Hire & Structure a Growth Team | Guide

The Paradox of Distributed Ownership and Growth Teams

A common assumption is that fostering a sense of ownership across an entire organization will naturally lead to growth. However, experience demonstrates that when responsibility is universally shared, it can paradoxically result in a lack of clear accountability.

Consequently, the introduction of growth teams can sometimes generate significant internal friction within a company.

Growth Teams and Company Performance

Data indicates a strong correlation between the presence of growth teams and substantial revenue growth. Businesses experiencing annual ARR increases of 100% or greater are twice as likely to have dedicated growth teams.

Interestingly, these teams tend to emerge more frequently once a company has established product-market fit. This typically occurs after reaching a revenue milestone of approximately $5 million to $10 million.

The Impact of Growth Teams on Product-Led Businesses

While the intention isn't to advocate for the mandatory implementation of growth teams, it's important to note the substantial benefits they can provide. Specifically, product-led businesses that utilize growth teams observe markedly improved outcomes.

These businesses experience a free-to-paid conversion rate that is double the median rate compared to those without such teams.

Securing an Early Growth Leader: A Hiring Guide

Recent product benchmark surveys indicate a significant shift in growth team reporting structures. Previously often aligned with marketing and sales, these teams are now increasingly reporting directly to the Chief Executive Officer.

Initial discussions surrounding growth teams proposed two potential structures: independent, dedicated teams or a “SWAT” model utilizing cross-functional experts convened periodically to address growth challenges.

However, based on my experience and data gathered from business-focused software companies, the “SWAT” team approach is often ineffective. Issues lacking a designated owner frequently remain unresolved. Growth initiatives are no exception and often receive lower priority without clear accountability.

I categorize early growth hires into three primary types:

Product-focused growth specialists: These individuals prioritize user experience optimization, friction reduction, and increased product usage. They typically possess strong analytical skills and backgrounds in product management, data analysis, or Marketing Operations.

Top-of-funnel growth specialists: Often referred to as “growth hackers,” these professionals excel at devising innovative strategies to generate virality and consistent user acquisition. Examples include HubSpot’s Sidekick and Zapier’s successful SEO strategy centered around integrations pages.

Growth strategy specialists: These experts typically join later in the process, concentrating on refining pricing strategies to maximize conversion, expansion, and customer retention. They may also oversee the launch of new product offerings, demonstrating a high level of detail orientation and organizational skill.

Regarding experience levels, it’s important to note that the field of growth is relatively new. Finding candidates with more than five years of dedicated “growth” experience is uncommon. Potential hires may have backgrounds in product, marketing, analytics, or even specialized “growth hacking” roles.

Andrew Capland, a growth leader with experience at HubSpot, Wistia, and Postscript, recommends that founders prioritize mid-level hires over executive-level positions. I similarly advise seeking mid-level employees who demonstrate ownership potential, a history of exceeding expectations, and a strong desire for continuous learning.

Given the novelty of the role, identifying suitable candidates can be challenging. Therefore, I utilize a specific set of questions when evaluating talent for the OpenView portfolio:

Can you describe your most impactful experiments? What factors contributed to their success? Conversely, what were your least successful experiments, and why?

This question assesses a candidate’s experimental approach and their ability to objectively evaluate both successes and failures. Look for evidence of structured thinking, consistent frameworks, and creative problem-solving.

Present your current product funnel and key metrics, then ask the candidate to identify areas of focus to achieve your annual revenue goals.

A strong candidate will demonstrate familiarity with industry benchmarks and pinpoint the most critical leverage points within your customer journey. This reveals analytical skills and strategic thinking capabilities.

What potential threats could jeopardize your company’s success over the next five years?

This inquiry gauges the candidate’s strategic maturity and their ability to anticipate future challenges. A capable growth leader will be acutely aware of potential risks due to their deep understanding of the product strategy.

Transitioning to a product-led approach is a gradual process, and a single hire won’t instantly transform your software. However, you can ensure dedicated focus on growth and establish a foundation for continuous improvement of the user experience.

The Initial Growth Hire: A Starting Point, Not a Solution

Securing your first growth-focused team member is often seen as the launch of significant expansion. However, it’s crucial to understand that this individual won't deliver results in isolation.

Under-resourcing a growth lead is a common pitfall. Sustainable growth requires a dedicated team, not a single person attempting to handle everything.

Expanding Beyond Sales and Marketing

Although many product-led growth strategies initially appear to involve sales and marketing functions, successful implementation necessitates broader support.

Expect to see accompanying roles opening up within product management and engineering. These positions are vital for translating successful tests and insights into tangible product improvements.

A single hire, regardless of their talent, will inevitably encounter limitations without the necessary infrastructure.

The Need for a Supporting Team

A skilled growth hire will undoubtedly generate innovative ideas. However, these ideas require a team to transform them into actionable experiments and ultimately, into implemented features.

Consider this: a strong growth lead needs resources to validate concepts, analyze data, and iterate on solutions. This necessitates a collaborative environment.

• Experimentation requires engineering support.
• Data analysis demands analytical expertise.
• Product iteration relies on product management.

Therefore, view the initial growth hire as the catalyst for building a comprehensive growth team, rather than a standalone solution.

The Urgency of Growth Initiatives

Currently, opportunities for growth are exceptionally plentiful. LinkedIn presently features over one million job postings, with an additional 50,000 new listings appearing daily.

For organizations aiming to utilize their product to drive growth, the optimal time for action has already passed. Every subsequent moment of delay represents a critical disadvantage.

Strategic implementation is paramount in this competitive landscape.

Understanding the Current Market

The sheer volume of available positions indicates a significant demand for individuals capable of fostering expansion. This heightened competition necessitates a proactive approach.

Businesses must prioritize leveraging their offerings as catalysts for growth to maintain a competitive edge.

The Importance of Timely Action

• Delaying growth strategies can result in lost market share.
• Rapid response to market opportunities is crucial for success.
• Continuous optimization and adaptation are essential.

The current market conditions demand immediate and decisive action from companies seeking to capitalize on growth potential. A swift and well-executed strategy is no longer a benefit, but a necessity.