Product Manager vs. Project Manager: What's the difference?

Having good project and product management is essential to the success of your product and the fulfillment of customer needs. But sometimes the lines between the two roles blur. Find out more about the two positions, their differences and compatibilities, and why it’s important.

What's the difference? And why does it matter?

A lot of people confuse the two roles, and even between industries and companies, the line might be blurred between the two jobs. Both are abbreviated PM, and sometimes there is an overlap in responsibilities. But it is crucial to understand the differences between the two careers because they have different responsibilities and skill sets. The two roles are often complementary, but if they are too incorporated, it can lead to inefficiencies and confusion in your team. That can seep into other aspects of your product, like delays, cost overruns, and unmet customer needs.

Let's break it down.

Before we even think about management, we should distinguish between the differences between products and projects: Products are things presented to the market. They usually aim to address a common pain point or a problem. Projects, on the other hand, are ongoing and impermanent. They might be to design or tweak a product or feature. And typically, there is a deadline or guided expectations as you prepare for execution.

When it comes to product and project management, the roles can be intertwined. And in a small company or start-up, a successful employee might have to juggle multiple titles–or at the very least, be considerate of their team's roles. But it's best to know your job description to avoid feeling overwhelmed or burnout. There are a few key differences that you should keep in mind.

Product Management

Product managers are responsible for the big picture. A successful product manager keeps an eye on overall strategy, vision, and direction. They decide what features to build, when to release them, and how to enter them into the market. Broadly, product managers are responsible throughout the lifecycle of a product. Product managers balance business and revenue goals with the needs of customers and team members. They're the ones that get things done–from researching and developing a vision and crafting a plan to maintaining the roadmap.

A typical week in the life of a product manager might include the following:

  • Developing vision and strategy
  • Conducting market research
  • Identifying customer needs
  • Considering and defining product features
  • Managing roadmaps and release schedules
  • Collaborating across teams–especially cross-functional ones like the engineering, design, and marketing teams
  • Identifying key performance indicators
  • Implementing go-to-market plans and strategies
  • Tracking product budgets

Product managers' main goal is to create profit and value as well as research potential revenue streams.

Project Management

On the other hand, project managers are responsible for the planning and execution of a specific initiative. A successful project manager keeps track of deadlines, budgets, and risks. They're more into the fine details of the project and look after resource management, due dates, and deliverables. Project managers can also thrive in a company that uses agile frameworks because project managers can break down initiatives into small, bite-sized pieces that can break up the short, intense sprints. Because of that, project managers can also create sprint roadmaps that can become a great asset to your team.

A typical week in the life of a project manager might include the following:

  • Developing a project plan and schedule
  • Identifying and managing project risks
  • Managing project resources
  • Communicating project status to stakeholders
  • Managing project scope
  • Ensuring project deliverables are completed on time and within a budget
  • Monitoring project performance and making adjustments as needed

Project managers' main goal is to reduce risk while managing scope and deliverables.

What are the key differences between product managers and project managers?

In short, product managers are focused on strategy. Customer needs, visions, roadmaps, and working with cross-functional teams are at the forefront of successful product management. Project managers, however, focus on the tactical aspects of delivering a project, like managing resources, ensuring the timely completion of deliverables, and considering budget restraints.

It's often said that product managers are responsible for the "what," and project managers are responsible for the "how."

How do product and project managers work together?

Working cross-functionally is vital to both positions, and as a result, you'll see a lot of each other. A product manager might plan the overall strategy while the project manager crafts a plan to execute it. A product manager may prioritize features for a product backlog, while the project manager would ensure the work is completed on schedule. The two will work together to mitigate risks, plan customer relations, and consider stakeholders and upper management.

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How do you become a product manager or project manager?

One of the most complex parts about becoming one of the two is that there is no set path for either. But because of that, both product and project managers often have varying professional backgrounds. Some start early, while others hone their skills later in their careers.

That being said, in general, many product managers have a background in business or marketing. But not always! Since the career is so dynamic and is always evolving, professionals from all professional and academic backgrounds make great product managers. A bachelor's degree is often required. Depending on the company and industry, some might be required to hold an MBA or another advanced degree. It is essential that you have a strong foundation in strategic thinking, problem-solving, and leadership.

Similarly, project managers typically possess a bachelor's degree in a field like business administration or management. Additionally, it is becoming increasingly common to obtain a Project Management Professional, or PMP, certification. To be a successful project manager, you must have strong problem-solving skills, with the ability to work under pressure and meet deadlines.

👩‍💻 Tl;dr

Product managers are responsible for the big picture, keeping an eye on overall strategy, vision, and direction. They decide what features to build, when to release them and how to enter them into the market. Product managers balance business and revenue goals while keeping the needs of customers and team members in mind.

On the other hand, project managers are responsible for the planning and execution of a specific initiative. They keep track of deadlines, budgets, and risks. They're more into the details of the project and look after resource management, due dates, and deliverables.

In short, product managers are focused on strategy, and project managers are focused on the tactical aspects of delivering a project. Both positions work cross-functionally and must communicate effectively to ensure the success of the project.

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Frequently Asked Questions

Learn more!

Which is the senior position?
Depending on your company, industry, and management, there might be a different structure of hierarchies. But, in general, product managers are considered more senior than project managers because they're responsible for overall strategy and direction. In some companies, the product manager may report directly to a higher-level executive like a VP of Product or CPO. In other companies, the two roles may be on the same level, with product and project managers reporting to the same management.
Who makes more?
According to data from Glassdoor, the average salary for a product manager in the United States is around $110,000 per year, while the average salary for a project manager is around $91,000 per year. But these factors can vary wildly depending on your company, industry, and location. And there are a bunch of other factors to consider, like job retention and satisfaction rates, company culture, and experience level.
Can a project manager be a product manager?
In a perfect world, these are two distinct roles requiring different skills. But since there is some overlap between the two, you'll probably juggle various responsibilities. And both positions require a certain level of adaptability and flexibility. But avoid burnout by clearly defining your roles and responsibilities.
Content Writer
Benjamin is fascinated by the intersection between artificial intelligence and the Future of Work. A Baltimore native, Ben is always researching AI advancements, professional development, and evolving workplace landscapes.