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Organizational Design

9 claims4 moments3 on the cutting room floor

Lenny's Written Position

Product managers are not yet common or well understood in web3 because the 0-1 phase depends more on technical infrastructure, cryptoeconomics, and community than on traditional PM skills.

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The PM role varies dramatically across companies along two axes: which skills matter most and how much influence a PM has, with Zynga at the mini-CEO end and Apple at the project-manager end.

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Every company should create a small incident response team with a single DRI, full authority to change anything, blown-up OKRs, and daily standups to move fast during a crisis.

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At Airbnb there was a very strong correlation between teams that drove significant impact and teams that were organized around outcomes rather than product surface areas.

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Wherever the majority of your growth comes from determines who is driving the ship: product-led companies like Dropbox, engineering-led like Stripe, sales-led like Salesforce, or marketing-led like DTC brands.

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When pursuing an initiative in an ambiguous area of ownership, communicate your intent and proceed rather than blocking on approval, creating a culture of impact over ownership.

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Organizing teams around outcomes rather than features was a critical ingredient in Airbnb's success because it breaks the idea of clean divisions of product surface-area ownership and prevents over-optimizing features that aren't driving impact.

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The root cause of nearly all bad planning processes is a lack of understanding of roles -- who is responsible for what, when.

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The most important product to get right in a product org is how you organize your people; the ideal is dedicated cross-functional teams with a clear mandate that can move autonomously, and any missing resource or added dependency cuts impact immensely.

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Podcast Moments

Ray Cao00:00:18
How do you actually solve the puzzle by connecting all the dots together? Just like how I see some of my friends, their kids playing Legos, if you don't really see the full picture, you won't be able to make the Lego as one thing at the end of the day. You have to see the other pieces.

Inside TikTok: Culture, strategy, monetization, and more | Ray Cao (Global Head of Monetization Product Strategy and Operations) · Ray Cao

Heidi Helfand00:00:00
Change and growth are natural parts of company evolution. Don't fear reteaming or reorgs; instead, embrace these changes, actively plan for them, and leverage the five reteaming patterns to create a dynamic and adaptive organizational culture.

The art and wisdom of changing teams | Heidi Helfand (author of Dynamic Reteaming) · Heidi Helfand

Eeke de Milliano00:00:00
Process, by definition, is variance reducing. You're introducing it because you worry that the variance in your org is too high. The cost of that is while you are reducing the standard and bringing folks up to the average, you're also bringing other folks down to the average. And oftentimes, the folks you're bringing down are your highest performers, your most creative thinkers.

How to foster innovation and big thinking | Eeke de Milliano (Retool, Stripe) · Eeke de Milliano

Melissa Perri00:00:03
Scaled Agile Framework came out of the desire to figure out how do we scale Scrum and different processes. I do not recommend using SAFe. Every single person I have talked to who likes SAFe, found success with SAFe, they ended up ripping it up and making it into something else.

How to create a winning product strategy | Melissa Perri · Melissa Perri

Cutting Room Floor

Guest insights on this topic that Lenny hasn't (yet) written about in his newsletters. Potential material for future posts.

Ray CaoUnsynthesized
How do you actually solve the puzzle by connecting all the dots together? Just like how I see some of my friends, their kids playing Legos, if you don't really see the full picture, you won't be able to make the Lego as one thing at the end of the day. You have to see the other pieces.

Inside TikTok: Culture, strategy, monetization, and more | Ray Cao (Global Head of Monetization Product Strategy and Operations) · Ray Cao

Eeke de MillianoUnsynthesized
Process, by definition, is variance reducing. You're introducing it because you worry that the variance in your org is too high. The cost of that is while you are reducing the standard and bringing folks up to the average, you're also bringing other folks down to the average. And oftentimes, the folks you're bringing down are your highest performers, your most creative thinkers.

How to foster innovation and big thinking | Eeke de Milliano (Retool, Stripe) · Eeke de Milliano

Melissa PerriUnsynthesized
Scaled Agile Framework came out of the desire to figure out how do we scale Scrum and different processes. I do not recommend using SAFe. Every single person I have talked to who likes SAFe, found success with SAFe, they ended up ripping it up and making it into something else.

How to create a winning product strategy | Melissa Perri · Melissa Perri