Podcast Summary
Lessons in Product Management: Insights from Coinbase VP and Top CEO Proteges: Sanchan Saxena shares valuable insights on establishing product development processes, hiring the right product managers, understanding customer needs, and weathering industry disruptions like the COVID-19 pandemic.
Sanchan Saxena, VP of Product at Coinbase, shares his journey into product management and the valuable lessons he learned from working with top CEOs like Brian Chesky, Brian Armstrong, and Mark Zuckerberg.In his conversation with Lenny Rachitsky, Sanchan discusses topics ranging from setting up product development processes at a startup to hiring amazing product managers.He also talks about his experience at Airbnb during the COVID-19 pandemic and how they made it through the travel industry coming to a halt.Sanchan emphasizes the importance of understanding what customers want and how to give it to them, which Dovetail helps with by offering user research products used by companies worldwide.Persona, another sponsor of the podcast, helps founders, product managers, and engineers solve identity-related problems with their end-to-end KYC and AML solution.
A VP's Guide to Success Through Learning and Pivoting: Follow what energizes you and pivot as opportunities arise to create a fulfilling career aligned with personal goals. Embrace learning and take little bets to approach opportunities. "Little Bets" is a recommended book for reflection.
Sanchan Saxena, VP of Product at Coinbase, shared his career trajectory, emphasizing that he stumbled upon incredible opportunities by pivoting and learning from experiences.He advises individuals to jump into something that gives them energy and to pivot and learn from there.Saxena's path was not planned but was created through learnings and pivots.Therefore, rather than having a five-year career plan, it is better to take steps towards creating a great career that aligns with personal goals and interests.Additionally, Saxena recommends the book "Little Bets," which helped him reflect on his career and methods to approach opportunities.
Fast-Track Your Career with Startups or Established Companies.: To succeed in your career, try small experiments, be open to change, and learn about product management. Choose a job that offers you the opportunity to learn quickly, depending on your goals, and seek the fastest path to reach them.
Sanchan Saxena gives two key pieces of advice: first, try little bets and be open to shifting directions if they don't work out; second, learn the art and science of product management early on in your career by finding a job that will make you the fastest learner.He recommends both startups and established companies for learning, depending on what you want to optimize for.Startups offer the chance to get started and scale, while big companies offer the chance to learn scale mechanisms and get started without encumbrances.Whatever your destination, look for the fastest ship to get there.
Discover Your Optimal Work Environment to Thrive.: Identify the type of work environment that gives you energy to excel. Some thrive in startups, while others in large corporations. Learn from Airbnb's experience of building real-world products powered by software.
Know what energizes you and where you thrive.Not everyone is cut out for big companies or startups.Recognizing what gives you energy and where you thrive the most is essential.For example, some people enjoy the startup to scale angle, while others enjoy working for a large company.Be able to optimize where you feel comfortable.Airbnb is an excellent example of learning how to build real-world products powered by software.Working with ambitious leaders, managing a company in crisis, and learning product principles are valuable experiences compressed into three years, something you might learn in 30.
Airbnb's Journey Through the COVID-19 Pandemic: Airbnb was hit hard by the COVID-19 pandemic, but their early profitability and decision to raise $2 billion in debt helped them weather the storm. Building resilience is crucial for companies, even successful ones.
The COVID-19 pandemic brought unexpected challenges to companies like Airbnb.In a matter of weeks, they faced a drop in revenue and the need to lay off thousands of employees.The situation was so dire that even top executives shed tears as they had to make difficult decisions over Zoom.However, Airbnb was able to weather the storm due to their early profitability and decision to raise $2 billion in debt.These experiences show that even successful companies face uncertainty, and it is important to build resilience to survive unexpected challenges.
Learnings from Airbnb's pandemic adaptation strategy under Brian Chesky's leadership: Adaptation, flexibility, and speed are key to success in a changing market. Quick recovery from failure and focusing on urgent priorities can help businesses survive and thrive amid uncertainty.
During the pandemic, Airbnb had to quickly adapt to a changing market and plan for the future.The key to their success was their founder, Brian Chesky, who led with calmness and a willingness to rapidly adapt to changing circumstances.The company shifted their operating model to two week planning cycles and focused on urgent priorities for the entire company, not just specific teams.They also pivoted their marketing strategy to highlight the safety of staying in an Airbnb compared to a hotel.The lesson learned is that it's important to have a plan, but it's even more important to quickly recover from failure and adapt to changing circumstances.
Airbnb's Cost-Cutting Decisions During the Pandemic: To cope with the financial difficulties caused by the pandemic, Airbnb dissolved sub-teams and created a unified one. They also shifted focus from revenue and features to belief in travel's eventual resurgence, while keeping morale high by reminding employees of the company's mission and vision.
During the pandemic, Airbnb faced financial difficulties and had to make tough decisions to cut down on costs.They dissolved the idea of sub-teams and created one team, #Airbnb, where engineers and PMs would be moved wherever needed.They also had to shift employees from a focus on revenue and features to a belief obsession, where they believed that people will want to travel again once the pandemic is over.To keep morale up, they re-inspired their employees by reminding them of the mission and vision of Airbnb and offering them something, even if it was lower than the market value.
The Importance of Founders and Storytelling in Times of Crisis: In a crisis, a founder who is present, reassuring, and inspiring can help the company survive. Storytelling and a clear vision of the future can motivate employees. Simplicity in product design is also important.
In times of crisis, it is crucial for employees to believe in both the mission and the founder of a company.A founder who is willing to be on the front lines, making decisions, reassuring employees, and connecting with them is essential for a company's survival.Additionally, it is important to inspire people to believe in the future they came to create.The power of storytelling, without relying solely on data, can help employees see a crystal-clear future that they can work towards.Finally, in the early stages of a startup, it is important to answer the question of who you want to be when you grow up, which helps provide clarity for employees.The power of simplicity in product design is a valuable lesson as well.
The Superpowers of Successful Founders: Simplicity and Intentionality: Successful founders can make intentional decisions despite having limited data by simplifying information and relying on intuition. Therefore, prioritize intentionality over A/B testing when building a product to achieve a clear vision.
Simplicity and intentionality are two superpowers that successful founders possess.They can take in a lot of information but simplify it to make it actionable for their team.They also have the intuition and vision to make intentional decisions without relying solely on data.For example, Instagram's Kevin Systrom made the intentional decision to go all in on Instagram Stories without extensive A/B testing.This approach requires a clear understanding of where you want to go as a founder or product leader and then using A/B testing to get there.So, when building a product, focus on intentionality first before jumping into A/B testing.
Airbnb's Unique Approach to Product development: At Airbnb, they aim to create an ideal end state without constraints first and then scale the successful components. Trust your gut when deciding on the right direction for your product.
At Airbnb, they don't rely on A/B testing to determine the direction of their product.Instead, they focus on creating an ideal end state without constraints first.They aim to create a 15 out of 10 experience and design the best possible product first, and then scale the successful components.This approach allows them to think outside of the box and not be limited by time, resources, or budget.However, it's still important to have intentionality and trust your gut when deciding on the right direction for your product, just like how you trust your GPS to get you to your desired destination.
The Power of Intuition in Product Development.: Combine data with intuition and assumptions to create a successful product, with persistence and a culture that celebrates failure as a learning experience. Don't let data override your intentionality or vision.
When creating a product, it's important to start with your intentionality and understand the customer problem you want to solve.While data is important, don't discount your gut and intuition.Founders have used their intuition to build successful products, and operators should learn to harness that too.Once you have a clear idea in mind, start with assumptions and intuition, and then have the persistence to test and iterate until you reach your goal.Remember that rapid recovery from failure is crucial, so build a culture where failure is celebrated as a learning experience.Finally, don't let data override your intentionality; sometimes your intuition and vision can be more important in creating a successful product.
Building Intentional Product Development Cultures: Intentionality sets the product vision, and companies like Instagram and Coinbase take big risks with small, nimble teams. Design decisions are made by a single leader at Coinbase, promoting swift, responsible action. Founders' ability to pivot is a strength, and building a culture that embraces change is essential.
Intentionality is important in product development as it sets the vision for where the product is heading.Companies like Instagram and Coinbase have different product development cultures, but both take big, bold bets with tiny teams that can move at lightning speed.At Coinbase, the culture is to make decisions through a directly responsible individual (DRI) rather than designing by committee.The DRI's job is to listen to cross-functional partners and make decisions without compromise.The beauty of founders is their ability to pivot when faced with new information.As an operator, it's important to build an intentional culture that embraces change.
Embracing a Writing-First Culture at Coinbase: At Coinbase, decisions are made through a writing-first culture and rapid decision-making format, allowing for quicker resolution and fewer passive-aggressive behaviors. This approach helps the team stay focused on their beliefs while navigating a noisy industry.
At Coinbase, decisions are made based on input provided in writing, and the DRI (Directly Responsible Individual) is responsible for making the final call.This culture helps to cut down on passive aggressive behavior and helps to speed up the decision-making process.The same rapid decision-making format is used across all teams, from individual contributors to higher-level executives.This way of operating in an ambiguous industry has provided learnings on how to build conviction in a highly noisy world and stay focused on what is believed to be the right thing, while still letting the noise happen around you.
The Future Demands Companies to Embrace Web 3.0.: To thrive in Web 3.0, companies should operate in ambiguity, trust leaders to make decisions, and hire individuals who understand the future of the industry. Morphing from Web 2.5 is key.
In the future, every company will have to become a Web 3.0 company, meaning they need to have the ability to operate in a level of ambiguity and trust their leaders to make decisions.Although there is currently no data and a lot of noise in the Web 3.0 industry, people who understand the ideals and future of Web 3.0 and are builders will thrive the most.The path to Web 3.0 goes through Web 2.5, and it requires people to take what is present today and morph it into the ideals of tomorrow.Those who believe in this journey will be valuable hires for companies in the Web 3.0 industry.
The importance of content expertise over process for startup success: Startups should prioritize hiring executives who understand the content of their product and customers, and can effectively execute tasks rather than just delegate. Testing problem-solving skills is also crucial during interviews.
The most important thing for a startup's success is someone who knows what to do when, also known as content.Contrary to popular belief, process, like scrum or other methodologies, is not highly correlated with success.It's important to bring in people who know content and teach them process, rather than the opposite.Early stage startups should hire executives who know how to execute, not just delegate.When interviewing candidates, give them a work challenge that tests their problem-solving skills instead of just asking them to do a presentation.Focus on hiring people who understand the content of your product and customers and how to win in your industry.
The Importance of a Clear Content Plan for Problem-solving: Leaders should prioritize creating a content plan over relying solely on process when facing problems. Focus on showcasing past roles and the value you bring to a team in interviews to create successful outcomes.
When facing a problem like creating millions of homes that are Airbnb Plus, it is important to show how you approach the problem and have a clear content plan for execution.In an interview process, it is important to focus on the role someone played in the past and how they will bring value to the team.Leaders should be content creators and focus on creating the right roadmap instead of just relying on process.Process is important for scaling, but content is the answer to creating successful outcomes.It is important to have a clear plan and focus on the value you bring to the table.
Product Advice and Insights from a Coinbase Leader: Read "The Little Bets" and "The Innovator's Dilemma" and explore Web 3.0 companies and Airbnb for PM jobs. Understand job candidates by asking about their career decisions. Follow Saxena for Coinbase updates.
Sanchan Saxena, a product leader at Coinbase, recommends two books for product leaders: "The Little Bets" and "The Innovator's Dilemma." He also suggests looking into Web 3.0 companies or Airbnb for PM job opportunities.Saxena recommends asking job candidates to tell the story of their careers and why they made the choices they did to gain insight into their character.He can be found on Twitter and TikTok and shares information about Coinbase NFT and Coinbase Wallet.
