Balancing process vs. product mindsets for product success

As a PM, you shape the direction your team takes to develop, adapt, and deliver successful products to your customers. While the end goal — building the best possible product — doesn’t change, the approach you take can vary depending on your individual inclinations and the culture of your organization.

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For instance, you might find that you lean towards either a process or product mindset, or maybe you’ve heard these two terms thrown around and struggle to tell them apart.

To help you determine your context, this article covers the differences between them and their implications for team management and strategy, as well as how to balance them for optimal outcomes.

What is a process mindset?

A process mindset involves focusing on the details of each step in every process. Your main objective is to make each step — and by extension, each process — more efficient, consistent, and overall, flawless.

Most operations-driven organizations use this approach to attain “success” by refining the “how” to ensure that processes run smoothly and productivity scales efficiently.

If your priority is analyzing processes step-by-step and finding areas for improvement, you have a process mindset:

• Focus is on the “how”
• Goal is to increase productivity in a scalable way by:
  • Minimizing errors
  • Optimizing resources
  • Delivering flawless services
• Metrics focus on:
  • Operational performance (increasing cycle time, optimizing net output, decreasing delivery time or lead time)
  • Resource efficiency (increasing equipment efficiencies, resource utilization rates, increasing robustness, decreasing downtime)
  • Quality (decreasing defect rate and waste times)
  • Financial (decreasing costs per unit produced, increasing ROI)

Toyota is one of the best examples of a process-focused product organization. It created the Toyota Production System (TPS), which was the precursor to lean manufacturing, by focusing on continuous improvement, waste reduction, and quality control.

A process focus allows Toyota to consistently produce reliable, cost-effective vehicles with minimal defects.

Pros

• Ideal for projects with a well-defined scope, enabling tasks to be completed efficiently and effectively
• Ensures deadlines, deliverables, and costs are managed predictably
• Provides a structured approach that enhances consistency and repeatability

Cons

• Lacks flexibility, making it unsuitable for continuous innovation and evolving products
• Any changes require new documentation and alignment, which can slow down adaptation
• Risk of focusing too much on execution over long-term customer value, which may limit product growth
• May unintentionally foster blame culture — overemphasis on process efficiency can lead to teams shifting blame rather than collaborating across teams and fostering a strong company culture

What is a product mindset?

A product mindset emphasizes looking at the bigger picture and focusing on long-term impact. Instead of fixating on specific processes or steps that may change over time, the goal is to deliver value to users as quickly as possible.

Most product-driven organizations prioritize continuous delivery and iteration over more detailed process improvements. Individual teams manage the “how” independently if and when they have the time and resources to do so.

If your priority is delivering customer value and adapting quickly to user needs, you have a product mindset:

• Focus is on the “why”
• Goal is to deliver customer value through:
  • Continuous delivery
  • Market responsiveness
  • Iterative learning and improvement
• Metrics focus on:
  • User-centric performance — Acquisition, user count/retention/turnover, referrals
  • Business impact — Cost savings from feature development, NPS tracking, customer value
  • Agility indicators — Sprint velocity, time to market/release, feature adoption rate
• Common practices include:
  • Market analysis and user research
  • Agile methodologies — Short, adaptable product roadmaps and sprint cycles
  • Developing minimum viable features/products, then iterating based on user feedback
  • Knowledge transfer sessions, sharing lessons learned, accepting failure as a part of learning

Netflix, Amazon, Google, Spotify are some of the best known examples of product mindset companies. Each team has its own startup-like teams, run its own agile product roadmaps, and set its own KPIs and metrics.

Pros

• Encourages creativity and adaptability, making it ideal for evolving products and shifting market needs
• Prioritizes customer value, using strategies like MVPs, roadmaps, and iterative improvements
• Reduces dependency on rigid documentation, allowing more focus on user experience and product evolution

Cons

• Lacks efficiency in structured execution, as continuous adaptation requires managing multiple variables
• Market changes or frequents shifts in priorities can render previous efforts obsolete, leading to wasted resources and instability
• Lack of ownership and less emphasis on deadlines and specific processes may create long-term challenges in execution and resource planning

Process mindset vs. product mindset: Key differences

Both mindsets have their own advantages and drawbacks under different circumstances.

A process mindset is a perfect approach for a determined scope. You can complete the selected job quickly and effectively. If your mission is to deliver that specific job within the given time, a process mindset can help you succeed.

But when you need to adapt and innovate quickly, the process approach may let you down. It’s efficient and repeatable for a fixed scope, but it’s also rigid, making it less suitable for continuous development for a living product.

A product mindset comes into play when you want to focus on creativity and the user. In this case, you focus on delivering an MVP to the market rather than documenting and updating processes in detail.

However, a product mindset requires continuous adaptation, which can be inefficient as you need to control lots of variables and shifts in the market. When a change is required, you may need to shift your strategy in response, and your previous work might go to waste.

Here’s a quick overview of the differences between process and product mindsets:

One of the most commonly misunderstood issues regarding the process mindset is the perception that you cannot make changes. Just because a change is difficult doesn’t mean it can’t be made, so don’t forget to emphasize that everyone’s opinion on the team is important.

How to balance process and product mindsets

As a product manager, it’s natural to have a product-focused mindset, although there are benefits of using a process-focused approach. To take advantage of both mindsets, you could consider implementing these mindsets with different roles — for example, your product team could have a more product-focused mindset while your technical team deals with process improvements.

Forcing one mindset over another isn’t necessary and can lead to poor results. For example, forcing someone who loves certainty to a product mindset is challenging and tough because there will always be missing points when you start.

If you want to shift to a product mindset, create structured teams and make them responsible for a certain goal. That helps process minded individuals adapt to a product mindset with the help of ownership and a sense of specific goals.

Overall, a process mindset isn’t the best approach for products that frequently shift in response to user feedback. On the other hand, customers’ NPS, user engagement, and total user count metrics are vital for a product mindset. The product mindset allows you to easily shift your roadmap to account for a customer problem.

While a product mindset is open to change, you need to be careful about controlling your data. Sometimes being open to opportunities can cause you to waste effort. Don’t fall in love with all the good ideas and jump on them without looking at the data.

You need to ask the (right!) questions like: “What is the value of this feature; how many users require this; and which KPI will be increased?”

Final thoughts

Even though a process mindset can be more challenging, you cannot say with absolute certainty that one works way better than the other. As with anything else, you need to determine what makes the most sense for your specific context and company culture.

To review once more, the key differences between the two mindsets are:

• Process mindset — Focuses on the “how” (efficiency, repeatability, adherence to processes), best for products with well-defined scopes
• Product mindset — Focuses on the “why” (customer value, market adaptability), best for evolving products with shifting priorities

Regardless of which one you choose, make sure that you build a team that can adapt to changing conditions and switch mindsets when necessary.

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