The product department in an organization is responsible for identifying and developing products for consumers. It has various professionals working within it to ensure satisfactory products and user experience. The staff needed in this department depends on products and organizational size. Here, let’s know the similarities and differences between them- CPO Vs VP Product.
Chief Product Officer (CPO) is a C-level executive who oversees the running of the products department in an organization. A Vice President (VP) Product is a C-suite supportive role relating to product development. He is the head of product. Let us establish the differences and similarities between these roles.
Similarities between CPO and VP Product
Advisory Services
They provide expert advice concerning product development. They identify customer needs to improve their experiences and company revenue. They obtain relevant information concerning existing or new products. They provide information on trends and emerging issues that affect the department, products, or customers.
Business Development
They identify new products and new target markets to attract consumers and sell company products. They also collaborate with the business development team to develop appropriate products, strategies, and techniques. They identify ways of improving an existing product and customer retention.
Planning
They establish methods and techniques to address challenges in the business environment. They also develop solutions that resolve problems experienced by customers. They provide ways of overcoming the influence of competitors in the business environment and outperforming competing products.
Qualifications
They have relevant business degrees at the Bachelor’s or Master’s level. They have certification in financial management. They also have computer literacy skills and evident if they work for the technology sector.
Hiring Process
The officers are involved in the hiring process of product teams. They establish the criteria for selecting members of the product teams in collaboration with the HR department. They are involved in the vetting process to identify the best talent for product development.
Differences between CPO and VP Product
Focus Area
The CPO focuses on policies and procedures for his department. He focuses on the productivity and performance of the department. On the other hand, a VP focuses on product development. He identifies product features and suitability for consumers. He is concerned with improving the product or creating a new one for the customers.
Hierarchical Position
The CPO is a member of the C-suite, and he is involved in steering the organization to the desired level. He participates in developing the corporate strategy. On the other hand, a VP appears directly below the C-suite team on the organizational structure. His role is to support the C-suite team.
Reporting Lines
The VP reports to the CPO, and in some cases, you will find various Product VPs in an organization. They could each specialize in a specific company product. In which case, they will all report to the CPO, while the CPO will report to an organizational President or Chief Executive Officer.
Scope of Work
The CPO’s role is executive. He is concerned with policy development, planning, budgets, and staffing. He focuses on departmental structures and systems. On the other hand, the VP’s role is operational. He is concerned with processes relating to his product. He focuses on procedures and routines, which improve product development. He is concerned with the effectiveness and efficiency of staff in the development team.
Customer Experience
The VP’s is concerned with user experience. He ensures that the product features meet the expectations of the customer. He undertakes research and development to make sure adequate information is available from the users concerning a product. On the other hand, the CPO is concerned with profitability. He ensures the product generates revenue for the company by having the appropriate product and satisfaction from users.
Planning
The CPO is involved in developing the strategic plan for the organization as a C-level executive. He guides the organizational mission and vision. On the other hand, the VP focuses on operational activities, which interpret corporate strategy. He develops plans to give company products a competitive edge. He ensures user experiences are unique to get preference for their products.
Hiring Process
The CPO participates in the recruitment of all staff in the product department, including the VP. On the other hand, a VP will participate in the recruitment of staff for their product team.
Conclusion
The product department is critical in an organization since it generates revenue for an organization. It is concerned with user experience and essential product development. It is constantly undertaking research and development to meet customer needs, and products remain relevant in the business environment. The CPO is in charge of the department, while the VP is concerned with the product. The product development team reports to the VP, while a VP will report to the CPO. The CPO is a C-level executive.
Frequently Asked Questions
- What is a Product Department?
It is a department responsible for developing and improving company products.
- Who is a Chief Product Officer?
He is a senior executive responsible for the operations of the product department.
- Who is a Vice President of Product?
He is an organizational leader responsible for managing a product and its team within the product department.
