If one were to interpret the tea leaves, they would conclude that there will be a recession within the next year. A recession is not an unusual circumstance, despite the fact that this is unfavourable news. In the history of the United States economy, there have been as many as 47 recessions. And in the course of my career, I have been a part of and a witness to the following five events:
●Recession Caused by the Iran Energy Crisis (July 1981 – November 1982)
●During the period of July 1990 to March 1991, the Gulf War Recession was in effect.
●The Recession of the Aftermath of the September 11th Attacks (March 2001–November 2001)
●The Great Recession (December 2007–June 2009)
●The Global Financial Crisis (March–April 2020)
It’s safe to assume that I have some wisdom after having worked in professional environments for the better part of four decades, the majority of which were spent as a product manager. It is not everything you need to consider or do, but it is a significant portion of it. Just some helpful guidance from someone who has been in your situation before, from someone who hopes it will serve you well in challenging times.
The following are my five recommendations for best practises for product managers that can assist in surviving an economic downturn.
1. Make developing innovations based on the needs of your customers your top focus.
This is a period of decline. Because we are no longer in the growth mode, it is imperative that you conserve funds. It is not about differentiating yourself from competitors in order to secure new business or retaining existing customers in order to continue receiving payments for subscriptions and renewals. Establish a top priority for innovation that is focused on the customer. Not competing with them. Not potential new customers (clients). You should strive to maintain and further develop your ties with the consumers you already have. Because of this, the lights will continue to be on. Everything that moves you closer to the “aspirin” category on the features roadmap, as opposed to the “vitamin” category, should be prioritised for this week’s sprint. Take a look at the route map here. Keep your attention on the here and now. Find out what makes customers want to keep coming back.
2. Evaluate the effectiveness of your product management tools
OK, you are not buying anything. The same old thing. Period. However, is there a more convenient time of day for you to “take a peek”? No. This is the end. The moment for planning and preparation has come. Take a look at all of the different tools for product management; there are quite a few. What will give you the ability to produce a product that will put you ahead of the competition when you are once again in the growth mode? Get ready, and while you still have the opportunity to do so, find it out.
Look for a tool that was designed for a specific purpose and has a section dedicated to it if you want to monitor the health of the product, plan the roadmap for the project, keep stakeholders informed, and make quick decisions and compromises based on facts.
3. Identify possible M&As
Now is the moment to discover people who have not managed as effectively as you have in the past and share your unique expertise with those who are in charge of making decisions. Although it may come across as cruel, this is not necessarily the case. You are providing an advantage for yourself in the market, as well as an opportunity for former competitors or items that are complimentary to yours to thrive with their clients.
A competitive business or one that sells products that are complementary to its competitors’ might not make it through a recession. These kinds of businesses can be able to provide you with a sizeable number of new customers. This presents an excellent chance for you to expand your offering and/or your consumer base at a reduced expense. Make use of your buy vs. build study to determine what is best. Also, make the most of such opportunities.
4. Ensure that you are prepared to use a remote control.
If you want your product management tools, processes, and staff to function better in a virtual environment, you should start making plans to invest in them as soon as possible. There are advantages to living in a faraway location, despite the fact that real-time, face-to-face interaction is incomparably more fulfilling. Since the beginning of the epidemic in the year 2020, we have witnessed that the vast pool of talent available in a virtual environment is a significant positive. You may collaborate with people who can improve your product and market advantage — regardless of where they are or how you communicate with them — as long as you have the appropriate product management tools and productivity software at your disposal.
5. Re-evaluate employee needs
Even corporations that are doing well during an economic downturn may use this as an excuse to let employees go. It is a sad fact, but it makes sense to re-evaluate the team and their demands during times of recession. After doing so, you can figure out what combination of people puts your department in the best position to succeed during a downturn in the economy. Remember to prioritise the following three things:
Think of the customers, think about the several possible outcomes, and think about the potential.
Even though this is the most difficult thing a product manager will ever have to accomplish, it is vital to keep the correct team and address the demands of their members in order to keep innovation moving forward in a profitable direction.
You can expect to spend a large portion of your professional life working through difficult situations. At the most fundamental level, your organisation will be looking to you to provide these product management best practises as you move forward in the role. It’s what every product manager should be keeping in mind for the immediate future.
It’s not about winning; it’s about surviving to fight another day. Don’t let go. Hunker down. Ride it out. Stay alive so you can give battle another day. And start getting ready for the fight right now. You are able to do this!
