The 'STONE Transformation' company logo, featuring the word 'STONE' in large gray and light green stylized letters over the word 'Transformation' in gray text
Give Us a Shout

Not Everything is a Product: Balancing Product and Non-Product Work in Fortune 500 Transformations

GenAI is changing the game for search results in both the paid and organic space in a big way. Organizations with an online presense need to act quickly to come up with a new search strategy to get up to speed and stay ahead of changes underway. We will cover: 1) the larger implications of GenAI on search, 2) how GenAI is impacting SEO, 3) how GenAI is impacting paid search, 4) what your organization can begin to do about these impacts.

Executive Summary

In the race to embrace agile and product-driven models, many organizations are pivoting from traditional digital software delivery to modern, customer-centric approaches. This shift promises faster time-to-market, enhanced customer satisfaction, and improved operational performance – music to any C-suite’s ears. However, in their zeal to “go product,” companies often overlook the critical role of non-product work, such as operations, service, and project teams. Neglecting these foundational elements can erode morale, blur roles and responsibilities, and ultimately undermine the very product-led transformation they seek. This white paper explores the differences between product and non-product work, highlights pitfalls of misalignment, provides insights into typical IT portfolio distributions, and offers practical strategies to harmonize these approaches within large enterprises. Drawing on Stone’s expertise and outside research, we provide a roadmap for organizations to embrace product thinking without losing sight of the operational backbone that keeps the enterprise humming.

Introduction: The Product Push and Its Perils

Fortune 500 companies are no strangers to transformation. Over the past decade, the allure of agile methodologies and product operating models has sparked a revolution in how firms deliver digital solutions. McKinsey reports that organizations adopting agile transformations can see operational performance improvements of 30 to 50% and time-to-market reductions of up to 70%. Yet, in the rush to organize around products – think shiny apps, sleek platforms, and customer journeys – many enterprises inadvertently sideline the equally vital non-product work. Operations, service, and project teams, which form the backbone of organizational stability, are often left in the dust, leading to confusion, inefficiency, and disgruntled employees.

The phrase “not everything is a product” serves as a gentle reminder that while product-led thinking is powerful, it’s not a one-size-fits-all solution. Imagine trying to fit a square peg (your IT operations team) into a round hole (a product backlog). It’s not just awkward—it’s a recipe for chaos. This paper unpacks the differences between product and non-product work, explores why organizations struggle to align them, examines typical IT portfolio distributions, and offers actionable strategies to bring balance to the enterprise. Our goal? To help your organization harness the best of both worlds without tripping over its own ambitions.

Defining Product and Non-Product Work

To align work effectively, we first need clear definitions. Let’s break it down:

Product Work

Product work revolves around creating and maintaining offerings that deliver value to customers or internal stakeholders. These are typically software or digital solutions with defined lifecycles, from ideation to delivery and ongoing iteration. Product teams operate with a customer-centric “North Star,” using agile practices like Objectives and Key Results (OKRs) to align with business goals. Key characteristics include:

  • Customer Focus: Products are designed around user needs, whether it’s an external customer app or an internal HR platform.
  • Iterative Development: Teams work in sprints, continuously improving based on feedback and market demands.
  • Cross-Functional Teams: Product teams blend skills from product management, engineering, design, and more, fostering collaboration.
  • Outcome-Oriented Metrics: Success is measured by business outcomes, like customer engagement or brand awareness.


Examples: A mobile banking app, a cloud-based CRM platform, or an AI-driven analytics dashboard.

Non-Product Work

Non-product work encompasses the operational, service, and project-based activities that keep the organization running smoothly. These tasks are often repetitive, process-driven, or temporary, focusing on stability rather than innovation. Efficient non-product work relies on clear structures and tools to support ongoing operations. Key characteristics include:

  • Process-Driven: Operations teams maintain systems (e.g., IT infrastructure) through standardized processes.
  • Service-Oriented: Service teams, like help desks or customer support, focus on resolving issues and maintaining satisfaction.
  • Project-Based: Projects have defined start and end points, delivering specific outcomes, such as a system upgrade or compliance initiative.
  • Stability-Focused Metrics: Success is measured by uptime, issue resolution time, or project completion rates.

Examples: Data center maintenance, IT service desk operations, or a one-time ERP implementation.


The Gray Area

Some work blurs the line. For instance, a platform team managing APIs might feel “product-like” but serves as infrastructure for other products. Platform teams are critical for enabling product teams by providing reusable services, yet they often operate with a stability-first mindset. Recognizing these nuances is key to avoiding misclassification.

Typical IT Portfolio Distribution

Understanding the composition of an organization’s IT portfolio is crucial for balancing product and non-product work. Research from McKinsey, BCG, and Gartner provides insights into how Fortune 500 companies typically allocate their IT efforts across product, platform, operations, services, and projects. While distributions vary by industry, size, and maturity, the following breakdown offers a general guide based on recent analyses:

  • Product Work (15-25%): This includes customer-facing or internal-user-facing solutions, such as mobile apps, e-commerce platforms, or analytics tools. McKinsey’s research on product and platform models indicates that product work typically accounts for 15-20% of IT budgets in mature organizations, with some high-tech firms reaching 25% as they prioritize customer-centric innovation. These teams focus on iterative development and business outcomes, often leveraging agile methodologies.
  • Platform Work (10-20%): Platforms, such as APIs, data lakes, or cloud infrastructure, enable product teams by providing reusable, scalable services. McKinsey notes that platform teams often consume 10-15% of IT budgets, with leading organizations allocating up to 20% to support digital transformation. These teams balance innovation with stability, ensuring robust foundations for products.
  • Operations (30-40%): Operations, including IT infrastructure management, cybersecurity, and system maintenance, form the largest share of the IT portfolio. Gartner’s analysis of IT spending suggests that operations account for 30-40% of IT budgets in large enterprises, as they prioritize stability, uptime, and compliance. These activities are process-driven and critical for organizational continuity.
  • Services (15-25%): Service-oriented work, such as help desks, end-user support, and customer service, typically comprises 15-25% of the IT portfolio. BCG highlights that service operations are essential for maintaining customer satisfaction and operational efficiency, often relying on IT service management (ITSM) tools like ServiceNow.
  • Projects (10-20%): Project-based work, such as system implementations, migrations, or compliance initiatives, accounts for 10-20% of IT budgets. McKinsey’s Operating Model Index notes that project-oriented governance persists in many
    organizations for large-scale initiatives, particularly in regulated industries like finance or healthcare.


These percentages are not static and depend on factors like industry (e.g., tech-heavy firms lean toward products, while manufacturing firms prioritize operations) and transformation maturity. For example, a Fortune 500 firm we advised found that 40% of its IT portfolio was operations-focused, 20% product-focused, 15% platform-focused, 15% service-focused, and 10% project-focused after conducting a portfolio analysis. This distribution helped them allocate resources effectively and avoid overemphasizing product work at the expense of operational stability.

Pitfalls of Misaligning Product and Non-Product Work

When organizations treat all work as product work, chaos ensues. Here are the most common pitfalls, backed by research and Stone’s real-world experience:

  1. Eroded Morale: Forcing operations teams into agile product frameworks can demotivate employees who thrive on structure and predictability. McKinsey’s research shows that team engagement, measured by employee satisfaction scores, suffers when roles and expectations are unclear. Imagine an IT operations engineer being asked to “sprint” through server maintenance—it’s like asking a chef to cater a banquet with a stopwatch ticking.
  2. Role Confusion: Without clear delineation, product and non-product teams struggle with overlapping responsibilities. BCG highlights that misaligned roles can lead to inefficiencies, as seen in organizations where product teams take on operational tasks, slowing innovation.
  3. Inefficient Resource Allocation: Agile funding models prioritize product teams, often starving operations and service teams of resources. McKinsey notes that agile funding shifts focus to fixed-capacity teams, which can leave non-product work underfunded and overstretched.
  4. Technical Debt Accumulation: Treating infrastructure as a product can lead to neglected maintenance, increasing technical debt. McKinsey estimates that dedicating 10 to 20% of product team time to tech debt reduction can free up 50% more time for value-generating work.
  5. Customer Experience Gaps: Service teams, critical for customer satisfaction, lose focus when forced into product-centric models. McKinsey’s agile impact engine shows that customer satisfaction scores rise by 10 to 30 points with proper alignment, but missteps can negate these gains.

These pitfalls aren’t just theoretical – they’re the growing pains of companies chasing agility without a balanced playbook. One global healthcare company, for example, paused its agile scale-up when it realized its product model left teams frustrated and unclear on their roles.

Why Organizations Struggle with Alignment

To avoid these pitfalls, organizations must first identify which work is which. Here’s a couple areas to explore in order to help see the differences:

  1. Map Work to Outcomes:
    • Ask: Does this work deliver a customer-facing or internal-user-facing solution with ongoing iterations? If yes, it’s likely product work.
    • Example: A team building a customer loyalty app is product-focused, while a team maintaining network uptime is operational.
  2. Assess Team Composition:
    • Product teams are cross-functional, blending product managers, developers, and designers. Non-product teams, like IT operations, are often specialized.
  3. Evaluate Metrics:
    • Product teams measure success via customer engagement or revenue growth. Non-product teams track uptime, resolution times, or project milestones.
  4. Check Cadence:
    • Product work operates in sprints (e.g., two-week cycles). Non-product work, like service desk operations, follows continuous or project-based timelines.
  5. Engage Stakeholders:
    • Conduct workshops with leaders and teams to classify work. BCG’s approach to cross-functional collaboration emphasizes stakeholder alignment to clarify roles.

Recognizing Product vs. Non-Product Work in Your Organization

Aligning product and non-product work is like trying to herd cats while riding a unicycle—it’s tricky, and the stakes are high. Several factors contribute to this struggle:

  • Overzealous Product Hype: The promise of 60% higher shareholder returns and 16% higher operating margins from mature product models (per McKinsey) tempts leaders to apply product thinking universally. This “product fever” overlooks the need for stable operations.
  • Cultural Resistance: Traditional operations teams, accustomed to hierarchical structures, resist agile’s flat, collaborative approach. Research on agile transformations highlights that successful shifts require strong leadership alignment, which is often lacking.
  • Lack of Clarity: Organizations fail to define which work is product-driven versus operational. We stress the importance of clear team structures to avoid this trap.
  • Tooling Mismatch: Product teams thrive on tools like Jira for backlogs, but operations teams need ITSM platforms like ServiceNow. Forcing one toolset across both creates friction.
  • Misguided Metrics: Product teams chase OKRs, while operations teams focus on SLAs. Without a unified measurement framework, alignment falters.

Strategies to Integrate Product and Non-Product Thinking

Bringing balanced thinking into your enterprise requires intentional design. Here are five strategies we like to suggest:

  1. Define Clear Operating Models:
    • Create distinct frameworks for product and non-product teams. We often try to start with a business-led digital roadmap that separates product (customer-focused) and platform (stability-focused) teams.
  2. Tailor Funding Models:
    • Use agile funding for product teams (fixed-capacity, outcome-based) and traditional budgets for operations (process-based). McKinsey notes that agile funding can reduce budgeting time by over 60%, but operations need predictable allocations.
  3. Foster Cross-Functional Collaboration:
    • Integrate product and non-product teams through shared goals. We highlight the need for cross-functional teams to align on outcomes, like uptime or customer satisfaction.
  4. Use Fit-for-Purpose Tools:
    • Equip product teams with agile tools (e.g., Jira) and operations teams with ITSM platforms (e.g., ServiceNow). Modern toolsets are often vital for effective product and non-product management.
  5. Train for Clarity and Culture:
    • Invest in training to clarify roles and build a culture that values both innovation and stability.
    • Fun twist: Host “Product vs. Ops” game nights to gamify learning and build camaraderie across teams.

Conclusion: A Balanced Future

Digital organizations stand at a crossroads. The shift to product-led models offers immense potential – faster innovation, happier customers, and stronger financials. But not everything is a product. Operations, service, and project teams are the unsung heroes that keep the enterprise running. By understanding typical IT portfolio distributions, recognizing the differences between product and non-product work, addressing alignment challenges, and implementing tailored strategies, companies can achieve the best of both worlds: agility without anarchy, innovation without instability.

At Stone Transformation, we believe transformation is a balancing act. Our thought leadership combines rigorous research with practical know-how to help you navigate this journey. Ready to harmonize your product and non-product work? 

Let’s talk – because even the best symphony needs both melody and rhythm.

References

  • McKinsey & Company. “Enterprise agility: Measuring the business impact.” 2020.
  • McKinsey & Company. “What makes product teams effective?” 2024.
  • McKinsey & Company. “The journey to an agile organization.” 2019.
  • McKinsey & Company. “Bottom-line benefit of the product operating model.” 2023.
  • McKinsey & Company. “The big product and platform shift: Five actions to get the transformation right.” 2023.
  • BCG. “Featured Insights and Perspectives.” 2025.
  • BCG. “Digital Transformation Strategy Consulting.” 2024.
  • Gartner. “Product Organization and Leadership Primer.”[JH1]  2024.

More Case Studies

Scaling Enterprise AI in Global Pharmaceuticals

Scaling Enterprise AI in Global Pharmaceuticals

Read More
Organized Design & Development

Organized Design & Development

Read More
AI-Powered Menu Planning That Puts Time Back in Experts’ Hands

AI-Powered Menu Planning That Puts Time Back in Experts’ Hands

Read More
Modernizing the Global Talent Acquisition Organization​

Modernizing the Global Talent Acquisition Organization​

Read More
How We Get Go to Market Materials Approved Faster​

How We Get Go to Market Materials Approved Faster​

Read More
Supporting Employee Engagement of Scientific Communities Through Leadership Enablement​

Supporting Employee Engagement of Scientific Communities Through Leadership Enablement​

Read More

We help our clients in banking, insurance, and investment sectors to enhance operational efficiency, manage risk, and drive digital transformation. Our expertise in regulatory compliance, market analysis, and technology integration ensures that financial institutions can adapt to changing market conditions, optimize customer experiences, and capitalize on new opportunities. By aligning strategic goals with industry best practices, we empower our clients to achieve financial stability, growth, and a competitive edge in the global market.

We get consumer brands because we are consumers ourselves. Stone Transformation’s consultants understand the dynamic nature of consumer markets and deliver tailored solutions that enhance brand value, optimize supply chain operations, and improve customer engagement. Our team leverages market analytics, consumer behavior insights, and digital transformation strategies to help our clients stay ahead of trends, manage inventory efficiently, and create compelling customer experiences. With a focus on sustainable practices and profitability, we empower our CPG and Retail clients to navigate market shifts and achieve long-term success.

We help educational institutions enhance learning experiences, optimize administrative functions, and embrace digital transformation. Our strategic support fosters academic success, research advancements, and sustainable growth, preparing institutions to meet future educational challenges.

With such robust expertise in Life Sciences and a passion for making a positive impact on the world, we also partner closely with Federal and State governments to advance Health Equity, ensuring that all communities have fair access to healthcare services. We collaborate with government entities to address social determinants of health, reduce disparities, and promote inclusive health policies. Leveraging data and community engagement, we enhance health outcomes and service delivery, building resilient public health systems for diverse populations.

Federal, State, and Local Government: We are passionate about contributing directly to societal well-being and public good. Engaging with government agencies provides an opportunity to impact policy and program development on a large scale, addressing complex challenges that affect entire communities. This collaboration enables us to leverage our expertise to foster equitable and sustainable improvements in public services, from healthcare to education and beyond. By influencing positive change and driving innovation in the public sector, we help create more efficient, inclusive, and effective government operations, ultimately leading to stronger, healthier communities.

We specialize in bridging the gap between wellness and scientific innovation by guiding our clients in developing and implementing cutting-edge solutions, from digital health platforms to AI-driven diagnostics. Our expertise ensures these innovations align with market needs and regulatory standards, enhancing patient care and operational efficiency while driving growth in the rapidly evolving healthcare technology landscape.

Stone Transformation helps our clients navigate the complexities of the market, optimizing risk management, and enhancing member satisfaction. We leverage data analytics and strategic insights to improve product offerings, streamline operations, and ensure regulatory compliance, helping payers adapt to industry changes and drive sustainable growth.

We excel at delivering bespoke solutions to enhance operational efficiencies, patient care, and financial performance. We focus on strategic planning, process optimization, and technology integration, empowering providers to excel in today’s dynamic healthcare environment while prioritizing patient outcomes and satisfaction.

Stone Transformation’s consultants excel in the Healthcare sector, offering strategic insights and operational excellence to hospitals, care providers, and health systems. We specialize in improving patient care, operational efficiency, and technological integration, adapting to the ever-evolving healthcare landscape. Our approach is patient-centered, focusing on quality, safety, and the seamless delivery of health services.

We specialize in bridging the gap between wellness and scientific innovation, guiding companies in product development, market strategy, and regulatory compliance. Our expertise ensures that consumer health businesses thrive, meeting the demand for accessible, effective, and innovative health and wellness solutions.

We offer comprehensive support in product design, regulatory approval, and market entry, ensuring that clients meet stringent quality and safety standards. Our expertise facilitates the successful launch and scaling of medical device innovations, enhancing patient outcomes and business performance.

We excel at driving drug development and market access strategies, ensuring compliance with global regulatory standards while optimizing the commercial lifecycle of pharmaceutical products. Our strategic guidance supports clients in achieving breakthrough innovations and sustainable market growth.

Life Sciences is our life blood. Our consultants bring unmatched expertise, driving success in biotechnology, pharmaceuticals, and medical devices. We excel in navigating the complex regulatory environments, advancing research and development, and optimizing supply chain efficiency. Our approach combines deep industry knowledge with strategic transformation ownership to facilitate innovation and market penetration. We help clients adapt to evolving scientific advancements and market demands, ensuring sustainable growth and competitive advantage. Our team is dedicated to empowering Life Sciences companies to excel in their missions, transforming challenges into opportunities and leading the way in healthcare innovation.