If you’re leading a team or organisation, you’ve probably worked on projects. But have you thought about the bigger picture of creating lasting value? That’s where the idea of a product mindset comes in.
Decoded’s Jahanger Hussain, Agility Portfolio Director, explains how understanding the difference between a product mindset and a project mindset can transform how you deliver results and impact your customers and business.
To explore this concept, let’s define these mindsets, understand why the shift matters, and examine how real-world companies use them to achieve success.
A mindset refers to the underlying attitudes, beliefs, and perspectives that guide how we think, make decisions, and approach challenges. It’s the mental framework that shapes our behaviour and determines how we interpret the world around us.
In a professional context, a mindset influences not only individual actions but also team dynamics and organisational strategies. For example, a project mindset focuses on completing tasks and hitting deadlines, while a product mindset prioritises solving customer problems and delivering long-term value.
Shifting a mindset isn’t just about changing processes – it’s about rethinking priorities and embracing a new way of defining success.
The project mindset is a familiar concept for most. This approach is task-oriented, focused on completing specific pieces of work within a set timeframe. Once the task is finished, the effort typically ends.
Examples include:
– Launching a new company website.
– Developing a new app feature.
– Organising a product launch event.
The emphasis is on delivery – on-time, within budget, and aligned with pre-set goals. However, this mindset often neglects what happens post-delivery or how the outcomes impact end-users.
For instance, an article in the International Journal of Strategic Engineering titled ‘Avoiding Project Failure and Achieving Project Success in NHS IT System Projects in the UK’ revealed a critical issue: many IT projects delivered on time and within budget became obsolete due to a lack of updates and user feedback.
As Marty Cagan aptly puts it:
“Projects end, but customer needs don’t. If we’re not continuously solving their problems, someone else will.”
Now, imagine viewing your work as an ongoing effort to improve and adapt to serve your customers better. That’s the product mindset.
A product isn’t a single deliverable – it’s something you continuously refine and evolve to meet customer needs. This mindset focuses on creating long-term value and solving real problems.
Key elements of a product mindset include:
– Customer-focused: Decisions revolve around user needs.
– Always improving: Regular updates and refinements based on feedback.
– Collaboration-driven: Cross-functional teams working together for success.
– Success through outcomes: Measured by the value delivered to users, not just task completion.
As Daniel Ek, CEO of Spotify, puts it:
“Great products are never done. They’re a reflection of the teams who care enough to keep improving them.”
| Aspect | Project Mindset | Product Mindset |
| Goal | Complete tasks | Solve problems and deliver value |
| Focus | Time, budget, scope | Customer needs and outcomes |
| Lifecycle | Fixed start and end | Continuous improvement |
| Ownership | Temporary team | Long-term, dedicated team |
For leaders, this shift moves from “Let’s finish this task” to “Let’s create something that truly makes a difference.”
Adopting a product mindset offers significant advantages:
1. Better for Customers: Products designed with this mindset solve real problems and adapt to changing needs. For example, Apple’s iPhone evolves continuously, incorporating user feedback to introduce new features that improve usability and maintain customer loyalty.
2. Better for Your Business: Continuous improvement ensures your product stays relevant, creating lasting value. Amazon Prime, for instance, started as a shipping subscription but evolved into a comprehensive membership program driving immense customer loyalty.
3. Stronger Teams: A product mindset fosters collaboration across departments, uniting teams to achieve shared goals.
4. Flexibility: Products evolve. With this mindset, teams adapt quickly to new challenges, feedback, or trends.
As Melissa Perri, author of Escaping the Build Trap, explains:
“When teams own a product, they own the results. It’s not just about delivery – it’s about making an impact.”
Transitioning to a product mindset takes time, but you can take actionable steps to begin:
1. Start with the Customer: Always ask, “What problem are we solving for our customers?”
2. Focus on Outcomes, Not Outputs: Measure success by the difference made for users, not just task completion.
3. Encourage Iteration: Build systems for gathering feedback and making updates. For example, Netflix uses A/B testing to refine its recommendations and user interface.
4. Empower Teams: Create long-term teams responsible for the product’s success.
5. Adopt Agile Practices: Use agile frameworks to break work into manageable pieces and adapt as needed.
Consider a leader overseeing the launch of a new mobile app. With a project mindset, success is defined by meeting the launch deadline and budget. Once launched, the team disbands, and focus shifts elsewhere.
With a product mindset, the launch is the starting point. The team continues to refine the app based on user feedback, focusing on making it increasingly useful and engaging. Success isn’t just about delivery – it’s about building a product customers love and rely on.
As a leader, embracing a product mindset shifts your focus from delivering tasks to creating lasting value. It recognises that what you build today requires care tomorrow to remain impactful.
This approach benefits your customers, strengthens your teams, and keeps your organisation ahead in a constantly changing landscape.
Ready to make the transition? Start small: focus on customers, empower teams, and prioritise long-term outcomes. Let us help guide you through this transformative mindset shift from project to product.
To find out more, click here to send us a message.
Image accreditation: Annie Spratt from Unsplash.com. Last accessed on 22nd November 2024. Available at: https://unsplash.com/photos/group-of-people-using-laptop-computer-QckxruozjRg
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