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Lenny's Podcast: Product | Growth | Career cover image

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Lenny's Podcast: Product | Growth | Career

INSIGHT

Why Big Companies Struggle with Product Innovation

🗣️ "Steve Jobs shared his theory from 1995 [...] His argument was as a company gets bigger, product historically became less important."

  • As companies grow, product often becomes less important than marketing, sales, and finance.
  • When innovation slows, these functions become the primary drivers of growth (or cost-cutting).
  • Over time, leaders emerge from these non-product areas.
  • Good product people tend to leave such companies for environments that value product more.
  • This creates a cycle where big companies struggle to retain product talent and innovate effectively.

Key takeaway: Steve Jobs' 1995 theory explains why big companies often struggle with product: Their focus shifts away from product, leading to a loss of talent and innovative spirit.

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