From Start-Up to Scale-Up: Growth Stage Wisdom From Tommi Forsstrom, CPO at Workstep
Apr 18, 2023
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Tommi Forsstrom, a product management executive, specializes in helping companies navigate the growth stage. He discusses the challenges of scaling a business, including killing features and transitioning to a standard payment system. He also shares insights on job hunting as a sales process and lessons from Stripe's growth stage success.
The growth stage of a company requires a transition to a more focused and strategic approach, identifying what's working and what's not and finding the tightest connection between the product and the market.
Killing features in a product is a difficult skill in the growth stage, requiring diligence, research, and contingency plans to minimize negative impacts and provide off-ramps and transitions.
Deep dives
Challenges of the Growth Stage
The growth stage of a company, typically from 10 million to 100 million in revenue, presents unique challenges. After hustling through the early stages, companies often face revenue growth stalling, increasing costs of mistakes, organizational dysfunction, and complicated technology. This stage requires a transition from instinct and intuition-based decision-making to a more focused and strategic approach. Identifying what's working and what's not is crucial, as well as finding the tightest connection between the product and the market. It becomes necessary to do more with less, streamline efforts, and seek leverage.
The Importance of Killing Features
Killing features in a product is a difficult but essential skill for product people. Companies in the growth stage often have a multitude of features, some of which are not being used by customers or do not contribute to the product's success. Removing such features can be challenging, especially in the B2B space where brand damage and disruption to businesses can occur. The key is to approach it with the same diligence and research as building a feature, and to provide off-ramps and transitions to minimize negative impacts. Having contingency plans for features that may not work is crucial.
Niche Specialization and Job Hunting
Tommy Forstrom's journey from software engineering to product leadership involved discovering his passion for the growth stage of companies. Specializing in this area became his niche expertise. When it comes to job hunting, Forstrom employs a matrix approach. He evaluates competing opportunities based on various criteria, assigning weights to each and normalizing the scores. However, he emphasizes the importance of also considering personal feelings and intuitions about the readouts. Furthermore, Forstrom compares job hunting to enterprise sales, where having a diverse pipeline and learning from every interaction is essential. He advises job seekers to send CVs even to companies they may not initially be excited about and to iterate on the job hunt process.
“Their revenue growth is stalling. Their cost of mistakes is going up, and everything is stalling and slowing and getting harder.” For most people that doesn’t sound like a job opportunity with much appeal, but it’s the point where Tommi Forsstrom usually joins a startup. Tommi is a product management executive who specializes in helping companies navigate “the growth stage,” that adolescent era of startup development where a company has found product-market fit and needs to scale – and to do that they need to make some hard choices.
On this episode, Tommi walks us through the awkward years just after a startup becomes a scale-up, and breaks down how he shepherds a company to the next level. Tommi will share his framework with us, how hard it is to “shove rabbits back into hats” and kill products, and the tough choices he made as VP of Product at Teachable. Plus, how he’s building software to help frontline workers as Chief Product Officer at Workstep. We also hear how Tommi approaches career growth, with practical tips for job seekers.
This is Crafted from Artium: a show about great products, and the people who make them. At Artium, we help startups and enterprises build incredible products, recruit high-performing teams, and achieve the culture of craft they need to build great software long after we’re gone. Check us out at thisisartium.com