Designing A Product Group
By Ilia Pavlichenko
This whitepaper presents a practical, repeatable algorithm for designing a product group — a semi-autonomous organisational unit responsible for the end-to-end creation, development, and financial performance of a product family. The method is grounded in the multidimensional
organisational design of Russell Ackoff and the principles introduced in Creating Agile Organizations .
The paper demonstrates the full design process using a real case of establishing the Daily Banking Product Group in a large financial organisation. The algorithm starts from defining the mission and essential parts of the unit, identifies the organisational capabilities required for strategic differentiation, and progressively narrows the scope of the product group by analysing:
- frequency and specificity of functions and components (based on Transaction Cost Economics),
- operational dependencies (using James Thompson’s framework),
- criticality and uncertainty of supporting functions,
- leadership models suited for both product and line management,
- functional coupling between units (based on axiomatic design),
- and the feasibility of forming Value Areas and cross-functional teams.
This structured approach made it possible to design a product group that balances agility and
scale, minimises transactional and coordination costs, and increases the organisation’s ability
to deliver value end-to-end.
The final design for Daily Banking includes:
- two types of cross-functional teams (Digital Core and Integration Cluster),
a Marketing & Sales shared capability, - IT Security as a matrix-coordinated but independent control function,
- and a Triad Leadership model, which proved the most effective for managing diverse
technical and commercial units.
The result is a coherent organisational architecture where strategy, structure, capabilities, and
flow are aligned, enabling faster product delivery and greater adaptability.
Download The Full White Paper
Download: Designing A Product Group.