(2024-08-28) Cagan The Moral Case For The Product Model

Martin Cagan: The Moral Case for the Product Model. In virtually all of my writing and speaking, I try to make the business case for the product model.

However, there’s another argument for the product model, and that is the moral case.

I most definitely believe that when working in the product model, the employees are happier, and find their work more fulfilling, and feel proud about improving the lives of their customers, or improving our society, or our environment. (cf Product Team, Software for your Head)

I have long made the case that most companies are underutilizing the talent they have

Further, I believe that the moral case and the business case are not unrelated. Doing the right thing for employees makes good business sense.

I have always been reluctant to try to make the moral case for the product model. This is because I don’t have the confidence (or maybe it’s the arrogance) to go to a CEO, and try to argue that their employees deserve better.

And in fairness, in my experience most CEO’s would say that all things considered equal, of course they would much rather do the right thing for their employees. But as they see it, business is brutal

But recently I learned of a book that seems to have been under the radar. The author, Seth Godin, is very well known... a year ago he released a short book that’s a bit outside of his normal wheelhouse, called The Song of Significance, A New Manifesto for Teams.

After reading the book, I absolutely consider it a terrific companion to TRANSFORMED. It’s essentially a deep dive into what it really means when we say we want empowered teams of missionaries rather than teams of mercenaries, and why these people have such higher satisfaction with their work.

Empowered teams of missionaries have purpose; they are passionate about the product vision, they are fully empowered to use their minds and their skills to their full potential to solve hard problems for their customers and their company, and they feel a real sense of ownership of the outcome. (Team Agency)

I don’t want to suggest that anyone should march into their CEO’s office and start lecturing them about their need to “do the right thing.” This would very likely not end well for you.

Where I find the moral case especially helpful is that there has always been a subset of people, usually individual contributors, that have given up hope of finding satisfaction and meaning in their work. At this point, they’re just looking for a reliable paycheck. I’ve found that some of these people respond to the moral case more so than the business case.

However, there was one short story that I’d like to share here because it gets right to the heart of the product model, and very clearly illustrates the power of meaning:

In 1973, founder Ray Anderson created a commercial carpet tile business called Interface

a prospective customer pointed out the environmental damage created by industrial carpet

Together they were going to stop pillaging the earth, and instead set an example for other companies

He then admitted that he had no idea how to do that. But he challenged his team: “We will achieve sustainability by the year __. You must fill in the year.”

Today, Interface sells commercial carpet tiles that are not only carbon-neutral, but carbon-negative

financial success has followed, with a valuation of over USD $1B.

But beyond the benefits to the environment and the ongoing business results, the team described how the journey to rebuild their company around this much more meaningful vision changed each of them personally

Ray Anderson was brave, but it was his team who were the heroes.”

This is an exceptionally clear example of leadership inspiring a company with a meaningful vision, and empowering a team by assigning them an important problem to solve (an objective) with a clear measure of success (key results).

Note that he didn’t define the problem, and then also give them a date to be done, which would have undermined their empowerment.