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