Truth is the 7th T of the 7Ts of Product-Led Transformation. As a Product Person, I can see no alternative but work for a Product-Led organisation.
The cost of not being one is too great as markets are hyper-competitive and aggressive.
The “truth” is that Transformation Programs that do not broaden their reach to include and embed Product Management will fail. The evidence clearly shows that 70% of the global Transformation spend is squandered, leaving organisations with the same core problems; its inability to enable its people to decide what work needs to be undertaken. When this occurs, organisations will not attract the right type of Product People and will therefore have greater difficulties realising their Product ambitions.
The discouraging aspect of NOT being Product-Led is the enormous waste that it generates when Product hires leave the organisation for greener pastures. It not only has a negative financial impact on the organisation but it also creates a significant amount of emotional waste for the Product person; who spends time and effort deciding to remain or leave their place of employment. There’s also always an emotional toll on the individual as well as the Product team that remains. Organisations have to invest time and money recruiting and onboarding the new Product people while Product people spend time searching for a new work home. According to the Australian Financial Review, “the cost in lost productivity when an employee leaves is $200,000 AUD. New hires simply aren’t as productive as the person they’re replacing and may take a year or two to get to that level.”
The opportunity cost of losing good Product people is also a factor that must be exposed and calculated. As Product people leave, their intellectual property, new ideas and know-how also leave the organisation, making it all the more difficult to continue effective Product Discovery and Delivery.
This situation can be circumvented by ensuring that Transformation Programs expand to include Product Practices to create a conducive work environment for Product people. Companies who fail to become Product-Led face a very real chance of being irrelevant because they will not have the right skills to shift their products as the market evolves.
Want to improve your company’s chances of Transformation success by learning how others transformed their companies and teams using Product-Led techniques? The evidence shows that Product-Led organisations yield better financial results.