The Profit vs. Purpose Dilemma in Product Development, According to Janna Bastow

In a recent LinkedIn post, Janna Bastow delves into the inherent tension product teams face when balancing genuine problem-solving with the imperative to generate profit. Her observations, sparked by a conversation with a professional working on critical infrastructure and food security projects, highlight a systemic challenge within corporate structures.

The Core Conflict: Profitability vs. Impact

Bastow shares a poignant observation from her contact, who noted the limitations faced by initiatives aimed at solving real-world problems. According to this individual, as quoted by Bastow:

“As long as solving these problems doesn’t get in the way of making money, we can do them. But as soon as there’s a binary choice, sorry, we’re not going to do that stuff anymore.”

This statement, Bastow argues, encapsulates a pervasive issue that extends beyond highly impactful, non-profit-driven sectors into the everyday world of Software as a Service (SaaS). She points out that this isn’t necessarily a flaw in individual teams but a reflection of the underlying incentive systems.

Systemic Incentives and the Role of Capital

Bastow elaborates on the structural reasons behind this conflict, suggesting that companies are fundamentally designed to serve capital. This, in turn, shapes the incentives for individuals working within these organizations, whether they consciously recognize it or not.

She states:

“The incentive system isn’t broken by accident. It’s working exactly as designed. Companies are structured to serve capital, and the people inside them are incentivized accordingly, whether they realize it or not.”

This perspective reframes the struggles of product managers who advocate for solutions based on evidence and user needs, only to be overruled. As Bastow highlights:

“The product people doing evidence-based discovery and getting overruled aren’t failing. They’re bumping up against a system that was never built to optimize for what they’re optimizing for.”

Navigating the Tension

Bastow’s analysis suggests that understanding this systemic tension is crucial for product professionals. It’s not about individual failure but about recognizing the constraints imposed by a business model designed primarily for financial returns. The challenge, therefore, lies not just in identifying problems but in finding ways to align their solutions with the profitability requirements of the business, or in advocating for a shift in how those priorities are set.

The core takeaway from Bastow’s post is a call to recognize that the perceived limitations in addressing significant problems often stem from the very architecture of how businesses operate and are incentivized. She concludes by posing a question to her audience, prompting reflection on where this tension is most keenly felt in their own work.