Navigating the Struggle: CPOs and CEOs in Early-Stage Startups
I talked with a dear friend who, like me, is a product person with a technology background. During our careers, we noticed specific issues that re-occur between CEOs and their CPO/VP product in early-stage startups.
Early-stage startups are characterized by their fast-paced and dynamic nature, with teams working tirelessly to bring their products to market, validate their assumptions, and gain customer traction. The roles of the CEO and CPO in early-stage startups are complex, and it’s common to have struggles between these key players.
Total Addressable Markets
One of the main struggles in this stage is the key to the gap between the views of these two personas:
I'm referring to the total addressable market (TAM) and targeted persona.
A startup’s TAM represents its product’s total potential market size. At the same time, a targeted persona refers to a specific customer segment the product is designed to serve.
A clear understanding of the TAM and targeted persona is crucial for the success of a product and, therefore, the startup.
Human Nature Requires Certainty, Which Sometimes Is Impossible
However, in early-stage startups, the TAM and targeted persona often need to be better defined, as the startup is still exploring these concepts and frequently shifts between different ones. This can make it difficult for the CPO to develop a product that meets the needs of a specific customer segment and can lead to a product that needs to be better aligned with the market demand.
The tricky part here is that human nature requires certainty, although the world around us is chaotic. And so, the CPO finds himself in a position where he needs to deliver a clear roadmap, although the ground keeps shifting.
What can be done? Communication, Communication, Communication. I firmly believe in the saying, “culture eats strategy for breakfast”. Here is an excellent opportunity for the managing team to showcase to the whole startup how excellent communication skills make a difference.
In reality, this means that each one of these persons should try to wear the other one shoes, understand why he needs the things he asks for and communicate how to mitigate the boundaries so each one gets the most out of what he needs. No magic here, just plain old real listening and talking techniques.
Things You Can Try
Here are the things I would consider trying when this struggle emerges:
- Communicate the process: When struggling to find a Total Addressable Market (TAM), it is vital for the CPO to communicate the process they are using to gather data and conduct market research. The CPO should provide regular updates to the CEO on the progress being made and any challenges that are being faced. This will help the CEO understand the effort being put into finding the TAM and give them confidence that the CPO is taking the proper steps. The CEO, at this stage, is most likely in constant friction with the market and should provide feedback and his take on the market.
- Highlight the importance of customer feedback: The CPO should emphasize the importance of customer feedback when trying to find a TAM. By highlighting how customer feedback is being used to inform product development, the CPO can demonstrate how the product is tailored to meet the target market’s needs. This will help the CEO understand the value of customer feedback and its importance in the product development process.
- Be open to pivoting (regularly at the beginning): Finding a TAM can be a complex and iterative process and may require pivoting the product or business model. The CPO should be open to this possibility and be prepared to discuss it with the CEO. Being open to pivot will show the CEO that the CPO is flexible and willing to adapt to market changes, which will help gain their trust and support.
- High-level roadmap: I like this concept for all stages. Still, it’s particularly true for early-stage startups — roadmap in a high-level fashion: “Generally, startup roadmaps should be short-term and focus on biggest-bang-for-the-buck features/business questions to solve.”.Often, roadmaps from a startup company don’t even include dates but focus on the following few strategic initiatives they need to focus on. Read more on this from the well-known Marty Cagan here.
Life is full of Black Swans, and as product leaders, we should be aware of that and build our roadmaps slowly and steadily, being aware of the open questions and many unknowns while giving our CEO a quiet mind.
Special thanks to Tremis Skeete, Executive Editor at Product Coalition for the valuable input which contributed to the editing of this article.
