A VC approach to product frameworks

With so many potential product frameworks to follow, choosing the right approach can feel overwhelming. How do you balance maintaining a product with innovation? In this episode, Dave Bottoms, General Manager & VP of Product at Upwork, shares how his VC (venture capitalist) mindset and 40/30/30 approach to product management enable a balance between existing products while still catalyzing innovations. We also get into Dave’s key principles that guide his decision-making.?

Let’s dive into our main takeaways.?

Listen to the full episode here

Kyle's takeaways: Allocating resources strategically

One key aspect of our conversation with Dave that resonated with me was the importance of adopting a venture capitalist (VC) mindset when it comes to product frameworks. Dave's 40/30/30 approach, allocating 40% to existing products, 30% to incremental innovations, and another 30% to groundbreaking initiatives, provides a strategic perspective on resource allocation. This balanced distribution, as emphasized by Dave, addresses both current success and future growth needs.

“If you had your portfolio divided by 40% of big ideas… Your capacity is earmarked against those big rocks. 30% is against the near term things that you have a pretty high degree of confidence that you can execute against… Then the final 30% is to keep the lights on, pay down your tech debt, fix your bugs. Leave room in your portfolio for the sometimes unglamorous but necessary work that PMs need to do to polish the features.”

Another highlight was the significance of a growth team dedicated to achieving a specific ROI. As Dave pointed out, this team plays a pivotal role in moving metrics and contributing to the overall success of a product. It's not just about ideation; it's about measurable results, and having a team solely focused on that brings a level of precision to the product development process.

“There are growth teams that live and die by optimizing a current product, and I call those metric movers. You have a very clear metric in mind. You're going to try and move that metric by making the product or the feature that much better. These are the things that pay the bills. Ultimately, you want to be constantly tuning and getting better. Teams that are aligned with actually moving a metric and demonstrating that they have features, capabilities, and even innovations, but when they're anchored on moving a particular metric, that's one approach.”

Lukasz’s takeaways: Top-down management and adaptable principles

What stood out to me was Dave's acknowledgment of the value in working with experienced senior individuals for managing larger products. The top-down perspective involves strategic decision-making from the leadership level, ensuring that the vision and goals set by the leadership trickle down effectively. It's not just about managing products; it's about orchestrating a symphony of expertise for optimal outcomes.

“40, 30, 30 are the guide posts that I give, whether they're people that are managing larger teams or individual PMs, to think about balancing your big swings and your innovation with things that you know you can execute on, and not allocating 100% of your capacity because you know you're going to have to fix bugs. You know you're going to have SLAs to maintain. You know you're going to have smaller features that need attention. Allocating and actually preserving some capacity for those things are important.”

As we know, clear principles can sound like lofty ideals, but Dave dug deeper into how they simplify decision-making. I noticed how he emphasized that product management guidelines are not rigid rules—they are adaptable principles that should be adjusted based on the specific situation. When principles are well-defined and communicated, they serve as a framework guiding not only product managers but also aiding other teams in aligning with the overarching vision.

“Any PM can write a set of 3-5 principles at the outset of a project and say, ‘These are the kinds of things that I won't compromise on’. These are the kinds of things that when I need to make a trade-off decision, I'll look at my principles and say, ‘What do I want to hold true and what do I always want to ensure I'm thinking about from a particular lens?’”

Be sure to listen to the full episode of our conversation with Dave Bottoms

About the authors:?

Kyle Kolich

Kyle Kolich is the VP & GM of Product at Zuora. Kyle has a demonstrated history of working in the software industry, and leads the team of product managers and engineers to work towards products that focus on the customer experience and designing and building.

Lukasz Weber

Lukasz Weber is the Director of Product Management at Zuora. In all that he does, Lukasz’s mission is to strike the balance between customer demands for features, available technology, and strategic impact. He’s always looking to explore new avenues for delivering the right products to the right people.