Advancing into a Product-Led Organizational Model

An Approach Designed to Make It Work

Many product managers dream of escaping the feature factory, taking the driver's seat, and avoiding work on features that sales or marketing teams have already sold. However, before we delve deeper into a potential approach on how to get there, let’s confront three harsh truths:

1. What you read or hear in books, articles, and podcasts is mostly an exception, not a standard. (As much as we all wish it was.)

2. Transforming an organization from a feature factory into a product-led organization is impossible for a single individual contributor or even a team. It requires an organizational effort, and without C-level buy-in, you will likely not make any progress or may only find success with a team or two.

3. Not every organization is or will ever be ready to become product-led for various valid reasons, and that’s okay. There is nothing wrong with operating in whatever model works best for the organization (as long as it works best).

So, this article will most likely be beneficial for you if you’re working in a leadership position in an organization that is ready and willing to change how they operate.

(If this is not you, I’d still love to hear your thoughts, so please proceed reading.)

The Biggest Challenge

When conversing with other product leaders, I sense that the most significant challenge for most of them is the question of where to start. Transforming an organization can easily feel overwhelming. It's a massive initiative with many stakeholders to involve, convince, and inform—all with different requirements and needs. Wait, what? Sounds familiar, right? The situation is quite comparable to building or enhancing a product. So, my first piece of advice would be:

Use your product management skills to get the ball rolling.

Define the problem you want to solve, the objectives you want to achieve, and map your stakeholders, milestones, and priorities. Use whatever tools you are comfortable with and get started.

My personal preference is:

1. to define the ideal future state of the organization, even if it is a very high-level description.

2. Talking to the teams and stakeholders to understand and assess the status quo.

3. Identify the gap and define the actions that need to be taken to close the gap between today and the ideal state. (A simple Kanban board helps here.)

To streamline the process, I suggest adopting a categorical framework for simplicity. Personally, I lean towards employing purpose, people, process, and performance as the pillars for assessment and strategic planning. This piece provides a concise exploration of each category, shedding light on their respective significance in shaping the future trajectory.

Something to keep in mind: It is very likely that your company is not in the best shape and in its comfort zone when you start such a transformation, which is normal, as the need to transform is usually highest when companies are under pressure and entering the panic zone.

The four categories: Purpose, People, Process and Performance

1. People

At the core of successful product development lies a people-first approach—always. More often than not, organizations falter not due to a lack of hiring excellence but rather due to their inability to set up their employees for success. When I assess teams, I prioritize a few key considerations:

1. Role and Responsibility Clarity:

   Are each team member's role and responsibilities well-defined?

2. Skills

   Do you have the right skills for each team, or do you need to upskill your teams? Are each team member's role and responsibilities well-defined?

3. Understanding Team Dynamics:

   Do team members comprehend each other's roles and willingly accept them?

4. Domain Definition:

   Are domains clearly outlined, or does the system introduce excessive dependencies that hinder proper execution?

5. Collaboration Framework:

   Do teams have a clear understanding of how they intend to collaborate on a cross-functional level?

These examples are just a glimpse. The overarching aim is to cultivate an environment where individuals not only thrive but also achieve their utmost performance while finding joy in their work. While it may seem as challenging as it sounds, neglecting this aspect impedes a successful transition to a more modern product development approach.

2. Purpose

For our teams to engage fervently in their daily work on the product, providing them with clarity and focus is our responsibility as product leaders. Unfortunately, this is an area where many organizations fall short. The prevalent approach tends to be "more is more," leading to decisions that resemble a rollercoaster ride for our teams. It's not a revelation that a well-defined vision, systematically broken down into a strategy, objectives, and initiatives, fosters focus and a clearer comprehension of what the company is not pursuing. However, this clarity is often either entirely absent, confined to the minds of C-level executives, or shrouded in ambiguity.

The initial step in addressing this challenge is to assess the coherence of the narrative across the entire organization and determine its alignment. Understanding where the gaps exist and how to bridge them begins with this evaluation. One tool I particularly appreciate for its simplicity is Martin Eriksson’s decision stack.

If you’re not getting a coherent story from each individual in your team, it is the best sign that you need to invest some time into fixing this.

3. Process

Many individuals naturally shy away from rigid processes, and I resonate with that sentiment, especially when it comes to frameworks that demand strict adherence and override all else. Marty Cagan has eloquently delved into the pitfalls of such processes in some of his insightful articles.

However, there exists a different breed of process—one that operates as a liberating structure, offering freedom within defined constraints. This form of process serves as a guiding framework, fostering a shared understanding among diverse teams within an organization on how to navigate the entire product development journey, from ideation to value delivery. I've previously shared my preference for this nuanced approach in a couple of articles, and this piece provides an in-depth exploration of the process I find most effective.

The overarching idea is straightforward. Depending on your teams' maturity levels and the current state of your product organization, contemplating the introduction of a lightweight process across all teams can serve as a catalyst for streamlining product development efforts and elevating team maturity. This approach has proven beneficial for several teams I've collaborated with, but it's crucial to emphasize that it's merely a starting point.

I leverage these processes to establish a "freedom through constraints" approach, where teams initially adopt the foundational process and organically evolve it. In a healthy environment, teams view the initial iteration as a blueprint, embracing it, experimenting, and iteratively refining it. As a leader, your role at this stage is to encourage teams to share insights on what works and what doesn't. A well-executed approach creates momentum where teams learn from one another, continually enhancing their daily practices.

Remember, it's not about rigidly adhering to rules; it's about empowering teams to refine their craftsmanship, increase efficiency, and consistently deliver more valuable products.

The process I prefer using is an enhanced version of the Double Diamond:

When executed thoughtfully, this seamlessly extends to your portfolio management. In my present setup, we've taken this approach a step further, implementing it across all departments. The outcome has been instrumental in fostering alignment, resulting in a unified company portfolio.

If you want to learn more, I recommend listening to my recording with

Melissa Perri

4. Performance

While C-level focus often centers on performance, my assessment prioritizes purpose, process, and foundational elements. Teams struggling with performance issues typically lack clarity in purpose, face process challenges, or encounter skill and collaboration issues. I advocate addressing these foundational aspects first, as enhancing team performance leads to superior outcomes and improved business results.

Building on previous insights, cultivating a people-centric culture is crucial. Ensuring role clarity, understanding collaborative dynamics, and defining domains clearly are essential steps. Introducing a flexible process, serving as a guiding framework, empowers teams and fosters an environment for continuous improvement.

Summary

Organizational transformation is a marathon, not a sprint. Persistence is key to recognizing the uniqueness of each organization. While there's no one-size-fits-all guide, a structured and thoughtful approach significantly enhances the likelihood of success. It's not uncommon to encounter setbacks, even with the best intentions and frameworks. Nevertheless, I urge you to persist. Operating within an empowered and product-led environment is an immensely rewarding experience.

If you decide to embark on this transformative journey, remember that each organization is unique. Some may boast an inspiring vision known to all, while others may have finely tuned processes that suit everyone. On the flip side, some organizations might lack even the most fundamental elements.

There's no one-size-fits-all guide for a successful transition, but approaching it with structure and careful consideration significantly enhances the likelihood of success.