What does a VP of Product do?

The VP of Product is one of the most important hires a growth-stage tech company will make. If done right they will be the glue that holds your rocket ship together, and through their leadership their team will create a flywheel of product development that consistently solves customers problems better than anyone else.

Here are key metrics and responsibilities of the VP of Product.

KPIs owned by the VP of Product

• Product Engagement Score, with the main component being adoption
• Feature delivery
• ARR growth in relation to R&D spend
• Here are other metrics the VP of Product may not own, but should feel responsibility for. Some are more lagging than others.
• ARR growth
• Close rate
• Retention rate
• Net recurring revenue (NRR)
• Net promoter score (NPS)

Main 5 responsibilities:

1. Product vision/direction and alignment to that direction
2. Overall product roadmap prioritization and communication
3. Team management, coaching, and growth
4. Cross company feedback and alignment
5. Managing dependencies, resources, and risk mitigation for products/features you’re building and launching
6. I’ll sneak in a 6th: product awareness and adoption (especially if product marketing reports to product)

The Big 4 Areas of Expertise for a product leader:

As you are developing a future VP of Product, the areas above are the four key areas of expertise that are needed. The hardest of these is strategy and vision. I’ve found the best way to develop this muscle is to include your aspiring VP in as many strategy discussions as possible.

How do you know if the VP of Product is succeeding in their role:

• There is a clear product vision that everyone in the organization understands
• They and their team are constantly talking to customers and deeply understand their needs and how your product fits their needs
• Top line metrics are healthy and/or trending the right direction (ARR, Retention, NRR, etc.)
• Product development teams don’t feel blocked or bottle necked
• They are not afraid to be wrong. In fact, they should think like a scientist — testing, experimenting, and celebrating failures as learning
• Other departments feel aligned with the product team, know what features are coming, and feel adequately prepared when a feature launches
• Sales feels heard and supported by the product team, but doesn’t get everything they ask for. Likewise, Customer Success feels heard and supported by the product team, but doesn’t get everything they ask for.
• There is a developing line of product leadership ramping up behind the VP. The VP should not feel threatened by stellar PMs and should be developing team leads, group product manager, and directors of product — with one or more than one strong second in command who could take the VP position now or with further development.

A great VP of Product isn’t afraid to be wrong and is constantly testing and iterating

To ready more about whether or not you need to hire a VP of Product, read my other article.