When Startups Should Establish a Product Function
In the early days of any startup, growth is fueled by rapid experimentation and innovation, with everyone contributing to product development. As the company grows, however, this free-flowing approach starts to show its limitations. Without clear ownership, structure, and guidance around product, decisions become fragmented, priorities misaligned, and growth stalls. When this happens, implementing "product as a function" becomes a necessity—not just to bring order but to ensure sustainable, scalable growth.
The Evolution from Product as a Task to Product as a Function
Initially, product development in a startup is task-based, focused on execution—building the MVP, iterating based on customer feedback, and pushing updates quickly. But as the company matures, so does the complexity of its product, market, and customer needs. At this point, product development can no longer be a series of isolated tasks—it must evolve into a cohesive, strategic function to keep pace with growth.
Transitioning to a defined product function is a pivotal moment for any organization—it positions product as the central hub, aligning market insights, customer needs, technical capabilities, and company goals. But this shift is far from a one-size-fits-all process. Each organization’s unique personality, team dynamics, and role structures demand a tailored approach.
Through hands-on experience as the first product leader in several organizations, I’ve seen firsthand how contributions vary and responsibilities often span departments, shaped by each company’s distinct growth trajectory and history. This has taught me the critical importance of adapting strategies to fit the culture, goals, and dynamics of each team. By doing so, the product function not only thrives but becomes a cornerstone of organizational success and innovation.
The Challenges of Implementing Product as a Function
Establishing product as a function isn’t merely about creating structure—it requires a cultural shift across the organization. One of the most significant hurdles is overcoming key challenges that can make or break the success of the initiative:
Securing buy-in at every level: Gaining collective support across leadership, teams, and individual contributors is critical. Without alignment, even the most well-thought-out product strategy risks falling flat. My approach involves communicating the function’s benefits in ways that resonate with each team’s goals and priorities, helping them understand how it supports both their objectives and overall company growth.
Clearly defining roles and responsibilities: Establishing a product function often means redefining existing roles to make them more focused and aligned with the company’s objectives. This can be challenging, as it impacts how individuals perceive their contributions and requires thoughtful communication to ensure alignment and minimize resistance.
Developing and executing a robust playbook: Embedding product as a function requires creating frameworks and processes that optimize collaboration, prioritize efforts, and measure success. Without a clear playbook, teams risk misalignment or focusing on reactive tasks rather than strategic growth initiatives.
Addressing these challenges is critical to establishing a product-led culture. With dedicated leadership, a structured product function empowers teams to focus on high-impact initiatives with measurable outcomes, aligning efforts to ensure the organization grows strategically rather than reactively.
Why Product as a Function is Critical to Startup Growth
Establishing a product function is a pivotal step for any growing startup. It brings structure, clarity, and focus, helping teams align their efforts and drive sustainable growth. Here’s how:
Focused Strategy and Execution: A product function ensures that all efforts are directed toward achieving a unified product vision. It prioritizes initiatives that align with long-term company goals, preventing teams from wasting resources on low-impact features. This focus allows startups to deliver meaningful outcomes that drive growth and customer satisfaction.
Sustained Customer-Centricity: As startups scale, staying connected to customer needs becomes more challenging. A dedicated product function acts as the voice of the customer, ensuring that their needs remain central to decision-making. This alignment between growth and customer value creates products that resonate and foster long-term loyalty.
Enhanced Cross-Functional Collaboration: The product function serves as a connective hub between engineering, marketing, sales, and support, breaking down silos that often hinder collaboration. By aligning these teams around shared goals, it reduces friction, enhances efficiency, and ensures a cohesive approach to product development.
By introducing a structured product function, startups can scale with intention, maintain a customer-first approach, and deliver impactful, cohesive products that support long-term success.
The Risk of Early Hiring Without Product Structure and Mentorship
Hiring product managers and other product roles too early—without an established product function—can create significant challenges. Without clear guidance, strategy, or mentorship, new hires often lack direction, leading to inefficiencies, misaligned priorities, and role confusion. These issues can be especially detrimental in startups, where alignment and momentum are critical.
Inexperienced team members particularly benefit from structured product leadership that provides mentorship and establishes expectations. A strong product leader ensures that new hires understand their roles, responsibilities, and opportunities for career growth. Through my work, I’ve seen how critical it is to invest in leadership that creates clear processes and support systems, equipping product teams to contribute effectively.
Without this leadership, companies risk high turnover, stalled initiatives, and teams lacking confidence and alignment. On the other hand, providing product leadership with mentorship and training not only empowers the team to deliver value but also drives growth that aligns with the company’s goals. Investing in this foundation early ensures that the product team becomes a driving force behind the organization’s success.
Knowing When You’re Ready for Product as a Function
Deciding when to formalize product as a function is a pivotal moment for any growing startup. While there’s no single metric that defines readiness, there are clear signals that suggest it may be time to make this transition.
One major indicator is a bottleneck in decision-making. As a company scales, founders often find themselves overwhelmed by product decisions, slowing down progress. A formal product function can distribute responsibility, enabling faster, more strategic decision-making that keeps up with the complexity of a growing organization.
Another signal is prioritization challenges. In a high-growth environment, it’s easy to become inundated with ideas and customer demands, making it difficult to focus on the highest-value initiatives. A structured product team streamlines prioritization, ensuring efforts align with long-term strategic goals and delivering meaningful impact.
Finally, role ambiguity is a telling sign. Without an established product function, responsibilities often blur, leading to duplicated efforts and confusion. This lack of clarity can stifle productivity and hinder growth. Creating a clear foundation for product roles ensures each team member understands their responsibilities and how they contribute to the company’s success.
By recognizing these signals and taking action, you can establish a product function that enhances efficiency, clarifies roles, and drives strategic growth—setting your organization up for long-term success.
Building Product as a Strategic Imperative
Establishing a formal product function is one of the most transformative steps a startup can take, redefining its trajectory and paving the way for sustainable growth. A well-structured product function aligns teams around a cohesive strategy, improves product quality by focusing on high-impact initiatives, and fosters a culture centered on delivering customer value.
However, this transition isn’t just a structural change—it’s a strategic imperative. Building organization-wide buy-in and tailoring the approach to the unique dynamics of each team are as critical as any technical process. By taking these steps, startups can lay the foundation for growth that not only lasts but thrives in an ever-evolving market.
