To bring product managers in line with stakeholders and corporate objectives, it’s critical to set and implement the OKRs. If are you interested in knowing the guide in okr product management, then this article is for you.
In their field, product managers are to create superior products. They must collaborate closely with multiple departments and frequently share objectives with them on user experience, customer satisfaction, and so forth
What are OKRs?
“Objectives and Key Results” is referred to as “OKR.” OKRs are a powerful goal-setting and leadership tool for expressing your goals and the key milestones you’ll need to hit to get there. Some of the top organizations in the world set and implement their plans using OKRs.
In order to develop tough, ambitious objectives with measurable outcomes, teams, and individuals employ this collaborative goal-setting process called okr product management.
Using OKRs, you may monitor progress toward concrete targets while fostering alignment and engagement.
OKRs are effective for creating goals at many company levels, whether we’re talking about office management, software engineering, NGOs, or something else.
It can utilize them to accomplish personal objectives and even by individuals to do tasks in settings where senior leadership does not employ them.
Types of OKRs
There are three types of OKRs which are committed, aspirational, and learning OKRs.
1. Committed OKRs
Committed OKRs are commitments, as their name implies. A Committed OKR is anticipated to receive a passing grade when assessed at the conclusion of a cycle.
2. Aspirational OKRs
Stretch goals or “moonshots” are other names for aspirational OKRs. Since no one has ever reached an aspirational OKR, a path must be created to get there.
In order to increase employee engagement, they may also be long-term, continue past an OKR cycle, or even be passed between team members.
3. Learning OKRs
When learning something new is the most valuable cycle outcome, learning OKRs is for that. A team could create a Learning OKR that addresses the question, “What is the most essential thing we’re aiming to learn in the next 90 days?”
If they are unsure of how to continue. The outcomes can then influence an associated Committed or Aspirational OKR in the following cycle.
Implementing your Product Team’s OKR Cycle
There is no set rule as to how long an OKR cycle should last, however it often lasts one quarter. Your OKR cycle will rely on how your organization functions, but you may still modify it to suit the needs of your product team.
Remember that Key Results ought to be demanding and aggressive while also being reasonably time-bound.
It is advised that you often check in with your product team during your OKR cycle to assess how the execution is going, especially when you are just beginning to adopt this methodology.
This will help you discover your own rhythm and make setting future OKRs easier as you go along in OKR product management.
How are OKRs Rated?
OKRs are designed to be rated at the end of a cycle and tracked often. There are several ways to grade (or “score”) OKRs.
The Andy Grove methodology for rating OKRs is a straightforward “yes” or “no” strategy. Did you fulfill it? Or didn’t you?
The “Red, Yellow, Green” rating system, in which red indicates “we failed,” yellow indicates “we made progress,” and green indicates “we met our target,” is used by most companies because they desire a little more specificity in their grades.
The most thorough grading system is used by Google, which assigns a numerical score to each Key Result at the end of the cycle using a percentage scale (0.0 – 1.0).
The overall score for that Objective is calculated by averaging the Key Results scores.
Establishing Product Management OKRs
You must adhere to one straightforward method in order to generate excellent and effective okr product management.
Since OKRs may be utilized by teams or individuals and are tailored to match the objectives of any organization, regardless of size, they can aid in goal formulation at all levels of an organization.
Your goals ought to be specific, doable, and time-bound. The typical time frame for completing them is one quarter, although you can select a greater or shorter length of time depending on the target.
The key results—rather than your typical performance metrics—are the ones that show whether or not an Objective has been met. The team can follow progress more easily because the results are tangible, time-bound, and measurable.
Regular progress monitoring is required of KR contributors, and at the conclusion of the OKR period that has been established, there is typically an OKR meeting to assess how well the team performed and to debate whether a change in approach is necessary.
You can organize a meeting to make your product management OKRs in partnership with the people who must accomplish them. A brainstorming session and meeting with your product team foster a feeling of accountability, involvement, and ownership.
You want to inspire and drive your team by giving them the freedom to design their own challenges and accomplish the goals they have set for themselves.
OKR in Product Management
Following “best practices” is not enough to create OKRs that will assist you and your team in tracking progress and concentrating on outcomes in okr product management.
A Product Team may find it challenging to respond to the question “How does success for our product look at the end of this cycle?” in the absence of concrete direction.
After all, giving people the freedom to create OKRs from the ground up doesn’t necessarily make it clear what should come next.
Because of this, it is the Product Team’s obligation to either request access to or develops the inputs needed for the definition of their OKR sets.
The caliber or absence of these inputs can frequently expose serious weaknesses in a group or organization.
If a team lacks the capability or expertise to directly engage with people through product discovery, how can you expect articulated Key Results containing what should be achieved rather than what should be done?
If the direction of the organization is unclear, how should a team name their contribution to the goals?
Furthermore, if there is no coordination and communication about high-level efforts that have been agreed upon, how can established OKRs be expected to match cross-team priorities?
Even while each of these inputs has advantages, I believe the lack of a product strategy to be the most detrimental.
I would further contend that using OKRs is pointless in the absence of a distinct and actionable product strategy.
As was previously said, listing all the same performance-driven KPIs you already measure should not be considered determining the success of a product through Key Results. Instead, describe success from as many perspectives as you can using the concept of Key Results.
Starting your OKR formulation process by concentrating on already recognized performance indicators like revenue or growth is acceptable. But don’t stop there; push yourself to consider more quantifiable indicators of your product’s success.
Exemplary Measures Used to Illustrate the Effectiveness of OKRs
1. The conversion rate for a good or service.
2. NPS or a comparable mechanism used to measure customer happiness.
3. Product evaluations found on websites like App Store.
4. The number of new users who finish an onboarding process.
5. Changes in the sales team’s behavior, such as the number of follow-up calls required or the procedures to demonstrate a product.
6. Data obtained from experiments or user testing sessions.
7. Metrics measuring client preferences through behavior (churn or retention)
Guides in Using OKRs in Product Management
No matter how outcome-focused your drafted OKRs product management is, if you can’t use them in your daily decision-making, they are useless.
1. Define the WHYs
The product vision and product strategy guide the long-term Why’s. Why is my business in existence? What do I believe in?
Why do I deserve to triumph in the market I’ve entered?
The quarterly OKRs, which are a scaled-down version of this bigger WHY and can also be referred to as a “strategy in a nutshell,” can be generated from this in okr product management.
2. State the WHATs
In okr product management, the WHAT, in contrast, is comprised of specific product roadmap themes, discovery priorities, activities, as well as particular user stories and tasks.
Themes and Discovery priorities frequently covered A medium-term time range. They typically discuss more extensive projects or certain features that require more time to develop before having an effect on business users.
User stories and tasks, on the other hand, have a shorter lead time because they are a part of Scrum sprints, which are short development cycles.
3. Ensure that OKRs and Product Roadmaps Don’t Create an Alternate Dimension
One of the most divisive items in product management is product roadmaps. Few Product Teams appear to understand their worth and necessity, despite the fact that everyone must use them in some capacity to express priorities (at the very least).
Additionally, the importance of Product Roadmaps in the context of OKRs increases without becoming any simpler to manage.
They are one of the few crucial artifacts that serve as both an input for drafting OKRs and an output for communicating the priorities that must be followed in order to accomplish drafted and committed OKR sets.
It shouldn’t be surprising that the Feature-based Roadmap hinders rather than facilitates Outcome OKRs for Product Teams given that a roadmap is an essential input for the process of creating an OKR.
Benefits of Using OKRs in Product Management
Clarity, improved communication, and a consistent, transparent organization-wide approach are just a few advantages that OKRs offer.
OKRs enable a team to unite around a manageable number of well-selected priorities.
Using OKRs, an entire organization may align all of its objectives with its overarching goals and key priorities.
In order for OKRs to be successful, all participants must be equally committed to selecting and maintaining the prioritized tasks.
Using OKRs, a team or organization may keep tabs on their progress toward a goal and determine whether to switch up their approach earlier.
OKRs give teams the freedom to create objectives that go beyond BAU, or “business as usual,” and bring about substantial, lasting change.
Product management is a challenging position. A variety of factors may impact your product strategy. How can you ensure that your product remains relevant in the face of emerging competitors and shifting client preferences?
Even though product management is uncertain, using OKRs product management, you can still forecast your success.