Last year, someone introduced me to the Product Operating Model. After listening, I smiled and said, “Where I come from, we just call that Business.”
If you haven’t heard of the Product Operating Model (POM), I’ll explain. It claims to be the ultimate framework for aligning your entire organization around delivering unparalleled customer value through empowered, cross-functional teams that own every stage of the product lifecycle. In general, I agree with its tenets, though I’m averse to anything with the word framework, that claims to be a new creation, or that promises be a panacea. I’ve seen many fads over my career. Do you remember these?
- TQM
- MBWA
- Lean
- BPR
- Six Sigma
- Agile
- Core Competencies
- Design Thinking
- Lean Startup
- Digital Transformation
- OKRs
- ESG
- SAFe
These trends were (and still may be) overhyped, even those that contained amazingly valuable concepts and practices. And that’s the crux of the point I’m trying to make with you. Avoid the puffery and costly consultants promoting the latest trends. Focus on the proven fundamentals.
I can explain product theory in less than one paragraph, saving you tens of thousands in on-site training. First, understand your target customers and what they need. I like to use the jobs-to-be-done approach, but you can think of it as requirements, pain points, or wants. Next, design products for those customers that will do those jobs, fulfill those requirements, remove those pain points, or otherwise make them happy enough to select yours over other options. Lastly, structure your company and its culture around the products to produce them efficiently, ensure proper quality, and address all remaining customer needs.
That’s it—customer, product, then organization.
Never allow yourself or your company to do otherwise. If you don’t prioritize your customers and products, you’ll eventually reap the reward for focusing elsewhere. It’s not good. Here’s a horrible approach: organize a project management office (PMO), evaluate projects by their adherence to plans, then hope everything works out.
Once you’ve structured your company to build the products for your external and internal customers, how do you ensure sustainable success? The answer lies in infusing your organization with time-tested principles. I call my list of essentials the Agile Principles for Business. Here it is:
- Defined Mission and Objectives
- Outcome Over Output
- Accountability
- Leadership
- Planning and Prioritization
- Validated Learning
- Focus
- Flexibility
- Collaboration
- Transparency and Communications
- Innovation
- Make a Big Difference
There, I just gave away all my secrets. But you’ll see they aren’t secrets or anything that could be termed trendy. They are fundamental principles that no one could invent or for which anyone could take credit. That’s your best clue that you should pay attention to them. If you adopt these principles, you won’t need or want anyone else’s frameworks.
So, instead of chasing after the latest trend with its fancy slides, expensive consultants, and pretentious certifications, think about organizing around your customers and products and embracing those principles above. If you need help internalizing these principles and building a culture based on them, there are people out there willing to assist. Maybe a POM consultant will be right for you. Regardless, emphasize principles over frameworks. Basics over buzzwords.
Trends will come and go, but the fundamentals of business—understanding your customers, delivering exceptional products, and fostering accountability and collaboration—will always endure. Don’t let the hype distract you. Instead, organize around what matters and embrace principles that deliver results and sustainably transform your company and the people in it.
Reach out or explore my book, Agile Principles for Business: The 10X Effect, to take the next step in embracing these fundamentals.
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