The Product Operating Model

Marty Cagan explains that his upcoming book TRANSFORMED needs a name for the way the best tech companies work, and he tentatively settles on the 'product operating model' or 'product model.' He notes that the industry lacks standard terminology and that top companies each brand their own way of working, so he is distilling the shared principles, practices, and competencies. He also needs a name for the model companies are leaving, which he calls the 'prior model,' with examples like the IT model, project model, feature-team model, and sales- or marketing-driven product. Cagan admits he is testing whether this nomenclature is sound before committing to it in the book.

01Key takeaways

• Agree on shared vocabulary before a transformation so teams discuss the same concept.
• Describe the target way of working by its principles and practices, not a single company's branded name.
• Be cautious with 'product-led' labels, since people may read them as meaning product management leads the company.
• Recognize the current model by who drives the roadmap, such as IT, projects, features, sales, or marketing.

02Key sections

Why a new term is needed

Writing the book forces Cagan to name the destination of transformation, since the industry often uses inconsistent terms for the same concept. He wants clear definitions for the book's key concepts.

Naming the destination

The best companies describe their own way of working with brand names, but Cagan seeks common principles behind them. He prefers 'product operating model' over 'product-led,' which many people misread as product-management-led.

Naming the prior model

Companies coming from other models are often described by who drives their roadmap, such as IT, projects, features, sales, or marketing. Cagan proposes calling this the 'prior model' for simplicity.

Terminology going forward

Other key terms will be defined within the chapters where they are discussed. The naming choices are tentative and open to reader feedback.

03From the post

“A partnership dedicated to teaching best practices to product teams and product leaders”

04Frameworks mentioned

Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.