5. Team Organization and People Development

In any successful organization, especially in the realm of product development, structuring the team effectively and fostering the growth of team members are crucial responsibilities for a leader.

This document delves into two key aspects of leadership: organizing the team and developing people. It explores the division of responsibilities between the CTO and CPO, the importance of collaborative processes, and the tools and strategies for nurturing talent within the team.

1. Team Organization

1.1 The Roles of CTO and CPO

In a product-centric organization, the Chief Product Officer (CPO) and Chief Technology Officer (CTO) play distinct but complementary roles. Understanding these roles is essential for defining the structure of the team and ensuring effective collaboration.

• CTO Responsibilities: The CTO focuses primarily on the development and technical quality of the product. This includes ensuring the product is bug-free, improving the speed of development, and overseeing the infrastructure and operations to maintain stability, performance, and availability. The CTO is responsible for the non-functional requirements, ensuring the technical robustness of the product.

• CPO Responsibilities: The CPO, on the other hand, is focused on the business aspects of the product. This includes creating the product vision, aligning with strategic objectives, and ensuring that the product meets customer needs, driving engagement and satisfaction. The CPO is responsible for defining the product roadmap and ensuring it delivers value to the customer and the business.

Together, the CTO and CPO must work in harmony to define the team structure, determine which product teams and structural teams (e.g., data teams, DevOps teams) are necessary, and agree on the processes and tools the teams will use. While their responsibilities differ, the end goal is the same: delivering a high-quality product that meets business and customer needs.

1.2 Structuring the Team

The structure of the product and engineering teams can vary depending on the size and needs of the organization. Here are some examples:

• Small to Medium Teams (up to 130 people): In a growing company, a typical structure might include a CPO overseeing product managers (GPMs) and a UX leader, while the CTO manages engineering managers and a leader of infrastructure and security. This structure is effective for smaller teams and allows for close collaboration between product and engineering.

• Larger Teams (up to 300 people): As the organization grows, the team structure may need to evolve. You might have separate product teams focused on different customer segments (e.g., SMB vs. enterprise clients) with dedicated heads of product and UX for each segment. The CTO continues to oversee engineering and infrastructure, but with more specialized roles to manage the increased complexity.

• Very Large Teams (500+ people): In very large organizations, you might centralize leadership under an Executive Vice President (EVP) of Product Development, who oversees both the CTO and CPO roles. This structure helps maintain alignment across a vast organization but requires strong leadership to ensure all teams work cohesively.

1.3 Combined vs. Separate CTO and CPO Roles

Organizations can choose to either combine the CTO and CPO roles into a single position or keep them separate. Each approach has its advantages and disadvantages:

• Combined Role: Combining the CTO and CPO roles into one position can streamline decision-making and reduce the risk of silos forming between product and engineering teams. However, this role can be highly demanding, requiring someone capable of wearing both hats effectively. (recommended for teams of up to 120-200 people)

• Separate Roles: Keeping the roles separate allows for more focused leadership in each area (technical development vs. product strategy). However, this can lead to challenges in alignment and increased coordination efforts between the two leaders. The key to success in this structure is ensuring that the CTO and CPO work closely together and maintain constant communication.

1.4 Preferred Structure

While both structures have their merits, a combined CTO/CPO role is often preferred for its ability to ensure alignment across the product development team. This approach requires a leader who can seamlessly transition between the technical and business aspects of the product, facilitating collaboration and minimizing the risk of misalignment.

2. People Development

Developing talent within the team is a fundamental responsibility of any leader. Effective people development ensures that the team members grow in their roles, remain motivated, and contribute to the success of the product and the organization.

2.1 Key Characteristics of a Good Product Manager

To effectively develop team members, it’s important to recognize the key characteristics that define a successful product manager:

1. Empathy: The ability to understand and share the feelings of others, whether customers, stakeholders, or team members.

2. Communication Skills: The capacity to clearly convey ideas and information across different levels of the organization, adapting the message to the audience.

3. Time Management: The skill to prioritize tasks and manage time effectively, ensuring that the most important work is completed on time.

4. Technical Understanding: A good product manager should be aware of new technologies and their impact on the product, even if they are not directly involved in the technical implementation.

5. Business Acumen: Understanding the business side of the product, including revenue models, market positioning, and competitive landscape.

6. Curiosity: An innate desire to learn and explore new ideas, trends, and technologies.

7. Domain Expertise: Deep knowledge of the industry and context in which the product operates, whether it’s finance, healthcare, or any other sector.

2.2 Key Characteristics of a Product Leader

For a Head of Product or similar leadership role, three characteristics are particularly crucial:

1. Empathy: Essential for managing expectations, both within the team and with external stakeholders. A product leader must understand the needs and concerns of all parties involved.

2. Communication Skills: A product leader must be an excellent communicator, capable of articulating the product vision, strategy, and progress to a wide range of audiences, both internally and externally.

3. Business Acumen: A deep understanding of how the business operates is critical for making strategic decisions that align the product with the company’s goals.

2.3 Tools for People Development

Effective people development requires regular interaction, feedback, and structured evaluation. Here are some key tools and strategies:

2.3.1 One-on-One Meetings

Regular one-on-one meetings are a cornerstone of people development. These meetings, ideally held weekly, provide a dedicated space for discussing work progress, personal development, and any concerns or issues. The agenda should be flexible, allowing for both professional and personal topics to be addressed. Documenting these meetings can help track progress and ensure continuity in discussions.

2.3.2 Feedback and Performance Evaluations

Providing timely and constructive feedback is crucial for helping team members grow. Feedback should be:

• Necessary: Only give feedback when it’s genuinely needed to help the person improve.
• Immediate: Provide feedback as close to the event as possible to make it relevant and actionable.
• Transparent and Empathetic: Be clear about what needs to be improved, but also consider the context and challenges the individual may be facing.

Performance evaluations, typically conducted semi-annually or annually, provide a more formal assessment of a team member’s competencies, alignment with company values, and achievement of goals. This process should be collaborative, involving both self-assessment and discussion with the leader.

2.3.3 Promotions and Salary Increases

Promotions and salary increases should be decoupled from performance evaluations to avoid focusing too much on compensation rather than development. There are two main approaches to promotions:

• Promotion Pushed: The individual is promoted once they have already demonstrated the responsibilities and capabilities of the next level. This approach ensures readiness but can lead to frustration if the person feels undervalued.

• Promotion Pulled: The individual is promoted based on their potential to perform at the next level. This approach can be more motivating and helps retain talent by recognizing potential early.

The promotion pulled approach is often preferred as it challenges individuals and keeps them engaged by recognizing their potential and providing opportunities for growth.

Conclusion

Organizing the team effectively and focusing on the development of people are key responsibilities of a product leader. By understanding the distinct roles of the CTO and CPO, structuring the team to maximize collaboration, and using targeted strategies for people development, a product leader can create a cohesive, motivated team that is well-equipped to deliver outstanding products. Through regular communication, constructive feedback, and strategic promotions, leaders can ensure their teams continue to grow and contribute to the long-term success of the organization.