Your Startup Doesn’t Need a (full-time) CPO
When navigating the early days of their startup and chasing product-market fit (PMF), founders will sometimes decide to hire a Chief Product Officer in a moment of desperation. Whether they realize that PMF isn’t happening as fast as they hoped, or struggle to scale product development, they might assume that a full-time product leader within their company’s C-Suite will “fix everything.”
But before rushing this decision, it’s worth considering whether an interim or fractional CPO might be the right solution instead. Here’s why:
Execution Over Strategy: Early Days Are About Shipping Fast
In the early stages of a startup, the focus should be on speed: Shipping fast, getting feedback, and iterating quickly. This is because the heavy lifting of product-market fit (PMF) requires rapid experimentation and constant adjustments based on real-world data. To do this, you don’t need someone at the executive level. Instead, you need someone that can roll up their sleeves and lead tactical execution – in other words, a hands-on solo PM (or two) with the right background and skill set.
An interim CPO or product lead can step in to help you select the right PMs for this job. They can also set up a roadmap of experiments for these PMs to pursue, or bring clarity to product analytics and decision-making. Best of all, they can likely finish this work in just a couple of months, after which they will become more or less redundant. A full-time CPO might be a great fit for your company later on, once you’ve found your footing. But in the early days, hands-on product management and agility are what will move the needle.
Strategy Comes Later: You’re Not Ready for Long-Term Planning Yet
Many startups make the mistake of hiring a full-time CPO when they’re still trying to nail down product-market fit. But PMF is a journey that involves continuous pivoting and learning about the market. It’s hard to create long-term product strategies when your core offering is still being tested and refined.
An interim or fractional CPO can bring valuable product leadership to help fine-tune the product, define priorities, and introduce frameworks for scaling, all while staying agile. They can even help identify when it’s time to stop iterating and start solidifying a longer-term vision. But bringing on someone too early with a focus on strategic planning – and especially adding this person to your company’s C-Suite – might distract you from the core task: experimentation and validation.
Keep the Team Lean: Too Many Layers Can Slow You Down
Startups typically thrive in their early stages due to their ability to remain lean and flexible. When you add an executive-level position like a full-time CPO, you risk creating additional layers of hierarchy that can slow down decision-making and hinder the fast-paced nature of the business.
As a rough estimate: Product teams under 20-30 people usually don’t need a full-time C-level leader at the helm. Instead, an interim CPO can provide leadership and mentorship without the baggage of unnecessary layers, keeping the team nimble and focused while giving them a chance to develop and learn. As your team grows and product complexity increases, you can reassess whether it's time for a permanent CPO, or if the fractional arrangement is still serving you well.
Ownership: Founders Still Set the Vision
A startup’s product vision is deeply personal. It’s often tied to the founder’s initial insight, passion, and commitment to solving a particular problem. Bringing in a full-time CPO at an early stage can lead to friction, as that person will likely want to take ownership of the vision and steer it in their own direction – at least in part. After all, that is what you will likely have to promise them during the hiring process.
This is a natural tension in any business, but especially in startups, where the founder’s vision is critical to team culture and business momentum. Before you are ready to hand over the visionary reins, an interim CPO can support bringing your vision to life without attempting to replace it. They can provide strategic guidance, lead and sharpen product decisions, build processes to help you scale, and create alignment between product and other functions. Meanwhile, your founding team can retain ownership over your product’s future.
Cost Efficiency: Access Top-Tier Expertise Without the Full-Time Price Tag
The cost of hiring a full-time CPO, especially one with extensive experience in product leadership, can be substantial. For startups that are still in their early stages and trying to make their funding last, this might be an unsustainable expense.
By hiring an interim or fractional CPO, you get access to the same level of expertise and strategic guidance without the full-time salary, benefits, or long-term commitment. This flexible arrangement means you can pay for the leadership you need, only when you need it. For startups and scaleups, this can be a game-changer for conserving cash while still benefiting from seasoned product leadership.
Conclusion: Interim CPOs Can Be the Strategic Advantage You Need
Hiring a full-time CPO too early can be a costly mistake for startups and scaleups. Instead, bringing on an interim or fractional CPO offers the best of both worlds: Seasoned product leadership without the long-term cost or organizational overhead.