by Gary Worthington, More Than Monkeys

In the last article we looked at the challenges that derail many transformations. Most of those challenges were written from the perspective of big enterprises. But what about small and medium-sized enterprises (SMEs)? Can they realistically adopt a Product Operating Model, or is this just another corporate buzzword that doesn’t apply outside of the Fortune 500?

The truth is that SMEs are often better placed than large organisations to make the shift. They have fewer layers of governance, less legacy to untangle, and a culture that is usually more entrepreneurial. The challenge isn’t scale; it’s knowing which parts of the model to adopt and how to implement them without drowning in process.

Start with value, not structure

The temptation is to start with frameworks. Someone will point to Spotify’s tribes and squads or ING’s agile model and suggest copying it wholesale. That’s a mistake. SMEs don’t need tribes and chapters. They need clarity on what their products are, why they matter, and who owns them.

Define products in terms of customer value or business outcomes. For a SaaS startup that might be “onboarding,” “billing,” and “core product experience.” For a services business it might be “customer acquisition,” “delivery,” and “support.” Keep it simple and make sure everyone can understand it.

Build long-lived teams, even if they’re small

An SME might not have the headcount for large, fully cross-functional squads. That doesn’t matter. What matters is that each product has a stable home. Even if the same group of people wears multiple hats, they should stay with the product over time so that context isn’t lost.

Continuity beats scale. A small team that owns outcomes is more effective than a rotating cast of specialists delivering features for whoever shouts loudest.

Fund products, not projects

SMEs often have more flexible budgeting than enterprises, but they still fall into project thinking. Funding gets allocated per initiative, and once the initiative is delivered, attention shifts elsewhere.

A better approach is to set aside a standing budget for each product line. It doesn’t need to be complex. In a ten-person company that might mean agreeing that two people will always be focused on onboarding and retention. The point is that the product has ongoing investment, not stop-start bursts of attention.

Make discovery a habit, not a phase

In smaller companies, discovery can easily be skipped because “we already know what customers want.” That confidence can be dangerous. Even in SMEs, products fail when assumptions go untested.

Discovery doesn’t need a big research department. It can be as simple as talking to five customers a week, running a quick prototype, or A/B testing a landing page. The important thing is to build learning into the rhythm of the team rather than treating it as an occasional exercise.

Keep metrics lightweight but meaningful

Enterprises often smother themselves with dashboards. SMEs go to the other extreme and operate on gut feel alone. The right balance is a small set of outcome metrics that tell you if the product is delivering value.

Pick two or three that really matter. For a SaaS product it might be trial-to-paid conversion, churn, and support tickets. For a retail business it might be repeat purchase rate and basket size. Don’t overcomplicate it.

Leadership means clarity, not control

In SMEs the founder or CEO is often deeply involved in product decisions. That’s fine, but the role needs to shift from dictating solutions to setting clear goals and letting teams figure out how to achieve them.

The best SME leaders articulate the outcomes they want

“increase activation by 20%,” “reduce support load by half”

and then trust their teams to experiment. This creates space for learning while keeping everyone aligned.

Borrow support only where you need it

Most SMEs don’t have the luxury of separate platform or enabling teams. But you can still think in those terms. Ask: what work keeps dragging product teams away from solving customer problems? Common examples are infrastructure, compliance, or analytics. Where those become bottlenecks, consider outsourcing, automation, or lightweight internal support.

The goal is to keep product teams focused on outcomes, not buried in plumbing.

Bringing it together

For SMEs the Product Operating Model doesn’t need to be grand or complex. It’s about three simple shifts:

1. Define products in terms of customer value.
2. Give each product a stable home through long-lived teams and ongoing funding.
3. Build discovery, delivery, and measurement into the team’s everyday rhythm.

Get those right and you don’t need tribes, chapters, or portfolio boards. You’ll have a working product operating model that fits your size and lets you scale without chaos.

Next in the series

We’ll wrap up with case studies and playbooks; practical tools and examples that show how this works on the ground.