All Things Product with Teresa and Petra

Funding Projects Vs. Teams

8 snips

Jul 1, 2025

Discover how funding dynamics impact project discovery work, and why CFOs are rethinking traditional funding methods. Explore the advantages of funding teams instead of individual projects, enhancing accountability and adaptability. Learn how product teams can effectively communicate their value to finance, bridging the gap between both worlds. With insights on aligning financial and product goals, the conversation encourages a shift towards performance-driven team funding that supports sustainable growth. Finally, uncover the necessity for clear language when discussing ROI in the product landscape.

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INSIGHT

Project vs Team Funding Insight

Funding projects focuses on estimating cost and ROI before work starts.
Funding teams allows freedom to discover, enabling iterative value creation aligned with outcomes.

ADVICE

Fund Teams with Outcomes

Fund teams with clear outcomes rather than projects alone to maintain accountability.
Assigning outcomes lets CFOs understand the expected impact and ROI from team funding.

ADVICE

Translate Team Funding for Finance

Use finance-friendly naming for teams to bridge process gaps, e.g., call it the retention team instead of a project name.
Translate team funding into existing finance models to ease bookkeeping.

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What we talk about:

Why project funding clashes with discovery work
What CFOs look for in project-based funding
The benefits of shifting to funding teams instead
Step one: Fund the team, step two: Assign an outcome
Helping finance teams make the shift
Role of product ICs vs. product leaders in finance conversations
Translating between product and finance language
Naming conventions and how to make them finance-friendly
VC-style funding for teams: Fund based on learning and outcomes
Case study: Agency using per-iteration funding
Product teams understanding their cost and return
The mismatch between incremental thinking and ROI
Why product teams must aim for exponential outcomes

Key Takeaways:

Funding teams instead of projects supports flexibility, learning, and continuous discovery.
Assigning clear outcomes to teams helps maintain accountability and aligns with finance goals.
Product people (especially ICs!) can be powerful allies in helping finance understand value creation.
Understanding team costs—and expected return—is critical for sustainable product development.
Bridging the language and mindset gap between product and finance is a core leadership skill.

Resources & Links:

Follow Teresa Torres: https://ProductTalk.org
Follow Petra Wille: https://Petra-Wille.com

Mentioned in the episode:

Product vs. Project Operating Models - Teresa and Petra reference their past episode on this foundational concept.
Felix Fichtl: Profitability Unplugged: Navigating Data Gaps While Delivering Financial Insights (Felix is a CFO who spoke at Product at Heart 2024 on bridging finance and product (check out his talk if you can find it).
David Bland, in a conversation with Barry O'Reilly about his book Testing Business Ideas: A Field Guide for Rapid Experimentation, contrasts traditional annual project budgeting with an “internal VC-style” funding approach.
Tristan Kromer discussed alternative funding models that move away from traditional annual project budgeting in his Four Must-Haves in Your Innovation Process