PM Hierarchies Explained: Who Does What and Why It Matters
This article breaks down the structure of the product management job title, what each level does, and why it matters for your career
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Have you ever wondered why some products feel like they were built just for you, while others seem to miss the mark entirely? Product management is the hidden force behind the success (or failure) of nearly every product you love—or hate. It’s the glue that holds ideas, teams, and strategy together, and it’s evolved from a one-person job into a multi-layered ecosystem of specialized roles.
In this article, we’ll break down the fundamental dynamics of product management- who does what, why it matters, and how to navigate your path in this dynamic field.
Early-Stage vs. Established Companies
I have observed that in early-stage startups, one person often does it all. I’ve seen a Head of Product who not only talks to customers but also crafts strategy, writes user stories, and runs and interprets experiments. However, as the company grows, the role naturally splits into two layers:
Heads Up: Focuses on identifying opportunities, planning, and aligning with the company’s vision.
Heads Down: Handles tactical work—defining features and working closely with development teams to make ideas a reality.
In many cases, about four or five product managers report to a single leader, and in larger organizations, you will find an additional tier that further refines these roles.
Hierarchy At A Glance
At the top of the pyramid, you have titles like Senior Director of Product or Senior VP. In my experience, these leaders are not just decision-makers; they are the champions of the product team. They work closely with executives to secure resources, build teams, and shape the product strategy.
Directors of Product or similar roles rank just beneath them. Folks with this title take on the responsibility of planning at a program level. Meanwhile, the individual product managers focus on the day-to-day tasks that bring the product to life.
One pattern I’ve noticed is that every functional group tends to follow a pyramid structure. At the apex is the Head of Product. Directly below, you have senior VPs—each with a clear mission or focus area—and then a host of product managers who work to support those strategic goals. User Experience (UX) is also part of this picture. Sometimes, a dedicated UX team reports directly to the Senior VP, but more often, I’ve seen UX experts embedded within teams led by Product Directors. This setup ensures that design and functionality are always in step with the team’s objectives.
Role Breakdown: What They Say vs. What They Actually Do
Let’s break down some of the common roles I’ve encountered over the years. We will cut through the corporate-speak and get real about what each role does:
Head of Product (or VP/CPO):
This is the person at the very top. In smaller organizations, I’ve seen this role being very hands-on. In larger companies, the Head of Product becomes a key advocate—working with the president and other executives to allocate resources and set the strategic direction.
What they say: “I’m responsible for product vision and strategy.”
What they actually do: Play politics, fight for budget, hire/fire people, and shield the team from executive chaos.
In startups, this person is still hands-on. In larger companies, they’re in endless meetings about “strategic alignment” and “portfolio management.” They are paid to worry about next year while everyone else worries about next week.
Director of Product:
Depending on the company’s size, a Director of Product may report to the Head of Product or, in some cases, serve as the highest-level product leader in a smaller organization. Whether managing a team or acting as a principal individual contributor, they are the ones setting the strategic course and planning the roadmap.
What they say: “I develop product strategy and lead a team.”
What they actually do: Translate company goals into actionable roadmaps and manage the expectations of both executives and their teams.
Here is where it gets tricky—some Directors manage people, others don’t. The “Principal Product Manager” title is becoming more common for Directors who lead initiatives but not people. Both have similar compensation and authority.
Group Product Manager (GPM):
In larger product teams, I’ve observed that a Group Product Manager is often necessary to manage a handful of product managers—usually two to four. This role balances hands-on work with leadership, ensuring that the team executes the strategy set by the directors.
What they say: “I lead a group of product managers.”
What they actually do: Keep 2-4 PMs focused and productive while still being hands-on with some features.
This role only exists when the team gets too big for the Directors to manage everyone directly. It's half manager, half individual contributor—often writing user stories while also asking their team to contribute.
Principal Product Manager (Lead Product Manager at Mega Corps like Google, and Netflix):
This role is reserved for those who excel as individual contributors. I’ve worked with principal product managers who, despite not managing teams, lead the most critical initiatives. Their impact is comparable to that of a director, even though their focus remains on execution rather than management.
What they say: “I lead our most complex initiatives.”
What they actually do: Handle the gnarliest, highest-stakes product work without managing people. This is the top of the mountain for those who love product work but hate managing people. They are trusted with the crown jewels because they have proven themselves over the years. They can earn Director-level compensation without managing anyone.
Product Manager (and Senior Product Manager):
These are the core players. They handle everything from writing requirements and acceptance criteria to performing tests and setting priorities for development teams. Senior Product Managers take on even more complex projects, bringing a depth of experience that is vital for challenging initiatives.
What they say: “I define and prioritize features.”
What they actually do: Write requirements, test features, and make daily trade-off decisions with developers.
This is the backbone of any product organization. They’re embedded with development teams, often playing the Scrum Product Owner role. The difference between regular and Senior is the experience and complexity of projects they can handle.
Associate Product Manager (APM):
I’ve seen APMs come in as recent graduates or newcomers who support the team while learning the ropes. They perform analysis, make recommendations, and gradually build the skills needed for bigger responsibilities.
What they say: “I’m learning product management.”
What they actually do: Support other PMs, do analysis, and make recommendations without decision authority.
This is product management with training wheels—perfect for fresh grads or career switchers. APMs do valuable work while learning the craft, but ultimately, someone else makes the final calls.
Two Career Paths: Choose Wisely
Here’s what nobody tells you early enough- around the Senior PM level, you’ll face a fork in the road:
Path 1: Leadership Track
Senior PM → Group PM → Director → VP/CPO
This path means gradually trading product work for people management. You will spend more time in meetings and spreadsheets than building products from a day-to-day standpoint.
Path 2: Expert Track
Senior PM → Lead PM → Principal PM
This path keeps you close to the product but caps your organizational authority. You will influence expertise rather than positional power.
Neither path is better—it completely depends on whether you get energy from building great products or building great teams.
Why You Should Pay Attention To This
Understanding these hierarchical dynamics means you can:
Recognize what role matches your interests and skills.
Set realistic expectations about your day-to-day work.
Plot your career moves with intention rather than stumbling upward.
Product management remains one of the most rewarding careers for people who love the intersection of business, technology, and human behavior. From my experience, there is no single right way to grow—you can design a path that plays to your unique strengths.
In Summary
In my view, product management isn’t just a job—it’s a journey of continuous learning, creativity, and execution. The structure of a product organization, the roles within it, and the career paths available are all designed to help you grow and make an impact.
Whether your passion lies in building products, devising strategic plans, or leading teams, there is always an opportunity to push the boundaries and create something truly remarkable.
I share these insights because I believe in the power of thoughtful product development and the importance of sharing what we learn along the way. I hope this perspective helps you see the beauty and complexity of product management as clearly as possible.
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