I see some practitioners and leaders using these terms interchangeably. I thought I’d take the time to clarify the overlaps and differences, first of all for myself. Product-Led Organization—As opposed to Sales/Engineering/Marketing/Professional Services-led organizations, a Product-Led organization is structured to deliver value through the product. These organizations often have product-oriented leaders at the helm. Some examples – are Tesla, Spotify, and Atlassian. Product Operating Model (POM)- is about the way the product/engineering organization operates. It typically entails empowered product teams, aligned and steering towards customer outcomes. Spotify and Amazon are two famous tech organizations that use a product operating model. This model has gained popularity in recent years as more organizations move from project and feature factories toward a product focus. Product-led growth (PLG) is a go-to-market strategy in which the product itself is the leading mechanism for acquiring customers. Think Slack, Dropbox, JIRA, Zoom, Canva. Think freemium, viral loops, and activation. What’s the relationship between these three terms? A company could be a Product-led Organization, leverage a Product Operating Model, and rely on a PLG motion. It could also do each one of these or any mix. A Product Operating Model would thrive in a Product-led Organization, but it would be an uphill battle in a Sales- or Marketing-led organization. A Product Operating Model is beneficial if you’re trying to build a PLG motion because it’s so product-centric. I’m having a headache imagining an organization trying to achieve PLG without it. As an example – I was talking yesterday to the COO of a company that recently shifted from being a “projects company” to being a “product company”. They are looking at applying a Product Operating Model to help support this transition. A futures exchange I’m working with is adopting a Product Operating Model as part of a strategy to leverage their product to accelerate growth significantly. PS What’s the relationship between a Product Operating Model and Agile? A Fortune 50 Consumer Goods company I’m working with has implemented a product operating model without even calling it that, as part of understanding really well what’s the intent of Agile and Scrum. Said another way – It’s tough to discern Awesome Agile from a Product Operating Model. (And I’m not talking about the theater / rituals here. I’m talking about the principles being used to design the organization and run it). Yours, |
Are You Struggling to Scale Your Organization ? Need agility but dubious of process BS/dogma? I share reflective, pragmatic, principled takes on how to approach scaling your organization leveraging the essence (rather than theater) of product operating models, agile practices and frameworks, and business operating systems such as EOS and OKRs.
Ever feel like your product organization is stuck in the mud? You’re not alone. Many teams start strong, laser-focused on delivering value and achieving product-market fit. But as success scales, things get messy. Dependencies pile up, alignment fades, and suddenly, you’re running a feature factory instead of an empowered product organization. Why Do Product Organizations Stall? Here’s the typical lifecycle: Early Days: One team, minimal dependencies, clear goals. It’s all about finding...
Leading an agility journey can often feel lonely. These days, especially, there’s plenty of complexity, and rapid change—what we’ve come to know as VUCA (Volatile, Uncertain, Complex, Ambiguous) or even the newer BANI framework (Brittle, Anxious, Nonlinear, Incomprehensible). Building and growing a consulting/advisory business in the agility/product/scaling field also provides plenty of VUCA and BANI. Peer groups, like Masterminds or the Forums used in the Entrepreneur Org (EO) / Young...
I often discuss developing your company/operating model using product techniques. Today's post is a collaboration with my fantastic wife, Vered, where she outlines a somewhat concrete playbook for doing just that—developing your product playbook like it was a product—collaboratively, iteratively, focusing on outcomes, steering with evidence. It's the essence of Product Operations. Enjoy! This article is inspired by recent conversations I had with Product Leaders about product operating...