What is the right ratio for my product team?
- Asad Naqvi
- Sep 28, 2019
- 2 min read
Staffing resources efficiently is a key challenge for most managers. As an organization scales up, the number of engineers, designers and product managers is bound to increase. However, identifying the right ratio between engineering, UX and product management can often be a daunting task.
The magic formula of 7 +/- 2
In 1956, cognitive psychologist George Miller famously promoted the idea of the Magical Number 7, Plus or Minus 2 first in his influential paper on human capacity of processing information. You’ll find lots of people arguing for similar-sized teams, including Jeff Bezos, who blatantly advocates for the “Two Pizza” team.
Recent surveys have showed that the general rule of thumb would be to hire 1 interaction designer (4 virtual designers) for every 2 product managers. The product manager in turn can support a team of anywhere between 3-5 engineers. So you end up with a ratio of 1:1:5, give or take 2 developers, which is not close to what Prof Miller suggested. However there are other aspects that must be taken into account while actually deciding the optimum ratio for your product or organization.
Software architecture:
If your product interacts extensively with other machines, has heavy computing requirements or a complicated architecture, you probably employ a number of engineers that have nothing to do with the user interface. Many companies take care of user data and back end activities, only offering a API as their core product. But with increased competition companies have realized the centrifugal role user experience could play in the success of their services.
User experience:
A cultural focus on user experience can tweak the ratio towards the higher side. However, even companies with a small group of developers focusing on the API will find themselves needing fewer UX designers to go around. While I recognize the need for a Product Manger on an API only product, the requirements are often too technical or straightforward to justify a higher number of PM’s. Moreover, companies There has been a rise in the growth of companies like New Relic and Stripe that offer niche services focused at developers that have very litter scope for user interface, pulling ratio higher in favor of the developers.
Scale of features:
A company offering a variety of features will require a higher number of engineers and product managers. On the other hand, an enterprise company with a few simple features that are used intensively by millions of people will require more engineering resources to ensure availability relative to PM and UX.
Stage of the product:
Larger organizations with mature product offering have different needs than a startup looking for their product fit in the market. needs than startups looking for product/market fit. In the early stage, the ratio might be close to 1:1:1, while you still explore what to build. However, this ratio will most likely change as the product implementation progresses.
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