There are 2 types of product management broadly - New Product and Existing products. For an existing product, the task of the product manager is to increase revenue, in a declining market share scenario arrest/protect the revenue from further decline. Find ways for cost reduction.

Is there a way to collectively look at the performance of the PM by looking at the aforementioned indicators and other metrics and condense them into a single composite variable or index of sorts.

Such that when one looks at the number, depending on the magnitude one can say the PM has done his job well, moderately well, or has performed poorly.

  • @MarkC.Wallace: Hello, i didn't source this from any particular literature. This is my understanding of what a product manager does from my experience. Broadly speaking what i want to know is "How to measure or quantify the value that a product manager brings to the table condensed in a single entity like an index or some KPI of similar standing". This is not part of any coursework or homework. I am not a student.
    – Raj
    Commented May 23, 2016 at 13:05
  • Aha! I have retracted my close vote and removed the spurious characters that suggested this was a quote.
    – MCW
    Commented May 23, 2016 at 13:15
  • No problem. Do you have any ideas though :) Would be helpful to hear some thoughts.
    – Raj
    Commented May 23, 2016 at 13:24

1 Answer 1


There are many ways to define the value added to a product. These include:

  • Revenue generated
  • Cost savings
  • Cost of not doing the work (e.g. if we don't do this work a security breach is possible that would damage the organisation)
  • Helps to reach the organisation's objectives (e.g. helps to extend market share, helps to enter a new market, helps patients, etc.)
  • Regulatory
  • Compliance

Each organisation will have their own definition of value that may be a combination of the factors listed above.

One metric might be the value (as defined by the organisation) added to the product over time. However Product Management does not work in isolation. A better metric would measure the overall effectiveness of the product team that includes both the Product Management and the Delivery Team.

I can imagine a metric for a product team might be: value added divided by the the cost of the team.

  • Thanks, i am assuming when you say value you mean the dollar amount here? Basically the sum of the individual elements that you have mentioned.
    – Raj
    Commented May 23, 2016 at 15:03
  • Value does not always translate in to a dollar amount. For example, say a company wants to expand into a different country. It may actually cost them money to do so, but the value is that it meets the company objectives. This is why the value for each organisation is different. How it is measured also varies. I have seen some organisations use 'value points'. Others just simply rate something as high/medium/low value. Commented May 23, 2016 at 15:17

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