What is the Difference Between a Product Manager and a Project Manager?

May 26, 2023 - 7 min read

Wrike Team

In business, the roles of product manager and project manager are often used interchangeably. However, they are distinct positions with different responsibilities, skill sets, and objectives. Understanding these contrasts can help organizations make more informed hiring decisions and improve their overall project management processes.

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Understanding the roles of product and project managers

A product manager is responsible for overseeing the development and management of a product from ideation to launch and beyond. They work closely with cross-functional teams, including designers, engineers, marketers, sales teams, and customer support teams, to ensure that the product meets customer needs and business objectives.

They must also identify market opportunities, conduct market research, set product strategy, define product requirements, and prioritize features. Furthermore, effective communication with stakeholders at all levels across the organization is vital to making decisions that are in the best interest of the business.

Product managers are also responsible for ensuring that the product is successful in the market. They need to keep track of the competition, analyze market trends and customer feedback, and make adjustments to the product strategy as needed. Developing effective go-to-market strategies via pricing, promotion, and distribution is also a must.

Defining a project manager

A project manager is responsible for overseeing a specific project from start to finish, ensuring that it’s completed on time, within budget, and to the satisfaction of stakeholders. They also work closely with cross-functional teams, including designers, engineers, and other specialists, to coordinate and manage the execution of the project plan.

A project manager must also succeed in establishing project milestones and timelines, assigning tasks, managing resources, identifying and mitigating risks, and communicating with stakeholders at all levels across the organization. Dealing with risks is especially important, as the contingency plans that they craft must keep in line with the project’s scope, timeline, and budget.

Project managers also need to be skilled at managing people. They must motivate and inspire their team members, provide guidance and support, and resolve conflicts and issues that arise during the project. Additionally, they must have excellent communication skills to keep all stakeholders informed about the project's progress, including any changes to the scope, timeline, or budget.

Key differences between product and project managers

Understanding the differences between these two important roles can help organizations determine which type of manager they need for a given project or initiative.

Scope of responsibilities

The primary difference between product and project managers is the scope of their responsibilities. While both roles involve managing cross-functional teams and collaborating with stakeholders, the product manager has a broader mandate. In addition to managing a specific project, they’re responsible for developing and executing a product strategy that meets customer needs and business objectives. This includes identifying market opportunities, conducting market research, and developing a roadmap for the product's development and launch.

On the other hand, the project manager is responsible for managing the execution of a specific project. This includes developing a project plan, coordinating the efforts of cross-functional teams, and ensuring that the project is completed on time and within budget. While the project manager may have input into the overall product strategy, their focus is primarily on the successful completion of the project.

Skill sets and expertise

The skill sets required for product and project management are also different. Product managers must have strong strategic thinking, market research, and product development skills. They need to identify market opportunities, develop a strategy, and bring a product to market successfully.

Project managers, on the other hand, must have strong planning, organization, and communication skills. They need to be able to manage complex projects, develop a project plan, and coordinate the efforts of cross-functional teams to ensure that the project is completed on time and within budget. In addition, they must be able to identify and mitigate risks and communicate effectively with stakeholders to ensure that everyone is aligned on project goals and timelines.

Goals and objectives

For product managers, the primary goal is to develop and launch a successful product that meets customer needs and business objectives. This requires making difficult decisions that are in the best interest of the product, even if that means delaying a launch or canceling a project. Also, they must be able to balance competing priorities and make tradeoffs that will ultimately result in a successful product.

As for project managers, the objective is to complete a project on time, within budget, and to the satisfaction of stakeholders. This calls for managing the project plan, identifying and mitigating risks, and communicating effectively with stakeholders to ensure that the project meets all requirements. Project managers must be able to balance competing priorities and make tradeoffs that will ultimately result in a successful project.

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Similarities between product and project managers

Both roles require strong leadership and communication skills. Product and project managers must be able to motivate teams, build consensus, and communicate effectively with stakeholders at all levels across the company. These skills are essential for managing cross-functional teams and ensuring that everyone is working toward a common goal.

Remember to tailor your communication style to different audiences, including executives, technical teams, and end-users.

Problem-solving and decision-making

Product and project managers should have a knack for problem-solving and decision-making. They must be able to identify problems and develop solutions that meet the needs of the business and its customers. Decisions need to be made quickly and effectively based on the available information and the business objectives.

Collaboration and teamwork

Finally, both product and project managers must be skilled at collaboration and teamwork. They must be able to work effectively with cross-functional teams to achieve their goals and bring a product to market successfully. They must be able to build consensus, work effectively with diverse stakeholders, and manage conflict effectively.

How product and project managers work together

Product and project managers play a critical role in the successful development and launch of a product. While the former is responsible for defining the product vision and strategy, the latter is tasked with developing a project plan and coordinating the efforts of cross-functional teams to bring the product to market successfully.

Effective communication between product and project managers is essential to ensure that the product is developed according to the product vision and strategy. The project manager must understand the product requirements and constraints and work with the cross-functional teams to deliver the product on time and within budget.

As for collaboration, the product manager must communicate the product vision and strategy to stakeholders, while the project manager manages stakeholder expectations regarding project timelines, budgets, and risks.

Balancing priorities and resources

Product and project managers must be able to balance priorities and resources effectively to achieve their goals. This involves allocating resources, managing budgets, and making decisions that are in the best interest of the business.

Product managers prioritize features and functionality based on customer needs, market trends, and business objectives; on the other hand, project managers allocate resources and manage budgets to deliver the product within the constraints of time, cost, and quality.

Navigating organizational structures

Product and project managers must be able to navigate organizational structures effectively. This involves communicating effectively with stakeholders at all levels across the organization and building consensus around their goals and objectives.

Product managers must work with cross-functional teams such as engineering, design, and marketing to keep everybody aligned with the product vision and strategy. Project managers must work with stakeholders from different departments to ensure that they're aware of project timelines, budgets, and risks. Essentially, the goal is to work together to create a coordinated, finalized product.

It’s important to know the differences

While product and project managers share some similarities, they are two distinct roles with different responsibilities, skill sets, and objectives. Understanding the differences between both can help organizations make more informed hiring decisions and improve their overall project management processes. By working closely together, product and project managers can ensure the successful development and launch of a product while managing risk, maximizing resources, and building consensus across the organization.

Looking for a smart way to manage projects? Wrike delivers efficiency and seamless collaboration for your team. Explore the benefits with a free trial.

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Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.

Wrike Team

Occasionally we write blog posts where multiple people contribute. Since our idea of having a gladiator arena where contributors would fight to the death to win total authorship wasn’t approved by HR, this was the compromise.

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Project Management 10 min read

How to Effectively Run Construction Management Projects

In our exhaustive guide to construction project management, you’ll find construction management basics, tips and tricks to ensure consistent success, and the tools you’ll need along the way.

Project Management 10 min read

Everything You Need to Know About Rough Order of Magnitude (ROM) Estimates

A rough order of magnitude estimate, also known as ROM, is an estimation of a project’s level of effort and cost to complete. ROM estimates take place early in a project life cycle and guide strategy and planning choices. In this article, you’ll learn more about ROM estimates and how they are used in project management. Plus, keep reading to discover examples and how Wrike could be used to assist in creating a template for your own rough order of magnitude. What is the rough order of magnitude? A rough order of magnitude estimate is a general estimate of a project's level of effort and cost. It's usually performed during the selection and approval stage of a project. Generally, it’s used for estimating a project budget that doesn’t have a lot of detail. Project estimating is a vital aspect of project management because it helps determine the total budget for the project and whether or not it’s feasible companywide. It also helps keep track of the project's milestones and budget at the very beginning (more on that later). A rough order of magnitude is most commonly used for project screening. ROM is typically meant to be given to executives who need a high-level overview of how much work might cost. This is especially helpful when they don’t yet have the mandate to do a deep dive into the scope and requirements of the work. Comparing the ROMs of different projects helps identify which projects should be prioritized and which ones should be shelved. It can also help uncover and prevent scope creep later on. This tool also helps decision-makers at other levels of the organization make informed choices regarding the project's complexity and costs. That information is critical for proper scope planning before project kickoff. It’s important to know that a ROM estimate is often used for information purposes at the beginning of a project and it’s suitable for use for the lifetime of the project. How to make a rough order of magnitude estimate Estimating a ROM is often thought of as an art. They are quick to make, but the trick is learning how to make them well. Those who are more experienced in coming up with these estimates may have their own way of executing this process. Regardless of how well you understand the rough order of magnitude, it is important to consider the various factors involved in developing one. These include: A guesstimate range of what resources the project will require based on the information you have on hand Opinions from experts and/or higher-ups who hold a stake in the project A variance of at least -25% to +75% Keep in mind that, when calculating ROM, the goal is to provide a rough estimate that is largely accurate even if it’s not necessarily convenient for your plans. By this, we mean you may find it tempting to choose figures on the more conservative side in order to achieve a more desirable outcome. Unfortunately, using inaccurate stats defeats the entire point of creating the estimation in the first place. Great research can help illuminate areas of your rough order of magnitude estimate where it may be tempting to let bias enter into the equation. All that being said, a ROM estimate's variance is not significant enough to deter you from creating one. A ROM estimate provides a starting point for moving forward in much the same way a budget estimate is also used to determine your base. For example, instead of just presenting single-point estimates, managers should present budgets as a range. Remember: the estimate is derived from the available information. If information is missing, you’ll have to make do with what you do know for sure and move forward from there. In fact, you can expect to improve the estimate as the project moves forward. During the planning and implementation phases, the requirements and information will be refined. As you go along, you’ll learn through trial and error what the reality of the project actually is. Rough order of magnitude techniques One technique for creating a rough order of magnitude estimate is known as a definitive estimate. A definitive estimate is a technique that involves estimating an individual project phase or task's level of effort. Planning with this information upfront makes it easier to plot out workloads on visual charts while keeping your team on the same page. This step typically takes a number of hours to complete, but it is a successful way to get an accurate idea of the time and cost of any project. Other popular techniques and procedures for estimating costs include PERT time estimation, COCOMO, and function point analysis. Program Evaluation Review Technique (PERT) PERT charts are used to plan out tasks that will take a certain amount of time to complete. They can also be used to coordinate team members. Constructive Cost Model (COCOMO)COCOMO is a regression model that can be used for estimating the various factors involved in tech and software project management. It is typically used for estimating the size, effort, cost, and quality of a project. Function Point Analysis (FPA)Function Point Analysis is a method of estimating a company's clear business significance. It helps in the evaluation, management, and control of software development. When estimating ROM, it is best to try and estimate in buckets of time and costs. Doing so helps minimize the number of, well, numbers that are required to provide a complete and accurate estimate. Rough order of magnitude examples There are two ways to think about estimating ROM. You can create effort ranges or buckets with approximate figures that any task can fit into. Alternatively, you can use historical data to guide decision-making. Here are some hypothetical rough order of magnitude examples: Creating buckets In this example, a project manager will define effort ranges such as small, medium, and large. Within each range is a total number of hours, personnel, and/or budget needed for tasks that fall in that category. For example, a small bucket may indicate that a task will take two to four hours and is relatively simple or affordable to complete. It all depends on the specific project. Here is a very simple example. Let's say you're considering eating a sandwich for lunch. You know that tasks such as spreading peanut butter and jelly onto two slices of bread would fall into the small category — low effort, low time, and perhaps even a single knife instead of two. However, if you noticed that you're currently out of bread and you know it would take 20 minutes to drive to the store, that task would fall into the medium category because it would take considerably more resources to complete when compared to the spreading task. Historical data Historical data means pulling information from past projects. These projects may have similar tasks, goals, or outlines. This information is good to have on hand in your project management solution. You can use data from projects that didn't go as well as you'd hoped in order to refrain from repeating his mistakes. You can also use data from projects that went above expectations to see where you can replicate those choices here. Let’s continue with our sandwich example. You may have found that in the past when you were craving peanut butter and jelly, it was worth it to you to make the drive. In fact, it also allowed you to run several other errands (a.k.a. projects) at the grocery store. Based on this historical data, you may find that, despite the effort involved, the payoff was worth it in the end. So choosing this path again will be profitable. First-hand experience First-hand experience refers to how experienced the person creating the rough order of magnitude is in this particular field, project type, or as a project manager in general. An expert who understands project management will likely come up with a more accurate ROM than someone on their first day of work. First-hand experience is valuable because you have plenty of anecdotal evidence to back up your estimations from other related projects. It's also helpful because it allows planners to be intuitive about the process and consider the people involved. For example, you may find that a particular supplier often experiences delays. Although the supplier representative promises otherwise, you've seen it happen time and time again. Knowing this, you can factor that into your rough order of magnitude. Now we’ve come full circle with our peanut butter and jelly project. You may have learned from first-hand experience that, despite your intense craving for it, these sandwiches aren't actually worth it for you. You may even have regretted eating them right after you finished and wished you’d opted for a turkey sandwich instead. Knowing this, you may draft an estimate that confirms the amount of resources and effort needed will not have the ROI expected and it would be better to not move forward with it after all. This information isn’t something you can necessarily track with a report. It’s simply a memory of what you’ve experienced in the past. Using this knowledge will help you make better, more informed decisions in your ROM with information you can’t find elsewhere. How to use ROM in project management Project estimation techniques help managers identify the most critical elements of a project and provide them with accurate estimates. These techniques can also be used to plan for resource allocation. It is important that you have an estimate in place before you start a project. Without an estimate, you may not know how long it will take or what resources will be needed. Cost is often one of the most challenging constraints in project management. Having enough money to complete the project is one of the most critical factors in managing it. Creating a ROM will help you understand whether or not it’s financially viable before you even begin. Another key component of a project is time. Having the ability to determine the duration of the work and when specific tasks will take place is very important to project planning. By estimating your project schedule, you can arrange for the people and resources that you need when they are needed. It also allows you to set expectations for the clients. You can create a rough order of magnitude for any project. But there are several project management situations in which it may be necessary to come up with a ballpark idea of what resources will be needed: Larger than normal projects where you will need to provide more detailed information about the project Projects that involve teams across different countries where there may be varying costs and exchange rates Projects that are customized to the client or unique to your team where the product or service is innovative and the scope of the project is being managed through Agile project management methods Even if your project doesn’t fall into one of these categories, a ROM can be used to determine whether or not it’s viable. This is helpful when you’ve got limited resources and more than one project to choose between. Using Wrike to create a rough order of magnitude template Wrike is a project management tool that streamlines the process of organizing, creating, and coordinating a rough order of magnitude. First, start by checking for any historical data from relevant projects you’ve successfully completed. All Wrike users have access to their own detailed project reports. If you have historical data, you can go straight to a more detailed cost figure. It will give you a more accurate and detailed estimate. If you don’t, continue creating your ROM. Then, start breaking the big components of the project down into smaller pieces. Some planners use the top-down approach or the bottom-up approach, both of which can be accomplished with the help of Wrike. A top-down estimating technique breaks down a project into discrete phases and tasks. This method works by estimating the overall time for the project, as well as the phases and work tasks that will be completed within that time frame. If a client tells you that the project has to be done in six months, a top-up approach allows you to estimate how much time you can dedicate to each activity within the project. A bottom-up estimate is a technique that works by estimating multiple tasks and aspects of a project. This step-by-step process combines the various estimates into one final project estimate. In project management, orders of magnitude are typically referred to as broad-brush categorizations of sizes. So use a range when adding in timelines for individual phases and expenses. Tip: don’t forget about project costs spent preparing the ROM and the project management itself. This will take up about 20% of your estimated total time allotted to the project. Next, go above and beyond by using Wrike to calculate risk. Project risk is a set of events that could significantly affect the quality or schedule of a project. It can be triggered by various factors such as unforeseen delays, budget cuts, and legal issues. By estimating the risks involved in a project, you can plan for how those risks will affect the project and develop a risk management strategy later on if you feel that the ROM is convincing enough to adopt the project. Tip: If you’re stuck, talk to your finance department to see if they can help you get a better idea of what things cost. Finally, consider what project planning may look like. Project planning for Agile projects is usually done in phases, with estimates being created initially before the beginning of the sprint. These estimates are then updated during the sprint. Estimation can also happen during a sprint retrospective, where you update the backlog based on the outcomes of the previous sprints. It can also be done during the sprint planning session. The project team is responsible for estimating projects and managing the estimates. They are also involved in the development of the project's documents and databases. Having one central hub for all project estimates makes it easier to organize and communicate your vision and ROM results. As you progress through the project, you should start to produce smaller ranges for accuracy. Over time you will reach a cap for each category that is both realistic and attainable. As the project details become more detailed, the accuracy of the ROM estimates decreases until they are no longer accurate. In conclusion The more data you have about your project, the better it is to draft current project estimates. A project estimation tool can help you build up estimates and track against actuals. It can also help you improve your estimates by recording errors and lessons learned. Discover how Wrike can help you improve your planning and execution with our free trial.

Project Management 10 min read

Scrum Master vs. Project Manager: Key Differences

When it comes to managing projects, Scrum and traditional project management are the two most commonly used approaches. Although both aim to deliver projects successfully, they differ in their processes and methodologies. In this article, we will explore the differences between a Scrum master vs. project manager and provide insights into their roles, responsibilities, and skill sets. Take your project management skills to the next level with Wrike’s advanced features, designed to support both Scrum and traditional project management methodologies. Claim a 14-day free trial of Wrike to explore the differences and similarities in practice. Try Wrike for free The difference between Scrum master and project manager Before we dive into the differences between the two, let’s first define Scrum and project management. Defining Scrum Scrum is an Agile project management methodology that enables teams to deliver high-quality products and involves regular reviews and feedback sessions. It is repetitive and focuses on delivering features in short sprints. Scrum teams typically consist of a Scrum master, product owner, and development team members. Defining project management On the other hand, traditional project management is a methodology that is more linear in nature. It aims to plan, control, and execute a project successfully, step by step. This involves defining goals, analyzing resources, developing timelines, and monitoring progress. Project managers are responsible for overseeing the project’s delivery and ensuring it meets the objectives. Roles and responsibilities of a Scrum master The Scrum master is a critical role in any Agile development team. They make sure the team follows the Scrum methodology and delivers high-quality work on time and within budget. Essentially, the Scrum master is a servant leader who collaborates with the development team. They also work with the product owner and other stakeholders to ensure that everyone is aligned and working toward achieving the project’s objectives. Facilitate Scrum events The Scrum master arranges and leads Scrum activities like sprint planning, daily standups, sprint reviews, and sprint retrospectives. During these events, the Scrum master ensures that the team stays focused and on track. Any issues or challenges that may be hindering progress are identified and addressed to boost the team’s overall productivity. Sprint planning requires collaborating with the product owner and development team to create a sprint backlog that outlines the work to be completed during the sprint. Scrum masters clarify the sprint goals for the team, so that everybody knows what must be accomplished. Daily standups involve ensuring that everyone on the team is following the Scrum framework and is aware of each teammate’s progress. Scrum masters identify any roadblocks and work with the team to remove them. Sprint reviews require communication with the team to review all completed tasks during the sprint. The work must meet the definition of ‘Completed,’ so that the Scrum master can assist the product owner in updating the product backlog based on the team’s progress. Lastly, sprint retrospectives involve identifying areas for improvement and assisting the team in developing a subsequent action plan. Scrum masters also ensure that the team is continuously learning and improving. Try Wrike for free Coach the team The Scrum master is responsible for coaching the development team on Scrum principles and practices. The team must understand and follow the Scrum framework and continuously improve their processes and practices. Areas for improvement are identified and addressed by the Scrum master alongside the team. They provide guidance and support to ensure that everyone is aligned and working toward achieving the project’s objectives. Remove roadblocks The Scrum master finds and removes obstacles that stop the team from delivering good features. They collaborate with the development team, product owner, and others to ensure the team has what it needs for success. Teams are aided by the Scrum master to identify and address any issues or challenges that may be hindering progress. They work with the team to remove roadblocks that slow down productivity. Ensure transparency and collaboration The Scrum master is responsible for fostering transparency and collaboration within the team and between the team and stakeholders. They ensure that everyone is aware of the project’s progress and that the team is working toward achieving its objectives. They also work with the product owner to ensure that the product backlog is transparent and that everyone understands the priorities and goals of the project. Roles and responsibilities of a project manager The project manager, in contrast to the Scrum master, oversees the entire project life cycle and works closely with stakeholders. Their key responsibilities include: Define project scope and objectives Defining the project scope means identifying the boundaries of the project and determining what is included and excluded. This step is important to make sure the project stays on track and the team members know what they have to do. Outlining the objectives requires identifying the specific outcomes that the project is expected to achieve. This ensures the project matches the organization’s goals and that everyone is working toward the same outcome. Identifying the resources required to deliver the project involves determining what people, equipment, and materials are needed. This makes sure the project has enough resources and avoids delays or bottlenecks caused by a lack of resources. Develop a project plan Developing a comprehensive project plan involves breaking down the project into smaller, more manageable tasks. This allows the team to keep track of tasks and deadlines. Creating timelines ensures that the project is completed on time and maintains a sense of organization. Identify and manage risks and issues This means anticipating potential problems that may arise during the project and developing strategies to address them. Doing this makes sure the project isn’t affected by surprises and the team is ready to deal with any problems. The project manager must also work with stakeholders to address these and ensure that the project remains on track. This means tracking the team’s progress against the project plan and crafting solutions. This could include adjusting the project plan or allocating additional resources to address the issue. Ensure quality Project managers must confirm that their team’s work meets project requirements and the tasks’ criteria. Additionally, they need to make sure that it follows relevant standards or regulations. This may involve developing quality standards and processes, conducting quality reviews, and providing feedback to the team. Comparing the skill sets of Scrum masters and project managers Although both roles focus on delivering projects, they require different skill sets. Some of the key differences include: Leadership styles Scrum masters typically follow a servant-leadership style, where they lead by example, empower the team, and prioritize the team’s needs. They believe in serving the team members rather than managing them. They act as a coach, mentor, and facilitator, allowing the team to self-organize and make its own decisions. Scrum masters also encourage collaboration, continuous improvement, and innovation. Project managers lead and make decisions for the team, using an authoritative leadership style. They are responsible for ensuring that the project is completed within the desired budget, scope, and timeline. Project managers have the power to give tasks, distribute resources, and make important choices. They also check task progress and update stakeholders. Communication skills Scrum masters need good communication skills to help teams work together and be open. They talk to team members, stakeholders, and customers every day. They also need to be good listeners, effectively understanding the needs and concerns of the team and addressing them promptly. Although project managers also need strong communication skills, they often focus more on communicating project progress to stakeholders and addressing all of their concerns. Therefore, project managers must be good negotiators, effectively resolving conflicts and reaching agreements. Problem solving abilities Scrum masters need to be skilled problem solvers, as they often address issues that arise during the development process. They must be able to identify the root cause of the problem, propose solutions, and implement them. They also encourage the team to come up with creative solutions and experiment with new ideas. As for project managers, they also need to have strong problem solving skills. However, they tend to focus more on risk management and identifying risks. They must be able to anticipate potential problems and develop contingency plans. They must evaluate the risks’ effect on the project and take suitable steps to reduce them. Adaptability and flexibility Scrum masters need to be adaptable and flexible to pivot their approach and adapt to changes as the project progresses. They must be able to embrace change and encourage the team to do the same. They also need to be able to adjust the scope, timeline, and budget of the project to accommodate changes. Project managers must do the same, even though they tend to develop and follow a more rigid plan. They must be able to adjust the plan as needed while ensuring that the project stays within the scope, timeline, and budget. Project managers also must balance the needs of the stakeholders with the needs of the team. Conclusion Both project managers and Scrum masters play critical roles in delivering projects successfully. However, they differ in their methodologies, responsibilities, and skill sets. If you’re looking to adopt an Agile methodology that focuses on iterative delivery, Scrum may be for you. But if you’re looking for a more structured approach to a project, traditional project management may be a better fit. Ultimately, it comes down to your team’s objectives, resources, and constraints. Get acquainted with the unique roles and responsibilities of Scrum masters and project managers, and then watch your projects thrive with Wrike’s collaboration-focused platform. Begin your free trial now and amplify efficiency across your Agile-oriented organization. Try Wrike for free Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.

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What is the Difference Between a Product Manager and a Project Manager?