--- title: Stop Giving Product a Performance Pass description: "For CEOs and GMs of software companies: product is part of the revenue engine, not support. Give it decision rights, measurable outcomes and a funding cadence." image: https://www.drcpo.com/hubfs/blog-product-performance-pass.jpg --- [Skip to content](https://www.drcpo.com/blog/stop-giving-product-a-performance-pass#main-content) [![DrCPO LOGO Small Color](https://www.drcpo.com/hs-fs/hubfs/DrCPO%20LOGO%20Small%20Color.png?width=797&height=262&name=DrCPO%20LOGO%20Small%20Color.png)Homepage](https://www.drcpo.com/) - [The Problem](https://www.drcpo.com/the-problem) - [Services](https://www.drcpo.com/services) - [Why DrCPO](https://www.drcpo.com/why-drcpo) - [Education](https://www.drcpo.com/education) - [Insights](https://www.drcpo.com/blog) [Contact](https://www.drcpo.com/contact) - [The Problem](https://www.drcpo.com/the-problem) - [Services](https://www.drcpo.com/services) - [Why DrCPO](https://www.drcpo.com/why-drcpo) - [Education](https://www.drcpo.com/education) - [Insights](https://www.drcpo.com/blog) [Contact](https://www.drcpo.com/contact) ![An executive review: a screen comparing what product shipped with what moved revenue](https://www.drcpo.com/hs-fs/hubfs/blog-product-performance-pass.jpg?width=1536&height=1024&name=blog-product-performance-pass.jpg) ACADEMIC & TEACHING (Practice) Product Operating Model & Accountability (Pillar) CTO/VP Eng (Audience) # Stop Giving Product a Performance Pass ![Ken Pulverman](https://www.drcpo.com/hs-fs/hubfs/ken-pulverman-avatar.jpg?width=48&height=48&name=ken-pulverman-avatar.jpg) Ken Pulverman January 18, 2026 If your company sells software (or leverages software to make money), Product is not “support.” It’s part of the revenue engine and a fiduciary responsibility. The fix is to **treat Product like a responsibility center**: define decision rights, define measurable outcomes, and run a governance cadence that forces stop/start decisions based on evidence. ([OpenStax, 2019;](https://www.drcpo.com/blog/-temporary-slug-dfa3ff4c-4eea-445d-89ba-ae99feecbf3d/%20https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers)[Rogers & Blenko, 2006](https://hbr.org/2006/01/who-has-the-d-how-clear-decision-roles-enhance-organizational-performance)) **What to do (minimum viable reset):** 1. **Decision rights map** for product bets (who recommends / inputs / agrees / decides / performs). ([Rogers & Blenko, 2006](https://hbr.org/2006/01/who-has-the-d-how-clear-decision-roles-enhance-organizational-performance)) 2. **Outcome scorecard** that ties product work to business outcomes and customer outcomes. ([Kaplan & Norton, 1992](https://www.drcpo.com/blog/-temporary-slug-dfa3ff4c-4eea-445d-89ba-ae99feecbf3d/%20https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2)) 3. **Outcome cadence**: weekly learning + monthly outcomes + quarterly portfolio funding decisions. ([McKinsey, 2023)](https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/the-bottom-line-benefit-of-the-product-operating-model) Want the full playbook + a completed vendor-ready RFI + a blank RFI template? [**Book a working session**](https://www.drcpo.com/contact) with DrCPO.com and/or get the toolkit on Substack. **What this looks like in the business (symptoms)** You’ll usually see 6–10 of these at once: - Product success is defined as **shipping** (roadmap throughput) instead of outcome movement. - Requests arrive as **solutions** (“build X”), and Product is expected to comply—not evaluate value. - Exec reviews celebrate “delivered” even when adoption/retention/revenue didn’t move. - Decision-making is slow because “everyone gets a vote,” so Product becomes the compromise function. ([Rogers & Blenko, 2006](https://hbr.org/2006/01/who-has-the-d-how-clear-decision-roles-enhance-organizational-performance)) - Teams optimize output metrics and unintentionally distort behavior (classic metrics failure modes). ([Manheim et al., 2023](https://pmc.ncbi.nlm.nih.gov/articles/PMC10591122/)) **How it impacts revenue and competitiveness** When Product gets a “pass,” you get compounding damage: - **Misallocated spend:** funding continues without proof, because there’s no outcome portfolio discipline. ([McKinsey, 2023a](https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/the-big-product-and-platform-shift-five-actions-to-get-the-transformation-right%20\)%20McKinsey%20%26%20Company)) - **Slow learning rate:** fewer validated decisions per quarter → slower growth and weaker differentiation. ([Thoughtworks, 2025](https://www.thoughtworks.com/en-us/insights/blog/agile-engineering-practices/from-features-to-outcomes-how-product-teams-can-deliver-real-business-value)) - **Accountability inversion:** engineering gets blamed for business outcomes; Product claims “we shipped what was asked.” - **Operational drag:** unclear ownership increases handoffs and delays. ([McKinsey, 2024](https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/what-makes-product-teams-effective)) **Why it happens (root causes)** This pattern is predictable when: 1. **Decision rights are implicit**, so Product can’t say “no,” can’t stop work, and can’t enforce tradeoffs. ([Rogers & Blenko, 2006](https://hbr.org/2006/01/who-has-the-d-how-clear-decision-roles-enhance-organizational-performance); [BCG, 2021](https://www.bcg.com/industries/public-sector/decision-rights-using-ovis-framework)) 2. **Product is treated as a cost center**, but expected to deliver profit-center outcomes (phantom accountability). A responsibility system must match evaluation to controllable decisions. ([OpenStax, 2019](https://www.drcpo.com/blog/-temporary-slug-dfa3ff4c-4eea-445d-89ba-ae99feecbf3d/%20https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers)) 3. **Goals exist without measurement hygiene**, creating “scoreboard theater” and perverse incentives. ([Kaplan & Norton, 1992](https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2); [Manheim et al., 2023](https://pmc.ncbi.nlm.nih.gov/articles/PMC10591122/)) 4. **Teams lack outcome ownership**, so product work fragments across silos. Stream-aligned teams are designed to own outcomes end-to-end. ([Skelton & Pais, n.d.](https://teamtopologies.com/key-concepts)) **What you have to do (public, practical steps)** **Step 1 — Declare Product a revenue engine *and* define the accountability model** Write a one-page “Operating Agreement” that answers: - What outcomes Product owns (business + customer outcomes) - What decisions Product can make without escalation - What evidence is required before funding/priority decisions Use goals that improve performance (specific, challenging, measurable) and avoid vague “do more innovation” mandates. ([Locke & Latham, 2002](https://med.stanford.edu/content/dam/sm/s-spire/documents/PD.locke-and-latham-retrospective_Paper.pdf)) **Step 2 — Install decision rights (fast)** Use a RAPID-style map: - **Recommend:** PM/GM for the product area - **Input:** Sales/CS/Eng/Finance - **Agree:** Security/Legal/Platform (only when needed) - **Decide:** CPO for product bets; CEO only for portfolio-level conflicts - **Perform:** the cross-functional product team This reduces decision latency and makes accountability real. ([Rogers & Blenko, 2006](https://hbr.org/2006/01/who-has-the-d-how-clear-decision-roles-enhance-organizational-performance)) **Step 3 — Replace roadmaps with “Bets + Measures”** Every roadmap item must include: - Customer/problem + target segment - Hypothesis - Leading indicators + lagging indicator (baseline + target) - Decision rule (what would make us stop / change / double down) Outcome orientation is now standard guidance for digital programs because “shipping” is not “done.” ([HBR, 2017;](https://hbr.org/2017/02/you-need-to-manage-digital-projects-for-outcomes-not-outputs)[Atlassian, n.d.](https://www.atlassian.com/software/jira/product-discovery/resources/handbook/outcomes)) **Step 4 — Build the product scorecard (business + customer + technical health)** A practical structure: - **Business outcomes:** revenue expansion, retention drivers, conversion, margin - **Customer outcomes:** time-to-value, activation, task success, satisfaction - **Technical health:** delivery performance and reliability as enabling measures, not “success.” ([DORA, 2024)](https://dora.dev/research/2024/dora-report/) Balanced Scorecard is a proven framing device to avoid “one metric to rule them all.”  ([Kaplan & Norton, 1992](https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2)) **Step 5 — Run an operating cadence that forces accountability** - **Weekly:** product bet review (evidence, learning, next decision) - **Monthly:** outcome review (what moved, what didn’t, what we stopped) - **Quarterly:** portfolio review (funding shifts, kill list, strategic pivots) Mature product operating models explicitly tie teams to business outcomes end-to-end. ([McKinsey, 2023b](https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/the-bottom-line-benefit-of-the-product-operating-model)) **Step 6 — Use OKRs as a measurement tool, not a moral judgment** OKRs are meant to be measurable, public, and graded; low grades are data—not a crime. ([Google re:Work, n.d.)](https://rework.withgoogle.com/intl/en/guides/set-goals-with-okrs%20\)%20Rework) **Our approach (DrCPO.com offer)** We help CEOs/CPOs/CTOs make Product **revenue-accountable without creating bureaucracy**: - Decision rights + governance reset (fast, explicit, enforceable) - Outcome scorecard + baselines + review pack - Roadmap “bets + measures” standard + decision log - Capability transfer so the system runs without consultants **Call to action:** **Book a working session** + get the full toolkit on Substack (**$25/mo**) with a completed RFI + blank RFI + vendor scorecard.   **References** Atlassian. (n.d.). *Outcomes vs output: Driving value in product development*. [https://www.atlassian.com/software/jira/product-discovery/resources/handbook/outcomes](https://www.atlassian.com/software/jira/product-discovery/resources/handbook/outcomes?utm_source=chatgpt.com) Boston Consulting Group. (2021). *Clarifying decision rights with the OVIS framework*. [https://www.bcg.com/industries/public-sector/decision-rights-using-ovis-framework](https://www.bcg.com/industries/public-sector/decision-rights-using-ovis-framework?utm_source=chatgpt.com) DORA. (2024). *Accelerate State of DevOps Report 2024*. [https://dora.dev/research/2024/dora-report/](https://dora.dev/research/2024/dora-report/?utm_source=chatgpt.com) Google re:Work. (n.d.). *Set goals with OKRs*. [https://rework.withgoogle.com/intl/en/guides/set-goals-with-okrs](https://rework.withgoogle.com/intl/en/guides/set-goals-with-okrs?utm_source=chatgpt.com) Harvard Business Review. (2017). *You need to manage digital projects for outcomes, not outputs*. [https://hbr.org/2017/02/you-need-to-manage-digital-projects-for-outcomes-not-outputs](https://hbr.org/2017/02/you-need-to-manage-digital-projects-for-outcomes-not-outputs?utm_source=chatgpt.com) Kaplan, R. S., & Norton, D. P. (1992). *The Balanced Scorecard—Measures that drive performance*. *Harvard Business Review*. [https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2](https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2?utm_source=chatgpt.com) Locke, E. A., & Latham, G. P. (2002). *Building a practically useful theory of goal setting and task motivation: A 35-year odyssey*. [https://med.stanford.edu/content/dam/sm/s-spire/documents/PD.locke-and-latham-retrospective\_Paper.pdf](https://med.stanford.edu/content/dam/sm/s-spire/documents/PD.locke-and-latham-retrospective_Paper.pdf?utm_source=chatgpt.com) Manheim, D., Garrabrant, S., & Snyder-Beattie, A. (2023). *Building less-flawed metrics: Understanding and creating metrics in complex systems*. [https://pmc.ncbi.nlm.nih.gov/articles/PMC10591122/](https://pmc.ncbi.nlm.nih.gov/articles/PMC10591122/?utm_source=chatgpt.com) McKinsey & Company. (2023a). *The big product and platform shift: Five actions to get the transformation right*. [https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/the-big-product-and-platform-shift-five-actions-to-get-the-transformation-right](https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/the-big-product-and-platform-shift-five-actions-to-get-the-transformation-right?utm_source=chatgpt.com) McKinsey & Company. (2023b). *The bottom-line benefit of the product operating model*. [https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/the-bottom-line-benefit-of-the-product-operating-model](https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/the-bottom-line-benefit-of-the-product-operating-model?utm_source=chatgpt.com) McKinsey & Company. (2024). *What makes product teams effective?* [https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/what-makes-product-teams-effective](https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/what-makes-product-teams-effective?utm_source=chatgpt.com) OpenStax. (2019). *9.3 Describe the types of responsibility centers*. In *Principles of Managerial Accounting*. [https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers](https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers?utm_source=chatgpt.com) OpenStax. (2019). *9.4 Describe the effects of various decisions on performance evaluation of responsibility centers*. In *Principles of Managerial Accounting*. [https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers](https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers?utm_source=chatgpt.com) Rogers, P., & Blenko, M. W. (2006). *Who has the D? How clear decision roles enhance organizational performance*. *Harvard Business Review*. [https://hbr.org/2006/01/who-has-the-d-how-clear-decision-roles-enhance-organizational-performance](https://hbr.org/2006/01/who-has-the-d-how-clear-decision-roles-enhance-organizational-performance?utm_source=chatgpt.com) Skelton, M., & Pais, M. (n.d.). *Key concepts (Team Topologies)*. [https://teamtopologies.com/key-concepts](https://teamtopologies.com/key-concepts?utm_source=chatgpt.com) Thoughtworks. (2025). *From features to outcomes: How product teams can deliver real business value*. [https://www.thoughtworks.com/en-us/insights/blog/agile-engineering-practices/from-features-to-outcomes-how-product-teams-can-deliver-real-business-value](https://www.thoughtworks.com/en-us/insights/blog/agile-engineering-practices/from-features-to-outcomes-how-product-teams-can-deliver-real-business-value?utm_source=chatgpt.com) ## Share this post [mailto:https%3A%2F%2Fwww.drcpo.com%2Fblog%2Fstop-giving-product-a-performance-pass](mailto:https%3A%2F%2Fwww.drcpo.com%2Fblog%2Fstop-giving-product-a-performance-pass) ## Keep reading ### [![Run: the eight-step AI-powered product management system](https://www.drcpo.com/hs-fs/hubfs/pm-model-run.png?width=1600&height=900&name=pm-model-run.png) CPO/Head of Product (Audience) AI in Product Management (Pillar) CEO/GM (Audience) The Run Version of the New Product Management Model: The Full AI-Powered System](https://www.drcpo.com/blog/run-product-management-model) ### [![Walk: the five-step structured product learning loop](https://www.drcpo.com/hs-fs/hubfs/pm-model-walk.png?width=1600&height=900&name=pm-model-walk.png) CPO/Head of Product (Audience) AI in Product Management (Pillar) CEO/GM (Audience) The Walk Version of the New Product Management Model: A More Structured Product Learning Loop](https://www.drcpo.com/blog/walk-product-management-model) [![](https://www.drcpo.com/hs-fs/hubfs/DrCPO%20LOGO%20Small%20Color-1.png?width=797&height=262&name=DrCPO%20LOGO%20Small%20Color-1.png)](https://www.drcpo.com) - [The Problem](https://www.drcpo.com/the-problem) - [Services](https://www.drcpo.com/services) - [Why DrCPO](https://www.drcpo.com/why-drcpo) - [Education](https://www.drcpo.com/education) - [Insights](https://www.drcpo.com/blog) ##### Some of the Product Management thought Leaders we are following: [🌐 of PM](https://www.drcpo.com/pm-thoughtleaders) --- Privacy Policy · Legal · © 2026 DrCPO. All rights reserved. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Ken Pulverman", "url" : "https://www.drcpo.com/blog/author/ken-pulverman" }, "dateModified" : "2026-01-20T07:06:01.655Z", "datePublished" : "2026-01-18T04:51:47.000Z", "headline" : "Stop Giving Product a Performance Pass", "image" : [ "https://www.drcpo.com/hubfs/blog-product-performance-pass.jpg" ], "mainEntityOfPage" : { "@id" : "https://www.drcpo.com/blog/stop-giving-product-a-performance-pass", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.drcpo.com/hubfs/DrCPO%20LOGO%20Small%20Color-1.png" }, "name" : "DrCPO" } } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.drcpo.com/#org", "@type" : "Organization", "description" : "Fractional CPO consulting and product management education for B2B software companies and business schools.", "founder" : { "@id" : "https://www.drcpo.com/#ken" }, "logo" : "https://www.drcpo.com/hubfs/DrCPO%20LOGO%20Small%20Color.png", "name" : "DrCPO", "url" : "https://www.drcpo.com/" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.drcpo.com/#ken", "@type" : "Person", "image" : "https://www.drcpo.com/hubfs/ken-pulverman-portrait.jpg", "jobTitle" : "Fractional Chief Product Officer", "knowsAbout" : [ "Product management", "AI in product management", "B2B software product strategy", "Product operating models" ], "name" : "Ken Pulverman", "url" : "https://www.drcpo.com/about", "worksFor" : { "@id" : "https://www.drcpo.com/#org" } } ```