How to Build a Great Product Team in a Startup

In the nascent stages of a startup, it's often the founders who are at the helm of product development. Here, resources are limited, and the need for a full-fledged product team might not yet be apparent. However, as the company gains traction, secures funding, and switches into growth and scaling mode, the necessity to build a dedicated product team becomes evident. This transition from founder-driven development to a structured team approach is a critical phase in a startup's journey. In this post, we'll delve into effectively navigating this transition and what matters most when building out a product team in a startup, drawing from my experiences as a product leader in early-stage tech companies.

First things first: Clear Vision, Strategy, and Goals

Hiring new team members is one of the most expensive decisions faced by early-stage founders, and obviously, it’s important to get it right. A founding team might have had an intimate understanding of the company’s vision and goals. However, before scaling up their team, articulating a clear vision, a well-defined strategy, and specific goals is crucial to determine which roles and skills are needed most and will have the largest impact. This clarity not only allows for more strategic hiring and better use of scarce resources, but it also helps avoid headless chicken syndrome once those hires come on board – more on that later.

Embracing Diversity in Team Composition

One lesson I have learned from building several product teams throughout my career is to not hire only people who look, think and feel like myself. The cornerstone of a successful product team lies in its diversity. It's crucial to assemble a team that mirrors the multifaceted nature of the world we live in. Diverse teams bring varied perspectives, experiences, and skill sets, which are invaluable in fostering creativity and driving innovative solutions. Positive tension and engaging discussions stem from team members who don't all think or look alike, allowing for a broader range of ideas and approaches to problem-solving.

Prioritizing Curiosity, Empathy, and Analytical Thinking

Often job descriptions for product managers focus on their years of experience, expertise in specific industries, or mastery of certain tools. While all these criteria matter, none of them will help hiring managers finding the really good candidates. From my experience of hiring dozens of product managers and then seeing them perform in their roles, candidates who exhibit a deep curiosity, empathy, humility, and strong logical and analytical thinking are typically the most indicative of a candidate’s potential to excel. Curiosity is essential to get a deep understanding of customer needs and possible innovative solutions. Empathy, paired with humility, equips product managers with the emotional toolset and intelligence to build trust with stakeholders, secure authentic feedback, and be the first to know when anything ventures off track. Analytical thinking is key for data-informed decision-making and understanding when data alone won’t solve a problem. Together, these qualities differentiate outstanding product managers from the good ones, propelling the team towards achieving exceptional outcomes.

Serving the Team: Leadership as Facilitation

So far, we have talked about the team you are about to hire. Now, this part is about yourself as a product leader and what you can do to get the best out of your team. I have seen many leadership styles from others throughout my career, but what consistently has worked best for my own teams is the concept of servant leadership. Shift your focus from commanding to facilitating, prioritize the growth and well-being of team members, and lay out clear and transparent development paths for their career. Help your team overcome obstacles, provide resources, and make sure they know that you have their back. This leadership style should not be confused with laissez-faire or taking a back seat. Instead, you will be very hands-on in providing direction and setting the framework for your team so they can move forward faster. This nurturing style fosters a culture of trust, encourages open communication, and empowers team members to take ownership. By embodying servant leadership, you create an environment where innovation thrives and team members feel encouraged to extend this culture of openness and trust across the organization, improving collaboration and efficiency.

Aligning Behind Clear Goals

Now to get your product team going and leading the rest of your organization to move all in the same direction and pick up speed, we’re coming back to your vision, strategy and goals that we touched on earlier in this post. For your entire company to work efficiently towards goals, it is vital for team leaders to articulate what those goals are, the rationale behind them and why they matter, and how success will be measured. The alignment and clear communication of goals are the lifeblood of an effective product team. Once a good product team has absorbed their goals, they will evangelize and align the other stakeholders in the organization behind them, and help to fine-tune and adjust by bringing back feedback from other teams, customers, and partners. Regularly revisiting and reinforcing these goals helps maintain focus and adapt to changing circumstances, keeping the entire team united and driven towards common objectives. Of course it’s not just about setting goals, but about continuously communicating them and integrating them into the daily workflow. This shared understanding empowers team members to make informed decisions, align their efforts with the company's vision, and efficiently collaborate with stakeholders.

Conclusion

Building a product team in a startup is an exciting challenge that requires careful consideration of team composition, hiring priorities, leadership style, and goal alignment, but will set up your company to grow and ship products your customers care about. As a founder transitioning into a structured team approach, it is crucial to lead with a clear vision, nurture a diverse and skilled team, and foster a culture of servant leadership. By setting clear goals and maintaining open communication, you can create a cohesive team that is not only aligned with the company’s objectives but also capable of driving innovation and growth. Remember, the strength of a product team lies in its ability to adapt, collaborate, and resonate with the startup's evolving journey.

If you are facing the challenge of building or growing your product team and want to make sure you get it right, don’t hesitate to reach out. I have built and lead several succesful product teams in startups throughout my career, and I am happy to help.