Chief Product Officer in Business
What does CPO stand for?
CPO definition
Generally found in the executive ranks of tech companies, CPO stands for Chief Product Officer and refers to the person in charge of the entire product organization. Their role is to oversee all aspects of the day-to-day product team and align product strategy with overall company goals.
For more details, refer to the full CPO glossary term.
What is a CPO strategy in business?
A CPO strategy in business refers to the placement of a Chief Product Officer to lead up the product organization. CPOs oversees all product activities within the company. Their duties include supervising Product Owners and Product Managers, managing the development of products from conception to delivery, and evangelizing those products both internally and externally.
Who does the CPO report to?
A tech company’s CPO, or Chief Product Officer, usually sits within the executive team and reports directly to the Chief Executive Officer or CEO. Some companies refer to their CPO as either the Head of Product or VP of Product.
Key objectives for CPO
A CPO sits high up in the product management organizational chart, reporting to the CEO as mentioned above. This means the CPO must be simultaneously aware of the company’s needs, goals, and metrics for success, while maintaining an in-depth view of a product’s roadmap, opportunities for development, and user base.
The primary objectives of a CPO are:
Leading and facilitating the product department/organization
Supervising product managers
Mentoring the PM team
Creating a strategy and a vision for product management
Marketing products
User research
Connecting companies to their customers by evaluating consumer needs
Meeting with stakeholders and investors to present product proposals
Determining the price of the new products
Communicating with various teams within the organization to ensure the product’s development moves forward as planned
Product analytics, metrics, and marketing initiatives
Product vision and innovation
Some CPOs are also in charge of the manufacturing, procurement, and distribution of the product.
As CPOs find themselves having numerous responsibilities and objectives, they must meet certain criteria to be a good fit for the role:
Be capable of interpreting and understanding different types of data
Be strong supervisors and leaders
Deep understanding of publicity and marketing
Remain sensitive to users and customers, especially regarding feedback and complaints
Possess excellent vision and strategic product skills.
The average salary of a CPO
The average salary of a Chief Product Officer in the United States is $254,980 per year. The range usually is between $224,980 and $284,080, mostly depending on certifications, years of experience, additional skills, and education.
The average salary of CPO in other countries are:
In Germany: $115,420
In the United Kingdom: $117,998
In Japan: $136,255
In India: $51,783
In Australia: $179,984
In Poland: $88,888
In France: $145,384
In Brazil: $122,178
In Singapore: $208,122
What is a product management organizational chart?
An organizational chart is a diagram that helps team members visualize a company’s internal structure by showing details about the responsibilities, roles, and relationships between members within the business. Therefore, a product management organizational chart will display and map out the product management arm of an organization.
Product management can report to a wide range of parts of the company. It sometimes reports to engineering in very tech-heavy roles. Other times, it reports to marketing, especially in consumer-oriented businesses.
However, a CPO is a role that oversees all matters related to a company’s product, so the CPO sits at the top of the organizational chart.
Among the departments they manage, there are product management, user experience research, product analytics, and design.
Even the leaders of product management are supervised by the CPO, such as the Direct of Product Management, the Head of Product Analytics, the Director of UX, and the Direct of Product Marketing.
It falls under the CPO’s responsibilities to make sure that these key leadership roles are performed in alignment with the company’s strategy and vision in an efficient way.
The CPO represents a crucial mentor for all the other product management personnel.
They serve an important role in influencing the strategic direction and culture of the product organization.
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