The Biggest Wins, Misses, and Challenges for Product-Led Organizations in 2024
I know some of you haven’t yet put away your flip flops and sunscreen, but Q3 is on our doorstep and planning for 2025 is well underway for most organizations. In saying that, my hope is not to create panic around end-of-year activities, but to insert a pause amidst all our future planning to reflect on the past. What kind of challenges were product-led organizations up against in 2024? What was great, and what sort of stunk?
In this reflection piece, I’ll break down the Product Operating Model trends that surprised me the most, the challenges that created stagnancy in the industry, and the wins that make me hopeful for the year ahead.
The Biggest Challenges for Product-Led Organizations in 2024
In 2024, there was a triple threat of external triggers that created a lot of stagnation in general, but especially for product-led, technology-enabled businesses (which is most businesses).
Threat #1: The Economy
It feels like we’ve been talking about the “R” word for a year now (maybe longer?!?!), yet the recession turned into some kind of will-they-won't-they drama that had us hanging on for dear life.
Is it going to happen, or is it not going to happen? Should we lay off our staff, or should we invest in hiring new talent? Is inflation getting better? What’s going on with interest rates?
In isolation, economic turbulence can be navigable and small bets can still be maneuvered. But 2024 had more than just some bumpy jobs reports, which brings me to the next threat….
Threat #2: Election Year
Markets hate uncertainty, and there’s a lot of that going on globally and on the homefront. Election years always create hesitation— this is an understatement in 2024, especially with changing names at the tops of tickets.
Compounded by the economy, organizations are even more risk-averse, putting off investment in new and emerging technologies, or deprioritizing foundational work. Which brings me to my third point…
Threat #3: The Impact of AI
Often, big disruptions in tech force a change in ways of working. For example, when people started moving from desktop to mobile, it forced organizations to deliver value differently. It’s no accident that as mobile tech accelerated so did the adoption of Agile. It’s happening now as companies grapple with the acceleration of AI; companies are constantly struggling to organize themselves around the technologies they adopt.
AI’s seeming ubiquity has forced a reallocation of (or a pause in) investment from foundational tech and teams towards new innovation without considering the tradeoffs of deprioritizing core offerings. This, paired with the uncertainty factors of the economy and political landscape, are likely cannibalizing the very foundation that new tech relies on in order to scale accordingly, especially when the tides turn to more stable and confident times around the corner.
The Impact of the Triple Threat
Uncertainty around the economy, election year, and the impact of AI has created a lot of hesitation for tech-enabled firms. In 2024, I saw less experimentation, less willingness to take risks, and confusion over where to invest resources.
I empathize with leaders and our clients as they struggle with hard decisions during these murky times. Until some of this uncertainty fades, we will continue to be in a holding pattern, which is not without its repercussions. So, let’s dive into that, shall we?!
The Biggest Miss for Product-Led Organizations in 2024
With the triple threat driving fear and conservative decision-making, I’ve watched many high-functioning product organizations slip from their well-oiled status.
Two key characteristics of a high-functioning product organization are Empowered Execution and Transformational Leadership. Yet, I watched both aspects suffer as organizations got stuck in holding patterns this year.
Are your teams living in constant fear around the next round of layoffs, or so desensitized by layoffs that they’re resigned and complacent? Are you hearing rumblings that people feel like they can’t get anything done? Or maybe there’s a general dissatisfaction with the amount of resources being funneled into shiny new technology when there are a lot of existing issues with foundational offerings that need to be addressed.
This discord directly impacts agency, autonomy, innovation, and accountability, which are all required to become a high-performing product organization.
And hey, listen, I know that leaders of organizations in any good capitalist society face certain hard realities. That said, we lose so much when our talent feels disempowered, unfocused, and disengaged (it’s why Empowered Execution and Transformational Leadership are foundational to our approach at Tuckpoint).
This is not to say that your train can’t get back on the tracks, but my big observation in 2024 was that fear and uncertainty have allowed some of the key pillars required to run a high-functioning product organization to fall by the wayside.
The Biggest Wins for Product-Led Organizations in 2024
Let’s end on a positive note here because 2024 wasn’t all doom and gloom. There were some really surprising and exciting things to celebrate.
Win #1: Product Operations Has Finally Entered the Chat
I was pleasantly surprised to see the sentiment around Product Operations make its way into more and more client conversations. Now, most folks weren’t using those exact words, but when they tell me they “need someone who can help run a consistent product practice” and “we want a more methodical product practice with standardized processes,” Product Ops is what they’re describing. And that gives me chills (the good kind)!
Historically, Product Ops has been treated as an afterthought—something to be integrated once everything else is up and running. But really, Product Ops is a critical element that should be introduced earlier in the maturation of a product-led organization.
It’s a good day for leaders of product operating models everywhere when people are hungry for professionalism in product management (and earlier in the process than I've ever seen it before). This lends credence to the idea that product management is a practice area deserving of its own standards, not just a role to be filled on a team.
Win #2: Data Is Starting to Be Treated as a Product
Another emerging trend I saw in 2024 was a shift in how organizations are thinking about data. We saw several Tuckpoint clients embrace data as a strategic asset that needs to be managed as a product. This is a fairly advanced concept and it shows that companies are realizing they need to get their data under control as we anticipate more integration with AI being leveraged across the enterprise.
This is such an “aha” moment because folks realize that the operating principles the Tuckpoint team helps organizations adopt to develop strong product practices can be applied to data, AI, or any technology. When you have a strong existing Product Operating Model, folding new tech into the existing structure becomes seamless.
Win #3: Marty Cagan’s New Book Helped Elevate the Conversation Around Operating Model Transformation
We can’t talk about the Product Operating Model in 2024 without mentioning the publication of Marty Cagan's book, Transformed. At a micro level, it’s a great resource for leaders of organizations to start building awareness of all that a Product Operating Model has to offer.
At a macro level, the book is helping to elevate and broaden the conversation among new circles about Operating Model Transformation and the Product Operating Model.
I especially love how Cagan captured the stories of legacy companies transforming their Operating Model Design and embracing the product-led approach, which is a breath of fresh air for our team at Tuckpoint because we’ve been out here fighting the good fight for a while now. Boy does it feel good to have a resource in our corner that validates the importance of modernizing your operating model and embracing the product-led approach!
My hope is that the initial ripples created by this book will continue to spread and make the conversations we have about Operating Model Transformation and the Product Operating Model more and more productive.
What Did 2024 Mean for Your Organization?
What trends, misses, surprises, or challenges did you experience in 2024 within your product-led organization? I’d love to grab coffee to chat about what you were up against and how that might impact your plans for 2025. Send me a note and I’ll reach out to find time for us to connect!
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