“Products” and “projects” may look alike—only two letters differ—and sound alike, but they’re quite different. Yet the same mental conflagration that necessitates a clarification between product managers and project managers also plagues products and projects.
This dilemma extends far beyond misused terminology. It also impacts our mindsets as well. Two parties thinking about the same thing may have wildly different assumptions and expectations.
To begin exploring this disconnect, let’s first establish a common understanding of what projects and products are at a basic, fundamental level.
When undertaking a software development project, companies have two main philosophies to choose from: a product focused approach or a project focused approach. Both have their merits depending on the situation. In this comprehensive guide, we’ll compare product focused vs project focused methodologies to help you determine which is better for your next software initiative.
What is Product Focused Development?
A product focused approach means the team building the software takes long-term ownership over the product Their goal is to continually iterate and improve it based on changing user needs and market conditions
With this model, the success metric is the value the product delivers to users and the business over time, not just hitting initial scope, budget and timeline targets.
Key traits of product focused development:
- Team owns improving product experience and business outcomes long-term
- Requirements flexible based on learnings and market changes
- Success measured by product’s value and impact over time
- Continual iterations to evolve product
Product focused teams are empowered to make adjustments to best meet customer needs. The priority is delivering maximum value, not strict adherence to initial plans.
What is Project Focused Development?
In contrast, project focused development sets clear goals upfront for budget timeline and project scope. The success metric is completing the predefined set of specifications within those constraints.
Once the specifications are met, the project is considered complete, regardless of the product’s market viability. The development team disbands and moves onto the next project.
Typical characteristics of project focused development:
- Clear scoping with fixed budget, timeline and requirements
- Success judged on meeting predefined goals
- Team expectation is to complete project specifications only
- Team disbands once project complete
With the project approach, the priority is predictable delivery and completion of an agreed upon scope. Value is secondary.
When is a Project Focused Approach Best?
The project focused methodology has its place in certain situations. Here are examples of when it may be the best fit:
Internal Software Projects
For internal tools and systems where the requirements are well-defined upfront, a project model makes sense. The users are known entities, so the value is fulfilling those predetermined needs.
Fixed-Bid Projects
Some clients require fixed pricing where the entire project scope and costs are defined upfront. This requires a project focused approach.
Short Timeframes
For small initiatives with a duration of just a few weeks, a project model provides focus on driving to completion.
Startup Validation
When initially testing a new product concept before making a bigger investment, locking downscope can make sense to validate the market need before evolving the product.
The project approach brings discipline where requirements are clear and the timeline is short. But it can fall short for ongoing product development.
When Does a Product Focused Approach Excel?
Here are situations where a product focused model works best:
Ongoing Product Development
For long-term product evolution, the product focused model allows adjusting based on user feedback and market changes. This leads to higher customer satisfaction and product-market fit over time.
Consumer Products
For products aimed at external consumer users in a dynamic market, the flexibility to pivot based on data is crucial. The product team model is oriented to rapid learning and iteration.
Complex Initiatives
For large initiatives with lots of unknowns, the ability to adapt to learnings and evolving needs outweighs big upfront scoping efforts.
Outsourced Work
Outsourced teams inherently have less visibility into the client’s needs and market context. Giving them ownership to deliver optimal value versus just executing a predefined spec yields better results.
For any project where the end goals are fluid or the market conditions are likely to change, a product focused approach enables adapting to drive better outcomes.
Comparing Product vs Project Focused: Key Differences
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What makes a project a project?
Projects are, by definition, temporary endeavors. A set of individuals and organizations take on the required tasks to reach a specific goal. There is a schedule, a budget, a kickoff, and an endpoint. The project’s progress gets measured, and it ends after achieving predetermined objectives and milestones.
In short, a project begins with a clearly defined, well-understood conclusion. From there, the team strives to avoid deviating from the plan or schedule. Stakeholders know what to expect, when, and how much it will cost.
Don’t tie down teams to timelines
Even the most open-minded, customer-centric organizations require some sense of when products will ship, but announcing a target date for a release puts a lot of pressure on teams to deliver at all costs. A product mindset demands flexibility to adapt, even if it delays things from time to time.
Team leaders and individual contributors must know the business supports deviating from plans and schedules when it’s the best outcome for the product. This means leaders and executives must not get punitive or overly negative when product timelines change, be it a delay or a change in scope.
This uncertainty may feel uncomfortable, but transparency and trust can mitigate that unpleasantness. When leadership knows the reason for an alteration is due to a strategic shift rather than sloppy planning or poor execution, it’s easier to build a supportive base in the upper tiers of the organization.
Of course, some milestones may be non-negotiable, such as a customer-driven deadline or industry event showcase. But an overall openness to schedule flexibility creates a workplace that fully embraces the product mindset.
Episode 5: Project vs. Product Focus in SAFe
What are the roles on a product-focused team?
The roles on a product-focused team might include positions, such as product strategist, marketing coordinator, product manager, product engineer and a product growth manager. Teams might have fewer or additional roles, too, depending on their responsibilities and company, but most often, the positions focus on different product aspects.
What is the difference between a process and a product-focused organization?
Product-focused organizations tend to have small staffs, while process-focused organizations employ a large number of people. Key themes with both process and product-focused organizations are consistent, quality results – yet it’s how that result is achieved that is the big difference.
What is project-focused management?
In project-focused management, rather than analyzing the offerings an organization sells, teams and management teams evaluate specific business activities. By improving performance and processes, many project managers aim to optimize operations and support the long-term goals of their businesses.
What is the difference between a project and a product?
Another big difference between projects and products in software development is the orientation of the teams. In the project lifecycle, the team’s commitment only lasts for the duration of the project, or until the end of the service contract. Project teams are typically short-lived, and the enterprise reassigns team members to different projects.
