1. Product Leadership - The Role of Product Leadership by Company Type

Welcome to the Product Leadership course from PM3. In this first lesson, we will explore the role of product leadership. I'll introduce myself and share my journey to set the stage for the content we have ahead.

Instructor Introduction

My name is Joaquim Torres, but most people know me as Joca. I graduated in Computer Engineering from ITA and started my own company, Dialdata, right after finishing in 1991/92. It was an internet service provider, which I sold to an American company called Via Networks in 1998. I then worked for four or five years at Via Networks before joining Locaweb, where I helped diversify the product portfolio. At Locaweb, I led product development and engineering teams, and the company grew from around 100 employees to over 1,000 during my eleven years there.

Later, I joined Conta Azul as VP of Product and Engineering, leading a team that grew from 60 to 120 people. After two years, I moved to Gympass, where I helped transform the company into a tech-driven business. I built the tech team from 30 to 250 people between 2018 and 2020. My most recent role was leading the digital transformation of Lopes, a well-known real estate company, for two years. Currently, I work as an advisor, sharing my experience with others.

Throughout my career, I’ve authored three books:

1. The Startup Guide, focusing on product discovery.
2. Product Management, covering the entire product management lifecycle.
3. Digital Product Leadership, which aligns with the content of this course.

What We’ll Cover

In this course, we’ll start by defining product leadership and the various roles it encompasses. We'll discuss the importance of vision and strategy, the role of a leader in developing people and teams, and we'll wrap up by covering leadership anti-patterns, which are common mistakes when transitioning from an individual contributor to a leader.

Leadership Disclaimer

Before we dive deeper into leadership, it's crucial to acknowledge that becoming a complete leader is incredibly difficult—if not impossible. This acknowledgment takes the pressure off. What’s important is recognizing your weak points and knowing how to address them.

For instance, during my time at Lopes, I had to make a decision about appointing a leader for the team focused on brokers and franchises, the core of Lopes' business. I had two options: hire someone from the market with extensive product management experience but little real estate knowledge, or promote someone internally with a strong understanding of the business but limited formal product management experience. I chose the latter.

We made it clear to the team that this person would rely on the product managers and designers to fill the gaps in product management expertise, while they contributed their deep knowledge of the real estate market. This created a balanced dynamic, demonstrating that it’s okay not to be a complete leader as long as you can delegate and develop your skills over time.

What is Product Leadership?

To understand product leadership, we first need a clear definition of leadership. A simple way to think of leadership is the ability to lead a group of people toward a common goal. Product leadership, however, takes this a step further.

Product management is the intersection between a company’s strategic goals and the needs of its customers, leveraging available technology to achieve those goals. Product leadership is about leading the product team (which includes engineering, product management, and UX) to solve customer problems while aligning with the company’s strategy.

Leadership Across Company Types

A critical aspect of product leadership is understanding how the role varies depending on the company type. I classify companies into three main categories:

1. Digital Companies: These are businesses where the product is the technology itself. Examples include Locaweb, ContaAzul, and even services like Google Search, Gmail, and Instagram. In these companies, product leadership is at the heart of the company’s success.

2. Traditional Companies: These businesses often existed before the digital age and include companies like Bradesco (banking), Lopes (real estate), and Suzano (pulp and paper). In these companies, technology supports but is not central to the business.

3. Traditional Companies Born Digital: This group includes companies that operate in traditional industries but have been enhanced by digital technology. Examples include Amazon (retail), Airbnb (real estate), and Nubank (banking). Technology enhances their core offerings but is not their core product.

The Role of Product Leadership by Company Type

• In Digital Companies, product leadership is critical to defining the company’s vision, strategy, and future direction. The product is the company's core business, so the product leader has a central role.

• In Traditional Companies Born Digital, product leaders play an important role, but the core product often exists outside of the digital domain (e.g., banking services or entertainment content). Here, product leaders must ensure technology is leveraged effectively to drive business strategy, but they are not solely responsible for it.

• In Traditional Companies, the product leader’s role often involves advocating for the value of technology within the broader business context. Product management is seen as an enabler rather than the core of the business, and the product leader needs to demonstrate the business impact of digital initiatives.

Common Sources of Product Leaders

1. Product Management Career Path: The most common path to product leadership comes from within the product management discipline. However, it’s important to note that not all product managers want to manage people, so career paths need to account for those who prefer individual contributor roles (often through a “Y” career path).

2. CTO or Head of Engineering: In some organizations, the CTO or Head of Engineering also takes on product leadership. While this can work, it’s essential that this leader brings in strong senior product managers to help manage the business aspects of product development.

3. Marketing or UX: Sometimes, product leaders come from marketing or UX backgrounds, as these areas are closely tied to product management. Marketing often works closely with product teams to define messaging, while UX focuses on product discovery and design.

This concludes the first module on product leadership by company type. The key takeaway is that product leadership varies significantly depending on the nature of the business, and understanding your company’s context is essential to becoming an effective product leader.