Product Manager vs Product Owner: What’s the difference?

Product Manager vs Product Owner – these two roles can be a bit of a challenge to understand and differentiate. Definitely, there is a bit of overlap between the two, especially in smaller companies and startups. However, when you’re looking to break into product management/development, it’s important to know which role does which so you can decide which position is most ideal for you.

In this article, we talk about the key differences between Product Manager vs Product Owner, as well as comparisons in responsibilities and salaries. We will also be tackling:

• What responsibilities each role owns
• Metrics of success for each role
• Situations where a company may need to hire both

Let’s get started.

What is a Product Owner?

The role of the Product Owner emerged when the Agile methodology and Scrum frameworks were being developed. Just as an overview, the Agile methodology is a way to manage a project where it is broken down into phases. The Scrum, on the other hand, is a framework that helps teams work together harmoniously and efficiently.

In some companies, Scrum teams are formed to, basically, complete projects and deliver products within a short cycle of time. A Product Owner is an important part of this team. The role is mainly accountable for what the team needs to be doing.

The position of Product Owner exists to maximize the value of the product created by the Scrum team. How this is done varies, depending on the organization, its size, the type of product that’s going to be created, and so on.

Key Responsibilities

Here are some key responsibilities a Product Owner should fulfill:

• Learn about the needs of the market and the users 
• Represent the customers to the development team
• Maintain the product backlog
• Maximize the value of the product
• Ensure proper prioritization of the items to work on

The specific tasks the role tackles on a daily basis will be dependent on the type of product that’s being developed but the key responsibilities we’ve listed here are typically what the position is required to fulfill.

What is a Product Manager?

A Product Manager is the “CEO” of a product. This role is responsible for its success by being in charge of the strategy behind the product, defining all the requirements needed to get the product to where it should be in terms of functional requirements, and the rest of the future releases.

Key Responsibilities

Some of the key responsibilities of the Product Manager include the following:

• Connect with customers to understand their needs
• Work and communicate with different teams within the organization
• Prioritize tasks and manage backlogs
• Create and manage product roadmaps
• Oversee the entire product lifecycle
• Keep in mind business goals and objectives

If you would like to know what specific tasks a PM could tackle on a day to day basis, try reading: The Typical Day of a Product Manager.

Differences: Product Manager vs Product Owner

Just from the descriptions and the key responsibilities, it seems that a Product Owner and Product Manager have some of the same responsibilities. What sets the two roles apart within an organization? We’re going to take a look at four factors that will make the contrast more obvious.

Ownership

Each role owns different components of the project. For example, a Product Owner owns the backlog, epics, and user stories. On the other hand, a Product Manager is the owner and in charge of the product roadmap and the minimum viable product (MVP). 

Salary Range

Who has the higher salary between the two positions? 

A Product Manager earns about $160K as the median average annual salary. Because almost all companies give stocks and bonuses to PMs, the salary can reach as much as $240K a year.

Meanwhile, the Product Owner earns about $130K per year. This is the median average salary but if you factor in stocks and bonuses, the salary of a Product Owner can reach up to $185K.

Metrics of Success

The Product Owner and Product Manager have very different metrics that indicate that they are doing well in their job or role. A PM needs to keep in mind net promoter score (NPS), churn rate, business revenue and product conversions.

Contrastingly, the Product Owner focuses on completing stories and metrics related to the execution of the development team.

Context of the Role

Product Owner is a role that a professional steps into when working with the Scrum framework. Product Manager, on the other hand, is a job that a professional can take on. A PM can be a Product Owner within the Scrum team. 

Summary of Differences: Product Manager vs Product Owner

Does a company need both roles?

The answer to this question depends on the company’s desired outcome and size. Some companies hire just the PM, some hire just the Product Owner, and some hire both.

Let’s remember that a Product Owner might be needed in an organization that wants to run quick iteration cycles for a product by using the Scrum framework. Meanwhile, a Product Manager is a role that goes beyond the scrum process and is in charge of every stage of the product life cycle.

While the two roles do have some overlap, a bigger company might need to hire both when there’s a need for two separate individuals to handle the “how” of the product and the “why.” Of course, there are instances where only one person handles the “how and why,” and this is in the case of small to medium-sized organizations.

Essentially, the roles can be interchangeable. But because of the hierarchy and complexity of an organization, some organizations hire different professionals for each role.

Which role should you apply for?

If you see a job listing that says hiring a Product Owner but the description leans more towards being a Product Manager, that’s typical. Most companies still can’t differentiate between the two roles. If you see PM responsibilities, you’re likely going to be a Product Manager despite the title.

This is where your knowledge of the different roles comes in. It’s recommended that you ask as many questions as you can during the interview if you hope to step into a specific role (either PM or Product Owner). Ask about the role’s specific responsibilities and see if you can get a good sense of what you’re going to be doing in the organization.

Despite this, we recommend that you aim for a Product Manager role instead of a Product Owner. Stepping into the PM role allows you to have a wider understanding of the product development process and develop the necessary skills to succeed. On top of that, with the experience you gain as a Product Manager, you can transition into any field easily. That’s including becoming a Product Owner.

How to prepare for a Product Manager interview?

Before you become a PM, you have to ace your Product Manager interview first. There are several ways you can prepare for this first step in your journey but these are the most common that we recommend:

1. Go Through a Self-Paced PM Interview Course

The Product Manager Exercise Interview Prep course prepares you for the PM interviews. It contains over 100 video hours and more than 100 online lessons that will equip candidates with knowledge on how they can master their interview skills.

Note: You would need an upgraded account to access the entire course.

2. Understand and Practice Answering PM Interview Questions

With over 2,000 Product Manager interview questions and responses from members of our community who have been through it, you can review all of the questions and sample answers on the database. This way you can gain more confidence by seeing the response of others and maybe even trying to provide answers for others to review as well.

3. Do Mock Interviews

One way to prepare for a PM interview is by doing mock interviews. You can be both interviewer and interviewee, which gives you the opportunity of getting feedback from your partner and vice versa. On the PM Exercises website, you may look for community members eager to do mock interviews. 

4. Repeat the Process per Category

The PM interview is composed of different question categories. We recommend that you go through the process of preparing for the PM interview for each category. Once you’re comfortable with one category, repeat the process until you have gone through all the possible categories.

Conclusion

The position of Product Owner and Product Manager are both within the scope of product development. If you would like a more focused role within an organization that makes use of Agile methodologies, you might want to consider applying as a Product Owner.

Essentially, both roles are closely related. However, the Product Management role covers a wider range of key responsibilities within an organization that can grant one broader experience that can also prove useful in working as a Product Owner.

FAQ: Product Manager vs Product Owner

Can a Product Owner also be a Product Manager?

Yes, definitely. Product Owner is a role that someone plays within the Scrum team. The Product Manager can also be a Product Owner if need be.

Is the Product Owner higher than the Product Manager?

Within an organization, the Product Manager is the person in charge of deciding what is going to be built. The Product Owner will be the person in charge of making sure that the development team works on the requirements set by the Product Manager. So, in short, the Product Manager is higher than a Product Owner.

Does the Product Owner report to the Product Manager?

Yes, the Product Owner reports to the PM within a company that has adapted the Scaled Agile Framework (SAFe).

Can a Product Owner exist outside of a Scrum team?

Yes, but there has been much debate about this topic for some years. Essentially, the role of a Product Owner cannot exist outside of Scrum but the Product Owner can still be the Product Manager within the company.