593: Building a customer-centric product culture at Komatsu – with Paul Krug

Go where your customers work to understand their needs TLDR

This episode of Product Mastery Now features Paul Krug, Senior Product Manager at Komatsu, discussing the role of culture in product management. We explore how to foster a collaborative team environment, get customer insights, and navigate organizational challenges to deliver products customers love.

Introduction

Today, we are exploring Product Management Culture. It is the most vital and often the most frustrating part of our work, because when the culture fails, it is likely the product eventually follows. This is applicable to all product innovation, but for context, I just toured Komatsu, makers of mining and construction equipment, including the largest machines I have stood next to.

Our guest is Paul Krug. He is a Senior Product Manager at Komatsu, where he manages the Mine Air Products portfolio. Paul has a proven track record of doubling sales through customer-centric redesign and brings a unique perspective from his years in both general management and engineering leadership.

Summary of Concepts Discussed for Product Managers

Voice of the Customer at Komatsu:Komatsu uses an idea called “Gemba,” which means going where the work is. Paul explains that product managers at Komatsu can’t understand customer needs without getting their hard hats on and talking to customers where they work.

Building a Healthy Product Culture:Paul lists attributes of an effective product management culture: accomplishment-focused management, regular cross-functional conversations, and the importance of strong team dynamics. He suggests that being a “people person” and building relationships with employees across the organization are essential for product managers.

Navigating Constraints & Organizational Realities:Paul addresses challenges faced by product managers who are “responsible for everything and nothing.” Product managers need to act as organizational ambassadors to other functions in the company and know something about other parts of the company, such as engineering and accounting. Paul also recommended that new product managers seek mentors.

Driving Change and Reinforcing Good Culture:Paul describes product managers as entrepreneurs embedded in large companies. Unlike a solo entrepreneur who can take large risks, product managers have to follow the rules of their organization. Paul recommends getting to know the unwritten rules and culture of your company, and when you find something you want to change, work with allies such as a VP to share the risk. To reinforce positive product team culture, Paul advocates for team travel, joint field experiences, and dedicated offsite strategy sessions.

Systems Thinking & Expanding Responsibilities:Paul gave some examples of solving problems that are not typically the product team’s responsibility but were able to create more value for customers and the business. He noticed that Komatsu was losing sales due to not knowing how to price their products. Paul took the initiative to reevaluate pricing and approach it more strategically. His team also created a P&L statement to help them communicate more effectively with management, because “if you can’t measure it, you can’t improve it.”

Useful Links

• Connect with Paul on LinkedIn
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