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It certainly doesn't sound like good management practice!

Why not? I worked for silicon valley startups for 15 years and not once did I meet a "product manager" who did anything worthwhile.

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Product managers are very useful when you are not your own customer. Good product managers are a proxy for your customers, providing you information on the customer wants and needs. Good product managers work with the engineers to prioritize projects; it is not a dictator position, but does help ensure that the less sexy projects get done as well as the uber-cool sexy projects.

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