Creating an Optimal Technical Program Manager (TPM) Organizational Structure

The ideal TPM org structure depends on multiple factors that can change over time: company priorities, organization size, and team’s maturity. The program scale and cross-functionality are also important to consider when designing the TPM org structure. 

 Centralized vs. Decentralized Technical Program Manager (TPM) Organizational Structure Models

TPM organizations within a Technical Program Manager (TPM) Organizational Structure can either be centralized under a single TPM leader, who may be at the Director level or higher, or embedded directly within smaller engineering or product teams, reporting to the respective team managers in a decentralized model.

	CENTRALIZED	DECENTRALIZED
PROS	Aligns TPMs with company level priorities allowing them to see the complete picture and cut across team boundaries. Fosters excellence due to uniform standards for defining the TPM role and responsibilities, assessing performance, and hiring practices.  Reduce duplication of work by streamlining processes across the organization.	Promotes greater ownership, alignment with team’s goals. Promotes domain expertise with direct influence on strategic decisions.  Provides deeper connection and belonging with the immediate team.
CONS	Difficulty getting a seat at the table and influencing critical decisions.  Viewed as outsiders which may impact relationships and collaboration.	Inconsistent results from TPMs due to differences in hiring standards and performance assessment.   Inefficiencies due to potential lack of communication between TPMs from different teams.  Stagnated career growth due to lack of scope or role understanding.
BEST FOR	Medium to large organizations with more than 5 TPMs.	Startups or small organizations with less than 5 TPMs.

Many large organizations (100+ TPMs) blend these approaches, forming multiple, smaller centralized teams aligned with specific business verticals. This provides the benefits of both models since at this point, standards have been established and strong TPM leaders are in place to lead TPM teams.

Reporting Lines: Engineering vs. Product

In both centralized or decentralized models, the TPMs or TPM manager can report to either an engineering leader or product leader. 

	REPORTING TO ENGINEERING	REPORTING TO PRODUCT
PROS	Maintains technical edge for TPMs, fostering closer collaboration with engineers and ability to influence technical decisions.  Allows for TPM support for key engineering programs where product managers may not be involved. Improves engineering operational efficiency and productivity.	Stronger understanding of requirements and customer needs due to involvement in the early phases of product development lifecycle.  Allows for stronger collaboration with the product team.
CONS	TPMs may not feel empowered to hold PMs accountable for deliverables. TPMs may get pulled into tactical tasks.	TPMs may not be included in technical discussions resulting in poor program execution.  Can cause role confusion between PM and TPM due to the overlapping aspects of the two roles.  TPMs may view becoming a product manager as a better career prospect increasing churn and impacting execution.
	RECOMMENDED: Since there are more benefits when reporting to engineering leaders, it is more commonly seen across tech companies big and small as shown in the following examples.

Case Studies

• At Meta, centralized TPMs in areas like Infrastructure and Instagram usually reported up to their respective org-level VPs - for example, VP of Infrastructure TPM team reported to SVP of Infra Engineering. In cases of smaller TPM teams or individual TPMs, they would most commonly report into engineering leaders while about 10-15% report into a product organization.

• At Cruise, TPMs in both software and hardware sectors report to senior engineering leaders, ultimately under the SVP of Engineering and CTO.

• At a smaller startup, TPMs reported to a centralized Program Management Office (PMO) under the SVP of Engineering.

• At companies like Doordash and Github, TPMs sometimes report to Engineering Operations leaders who generally report to the CTO.

Conclusion

The effectiveness of any TPM structure depends significantly on how well the leader supporting the TPMs understands the role and function. Leaders should focus on how TPMs can maximize value delivery to both users and the organization.

Also Read, How to Setup TPMs for Success: Essential Tips for Teams and Organizations

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Building a new TPM organization and not sure where to start? I can help you setup an effective org structure, implement performance management systems, and hire the top talent. Set up a free consultation call to learn more about my fractional and consulting services to empower your organization to execute strategically.

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Frequently Asked Questions (FAQs)

What is a TPM in an organization?

A Technical Program Manager (TPM) is responsible for overseeing and coordinating the technical aspects of a project or program, ensuring alignment with company objectives and facilitating communication between different teams.

What factors influence the optimal TPM org structure?

The optimal TPM org structure is influenced by company priorities, organization size, team maturity, program scale, and the cross-functional nature of the teams.

What are the pros and cons of a centralized TPM org structure?

Pros: Aligns TPMs with company-level priorities, fosters excellence through uniform standards, and reduces duplication of work. Cons: May have difficulty influencing critical decisions and be viewed as outsiders, which can impact collaboration.

What are the advantages of a decentralized TPM structure?

In a decentralized setup, TPMs promote greater ownership, enhance alignment with team goals, foster domain expertise, and ensure a deeper connection with the immediate team.

How do reporting lines differ in centralized vs. decentralized TPM models?

In a centralized model, TPMs typically report to a single leader at a director level or higher, while in a decentralized model, they are embedded within engineering or product teams and report to respective team managers.

What are the benefits of TPMs reporting to engineering versus product?

Reporting to Engineering: Maintains a technical edge, fosters collaboration with engineers, and improves operational efficiency. Reporting to Product: Enhances understanding of customer needs and fosters collaboration with product teams.

Which TPM org structure is best for large organizations?

Large organizations often benefit from a blended approach, creating multiple centralized teams aligned with specific business verticals, leveraging the benefits of both centralized and decentralized models.

How do companies like Meta and Cruise structure their TPM organizations?

At Meta, centralized TPMs report up to their org-level VPs, while at Cruise, TPMs report to senior engineering leaders, including the SVP of Engineering and CTO.

Why might TPMs prefer reporting to engineering leaders?

Reporting to engineering leaders allows TPMs to maintain their technical edge, influence technical decisions, and engage more directly in engineering processes.

What are some challenges faced by TPMs in a decentralized model?

Challenges include potential inefficiencies due to lack of communication between TPMs from different teams, inconsistent results from TPMs, and stagnated career growth due to limited scope or role understanding.