When to Hire a Product Manager: A Guide

The Evolution of Roles in Startups and the Need for Product Management

Within the dynamic environment of nascent startups, formal job titles frequently serve a symbolic purpose. Employees often find themselves engaged in a multitude of tasks extending far beyond their designated roles. This multifaceted work style is a defining characteristic of startups, and it’s a primary reason why individuals with broad skillsets – generalists – often excel in these settings.

Nevertheless, as a company matures and its team expands, a pivotal moment arrives when the founder must establish clearly defined roles. Among these, the position of product manager can be particularly challenging to define and fill, yet it’s arguably one of the most crucial.

Insights from Founders and Operators

We consulted with startup founders and experienced operators to gather their perspectives on the optimal timing and process for hiring the first product manager. Our discussions centered around several key considerations.

• Identifying the essential qualities to seek in a candidate.
• Understanding the importance of clearly defining the role's responsibilities *before* initiating the search.
• Determining whether a technical background is a prerequisite for the position.
• Formulating effective interview questions to assess candidate suitability.
• Strategically timing the first hire to prevent premature or excessive staffing.

Successfully navigating these aspects is vital for ensuring the product manager’s contribution aligns with the company’s evolving needs. A well-defined role and a carefully selected individual can significantly impact a startup’s trajectory.

The initial product management hire represents a shift from a more fluid, all-hands-on-deck approach to a more structured and specialized framework. This transition is often necessary to maintain focus and drive product development effectively.

Avoid Appointing a Product CEO

Let's begin by considering the typical career progression. Product managers frequently transition into CEO positions or depart to establish their own ventures. Much like founders, skilled product managers demonstrate inherent leadership qualities and possess the ability to articulate ideas with clarity and precision.

Both roles necessitate an individual with a forward-thinking perspective regarding the product itself, alongside a strong focus on implementation. David Blake, previously a product manager, successfully became a serial entrepreneur in the edtech space, founding Degreed, Learn In, and, most recently, BookClub.

He attributes his prior experience to facilitating the initial prototype launch of Degreed and securing early adopters. “A crucial skill is the capacity to synthesize the collective expertise of the team and ground product decisions in insights from users and prospective customers,” Blake explained.

He further emphasized the need for someone who can translate the team’s core mission into a compelling narrative for both users and potential clients, enabling innovation, managing risk, and preventing the creation of merely incremental improvements.

The considerable overlap in skills between product managers and founders contributes to the ambiguity surrounding the role and the challenges in recruitment. Ken Norton, formerly a director of product at Figma and now an independent advisor and coach for product managers, suggests companies should first clarify what a PM is not: the CEO of the product.

“The objective is to avoid delegating product ownership entirely,” Norton stated. “The founder and CEO should remain the primary advocates and visionaries.” The product manager’s function, instead, centers on the practical, everyday aspects of “blocking and tackling.”

Norton authored a guide over 15 years ago on product manager hiring practices, and it continues to be a valuable resource for those in the field.

Defining the Product Manager Role

• Focus on daily execution and tactical decisions.
• Support the founder/CEO’s vision, rather than replacing it.
• Utilize user and client feedback to inform product development.
• Translate team mission into a compelling narrative.

Understanding the Product Manager's Role and Establishing Clear Expectations

Within a startup environment, product managers function as crucial intermediaries, facilitating communication between diverse teams. They bridge the gap between engineering and marketing, design and business development, and sales with all other departments.

The core responsibilities of this role are often difficult to pinpoint precisely, yet it represents essential infrastructure for any startup aiming for substantial growth and ambitious goals.

A highly effective product manager is a versatile generalist, but must also possess the capacity to comprehend and articulate technical processes in an accessible manner. Consequently, individuals with prior technical backgrounds, such as experience in engineering, are often preferred.

It’s important to acknowledge that product management involves a significant amount of foundational work. This work, while not always exciting or high-profile, is nonetheless vital for progress.

Clearly defining the primary functions of a product manager is essential for establishing realistic expectations. This is particularly important in Silicon Valley, where gender equity in hiring remains a persistent challenge.

Ambiguous job descriptions can lead to underutilization of talent. A lack of defined boundaries can result in individuals, particularly women product managers, being relegated to tasks such as note-taking or administrative support.

The evolving understanding of the product manager’s role has, in turn, influenced this gender-related issue. However, determining the appropriate time to introduce a dedicated product management role can be challenging.

In the initial phases of a startup, a founder, lead engineer, salesperson, and designer may collectively fulfill the responsibilities that would later be divided among specialized roles. Identifying the right moment for expansion requires careful consideration.

Adaptability is Key When Making Hiring Decisions

Lessonbee successfully secured approximately $1 million in venture funding in June and has been actively expanding its health curriculum platform since then. Similar to many emerging companies, Lessonbee initially prioritized investment in engineering talent to concentrate on developing a practical and adaptable product.

Reva McPollom, CEO and founder of Lessonbee, explains that “the central role of product management is to translate the business requirements and company expertise into detailed specifications for the engineering team to implement.”

The necessity for a dedicated Product Manager (PM) became clear following the completion of a funding round when Lessonbee operated with a team of just three individuals. Having recently finished a five-month accelerator program centered on product development, she recognized the benefit of having someone fully dedicated to this function.

“This allows me to dedicate more time to areas such as creative leadership, establishing robust public and private partnerships, communicating our company’s narrative to the media, and securing further investment,” McPollom stated. “This is especially crucial as a solo founder, where my responsibilities are potentially greater than in teams with multiple founders.”

Furthermore, “a robust product management function ensures that we remain focused on building the correct solutions that deliver lasting value to our users, rather than pursuing fleeting trends.”

However, the optimal timing differs for each organization. Snigda Sur, founder of early-stage company The Juggernaut, initially resisted the idea of hiring a product manager for her news media venture.

“Many founders take pride in possessing a strong product vision and are hesitant to delegate this responsibility prematurely,” she explained. “Consequently, founders in the early stages often fulfill the role of the ‘PM’ themselves.” Sur anticipates considering a PM hire after securing Series A funding.

“Generating ideas is relatively straightforward, but effectively prioritizing tasks for an engineering team presents a greater challenge,” she noted. “Therefore, I’m likely to seek someone with an MBA or a background in consulting, coupled with experience in engineering or computer science.”

In conclusion, echoing Norton’s perspective, there appears to be a trend towards over-hiring within the product management field. He suggests that companies may be adding PMs too quickly. A team of 10 PMs for 50 engineers could actually decrease productivity, diminishing the core function of the role: maintaining company focus.

“For startups, determining what projects will *not* be pursued – identifying the ‘nongoals’ – is among the most challenging, yet vital, aspects of company building,” he emphasized.