Welcome to the Edition 5 of The Lens, my newsletter on Product Management and related topics. I include some of the content that you may find useful if you are a Product Manager or a Leader. If you like what you read, please forward it to someone you think may get value. Thank you.
OKRs:
In this edition, I am going to cover Objectives and Key Results and how the framework can be used for employees, teams, and for products. I hope you will find this useful in your work.
At the simplest, OKRs are expected to provide answers to two simple questions listed in High Output Management by Andy Grove (link, aff) : Where do I want to go, and how will I pace myself. Google’s guide (link) is a good start for anyone to get started with OKRs. Important factors for me about OKRs, are that they are ambitious and are not replacement for performance reviews.
In order for the OKRs to be successful, specific attention has to be paid in these two aspects - one, specificity, two, focus on outcomes, not output. In a fantastic leader’s guide to implement OKRs, (link) Sachin Rekhi provides examples, recommendations for frequency, scoring, and overcoming downsides.
A key result defines a numerically-based expression of success or progress towards an objective. Great key results are specific, time-bound, measurable, and verifiable.
Key result examples:
Increase weekly active users by 20%
One of the downsides is when OKRs don’t measure improvement and outcome, but instead focus on output. It’s key ‘results’.
Though Individual OKRs can be helpful, especially for individual contributors, I recommend setting team OKRs that are ambitious. Felipe Castro has a timely post on how to use OKRs during Covid-19 outbreak, chiefly ‘discovery-driven planning’. HBR Article (link)covers the pitfalls, and other recommendations very well. Here are some more examples and a template.(link)
OKRs in Product Management
OKRs can fit hand in glove with Product Management, and in particular in Product Planning. Using OKRs for product planning is very convenient because, “User problems” can directly map to Objectives. The Key Results can demonstrate the progress or the improvement achieved against user problems in a given time period. Gannon Hall, former head of Google Maps, explains it well. (link)
OKRs provide greater clarity about strategic themes and also help communicate the strategic priorities, and product roadmaps to the organization. I will cover more about prioritization frameworks in the next editions.
Should you use OKRs ?
Roman Pichler calls attention to some of the drawbacks such as lack of visualization and overuse. However, I agree with him that it is worth experimenting like a true PM. If it helps provide clarity and communication, it’s a great start. Even if the key results fall short ( they are supposed to be ambitious), it is still a success.
However, not every organization is set up to effectively apply this technique, basically due to organizational structure and empowerment. Marty Cagan explains very well in this post (link). I will cover more about organizational structure in future editions.
I leave you with these thoughts. Let me know if you have any feedback. And do share with whoever is in the early stages of their PM career or is interested in getting into Product Management.
PS.
What I am thinking:
What I am reading:
Making websites win (you get a free book through that link)
Blue Ocean Strategy (aff)