Why do so many organisations treat product development like a project? Given products have no finite end (unless they are retired), why treat them as a discrete project?
These questions highlight a prevalent issue in many companies today. Organisations often fall into the trap of managing products as projects due to many reasons.
Having worked across various industries and organisations, I’ve seen the good, the bad and the ugly when it comes to product management. Organisations that are more customer focused and strategically attuned for future growth appear to adopt and drive a stronger product mindset, those who are more focused on tech (solutions not problems) and short-term goals (in year revenue/profit) tend to operate with a more project mindset.
Some of the traps I’ve seen organisations fall into include:
- Historical Practices - Traditional project management methodologies have been ingrained in business practices for decades. The familiar structure of defined start and end points, clear milestones, and project teams can make this approach seem like a natural fit, even for product development.
- Budgeting and Resource Allocation - ?Companies often budget and allocate resources on a project basis. This can simplify financial planning and reporting, making it easier to justify expenditures to stakeholders who expect clear, time-bound outcomes.
- Perceived Control and Predictability - ?Projects are seen as controllable and predictable entities. Managers may believe that breaking down work into projects allows for better planning, risk management, and accountability, even if this is not always the case in practice.
- Short-Term Focus - ?In fast-paced business environments, there is often a focus on delivering immediate results. Projects promise quick wins and measurable outcomes, aligning with short-term business goals and performance metrics.
- Organisational Structure - ?Some organisations are structured around projects rather than products. This can create a siloed environment where teams are formed and disbanded based on project needs, rather than maintaining continuity and expertise around a product.
This last point is a key one. Maintaining continuity and establishing enduring teams is what delivers great product experiences and ensures that the product has an opportunity to grow and develop as per customers growing needs and requirements.
The risks of treating products as projects
Treating products as discrete projects brings significant risks that can undermine long-term success. The dysfunction caused by this approach manifests itself in several ways:
- Lack of Continuity and Ownership When project teams are disbanded after a project's completion, continuity is lost. This results in a lack of long-term ownership and accountability for the product's ongoing success.
- Short-Term Focus Projects emphasise immediate deliverables, often at the expense of long-term value. This can lead to compromised quality, scalability issues, and missed opportunities for innovation and improvement.
- Inefficient Handoffs Transitioning from development to maintenance through multiple handoffs increases the risk of miscommunication and errors. These inefficiencies can lead to delays, increased costs, and a fragmented user experience.
- Inability to Respond to Market Changes: A project mindset limits an organisation’s agility. Products must continuously evolve to meet changing user needs and market dynamics. A project approach hinders the ability to iterate quickly and adapt effectively.
- Diminished Team Morale and Expertise Constantly forming and disbanding teams erodes morale and reduces the accumulation of deep product knowledge. Teams that lack stability may become disengaged, affecting the quality of their work.
Benefits of Enduring Teams
Focusing on teams and structure a little more, ?I believe this is one of the fundamental challenges when organisations who are project based try to move to a product mindset. illustrating the benefits of enduring teams, consider the analogy of caring for a plant. If you plant it and walk away, the seedling will soon wither and die. Regular watering, and nurturing are necessary to keep it thriving. Similarly, products require ongoing attention, updates, and improvements. Enduring teams, akin to a dedicated gardener ensure that the product continues to grow, adapt, and flourish.
Here are key benefits of maintaining enduring, vested teams. This list is not exhaustive but identifies the five key areas I believe are fundamental in developing and maintaining a successful product business.
- Consistent Vision and Strategy - ?Teams with a long-term commitment to a product can maintain a consistent vision and strategy, leading to more coherent and aligned development efforts.
- Deep Product Knowledge - Enduring teams develop deep knowledge of the product, enabling them to make more informed decisions and identify innovative solutions. This also helps velocity and cadence.
- Enhanced Collaboration - ?Long-term teams build stronger working relationships, leading to better communication, collaboration, and efficiency. This builds trust which is again critical to the long term success of a product.
- Greater Accountability- ?When teams are responsible for a product's entire lifecycle, they are more accountable for its success, driving higher quality and better performance. Moving teams away from a “mercenary” mentality to a “missionary” mindset.
- Agility and Responsiveness- Enduring teams can swiftly respond to user feedback and market changes, ensuring the product remains competitive and relevant. Having to spin up a project team to release a new feature or respond to customer demands is highly inefficient.
Embracing Agile Practices for Product Success
Agile practices can significantly support a successful product organisation by fostering flexibility, collaboration, and continuous improvement. Agile is not "anti-process" - ?rather, it emphasises people and collaboration within a structured framework. Successful product businesses drive agility throughout the organisation, including governance, to create highly empowered, autonomous teams who can deliver results at pace. Here’s how:
- Iterative Development - ?Agile encourages iterative development, allowing teams to continuously refine and improve the product based on user feedback and market changes. This approach aligns perfectly with the ongoing nature of product development.
- Empowered Teams - ?Agile promotes self-organising teams that have the autonomy to make decisions and take ownership of their work. Empowered teams are more motivated and invested in the product's success.
- Cross-Functional Collaboration - ?Agile practices break down silos and encourage cross-functional collaboration. Development, design, marketing, and operations work together seamlessly, leading to more innovative solutions and a cohesive product vision.
- Responsive to Change - Agile’s flexibility enables teams to quickly adapt to new information, changing requirements, and emerging market trends. This responsiveness is crucial for maintaining a competitive edge in fast-paced environments.
- Continuous Delivery - ?Agile methodologies, such as DevOps, support continuous integration and continuous delivery (CI/CD). This ensures that products are always in a releasable state, allowing for frequent updates and faster time-to-market.
A product is for life, not just for Christmas!
Remember that strapline? (maybe not!) However, the analogy holds true. The shift from a project to a product mindset is critical for the long-term success of any product. Organisations must recognise that product development is an ongoing journey, not a finite project. By fostering enduring teams with a vested interest in the product's lifecycle and embracing agile practices, companies can ensure continuous improvement, responsiveness to market changes, and ultimately, a more successful, profitable and sustainable product. Just as a seedling needs constant care to thrive and grow, so too does a product.
