Product management Summit 2022

STKI IT Knowledge Integrators
Company Confidential
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Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph
From
Project-led
to
Product-led
Organization
Galit Fein
EVP and Senior Analyst @ STKI
How to create tech
products people love
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Why are we here?
Because something is not working …
After years of OCIO, BRM, PMOs, Digital Transformation,
Agile, Design Thinking and Customer Journeys, we are still
not there (yet)
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Project Success
Based on CHAOS 2020: Beyond Infinity
https://hennyportman.files.wordpress.com/2021/01/project-success-qrc-standish-group-chaos-report-2020.pdf
Successful
31%
Challenged
50%
Failed
19%
But even projects that are considered successful
(on- budget, have met all the business requirements),
often fail to deliver in terms of user satisfaction and
usability
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We all familiar with systems developed within enterprises
made by great people, with tremendous investment,
but with very mediocre satisfaction and poor usability
Enterprise
Start-up
Meanwhile, often with less investment, Israeli startups
develop productsthat conquer the world. Let's learn
from them - what is the secret of their success?
Start-ups deliver PRODUCTS NOT PROJECTS
lesson
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“Life is too short for bad products”, Marty Cagan
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SW delivery at most enterprises
is not even close
to SW delivery at the best tech companies
(AND at the newcomers)
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Chinese proverb
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From Project to Product
Unfortunately, it's not an evolution, it's a DISRUPTION
Continuous evolution, ongoing, no firm end
dates (or end of the product)
Formal start and end dates
Annual, calendar-driven
Continuous budgeting with frequent checkpoints
for funding and resources changes
On-time and on-budget
(sometimes also business outcomes)
Business-centric metrics (customer satisfaction,
profit, market share, etc)
TIMELINE
BUDGETING
METRICS
Project Product
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OrgProcesses & Structure Matter
Current business processes
are too slow
Ideas
Business case
Prioritize
Requirements
Design
Develop
Test
Implement
CEO
Head of
department 1
Employee 1
Employee 2
Employee 3
Head of
department 2
Employee 4
Employee 5
Employee 6
Head of
department 3
Employee 7
Employee 8
Employee 9
Traditional org structure was originally
copied from the military
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Digital Transformation didn’t solve the problem
CEO
Head of
department 1
Employee 1
Employee 2
Employee 3
Head of
department 2
Employee 4
Employee 5
Employee 6
Head of
department 3
Agile Team
Digital Transformation
“Culture eats strategy for breakfast”,
Peter Drucker
We changed several processes in one department, but
the business model, roles, org processes, structure,
CULTURE remained the same. Nothing changed
everything
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Neither did AGILE
Business
Strategy
ANALYSIS
BUSINESS
REQUIREMENTS
Business
Referent
OCIO
Budget
REQUIREMENTS
SPECIFICATION
UX
DEVELOPMENT
IMPLEMENTATION &
DEPLOYMENT
DESIGN
Developers
TESTING
QA
INFRASTRUCTURE
SECURITY
INTEGRATION
PROCUREMENT
IDEAS/
BIZ CASE
PRIORITIZATION
Even if development is AGILE, entire org processes work as WATERFALL
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The Failures of RPA projects are
the SAME
Failures of Project Delivery
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email attachment Database excel BI
CRM ERP
RPA Projects
We took a business process and partially automated it
email attachment Database excel BI
CRM ERP
Partial automation
The entire process remained the same
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Business Ideas Prioritize Requirements Design Develop Test Implement
Partial Project Process
Optimization
BRM OCIO AND
We have improved the project mng process over the years, but the process itself
has not changed and the complaint about it has always remained the same –
it lacks innovation, sometimes misses a goal, and is too slow
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Software Development Managed as a PROJECT
IT as an
order taker
Feature-driven (OUTPUT) process,
driven by Sales and Business specialists
Marketing:
a feature for the campaign
Sales:
a feature for new customers
Digital & CX:
a payment integration
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Feature-based Roadmaps
― How much money will we make?
We can't know. It depends entirely on how good the solution will be
― How much will it cost?
It’s extremely hard to predict. Most experienced developers will
refuse to give an estimated cost at this stage
Requirements prioritization
is based on 2 questions:
1. Marketing: a feature for the campaign
2. Sales: a feature for new customers
3. …
100. Digital & CX: a payment integration
Highest business value
requirements first
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Date-based Roadmap
Roadmap is where we can see and track
date-based commitments
On-Time?
Most companies rarely trust the dates anymore
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Software Development
Managed as a PRODUCT
DEVELOP
PRODUCT TEAM
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Product is done by the Multifunctional,
Dedicated, Constant Product Team
Product
manager
Design Developer
Tester
Developer
Developer
Product Team
Can include:
• Product Marketing
• User researchers
• Data analysts
• Tested automation
developers
Must have:
Design DEV
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Product
manager
Design Developer
Tester
Developer
Developer
For this matter, they need to have a solid
understanding from the management:
1. Org strategy and product vision
2. Business objectives
Tell the team whatyou need
them to accomplish and howthe
results will be measured and…
Product Team
is equipped to figure out the best ways
to solve the business problems assigned to them
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They are equipped
to solve complex problems
for the enterprise
They are
given
clear objectives
They are empowered to figure out the
best way to meet those objectives and
they are accountable for the results
.
Let the team figure out
the best way
to solve the problem
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Great Products made by
Ordinary Empowered People
Ownership
Autonomy
Alignment
Responsibility for a meaningful problem,
connected to the larger cause
Enough tools & power to solve the
problem in the best possible way
How well the org supports
its teams to do their jobs
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Customer needs
Product Team is responsible for
Customer Outcome understanding
Front line to
the Customers
at least 30 customer
interviews!
Product strategy
Business objectives
Company vision
GIVEN:
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Authority to optimize and change the entire
business model, process, or part of it if needed
Allthe decisions about the product
(functionality, technology, design, monetization,
and offline experiences) will be made by the
product team only
Authority to solve problems
autonomously
Company vision Product strategy
Business objectives Customer need
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3 Work Models of
Product Manager :
1. Product Manager can escalate every
problem up to the senior manager
2. Product Manager can get help from
Business Owner with resources if needed
3. Product Manager does her job
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Product
Manager
Make no mistake, it's not a PMO evolution.
The Product Manager needs to be among
the strongest talent in the company
Key responsibilities:
• Opportunities evaluation
• Determination of what gets built and delivered to
customers. Product backlog responsibility
• Make Product work
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01
02
03
Every business depends on customers.
What customers buy, or choose to use, is your product
The product is the result of what the product team builds, and
the Product Manager is responsible for it
When a product succeeds, it's because everyone on the team
did what they needed to do. But when the product fails,
it's the product manager’s fault
Product Manager
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Why It
Works
• Product team is not off the hook because something
launches. They don't rest until and unless it's working for
the users and for the business
• Product team is responsible and accountable for the
entire Product and Product Lifecycle,
product evolution, and maintenance
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PRODUCT Management Process
Outcome-driven process is based on understanding
that half of our ideas are just not going to
work.
It takes several iterations to get the implementation
of the idea to the point where it delivers the
necessary business value (Time to Market )
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PRODUCT Planning & Roadmaps
A lot of product-led companies don't work with roadmaps
and timelines anymore
But if you choose to work with Roadmap
Timeframe is OK
Business Objectives Mapping
Prioritization of Business results
rather than features
It shouldn't be a hard date commitment
(only when true date constraint)
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Traditional Budget Planning Discovery-driven Budget Planning
Project’s assumptions are made in advance New ventures are uncertain from the start
Product
Budgeting
Beloved
Budget
Planning
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Continuous Discovery and Delivery
we need to discover the product to be built and
we need to deliver the product to the market
UX DEV UX DEV
Ongoing and parallel activities of the same team
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Team Duration
• Durability of the team is important
• Long-distance running, not sprinting
• It takes some time to gain enough expertise in
the area to innovate
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Team Types
Responsible for how the
product is experienced (getting a
solution for the problem) by users in
the form of apps, UIs, solutions, or
journeys.
Provide common services to be
implemented once but used in
many places, help in managing
complexity by encapsulating
difficult or specialized areas of
the product.
.
Experience Teams Platform Teams
Data Teams
Focus on the process of collecting,
storing, and sharing data within
an org, they use that data to build
a feature for an experience team or
build a whole data product.
Team communication
Team communication
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Product-led Org Structure
driven by Value to Customers, Employees, and Shareholders
Back to Silos. Very different ones
Product 3
Product 1
Product 2
Value-based Process,
powered by Tech
powered by Tech
powered by Tech
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Product
manager
Product
designer
Developers Product
manager
Product
designer
Developers
Product
manager
Product
designer
Developers Testers
Team “Eagles” Team “The A-Team” Team “Masters of Spin”
Head of product Head of design
Head of development
(including core business experts)
Organization
WHO REPORTS TO WHOM? Intentionally Flat and Constant Structure
All the rest of the org is built to support the Product teams and help their success, they are measured by it
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Measure What Matters
How Google and the Gates Foundation Rock the World with OKRs
Objectives and Key Results -
OKR technique asks 2 essential questions:
Objectives
what you want to have
accomplished.
They focus on areas to improve
and succeed
Key results
how you’re going to get it done.
Objectives are measured with actual
changes in customer behavior, not by
the nu of features you create
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OKR system is a significant improvement over
traditional methods
Focus Account
ability
Culture
change
1-3 Objectives
1-3 Results
Regularly
Every product team tracked
their objectives weekly
If fail, they will have help from
their peers or management
Transparent
Every team’s objectives
and current progress
CEO & executive team
Responsible for the org
OKRs
Head of products
Responsible for the
product teams objectives
How is your work figure into the big picture
(by nearly constant feedback), without being
micromanaged
OKRs are decoupled from compensation
and promotion decisions
"a sum is greater than its parts"
Distributed system
employees set their own key results and
own them and share them
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Product OKRs Examples
Get different customer types to
complete their “jobs” in the product
faster in the 1st entry
Increase % of users who login 3 times
within 10 days after sign-up from 5
to 15 %
O
KR
Improve user onboarding and
activation experience
O
KR Increase self-serve activation
rate from 15% to 30%
85%
34%
17%
8%
Improve the first-entry
gamification components to
boost user engagement
Increase the average number of
product page views from 8 to 10 per
week per user
O
KR
Allow more personalization
opportunities to create an emotional
attachment to the product
O
KR Reduce the users’ usage drop-
off after 40 days average from
60 to 40 %
57%
9 views
63%
58%
Source: okrexamples.co
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Start now, but give it time
It can only work if you completely
trust and empower your people to
do their job
It can only be done by people, that
feel real ownership for a product
Start with a pilot. If the leaders are
not committed, don’t even try
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how most companies
create products
how the companies
create products
1. The role of technology
2. The purpose of the people who work on technology
3. How they expect these people to work together to
solve problems
The differences between
are fundamental
It's come down to the views they have on:
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Management style
Product strategy
The role of IT
Command & control
Micromanagement
Product teams are equipped
to solve problems yet work for
the business
Prioritized list of
business features for
this year
IT is a subservient
role to the business
Software is
the business
Established org Product-led org
Trust and people empowerment
by feedback & coaching
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It's a difficult change, but if you
develop software according to this
method, you might end up with
products people love
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Thank you
Galit Fein
EVP and Senior Analyst
@ STKI
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