Founder vs Product Manager: Who is the best leader for any new product? Learn shocking facts about their roles.

Starting a new product can feel like exploring unknown territory. One major decision that startups or growing companies often face is choosing the right leader for their product. Should it be the visionary Founder who came up with the brilliant idea? Or should it be an experienced Product Manager with expertise in developing and organizing a product?

As of August 2023, 698,945 individuals listed their profiles as Product Managers on LinkedIn, showcasing the growing demand for this role. This is a significant increase from 146,333 Product Managers in 2014, highlighting a jump of over half a million in just six years. Additionally, Product Managers are often highly involved in design and go-to-market strategies, with 80% contributing to these areas, according to McKinsey & Company.

In this blog, we’ll uncover shocking facts about how founders and product managers behave when leading products—and who might be the better fit!

The Visionary Founder

The Visionary Founder is someone who creates a business with a clear idea or vision of what they want to achieve. They often think about the future, coming up with new ideas and plans that can change their industry. Their main role is to see the bigger picture and guide the company toward long-term success, making decisions that shape the direction of the business.

They inspire their team, focus on innovation, and ensure the business grows according to their vision. While they may not always handle day-to-day tasks, they are the driving force behind the company’s goals and purpose.

When a Founder Leads a Product VS Product Manager Leads a Product: What’re the Challenges

Challenges Faced by Founders:

1. Lack of Objective Perspective

• Founders are often emotionally attached to their vision. This attachment can make it hard to see problems or flaws in their product objectively. Unlike product managers, who analyze data and user feedback, founders might ignore critical insights that don’t align with their vision.

2. Limited Focus on Market Needs

• Founders can be so focused on their ideas that they overlook what the market needs. Product managers, on the other hand, are trained to prioritize user needs and market trends, ensuring the product is relevant and competitive.

3. Difficulty in Delegating Tasks

• Many founders struggle to let go of control, wanting to oversee every detail. This can lead to burnout and slow decision-making. Product managers are skilled at delegating tasks to team members, allowing for more efficient workflows.

4. Inflexibility to Change

• Founders may resist adapting their products based on user feedback or market shifts. This inflexibility can hinder growth. Product managers are typically more agile, embracing changes that enhance the product's success.

5. Struggles with Team Dynamics

• A founder’s leadership style might not always foster a positive team environment. They may not prioritize team collaboration, which can affect morale and productivity. Product managers focus on building strong team relationships and ensuring effective communication.

6. Overlooking Financial Viability

• Founders might prioritize their passion for the product over its financial viability. They may overlook cost management and pricing strategies, risking the company’s sustainability. Product managers are often trained in business strategies that balance innovation with profitability.

7. Neglecting User Testing

• Founders may skip thorough user testing, believing in their idea without validating it with real users. This can lead to launching a product that doesn't meet user expectations. Product managers prioritize user testing to ensure the product meets user needs before launch.

8. Ineffective Prioritization

• Founders can become overwhelmed by their vision and struggle to prioritize features or tasks. This can lead to a cluttered product roadmap. Product managers excel at prioritizing based on user value, market demand, and resources.

9. Time Management Challenges

• Founders often juggle multiple roles, which can lead to poor time management. This may result in critical tasks being neglected. Product managers focus on managing their time effectively to meet deadlines and project goals.

10. Risk of Burnout

• The pressure of leading a product can lead to founder burnout. They might work excessively long hours, compromising their health and decision-making abilities. Product managers generally have a more balanced approach, promoting healthy work-life practices within their teams.

Challenges Faced by Product Manager:

1. Limited Authority

• Product managers often don’t have the final say in decisions. They may need to convince other leaders or teams to support their ideas. This can slow down the decision-making process and make it harder to implement changes quickly.

2. Balancing Diverse Stakeholder Needs

• Product managers must listen to stakeholders like customers, sales teams, and executives. Each group may have different priorities, making it challenging to satisfy everyone. This can lead to conflicts and delays in product development.

3. Pressure to Deliver Results

• Product managers face high expectations to deliver successful products quickly. This pressure can lead to rushed decisions, potentially overlooking important details affecting the product's quality.

4. Navigating Cross-Functional Teams

• Working with various teams (like engineering, design, and marketing) can be complex. Product managers must ensure everyone is aligned and communicating effectively, which can be difficult if team members have conflicting priorities or work styles.

5. Managing Limited Resources

• Product managers often work with tight budgets and limited resources. They must make tough choices about which features to develop and which to postpone, which can be frustrating and stressful.

6. Data Overload

• Product managers rely heavily on data to make decisions. However, they can be overwhelmed by the sheer volume of information available. Finding the correct data to support their decisions can be challenging and time-consuming.

7. Adapting to Market Changes

• Markets can change quickly, and product managers must stay updated on trends and competitors. Adapting a product to meet new demands can be difficult, mainly if resources are already allocated to other projects.

8. Ensuring User-Centric Design

• While product managers aim to create user-friendly products, they may lack direct experience in user research or design. This gap can lead to products that don't fully meet user needs or expectations.

9. Maintaining Team Morale

• Product managers need to motivate their teams, especially during challenging projects. If they struggle to communicate effectively or recognize team members’ contributions, it can lead to low morale and decreased productivity.

10. Limited Vision

• Product managers may focus more on short-term goals than on the long-term vision of the product. This short-sightedness can result in missed opportunities for innovation and growth, making it harder for the product to stand out in the market.

Clear Solutions for Founders and Product Managers Facing Challenges in Their Business

Helpful Solutions for Founders to Overcome Challenges and Grow Their Business

1. Seek External Feedback

• Founders should actively seek feedback from team members, customers, and industry experts. Regularly conducting surveys and focus groups can provide valuable insights that help identify potential flaws in their vision. Embracing constructive criticism can lead to better decision-making and a more objective view of the product.

2. Market Research and Analysis

• Founders should invest time in market research to understand current trends and customer needs. This can be done through competitor analysis, customer interviews, and studying market reports. By focusing on what the market demands, founders can align their vision with real-world needs, ensuring the product remains relevant.

3. Build a Trustworthy Team

• Founders must hire and nurture a reliable team that can take on responsibilities. Learning to delegate tasks is crucial. Founders should create a culture of trust where team members feel empowered to make decisions. This approach eases the founder's workload and enhances the team's confidence and productivity.

4. Be Open to Change

• Founders should cultivate a mindset that welcomes change. This means regularly reviewing feedback and being willing to adapt the product based on user input. Embracing flexibility will allow founders to pivot when necessary and enhance the product's chances of success in a dynamic market.

5. Collaborative Environment

• Creating a positive team environment is essential. Founders should encourage open communication, collaboration, and team bonding. Regular team meetings, brainstorming sessions, and team-building activities can strengthen relationships and improve morale, making it easier to work together toward common goals.

6. Focus on Financial Education

• Founders should take time to understand financial management, including budgeting, pricing strategies, and cost analysis. Seeking advice from financial experts or taking courses can help them balance their passion for the product with the need for financial sustainability. This knowledge will enable them to make informed decisions that support the business's long-term viability.

7. Prioritize User Testing

• Founders should implement a rigorous user testing process before launching a product. Engaging real users early in the development stage helps validate ideas and gather essential feedback. This practice ensures that the final product meets user needs and expectations, reducing the risk of launching a product that falls flat.

8. Create a Clear Roadmap

• Establishing a clear product roadmap helps founders prioritize tasks and features effectively. Using tools like Gantt charts or Kanban boards can provide a visual representation of project timelines and priorities. This clarity allows founders to focus on what matters most and avoid getting overwhelmed by their vision.

9. Practice Effective Time Management

• Founders should develop strong time management skills. Using techniques like the Pomodoro Technique (working in focused bursts followed by short breaks) or time-blocking can help them stay organized and productive. Setting aside specific times for key tasks ensures that nothing critical is overlooked.

10. Prioritize Work-Life Balance

• Founders need to recognize the signs of burnout and prioritize their well-being. Establishing boundaries between work and personal life is essential. They should encourage a healthy work culture, promoting breaks, vacations, and time off to recharge. A balanced approach not only benefits the founder’s health but also improves overall productivity and decision-making.

Helpful Solutions for Product Manager to Overcome Challenges and Grow Their Business

1. Gaining Influence

• Product managers should focus on building solid relationships with other teams and leaders to overcome the challenge of limited authority. They can do this by clearly communicating the value of their ideas and using data and customer feedback to support their proposals.
• Collaborating closely with stakeholders and creating mutual trust will help them gain more influence in decision-making. Over time, product managers can also demonstrate the success of their strategies to build credibility and earn more autonomy.

2. Managing Stakeholder Expectations

• Product managers can manage diverse stakeholder needs by being transparent and prioritizing effectively. It's essential to set clear goals that align with the company's overall vision and communicate these goals to all stakeholders.
• They should listen to everyone’s input but focus on what will bring the most value to the product and the user. A structured prioritization framework, like the MoSCoW method (Must have, Should have, Could have, Won’t have), can help balance requests and manage expectations.

3. Handling Delivery Pressure

• Product managers can ease the pressure by breaking down large tasks into smaller, manageable milestones. This approach allows for steady progress and reduces the feeling of being overwhelmed.
• They should also focus on delivering value early, even if it’s in the form of small features or improvements. Regularly communicating progress to stakeholders can help manage expectations and reduce pressure to deliver too much too quickly. Planning for flexibility, like leaving room for adjustments or changes, can also help avoid rushed decisions.

4. Coordinating Cross-Functional Teams

• To navigate cross-functional teams, product managers should focus on improving communication. Holding regular meetings, setting goals for each team, and ensuring everyone is aligned on the product vision will help avoid confusion.
• Product managers should be approachable and encourage team members to share their concerns and ideas. By fostering an open and collaborative environment, product managers can ensure everyone works together smoothly, even when teams have different priorities.

5. Optimizing Resource Management

• When dealing with limited resources, product managers should prioritize high-impact features that deliver the most value to users. They can use tools like a cost-benefit analysis to determine which features are worth the investment.
• It’s important to be realistic about what can be achieved with the available budget and resources. Product managers should also communicate openly with stakeholders about these limitations to avoid overpromising. Optimizing available resources by automating tasks or using accessible or affordable tools can also help stretch the budget.

6. Managing Data Effectively

• Product managers can handle data overload by focusing only on critical metrics that align with the product’s goals. It’s essential to define specific goals or key performance indicators (KPIs) before collecting data. This approach helps narrow down the data they need to analyze, making it more manageable.
• Additionally, data visualization tools, like charts or dashboards, can help product managers quickly interpret and act on important information. Collaborating with data analysts or specialists can also provide more precise insights without overwhelming the product manager with too much information.

7. Staying Ahead of Market Changes

• Product managers can stay ahead of market changes by closely monitoring industry trends and competitors. Regularly conducting market research and attending industry events or reading reports will help them stay informed.
• It’s also helpful to build a flexible product roadmap that allows for adjustments when market conditions shift. Product managers should plan for regular reviews of their product strategy to ensure it aligns with the current market and customer needs.

8. Focusing on User Experience

• To ensure user-centric design, product managers should work closely with designers and user experience (UX) researchers. They should actively participate in user research sessions, surveys, and interviews to gain a better understanding of user needs.
• Regular user testing should be conducted throughout the product development process, not just at the end. This helps catch usability issues early and ensures the product meets user expectations. Additionally, product managers can prioritize features that improve the user experience over purely technical improvements.

9. Boosting Team Morale

• To maintain team morale, product managers should recognize and celebrate team members' efforts. Regularly acknowledging their hard work, either through shout-outs in meetings or small rewards, can boost motivation. Clear and open communication is also key—product managers should ensure that team members feel heard and valued.
• Setting realistic goals and timelines helps avoid unnecessary stress, and regular check-ins with the team can provide an opportunity to address any concerns early. Building a positive and supportive team culture will significantly improve productivity and morale.

10. Maintaining Long-Term Vision

• Product managers can avoid a short-term focus by regularly stepping back to review the long-term vision of the product. Setting both short-term and long-term goals ensures that they stay focused on immediate needs while also planning for future growth.
• It’s important to have a strategic roadmap that includes not just current features but also future opportunities for innovation. Regularly revisiting the product vision with stakeholders and team members ensures everyone is aligned and working toward both short-term wins and long-term success.

Founder VS Product Manager Responsibilities

In any business, Founders and Product Managers have distinct yet complementary responsibilities. As the company grows, its focus areas become even more important for long-term success.

Founder Responsibilities:

Founders usually focus on the bigger picture of the company. Their primary responsibilities include:

• Marketing, Sales, Finances, and Growth: Founders work to ensure the company is financially healthy, growing its customer base, and achieving overall business goals.
• Strategic Initiatives: They lead important, high-level decisions and strategies that set the company apart from competitors. They look at where the business is going and how it will stand out in the market.

Product Manager Responsibilities:

Product Managers, on the other hand, are more involved in the day-to-day product development process. Their responsibilities include:

• Managing Product Features: If it's a large company, Product Managers might focus on smaller features of a bigger product. In smaller companies, they might oversee the entire product lifecycle.
• Ensuring Smooth Product Development: They prioritize features, keep the team aligned with the product goals, and ensure the development process is smooth and efficient.

Real-Life Scenario:

Imagine a startup that started with a small team, where the Founder handled everything — from product development to marketing. As the company grew, the Founder realized they needed to focus more on scaling the business, building relationships with investors, and driving growth strategies.

To allow the founder to focus on these growth initiatives, the company hired a product manager to take over product development. The Product Manager was tasked with overseeing the entire product, making sure it met user needs, prioritizing features, and keeping the team aligned with the product goals.

For example, in many tech startups, founders like Mark Zuckerberg of Facebook initially focused on both vision and product development. However, as Facebook grew, product managers were brought in to handle specific product areas, allowing Zuckerberg to focus on long-term growth and strategic direction.

The Advantages of Both Roles in New Product Development 

Founders and PMs as Complementary Forces:

Founders and Product Managers bring unique strengths that complement each other. Founders set the direction and vision for the product and company, while Product Managers focus on execution and management, turning the vision into a reality. Together, they ensure that the product stays aligned with the company’s goals and meets the needs of its users.

How They Complement Each Other:

• Founders provide the vision and long-term direction for the product and business, ensuring the team stays focused on the big picture.
• Product Managers take that vision and manage the execution by coordinating teams, refining product details, and making sure the product meets market and user needs.

By combining their strengths, Founders and Product Managers create a balanced approach to product development. The Founder’s vision sets the course, and the Product Manager’s execution ensures the product reaches its full potential, making both roles essential for business success.

How Founders Benefit Their Business by Leading Product Development

1. Deep Knowledge of the Business

• The founder understands the company and its product better than anyone else. Since they created the business, they know exactly how the product solves customer problems. This gives them a unique advantage when explaining the product’s benefits and features to potential customers.

2. Strong Connection with Customers

• When the founder interacts directly with clients, it builds trust and helps form a strong connection. People are more likely to believe in the company and its product when they hear from the person who created it. This can also lead to better customer loyalty, as people feel more secure working with a business when they trust the founder.

3. Cost-Effective

• Startups often have limited money, especially in the beginning. Having the founder handle sales can save money because they don’t need to hire extra sales staff. This allows the business to conserve resources and focus on growing until it can afford to hire more people.

4. Direct Feedback

• Founders can get valuable feedback directly from customers when they are involved in sales. This feedback is useful for improving the product and shaping the future of the business. Since the founder has the power to make immediate changes, they can quickly adapt the product based on what customers want.

5. Using Existing Networks

• Founders often have connections from their previous work or personal experiences. These networks can help them find potential clients more easily. Instead of trying to sell to people they don’t know, they can get introductions to people who may already be interested in their product, increasing the chances of making a sale.

6. Authentic Passion

• Because the founder is so passionate about their business, they can bring that energy into every sales conversation. This passion can be contagious and make customers more excited about the product. Customers often appreciate this enthusiasm and are more likely to buy from someone who believes strongly in what they’re selling.

7. Higher Credibility

• Since the founder knows every detail about the product, they are seen as highly credible. Clients feel more confident that their questions will be answered accurately, and they trust that the founder knows how the product will solve their specific problems.

In summary, founder-led sales help startups in many ways by leveraging deep business knowledge, building trust with customers, saving costs, gathering direct feedback, and using personal networks to grow the business.

How Product Manager Benefit Their Business by Leading Product Development

1. Clear Product Direction

• A product manager ensures that the product is built with a clear focus on solving customer problems. By understanding market needs and customer demands, they create a roadmap that ensures the product meets its goals effectively. This helps avoid confusion and makes sure the team knows exactly what needs to be built.

2. Improved Team Collaboration

• Product managers bring together teams from different backgrounds like engineering, design, and marketing. They ensure everyone understands their role and works well together. This smooth communication across teams makes the process faster and helps avoid misunderstandings that could slow down the project.

3. Better Communication

• In any product development process, technical teams and business teams often speak different languages. A product manager acts as a bridge between them, translating technical requirements for non-technical teams and vice versa. This keeps everyone on the same page and allows the teams to focus on their core strengths.

4. Reduced Risk of Failure

• Since product managers thoroughly analyze market trends and customer needs, they help reduce the chances of the product failing. By continuously gathering feedback and keeping an eye on what customers want, they ensure the product stays relevant and valuable, minimizing risks.

5. Aligned Market Needs

• Product managers conduct research and analyze the competition to ensure that the product stands out in the market. This helps create unique features that meet real customer needs and make the product more attractive, increasing the chances of success.

6. Optimized Resource Allocation

• With limited resources like time and money, it’s important to use them wisely. Product managers prioritize tasks and ensure resources are used efficiently. This saves costs and reduces the time it takes to launch the product by focusing on what matters most.

7. Increased Customer Satisfaction

• By collecting feedback directly from customers, product managers can make improvements that address real pain points. This results in products that better meet customer expectations, leading to higher satisfaction and customer loyalty.

8. Stronger Sales Strategies

• Throughout the product development process, product managers gather important data about customer behaviours and market trends. They use this data to create effective sales strategies that can increase the chances of the product performing well in the market.

In summary, when a product manager leads the process, product development becomes more structured, efficient, and focused on customer needs. This not only helps in delivering better products but also improves team collaboration, reduces risks, and ultimately leads to more successful outcomes.

Founder vs. Product Manager: Who Is the Better Leader?

Here’s a quick breakdown of the strengths of both roles:

Founder:

• Great at seeing the big picture and selling the product vision.
• Can inspire investors, employees, and customers with their passion.
• Lacks the time and skills to manage day-to-day operations.
• Should focus on marketing, sales, finances, and overall business growth.

Product Manager:

• Skilled in breaking down the founder’s big ideas into actionable tasks.
• Manages the development team and handles technical details.
• Ensures that the product gets delivered on time and meets quality standards.
• Should focus on small features (for large companies) or overall product development (for small companies).

Why Founders Should Collaborate with Product Managers for Optimal Growth

If you’re a founder, you may wonder, “Why can’t I do both?” The truth is, while you can do both, it’s not sustainable in the long term. As your company grows, the complexities of managing a product increase, and it becomes crucial to have a dedicated Product Manager who can:

• Keep the development process organized.
• Track progress and timelines.
• Coordinate with designers, developers, and other team members.
• Ensure that the product aligns with market needs and customer feedback.

This collaboration between the visionary founder and the detail-oriented Product Manager ensures that the product grows and succeeds in the market, without overburdening the founder.

How It All Works Together:

In this setup, the Founder can focus on driving business growth, building connections, and securing funding, while the Product Manager ensures the product is developed smoothly and meets market demands. This balance allows the company to grow successfully while still delivering a great product to users.

By dividing these responsibilities, both roles can concentrate on what they do best, ensuring that the company thrives in both business growth and product success.

Example of Founder-led Success and Struggle

1. Steve Jobs – Apple

Struggle with Product Management:

• In the early years, Steve Jobs was deeply involved in all aspects of Apple's product development. However, this hands-on approach led to some difficulties in managing the company’s growing product portfolio. Apple struggled with an overly complex product line and internal mismanagement, which contributed to Jobs being ousted from the company in 1985. During this time, the absence of clear product management roles made it hard for the company to stabilize.

Solution:

• When Jobs returned to Apple in 1997, he realized the importance of bringing in skilled professionals to handle product management. He brought in people like Tim Cook and Jon Rubinstein, who helped streamline operations and manage the product line more effectively. Their leadership in product management allowed Jobs to focus on big-picture innovation, leading to the creation of iconic products like the iMac, iPod, iPhone, and iPad.

Case Study of Product Manager Impact – Apple's Product Line Transformation

• With the addition of strong product management, Apple’s chaotic product lineup was simplified into a more focused and scalable structure. This allowed the company to create groundbreaking, best-selling products that fueled its rapid growth, turning Apple into one of the most valuable companies in the world.

2. Elon Musk – Tesla

Struggle with Product Management:

• In Tesla’s early days, Elon Musk was heavily involved in every aspect of the business, from engineering to product development. However, this approach led to production delays and financial challenges, as the company struggled to scale its operations. Managing the complexities of developing electric cars, while handling other responsibilities, stretched Musk too thin, causing bottlenecks in product development.

Solution:

• Recognizing the need for more structure, Musk brought in experienced product managers and executives to help stabilize the product development process. One key hire was Jerome Guillen, who played a significant role in managing production and bringing scalability to Tesla’s Model S and Model 3 lines. This allowed Tesla to grow rapidly by streamlining processes and focusing on timely product delivery.

Case Study of Product Manager Impact – Tesla's Production and Scalability Growth

• After the introduction of key product management professionals, Tesla was able to significantly scale production and streamline product releases. Their impact helped transform Tesla into a leader in electric vehicle innovation, contributing to its rise as one of the most valuable car companies globally.

Conclusion

Both founders and product managers bring unique strengths to the table. Founders are visionaries with passion and creativity, but they might struggle with objectivity, delegation, and market adaptation. Product Managers, on the other hand, excel in data-driven decision-making, user focus, and agile leadership.

The best leader for a new product depends on the stage of the business. In the early days, a founder’s passion may be key to driving innovation. As the product grows, a product manager’s strategic thinking can ensure the product meets market demands and remains competitive.

Ultimately, combining the vision of a founder with the objectivity and agility of a product manager can be the perfect recipe for a product’s success.

See you again in the next blog, where we’ll explore more exciting insights and trends in product development!