Vertical Missions over Functional Silos
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Vertical Missions over Functional Silos

Principle

Structure is a product decision. It either accelerates value delivery—or it gets in the way.

Many organisations structure teams around what people do—frontend, backend, product management, design. This can be more efficient, easier to manage, and simpler to scale. But it rarely reflects why those people are there: to create value. Product is not a series of siloed stand-ups.

Organising around why they exist—the outcomes they own and the problems they solve, is often more effective, better for growth, and more aligned with how modern products actually succeed. Product is a team sport.

When teams are grouped by function but work is organised by feature or initiative, you get a tangle of handoffs, misalignment, and duplicated effort. Everyone’s busy — Jira boards full, stand-ups chatty — but stepping back, it doesn’t feel like you’re making progress. People get frustrated, context gets lost, and delivery becomes a game of assigned tasks and missed milestones.

Instead, we get better results when we structure teams around Vertical Missions—outcomes that matter, owned end-to-end by a cross-functional team. They don’t just ship things — they move the needle.


Your Team Is an Engine

Structure is like your product engine. It’s how you convert effort into forward motion.

  • Tractor is built for slow, powerful, reliable work
  • Porsche is built for speed, agility, and precision
  • Tesla is built for quiet efficiency and instant acceleration

And like real engines, you sometimes just need a gear shift (e.g. better autonomy), sometimes a tune-up (e.g. clearer goals), and sometimes a complete rebuild.

Change has a cost — coordination, uncertainty, people’s energy. It’s probably not worth doing an engine change if you’re just driving to the shops. But if you’re heading into a high-stakes race — or dragging a trailer up a mountain — it probably is. Your team structure should reflect and adapt to what kind of race you're running.


What org models could we use?

If you’re leading product or engineering, these are your levers. There’s no perfect model—but each suits a different challenge. Here’s a summary of the most common product delivery structures:

🔧 Functional Silos organised by discipline: product, engineering, design, data. Great for early-stage teams, deep craft development, hiring - however challenge of handoffs, lack of end-to-end ownership, fragmented goals

🧬 Domain-Oriented Design (DDD) aligned to technical/product domains (bounded contexts). Great for complex systems, clear service boundaries however challenge of over-optimisation around tech rather than users

🏗️ Platform / Enablement Teams that build internal products or infrastructure for others. Great for shared services, scaling delivery, internal reuse however challenge of unclear demand signals, risk of drift from user value

🧠 Communities of Practice (CoP) formed around common disciplines (PM, UX, Data). Great for quality, consistency, shared learning however challenge of acting like shadow management layers

🌍 Hub & Spoke where “hub” owns tools/strategy; “spokes” deliver in business units or geographies. Great for global/local product balance, regional variation however challenge of slow decision-making, strategy disconnects

📈 Value Stream Mapping where teams formed around end-to-end flow from idea → delivery → value. Great for Lean/Agile transformation, process optimisation however challenge of difficult to sustain without cultural change

🎯 OKR-Led Pods where teams form around specific quarterly OKRs rather than fixed product areas. Great for innovation, fast-moving priorities however challenge of lack of continuity, onboarding burden, knowledge loss

🚀 Dual Operating Model with split between “run the business” and “change the business” teams. Great for mature orgs with legacy systems, transformation agendas however challenge of siloed mentalities, conflicting incentives


Ledgerly: Reshaping the Engine

Let’s take our fictional fintech scale-up, Ledgerly, and show how this works in practice. They offer AI-powered accounting and tax automation for small businesses, growing fast across UK, EU, and US.

Current Org Setup

  • Product Team – Centralised, split by initiative
  • Frontend / Backend Engineering Teams – Aligned by tech, not outcomes
  • Design & Research – Central team, lightly embedded
  • Data Science – Standalone, used per project
  • Infrastructure – CI/CD, hosting, monitoring
  • Delivery Managers – Spread across projects

Result?

Activity everywhere, but progress feels slow. Teams are busy, but outcomes aren’t clear. Frustration is growing. Priorities change too often, and no team truly owns the result.

So they changed the engine…

Ledgerly restructured into Vertical Mission Teams aligned to real customer and business goals.

New Mission Teams

  • 📄 Compliance & Localisation Owns UK/EU VAT, filings, and tax rules Q2 Goal: Reduce customer filing errors by 30%
  • 🤖 Smart Bookkeeping Automates reconciliation, categorisation, and insights Q2 Goal: 80% of transactions auto-classified
  • 🌍 US Expansion Launch US product with IRS-ready workflows Q2 Goal: Deliver US pilot with 50 live customers
  • 💸 Invoicing & Payments Help customers get paid faster and track cash flow Q2 Goal: Reduce invoice-to-cash cycle by 20%
  • 🚀 Onboarding & Activation Accelerate time to value for new users Q2 Goal: 60% of users activate within 7 days
  • 🔧 Core Platform Maintain infrastructure, billing, auth, observability Q2 Goal: 99.99% uptime and faster deploy cycles
  • 📊 Insights & Experimentation Build shared analytics and A/B testing capabilities Q2 Goal: Run 10 experiments with measurable impact

Each team is cross-functional—PM, engineers, design, data—and owns discovery, delivery, and improvement. Communities of Practice and Platform teams support from the side. They didn’t just change reporting lines. They changed ownership, accountability, and direction.


However...

No structure is perfect. Each model comes with trade-offs. You might combine several, or evolve over time.

Here’s where other models shine:

  • Functional Silos → best when building foundational craft or early-stage focus
  • Platform Teams → best when internal scaling or dev velocity is key
  • OKR Pods → best for high-priority, fast-shifting strategic bets
  • Hub & Spoke → best for balancing central strategy and local needs
  • DDD → best in complex systems where clarity of ownership matters
  • Dual Operating Model → best when transformation is required alongside stability

So yes—we mostly value Vertical Missions over Functional Silos. But above all, we focus on Value Over Everything.


More reading?


Over to you...

What kind of engine are you running right now, and is it still built for the race you're in?

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