By Teresa Torres · producttalk.org · @ttorres on X · LinkedIn
This podcast episode, hosted by Teresa Torres with Petra Wille, examines the difference between organizations that fund projects and those that fund teams. The conversation argues that project-based funding clashes with continuous discovery, since fixed scopes and annual budgets leave little room to learn and adapt. Funding teams with clearly assigned outcomes can preserve accountability while improving flexibility. The hosts stress that moving to this model is practical, political work that requires translating between product and finance language and building ROI understanding on both sides.
01Key takeaways
- Project-based funding often conflicts with continuous discovery because scope is fixed before learning happens.
- Fund stable teams first, then attach a clear, measurable outcome to keep accountability intact.
- Learn the language finance uses and translate product work into cost, return, and risk terms.
- Product individual contributors can be strong allies in showing finance how value is created.
- Teams should understand their own cost and expected return to make sustainable decisions.
- Aim for outcomes that can grow exponentially rather than only incremental improvements.
02Key sections
- Why project funding clashes with discovery
- Fixed project budgets assume scope is known upfront, which conflicts with the iterative learning that continuous discovery requires.
- What finance looks for and the benefits of team funding
- CFOs typically want predictability and ROI, and team funding can offer flexibility while still meeting those needs when outcomes are clearly defined.
- Fund the team, then assign an outcome
- A two-step approach first funds a stable team and then ties it to a measurable outcome to maintain accountability.
- Bridging the product and finance gap
- Translating terminology, adopting finance-friendly naming, and involving product individual contributors can help finance understand value creation.
- VC-style funding and ROI thinking
- Funding based on learning and outcomes, and aiming for exponential rather than incremental returns, offers an alternative to traditional annual budgeting.
03From the post
“Listen to this episode on: Spotify | Apple Podcasts In this episode of All Things Product, Petra Wille and Teresa Torres dive deep into a question from a listener: What’s the real difference between organizations that fund projects and those that fund teams? It’s a deceptively simple question that”
04Frameworks mentioned
Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.