Product Managers

FIGURE 2-10. Organizational chart.

Figure 2-10 shows that product management can operate horizontally as well as vertically. When a product is shown horizontally on the organizational chart, the implication is that the product line is not big enough to control its own resources full-time and therefore shares key functional resources. If the product line were large enough to control its own resources full-time, it would be shown as a separate division or a vertical line on the organization chart.

Also shown in Figure 2-10 is the remarkable fact that the project manager (or project engineer) is reporting to a marketing-type person. The reason is that technically oriented project leaders get too involved with the technical details of the project and lose sight of when and how to "kill" a project. Remember, most technical leaders have been trained in an academic rather than a business environment. Their commitment to success often does not take into account such important parameters as return on investment, profitability, competition, and marketability.

To alleviate these problems, project managers and project engineers, especially on R&D-type projects, are now reporting to marketing so that marketing input will be included in all R&D decisions because of the high costs incurred during R&D. Executives must exercise caution with regard to this structure in which both product and project managers report to the marketing function. The marketing executive could become the focal point of the entire organization, with the capability of building a very large empire.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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