71: John Cutler - How to structure a product organization
Aug 18, 2024
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In this discussion with John Cutler, an expert in scaling collaborative product organizations, he tackles the challenges of growth in team structures. John emphasizes the necessity of a clear operating model to avoid pitfalls like misalignment and silos. He introduces the concept of 'scaffolding' for navigating change and highlights the importance of shared language among teams. Learn why investing in teams, products, and outcomes matters more than just focusing on projects. His insights offer valuable strategies for fostering collaboration and accountability in dynamic environments.
Establishing a clear operating model with defined roles and responsibilities is essential for efficient collaboration in growing organizations.
Cross-functional initiatives often fail without structured frameworks, necessitating cohesive communication among diverse teams for successful project outcomes.
Promoting a culture of continuous improvement and adaptability enables organizations to evolve their operational models and enhance overall effectiveness.
Deep dives
The Importance of Clear Product Management Roles
Establishing a well-defined product management structure is crucial for any organization’s success. In effective companies, key roles such as the product manager (PM) and engineering manager (EM) work collaboratively but still maintain distinct responsibilities that contribute to the overall product strategy. This separation of roles allows the teams to hold both the PM and EM accountable for the project's success, ensuring that product decisions are aligned with engineering feasibility. Moreover, having clear delineations can help mitigate confusion and overlapping responsibilities, leading to a more streamlined workflow.
Challenges of Scale in Growing Organizations
As organizations expand, they often face growing pains that can disrupt workflows and productivity. Initially, small teams may function well, but as more teams are added, things can break down without a clear operating model. It becomes essential to document processes and establish guidelines to clarify how functions interact across teams. By documenting these structures, companies can prevent misunderstandings that typically undermine collaboration, ultimately leading to more cohesive product development.
Need for Cross-Functional Collaboration
Cross-functional collaboration is often a challenge in growing organizations due to the increased complexity in communication and coordination among various teams. Many projects that require input from multiple departments like engineering, design, and finance tend to fail if there’s no unified operating model in place. Companies must recognize this and work toward creating cohesion across functions instead of allowing each team to operate in silos. The establishment of a comprehensive framework helps ensure that all groups work synergistically toward common goals, improving overall efficiency and outcomes.
The Role of Cultural Values in Organizational Health
Cultural values play a significant role in shaping how individuals within a company interact and address issues. However, simply stating values such as 'honesty' or 'transparency' without providing context can often lead to misunderstandings and a lack of accountability. It is crucial to define specific behaviors associated with these values and to establish processes for addressing concerns when they arise. A clear set of expectations regarding how employees should communicate issues can help foster a healthier work environment and promote constructive problem-solving.
Embracing Flexibility in Operational Models
Organizations need to be adaptable with their operational models, recognizing that rigidity can cause more harm than good. By introducing expiration dates for processes and encouraging teams to evaluate their effectiveness regularly, companies can avoid stagnation. This iterative approach allows teams to experiment with new methodologies and adjust based on what works best. Establishing a culture of continuous improvement fosters innovation and helps organizations respond more effectively to challenges.
The Role of Anthropology in Understanding Workplace Dynamics
Observing and understanding the unique cultural dynamics of an organization can significantly enhance a leader’s ability to drive change. Conducting an anthropological analysis, such as shadowing teams and evaluating interactions, provides invaluable insights regarding how work truly gets done within the organization. Leaders who take the time to assess everyday practices can identify pain points and opportunities for improvement. This in-depth understanding enables them to propose targeted changes that resonate with team members and ultimately create a more effective working environment.
John Cutler on the challenges of scaling and operating a collaborative product organization.
We discuss different mental models for how different functions work together as teams and why it’s important to clarify and document the operating model, especially during times of growth, turnover, or changing strategies.
John talks about the concept of scaffolding is introduced as a way to navigate the process of change and improvement and why most crossfunctional initiatives fail.
Takeaways
Define in an operating model team sizes, roles, and responsibilities
Reduce single points of failure and promote shared accountability
Establish a shared language around team and domain evolution
Stay firm on the chosen operating model and evaluate it within a specific timeframe
Sound Bites
"We invest in teams, products, and outcomes, not individual projects and deliverables."
"What are the valid reasons to ask for money and what kind of rigor are you going to put for them for their team?"
"Teams respond well if there are a small number of things that people are stubborn about."
Chapters
06:45 The Need for an Operating Model in a Growing Company
08:04 Running a Collaborative Product Organization
14:32 The Challenges of the CPO and CTO Tandem
19:26 The Importance of Clarifying and Documenting the Operating Model
29:00 Scaffolding and Navigating Change
38:23 Team Size and Misalignment in SaaS Teams
39:18 Investing in Teams, Products, and Outcomes
41:27 Valid Reasons to Ask for Money and Team Rigor
45:03 The Importance of Being Stubborn
46:46 The Power of Enable Constraints
51:54 Defining Team Sizes and Roles
01:05:30 The Role of Engineering Managers in Teams