The Product Operating Model: The Hegelian Hero Articulating The Product Organization
In the dynamic realm of software development, the effective implementation of a product operating model is crucial for companies striving to innovate and consistently deliver value to their customers. This model isn't just about creating technology-powered solutions; it's about achieving meaningful outcomes for both customers and the business. To navigate this complex landscape successfully, companies need visionary leaders who can articulate and integrate various aspects of their organization acting as modern-day Hegelian heroes.
Understanding The Product Operating Model
1. Small, frequent releases. Companies working in this model build products using small, frequent and reliable releases, often leveraging continuous integration/continuous deployment (CI/CD) practices. This enables quick responses to customer needs, early detection of problems and validation that new capabilities deliver the intended value.
2. Empowered product teams. Product teams are tasked with solving problems and achieving desired outcomes rather than simply building a list of features. Teams are empowered to determine the best solutions, ensuring they are valuable, usable, feasible and viable.
3. Customer-centric vision and strategy. Product leaders collaborate to identify the most critical problems to solve, guided by a strong, compelling product vision that focuses on customer needs.
4. Focus on outcomes. Success is measured by the impact of solutions on customers and the business, not merely by the delivery of features.
The Role Of Product Operations
Product operations is a critical discipline within the product model that helps scale the product management function effectively. It ensures that teams are surrounded with all of the essential inputs to set strategy, prioritize, and streamline ways of working. Melissa Perri and Denise Tilles have highlighted several key aspects of product operations in their respective writings and experiences in product management leadership:
• Connecting financial metrics to software delivery. Product operations links financial performance directly to the delivery of software features, ensuring alignment with business goals.
• Facilitating collaboration. It enhances working relationships between go-to-market teams and software teams, fostering better communication and cooperation.
• Streamlining information flow. Ensures the right information reaches the right teams at the right time, aiding in quick decision-making and strategy adjustments.
• Setting up a product management operating model. Helps in creating a structured approach to manage and monitor product strategies effectively.
These are aspects that I've seen come to life in various organizations, particularly in how product operations can make or break the success of product strategies.
Example Of Misunderstanding The Product Operating Model
In my experience as COO of a company that unfortunately misunderstood the essence of the product operating model, I witnessed firsthand how such misconceptions can derail even the most promising projects.
In this particular case, product managers were reporting to the chief commercial officer (CCO), who had a background in sales and marketing but lacked a deep understanding of what product management truly entails. The CCO mistakenly believed that product managers were simply project managers who were responsible for delivering features on a set timeline rather than driving the product vision and strategy.
This fundamental misunderstanding led to a series of misguided decisions. Instead of empowering product managers to solve customer problems and deliver value, they were tasked with merely executing a predefined list of features without considering their impact on the overall product strategy. As a result, millions of dollars were wasted on projects that failed to meet customer needs or align with the company's long-term goals. Innovative ideas were stifled, and the company missed out on significant market opportunities because the product operating model was not properly understood or implemented.
This experience underscored for me the critical importance of having product managers report to leaders who truly grasp the nuances of product management. The product operating model thrives when product teams are empowered, informed and aligned with a clear product vision—something that simply can't happen if the leadership lacks a deep understanding of what product management really means.
The Hegelian Hero In Product Operations
Drawing inspiration from Hegelian philosophy, the role of product operations can be likened to that of a Hegelian hero—synthesizing diverse elements within the organization to drive innovation and progress. Here's how product operations embodies this role:
1. Holistic perspective. In one of my roles, I saw how product operations provided a comprehensive view of the organization by integrating financial, customer and market insights to inform product strategies. This holistic perspective enabled the company to align its product vision with its business goals effectively, which is essential for driving innovation.
2. Vision and synthesis. During a particularly challenging project, product operations synthesized various data points and stakeholder inputs to create a unified product vision and strategy. This was crucial for ensuring that all teams were aligned and working toward common goals, which ultimately led to a successful product launch.
3. Overcoming obstacles. I recall a scenario where organizational barriers were hindering the implementation of a new product model. Product operations played a key role in navigating these obstacles by facilitating communication across teams and streamlining processes, which enhanced overall efficiency and led to a smoother implementation.
4. Empowering teams. By providing the necessary tools, data and processes, product operations empowered product teams to make informed decisions and innovate effectively. This empowerment was evident in a project where the team was able to solve complex problems and deliver a product that exceeded customer expectations.
Conclusion
The product operating model, supported by robust product operations, is essential for delivering technology-powered solutions that generate real value. However, the success of this model hinges on the presence of visionary leaders who can act as Hegelian heroes—synthesizing diverse ideas and driving the organization toward its strategic goals.
In thof the manager of the Uruguay national team, Marcelo Bielsa, "Football becomes less dramatic when it's executed by those who know what they're doing." The same applies to software development. When knowledgeable and visionary leaders guide the process, the path to innovation becomes clearer and more achievable.
