Config 2024: The heirloom tomato org chart (Nan Yu, Head of Product, Linear)

Summary

The speaker shares insights on startup org chart structures, critiquing the uniformity inspired by the 2012 Spotify model. They discuss the importance of aligning team structure with product goals, emphasizing the pitfalls of symmetrical team setups and advocating for a more purposeful, asymmetrical approach that reflects the unique needs of each product. The talk highlights the impact of Conway's Law, the challenges of scaling, and the necessity of making informed, context-aware decisions when structuring teams for optimal productivity.

Takeaways

• 📈 The importance of org charts in startups is often underestimated, but they play a crucial role in shaping the product and the company's direction.
• 🌐 The speaker observed a lack of variance in team structures across early and mid-stage startups, often defaulting to a model inspired by Spotify's 2012 paper without fully understanding its context or applicability.
• 🔍 The speaker's experience with startups revealed that team structures often led to a loss of focus and increased technical and product debt, contrary to the intended efficiency.
• 🤔 The key question posed is whether the current team structure truly supports the company's goals and whether team members understand how their work aligns with the company's broader objectives.
• 💡 Conway's Law is highlighted as a significant principle, suggesting that the structure of a company's team will reflect in the product it develops, emphasizing the need for a well-thought-out team organization.
• 📉 The danger of symmetrical team structures is pointed out, as they can dilute focus and lead to a product that lacks a clear main feature or direction.
• 🛠 The speaker advocates for org charts that reflect the actual shape and needs of the product, rather than following a one-size-fits-all approach.
• 🚀 Resisting the urge to create symmetrical org charts is crucial for startups aiming to focus on their main product offering and avoid spreading resources too thin.
• 📚 Historical references, such as the 'two-pizza rule' and 'high output management', are not absolute and should be critically evaluated in the context of modern communication and work practices.
• 💬 The speaker emphasizes the need for clear communication and understanding within teams, ensuring that everyone is aligned with the company's goals and their role in achieving them.
• 🌟 The conclusion encourages founders and companies to trust their intuition, start with a clear understanding of their product, and shape their org chart around that vision.

Q & A

What is the main topic of the talk in the transcript?

The main topic of the talk is the structure of organizational charts (org charts) in startups and how they can impact product development.

Why is the speaker passionate about org charts?

The speaker is passionate about org charts because they are one of their pet interests and they have spent a lot of time thinking about them and observing their impact on various startups.

What was the speaker's observation about team structures in early and mid-stage startups?

The speaker observed very little variance in team structures across early and mid-stage startups, with most teams being small, cross-functional, and covering a narrow scope of their product.

What common structure did the speaker find in many startups?

The speaker found that many startups followed a structure similar to what was described in a paper by Spotify in 2012, which included terms like squads, tribes, and chapters.

What problem did the speaker identify with the widespread adoption of the Spotify model?

The problem identified was that many startups adopted the Spotify model without considering whether it was suitable for their specific circumstances, leading to issues such as slower progress, lack of focus, and accumulation of technical and product debt.

What is Conway's Law and how does it relate to team structure?

Conway's Law states that the structure of a company's product will reflect the structure of its team. If teams are set up in a certain way, the product will likely mirror that structure.

Why did the speaker suggest that startups should resist the urge to make everything symmetrical in their team structure?

The speaker suggested that startups should resist making everything symmetrical because it can lead to the dilution of focus and resources, which is counterproductive to the main goal of the product.

What is the significance of the 'two-pizza rule' mentioned in the transcript?

The 'two-pizza rule' is a principle from Amazon that suggests a team should be small enough to be fed with two pizzas, implying that a team should not exceed a certain size to maintain efficiency and communication.

What is the speaker's view on the number of direct reports a manager should have?

The speaker believes that the number of direct reports a manager should have is not a fixed number like the commonly cited 5 to 8, but should be determined based on the context and needs of the startup.

Why did the speaker suggest that startups should start with a clear understanding of their product shape and then structure their teams accordingly?

The speaker suggested this approach because it allows startups to make purposeful decisions about team structure that align with their product goals, rather than following generic advice that may not suit their specific situation.

What is the speaker's advice on how to handle teams that are focused on less important or 'table stakes' aspects of the product?

The speaker advises that the default number of people working on less important aspects should be zero, and only assign team members to these tasks when absolutely necessary, to avoid overbuilding and maintain focus on differentiating features.