"Our 6 Must Reads If You're Hiring a Product Manager: Understanding Your Circle of Competence"

"Our 6 Must Reads If You're Hiring a Product Manager: Understanding Your Circle of Competence"

As the company grows, the role of a product manager becomes increasingly important. They are the ones who must replicate themselves many times over to create a force of builders who know and care enough to execute on the founders' original and shifting vision. But how do you ensure that you're hiring the right product manager for your team? In this article, we will explore the concept of understanding your circle of competence and how it can help you avoid problems and identify opportunities for improvement.

Understanding your circle of competence is a concept that Warren Buffett, one of the most successful investors of all time, has emphasized throughout his career. The size of your circle of competence is not as important as knowing its boundaries. Buffett once said, "I'm no genius. I'm smart in spots - but I stay around those spots." This quote from Tom Watson Sr., the founder of IBM, highlights the importance of defining what you know and sticking to those areas.

Mistakes are often made when we stray from our circle of competence. Charlie Munger, Buffett's longtime business partner, takes this concept beyond the realm of business and into life in general. He posed the question, "Where should we devote our limited time in life, to achieve the most success?" Munger believes that we have to figure out our own aptitudes and play within our own circle of competence. If we try to compete in areas where others have the aptitudes and we don't, we are bound to lose.

So, what does this mean for hiring a product manager? It means that you need to define the perimeter of your circle of competence and operate within it. Look for candidates who have the skills and experience that align with your company's needs. Don't be afraid to say "I don't know" and seek advice or expertise from others when necessary. It's better to admit your limitations and find someone who can fill those gaps than to pretend to know it all and risk making costly mistakes.

Now that we understand the importance of understanding our circle of competence, let's explore some actionable advice for hiring a product manager:

1. Clearly define your company's vision and goals: Before you start looking for a product manager, make sure you have a clear understanding of what you want to achieve. This will help you identify the skills and qualities you need in a candidate.

2. Look for a diverse skill set: A good product manager should have a diverse skill set that includes both technical and business acumen. They should be able to understand the technical aspects of your product while also having a strategic mindset and the ability to drive business growth.

3. Conduct thorough interviews and assessments: Don't just rely on resumes and cover letters. Conduct in-depth interviews and assessments to evaluate a candidate's problem-solving skills, communication abilities, and their ability to work well with cross-functional teams.

In conclusion, hiring the right product manager is crucial for the success of your company. By understanding your circle of competence and operating within it, you can make more informed decisions when it comes to hiring. Clearly define your company's vision, look for a diverse skill set, and conduct thorough interviews and assessments to ensure you find the right fit. Remember, it's better to admit what you don't know and seek help than to pretend to know it all and risk making costly mistakes.