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Businesses in all industries are taking a page out of the tech playbook. They are turning to product operating models (POMs) to expedite execution and enhance outcomes. This model, which originated in the fast-paced and highly competitive software industry, promises to streamline decisions by encouraging strong, top-down governance guided by a single strategic vision.
It’s a pretty thought for leaders. Faster decisions mean faster outcomes. That’s a priceless advantage in today’s market landscape, no matter the organization’s line of work. However, an emphasis on speed might hold businesses back as they seek full-scale optimization.
According to a recent report by my company, Planview, leaders are getting good at talking the talk of POMs, both internally and with customers. They’re proving less adept at walking the walk. Why? They’ve fallen into the exact type of misunderstanding of objectives that POMs are designed to help companies avoid.
Progress with a caveat
Though today’s organizations recognize the importance of efficient, goals-driven execution to their overall health, they’re struggling to turn awareness into effective action. It’s a breakdown of strategic execution at the change-management level.
Nearly half of strategic leaders and decision-makers surveyed for the “2025 State of Strategy Execution Report” strongly agree that they need to expedite decision-making and execution to be successful, a 10 percentage-point increase from 2021. The report showed a near-identical change in the proportion of decision-makers who consider major profit loss to be a significant risk of lagging agility during this period. It was 47 percent in 2025 and 37 percent in 2021.
Another key finding strikes right at the heart of the matter. According to the data, execution speed has increased and review cadences have accelerated. However, leaders are less likely to say they are prepared to adapt than they were four years ago. In 2021, 40 percent said that they were ready to adapt while in 2025, only 28 percent responded positively.
Essentially, the report reveals what long-time devotees of the POM already knew: Speed is a central benefit of the approach, but focusing on speed alone is a losing battle. Our research found that, despite improved speed, the average organization met only 62 percent of its strategic goals in 2024. Thirty-nine percent of complex approval processes and 38 percent of strategy-execution misalignment were identified as the top barriers to success.
Back to basics
Leaders focused first and foremost on speed have set the wrong objective and are tracking the wrong results. Speed without alignment just means moving fast in the wrong direction. To balance the scales and get on track, leaders must lay a foundation based on full digitalization and centralization of the following:
- Resources: to ensure that all teams have access to the tools, budget, and personnel they need to fulfill their roles quickly and effectively.
- Communication and workflows: to expedite feedback loops and reduce misunderstandings that can arise from siloed processes.
- Governance: to promote consistency in decision-making, best practices, risk management, and compliance across the organization.
- Information: to ensure contextualized, holistic, and up-to-date data is accessible and available to everyone who needs it.
- Roadmaps and plans: to keep everyone on track and focused on the organization’s overarching goals, desired outcomes, and progress toward them.
The power of alignment
This isn’t just a hypothesis or musing from a champion of product-first thinking. Our research revealed that businesses, a.k.a. strategy leaders, that have managed to strike a balance between speed and outcomes are far more likely to report having complete or nearly complete centralization of execution management than those that haven’t, a.k.a. the laggards.
Another key piece of the puzzle seems to be technology, which drives centralization capabilities in modern enterprises. Leaders are more likely to have invested in robust tech stacks to support their efforts and to have immediate access to accurate data. Fewer than half, or 40 percent, say they have access to timely, accurate data—a striking representation of the lack of centralization that’s hindering progress.
All factors considered, the performance of leaders is a testament to the power of alignment—both in core business areas and during change management initiatives. Leaders are 9.5x more likely to feel prepared to pivot, are 4.6x more likely to feel confident in their ability to manage change, and outpace the average rate of success by 10 percentage points.
Fast and effective
While the speed of decision-making is undeniably appealing in today’s environment, it is essential that organizations build toward it from the bottom up. That means letting holistic understanding and centralization guide both the transition to the new model and the strategic execution that follows. Challenges will, of course, continue to arise along the way. However, the foundation built amid this shift will help them navigate uncertainty with grace and confidence.
The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.
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Louise K. Allen
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