"Figma’s Early Days — How Patience & Discipline Fostered a Killer Product: The Time Value of Shipping"

"Figma’s Early Days — How Patience & Discipline Fostered a Killer Product: The Time Value of Shipping"

In the world of product management, the concept of "shipping" is considered a core principle. It suggests that it's better to release an imperfect product and learn from customer feedback than to wait for perfection. This principle is closely tied to the idea that the value of shipping a product now is worth more than delivering it later, known as the Time Value of Shipping.

When Dylan and Evan began developing Figma's first product in 2012, they faced the challenge of building a vertically integrated product that would provide the best user experience. They recognized that the browser was the ideal platform for a collaborative design environment. However, technical capabilities like WebGL were still in their early stages, making it a difficult task. Despite this, they persevered and introduced an efficient design process that drove organization-wide adoption and opened up large enterprise opportunities.

The journey to success for Figma was not a quick one. Instead of focusing on complex pricing tiers from the beginning, they prioritized building a feature-complete Enterprise tier and driving widespread adoption. They understood that Product-Led Growth (PLG) takes time but has the potential to compound beautifully. By patiently building value and focusing on user adoption, they were able to lay a solid foundation for future growth.

One of the key factors that contributed to Figma's success was their data obsession. They carefully analyzed user data and made strategic decisions based on it. They cut users in various ways, including role, job title, geography, operating system, source, and generation. This level of data-driven decision-making allowed them to refine their product and tailor it to specific user segments, ultimately leading to better user experiences and increased customer satisfaction.

The Time Value of Shipping framework further emphasizes the importance of delivering customer value in a timely manner. Just like the time value of money, where a dollar today is worth more than a dollar tomorrow, delivering customer value now holds more significance than delivering it later. This is because customer expectations rise over time, and delaying the release of a product means having to compensate for increased expectations.

The trajectory of customer expectation growth and value creation is clearly visible when visualized. The former grows exponentially over time, while the latter plateaus. This exponential growth in customer expectations can be attributed to the fact that the longer customers have to wait for a solution, the more likely they are to switch to a substitute product. Therefore, it's crucial to find the right balance between delivering value and meeting customer expectations.

The concept of the Minimum Viable Product (MVP) also comes into play when considering the time value of shipping. The scope of an MVP tends to grow the longer it takes to ship. This can lead to a "gap of doom" where companies realize they cannot keep up with industry innovation and pivot to a more attainable market. However, it's important to note that not every MVP should be shipped at the first intersection of customer expectation and value curves. Sometimes, holding off on a launch, even if it meets expectations, can be the optimal decision. This is especially true when considering the diminishing returns of network effects after the initial marketing push. The best products not only satisfy customer needs but also leverage the rewards of virality that come with delighting users.

In conclusion, Figma's early days serve as a testament to the power of patience and discipline in building a killer product. By focusing on delivering customer value, analyzing user data, and understanding the time value of shipping, Figma was able to create a product that revolutionized the design industry. For aspiring product managers, here are three actionable pieces of advice:

1. Prioritize user adoption and building value: Instead of fixating on complex pricing tiers from the start, focus on building a feature-complete product and driving widespread adoption. This will lay a solid foundation for future growth.

2. Embrace a data-driven approach: Analyze user data to gain insights and make informed decisions. Cut users in various ways to refine your product and cater to specific user segments.

3. Find the right balance between delivering value and meeting customer expectations: Consider the time value of shipping and aim to deliver customer value in a timely manner. Be mindful of the exponential growth of customer expectations and the need to compensate for delays.

By following these pieces of advice, product managers can navigate the challenges of building successful products and foster a culture of patience and discipline that leads to killer outcomes.