Internal Product Management is Not ‘Second-Class Work,’ Argues Melissa Perri

In a recent LinkedIn post, product management expert Melissa Perri challenges the common corporate practice of creating a hierarchy between internal and external product management, arguing that this distinction is not only artificial but also detrimental to customer experience and company revenue.

The False Dichotomy of Internal vs. Outbound Products

Perri highlights a prevalent misconception in many organizations: the belief that internal tools and platforms carry less strategic importance and risk compared to customer-facing products. She contends that this artificial division leads to underinvestment and a lack of rigorous product thinking for essential internal systems.

“I keep seeing companies create artificial hierarchies between ‘inbound’ (internal tools) and ‘outbound’ (customer-facing) product management. The assumption is that internal tools carry less risk and need less strategic thinking.”

This perspective, according to Perri, is fundamentally flawed. She explains that the impact of poorly managed internal tools often ripples outwards, directly affecting the end customer in ways that might not be immediately apparent.

The Hidden Customer Impact of Internal Tools

Perri provides concrete examples to illustrate her point. She notes that when customer-facing employees struggle to access critical information due to inefficient internal tools, it translates directly into a subpar customer experience.

“When a customer facing employee can’t access the right customer information quickly, that’s not just an employee problem, it’s a terrible customer experience at the counter.”

Furthermore, she points to platform teams developing algorithms, such as those used in insurance claims processing. Even though the immediate users of these systems are internal employees, the algorithm’s decisions have a direct and significant impact on customers.

Connecting Internal Tools to Value Streams

The core of Perri’s argument is that all company operations ultimately contribute to delivering value to the end customer. She emphasizes that internal tools are integral components of these value streams.

“Companies miss that everything flows through value streams that ultimately serve your end customers,” Perri writes. “The customer service rep’s tools, the developer’s platform, the sales team’s CRM, they’re all part of delivering customer value.”

Applying Product Management Fundamentals Universally

Perri asserts that the same strategic rigor applied to customer-facing products must also be the standard for internal product management. The principles of clear strategy, thorough discovery, and thoughtful delivery are non-negotiable, regardless of the intended user.

“The same strategic thinking that goes into customer-facing products should apply to internal ones. You still need clear strategy, solid discovery, and thoughtful delivery. The tools might differ, but the fundamentals don’t change.”

She concludes by prompting businesses to reflect on their investment in internal product management and the potential cost to their overall customer experience, suggesting a critical re-evaluation is in order.

For those interested in delving deeper into these concepts, Perri directs readers to the full episode of the “Product Thinking with Melissa Perri” podcast.