I’ve been a Scrum Master for five years, but I feel like more companies are moving toward engineering-driven agile processes. Some even expect PMs or engineers to handle scrum duties. Am I overreacting, or should I be upskilling to stay relevant? If so, what should I focus on?

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This is really a stupid idea, because a PM and Scrum master are two different roles altogether.
Combining the role of PM/PO and SM creates a conflict of interest. The PM/PO's role is to maximize the product's value, often requiring prioritization, tough trade-offs and identify value proposition. The SM's job is to ensure scrum practices are followed, fostering a healthy team environment. The only reason why they are doing this is to cut cost.

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Cost cutting is the main driver

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I’ve seen cases where there’s a business case for PMs to be scrum masters and change managers at the time

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True. I’m in big tech and we don’t have scrum masters. As the product manager, I’m expected to do it all split with engineering.

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