Product Manager VS Product Owner’s Differences In Responsibilities, Hierarchy, and Salary

Summary

In this informative video, Dr. Nancy, a director product from doctornancy.com, explains the distinctions between product managers and product owners, focusing on hierarchy, responsibilities, and salary differences. She outlines the career progression and clarifies the varying titles across companies like Microsoft, Google, and Facebook. Dr. Nancy provides insights into the roles and responsibilities of each, emphasizing the product owner's focus on delivering value and the product manager's broader scope, including team leadership and business strategy. She also discusses salary expectations and offers advice on choosing between job offers, highlighting the importance of negotiation and company culture over salary alone.

Takeaways

• 📈 The hierarchy in product management roles typically goes from Product Owner to Product Manager and up to Chief Product Officer.
• 🔍 There's often confusion between the roles of Product Manager and Product Owner due to varying titles across companies.
• 🏢 Companies like Microsoft do not use the title 'Product Owner', whereas others like Google or Facebook do, indicating the need to understand the specific role within each company's context.
• 🛠 The Product Owner's role in agile development is critical, focusing on delivering the most value to the business and managing the product backlog.
• 📝 Product Owners have five main responsibilities including managing the product backlog, prioritizing user stories, managing product releases, managing stakeholder expectations, and leading the engineering team.
• 🚀 Product Managers have a broader scope of responsibilities, including setting the vision, managing the product roadmap, prioritizing features, managing business aspects, and handling both internal and external stakeholders.
• 💰 The salary difference between Product Managers and Product Owners is not significant, but Product Managers generally earn about 10% more.
• 💼 The base salary for a Product Manager in the San Francisco area is around $140,000 per year, while a Product Owner's base salary is about $127,000 per year, excluding stock options and equity.
• 📈 Stock options can significantly increase the total compensation, especially at big tech companies like Google and Amazon.
• 🤝 When choosing between offers, consider the role's potential for growth, team culture, and product alignment rather than just the salary.
• 📚 Dr. Nancy provides resources such as a salary cheat sheet and webinars to help aspiring product managers and product owners understand their career paths and negotiate better offers.

Q & A

What is the main topic of the video?

The main topic of the video is to explain the differences between the roles of a product manager and a product owner, including hierarchy, responsibilities, and salary differences.

Who is the speaker in the video?

The speaker in the video is Dr. Nancy, a director product from doctornancy.com who helps people transition to product management roles.

What is the significance of the title 'Product Owner' in the hierarchy of product management roles?

The title 'Product Owner' is typically at the lower end of the hierarchy, with roles like Product Manager, Senior Product Manager, and Chief Product Officer above it.

According to the video, how does the title 'Product Owner' vary across different companies?

The title 'Product Owner' can vary significantly across companies. For instance, Microsoft does not use this title, while Google or Facebook might use it for similar roles that Microsoft would call a Product Manager.

What are the key responsibilities of a Product Owner in the Agile development process?

Key responsibilities of a Product Owner include managing the product backlog, prioritizing user stories, managing the release of product features, managing stakeholder expectations, and leading the engineering team to execute on the product vision.

What are the five main responsibilities of a Product Manager as outlined in the video?

The five main responsibilities of a Product Manager are: defining the why, what, and when to launch a product; managing the product roadmap; prioritizing product features and user stories; managing a wider business aspect of product management; and managing both internal and external stakeholders.

How does the video suggest one should approach a job offer as a Product Owner versus a Product Manager?

The video suggests that one should not focus on the salary differences as a deal breaker but rather on how to negotiate a higher salary and getting a better offer in a good company. It also recommends considering the Product Owner role as an entry-level position to product management career paths.

What is the general salary difference between a Product Manager and a Product Owner according to the video?

The video states that Product Managers generally earn about 10% more than Product Owners, with specific examples given for the San Francisco area.

What additional compensation can be expected beyond the base salary for these roles, as mentioned in the video?

In addition to the base salary, compensation can include stock options and equity, which can significantly increase total earnings, especially at large tech companies like Google and Amazon.

How can viewers learn more about becoming a Product Manager or Product Owner?

Viewers can subscribe to Dr. Nancy's channel, hit the bell button for notifications, and check out the linked videos and resources in the description for more information on career paths, salary details, and negotiation tips.

What is the role of the 'scrum master' in the Agile development process mentioned in the video?

While not the main focus of the video, the scrum master is one of the three key roles in the Agile development process, working closely with the Product Owner and developers to facilitate the process and remove any impediments.

Outlines

00:00

📚 Understanding Product Manager vs. Product Owner Roles

In this introductory paragraph, Nancy, a product management expert, introduces the topic of the video, which is to clarify the differences between the roles of product managers and product owners. She mentions her own background as a product manager and owner and highlights the confusion that arises from the varying job titles in different companies. Nancy outlines a methodology to understand the hierarchy differences, responsibilities, and salary disparities between the two roles. She also shares her excitement about returning from maternity leave and encourages viewers to subscribe for more insights on transitioning to a product management career.

05:02

🔍 Exploring the Differences in Hierarchy and Responsibilities

This paragraph delves into the hierarchical differences between product managers and product owners, with the product owner typically being at the lower end of the management career ladder. Nancy provides a general hierarchy of product management titles and explains that the titles can vary significantly between companies, such as Microsoft, Google, and Facebook. She emphasizes the importance of mastering the skills of a product owner to succeed in the role and progress in one's career. Nancy also discusses the specific responsibilities of a product owner within the agile development process, including managing the product backlog, prioritizing user stories, managing product releases, managing stakeholder expectations, and leading the engineering team to execute the product vision.

💼 Product Manager's Broader Scope of Responsibilities

In contrast to the product owner's role, the product manager is responsible for guiding a product to success by leading a cross-functional team and improving product features. Nancy lists five key responsibilities of a product manager: setting the vision and leading the team, managing the product roadmap, prioritizing product features and user stories, managing the wider business aspects of product management including sales, marketing, pricing, and market research, and managing both internal and external stakeholders. She also mentions that product managers may be responsible for customer demos and training sales and engineering teams, which is a role not typically assigned to product owners.

💰 Salary Differences and Offer Decision Factors

Nancy addresses the salary differences between product managers and product owners, noting that product managers generally earn about 10% more than product owners. She provides specific examples of base salaries for both roles in the San Francisco area and mentions that additional compensation can come in the form of stock options and equity, especially at large tech companies. Nancy advises viewers not to consider the salary difference as a deal breaker and instead focus on negotiating a better offer and choosing the right company. She also provides guidance on choosing between a product manager and product owner offer, suggesting that the product owner role can be an entry-level stepping stone to a product management career, while the product manager role may be preferable if the team culture and product align with one's interests.

Keywords

💡Product Manager

A product manager is responsible for guiding a product to success. They lead a cross-functional team to improve and launch product features, set the vision for the product, and manage the roadmap from concept to execution. In the video, the product manager role is described as having a broader scope of responsibilities compared to the product owner, including working with sales and marketing teams and conducting market research.

💡Product Owner

A product owner is a role within the agile product development process, responsible for maximizing the value of the product by managing the product backlog and stakeholder needs. They work closely with the development team and prioritize user stories. The video explains that product owners are often at the entry level of the product management hierarchy and their responsibilities focus on delivering product features through the end-to-end process.

💡Agile

Agile is a methodology in software development that emphasizes iterative progress, collaboration, and flexibility. The product owner role is specifically mentioned as part of the agile product development process, alongside the scrum master and developers. The video highlights how product owners operate within this framework to deliver value and ensure product quality.

💡Hierarchy

Hierarchy refers to the organizational structure and ranking of roles within a company. In the video, the hierarchy of product management roles is discussed, with the product owner typically being lower in the hierarchy compared to the product manager. This hierarchy can affect responsibilities, decision-making authority, and salary.

💡Responsibilities

Responsibilities refer to the specific duties and tasks associated with a role. The video outlines the different responsibilities of product managers and product owners, noting that product managers have broader responsibilities, including setting product vision, managing the product roadmap, and collaborating with sales and marketing teams. In contrast, product owners focus more on managing the product backlog and ensuring timely delivery of product features.

💡Salary

Salary is the compensation received for performing a job. The video compares the salaries of product managers and product owners, noting that product managers generally earn about 10% more than product owners. Specific examples are given, such as the base salary for a product manager in the San Francisco area being around $140,000 per year, compared to $127,000 for a product owner.

💡Product Backlog

The product backlog is a prioritized list of tasks and features to be developed for a product. Managed by the product owner, the backlog is a key component of the agile development process. The video explains that one of the primary responsibilities of a product owner is to manage this backlog and prioritize user stories to ensure the development team is working on the most important tasks.

💡Stakeholders

Stakeholders are individuals or groups with an interest in the outcome of a project. Both product managers and product owners must manage stakeholder expectations, but product managers typically deal with a wider range of stakeholders, including customers, sales teams, and marketing departments. The video emphasizes the importance of maintaining good relationships with stakeholders to ensure product success.

💡User Stories

User stories are short descriptions of a feature or function from the perspective of an end-user. In agile development, they help to prioritize and plan development work. The video mentions that product owners are responsible for prioritizing user stories within the product backlog to ensure the development team focuses on the most valuable tasks.

💡Product Vision

Product vision is a strategic concept that outlines the long-term direction and goals for a product. The video describes how product managers are responsible for setting and communicating the product vision, guiding the team towards achieving it, and ensuring alignment with the overall business strategy. This vision helps to inspire and direct the work of the development team.

Highlights

Differences between product managers and product owners are discussed in terms of hierarchy, responsibilities, and salary.

Product owner is typically at a lower level in the management hierarchy compared to a product manager.

Some companies merge the roles of product manager and product owner under the title 'product owner'.

Product managers are expected to master the skills of a product owner to succeed in their career.

The video provides a detailed career path for product managers from entry-level to chief product officer.

Product owners have specific responsibilities within the agile development process, including managing the product backlog and stakeholders' needs.

Product managers have a broader scope of responsibilities, including guiding a product to success and managing the product roadmap.

Product managers work with sales, marketing, and other teams to launch and sell the product, a role not typically assigned to product owners.

Salary differences between product managers and product owners are not significant, with product managers generally earning about 10% more.

In the San Francisco area, the base salary for a product manager is around $140,000 per year, compared to $127,000 for a product owner.

Stock options and equity can significantly increase the total compensation, especially at large tech companies.

Salary should not be the sole deciding factor when choosing between a product manager and product owner role.

Negotiation skills are crucial for securing a higher salary and better offer, regardless of the role.

For entry-level positions, a product owner role can be an excellent starting point for a career in product management.

The video offers a free webinar on how to land a product management job and an accelerator program for aspiring product managers.

The speaker, Dr. Nancy, provides actionable advice for aspiring product managers and owners on packaging their experience.

The video concludes with an invitation for viewers to engage with the content by liking, commenting, and subscribing.

Transcripts

hi i'm nancy what do you do for work i

am a product manager i am a product

owner

[Music]

you must have seen the job openings

between product managers and product

owner you're quite confused what are the

differences between those two roles and

which offer should you choose

in this video i'm going to share with

you what are the differences between

product managers and product owners in

terms of the hierarchy responsibilities

and the salary differences make sure to

stay until the end of this video i'm

going to share with you the secret

salary differences between these two

rows and it's also the first video i

filmed since i'm returning from the

maternity leave i'm very excited to come

back let's get started

[Music]

hey guys this is doctor city a director

product from doctornancy.com

i help people transition from worker bee

to product manager and business leader

if you want to learn the most effective

way to become a product manager please

subscribe to channel hit the bell button

so be notified every time i post a new

video every wednesday recently a loss of

student life got offers as product

manager and product owner they use the

following methodology to understand

their differences and help them to make

decisions on which offer to accept step

number one you need to understand the

hierarchy differences between product

manager and product owner generally

speaking product owner is at the end of

the totem pole

if you line up all the different titles

of the management career

it looks like this product owner put a

manager senior product manager

group product manager direct product vp

of product or chief product officer if a

company gives you a title as product

owner and they also give another person

title as a product manager it's very

likely

product managers will manage the product

owner or mentor the product owners for

some companies they don't have

those two titles they merge both of them

into the same title which is product

owner in that case you need to play the

both role of plant owner and product

manager for your current company the

title in different companies are very

confusing let me give you some examples

it really varies based on each company

in microsoft

they do not have a product owner title

and their entry-level product manager

are considered as product manager

however the same type of people if you

get a job in google or facebook their

title will be as associated product

manager for some other companies if your

entry-level product manager they might

give you a title as product owner

however those roles are very

transferable if you're a manager you

really need to master the skills as

owner in order to succeed in copper

america and continue climb up your

career ladder

if you want to understand the in-depth

description of different

career paths of product managers please

make sure to check out this video where

i describe in details what are the roles

and responsibilities and title

differences that's coming from the

entry-level product manager all the way

to the cheap product officer i'm going

to link the video in the description of

this video number two product owner and

product manager have different

responsibilities in general product

manager has a bigger scope of

responsibility their differences are

mainly laid within

three aspects they are the size of the

team the scope of work and the business

impact now let's learn about the

responsibilities as a product owner

product owner is a term that's invented

in the agile product management

development process in the agile process

there are three key people product owner

scrum master and the developers they are

inside of the golden triangle and their

relationship is very critical with each

other it is the responsibility of the

product owner to ensure that they are

delivering the most value the business

is represented by the product owner who

tells developers what is important to

deliver and the trust between these two

parties are very critical and there are

five different kind of responsibilities

that per owners need to do number one

manage product backlog and stakeholders

needs put a backlog in specific term

inside of the scrum and the spring

process you can learn more about the

agile product development in my upcoming

video number two product owner

prioritize user stories instagram number

three product owners manage the release

of product features through the

end-to-end process to make sure it's

delivered on time and on quality number

four product owner manage the

stakeholder expectations number five pro

owner leads the engineering team to

execute on the product vision on the

other hand the product manager is

responsible for guiding a product to

success they lead a cross-functional

team that works on a product and improve

its features product managers also have

the following five responsibilities

number one the manager disguise the why

and what and when to launch a product

from concept to execution

they set the vision of the team and lead

the whole team to execute on the grand

vision number two product manager manage

the product role map from success

product launch so the mainly responsible

for understanding the concept and

involving with the business and

technical part until the end to end

product

launch and bring it to the hands of

customers number three product manager

also prioritize product features and

user stories this is very similar

responsibilities as a product owner

number four product manager manage a

much wider business aspect of product

management for example product manager

will work with sales and marketing team

to launch and sell the product it will

also design the pricing model business

model it will also conduct market

research and competitive analysis number

five product manager manage both the

internal and external stakeholders

especially from the external stakeholder

aspect product managers are responsible

for managing the relationship with

customers maybe do some

customer demos and also train the sales

and engineering team to sell the product

to customers this is mainly lacking in

the product owner's responsibilities by

now you must be excited about the

product owners and per management role

if you want to know how to best package

your prior experience and turn into a

product manager and pro owner resume

feel free to

the downl sheet in the description of

this video

number three let's also talk about money

the salary differences between product

owner and product manager is not

significant but it's very obvious per

manager in general are getting paid

about 10 higher than the product owner

which is very similar to what i

described earlier that product owner is

an old lower part of totem pool compared

with the product manager let me give you

some specific examples if you look up

the general product manager salary in

san francisco area the manager base

salary is about 140 000 dollars per year

and the product owner's base area is

about 127 thousand dollars per year and

this salary doesn't include the stake

the stock options and equity to be

honest if you work for google and amazon

those big tech companies the stock

option is going to make sure your salary

is going to double or go through the

roof as a parameter sometimes your

salary can go all the way up to half

million dollars i made a specific video

telling you the detailed examples what

absolute differences

at different levels of product

management and what the differences

between different locations and

different companies in terms of fan

companies and the startup unicorn feel

free to check out this video and

download the salary cheat sheet in the

description of the video

now let's also think about which offer

would you choose if you get both per

manager and product owner offer here's

the thing i wouldn't see the big salary

differences as a deal breaker because if

i were you i would focus on how can i

negotiate higher salary and getting a

better offer in better company i

published many negotiation videos you

can check out those videos right here

which helps hundreds per manager to get

higher salaries over there now if you

have both offers i would really take

consider product owner as an entry level

to plan management career paths if

you're able to land the product manager

title with very good team culture and

you love the kind of product you're

going to build i will definitely take

the product manager offer of course

product owner offer is also something i

highly recommend for the entry-level

product management positions so that you

can kick off your product management

career very quickly if you have made the

decision to become a product manager or

product owner you should check out this

free webinar where i teach you how to

land a product managed job very quickly

and on top of that learn about the

product manager accelerator where i have

helped hundreds supply managers to land

their dream job in the tech industry i'm

going to link the webinar in the

description of this video if you want to

continue to inspire more managers please

make sure to like and comment on this

video so that more aspiring product

manager will be able to hear about this

organic content this is dr nancy i'm

going to see you next time bye

[Music]

you