The Hidden Barrier to Team Empowerment: The CapEx-OpEx Divide

In the push to empower cross-functional teams, one of the biggest challenges isn't technical, cultural, or even organisational—it's financial. Specifically, the division between capital expenditures (CapEx) and operating expenses (OpEx).

CapEx refers to investments like new machines, buildings and software. You are spending money to be more efficient or effective in the future. OpEx refers to keep-the-lights-on work like salaries, raw materials and maintenance. It is a cost of doing business.

Given an option, companies want to move as much money into CapEx as the market views companies that are investing in the future favourably. But there are rules when it comes to software development on what can be capitalised. R&D (Research and Design) is not considered capitalisable, but development is. The Waterfall (or Water-Scrum-Fall) methodologies make tis really easy for finance teams.

Cross-functional, empowered teams, who do both R&D and development muddy the water, which can be another stumbling block on your transformation. In this week's article I go into more detail on the problem and how some companies are solving it.

This Week’s Updates

Enabling the Team

The Hidden Barrier to Team Empowerment: The CapEx-OpEx Divide by Rory Madden
The CapEx-OpEx distinction, while crucial for financial reporting, shouldn't dictate organisational design. The key lies in finding approaches that satisfy accounting requirements while enabling modern, agile ways of working.

It’s Not You: Your UX Design Job Is Frustrating And Unfulfilling by Bas Wallet
Many UX designers feel stuck in roles where their impact is limited by organisational structures rather than their skills. Recognising these systemic issues is the first step toward creating healthier, more fulfilling design careers.

Product Direction

Outcomes And Operative Phrases by Ari Franklin
Teams often mistake output statements for outcomes, weakening their OKRs and strategy. Using clear operative phrases like “so that” forces a focus on the real behaviour change you want to achieve.

Build Vs Buy In The Age Of AI by Marty Cagan
AI shifts the classic build-versus-buy debate by introducing new options and risks. Leaders must weigh speed, control, and differentiation carefully to decide when AI components should be built in-house or integrated from outside.

Continuous Research

There’s Logic Behind Your Gut Feeling by Nate Sowder
Intuition in design decisions often stems from pattern recognition built through experience. Understanding the logic behind gut feelings helps teams balance instinct with evidence and avoid over-reliance on either.

The MIT Study That Could Change How UX Researchers Use AI by Lawton Pybus
Using ChatGPT in UX research can speed up synthesis and idea generation but also risks reinforcing biases or shallow thinking. Treating it as a collaborator rather than a replacement keeps insights rigorous and grounded.

Continuous Design

Did AI Kill The System’s Thinking Skills In UX? by Kike Peña
As AI automates more design tasks, there’s a risk that systems thinking (the ability to connect patterns and anticipate downstream effects) gets neglected. Sustaining this skill is essential for creating resilient, user-centred experiences.

AI Has Flipped Software Development by Luke Wroblewski
AI-powered experiences require new interaction models where users actively oversee outputs instead of passively observing results. Designing for this shift means building trust, clarity, and effective feedback loops into AI interfaces.

Continuous Development

I Know When You're Vibe Coding by Alex Kondov
“Vibe coding” happens when engineers rely on intuition instead of structure, leading to brittle code and hidden complexity. Recognising the signs and applying discipline helps teams balance creativity with maintainability.

Measuring The Impact Of Early-2025 AI On Experienced Open-Source Developer Productivity by Metr
A study of experienced open-source developers using AI tools shows productivity gains alongside new risks. While AI accelerates coding tasks, concerns remain around accuracy, oversight, and the need for deeper review processes.

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Here Is The Schedule For UXDX’s
Global Product Community Week!

First Events Happening Next Monday 13/10/2025

The countdown is on, Global Product Community Week is just around the corner. Next week, we're bringing you free, community-powered UXDX events from 10 cities worldwide: Boise, Columbus, Dublin, Glasgow, Istanbul, Lisbon, London, New York City, Washington DC and Warsaw!

Expect inspiring real-world product talks and panels tackling today’s challenges (both in-person & online), the latest updates on UXDX 2026 before anyone else, early access to 1:1 mentorship hours with top industry leaders.

Tickets are free, but seats are limited. So make sure to reserve your spot today: Book your FREE ticket here.

FREE COMMUNITY EVENTS 

Check out more upcoming community events 

Video Of The Week
Impact without the Despair: Navigating Complexity with Intent

This week we dive into Niall O’Kelly’s (Director Experience Design, Adidas) insightful talk, Impact Without the Despair: Navigating Complexity With Intent. In fast-moving teams, complexity isn’t a bug, but it’s a feature. Niall shares practical strategies for staying effective, earning trust, and influencing decisions even when the ground keeps shifting beneath you.

Watch to learn how to bring clarity to the chaos, deliver consistent value without burning out, and work with complexity rather than against it. Whether you’re leading teams, building products, or designing experiences, this session provides actionable guidance for navigating complexity with intent. Check it out below:

The Results of Last Week’s Poll

The question: Do you have an Enabling Team structure in your organisation?

Last week’s poll asked whether organizations have an Enabling Team structure in place. Just over a third (37%) report having one that works well, while 14% have an Enabling Team but find it ineffective. Almost half (49%) of respondents say they don’t have any Enabling Team at all.

This highlights a common challenge in scaling product organizations: creating dedicated teams that support Stream Teams with processes, tools, and guidance. Where they exist and work well, they can dramatically increase team efficiency and alignment. Where they’re missing or ineffective, teams may struggle with consistency, roadblocks, and lost focus.

If you want to explore practical ways to clarify roles, strengthen support structures, and create the conditions for high-performing teams, my “From a Team of Functions to a Cross-Functional Team” course in Dublin on the 15th of October provides hands-on strategies to enable your teams to deliver greater impact.