PRODUCT DEVELOPMENT: Rethinking Team Structures
Why going beyond the typical in-house team model is at least worth the consideration.
The business of developing, validating, and scaling a product requires great effort at every stage; from every team member. In the past, this process would typically span years with a lot of investment expended on development, but with a variety of strategies presented to help achieve more, and in less time, it is understandable that co-founders are now in a place where we want to put out the best they can afford as soon as possible.
Today, product managers recognize the value presented by cross-functional teams especially when paired with methodologies that focus on faster and more efficient delivery (I typically recommend the agile approach). Still, it seems like we are far from escaping the high failure rate that has plagued us — rumor has it that 90% of startups will ultimately fail with personnel or staffing problems accounting for a substantial 23% of the common factors that contribute to said failures.
The success of a product relies heavily on the strength of its team, and you’d find that we (and I mean founders and product leaders) end up with teams that while productive, are for some reason laden with an undefined static that interferes with the performance of the product; not because they are ill-equipped to perform, but because the typical model adopted to building teams is great to an extent, but beyond, is primitive.
Anyone tasked with hiring and forming in-house product teams can definitely relate to this:
You start out looking to assemble a magical, high-performing, can-do-attitude type team, but you also want to hit the ground running, so you end up with a team that prioritizes execution over everything else. And who can blame them? With 4.45 million mobile apps reportedly released in 2022, the market is more competitive than ever. The natural response is to develop better apps in a shorter time frame; an endeavor that an in-house team structure can barely afford.
In the fast-paced and competitive landscape of product development, business developers are constantly seeking ways to optimize efficiency, accelerate time-to-market, and drive innovation. While the traditional in-house team model has long been the default choice, forward-thinking organizations are now recognizing the value of going beyond the conventional approach. By embracing alternative staffing models, companies can tap into a wider pool of talent, access specialized expertise, and unleash a new level of agility in their product development process. Let’s explore what alternative team structures are available.
Remote teams
With advancements in technology and communication tools, remote teams have become increasingly popular. This model allows you to hire talent from anywhere in the world, giving you access to a global pool of experts. Remote teams offer flexibility, cost-effectiveness, and the ability to work across different time zones, enabling round-the-clock productivity and faster turnaround times.
Freelancers and contractors
Hiring freelancers and contractors provides flexibility and scalability without the long-term commitments of full-time employees. This model allows you to tap into specialized skills on a project basis, providing the expertise you need for specific tasks or short-term projects. Freelancers and contractors often bring a wealth of experience and can seamlessly integrate into your existing team.
Outsourcing
Outsourcing involves partnering with external agencies or companies to handle specific aspects of your product development process. This model is particularly useful when you need to delegate non-core functions or specialized tasks to experts in those areas. Outsourcing can streamline operations, reduce costs, and provide access to cutting-edge technology or processes that may not be available in-house.
Hybrid teams
A hybrid team model combines in-house resources with external talent. This approach allows you to maintain core functions and critical knowledge in-house while leveraging external specialists for specific projects or to fill skill gaps. Hybrid teams offer the benefits of both in-house expertise and the flexibility of external resources, striking a balance between stability and agility.
Collaborative networks
Collaborative networks involve forming strategic partnerships with other organizations, startups, or even academia. This model allows you to pool resources, share expertise, and leverage complementary capabilities. Collaborative networks foster innovation, knowledge exchange, and joint problem-solving, enabling you to tackle complex challenges by drawing on the strengths of multiple entities.
In truth, these models offer reduced autonomy but not without a break from the constraints of convention. Here are a few benefits to take into context when considering alternative team structures.
Access to specialized expertise
In-house teams may have diverse skill sets, but they are limited by the knowledge and experience of their members. By going beyond the in-house model, you open up the opportunity to tap into specialized expertise that may not be readily available within your existing team. This can be particularly valuable when dealing with complex technical challenges or niche markets.
Flexibility and scalability
Building an in-house team requires time and resources to recruit, hire, and train employees. On the other hand, leveraging external resources such as freelancers, contractors, or remote teams allows for greater flexibility and scalability. You can quickly adjust the size and composition of your team based on project requirements, without the long-term commitments associated with traditional hiring processes.
Increased innovation and fresh perspectives
In-house teams often develop a certain level of familiarity and complacency over time. Bringing in external talent injects fresh perspectives, new ideas, and diverse ways of thinking into your product development process. These external contributors can challenge the status quo, spark innovation, and help you avoid groupthink, leading to more creative and breakthrough solutions.
Enhanced speed and efficiency
While in-house teams strive for efficiency, they may face constraints due to their existing workload or skill limitations. By extending your team beyond the typical in-house model, you can tap into additional resources and expertise to accelerate your product development timeline. Collaborating with external specialists who are accustomed to rapid project delivery can help you meet tight deadlines and seize market opportunities more effectively.
Cost-effectiveness
Building and maintaining an in-house team comes with significant costs, including salaries, benefits, infrastructure, and ongoing training. Alternatively, leveraging external resources allows you to access top talent without the same overhead expenses. You can hire experts on a project-by-project basis, optimizing costs and ensuring that you allocate resources efficiently.
Mitigating personnel and staffing challenges
As mentioned earlier, personnel and staffing problems are common contributors to startup failures. By going beyond the in-house team model, you can mitigate some of these risks. When you collaborate with external experts or partner with specialized agencies, they often have established processes for talent acquisition and management, reducing the burden of personnel-related challenges on your team.
Rethinking team structures in product development offers numerous benefits and opportunities for businesses striving for success in a competitive landscape. While these models may require a departure from conventional in-house approaches, the advantages they bring far outweigh the limitations, enabling organizations to optimize their product development processes and achieve greater levels of success.
By breaking free from traditional team structures, companies can unlock new avenues of growth and innovation, propelling them ahead in the dynamic market landscape.
If you’d like to see how alternative team structures can benefit your product development process, reach out to us at partnerships@enyata.com to start a dialogue.
