The Myth of the Product Management P&L
The short answer: It is a myth
There is a long-simmering debate in the product management community revolving around product managers and P&L statements. Do product managers really need access to the product P&L statement? Does each product line need its own P&L statement? Should product managers “own” the P&L and be the CEO of their product?
Where Did It All Begin? The Neil McElroy Memo
Neil McElroy was an executive with Procter & Gamble. As a junior executive managing the advertising campaign for P&G’s Camay brand of soap, McElroy wrote a famous 3-page company memo that laid out the principles of modern brand management. In the memo, McElroy argued that companies should assign a separate marketing team to each individual product brand as if it were a separate business. This innovative system of brand management would eventually be adopted by consumer product companies all throughout the U.S.
McElroy became Secretary of Defense in 1957 under Eisenhower. He also advised Stanford University where he had a significant impact on two entrepreneurs —…
