Newsletter (September 2024): Why Shift from Project to Product?

13 Sept

Transitioning from a project-based approach to a product-driven mindset can significantly enhance how organizations deliver value and meet customer expectations. Unlike projects, which have a defined end date, products are continuously evolving and require adaptability to meet changing market needs. That ability for products - and thus teams - to quickly respond and adapt, requires an environment which is supportive of change. Many organizations today are restricted in that area, because of their structure and decision making processes. As Erica Engelen, Team Topology Valued Practitioner will say in a future talk at the Project to Product Summit “ Bureaucratic organizations are where products go to die”. Learn more about the event.

In 2019, Gartner predicted that 85% of organizations would have adopted - or plan to adopt - a product-centric delivery model. By 2024, most digital leaders would benefit from this approach, with nearly 80% of IT organizations undergoing restructuring to embrace it. Clearly, this hasn’t happened. Yes, many organizations have tried it, but according to The 2023 Project to Product report, only 2% of project to product shifts are reaching maturity. This is scarily reminding us of the unchanging percentages of organizations who keep failing at business and 70% of all digital transformations fail.

Book a call with experts

Afraid of failing or having trouble with your transformation? We are here to help. Book a call with our experts to breakdown your problem and solution.

Many organizations underestimate the change required to make this shift and treat it as local or fragmented optimization while it actually impacts the entire organization. Understanding your socio-technical system and how each small change impacts and triggers other aspects in your organizaiton to change as well, is crucial. Organizations must create an environment where empowered teams can adapt and innovate. This is where Team Topologies comes in. The shared vocabulary, practices and principles enable your teams to sense when change is needed, share it with each other and optimize instantly.

How to Achieve a Product-Driven Transformation

Unlike traditional project management, which often emphasises short-term gains and immediate outputs, a product-driven approach focuses on sustained value and adaptability. Products are built for the future and we can’t control that.

As highlighted in Project to Product by Mik Kersten, this shift is essential for achieving faster flow and reducing bottlenecks—a core principle also emphasized in Team Topologies.

If you decide that a product-driven transformation is right for your organization, restructuring your teams and workflows is essential. Here are some practical steps that you could take:

Assess Current Structures: Evaluate existing team configurations, boundaries and workflows to identify areas for improvement and alignment with the product-oriented approach.
Design Teams Around Value Streams: Organize teams based on the value streams they will serve, ensuring that team structures reflect the product architecture and customer needs. Learn how to do that with the “Organizing for Independent Value Streams Bundle” which includes two video-based, self-based courses “Team Topologies for Managers” & “Independent Value Streams with Domain-Driven Design”.
Foster a Culture of Autonomy: Allow teams to make decisions related to their products, encouraging accountability and ownership.
Utilize Metrics for Continuous Feedback: Implement flow metrics and feedback loops to monitor team performance and product delivery, enabling data-driven adjustments and improvements.
Engage Leadership and Stakeholders: Ensure that executives and stakeholders understand and support the transition, aligning organizational goals with the new product-oriented strategy.

Sep 19th: Join us for an Open Forum discussion

Have questions about transitioning from project to product? Join our Open Forum with Rich Allen and Erica Engelen.

What’s Coming Up Next?

We are constantly on the lookout for events related to Team Topologies and the principles it embodies. Check all of the upcoming ones in our events section and do let us know if you missed any.

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