Product management organization for ensuring growth continuation in high-growth firms

Abstract

This research paper examines the product management organization in high-growth firms, especially in the context of enabling growth continuation. The paper combines research on high-growth firms with existing literature on product management to examine if establishing a product management function can drive growth in high-growth-seeking companies.

These academic areas have not been previously combined; thus, there is no research on the relationship between the research areas. In general, scholarly literature on high-growth firms is non-cohesive and more focused on companies' strategies to scale. The internal organization within these companies is not uncovered and is usually given as lump sums and headcount numbers. Following that, existing product management research focuses more on corporations, allowing for a research gap to be explored.

Semi-structured interviews from growth companies with existing product management organizations were conducted to bridge this gap. The interviews gathered qualitative data and insights about product management organization, internal resourcing, decision-making structures, funding status, and roles of product management and product managers.

This research provides new insight into the benefits and challenges regarding product management organization in high-growth firms. The key findings include the drivers of the foundation for product management, the timing of establishing such a function, and the essential roles that venture capital and a single product manager can play in professionalizing high-growth ventures. In general, such an organizational change is needed when the high-growth company achieves accelerated growth, whether in revenue or headcount, and the original founding team cannot handle the product management responsibilities independently.

The research contributes academically by bridging the product management and high-growth literature and expanding on the internal factors of company scaling that have been previously called for. For managerial contributions, the founders of scaleups gain an understanding of the timing and importance of establishing a product management function. This research’s contributions are slightly limited, as there is a sample bias emerging from interviewees working only in product management and only in Nordic HGFs.