“The typical organization today has undertaken five major firmwide changes in the past three years — and nearly 75% expect to multiply the types of major change initiatives they will undertake in the next three years. Yet half of change initiatives fail, and only 34% are a clear success.” Gartner.com
Key Differences

Benefits of Product-Focused Organisations
Product-focused organisations offer several advantages over traditional agile structures, including customer-centricity, cross-functional teams, prioritisation and focus, reduced handoffs, and empowered product ownership. These benefits significantly improve efficiency, product quality, and market responsiveness.
For instance, Schneider Electric successfully transitioned to a product-driven operating model at scale. This shift enabled them to increase the speed of their product delivery from five years to just 18 months and boosted employee engagement by eight percentage points. This example illustrates how adopting a product-focused approach can lead to faster development cycles, improved employee satisfaction, and better alignment with customer needs. Lessons from Schneider Electric’s Agile-at-Scale Transformation | BCG
Increased Customer-Centricity
Product development revolves around thoroughly understanding customer needs and desires. This ensures that the final product truly resonates with the target audience and effectively addresses their pain points.
Enhanced Cross-Functional Collaboration
Teams are composed of individuals with diverse skill sets, including design, engineering, marketing, and product management. This collaborative environment fosters a holistic understanding of the product and its lifecycle.
Improved Prioritisation and Focus
Clear product roadmaps are established, enabling teams to prioritise tasks effectively and maintain alignment with the overall product vision. This reduces wasted effort and ensures everyone is working towards a common goal.
Reduced Handoffs
Streamlined workflows minimise dependencies between different teams, leading to faster development cycles and reduced communication overhead. This efficiency gain contributes to quicker time-to-market and improved product quality.
Empowered Product Ownership
Dedicated product owners have greater autonomy and decision-making power. This allows them to be more responsive to customer feedback and market changes, leading to more successful products.
Enterprise Benefits
- Reduced Costs: Streamlined workflows, reduced handoffs, and clear prioritisation minimise wasted effort and resources, leading to significant long-term cost savings.
- Increased Revenue: Customer-centric products are more likely to succeed in the market, attracting and retaining customers and ultimately driving revenue growth.
- Reduced Risk: A deep understanding of customer needs and market trends reduces the likelihood of developing products that fail to resonate with target audiences, minimising financial losses and reputational damage.
Employee Empowerment and Growth
- Increased Employee Satisfaction: Employees feel a stronger sense of ownership and purpose when working within a product-focused organisation. They are more engaged in their work and feel their contributions directly impact the product’s success.
- Improved Retention: A fulfilling work environment that provides opportunities for growth and development fosters employee loyalty and reduces turnover. This saves the company time and resources for recruiting and training new employees.
- Clearer Career Paths: A product-focused structure provides employees with clear career trajectories and development opportunities, motivating them to contribute their best work and grow within the organisation.
Organisational Alignment: Defining Your Identity, Offerings, and Structure
In the journey towards adopting a product-focused approach, organisations must achieve clarity on three fundamental aspects: who they are, what they offer, and how they want to be organised. This alignment ensures that every team member works towards a common goal and that the organisation’s structure supports its strategic objectives.
Defining Your Identity
Understanding and articulating your organisation’s identity is the first step. This involves recognising your core values, mission, and vision. These elements serve as the foundation for all decisions and help create a cohesive culture. When everyone in the organisation understands and embraces these core principles, it fosters a sense of unity and purpose.
Clarifying Your Offerings
Next, it’s essential to understand what your organisation offers clearly. This means identifying your essential products or services and understanding how they meet your customers’ needs. By having a well-defined product vision, teams can align their efforts towards creating value for the customer. This clarity helps prioritise tasks and make informed decisions that drive the organisation forward.
Structuring for Success
Finally, determining how you want to be organised is critical for operational efficiency. A product-focused structure often involves cross-functional teams aligned with specific products or services. This setup encourages collaboration and reduces silos, enabling teams to work more effectively towards common goals. Empowering product owners with decision-making authority ensures that the organisation can respond swiftly to market changes and customer feedback.
The Benefits of Alignment
When an organisation is aligned on its identity, offerings, and structure, it reaps several benefits:
- Enhanced Collaboration: Teams work together more effectively, breaking down silos and fostering a culture of cooperation.
- Improved Focus: Clear priorities and a shared vision ensure everyone works towards the same objectives, reducing wasted effort.
- Greater Agility: An aligned organisation can respond more quickly to market or customer needs changes, maintaining a competitive edge.
- Increased Employee Engagement: Employees who understand the organisation’s mission and see how their work contributes to its success are more motivated and engaged.
Conclusion
Product-focused organisations offer a compelling alternative to traditional agile structures. They promote customer-centricity, streamlined workflows, and empowered product ownership. While agile methodologies remain valuable, adopting a product focus can further enhance organisational effectiveness, product success, and employee satisfaction.
If your organisation wants to improve its alignment with customer needs, increase efficiency, and empower your teams, consider transitioning to a product-focused approach. Start by defining your identity, clarifying your offerings, and structuring your teams for success. Doing so can create a strong foundation for sustainable growth and innovation.







