A new operating model separates long-term product maintenance (handled by Product Owners) from initial development. For new features, a temporary "swarming" team of Program Managers (strategy) and Product Ops (execution/tools) is assembled, creating a flexible, expert-driven approach to innovation.
Related Insights
Large companies like Rippling and TripActions maintain innovation velocity by creating "carved out" teams for new, "zero to one" initiatives. This organizational strategy provides singular focus, empowering a small group to execute with the intensity and speed of an early-stage startup without corporate distractions.
To increase agility, Shopify is dismantling permanent teams tied to specific product surfaces. It's creating a centralized pool of high-impact individual contributors ('strategic ICs') who are deployed dynamically to own entire user journeys, a model exemplified by its acquisition of the MOLLY studio.
While traditionally creating cultural friction, separate innovation teams are now more viable thanks to AI. The ability to go from idea to prototype extremely fast and leanly allows a small team to explore the "next frontier" without derailing the core product org, provided clear handoff rules exist.
PostHog manages its 16+ product suite by assigning small, autonomous teams of roughly three engineers to each product. This "compound startup" approach allows them to go wide, competing with multiple point solutions while remaining flat and avoiding bureaucracy. The small team structure fosters ownership and rapid development.
In an AI-driven world, product teams should operate like a busy shipyard: seemingly chaotic but underpinned by high skill and careful communication. This cross-functional pod (PM, Eng, Design, Research, Data, Marketing) collaborates constantly, breaking down traditional processes like standups.
A new organizational model is emerging where companies create small, agile teams comprising a senior expert, an engineer, and a marketer. Empowered by AI tools, these pods can develop and launch new products in a week, a task that once required large teams and over six months.
Siphoning off cutting-edge work to a separate 'labs' group demotivates core teams and disconnects innovation from those who own the customer. Instead, foster 'innovating teams' by making innovation the responsibility of the core product teams themselves.
To manage innovation and stability simultaneously, the company designates teams based on product maturity. 'Pre-PMF' teams have a six-month mandate to ship rapidly to find a market or be cut. 'Post-PMF' teams focus on long-term reliability and testing, creating distinct operational speeds within the organization.
To launch new products and compete with agile startups, embed a small "incubation seller" team directly within the technology organization. This model ensures tight alignment between product, engineering, and the first revenue-generating efforts, mirroring the cross-functional approach of an early-stage company.
To move from a project-based model to a scalable product, Irembo created two distinct teams. One team focused on building the core platform and its capabilities, while the other handled client-specific implementations using the platform, effectively managing the transition without disrupting delivery.
