10 Tips on How to Build a Great Product Team as a Founder
Building a Product team is easy, but building a great Product Team is super hard.
When you are a founder of an early-stage startup, initially, the Product Team is just you. You are the product manager, and you have to make sure that your vision of the product becomes a reality.
And somewhat that is easy - because you have the control, and the speed of execution is also super fast. But, as you scale, this becomes more of a pain because you have a lot of things to do, and the Product is just another task on your ever-growing task list. At this stage, you start to think about hiring your first Product Manager and building a Product team.
Here are the top 10 tips that will help you to build a great product team -
Why?
Product Management is the most undefined role in the entire tech industry, and people who work in structure and need definitions aren’t a good fit for startups. You need people who can work with uncertainty; they can resolve blockers on their own and also move fast in a haze. High agency means they can act fast, even when things get a bit blurry.
Impact
It will cultivate a culture where challenges are seen as opportunities, leading to breakthrough innovations.It creates an atmosphere where everyone is ready to innovate and face the unexpected.
Example
Look at Airbnb's founders during the 2008 recession. Their resilience and high agency led them to switch from selling quirky cereal boxes to building a global hospitality platform. A great lesson in adapting and innovating when the going gets tough.
Why? In the early stages of a startup, action speaks louder than elaborate plans. While strategy is important, the primary focus should be on executing ideas and bringing them to life.
Impact Prioritizing execution ensures that ideas don't just stay on paper but become tangible products or services, crucial for early-stage growth and market validation.
Example Amazon’s relentless focus on execution, especially in its early days, centered on delivering a seamless customer experience, which was pivotal in establishing its market dominance.
Why? This approach involves deconstructing problems to their fundamental principles and solving them from the ground up. It's about not taking things at face value but rethinking them entirely - getting to know the WHY of the problem.
Impact First-principle thinking fosters deep innovation and leads to solutions that are not just incremental improvements but potentially industry-changing.
Example Elon Musk’s approach to SpaceX and Tesla involved breaking down complex problems into basic elements, which drastically reduced costs and led to innovative solutions in space travel and electric cars.
Why? Direct interaction with customers provides insights that cannot be gleaned from data alone. Data usually hides a lot of disparities that you will only know when you speak to customers. It also builds a deep understanding of their needs and pain points.
Impact Regular customer interaction ensures that the product remains closely aligned with market needs, increasing the likelihood of its success.
Example Slack’s growth can be attributed to its constant engagement with users, using their feedback to refine and improve its platform, making it deeply aligned with customer needs.
Why? Aligning team incentives with desired business outcomes ensures that everyone works towards the same goals. It’s about ensuring that team efforts directly contribute to the company's success.
Impact This alignment drives motivation and focuses efforts on what truly matters for the product and the business, leading to more efficient and effective outcomes.
Example Google’s use of the OKR framework successfully aligns individual and team objectives with broader company goals, fostering a high-performance culture.
Why? In a fast-paced startup environment, ensuring that every team member is on the same page is vital. Overcommunication helps in avoiding misunderstandings and aligns the team.
Impact It leads to better coordination, quicker decision-making, and a more cohesive team effort, all of which are essential in a dynamic startup environment.
Example In companies like Atlassian, robust internal communication systems ensure that information is clearly and consistently disseminated, keeping teams aligned and informed.
Why? This approach allows for a diverse range of ideas during the planning phase but requires decisive leadership during execution to ensure clarity and direction.
Impact It strikes a balance between creative ideation and efficient execution, crucial for maintaining agility and focus in a startup setting.
Example Apple, particularly under Steve Jobs, demonstrated this with a culture that valued diverse ideas but followed a decisive, top-down approach during product development execution.
Why? Creating a culture where each team member feels responsible for their part of the project fosters commitment and excellence. Ownership means caring deeply about the success of the product and the company.
Impact This culture leads to higher quality work, as team members are more invested in the outcomes of their efforts, contributing positively to the product's overall success.
Example Netflix’s corporate culture is characterized by high levels of ownership and accountability, which has been fundamental in its innovation and success in the streaming industry.
Why? Balancing intuition with data creates a comprehensive decision-making process. While data provides objective insights, gut feeling often draws from deep experience and understanding.
Impact This balanced approach leads to well-rounded and effective decisions, leveraging both the quantifiable aspects of the business and the invaluable human experience.
Example Jeff Bezos at Amazon frequently combines data-driven insights with his entrepreneurial instincts, leading to bold and successful business strategies.
Why? The success of a startup significantly depends on the quality of its team. Attracting top talent means not just hiring skilled individuals but those who align with the startup's vision and culture.
Impact Having a team of exceptional individuals drives innovation, productivity, and ultimately, the competitive edge in the market.
Example Google’s reputation and culture have consistently attracted top talents, contributing to its continuous innovation and status as a tech leader.
Conclusion Building a great product team is a multifaceted endeavor. It requires a mix of strategic hiring, fostering the right culture, and implementing practices that align with your startup's goals and values. By focusing on these ten aspects, you can create a product team that is not just competent, but exceptional - a team that will drive your startup towards success and growth.