Saturday, 17 October 2026

From Projects to Products: Why the Shift Must Involve the Entire Organisation

Over the past decade, many organisations have embarked on what they describe as a "move to product". New job titles appear, product managers are hired, agile practices are adopted, and technology teams are reorganised into product teams.

Yet despite significant investment, many organisations discover that very little has actually changed.

Projects are still approved annually. Success is still measured by delivery against scope. Leaders still specify solutions. Teams are still rewarded for output rather than outcomes.

The result is an organisation that looks like a product organisation on paper but continues to operate using a project mindset.

This is one of the key messages within Marty Cagan's Product Model: moving to product is not a technology transformation. It is an organisational transformation.


The Common Misunderstanding

Many organisations approach product transformation as a technology initiative.

The thinking often looks like this:

  • Create Product Manager roles
  • Rename delivery teams as product teams
  • Adopt Scrum or Kanban
  • Change roadmaps
  • Introduce product ownership

These changes can be helpful, but they do not, by themselves, create a product organisation.

A genuine move to product requires changes across:

  • Leadership
  • Governance
  • Funding
  • Finance
  • Risk and compliance
  • Performance management
  • Planning and prioritisation
  • Technology
  • Product management
  • Design

In other words, the entire organisation.

If only the technology department changes, the organisation remains constrained by project-based thinking.


Project Model versus Product Model

At its core, the difference comes down to accountability.

Project Model

Teams are accountable for:

  • Delivering agreed scope
  • Meeting deadlines
  • Staying within budget

Success is measured by delivery.

The key question becomes:

Did we build what we said we would build?

Product Model

Teams are accountable for:

  • Customer outcomes
  • Business outcomes
  • Measurable impact

Success is measured by value creation.

The key question becomes:

Did we solve the problem?

This sounds simple, but it fundamentally changes how decisions are made throughout the organisation.


Why Technology Teams Alone Cannot Make the Change

Consider a technology team that has been restructured into a product team.

They are encouraged to run experiments, conduct discovery, and focus on customer outcomes.

However:

  • Finance still allocates annual project budgets.
  • Governance boards still approve detailed solution designs.
  • Senior leaders still demand feature commitments twelve months in advance.
  • Performance measures still focus on delivery dates.

In this scenario, the team is expected to behave like a product team while being managed like a project team.

The inevitable result is frustration.

The team may possess product titles and product ceremonies, but it lacks product autonomy.

True product organisations align the entire operating model around outcomes.


An Example: Moving from Project to Product

Imagine a large insurance company that wants to improve its digital claims experience.

Phase 1: Project Thinking

A senior steering committee reviews customer feedback and decides:

We need a mobile claims app.

A project is approved.

Project Objective

Build a mobile claims application by September.

Measures of Success

  • Delivered on time
  • Delivered within budget
  • All requirements completed

A project manager is assigned.

Requirements are gathered.

Designs are produced.

Developers build the application.

The application is launched successfully.

The project closes.

Six months later:

  • Adoption is low
  • Customer satisfaction has barely improved
  • Call centre volumes remain unchanged

The project was successful.

The customer problem was not solved.


Phase 2: Product Thinking

The organisation restructures around customer outcomes rather than projects.

Instead of approving a solution, leadership defines a problem.

Product Outcome

Reduce friction in the claims journey and increase customer satisfaction.

A permanent cross-functional team is formed.

The team includes:

  • Product Manager
  • Product Designer
  • Engineers
  • Data specialists
  • Customer service representatives

Notice that the team is not purely technical.

The customer service team becomes a critical source of insight because they hear customer frustrations every day.

The team begins discovery.


What They Learn

Customer interviews reveal several unexpected findings.

Customers are generally happy using the website.

Most customers submit claims infrequently and have little interest in downloading a dedicated app.

The biggest frustration is uncertainty.

Customers repeatedly ask:

  • Has my claim been received?
  • Who is handling it?
  • What happens next?
  • How long will it take?

The problem turns out not to be claim submission.

The problem is claim visibility.


Experiments

The team runs several experiments.

Experiment 1

Real-time claim status updates.

Result:

  • Significant reduction in customer enquiries.

Experiment 2

Automated SMS and email updates.

Result:

  • Improved customer confidence.

Experiment 3

Mobile app prototype.

Result:

  • Very low customer interest.

The team decides not to build the mobile app.

Instead, they improve claim tracking and customer communication.


Outcomes

After six months:

  • Customer satisfaction increases
  • Call centre demand falls
  • Processing transparency improves
  • Development effort is significantly lower than originally estimated

Most importantly:

The original solution was rejected because the evidence showed it would not solve the problem.

This is a hallmark of an empowered product team.

Success came not from building the planned solution but from discovering a better one.


What Changes Across the Organisation?

The transition to product requires more than changing team structures.

AreaProject OrganisationProduct Organisation
StrategyAnnual initiativesContinuous outcomes
FundingFund projectsFund long-lived teams
LeadershipDirect solutionsProvide context and goals
GovernanceApprove plansReview outcomes
FinanceCapital tied to projectsInvestment tied to value
HRReward deliveryReward impact
TechnologyBuild requirementsDiscover solutions
Success MeasuresTime, scope, budgetCustomer and business outcomes

Notice that technology is only one row in the table.

The Product Model requires every function to evolve.


The Hardest Change Is Not Process

Many organisations invest heavily in agile frameworks, tooling, and delivery practices.

These changes are relatively easy.

The difficult part is changing how leaders think.

Leaders must move from:

"I know the solution. Build it."

to:

"I know the outcome we need. Discover the best solution."

That requires trust.

It also requires accepting that teams may discover that a stakeholder's proposed solution is not the right one.

For organisations with strong project traditions, this can feel uncomfortable.

However, it is where the greatest value is found.


Final Thought

The move from project to product is often described as a transformation of technology teams.

In reality, it is a transformation of the entire organisation.

A business does not become product-led because it hires Product Managers or adopts agile methods.

It becomes product-led when strategy, funding, governance, leadership, and delivery are all aligned around a single principle:

The purpose of the organisation is not to deliver features. The purpose of the organisation is to create outcomes for customers and value for the business.

When that shift happens, teams stop asking, "What should we build?"

and start asking,

"What problem are we trying to solve?"

That is the real journey from projects to products.

No comments:

Post a Comment