Last week I mentioned that we are seeing a subtle shift from project mode to product mode. It’s been driven by a combination of market dynamics, customer expectations, and organizational imperatives that demand greater adaptability, value orientation, and a user-centric focus. It stimulated some fairly intense debate on one of my Twitter accounts.

So, I thought it might be prudent to differentiate. Firstly, project mode and product mode are two distinct ways organizations can structure work, prioritize efforts, and think about delivery and outcomes.

Here’s a comparison to highlight the differences:

Project Mode

Projects are a temporary endeavor aimed at delivering a specific outcome within defined constraints (scope, time, budget).

Key Characteristics:

1. Time-bound:
   • Projects have a clear start and end date.
   • Success is measured by completing the work within scope, on time, and within budget.
2. Focus on Outputs:
   • The emphasis is on delivering predefined deliverables (e.g., features, services, or systems).
   • Little consideration is often given to long-term sustainability or value realization.
3. Team Structure:
   • Teams are often assembled temporarily and disbanded after the project ends.
   • There may be a lack of continuity and learning between projects.
4. Fixed Scope:
   • Deliverables are usually defined upfront and frozen early, limiting flexibility.
   • Change is often seen as a risk rather than an opportunity.
5. Governance:
   • Heavy reliance on traditional project management frameworks (e.g., Waterfall, PRINCE2).
   • Focus on reporting, stage gates, and managing risks.
6. Ownership:
   • The project owner or manager ensures delivery, but ownership of outcomes may be unclear after delivery.
   • Long-term ownership (e.g., maintenance) may fall to another team.

Drawbacks:

• Limits adaptability to change (unless truly Agile).
• Focuses on short-term wins over sustained, long-term value.
• Can lead to a “throw it over the wall” mentality between teams.

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Product Mode

Product mode is a continuous, iterative approach focused on maximizing value by evolving a product or service to meet user needs over time.

Key Characteristics:

1. Outcome-oriented:
   • Success is measured by value delivered to users or the business (e.g., increased customer satisfaction, revenue growth).
   • Focus on solving user problems and achieving strategic goals.
2. Continuous Lifecycle:
   • No predefined end date; the team is responsible for the product’s lifecycle.
   • Ongoing iterations based on feedback, learning, and changing market conditions.
3. Team Structure:
   • Cross-functional, stable teams dedicated to the product.
   • Promotes continuity, collective ownership, and deep domain expertise.
4. Flexibility in Scope:
   • Agile practices allow for evolving requirements and adapting to user feedback.
   • Priorities are frequently revisited to maximize impact.
5. Governance:
   • Lean and agile methods (e.g., Scrum, Kanban) focus on value delivery and quick feedback loops.
   • Decision-making is decentralized, empowering teams.
6. Ownership:
   • Teams own the product’s strategy, development, maintenance, and outcomes.
   • Encourages accountability for long-term success.

Benefits:

• Improves time to market and customer satisfaction.
• Encourages innovation and adaptability.
• Focuses on continuous improvement and long-term impact.

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Key Differences Between Project Mode and Product Mode

Aspect	Project Mode	Product Mode
Focus	Outputs	Outcomes
Timeframe	Fixed (temporary)	Continuous (ongoing)
Scope	Predetermined	Evolving based on user/business needs
Teams	Temporary, disbanded post-project	Stable, cross-functional
Success Criteria	Delivery on time, scope, budget	Value delivered, user/business impact
Governance	(could be) Heavy, stage-gate driven	Lean, iterative, empowered
Ownership	Fragmented, transitions post-delivery	End-to-end responsibility

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Why Shift from Project Mode to Product Mode?

Organizations increasingly favor product mode because it aligns with modern challenges, such as rapid market changes, customer expectations, and the need for continuous innovation.

By shifting to product mode, companies can:

• Deliver value faster and with greater adaptability.
• Foster a customer-centric mindset.
• Promote team stability and ownership.
• Achieve long-term sustainability for their products and services.
• Enable Agility.

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Summary

The shift to product mode is fueled by a need for speed, adaptability, and sustained value creation. Organizations increasingly recognize that traditional project approaches cannot meet the demands of modern customers, markets, and technologies, making the continuous, outcome-oriented nature of product mode a competitive necessity.

But the transition from project mode to product mode reflects a cultural and operational shift towards agility, customer focus, and sustainable value delivery. While projects are often necessary for specific initiatives, product mode ensures continuous alignment with user needs and organizational goals.

Product mode enables Agility. Just in case you missed it.