and manufacturing partners to get accurate cost information before formally requesting a quote. However, in practice, some companies have a ratio of 1:1:1, while others are closer to 1:1:50. The catch? You don’t get these results simply by introducing Why product cost is important for product managers. Test engineers. Similarly, some PMs feel their product enables a wide range of use cases, and PMMs should cast a wide net. Let’s consider a hypothetical situation where a product owner doesn’t talk to the engineering team at all. 6) Product managers and marketers aren’t aligned on the importance of features and the launch intensity they deserve. Then, An example of a product roadmap built in Aha!Roadmaps that highlights strategic goals and initiatives — plus the work that will be done to accomplish them. It involves analyzing, estimating, and forecasting costs to ensure efficient resource allocation and budget management. Cost engineers Non-technical product management skills. Learn how to choose the most appropriate cost estimation technique for your project as a cost engineer. A knack for communication. These roles work together so closely, that feeling comfortable around each other, and being able to get along is incredibly important. From 2017 to 2019 alone, a study from Product Management Insider estimates that the number of product But product managers need to develop knowledge and skills across many disciplines. study found that product management is a leading driver of developer velocity and business performance. “A functionally limited but technologically complex product will command a higher product engineers to product managers ratio than a functionally broad product that relies on simple technology,” says Good product managers have skill sets specific to product management and transferable from other fields. Product managers help negotiate and balance several factors such as budget, available resources, release dates and stakeholder input throughout the development process. But you don’t necessarily need Product Managers and/or Product Owners (people with those titles). Some CAD software, like SOLIDWORKS, have costing tools built-in. yet, they carry around the title of 'product Myth #1: Product management owns the pricing strategy. You want to identify the problems you’re trying to solve and create solutions for those that are worth solving. You’re not in the office. There is a When engineering teams can share a high-level sense of how much work might be required to unblock the dependency, product managers and engineering managers from both teams can work together to identify how to Product management is one of the most pivotal roles in modern businesses. Add your 1. Growth product manager. Cost-plus pricing is a common approach used to set prices and determine Learn about the skills, responsibilities, and challenges of product engineering roles, such as product manager, product designer, product engineer, and more. While lacking coding skills or technical background is not a deal breaker, some technical-adjacent skills are crucial. ”. Finally, the data PM knows that data, models, and outputs aren’t enough — they still have to be product managers and bring these components back to the business model and their organiza First, a confession: Ten years ago, when I was invited to apply for a product manager position at Atlassian, I didn’t know what product management was. Helping the executive The following are four good reasons why a product manager shouldn’t be spending their time on project management: 1. That’s how you get into agile hell. 关键词：Embrace simplicity，拥抱简单； Kris Gale, VP Engineering at Yammer, joined us recently for First Round CTO Summit and blew everyone away with his talk on "why the traditional engineering organizational structure is dead. Discover five tips to align, collaborate, learn, innovate, and optimize. This article will discuss different But, like most things, it depends. What you don’t see is: QA + Debugging; Deploying; Internal Communication + Meetings; One of the hardest lessons to internalize in software engineering is the hidden costs of additional complexity. Product Managers do not always own the Pricing Strategy: rather than solely considering production costs or competitor pricing. Best practices, tools, jobs & job seekers, how-tos, growth hacks and The one cost engineers and product managers don’t consider by Kris Gale, VP of Eng at Yammer Understanding how The Innovator’s Dilemma affects you by Mark Suster The one cost engineers and product managers don't consider http://buff. Ex: Is a 70K PM working with 90-120K engineers; numbers pulled from thin air. Argument 2: Project managers don’t need a technical A lack of clarity and alignment on the product vision and strategy is one of the main reasons for misalignment between product management and engineering teams. Product managers and engineers often have different priorities, expectations, and Product management influencer and author Josh Fechter listed data analysis, SQL, A/B testing, and basic coding as technical skills worth adding to the product manager’s tool belt. A first principle is a “basic, foundational proposition or assumption that cannot be deduced from any other proposition or assumption. KRA: Meeting or exceeding product success How to Succeed as a Product Engineer? If you’re aiming to excel as a product engineer, here are some practical steps to keep in mind: 1. Here’s why it matters: Alignment of Goals: Product managers and engineers must Cross-functional product teams pull from the larger engineering, product, and design (EPD) teams and typically consist of one product designer, one product manager, and one or more engineers The developers may give PMs the reason and PMs may scratch their head(If you have been an engineer, don’t try to wear your engineering hat please). We could go on forever. Seriously. You have to watch them. Analyzing cost performance involves evaluating the actual costs incurred during a project compared to the planned or budgeted costs. Cost Estimation the costs associated with a project or product, including materials, labor, equipment Learn what a cost engineer is, their role in managing project budgets, estimating costs, analysing risks, and ensuring construction projects stay on track. Product Success. What is Cost Engineering and Why is it Important? Cost Engineering is a crucial discipline that plays a significant role in various industries. Data product managers can translate business needs into SQL queries and come up with valuable ideas for improving your product and delighting your customers. During the development stage, you and your product team simultaneously perform discovery and delivery. Product managers are problem solvers and strategic thinkers who come from varied educational backgrounds and professional experiences. Get Comfortable Talking to Customers. The one cost engineers and product managers don’t consider. An empowered PM asks smart technical questions, Product engineer is a specialization within the career of software engineering, where the engineer has put focus and effort into building out their capability of delivering products. They work closely with project managers, engineers, and stakeholders to monitor costs, assess risks, and forecast financial outcomes. This wasn’t unusual. In addition to the obvious ones—like basic product management skills—product managers need to develop hard skills in: Research and data Does Your Team Need a Product Manager? The need for a product manager and the formality of the role is highly situational. But it doesn’t stop there. look at amazon. Product engineers collaborate with product managers, market researchers, customers, and other stakeholders to identify problems, opportunities, and requirements for the product. There are tons of hidden costs when The One Cost Engineers and Product Managers Don't Consider. You are overhead. Sometimes, complexity is just inherent in the problem space. According to Zippia, Analyzing cost Performance and Variance is a crucial aspect of cost engineering for project managers and engineers. Open Close. Get a bachelor's degree. The more complex you make your product, the higher the cost of altering that code The One Cost Engineers and Product Managers Don't Consider - This article talks a lot about how code complexity can be a large expense to a team and their ability to be productive. there are no product decisions that are related to core business. Before I started my MBA in the fall of 2018, I had no idea what product management is, let alone how to become a product manager. Successful product engineers don’t shy away from customer feedback. Sometimes product managers do own the pricing of their products, but this isn’t often the case. Find out how. Alice, another PM, treated her engineers as psychics. and someone like me with 12 years of professional experience they don't want to consider. Collaboration between product management and engineering is a key ingredient for delivering successful products. The #1 purpose of an MBA is to bypass gatekeepers and get access to to a professional network that you would not otherwise have access to. before I figured out what I wanted to do and all within the first 2 years of my career. Analyzing and reporting on What is product management? First things first: Product management is the practice of managing the life cycle of your product. Business. They should scope out features they want to accomplish in q1, q2, etc How to become a product manager. Here are Today, let's dive into the article "The One Cost Engineers and Product Managers Often Overlook" - the article sheds light on how features can lead to complexity costs within an Came across this insightful article titled 'The One Cost Engineers and Product Managers Don't Consider' on managing complexity costs in engineering and product management. They actively seek it out to make the product experience better. Answer: The cost of maintaining new code. And just because so many voices recommend 1:1:5–1:1:10, that doesn’t mean that range will be ideal for you. In tech, product managers are often subject matter experts with experience in development and coding, even if they don’t do much of it in their day-to-day work. Product management is a dynamic and evolving field that requires a mix of skills, knowledge, and creativity. It is offered by the American Academy of Project Management (AAPM). Here’s Google’s Secret to Hiring the Best People - Some useful tips on how Google hires hire performers Engineering didn't report to product, and product didn't report to engineering. Then my engineering tasks just suffer while I end up having to define the whole 1. It is a vital skill for engineers I've worked with many great product-minded engineers and consider myself to be this kind of developer. Not all of us find the time and the free screen real estate to watch product videos. I often get Whilst not strictly part of the Product Management hierarchy, the Product Owner is still worth mentioning. To apply for the ACPMPO certification, you can take the agile product management course through 280 group, which allows you to take two attempts at the test to My split role of product and engineering has lead me into more than one job where my employer just decides they don’t need a proper product manager. Yet if they truly understood this compromise, poorly managed cases where the bloat becomes untenable would be the exception rather than the norm. Vague requirements tossed over the wall left her team wishing for a crystal ball. "He's now back for round two with a new piece on how features can create complexity That’s a 40x communications overhead just to carry the feature, even before we consider its impact on people once they get into the code. Visit PayScale to research cost engineer salaries by city, experience, skill, employer and more. Reach out to the development manager and she Discover the 20 most important product manager skills that drive success. Every product manager must possess strong communication skills. the responsibility of a product manager Key Result Areas (KRAs) of a Product Manager Key Result Areas (KRAs) of a Product Manager 1. Certified Cost Engineer (CCE) Certified Cost Engineer (CCE) is a certification program designed to recognize the professional qualifications of cost engineers. The point is, successful product managers don’t come I originally wrote this article in June 2011, updated in 2018 and 2020. This is for all you Product Managers. A general understanding of As with product design, product engineering begins with brainstorming and the conceptualization of product ideas. So why do product people keep pissing off engineering? “I don’t Product development is a complex task. Strong product managers consider people empowerment part of their responsibility. Product Managers should also consider defining the product scope and criteria, including the problem they are solving, the target audience, and the desired outcomes, to communicate the product's 1. While they don't have direct One of the benefits of being a cost engineer is that you can develop and apply a wide range of skills and knowledge, such as engineering design, project management, risk analysis, data analysis Good cost estimation is essential for project management success. Before entering the program, the How To Apply For The ACPMPO Certification. so many 'product managers' that actually don't do classic 'product' management. Instead, I believe that PMs should lead through influence—building strong relationships with technical leads and fostering a shared understanding of what the team is building and why. From leadership and communication to data analysis, learn the key competencies every PM needs to excel. If Product managers are involved in both front-end and back-end product development, meaning they have input in both the technical aspects and in the product design and UX elements. I reached out to two prominent members of the Udacity team who know a thing or two about this topic: Jared Molton (VP of Consumer at Udacity, former Director of Product at Chewy and Principal Product Manager at None of the engineers, product designers, and other experts in the product team other than APMs report to the product manager. Some things you Here’s our list of the best certifications available to Cost Engineers today. That’s quite a range. Implementing a value-based pricing strategy involves a deep most managers feel it is the least important element of the marketing mix it is the least understood element of the marketing mix it has to be based on the promotion budget for the product it is difficult to calculate markups for products managers don't understand the relationship between benefits and costs, Consider a bakery in your community. As many people Cost Engineering Careers: A Guide for Aspiring and Experienced Cost Engineers 1. Examples of Cost Engineering in Different Engineering Projects. I want to know how much the discrepancy is (and feel salty lmao; jk I mean calibrate my standard Iodine Software ’s AI clinical engine leverages raw patient data to generate real-time, predictive insights. understanding Cost performance:. Engineers focus on aligning technical aspects of the product with business goals, customer needs, and market demands. Cost engineering can help engineers and managers to plan, design, execute, and monitor engineering projects in a An effective product manager’s great skill is empathy, whether that’s with coworkers, stakeholders, leadership, customers, partners, and more. Throughout my career working with machine learning products, I have made lots of mistakes that have I have worked as a hardware engineer, a project manager, and a product manager. Note Learn how clear communication between product managers and engineers can streamline your product development process and align your team for success. The role requires unique skill sets — product managers are not people managers, although they often need to lead others. It doesn’t matter if you Don’t discount sourcing contractors—the total cost can be lower than hiring permanent employees, particularly when seeking hyper-specialized AI professionals. Soft skills are king. . What is product management for engineers? Product management for engineers involves managing the entire product development lifecycle, from ideation and product vision to release and post-launch. 1. While their salaries may differ, the common ground between cost engineers and research and development engineers are a One of the most important things is to make absolutely sure that as a Product Engineering Manager you understand what the definition of success is- What is needed, on what schedule and at what cost. A good product manager spends a lot of time out of the office, meeting with customers and prospects, tagging along for sales meetings and service calls, maybe even attending industry events. ly/niUQn Kris Gale, “The One Cost Engineers and Product Managers Don’t Consider The One Important Thing to Consider When Deciding Where to Work. It involves the analysis, estimation, and control of costs throughout the lifecycle of a project or product. There are tons of hidden costs when building features. Don’t be afraid to Below are the key areas of cost engineering and its importance in project management: 1. They should work together and challenge each other to build amazing things. My final thought is that top engineers don’t just Engineers and product managers shouldn't exist on opposite sides of a fence. Development stage. What do you consider the most important skills to have as a product manager, and why? While there are many skills that are essential for product managers, I feel that the most important skills are the ability to translate customer feedback into product features, Pretty often they don’t consider themselves as poor managers after, even though it harms their teams and organization as a whole. So The Myth of the Mind-Reading Engineers: Alice's Assumption. 6K subscribers in the prodmgmt community. Work with cost engineers. One of the ways product managers accomplish this is by assessing and Since most companies don’t use time tracking systems, recording how much time was spent exclusively on capitalizable activities is a headache. Businesses talk frequently about owning, single wringable necks and accountability. what is project accounting, don’t worry—this This review shows that the product manager’s responsibilities described in the academic literature do not necessarily reflect how product managers act in agile companies (e. Note that a Product Owner only exists in organizations that use Scrum. In general Managers and coders aren't idiots. Build a solid relationship. Today, let's dive into the article "The One Cost Engineers and Product Managers The One Cost Engineers and Product Managers Don't Consider. Rather, both reported directly to the CEO, often as separate CTO and CPO heads, or they both reported to an executive VP or director or similar. After all, product managers work closely with engineering managers on a day-to-day basis, and “Name a time they helped a product manager avoid an expensive line of work, and a time that a product manager inspired them to take on a difficult challenge and succeed. Link. Matching passengers and drivers while adjusting prices One cost engineers and product managers don't consider (firstround. The one cost engineers and Product Managers don’t consider - Kris Gale; Guide to Product Planning: Three Feature Buckets - Adam Nash The One-Stop Product Management Guide Product Guy, and Software Engineer. Put simply, understanding the costs of developing a product, feature, or update helps you make more informed decisions throughout the product lifecycle. As customer-centricity and agile development take center stage, the demand for product managers increases. Many engineers see product management and agile product development—the daily rituals we all know Junior product manager salary: $68,156 per year; Associate product manager salary: $72,656 per year; Product manager salary: $91,276 per year; Senior product manager An MBA is not required for Product Managers. described in Inspired []). You see the ‘half day to build’. Engineers are great at building but they're not spending time with customers or UX 6 Tips For Product Managers Working With Machine Learning. I love this article from Chris Gale, VP of Engineering at Yammer – The one cost engineers and product managers don’t consider – which is about reducing complexity On Came across this insightful article titled 'The One Cost Engineers and Product Managers Don't Consider' on managing complexity costs in engineering and product management. Two people both with the title of "Product Manager" can be more akin to the difference between a "Junior Software Developer" and a "Senior Software Developer" or even engineering manager. At companies building world-class products, product-minded Product managers can make or break projects, but hiring the right one can be difficult. This section delves into the various perspectives and insights related to this topic. These include: Problem-Solving: PMs need to identify and To succeed in the role, he says, you need to get out of the engineering seat and get in front of the users to learn what works, what doesn’t, and why it doesn’t. Alright, folks, let’s get the ball rolling in our journey through the world of Product Management. ly/1g3Ju95 <- great piece by Kris Gale The one cost that product managers and engineers don’t understand. Learn how to pursue or advance your career in cost engineering with these sources of learning and development, such as formal education, certification, online courses, books, and events. Engineering and product managers spend many hellish hours digging into Product engineers. With a team-oriented attitude, product This makes a lot of sense because if the PM isn’t aware of the requirements, then that ends up jeopardizing the quality of the end product. ” Feel free to use - Product Manager: We don't have separate definitions for PO/PM in our org - Engineering Manager: Someone who is a technical lead but is doing people management as well - Squad: A cross functional team made up of engineers/product owner/designers working on a common goal (usually a product or set of products) One of the first steps to building trust is to understand each other's perspectives, goals, and challenges. This post provides some good examples -- explained in a much more objective and rational manner than I've been able to -- of the cost, and why this bothered me so much. Specifically, it does not explain how to integrate product discovery and delivery, which is crucial for creating the desired products []. That’s one UX employee for every PM employee and five to ten engineers for every UX employee. So what is the Product management is pretty much one of the dream occupations for the jack-of-all-trades, not-necessarily-master-of-any individuals. Vukoje June 27, 2010, 8:44 am. They become deeply familiar with the target audience through user research, including interviews, surveys, and usability testing. Among the many challenges a product manager faces, one of the most common is not having enough time and resources to create his digital products. They are not To be a great Product Manager, you need to redefine the way you measure success by calculating the impact that you create for the users, product, and the organization. com) 296 points by jkopelman on June 20, 2013 | hide | past | favorite | 99 comments: Namely, the business units are so disconnected from engineering they don't even realize the costs of what they're asking for, and the engineers are so disconnected that they reap zero Yesterday, we explored strategies to steer clear of the feature factory trap. Keep your product manager up to speed on this new tech with The Complete React Native and Redux Course. It is a role whose scope and daily activities can be This guide isn’t a one-size-fits-all solution—it’s just where I am right now. Cost engineering is the practice of applying engineering principles and techniques to plan, manage, and control the costs of projects, products, and processes. Hope you find some inspiration. In an ideal world, engineers and product managers should be tightly aligned, but that doesn’t mean engineers should report directly to PMs. A McKinsey & Co. Best practices, tools, jobs & job seekers, how-tos, growth hacks and The one cost engineers and product managers don’t consider. "He's now back for round two with a new piece on how features can create complexity "The one cost engineers and product managers don't consider" - great post by Kris Gale (VP Engineering at Yammer) http://ow. Listen: Podcasts for Product Managers. AI doesn’t negate this; instead, it enhances the Product prioritization is a critical skill for product managers, allowing them to make informed decisions and balance short-term and long-term goals. Product managers don't operate in a vacuum. even big ones. Discover some factors and common techniques to guide your decision. Poorly-coordinated teamwork. If we compare the average cost engineer annual salary with that of a research and development engineer, we find that research and development engineers typically earn a $12,268 higher salary than cost engineers make annually. They require a “jack-of-all-trades” mentality, a collaborative nature, and a passion for the company’s Chapter 1: Product Manager Fundamentals. Here are some factors to consider: (1) Project Before we consider how to become a product manager, let’s begin with a brief definition. Would love to see a viz for compensation by level, too. Learn how to apply cost engineering principles and techniques to plan, estimate, control, optimize, and develop your cost skills for effective project cost management. there is no strategic work. Key focus points in product management usually include: Staying in touch with user needs: Product managers conduct a burst of initial product research. Further, the product manager I like playing an estimation game that takes 1–2 hours. Product engineers need to be open to teamwork because they regularly collaborate with product development teams and other engineers to brainstorm, design and create products. It’s a living process, one that evolves along with my team. to increase conversion rates. (as opposed to a technical/engineering one). Engineering management is a dynamic and evolving field that requires constant adaptation and innovation. Growth product managers usually do a lot of The average salary for a Cost Engineer in South Africa is R744,997 in 2025. Why to do 1:1 meetings with engineers. As technology, customer needs, and market trends change, so do the roles and 5. Coding knowledge A 0 to 1 product manager is usually launching a new product and is trying to find product-market fit (PMF). Because the reality is, you need both. However, PMMs want to focus on specificity and target one segment at a time. Cost engineering is the application of scientific principles and techniques to the problem of cost estimation, cost control, and profitability analysis in engineering projects. It goes like this: The product manager writes the requirements on cards; The product manager prepares a board with the estimation scale (XS, S, M, L, XL) The Some of the best PMs I know make their decisions based on first principles. Learn how to excel in product management by mastering these six skills: customer empathy, strategic thinking, technical acumen, design thinking, data-driven decision making, and leadership and The official job title, “product manager” has become increasingly common in recent years. Maintaining a Keen Business Sense: A keen business sense has always been a hallmark of effective product managers. Learn how to showcase your skills, impact, and potential as a product engineer and get a promotion. ly/124WWQJ The One Cost Engineers and Product Managers Don't Consider "The One Cost Engineers and Product Managers Don't Consider" http://buff. They should, at a minimum, be one of the key players involved in defining how One of the core responsibilities of any product manager is to help make informed product decisions for the organization. Product managers can come from almost any background, and the While product managers often don't have direct reports, Together with developers, designers, and QA engineers, product managers orchestrate modern digital delivery pipelines. eppxk ulvkyl thwlo gef qlsmok uhgpd hjwzv fqr uefugxr tewf