Product Objectives: OKR Product Management for Exceptional Outcomes

Your guide to getting started with objective-based product management

Success in product management is often determined by a company’s ability to set and achieve strategic goals. But how do you ensure that your product teams are aligned and focused on the most important objectives?

Objective-based product management is a process where a company creates and maintains a product based on specific objectives that the product is meant to achieve. Objectives are merely goals that help you achieve your strategy.

This type of management is often used in companies that make software or other digital products, as it can be more easily amended or updated to meet the specific needs of the customer or user.

Product objectives and key results are a framework for setting measurable goals for a product. OKRs help guide decision-making and measure progress. Product objectives and key results can be tailored to specific products and teams, and can be revised as the product and team evolve.

Key Takeaways

• Align Product Teams & Focus Efforts
  Objectives and Key Results (OKRs) provide a framework for setting measurable goals that align teams and focus efforts on the most important outcomes. OKRs help guide decision-making and measure progress.
• Drive Real Business Impact
  Aligning product teams to company goals through OKRs fosters shared ownership and accountability. Setting the right objectives and key results keeps product teams focused on driving impact.
• Assess OKRs for Data-driven Decisions
  Regularly tracking and assessing progress on OKRs enables data-driven decisions to optimize objectives, key results and product outcomes. Checking in on OKRs helps teams adjust efforts to stay aligned on priorities.

What is an Objective?

Simply, an objective is the outcome or goal that a company or product team wants to achieve. It is important to make sure that objectives are specific, measurable, achievable, relevant, and time-bound.

Objectives:

• Clarify the specific goal or outcome
• Are concise and tangible
• Are action-oriented

Example: Launch an education series on OKRs to help product managers achieve their goals.

What are Key Results?

Key results are benchmarks toward the objective. They are measurable milestones that indicate progress toward the goal. They can be quantified or qualitatively assessed.

Key results:

• Provide measurements of success for the objective
• Are often quantifiable product or business metrics (such as revenue, adoption, or retention) – but can be binary completion milestones
• May include specific milestones within the OKR cycle

Objective: Launch an education series on OKRs to help product managers achieve their goals.

Key Result #1: Pre-launch with 100 PMs on the mailing list.

Key Result #2: 40% of PMs complete the series.

Key Result #3: PMs rate satisfaction an average of 4.5/5.

The Importance of OKR in Product Management

OKR Product Management plays a crucial role in aligning product teams with corporate objectives, emphasizing primary results, and evaluating progress and success across the organization. Imagine a world where product teams are laser-focused on the most important goals and are able to execute their strategies effectively using product okrs.

This dream can be a reality when implementing OKRs in product management. Aligning product teams with company goals ensures that everyone is working towards the same objectives, leading to better collaboration and efficiency. Additionally, focusing on key results allows product teams to:

• Allocate their efforts and resources to the tasks that will yield the highest impact
• Measure progress and success
• Monitor their performance and make data-driven decisions for optimization

Aligning product teams with company goals

A well-aligned product team is like a well-oiled machine, with each part working in harmony to achieve a common goal. Getting product teams on board with company goals is key to a unified effort, fostering greater collaboration and efficiency. Understanding the product feature definition is essential for these teams to work effectively towards their objectives.

For example, improving the customer satisfaction rate could be a key result that the entire organization strives towards. By establishing a shorter OKR cycle for product discovery, teams can focus on achieving each key result within a more manageable time frame. This not only keeps teams motivated, but also helps to maintain momentum as they work towards their objectives.

In the end, aligning product teams with company goals fosters a culture of shared ownership and accountability, driving success across the entire organization.

Focusing on key results for success

Imagine trying to hit a target with a bow and arrow, but you don’t know what the target looks like or where it’s located. Concentrating on key results equates to defining the target and its location, allowing product teams to direct their efforts accurately and boost their chances of success.

Key results for success are:

• Quantifiable, time-constrained milestones or metrics that demonstrate progress towards meeting objectives
• Clearly delineated, including product feature definitions when applicable
• By concentrating on key results, product teams can prioritize their efforts and resources effectively on the most influential tasks.

In turn, this focus on key results helps to ensure alignment between product team OKRs and company OKRs, so everyone is working towards the same goals.

Measuring progress and success

“What gets measured gets managed.” This famous quote by management consultant Peter Drucker highlights the importance of measuring progress and success in any organization. In the context of product management, assessing progress and success enables product teams to monitor their performance and make decisions based on data for optimization.

By aligning product vision with OKRs, product teams can focus on the right objectives and key results, ensuring that the team is moving in the right direction. Leading and lagging indicators in OKRs further help teams set their own objectives and key results, allowing them to assess progress and make necessary adjustments during the product discovery process.

Ultimately, measuring success empowers product teams to continuously improve and drive their products towards excellence.

Why is Objective-based Product Management difficult?

Objectives can be hard to adopt and follow because they require a detailed understanding of the product and its goals. They can also be time-consuming to set up and track. They are not a magical fix for teams lacking clarity and context.

Another challenge in Objectives and Key Results (OKRs) is setting the right level of objectives. The objective must be specific enough to be actionable yet broad enough so that the outcome can deliver value. It's a balance between being so prescriptive that the objective is a project, but not being so vague that a team misinterprets the guidance.

The key to making OKRs work is to track them regularly, using a cadence of check-ins. This helps to keep the company focused and make decisions to stay on track when they grow distracted.

There are five main reasons why OKRs can fail:

• Teams forget about their objectives
• Teams change their objectives halfway through the quarter
• Teams set too many objectives,
• Managers use OKRs to micro-manage their employees
• Everyone does their OKRs differently

Where did OKRs originate?

OKRs originated at Intel in the early 1990s and have since been adopted by a number of other organizations, including Google, Airbnb, and Salesforce. They are typically used by organizations in which employees are held accountable for specific results (e.g. sales or product goals).

Measure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs is a book about performance management system Objectives and Key Results (OKRs). The system is popular in the tech industry, but can be used in any organization.

The book is written by John Doerr, a venture capitalist who helped to introduce OKRs to Google. He describes how using OKRs can help companies measure progress and ensure that everyone is aligned on the team's objectives.

How to get started as a product leader

In order to achieve great things, it is important to set goals that are difficult but not impossible. This will require the team to bring their top performance and push themselves to reach the goal.

If the goal is too hard, the team may burn out and quit. If the goal is too easy, the company may become weak and die.

Identify your objectives

Your objectives are your top priorities. What are the top problems to solve the next quarter, half year, or year? Translate these problems into inspirational outcomes to align the business and team.

Departments and teams come up with their own objectives after you share the company objectives with them. Some teams are likely assigned objectives that product leaders identify as top problems to solve. Here are some tips:

• Every objective – team or department – aligns with the company objectives.
• Focus at each level, narrowing to 3-5 objectives.
• Objectives do not include business as usual work (BAU).
• All objectives are open to all employees.

Identify your key results

Key results are simply what needs to happen to complete the objective, providing a measure for how you will assess progress and impact. Here are tips for creating key results:

• Break the rules: some key results are binary – something just needs to happen in order to complete the objective.
• Assign 3-5 key results to the objective – keep it focused on the most important results and look for ways to merge measures.
• Teams create most of their own key results, reviewing with managers and product leaders.
• Like objectives, key results are open to all employees.

Determine your OKR cycle length

All teams should operate on the same OKR cycle. Most companies typically have two simultaneous OKR cycles: quarterly and annual. Annual cycles for long-term, thematic company guidance, and quarterly cycles are for team goals that adjust to new information or market changes.

Select an OKR SaaS Platform

To effectively share and track your OKRs, the company needs a place to store and share them. A dedicated SaaS Platform for OKRs is best for being transparent and adjustable in real time. You can easily set OKRs in Notion or use a dedicated tool like Productboard.

Objectives Timeline Roadmap Template | Productboard

Communicate a high-level plan of measurable, time-bound goals across different teams over time. This template is ideal for aligning your product organization around outcomes without prescribing specific solutions.

Productboard

Nominate the OKR champion

For the OKR system to work, everyone at the company has to take part. Resistance and procrastination are likely to occur. You will need several cycles to build the organization muscle. It's useful to designate someone as the team or organization's keeper of the OKR cycle and update process.

Check in, score, reflect

Check in with teams on a weekly or monthly basis, updating and reassessing their OKRs. At any time, if they're no longer applicable, explicitly decide to modify or remove the OKRs as a team.

At the end of each cycle, score your performance for each OKR. Reflect on how you did and what that means about the goals you set.

What will you and the teams do differently next quarter?

The Power of OKRs

Focus, alignment, and tracking are the three superpowers of OKRs.

• Focus – OKRs drive focus by limiting you to the most important 3-5 objectives at a time. Be clear about your priorities and objectives; by limiting yourself to a few goals at a time, you can focus better on achieving them. Remember that you're making yourself unavailable to commit to anything else every time you decide on a goal, so pick your goals thoughtfully. Once you've decided where your attention should be focused, stick to those goals.
• Align – OKRs create alignment because OKRs are always public and objectives cascade from CEO to individual teams. This enables coordination and cross-team shared goals.
• Track – OKRs are always quantifiable, and at the conclusion of each cycle, you assess them. These ratings assist you in monitoring your progress and showing when you need to intensify a particular objective or reconsider it.

How to Score OKRs

At the conclusion of each OKR cycle, you evaluate and reflect on your OKRs. The wrap-up phase is made up of three parts: objective evaluation, subjective self-assessment, and reflection.

CFRs – Conversations, Feedback, and Recognition – are tools that managers and employees can use to implement a continuous performance management system.

This system allows for feedback to be given regularly, employees to improve throughout the year, and issues to be addressed as they arise.

Objective Scoring

Assign a score to each objective, combining the completion rates of its key results. Score on a scale ranging from 0.0 to 1.0, with 0.0 indicating no completion and 1.0 indicating completed.

• Green – 0.7-1.0, goal achieved
• Yellow – 0.4-0.6, made progress
• Red – 0.0-0.3, failed

Objective data is  helpful, but it doesn’t tell the whole story. Both low and high numbers can conceal what is really happening if the measurement is incorrectly set. Balance objective scores with self-assessments and qualitative customer feedback.

Run reflection workshops as a team, asking:

• Did we achieve the objective(s)?
• What factors drove the success?
• What roadblocks held the team back?
• What learnings are applicable to the next OKRs?

Visualizing Progress

Visualize your company's work on a single "board" to help with big batch planning, goal clarity, and understanding what is important.

A sample board for a startup – Seed to Series C – should have five swim-lanes:

• Revenue goals and business health metrics
• Workplace happiness
• Recruiting
• The product roadmap
• Cross-department focus

The cross-department focus lane is where the plan is put into action and the organizational alignment is tested. This lane has one or two high level company OKRs, broken down into smaller chunks for individual teams and groups.

Crafting Effective Product Management OKRs

Creating effective product management OKRs involves a delicate balance of connecting product strategy and vision, balancing objectives and key results, and engaging cross-functional team members. Like a master chef crafting a perfect meal, product managers must skillfully combine these ingredients to create a recipe for success.

Establishing a strong nexus between product strategy and vision allows product teams to:

• Align their OKRs with the company’s overarching goals and mission
• Balance objectives and key results to create a well-rounded set of goals that address both short-term and long-term priorities
• Involve cross-functional team members in the OKR-setting process to promote collaboration and shared ownership of goals.

Together, these elements form the foundation for effective product management OKRs.

Connecting product strategy and vision

A well-defined product strategy and vision can be compared to a compass, guiding the product team in the desired direction. Linking product strategy and vision with OKRs is critical to keep product teams focused on the right objectives and key results that align with the company’s overarching goals and purpose.

By setting objectives that are in line with the company’s mission and vision, and establishing key results that are quantifiable and attainable, product teams can effectively align their OKRs with the company’s overall direction and purpose. This alignment ensures that product teams are working towards the same goals, fostering better collaboration and efficiency across the organization.

Balancing objectives and key results

Picture a tightrope walker maintaining their balance as they traverse a high wire. In a similar vein, balancing objectives and key results is crucial for product teams to create a well-rounded set of goals that address both short-term and long-term priorities.

By employing a strategy of balancing objectives and key results, product teams can establish a comprehensive set of objectives that consider both short-term and long-term objectives. This approach enables teams to allocate their efforts and resources effectively, ensuring that they are always working towards the most impactful tasks and keeping their eyes on the prize.

Involving cross-functional team members

Imagine a symphony orchestra, where each musician contributes their unique skills and expertise to create a harmonious performance. In the same way, involving cross-functional team members in the OKR-setting process encourages cooperation and joint responsibility for objectives.

Incorporating cross-functional team members not only helps to establish alignment and collaboration, but also provides a structure for cross-functional teams to work together to identify successful approaches to meet desired goals and reduce unexpected outcomes.

By involving all team members in the process of setting and tracking OKRs, companies can foster a culture of shared ownership and accountability, driving success across the entire organization.

OKR Examples for Different Product Management Focus Areas

No two product teams are alike, and each may have different focus areas depending on their unique goals and challenges. OKRs tailored to product management focus areas can include objectives and key results related to improving user experience and satisfaction, increasing product growth and market share, and optimizing operations and delivery speed.

Customizing OKRs to tackle specific product management focus areas enables product teams to work towards the most germane and high-impact goals suited to their unique circumstances. In the following sections, we will explore some examples of OKRs for different product management focus areas to provide inspiration and guidance for your own OKR-setting process.

Enhancing user experience and satisfaction

Imagine walking into a store where everything is perfectly arranged, easy to find, and the staff is attentive and helpful. Enhancing user experience and satisfaction OKRs focus on creating a similarly seamless and enjoyable experience for customers using your product.

To improve user experience and satisfaction, product teams can set OKRs such as increasing customer satisfaction ratings, decreasing customer support response times, and optimizing the usability of the product. By focusing on these key results, product teams can prioritize their efforts on initiatives that directly impact the customer experience and drive satisfaction.

Driving product growth and market share

Imagine a rocket blasting off into space, accelerating rapidly and leaving its competitors in the dust. Driving product growth and market share OKRs aim to propel your product to similar heights, increasing its reach and competitiveness in the market.

By constructing effective marketing strategies, utilizing data to recognize potential opportunities, and creating innovative products, product teams can set OKRs that drive product growth and market share. By focusing on these objectives and key results, product teams can ensure that their efforts are aligned with the company’s overall strategic goals, ultimately driving growth and success.

Streamlining operations and delivery speed

Imagine a well-oiled assembly line, with each component working seamlessly and efficiently to produce a high-quality product. Streamlining operations and delivery speed OKRs focus on optimizing internal processes and workflows to deliver products more efficiently.

By automating processes, optimally utilizing resources, and leveraging technology, product teams can set OKRs that focus on streamlining operations and delivery speed. By prioritizing these objectives and key results, product teams can enhance their overall efficiency and deliver products to the market more rapidly, driving success and competitiveness.

Integrating OKRs into the Product Development Process

Just as a chef incorporates the right ingredients into a delicious meal, product teams must integrate OKRs into the product development process to ensure the best possible outcomes. This involves guiding product discovery with OKRs, aligning product roadmaps with OKRs, and monitoring and adjusting OKRs throughout development.

By incorporating OKRs into each stage of the product development process, product teams can ensure that their efforts are aligned with the company’s overall strategic goals and that they are working towards the most impactful objectives and key results. In the following sections, we will explore how to integrate OKRs into the product development process, enabling your product team to unlock its full potential.

Guiding product discovery with OKRs

Imagine setting sail on a voyage of discovery, with a map and compass to guide your journey. Guiding product discovery with OKRs helps product teams navigate the often-uncertain waters of product development, identifying and prioritizing the most valuable features and improvements.

Using OKRs during product discovery enables product teams to:

• Pinpoint and prioritize the most impactful features and enhancements
• Identify areas for improvement
• Address any gaps or issues
• Make informed decisions to optimize the user experience

This data-driven approach helps teams improve their product and make it more successful by utilizing their internal feedback score.

Ultimately, guiding product discovery with OKRs empowers product teams to create products that truly resonate with their target audience and drive business success.

Aligning product roadmaps with OKRs

A product roadmap can be thought of as a blueprint for your product’s development, outlining the key milestones and objectives that must be achieved along the way. Harmonizing product roadmaps with OKRs guarantees that product development stays in line with the company’s strategic objectives.

Harmonizing product roadmaps with OKRs enables product teams to concentrate their development efforts on the most crucial objectives and key results, ultimately steering success throughout the organization. This alignment also fosters better collaboration and efficiency among product teams and other stakeholders, as everyone is working towards the same goals and objectives.

Monitoring and adjusting OKRs throughout development

Just as a skilled sailor adjusts their course in response to changing winds and currents, product teams must be prepared to monitor and adjust their OKRs throughout development to stay agile and adapt to changing circumstances or new insights.

Regular assessment and necessary modification of OKRs to adapt to evolving market conditions or seize new opportunities helps product teams stay concentrated on the most crucial objectives and key results. This flexibility and adaptability not only helps product teams stay on track, but also enables them to seize opportunities that may arise during the development process.

Overcoming Common Challenges in Implementing OKRs

Implementing OKRs can be a daunting task, but with the right approach and mindset, product teams can overcome common challenges such as ensuring company-wide buy-in, maintaining flexibility and adaptability, and avoiding OKR overload.

By addressing these challenges head-on and focusing on the most important objectives and key results, product teams can successfully adopt and implement OKRs, ultimately driving success across the organization. In the following sections, we will explore strategies for overcoming these common challenges and unlocking the full potential of OKRs for your product team.

Ensuring company-wide buy-in

Picture a rowing team, with each member working in perfect sync to propel the boat forward.

Ensuring company-wide buy-in for OKRs is a crucial factor in the successful adoption and implementation of OKRs across the organization. To ensure company-wide buy-in, the following steps should be taken:

• Communicate the importance of OKRs across the organization effectively.
• Provide ample training and resources for employees to comprehend the OKRs.
• Encourage active involvement of employees in setting and tracking OKRs.

By following these steps, you can increase the likelihood of company-wide buy-in and successful implementation of OKRs.

By fostering a culture of shared ownership and accountability, companies can drive success across the entire organization and ensure that OKRs are not just another management fad, but a powerful tool for achieving strategic goals.

Maintaining flexibility and adaptability

In the ever-changing world of business, flexibility and adaptability are key to staying ahead of the competition. Keeping flexibility and adaptability intact when implementing OKRs allows product teams to tweak their OKRs as required, in response to evolving market conditions or emerging opportunities.

Setting achievable goals, permitting adjustment of objectives and key results, along with regular progress reviews, can help product teams maintain flexibility and agility during OKR implementation. This adaptability not only helps product teams stay on track, but also enables them to seize opportunities that may arise during the development process.

Avoiding OKR overload

Imagine a plate piled high with delicious food, so much that it’s impossible to enjoy any single dish. Avoiding OKR overload helps prevent product teams from becoming overwhelmed by too many goals, allowing them to focus on the most important objectives.

To avoid OKR overload, organizations can set distinct objectives, underscore key results, and limit the number of OKRs. By focusing on the most important objectives and key results, product teams can concentrate their efforts on the tasks that will yield the highest impact, ultimately driving success across the entire organization.

Frequently Asked Questions