One thing certain about the current economy is that… uncertainty rules the roost. So, what strategies should a product manager in a technology company use – increment or innovate? Play it safe or push the boundaries? Much has been written about product managers’ need to fail forward. The key is failing early, spreading risk across a number of innovation bets instead of making all-or-nothing ones, and most importantly learning and adapting. For more on balancing innovation, check out Jeff Lash’s excellent post here.

However, is this strategy still plausible in the current climate? Do small failures increase job vulnerability? Is taking the risk worth go through the tribulations of the unemployed product manager? Or should product managers retreat to the relatively safe confines of incremental value adds. Add this feature or that. Cater to the most powerful constituencies within the company and meet their demands – whether its sales, engineering, or customer advocates. Or should they continue to push for innovation? Stay true to their calling to push the envelope in practical ways and make progress.

The answer is obvious. Product managers need to innovate. Economic downturns are notorious for bringing in new competition to the mix. Up-and-comers with new business models could give established players a run for the money. Scarce budgets could force customers to consider substitute product categories, which get the job done – though not in the most efficient way.

The key word here is ‘practical’ or ‘pragmatic’. Now more than ever. Setting a higher bar for the big bets. Distributing risk among several smaller bets. Focusing on innovation that can save costs, streamline operations and add to a customers’ bottom line. For example, a feature increasing ways to share information with more users, more frequently, for faster decision-making would trump the next UI change for improved usability. It also means saying ‘no’ to the one-off sales-driven functionality changes, which you are certain will drag your downsized development team down a rat hole.  Instead, agree to process milestones that take place once the deal is sealed. This resolve is good practice in better times, but absolutely necessary when resources are scarce.

And of course, if the political environment exists where a good executive ‘coach’ is willing to back you up, and your company has the reserves to weather a limited failure or two, there is no better time to strike out flailing competitors. Act on it and the innovators will certainly reap the success, recognition, and the rewards in time to come.

- Ronnie