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[Bridging Product and Operations: Lessons from Uber and Opendoor with Brian Tolkin]-[Lessons from scaling Uber and Opendoor | Brian Tolkin (Head of Product at Opendoor, ex-Uber)]

Lenny's Podcast: Product | Career | Growth · B2 · 2024-08-04

Technology
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📋 Summary

The Symbiotic Relationship Between Product and Operations

In this episode, Brian Tolkin, Head of Product and Design at Opendoor and former early-stage leader at Uber, discusses the critical fusion of product and operations. Tolkin describes this dynamic as a "twin turbine jet plane," where both engines—product and operations—must function in harmony for the business to reach its maximum efficiency. He argues that operations teams provide essential, granular insights from the field that a product manager sitting in an office cannot replicate. By fostering a culture of mutual respect, companies can create a powerful feedback loop where operational challenges inform scalable technological solutions.

Building Product Operations as a Function

Tolkin played a pivotal role in formalizing "Product Operations" at Uber. He explains that as the company scaled, the gap between centralized product teams in San Francisco and globally distributed operational teams widened. Product Ops was designed to bridge this divide, acting as a bidirectional feedback loop that ensured features were effectively deployed globally while simultaneously funneling on-the-ground insights back to the product teams. This function proved vital for managing the complexity of hyper-growth, allowing teams to move from manual, "non-scalable" processes to robust, automated systems.

The Philosophy of "Do Things That Don't Scale"

One of the most profound lessons Tolkin shares is the importance of starting with manual processes before building technology. He illustrates this with the evolution of Uber’s driver onboarding: originally, it was a manual, 90-minute in-person session, which eventually evolved into a video-based, automated system as volume grew. The key, according to Tolkin, is to embrace inefficiency initially to understand the problem deeply, and only then apply technology to "scale the things that you are doing." This approach prevents premature optimization and ensures that technical resources are directed toward the most impactful areas, such as Uber's dispatching and pricing algorithms.

Effective Product Reviews and Decision-Making

Tolkin emphasizes that product reviews should not feel like "firing squads." Instead, they should be intellectual forums aimed at making the product better. He advocates for setting clear goals—accountability and information sharing—while maintaining a culture where senior leaders probe with questions rather than mandates. He highlights the importance of context, noting that the team executing the work possesses the depth, while leadership provides the breadth. To avoid the feeling of being attacked, he suggests using frameworks like "flash tags" to clarify whether feedback is a suggestion, a plea, or a mandatory request.

Applying "Jobs to Be Done" (JTBD)

At Opendoor, Tolkin successfully implements the Jobs to Be Done framework to maintain customer empathy. Because home buying and selling are infrequent, high-stakes events, it is difficult for employees to rely solely on their own intuition. JTBD forces the team to look beyond the product features and consider the customer's broader context, such as the multi-month journey of selling a home. Tolkin warns against being "dogmatic" about the framework; instead, he views it as a vital tool to ensure the team is solving the right problem—such as "price discovery" rather than just "getting an offer."

Navigating Ambiguity and Pressure

Reflecting on the chaos of early Uber days, Tolkin shares that staying calm under pressure is a learned skill. He advises that leaders should avoid reflecting stress onto their teams, as it counterintuitively hinders performance. He uses the mantra, "you're never as good as you think you are, and you're never as bad as you think you are," to maintain perspective. When facing extreme ambiguity, Tolkin suggests that the core job of a product leader is to find the "kernel of truth" amidst the noise. By remaining "competition aware but not competition focused," he believes teams can stay disciplined, keep their eyes on the customer, and continue to innovate even in highly saturated markets.

🎯Key Sentences

1
That makes a lot of sense.
2
There was no closer to the customer, right?
3
That is hilarious. I love it.
4
It's too expensive to change and rebrand at this point.
5
Everything is so delicious.
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📝Key Phrases

1
combining product and Ops
2
staying very calm under pressure
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counterintuitively doesn't produce better outcomes
4
bi-directional feedback loop
5
human in the loop system
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📖 Transcript

You've worked at two businesses that have done incredibly well combining product and Ops.
Uber always have this mentality, and Opendoor does too, of the product operations twin turbine jet plane, where you can like fly the plane on one engine for a little bit if you need to, but it's operating most efficiently and effectively, if both are working together.
What has having been in Ops done to make you a better product leader?
Give a really deep understanding of how the business actually works.
It's a pretty good foundation for them going on to say, okay, what do we you actually want to build in a more scalable technology.
Something else I've heard that you're very good at is staying very calm under pressure.

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