[Mini CEO Rising] ① The Heart of Agile Organizations... From Coupang to Early Startups, Receiving 'Love Calls'

General Manager of Fragmented Business Divisions... Final Decision-Maker for Product
No Authority to Evaluate Team Members... Horizontal Communication Unlike Team Leaders
Expanding Around Coupang, Toss, etc.... Maintaining 'PO System' Despite Growth
Must Have Generalist Skills... "Similar to Small Startup CEO"

[Asia Economy Reporter Lee Junhyung] The Product Owner (PO) symbolizes the flexible and agile organizational management unique to startups. The PO oversees finely divided business units and holds the final decision-making authority for those units. In the industry, POs are also called ‘mini CEOs.’ Large startups that have grown to ‘team’-level valuations, such as Coupang, continuously divide their organizations into smaller units and maintain the PO system to preserve agile management methods. With the rise of the second venture boom, unicorns (unlisted companies valued at over 1 trillion won) are emerging one after another, and the demand for POs is rapidly increasing.

It is not uncommon for startup CEOs to join other startups as POs. For example, Choi Heemin, co-CEO of Lafo Labs, the operator of the 4050 fashion app ‘Queenit,’ joined Viva Republica as a PO after experiencing two startups. Some startups list startup founding experience as a preferred qualification when hiring POs. This is because leading small teams to plan and launch products and services shares many similarities with early-stage startup management. On the contrary, there are concerns that talents from large corporations, accustomed to vertical decision-making structures, may not be suitable for the PO role. A platform startup CEO explained, "People from large corporations sometimes struggle to change the traditional methods focused on report writing and superior approvals," adding, "Many CEOs prefer candidates with startup experience when hiring POs."

Employees including Viva Republica Product Owners (PO) are holding meetings by silo units.
[Photo by Viva Republica]

The ‘Heart’ of Agile...No Evaluation Authority

The PO is the ‘heart’ of an Agile organization. Finding the necessary product (product/service) for the company is the first crucial step the PO takes when driving a project. Then, the PO assembles a team by gathering planners, developers, designers scattered across the company. Sometimes, the PO must persuade not only the desired personnel but also the heads of their departments. This means that having just an eye for talent is not enough for a PO. Once the team is formed, the PO analyzes customer pain points and completes product planning. Setting development and launch schedules and dividing tasks are all the PO’s responsibilities. After product launch, the PO is also responsible for sales, marketing, and service stabilization.

Agile organizations spread primarily from Silicon Valley, the ‘cradle of innovation’ in the United States. Originally, Agile originated as a software (SW) development methodology based on close collaboration among IT developers to respond quickly and flexibly to rapid changes. Later, it was applied to organizational management theory and evolved into a concept that breaks down boundaries between teams and departments. Agile organizations form and dissolve teams fluidly according to projects, often in groups of 5 to 10 members. They also aim for a horizontal organizational model without ranks or titles among team members.

Most domestic startups have adopted this work style. Agile organizations are considered symbolic of startup organizational culture. An employee at a startup with six years of experience said, "Unlike team leaders, POs do not have the authority to evaluate members," adding, "This allows for horizontal communication with members and gives a sense of going together for the success of the service."

Viva Republica employees conducting meetings in silo units. The photo was taken before the spread of COVID-19. Photo by Viva Republica

Silicon Valley Organizational Culture...Sorting the Wheat from the Chaff Remains a Challenge

Startups that emerged around the 2010s, such as Coupang and Woowa Brothers, pursued a horizontal and flexible organizational culture and actively adopted Silicon Valley culture. In this process, POs naturally emerged as core personnel in startups.

Recently, with the second venture boom as a turning point, the startup ecosystem has expanded, and the demand for POs has increased accordingly. An industry insider explained, "With the mobile era, platforms have entered a full growth trajectory, which has highlighted the role of POs," adding, "As the concept of platform services became widespread, POs designing service-based products gained attention."

Viva Republica’s PO-centered organizational operation has attracted attention since its early days. Viva Republica employees work mainly in ‘Silos’?teams of 6 to 7 members. A PO leads one silo and, once the service stabilizes, is assigned to a new silo. Sometimes two or more silos merge to operate as a tribe, but the company explains that the PO’s authority remains unchanged. A Viva Republica representative said, "The most important thing for a PO is the earnest desire to succeed with any product or service," adding, "They need commercialization, data analysis skills, as well as sales capabilities."

Sorting the wheat from the chaff remains a challenge. Although PO hiring is steadily increasing, there are concerns that ‘true talents’ are rare. POs must oversee various tasks such as development, design, and marketing, requiring generalist capabilities. An industry insider said, "A PO is essentially someone who does everything for the success of the product," adding, "From understanding customer needs to communicating with team members in various fields, it’s like being a small startup CEO."

A startup CEO with two years of experience said, "PO seems like a position open to everyone, but in reality, very few perform well," adding, "Hiring a skilled PO is more difficult than hiring a skilled developer."

This content was produced with the assistance of AI translation services.