Margolis Advisory Group, Inc. . Investment Management . Consulting . Sales

Who Drives the Product Bus?

July 28th, 2009

A manager mentioned to me recently that their marketing and sales people and investment people are not on the same page with respect to products. The investment people know in their hearts that they can deliver certain investment capabilities to the marketplace, but their passionate pleas fall on deaf marketing ears. The marketing and sales people are certain in terms of what products and capabilities the marketplace demands, but their claims feel ignored by the investment staff. How can they improve their communication and arrive at consensus? Who should drive the process?

The answer is that it needs to be a collaborative process. Investment personnel are in the best position to know their strongest investment capabilities. Marketing and sales personnel are in the best position to understand marketplace trends, what is being demanded by their client base, and the state of the competitive environment. All of these factors must play a part in making important commitments to product development. Often a product development function exists to coordinate all of this. But with or without that function, communciation forums must be created to exchange information across departments so that all critical personnel arrive at the same conclusions with respect to product development and delivery. It is very important to create an open environment where all views are vetted and respected. Investment management requires a team oriented culture, not a rigidly divided one by function.

Filed under: General

Tags: development, products