A recent PLM Insight discussing who should own PLM within an organization to help PLM escape the engineering cage sparked a lively and insightful conversation online. Several contributors aligned with a previous article I wrote on PLM ownership (PLM Insight: Who Should Own PLM? Engineering, IT, or Someone Else?), agreeing that — given the enterprise-wide scope of PLM — it should be governed by a cross-functional PLM council. Others, however, argued that ownership should rest with the CEO.

In this article I want to explore the distinction between ownership and leadership in the context of PLM and discuss the most effective governance model for PLM in an organization to ensure an enterprise-wide adoption. 

What is Ownership in the Context of PLM?

In a business context, ownership is not about legal possession; it is about accountability and authority over a specific system or process. In this case, ownership of PLM involves:

• Accountability for performance, compliance, and business outcomes
• Decision-making authority over scope, reach, functionality, design, configuration, prioritization, and evolution
• Process integrity, ensuring alignment with business goals and regulatory standards
• Cross-functional coordination between all functional areas of the business that may be involved in and affected by PLM

PLM ownership requires an individual or a group who has a deep understanding of the entire business and its needs and can define what PLM, both processes and technology, has to be able to do to meet those needs. This role and responsibility is best served and met by the part of the organization who uses PLM, i.e. the different functional areas of the business itself. 

What is Leadership in the Context of PLM?

Leadership, in contrast, is about vision, influence, empowerment, and removing obstacles. A leader sets direction, aligns stakeholders, and champions the importance of PLM within the broader business and digital strategy. It involves:

• Establishing a compelling vision for digital product innovation
• Advocating for the resources, culture, and change required for PLM adoption
• Inspiring, encouraging (and sometimes maybe even forcing) collaboration across silos
• Driving alignment between PLM and business strategy

A leader may not manage day-to-day operations of the PLM initiative – that is best done by a PLM project and/or solution manager (more about that in a separate PLM Insight) – but plays a vital role in removing barriers, securing buy-in, and ensuring continuous progress.

So Should the CEO Own PLM?

On the surface it may seem logical to assign PLM ownership to the CEO. After all, PLM impacts enterprise competitiveness, innovation, and profitability. But when we look at the core responsibilities of a CEO — strategic leadership, business performance oversight, governance, culture, and stakeholder management — it becomes clear that the CEO is not a suitable operational owner of PLM.

The CEO is too far removed from the daily cross-functional coordination, process detail, and system-level decision-making required to own PLM effectively. Instead, the CEO’s role is to champion PLM, support its importance at the highest levels, assign a leader, and empower the right team to drive it forward.

The Case for a Cross-Functional PLM Council with an Executive Leader

Given the broad reach of PLM, ownership is best assigned to a cross-functional PLM council composed of key stakeholders from the different functional areas involved in product development, manufacturing, and support. This council ensures that PLM is adopted across the entire company, reflects enterprise priorities and meets and sometimes maybe even balances competing needs of the different functional areas.

Leadership is best assigned to a company executive with enterprise-wide responsibility. There are a few different options, depending on the maturity and priorities of an organization: 

• The COO may serve as a natural leader, given his or her oversight of operational efficiency and process execution.
• The CDO or Chief Digital Officer is well-positioned to lead PLM in alignment with broader digital transformation initiatives.
• The CIO can provide leadership and critical insight regarding system integration, infrastructure, and data governance.

By separating ownership, i.e. accountability for execution from leadership, i.e. direction and influence, organizations can achieve both strategic alignment and operational excellence in their PLM initiatives across the entire organization.

Conclusion

PLM is too important, far reaching and complex to be owned by a single functional area or individual. While the CEO should support and champion PLM at the strategic level, the operational ownership belongs with a cross-functional council that is sponsored and led by the COO, CDO, or CIO depending on the organization’s maturity and priorities.

This organization ensures enterprise-wide adoption as well as effective governance of PLM and fosters the cross-functional reach and collaboration required to unlock the full value of product lifecycle management.