Product management is all about achieving results. You need to be able to set goals, track progress, and measure success to ensure that your product is on track and meeting objectives.
One popular framework for goal setting and tracking progress is OKRs (Objectives and Key Results). OKRs have been used by companies like Google, LinkedIn, and Twitter to help them scale and achieve their ambitious goals.
As a product manager, you can use OKRs to:
- Set bold objectives that will challenge your team and drive results
- Track progress and identify areas of improvement
- Engage and motivate your team by aligning everyone around a common goal
- Measure success and keep everyone accountable
If you're new to using OKRs, this guide will teach you everything you need to know about how to set and achieve your OKRs.
What are OKRs?
OKRs are a framework for setting and tracking goals. This product OKR is typically used in businesses to help achieve ambitious objectives. There are three key components of an OKR:
- Objectives – these are the goals that you want to achieve
- Key results – these are the measurable steps that need to be taken to achieve the objectives
- Time frame – these dictate when the objectives and key results should be achieved
Objectives should be ambitious but achievable. They should also be specific, measurable, and time-bound. Key results should be quantifiable so that progress can be easily tracked. It's important to note that OKRs should not be used to micromanage employees or track every little detail. They should be used to measure progress towards overall objectives and keep everyone accountable.
Why use OKRs?
Using OKRs in product management can help you achieve results in several ways.
Prioritizing What's Important
One of the most critical skills for a product manager is the ability to prioritize what's important. You need to quickly assess and filter through all the information that comes your way to figure out what needs your attention right now. And you need to be able to make tough decisions about what's worth spending time on and what can be put on the back burner.
To effectively prioritize, you need to understand your goals and objectives clearly. What are you trying to achieve? What are the biggest priorities for your product? Once you have a good sense of what's important, you can start filtering everything else through that lens.
Increases Operational Agility
Another benefit of using OKRs is that they can help increase operational agility. In today's fast-paced business environment, the ability to rapidly adapt and change course is critical for success.
OKRs can help you be more agile by providing a framework for setting and tracking goals. They force you to focus on what's important and measure progress against specific objectives. This helps you quickly identify areas that need improvement and makes it easier to make changes when necessary.
Builds alignment and engagement
When everyone in an organization is working towards the same goal, it creates a sense of purpose and unity. People are more likely to be engaged in their work and feel invested in the company's success.
OKRs can help build alignment by ensuring everyone is working towards the same objectives. They can also help engage employees by giving them a clear sense of their expectations and how their work contributes to the overall goal.
How to set OKRs
There are a few things to keep in mind when setting OKRs:
- Objectives should be specific, measurable, and time-bound
- Objectives should be ambitious but achievable
- Key results should be quantifiable
- Every objective should have at least one key result
- OKRs should not be used to micromanage employees or track every little detail
Here's an example of how you might set an OKR for increasing user adoption of a new feature:
Increase user adoption of the new feature by 10% within three months.
- Send a weekly email blast to users highlighting the new feature and its benefits
- Add a banner on the home page promoting the new feature
- Host a webinar to train users on how to use the new feature
- Create a video tutorial on using the new feature
- Measure and track user adoption rates weekly
As you can see, the objective is specific, measurable, and time-bound. The key results are also quantifiable so that progress can be easily tracked.
Now let's take a look at how you might set an OKR for increasing customer satisfaction:
Increase customer satisfaction by 10% within three months.
- Send out a survey to customers to gauge satisfaction levels
- Identify areas of improvement based on survey results
- Make changes to improve customer satisfaction
- Measure and track customer satisfaction levels monthly
- Respond to all negative feedback within 24 hours
Again, the objective is specific, measurable, and time-bound. The key results are also quantifiable so that progress can be easily tracked.
As a product manager, it's vital to understand OKRs and how they can be used to achieve goals. You can increase operational agility, build alignment, and engage employees by setting clear objectives and key results. Setting OKRs can help you take your product management to the next level with a little practice.