Shifting to Product: Insights on Organizational Transformation and Reflecting on Project to Product Event with Mik Kersten
Nov 7, 2024
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Mik Kersten, CTO at Planview and author of "Project to Product," dives into the crucial shift from project-centric to product-driven models. He highlights the importance of executive sponsorship and business alignment for successful transformation. Kersten discusses Vanguard's journey, emphasizing how flow metrics enhance decision-making and alleviate challenges like technical debt. The conversation sparks optimism about integrating agile practices and advanced frameworks like cloud and microservices, positioning them as vital for future organizational advancements.
Organizations must prioritize engaging the entire business community and securing executive sponsorship for successful transitions to product-oriented models.
Addressing technical debt and prioritizing it alongside new feature delivery is essential for organizations to effectively adopt product operating models.
Deep dives
Embracing the Product Operating Model
Organizations are increasingly recognizing the need to shift from a project-based approach to a product-oriented model to succeed in the digital age. This transition demands a fundamental rethink of how work is delivered, focusing on capabilities rather than discrete projects. Many organizations, once viewed as laggards, are now being urged to adopt this model, realizing that simply implementing Agile or DevOps practices is insufficient without a broader operational shift. Presentations from strategic consultancies, like McKinsey and Bain, emphasized the necessity for more guidance as these organizations navigate this significant change.
Key Catalysts for Change
The realization that Agile transformations have often plateaued has prompted organizations to seek a more comprehensive framework for aligning investments and work strategies. Leaders are beginning to understand that past Agile initiatives may have concentrated too heavily on IT without integrating the wider business perspective. Evidence now suggests that product-oriented operating models outperform traditional structures, compelling organizations to reassess their approaches. This shift is seen as crucial in breaking through the barriers that have historically limited Agile methodologies within organizations.
The Role of Business Engagement
A significant barrier to adopting the product operating model lies in engaging the broader business community, not just technology teams. For transformation to be successful, executive sponsorship and involvement from finance and operations are essential in defining and measuring outcomes. The podcast highlighted that without the support of senior leadership, efforts to implement these changes may falter and not be sustainable. The need for the business to actively participate in these discussions and initiatives is vital for fostering a collaborative environment that facilitates the shift from projects to products.
Navigating Technical Debt and Change Management
Technical debt remains a critical challenge in the transition from a project-driven mindset to a product-focused approach. The accumulation of technical debt often hampers the organization’s ability to deliver value effectively, creating invisible barriers to progress. Addressing this debt requires a change management strategy that encourages transparency and prioritization of reducing technical debt alongside delivering new features. Successful organizations are those that not only implement product operating models but also understand the economic implications of technical decisions and engage teams in elevating these discussions to leadership.
In this episode of the Scrum.org Community Podcast, Mik Kersten, CTO at Planview, returns to chat with Dave about the movement from project-centric to product-driven models, reflecting on the recent Project to Product event where they both spoke.
Together, they explore how pragmatic organizations are embracing product operating models, underscoring the need for executive sponsorship, business alignment, and visibility into flow metrics. Kersten shares valuable lessons from Vanguard’s success, the challenges of technical debt, and the importance of infrastructure for sustained transformation.
Tune in to learn why Mik and Dave are optimistic about the future of product-based models, especially with agile and DevOps practices setting the foundation for success.
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