Avoiding Common Mistakes in Project-to-Product Transformation

Overview

The journey from projects to products involves more than just introducing new team structures; it requires comprehensive changes across the entire IT operating model. Technology leaders typically start within the IT function and gradually expand to the entire enterprise.

Key Points

1. Change Across the Entire IT Operating Model: The transformation involves changes in decision rights, financials, tools, and workplaces.

2. Beyond IT: Technology leaders must integrate product-based delivery with business partner alignment to avoid plateauing value.

3. Enterprise-Wide Transformation: This requires transforming processes and structures across multiple functions, not just rolling out fusion teams.

4. Co-Leadership: Successful transformation needs technology leaders to co-lead with other executives and involve frontline employees.

Recommendations

1. Value Stories: Use value stories to link product-based delivery with specific enterprise outcomes, showing how it achieves objectives that matter to employees and leaders.

2. Redesign Engagement Model: Foster continuous collaboration and shared accountability between technology leaders and other executives instead of periodic progress reports.

3. Involve Employees: Build employees' ability to sustain transformation by involving them in co-creating change decisions and co-leading implementation.

4. Foster Product Management Discipline: Ensure shared platform teams drive adoption of technical capabilities and build architecturally sound solutions.

Major Pitfalls and How to Avoid Them

Pitfall 1: Assuming Understanding of Value

Many technology leaders assume that the value of product-based delivery is obvious to all. This can lead to a lack of commitment. To avoid this, technology leaders must craft tailored value stories that clearly demonstrate how product-based delivery improves outcomes that matter to different stakeholders. Use internal data to show gaps in current outcomes and how product-based delivery can fill these gaps.

Pitfall 2: Treating Executive Leaders as “Project Sponsors”

Executives often see product-based delivery as an IT-only transformation. Technology leaders must help executives understand that this shift impacts funding models, risk management, and talent management across the enterprise. Continuous collaboration and shared accountability are crucial. Form a steering group with key executives to ensure sustained commitment and focus on evolving the enterprise operating model.

Pitfall 3: Managing Change “Top Down”

A top-down approach can lead to change fatigue among leaders and employees. Technology leaders should adopt an open-source approach to change, inviting employees to co-create the change strategy. Engage a network of employees to identify and address challenges, ensuring sustained transformation by continuously improving ways of working.

Pitfall 4: Assuming Product Teams Know How to Access IT Capabilities

Product teams often struggle with non-functional requirements like quality testing and security. Technology leaders should apply product management techniques to foundational IT platforms, making them accessible and optimized for product teams' outcomes. Ensure that platform teams are dedicated to supporting product teams and that they adopt agile development approaches for iterative improvements.

Conclusion

To maximize the value of product-based delivery, technology leaders and enterprise executives must help the entire organization adopt new ways of working. This requires significant changes to both IT and enterprise operating models. By avoiding common pitfalls and fostering continuous collaboration, enterprises can successfully navigate the shift from projects to products, driving sustainable growth and innovation.