By Andrew Park | 2024-10-01
During a recent discussion with Anna-Katharina Reykowski, we shared our perspectives on how the software delivery process can be better aligned with a Product Operating Model. Agile and Scrum, which were initially developed to address the inefficiencies of the traditional waterfall approach, have often become overly focused on short-term thinking and ritualistic ceremonies. We agreed that to meet the evolving needs of businesses, Agile must shift toward a more product-oriented approach.
Anna observed, and I agreed, that many organizations bring in Agile coaches when their software delivery isn’t performing as expected, hoping these frameworks will magically produce faster and cheaper results. However, as we both emphasized, relying too heavily on these ceremonies can actually be counterproductive. While they were designed to support the process, they can sometimes become a distraction, causing teams to focus on rituals rather than the real goals of delivering value and meeting customer needs. This focus on product outcomes is at the heart of the Product Operating Model.
We also discussed how today’s Agile practices often neglect the critical aspect of risk reduction in the product development process. Anna and I both highlighted that product managers typically bear significant responsibility in this area, yet Agile processes sometimes reduce them to the narrow role of writing tickets—typically User Stories. These stories, while important for managing work, can distract product managers from their larger role in steering the product’s strategic direction. In focusing on velocity and developer workload, critical conversations about long-term product value and risk mitigation often fall by the wayside.
Together, we recognized that the real challenge is rebalancing Agile to prioritize business outcomes over short-term outputs. To address these challenges, Anna and I aligned on several key areas for reimagining Agile within the Product Operating Model:
1. Strategic Alignment Across Teams
We agreed that for true strategic alignment, it’s crucial for all teams to work toward a unified product vision with clearly defined outcomes that are aligned with the overall product strategy. This alignment requires delivery team members to grow beyond being just technologists and evolve into Product Engineers. They must actively pursue and acquire deep domain knowledge related to the products they work on. By understanding not just the technical aspects, but the business and user context as well, team members can make better decisions and foster stronger collaboration across functions. This shift empowers them to contribute more meaningfully to both the product’s success and the business’s long-term goals.
2. Business Predictability
Both Anna and I emphasized the need for predictable delivery timelines, costs, and resource allocation to support informed business decisions and manage stakeholder expectations. Larger organizations, in particular, have a greater appetite for predictability, as it enables them to manage complex projects and resources more effectively. We discussed the importance of refining estimates based on real-time data, and I shared how I’ve implemented systems and tools on my teams to ensure accountability to broader objectives. I also explained that 20 years ago, I put mechanisms in place to develop my teams’ estimation skills, which have been critical in supporting product managers and sales staff during product discovery and strategy stages.
3. Outcome-Driven Metrics
Anna and I agreed that it’s time to debunk the notion of story points and “velocity” as meaningful measures of success. These are outdated engineering vanity metrics that focus on task completion rather than delivering real value. Instead, teams should be measured by outcome-driven metrics such as customer satisfaction, usability, and business impact. These metrics provide a much clearer view of how well a team’s work aligns with broader business goals. By shifting the focus from task completion to the actual impact of the work, teams are encouraged to think beyond just getting things done. This approach drives them to deliver value in a sustainable, meaningful way that contributes to long-term business success and customer satisfaction.
By focusing on these areas, Anna and I believe that Agile and Scrum can be reimagined in a way that optimizes for great product outcomes and efficiency, rather than simply prioritizing the speed and volume of delivered backlog items. This approach ensures that software delivery is not only aligned with long-term business goals but also strategically sound and focused on creating sustainable value for both the business and its customers.
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