The Transition from Founder to New Product Leader

You know that feeling when you finally collapse onto your hotel bed after a long international flight? You're lying there, staring at the ceiling, and it suddenly hits you: "Just this morning, I was literally on the other side of the world!"

Well, that's how I feel about my career right now, especially after going through some pretty wild experiences in the past season: two acquisitions, launching the product organization at three start-ups, and establishing four product organizations from scratch. The last couple of months have been a much-needed time for me to rest, reflect, and recharge. However, during a coffee chat with a mentor, she offered me some insightful advice: "Hey, Michael, why don't you take a moment to jot down all your learnings? You've spent eight years as the founding product leader at BombBomb. What have you learned for sure?" Taking her suggestion to heart, I began outlining the lessons, eventually narrowing it down to six things I'm absolutely certain about when it comes to growing a product from $0 to $25 million in just under eight years. The following represents the first lesson, which is typically where things can get a bit tricky right from the start- the transition!

Lesson One

The transition from founder to new product leader brings about significant changes in responsibilities and dynamics within a company. Introducing the first product leader can be exciting for various reasons. For the founder, it signifies a reconnection with the company's vision and strategy, while for a technical leader, it may mean returning to coding or architectural planning. However, it's important to note that both roles previously handled product-related responsibilities, leading to potential relational friction during such transitions.

Typically, the founder already manages numerous responsibilities, including interviewing customers, addressing pain points, and closely collaborating with builders. Consequently, the new product leader inherits established rituals and routines in the product process and strategy from one of the most influential individuals in the company- their new boss!

In this lesson, we'll quickly explore the key areas new product leaders should focus on during their first 90 days: Fluency, Relational Integrity, and Bounce-back Ability.

Fluency

New leaders must balance their past experiences while learning the unique language of their new business. However, few achieve this balance, often speaking an unfamiliar language to their already apprehensive teams. Like a founder, your new product leader requires fluency in company strategy, financial models, and customer realities. This is crucial because as the founder steps back, the direct line between software builders and business strategy is often perceived as severed, prompting some employees, particularly those who worked closely with the founder, to depart. Business fluency will bridge the gap between the executive and building teams and help allay fears of change.

Relational Integrity

Similar to a CEO, a product leader must prioritize cultivating relationships across the organization. The role of a Product Manager is widely recognized as one of the most cross-functional in the company. In his book "Empowered," Marty Cagan emphasizes the importance of relational integrity in garnering future support for product strategy and direction. Simply put, you're establishing credibility to answer the inevitable question, "Why should this person decide what to build?" And that's a valid question! Only deliberate investment enables this level of stakeholder support. A CEO or founder should regularly communicate with other department heads to assess whether the product leader has built this trust. I expand on this point more in lesson six, Empowering Product Teams for Success! Feel free to email me at [email protected] for a full copy of "6 Lessons."

Bounce-back Ability

In my experience working with entrepreneurs, resilience emerges as a crucial factor in overcoming setbacks and propelling business advancement despite challenges. Thus, when hiring a first product executive, it becomes essential to assess how they've handled challenges and failures themselves. It's vital to be curious about their recovery process. Without close alignment with the founder, conflict becomes almost inevitable. Below, The Thinking Wavelength, developed by Tom Paterson, is showcased as a great tool for founders to determine alignment in thinking styles. In the era of AI-generated resumes, personality and thinking assessments are progressively gaining importance in grasping the true essence of individuals beyond digitally produced profiles.

In each of the "6 Lessons," I offer resources aimed at equipping new founders for success. Feel free to email me at [email protected] for a full copy of "6 Lessons." The following insights are adapted from Deb Liu’s work, "Make The First 90 Days Count," drawing from her experiences at Facebook and Ancestry, companies whose product development processes I've admired for years. Ms. Liu's guidance particularly focuses on the critical onboarding period, namely the first 90 days of a leader's tenure. For those interested in further exploration, click on the below illustration for a link to Deb Liu’s Substack.