A very short history of product management

…and its evolving relationship with product design.

Maximilian Speicher

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Published in

UX Collective

5 min readMay 20, 2023

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TL;DR: Product management, originating from a 1931 memo by Procter & Gamble President Neil H. McElroy, has transformed from the introduction of “Brand Men” to manage products to a crucial partnership with product design. This article traces the history of product management and explores its changing dynamics with product design, emphasizing the collaborative approach needed to create customer-centric and user-friendly products that drive business success.

A female product manager and female product designer working together. One is holding what seems to be a pen. Both are smiling. An AI-generated image in vaporware style. — Created with DALL·E. Prompt: “A product manager and product designer working together, vaporware style.”

Product management, though still perceived as a relatively new field, can be traced back to the early 20th century (ProductPlan, n.d.). In 1931, Neil H. McElroy, President of Procter & Gamble, first introduced the concept of “Brand Men” through a memo (Wikipedia contributors, 2023). This new kind of role was uniquely designated to oversee all aspects of a product, including packaging, positioning, distribution, and sales performance (Wikipedia contributors, 2023).

In this article, I want to provide a concise overview of the history of product management, with a particular focus on the evolving relationship between product management and product design. From its origins as a means of justifying additional hires at Procter & Gamble to its present role as a critical contributor to product development and success, we explore the evolution of product management and its association with product design.

The Emergence of Product Management

The concept of product management can be attributed to a memo written by Neil H. McElroy at Procter & Gamble in 1931, originally intended to “[request] additional employees focused on brand management” (Wikipedia contributors, 2023). McElroy proposed the creation of “Brand Men” tasked with managing, for the first time, all aspects of a product, including packaging, positioning, distribution, and sales performance (Wikipedia contributors, 2023). This memo laid the groundwork for modern thinking regarding brand and product management (Eriksson, 2015).

The responsibilities of McElroy’s “Brand Men” encompassed sales tracking, product management, advertising, and promotions (Eriksson, 2015). His vision involved thorough field testing and client interaction to achieve these objectives (Eriksson, 2015). Consequently, Procter & Gamble underwent organizational restructuring, adopting a brand-centric approach and giving rise to the product manager role in the FMCG field (Eriksson, 2015).

The Evolution of Product Management

Following Neil H. McElroy’s introduction of “Brand Men” at Procter & Gamble in 1931, product management continued to evolve (Eriksson, 2015). McElroy’s influence extended beyond the company, as he advised at Stanford University, where he shaped the perspectives of two young entrepreneurs—Bill Hewlett and David Packard (Eriksson, 2015). These entrepreneurs applied McElroy’s ideas, placing decision-making as close to the customer as possible and appointing the product manager as the internal voice of the customer (Eriksson, 2015).

Hewlett-Packard introduced numerous product management innovations, including a divisional structure where each product group assumed responsibility for developing, manufacturing, and marketing its products (Eriksson, 2015). This policy has been attributed to the sustained 20% year-on-year growth of Hewlett-Packard for a continuous period of 50 years, from 1943 to 1993 (Eriksson, 2015). To maintain efficiency, divisions were split once they exceeded 500 employees (Eriksson, 2015).

Simultaneously, in Japan, industries had to start embracing just-in-time manufacturing due to shortages and cash flow challenges (Eriksson, 2015). Toyota’s Taiichi Ohno and Eiji Toyoda took this concept and developed the Toyota Production System and the Toyota Way through continuous improvement over three decades (Eriksson, 2015). This system aimed to eliminate waste in the production process and introduced two critical principles: Kaizen (continuous improvement and innovation) and Genchi Genbutsu (making informed decisions based on the facts obtained from firsthand observation) (Eriksson, 2015). These principles have since permeated various industries and are widely applied by product managers worldwide (Eriksson, 2015).

The Changing Relationship between Product Management and Product Design

Product design and product management are distinct yet closely intertwined fields. Product design involves creating products that fulfill customer needs and deliver a positive user experience, while product management oversees the entire product lifecycle, from roadmap planning to development and launch (Hotjar, 2022).

In its early stages, product management primarily focused on understanding and meeting customer needs (to attain product–market fit) while achieving business objectives (Hotjar, 2022). Therefore, product managers conducted customer research, defined features, prioritized initiatives, and established team workflows (Hotjar, 2022). On the other hand, product designers concentrated on user research and enhancing the interaction and visual design to ensure an exceptional product experience (Hotjar, 2022).

Today, the relationship between product management and product design has evolved. Both fields share a common goal of understanding and meeting customer needs, but they approach it from different perspectives. Product managers continue to oversee the entire product lifecycle but now collaborate more closely with product designers to ensure a strong focus on customer-centric design (Savant, n.d.). Differently put, product managers own the problem and product designers the solution. Product management brings in the business perspective while design focuses more on the user.

Successful collaboration between product management and product design yields well-designed, usable, and user-friendly products that meet customer needs (Savant, n.d.). By working together, product managers and designers can ensure that products are developed with both the customer and business in mind, ultimately delivering an enhanced user experience that benefits all sides.

Product management traces its origins back to Neil H. McElroy’s 1931 memo at Procter & Gamble. Since then, the field has evolved, transforming its relationship with product design. Today, successful collaboration between product management and product design is crucial in creating products that meet customer needs and provide a positive user experience.

As we look toward the future, it will be intriguing to observe how the relationship between product management and product design continues to evolve. By fostering collaboration and focusing on understanding and fulfilling customer needs, product managers and designers can continue to create products that delight customers and drive business success.

Hi! 👋🏻

I’m Max, a Design Director with a Ph.D. in Computer Science, and I write about design, leadership, and strategy. If you’ve enjoyed this article, you can buy me a coffee, which is always highly appreciated, or subscribe to my newsletter. You’ll stay up to date on all my latest writing, and I’ll be sure to keep you entertained with new and interesting insights.

References

Eriksson, M. (2015). “History and evolution of product management.” Retrieved from https://www.mindtheproduct.com/history-evolution-product-management/
Hotjar (2022). “Product design vs product management: everything you need to know.” Retrieved from https://www.hotjar.com/product-management-101/product-design-vs-project-management/
ProductPlan (n.d.). “A Brief History of Product Management: Starts With a Spark.” Retrieved from https://www.productplan.com/learn/history-product-management/
Savant, R. (n.d.). “Product Management & Product Design — What’s the Difference & How Do They Work Together?” Retrieved from https://www.koruux.com/blog/product-management-product-design-how-they-work-together/
Wikipedia contributors (2023). “Product management.” In Wikipedia, The Free Encyclopedia. Retrieved from https://en.wikipedia.org/w/index.php?title=Product_management&oldid=1146574809