1. Introduction to Product Teams

Product teams, often referred to as "squads," are multidisciplinary groups that operate autonomously within an organization to deliver specific outcomes.

These teams are self-organized and have the responsibility and authority to make important decisions, typically within a predefined scope.

The structure and functioning of product teams are critical to the success of any product-focused organization, particularly in a fast-paced, technology-driven environment.

Characteristics of a Product Team

1. Multidisciplinary and Autonomous

Product teams are composed of members from various disciplines, including product management, design, engineering, and sometimes marketing and data analysis. Each member brings a unique skill set that contributes to the team’s ability to handle the entire product lifecycle, from understanding user needs to design, development, and deployment. The autonomy of these teams allows them to make decisions and adapt quickly to changing circumstances, although this autonomy is usually balanced with the need to align with the broader organizational strategy.

2. Purpose and Vision

A successful product team operates with a clear purpose and vision. Without a well-defined purpose, the autonomy granted to the team can lead to misalignment with company goals. Therefore, it is crucial for the team to understand not only what they are building but also why they are building it. This purpose-driven approach helps ensure that all efforts are focused on delivering meaningful outcomes that align with the company’s strategic objectives.

3. Outcome-Oriented

Unlike traditional teams that might focus solely on delivering features, product teams are outcome-oriented. This means they are responsible for moving specific metrics, impacting the business, and improving user experiences. The focus is not just on what is being built but on the results it delivers. This approach often leads to teams being referred to as "outcome teams" because their primary goal is to achieve tangible, measurable results.

4. End-to-End Responsibility

Product teams are responsible for the entire product development process, from understanding user pain points to designing solutions, developing the product, and ensuring it is bug-free before release. This holistic responsibility is akin to running a startup, where every member of the team plays a crucial role in the product’s success. The team must work collaboratively, with each member supporting others to achieve the common goal.

5. Effective Communication and Alignment

With autonomy comes the need for strong communication and alignment, both within the team and with external stakeholders. The Product Manager (PM) plays a vital role in ensuring that everyone is on the same page, facilitating communication, and aligning the team’s efforts with the company’s broader goals. This includes getting buy-in from the team and stakeholders to ensure that the team’s work is supported and understood.

6. Agile Coach (Optional)

Not all product teams have an Agile Coach, but when they do, this role can be instrumental in improving team performance, particularly in teams that are less experienced or struggling with agile methodologies. The Agile Coach helps the team streamline processes, adopt best practices, and enhance their workflow. However, Agile Coaches are often not permanent members of the squad; they might assist a team for a period and then move on to help another team.

Evolution of Product Development

Historical Context

In the early days of computing, particularly between the 1940s and 1960s, software development was vastly different from today. Back then, mainframes—massive computers that occupied entire rooms—were the norm, and programming was done using proprietary languages specific to each machine. The development process was more akin to building a physical structure, with clear, unchanging requirements and a linear progression from start to finish.

Transition to Agile Methods

Fast forward to the 2010s, the landscape of product development shifted dramatically with the rise of startups and the widespread adoption of agile methodologies. Companies realized the need to be flexible and responsive to user feedback, leading to the popularity of frameworks like Scrum, Kanban, and Extreme Programming (XP). These methods emphasized iterative development, where teams could quickly test, learn, and adapt, significantly increasing the chances of delivering successful products.

Agile vs. Waterfall

Agile development, with its focus on iteration and flexibility, has proven to be more successful than traditional waterfall methods. In waterfall development, the entire project is planned upfront with little room for change, often leading to a high risk of failure if the initial assumptions are incorrect. In contrast, agile methods allow for continuous feedback and adjustment, which helps teams stay aligned with user needs and market demands.

Missionary vs. Mercenary Teams

A concept popularized by Marty Cagan distinguishes between "missionary" and "mercenary" teams:

• Missionary Teams are driven by a sense of purpose and are focused on long-term impact. They have autonomy over the problems they solve and are responsible for both the success and failure of the product. These teams think in terms of marathons, aiming to make a significant impact over time.

• Mercenary Teams are task-oriented and focused on short-term goals, such as completing sprints or delivering features as requested. They tend to execute orders without questioning the long-term value or the strategic purpose behind their work.

For a product team to be effective, it should function more like a missionary team, with a clear mission and a focus on delivering value that aligns with the company’s strategic goals.

Stability and Continuity

One of the common pitfalls in product team management is constantly changing team members or reassigning them to different squads. Stability is crucial for building team chemistry and allowing members to develop a deep understanding of their product domain. Frequent changes disrupt this continuity and can lead to inefficiencies and a loss of collective knowledge. Therefore, it’s important to maintain team stability as much as possible, allowing the team to grow together and evolve into a cohesive, mission-driven unit.

Where Does the Product Manager (PM) and Product Owner (PO) Fit In?

In the context of product teams or squads, it's crucial to differentiate between the roles of the Product Manager (PM) and the Product Owner (PO). These roles, while often overlapping, have distinct responsibilities and focuses.

The Role of the Product Owner (PO)

The PO is primarily focused on tactical aspects. Their main responsibility is to manage the product backlog, ensuring that the team is working on the right tasks at the right time. They are deeply involved in the day-to-day activities of the development team, writing requirements, user stories, and ensuring that deliverables are aligned with the team’s goals. The PO acts as the bridge between the technical team and the strategic direction set by the PM.

The Role of the Product Manager (PM)

In contrast, the PM's role is broader and more strategic. The PM is responsible for maintaining the product’s vision, ensuring that it aligns with the company’s overall strategy. They conduct competitive analysis, manage the product portfolio, and stay attuned to market trends. The PM works closely with product designers to understand user needs and define the strategic direction of the product. The PM ensures that all development efforts contribute to long-term goals rather than just short-term deliverables.

Coexistence of PM and PO in a Squad

It’s not uncommon to see both a PM and a PO within the same squad, but this setup can be both advantageous and challenging depending on the circumstances.

• Advantages: In situations where the PO is less experienced, having a PM can be beneficial for mentorship and growth. The PM can guide the PO, helping them develop into a more strategic role over time.

• Challenges: If both the PM and PO have similar levels of experience, conflicts can arise due to overlapping responsibilities. This overlap can lead to confusion and inefficiency, as the team might receive mixed signals on priorities and strategies.

Recommended Approach

While having both roles can work, it is generally more effective to avoid redundancy. Ideally, if both roles exist within a squad, there should be a clear distinction in their seniority levels to prevent conflicts and ensure that the PO can learn and grow under the guidance of the PM.

Core Principles of Product Teams

1. Vision and Strategy

Each product team must operate with a clear vision and strategy that aligns with the broader company goals. This vision should guide the team's daily activities, ensuring that all efforts contribute to a larger purpose. The team’s strategy should be dynamic, evolving as the team learns and adapts. The PM often plays a key role in defining and refining this strategy.

2. Measurement of Success

To determine the effectiveness of a product team, it’s essential to have well-defined Key Performance Indicators (KPIs). These KPIs should cover both product-specific metrics and broader business outcomes. Without clear metrics, a team’s contributions may become unclear, leading to a lack of direction and purpose.

3. Alignment with Target Audience

Product teams should have a well-defined target audience. Ideally, this should be a focused group rather than a broad or diverse set of users. If the team’s focus is too scattered, it can lead to diluted efforts and ineffective solutions. For internal products, the team must align its objectives with internal stakeholders while maintaining autonomy to innovate and solve problems effectively.

4. Autonomy and Ownership

While autonomy is crucial, it comes with responsibility. Product teams should be empowered to make decisions but must also be aware of the broader implications of those decisions. This includes understanding dependencies with other teams and systems, and ensuring that their actions do not negatively impact other parts of the organization.

5. Alignment with Technical Architecture

Product teams must have clear ownership over specific technical systems, including APIs, databases, and other infrastructure components. This ownership ensures accountability for maintenance and improvements, preventing issues from falling through the cracks. Clear ownership also facilitates more efficient collaboration between teams.

6. Team Size and Structure

The optimal size for a product team is typically around 9 people. This size allows for effective communication and collaboration without becoming unwieldy. The "two-pizza rule" popularized by Jeff Bezos is a good guideline: if a team cannot be fed with two pizzas, it’s likely too large. Overly large teams can lead to communication breakdowns and inefficiencies, so it may be necessary to split them into smaller squads.

7. Alignment with Investment Strategy

Finally, product teams must align with the company’s overall investment strategy. Resources should be allocated based on where the company sees the most potential for growth and impact. However, it’s important to maintain team stability and avoid frequent reassignments, which can disrupt team dynamics and hinder progress.

By understanding these core principles and the distinct roles within a product team, organizations can create effective, mission-driven squads that are well-equipped to deliver valuable products that align with both user needs and company objectives.