Funding Projects Vs. Teams - All Things Product Podcast with Teresa Torres & Petra Wille
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 touches the core of shifting from a project-based mindset to a product operating model. Teresa and Petra unpack what it actually takes to move toward team-based funding—especially when continuous discovery is involved. From annual planning and ROI modeling to bridging the communication gap with finance, they talk through the practical, messy, and often political nature of this transformation.
If you’re a product leader, product manager, or work closely with finance, this episode is packed with insights on how to drive outcomes, not just output—and why it matters.
What we talk about:
- Why project funding clashes with discovery work
- What CFOs look for in project-based funding
- The benefits of shifting to funding teams instead
- Step one: Fund the team, step two: Assign an outcome
- Helping finance teams make the shift
- Role of product ICs vs. product leaders in finance conversations
- Translating between product and finance language
- Naming conventions and how to make them finance-friendly
- VC-style funding for teams: Fund based on learning and outcomes
- Case study: Agency using per-iteration funding
- Product teams understanding their cost and return
- The mismatch between incremental thinking and ROI
- Why product teams must aim for exponential outcomes
Key Takeaways:
- Funding teams instead of projects supports flexibility, learning, and continuous discovery.
- Assigning clear outcomes to teams helps maintain accountability and aligns with finance goals.
- Product people (especially ICs!) can be powerful allies in helping finance understand value creation.
- Understanding team costs—and expected return—is critical for sustainable product development.
- Bridging the language and mindset gap between product and finance is a core leadership skill.
Resources & Links:
- Follow Teresa Torres: https://ProductTalk.org
- Follow Petra Wille: https://Petra-Wille.com
Mentioned in the episode:
- Product vs. Project Operating Models - Teresa and Petra reference their past episode on this foundational concept.
- Felix Fichtl: Profitability Unplugged: Navigating Data Gaps While Delivering Financial Insights (Felix is a CFO who spoke at Product at Heart 2024 on bridging finance and product (check out his talk if you can find it).
- David Bland, in a conversation with Barry O'Reilly about his book Testing Business Ideas: A Field Guide for Rapid Experimentation, contrasts traditional annual project budgeting with an “internal VC-style” funding approach.
- Tristan Kromer discussed alternative funding models that move away from traditional annual project budgeting in his Four Must-Haves in Your Innovation Process
Join the Conversation:
Have thoughts on this episode? Leave a comment below.
Full Transcript
Full transcripts are only available for paid subscribers.
