For years, the IT world has operated under the assumption that project funding is the optimal way to invest in technology. We meticulously define scopes, allocate budgets, and track progress against specific deliverables. However, this traditional project-centric model is increasingly out of step with the modern reality of software development, where products, not projects, are the enduring assets. As IT leaders, it’s time we challenged this myth and embraced a more strategic approach: funding our people, who are organized in agile, product-focused teams.
Historically, IT investments were driven by specific, often one-time needs—implementing new infrastructure, upgrading systems, or launching new applications. These were discrete events with clear beginnings and ends, making the project funding model a logical fit. We’d gather requirements, build a plan, secure funding for that specific undertaking, and then transition the outcome to operational teams. This approach served its purpose when technology was largely a support function, delivering distinct capabilities.
The advent of agile methodologies and the pervasive integration of software into core business operations have fundamentally altered this landscape. Today, successful software is rarely a "launch and forget" deliverable. Instead, it’s a product that requires continuous maintenance, enhancement, and adaptation to meet evolving market demands, customer expectations, and technological advancements. Think of the platforms that underpin your company's primary revenue streams or customer engagement channels. These aren't projects; they are vital, ongoing products.
This shift means that demand for the teams working on these products is often perpetual. As a product gains traction and proves its value, demand for new features, integrations, and optimizations tends to grow—a phenomenon sometimes called the "snowball effect" of software. Funding these teams directly, rather than fragmenting funding across a series of disconnected projects, acknowledges this continuous lifecycle and provides a more stable, strategic investment.
When we fund teams instead of projects, we’re fundamentally shifting our focus from the "what" to the "why." We're acknowledging that the people working on these products possess invaluable institutional knowledge, understand the product's nuances, and are best positioned to adapt to changing needs. This people-centric approach provides:
This is akin to how operational functions like HR or sales are funded. Their budgets are based on the ongoing need for their services, not on the completion of discrete tasks. By applying a similar logic to our product development teams, we recognize their essential, continuous contribution to the business.
Here are several key concepts IT leaders should consider:
By adopting a people-centric funding model, we move away from the constraints of traditional project management and embrace a more agile, responsive, and strategically sound approach to IT investment. Ultimately, we ensure our technology teams can effectively deliver ongoing business value.