Are Product Owners Empowered to Make Decisions Regarding Their Area of Responsibility?

In any growing startup or SME, the product owner (PO) holds a pivotal role, acting as a bridge between various business stakeholders and the tech team. However, a persistent question remains: are product owners truly empowered to make decisions in their area of responsibility? From my experience working with scaling companies, this is often where the theory of agile methodologies clashes with the realities of business culture, leadership dynamics, and resource constraints. This article will delve into the nature of PO empowerment, its challenges, and how organisations can better enable their product owners to drive success.

The Ideal Product Owner: More Than a Task Juggler

In agile frameworks like Scrum, the product owner is positioned as a crucial decision-maker, with the responsibility to prioritise backlogs, maximise product value, and align the development team's output with business goals. Ideally, a PO should be more than just a facilitator of tasks; they should be empowered to make strategic decisions that directly impact the product's direction and success.

However, the reality for many product owners, especially in scaling businesses, can be quite different. Often, they face limitations, whether it’s due to organisational culture, unclear authority lines, or even a lack of support from leadership. When POs are not fully empowered, the potential of the product is undermined, and so too is the company’s ability to innovate and scale.

Common Challenges That Undermine Empowerment

Strategic Misalignment

A major hurdle to PO empowerment is when technology and business strategies are misaligned. Product owners often find themselves trapped between the expectations of business stakeholders and the technical limitations of the development team. Without a clear, well-communicated roadmap, they are forced to make reactive decisions rather than proactive ones. This disconnect can lead to resource wastage and missed opportunities, as technology investments fail to contribute to long-term business goals​.

Lack of Seniority and Decision-Making Power

Despite the essential role they play, product owners sometimes find themselves lacking the authority to make impactful decisions. In my conversations with POs, I often hear about frustration over having to defer every significant decision to senior management or business founders. This issue is particularly acute in startups or smaller companies, where senior tech leadership is absent or too thinly spread. As a result, POs become glorified administrators rather than strategic drivers, and their ability to influence the product’s trajectory is severely hampered​.

Internal Politics and Stakeholder Influence

Startups, by their very nature, are fast-paced environments where every team is expected to move quickly. But rapid growth often leads to the rise of silos. POs may struggle to manage conflicting priorities from marketing, sales, and engineering, all of whom have their agendas. Without clear authority, they can easily be caught in a political tug-of-war, diluting the effectiveness of their role.

Empowering the Product Owner: What Needs to Change?

Clarity in Role Definition

One of the most effective ways to empower a product owner is to give them clarity in their role. While it might sound straightforward, the lack of clear role boundaries is a significant issue for many organisations. Product owners need explicit support from leadership that defines not only what they’re responsible for but also what decisions they are empowered to make independently. This alignment between POs and leadership creates a stronger sense of ownership and accountability, fostering more confident decision-making.

In one startup I worked with, the leadership made a deliberate decision to involve the PO in high-level discussions about the company's vision. This not only provided valuable context for the PO but also allowed them to make better, more informed decisions in their day-to-day work. As a result, product development was more cohesive with the company’s long-term goals.

Encouraging Strategic Decision-Making

Beyond operational decisions, product owners should have the opportunity to contribute to the strategic direction of the product. This doesn't mean they need a seat on the board, but they should at least be able to influence the roadmap meaningfully. Startups that empower their POs with a clear product vision—tied directly to business objectives—see greater alignment between teams and more effective prioritisation.

When a PO is empowered to make strategic decisions, they can navigate the balance between business goals and tech capabilities with more agility. This not only enhances productivity but ensures that every feature or improvement is tied to measurable outcomes, reducing resource wastage.

Support and Mentorship

Many product owners, especially in startups, lack mentorship or guidance from more experienced leaders. Without this support, they may struggle to make bold decisions or take calculated risks. Offering POs access to senior leadership, whether in the form of mentoring or regular check-ins with a CTO, gives them the confidence to push boundaries and act as true product leaders. This is particularly important for companies in their scaling phase, where innovation and agility can be the difference between success and stagnation.

I’ve seen firsthand the impact of mentorship on product teams. In one case, a scaling fintech firm appointed a fractional CTO, whose regular one-on-one sessions with the PO not only helped improve decision-making but also fostered a more robust product strategy overall​.

Tools and Resources to Succeed

Finally, empowerment isn’t just about authority—it’s also about resources. If a product owner has the decision-making power but lacks the tools or resources to execute, their ability to make an impact is nullified. Empowered POs are those who have access to the right technology, sufficient development resources, and clear channels of communication with stakeholders. Without these, even the most decisive and strategic POs will struggle to drive their products forward.

Balancing Empowerment with Accountability

Empowerment is a two-sided coin. While POs should have the authority to make decisions, they must also be held accountable for the outcomes. Startups and SMEs must foster a culture where product owners are trusted to make decisions, but also where there is a feedback loop to ensure that these decisions align with the company’s broader goals.

One approach is to set clear, measurable objectives for product development, tied to key performance indicators (KPIs) that reflect both business goals and customer satisfaction. POs should be empowered to pursue these KPIs using the best methods at their disposal, but they should also be responsible for reporting back on progress and adapting based on results.

Conclusion

Empowering product owners to make decisions within their area of responsibility is essential for any organisation aiming to scale effectively. The challenges faced by POs in today’s fast-paced startup environments are often linked to unclear roles, a lack of strategic alignment, and insufficient resources. By addressing these issues, startups can unlock the full potential of their POs, allowing them to act as true leaders who drive product success and business growth. In the end, empowered product owners don't just benefit the product—they are a critical lever for scaling the entire company.