‘Product-led’ has been such a buzzword in recent years. The story goes that product-led companies not only harness great work cultures but are also set up for commercial success by this very culture and way of working. But what does it mean to be ‘product-led’, and why is this approach so beneficial? How can you, as a VP Product or Chief Product Officer (CPO) instil a product-led culture within your organisation?
What Does ‘Product-Led’ Mean?
A product-led organisation places the product at the centre of its strategy. Growth, customer acquisition, and retention are driven primarily by the product itself. Here are some prime examples:
Slack: From its inception, Slack focused on creating a seamless, user-friendly communication platform that addressed the specific needs of its users (initially internal ones only until they pivoted). The product was so intuitive and valuable that it quickly spread within teams and organisations through word-of-mouth, without the need for aggressive sales tactics.
Canva: I’ve always been amazed at how great and easy Canva is to use. By prioritising ease of use and accessibility, Canva made design tools available to everyone, not just professionals. This product-led approach allowed it to grow a massive user base rapidly.
Give me an example of what’s NOT being product-led
Well – I do feel for Blackberry here. Check out the great film and you’ll wince as you see how an organisation failed by NOT being product-led. Blackberry failed to listen to users and spent so much time investing in marketing that the core product suffered immeasurably.
Why Work in a Product-Led Organisation?
Working in a product-led organisation has several advantages:
User-Centric Focus: These organisations prioritise user experience, leading to highly satisfied and loyal customers. When a product meets and exceeds user expectations, it naturally drives engagement and retention.
Sustainable Growth: By relying on the product to drive growth, companies can achieve scalable and sustainable expansion. The product itself becomes the primary vehicle for customer acquisition, reducing the need for costly marketing and sales efforts.
Innovation and Agility: Product-led companies are often more agile and innovative. The feedback loop between the product team and the users is short, enabling rapid iterations and continuous improvement.
Bringing a Product-Led Culture to Life
As a CPO or VP Product, your role is pivotal in fostering a product-led culture. Here are some strategies to help you achieve this:
1. Embed User-Centricity in the Team: Ensure that every team member, from engineering to marketing, understands and prioritises the end-user. Encourage frequent user research, feedback sessions, and usability testing. Make user insights a core part of your decision-making process.
2. Foster Cross-Functional Collaboration: Break down silos within your organisation. A product-led culture thrives on collaboration between different functions, such as design, development, marketing, and sales. Regular cross-functional meetings and collaborative projects can help align all teams with the product vision.
3. Empower Your Team: Give your product teams the autonomy to make decisions and take ownership of their projects. Empowered teams are more motivated and can move faster, which is crucial for innovation and quick iterations.
4. Prioritise Continuous Improvement: Instil a mindset of constant learning and improvement. Use data and analytics to track product performance and user behaviour. Encourage your teams to experiment, learn from failures, and iterate quickly.
5. Communicate the Vision: Clearly articulate the product vision and strategy to the entire organisation. Ensure that everyone understands how their work contributes to the overall goals. A shared vision fosters a sense of purpose and alignment across the company.
6. Invest in Tools and Training: Provide your teams with the necessary tools and resources to succeed. Invest in training and development programs that enhance their skills and knowledge, enabling them to deliver better products.
7. Celebrate Successes and Learn from Failures: Recognise and celebrate achievements to motivate your team. Similarly, create a safe environment where failures are seen as learning opportunities rather than setbacks.
Doing all of this is not easy if you’re flying solo. Creating a product-led culture is much more than just being user centric. For me product-led means being inclusive, being kind, making good decisions and leaning into being an empathetic but strong leader. Others differ in their approach and concentrate more on unit economics and VC wins. For me I believe the joy in product lies in the very humans that build the incredible things that we use everyday. If you’re going to build up that culture in your company then you have to sow the seeds of that product magic that drives everyone else forward to think the same. Good luck!