Product Teams vs. Project Teams: Their Role in Agile Environments

Many headlines and opinions reflect concerns about the effectiveness of agile methodologies in workspaces. People these days want something, and they want it immediately. We’ve learned to live with instant gratification, and the same thing is required from software development teams. They must produce results, and they must do it quickly.

If someone is skeptical about agile methodologies, they should do more profound research and try to understand this concept’s core values and principles. Agile practices have demonstrated success across various domains, including software development. Transitioning from traditional project teams to product teams is a good idea. This approach may improve the effectiveness and success of agile implementations.

Project & Product Teams: Which Is Better?

In most cases, senior managers describe the project and set a deadline and a budget, and that’s it. This follows the assembly of a team that pulls employees from various fields and forces them to work together for a specific amount of time. The team, potentially familiar with one another from previous projects but working together for the first time, must create a backlog and commence work.

The team must go through several stages from the start to the completion of the project. Each stage might take weeks to reach, but most of the time, all stages have been reached by the end of the project. The problem is that with the completion of the project, the team will be disbanded, and the cycle of stages will be reset.

Sometimes, teams may struggle to progress past phases, leading to individual needs taking precedence over team objectives. This can result in many different unwanted scenarios. Consequently, the project may experience poor customer feedback and financial losses. Typically, project teams fall somewhere between these extremes, but they remain inherently temporary.

Product teams offer several other benefits that enhance organizational effectiveness. First and foremost, product teams are stable and enduring for many projects. But the benefits of such formation of the team do not stop there:

• Deep Product Knowledge

  • Product teams are assigned to and stick to a specific product for a long time. Thus, they have a thorough understanding of both the product and its trajectory. This can only mean positive results for the team and the problem-solving.

• Enhanced Commitment

  • Product teams exhibit a strong sense of ownership and accountability for the product’s success. This commitment drives higher quality and increased customer satisfaction.

• Increased Initiative

  • With a deep understanding of the product and control over the backlog, product teams are empowered to take initiative and exceed expectations, enhancing customer satisfaction.

• Agile Response

  • Because product teams are focused on a single product and its development is closely monitored, they are better positioned to adapt quickly to market changes or face new problems. Project teams would find it hard to adjust to continuous changes because they would be assembled and disbanded all the time while they might be simultaneously assigned to other projects.

• Strengthened Team Dynamics
  • Extended collaboration within product teams fosters strong communication and teamwork. Team members become familiar with each other’s skills, behaviors, and ways of working, leading to more efficient workflows and improved results;

Transitioning to Product Teams

Shifting from project teams to product teams is feasible, even if project teams have been the norm.

Change can be challenging, and transitioning to product teams may initially seem overwhelming. Recognizing that resistance and uncertainty are natural aspects of any significant shift is essential. To support your team, address their concerns, offer clear guidance, and emphasize that the goal is to create a more stable, effective, and rewarding work environment.

In the beginning, it will probably seem overwhelming to change from project to product team. But that’s just normal - you should move on despite the resistance. To cope with this significant change, support your team’s needs, and address their concerns, you should closely examine the following tips:

• Find suitable cases

  • Identify areas within your organization where a product-focused approach could be beneficial. Look at core software products, ongoing services, or significant customer-facing initiatives. These areas can benefit from continuous development and improvement, leading to better responsiveness to customer feedback and market changes.

• Get them to agree

  • It’s crucial to effectively convey the benefits of product teams to stakeholders and team members so that they all agree to this upcoming change. Emphasise how this transition can enhance success and focus on the benefits. Regularly communicate this vision through meetings, emails, and presentations to ensure clear understanding and buy-in across the organization.

• Train them to be product-focused

  • Product teams require different training than project teams. Equip them with essential training and resources for a product-focused environment. Offer agile training, provide necessary tools, and ensure ongoing support. This preparation will help teams understand agile principles and adapt to the new structure, supporting a smoother transition and better performance.

• Continuous Improvement

  • Encourage a culture of constant improvement because that’s what product teams are all about. Foster regular reflection on successes and challenges, and seek ways to enhance performance and product quality. Recognize achievements and demonstrate commitment to ongoing improvement through consistent communication and actions.

• Build Healthy Teams
  • Gradually implement the transition to product teams to support smooth adaptation, unlike project teams, which may struggle with agile principles. Carefully manage this transition to maximize benefits and ensure that teams align well with agile practices;