The decision to bring a CPO on board in a startup is often a critical turning point for the company, but timing can be everything. And with the unique challenges CPOs face, it's not uncommon for them to have a short tenure in the role.
Startups are renowned for their fast-paced, high-stakes environments. Great CPOs are vital in defining product vision and strategy. But the devil is always in the details.
CPOs of startups have the one-of-a-kind challenge of fostering the baby of the CEO, but they are not the co-founder and exist among other members of the leadership team who are equally important.
They are managing scarce time and resources, having to foster innovative mindsets despite uncertainty and strike a balance between long-term planning and immediate needs.
Enter the "G.R.A.C.E.D" framework:
- Gather resources creatively: Utilize low-cost or free tools and hire scrappy teams comfortable with ambiguity.
- Respond to ambiguity and uncertainty: Maintain a flexible product roadmap, validate assumptions, and focus on smaller experiments.
- Align and communicate vision: Clearly communicate the product vision to the entire organization using storytelling techniques.
- Connect with data and customer insights: Invest in strong data engineering practices and build relationships with engineering and sales teams.
- Embrace personal growth: Continuously improve skills and leadership abilities by seeking learning opportunities and remaining open to feedback.
- Develop relationships and operating cadence: Build relationships with other teams and create an operating cadence to ensure effective collaboration.
Limited Resources
Startups typically operate on tight budgets and have lean teams. A CPO may struggle to find the budget to hire a dedicated user researcher, forcing them to rely on their product managers to conduct user interviews and gather insights.
To overcome this challenge, CPOs can leverage low-cost or free tools, like online surveys or usability testing platforms, to gather user feedback and optimize their products.
You can make do with fewer resources if you are creative. You might not need a Productboard, but a set of interconnected Notion databases would work just as well. You might not need an enterprise-grade data visualisation tool for your dashboards, you can use Excel.
Being scrappy can have diminishing returns eventually but it’s usually way later than more people think. The team they hire needs to be scrappy, comfortable with ambiguity, but able to standardise processes over time to create more repeatability.
It’s great to find rejects from larger tech companies who struggled to grow there: they often have the right ideals, aren’t political, but have seen an environment where process already exists.
Ambiguity and Uncertainty
In a fast-growing startup, priorities can change rapidly, and CPOs must be prepared to adapt.
To stay agile, CPOs can maintain a flexible product roadmap, continuously validating their assumptions and adjusting their plans as needed.
It’ll likely be clear if the startup has or doesn’t have product/market fit. If the retention curves for cohorts trend toward zero, if customers aren’t charging through the front door demanding to use your product, you likely have to work on improving retention by doing 80/20 analysis and seeking what features still keep customers coming back and how to exploit them further.
Creating a lean but solid operating cadence with the PM reports, as well as with their executive team peers in marketing and sales as well as engineering & finance is crucial here. The whole business is a system and you’re a very important cog in it if you choose to be. However, without building relationships, CPOs can become ostracized. The operating cadence is the way to do this while in the daily whirlwind.
The planning horizons should be aligned with sales and marketing cycles, and often focus on smaller batch experiments, hyper-focused on the right audience and feedback loops.
Sales often push for features to be developed quickly to draw in customers. It is essential to test if these features adequately bring in customers and additional revenue, which requires solid lean research and creative exploration to confirm or deny these hypotheses.
It’s important to build aligned conviction with delivery partners and ensure they are also operating with the understanding of the risk the early bets have.
Communicate the Product Vision
Experienced CPOs emphasize the importance of clearly communicating the product vision to the entire organization.
By painting a vivid picture of the future, CPOs can inspire and align their teams, even amidst uncertainty and change. Use storytelling techniques to make your vision more relatable and engaging for the team.
This can be difficult if the problem space is rapidly evolving and the company shifts its marketing and sales strategies.
Building a feedback loop with the sales team is crucial to build up a robust understanding of the problem space from which the vision and strategy will evolve. Connecting the rest of the product team with the insights and ensuring they can question and repeat the vision and strategy is key here as well.
Strategies can’t be too rigid, they should acknowledge the uncertainty and be clear on how the flywheel is expected to function, and what signals the organisation should see if the flywheel doesn’t work.
Leverage Data and Customer Insights
Successful CPOs recognize the value of data and customer feedback in guiding product decisions.
It’s important to have a resource available for doing solid analysis. It requires good product instrumentation, which relies on good data engineering practices.
The CPO must not just think about the product team, but the supporting infrastructure that will enable their PMs to do a good job.
Building a relationship with the engineering leadership is incredibly important, highlighting that by building strong data and analytics practices, the startup can avoid going down dead-ends for too long, and building up tech and design debt which is hard to maneuver out of if the market and competition shift.
Similarly, with the sales teams’ strong focus on getting deals across the line, it’s important to align on what bets are tactical and strategic, and keeping a list of decisions that the whole org knows can lead to future tech and design debt.
Invest in Personal Growth
For CPOs in startups, personal growth and development are just as important as achieving business objectives. As the company and product evolve, so must the CPO's skill set and leadership abilities.
CPOs need to regularly evaluate their strengths and weaknesses, while seeking out opportunities for learning, mentoring, and networking within the product and startup communities. Attending product management conferences, participating in online courses, or joining industry-related communities is key, even if it feels like there isn’t time for this.
It's essential to remain open to new ideas, feedback, and constructive criticism from peers and subordinates. By continuously investing in themselves, CPOs can lead with greater confidence, resilience, and effectiveness.