use OKRs become product manager

Category: OKR University.

If you’re a product manager, congratulations! You fulfil one of the most valuable but often misunderstood roles at your company.

As one of the pilots in the cockpit steering your company towards success, you get to define what success looks like. You’re lucky because your team’s objectives and your organization’s objectives or company OKRs are closely aligned.

At the same time, you’re under a lot of pressure to keep different teams focused on the central goal: maximizing value for your customers. This, in turn, translates into maximizing value for your company.

Henry-ford-Quotes

Most people spend more time and energy going around problems than in trying to solve them.

Henry Ford

But how can you define success if you aren’t able to articulate what success looks like for your business?

If you are facing any of these problems, then you might not be setting OKRs effectively:

  1. Your teams struggle with prioritizing different strategies and managing timelines
  2. Your teams aren’t moving in the same direction, creating conflicts and inefficiency
  3. You are feeling ineffective and off-balance, like your progress is stuck in place

What Do OKRs Mean For Product Management?

OKRs are the defined priority goals that keep everyone within an organization focused on what truly matters. A strategically aligned vision leads to a shared sense of purpose.

As a product manager, it’s your job to turn that collective focus into the passion that inspires everyone on your team.

OKRs help you answer two of the most important questions for any organization.

  1. Where do we want to go?
  2. How do we know we’re getting there?

Remember, OKRs are not only there to document tasks.

They exist to energize and motivate. They should be ambitious and give your teams a target to aim for. Keeping track of your OKRs forces you to continually reinforce your goals in the context of your shared ambition.

What is the best way to keep track of your important OKRs? While some teams try to use spreadsheets for OKRs, they are not scalable or agile enough to truly benefit your organization. Instead, you should use an intuitive OKR management software such as Profit.co to help you focus, measure, and achieve your goals. You can get started on Profit.co today completely free of charge!

Key Benefits of Applying OKRs in Product Management

If you set appropriate OKRs, they’ll offer immense benefit for your entire organization. Here are two key benefits:

  1. They teach teams to be result-oriented.
  2. Reviewing OKRs gives you regular opportunities for reinforcing direction and focus.

By identifying the key results that you are targeting, your entire team is on the same page. They know exactly what to do and whether they have achieved their goals by the end of each cycle.

While focusing on process is important, clearly setting out the desired results ahead of time ensures that no one spends time on solving issues that are not on the priority list.

Setting OKRs also gives you an excellent opportunity to review your team’s achievements at the end of each quarter. This is a reasonable amount of time to see what works and what doesn’t. In addition, it helps you stay on track and decide what direction to pivot towards.

The Dos and Don’ts of Product Management OKRs

When setting effective OKRs, be ambitious and specific.

Here’s an ineffective objective: “Grow revenue over the next few months.” It’s too general and doesn’t point towards an inspiring target.

Instead, set a more inspiring, specific, time-bound goal: “Achieve record 2nd quarter revenue growth.”

When it comes to defining key results, make sure that they are quantifiable and lead to objective grading.

An ineffective key result might be: “Improve customer acquisition.”
Instead, aim for quantifiable, specific results: “Onboard 250 new clients in the 3rd quarter, and reduce customer loss by 10%.”

Remember not to take on too many OKRs at once. You should focus on 3-5 OKRs in each quarter. For each objective, you should have between 3-5 key results. Having too many OKRs can lead to unbalanced OKR progress.

Product Manager OKRs Examples

Here are some examples of product management OKRs broken down into each step of the product life cycle:

User Research OKRs

objective-circle-icon1Objective

David Griffin

Identify how we can fulfill our users’ needs better than our competition

43%

Target Date: Annual-2021

Visibility: All Employees

key-icon1Key Results

Survey 50 customers who have switched to a competitor, and vice versa

Annual-2021 increase-icon1 Survey Customers
0 50 30

60%

Conduct 20 interviews with buyers who fit our Ideal Customer Profile (ICP)

Annual-2021 roger-smith-assignee1 increase-icon2 Interview for Ideal Customer Profile (ICP)
0 20 9

45%

Analyze data from all Q1 customer support requests

Annual-2021 alice-assignee1 percentage-tracked-icon1 Percentage Tracked
0% 100% 24%

24%

objective-circle-icon2Objective

David Griffin

Implement rigorous product testing for V.2 launch

47%

Target Date: Annual-2021

Visibility: All Employees

key-icon2Key Results

Conduct live testing interviews with 20 key accounts

Annual-2021 increase-icon3 Live Testing Interviews
0 20 12

60%

Achieve a sign-up to trial ratio of 30%

Annual-2021 roger-smith-assignee2 increase-icon4 Trial Ratio
0% 30% 14%

47%

Identify top 3 improvements as reported by users in beta testing

Annual-2021 alice-assignee2 increase-icon5 Improvements in Beta Testing
0 3 1

33%

Design and Development OKRs

objective-circle-icon3Objective

David Griffin

Root out all our existing possible customer pain points before the new launch

20%

Target Date: Annual-2021

Visibility: All Employees

key-icon3Key Results

Identify all features that have an average usage rate of less than 20%

Annual-2021 control-kpi-icon1 Average Usage Rate
0% 20% 12%

0%

Run external quality check with a third-party

Annual-2021 roger-smith-assignee4 percentage-tracked-icon2 Percentage Tracked
0% 100% 38%

38%

Reduce processing time by 1 second to 0.5 seconds.

Annual-2021 alice-assignee3 decrease-icon1 Processing Time
1000 ms 500 ms 890 ms

22%

objective-circle-icon4Objective

David Griffin

Build a captivating new user experience

41%

Target Date: Annual-2021

Visibility: All Employees

key-icon4Key Results

Increase average user time per week from 240 min. to 300 min.

Annual-2021 increase-icon6 Average User Time
240 Min(s) 300 Min(s) 275 Min(s)

58%

Reduce reported bugs-per-feature by from 125 to 30

Annual-2021 roger-smith-assignee3 decrease-icon2 Reported bugs-per-feature
125 30 91

36%

Decrease unsubscribe rate by from 15% to 5%

Annual-2021 alice-assignee4 decrease-icon3 Unsubscribe Rate
15% 5% 12%

30%

objective-circle-icon5Objective

David Griffin

Sharpen our development process into a cutting edge

52%

Target Date: Annual-2021

Visibility: All Employees

key-icon5Key Results

Increase our innovation and redevelopment budget by 15%

Annual-2021 increase-icon7 Innovation and redevelopment budget
0% 15% 10%

67%

Implement monthly competitive research instead of quarterly research

Annual-2021 roger-smith-assignee15 milestone-tracked-icon Monthly Competitive Research
0% 100% 40%

55 555555 55 55 55 55 55

40%

Add two new team members to the development team in Q3

Annual-2021 alice-assignee5 increase-icon8 Add team members to the development team
0 2 1

50%

Product Release OKRs

objective-circle-icon6Objective

David Griffin

Radically improve our V.2 product launch

46%

Target Date: Annual-2021

Visibility: All Employees

key-icon6Key Results

Give 400 demos to inquiring customers

Annual-2021 increase-icon9 Demos to Inquiring Customers
0 400 265

66%

Increase pre-booking rate by 50%

Annual-2021 roger-smith-assignee5 increase-icon10 Pre-booking Rate
0% 50% 22%

44%

Increase trial to paid conversion rate from 30% to 60%

Annual-2021 alice-assignee6 increase-icon11 Trial to Paid Conversion Rate
30% 60% 38%

27%

objective-circle-icon7Objective

David Griffin

Create a noticeable user-generated buzz around our new product launch

22%

Target Date: Annual-2021

Visibility: All Employees

key-icon7Key Results

Increase organic social media mentions from 140 to 220

Annual-2021 increase-icon12 Social Media Mentions
140 220 191

64%

Target 150 referral code subscriptions in each quarter

Annual-2021 roger-smith-assignee6 control-KPI-icon2 Referral code subscriptions
0 225 78

2%

Secure interviews about the new product with at least three major tech media websites

Annual-2021 alice-assignee7 control-kpi-icon3 Major Tech Media Websites
0 5 3

1%

objective-circle-icon8Objective

David Griffin

Achieve excellent feedback from users after launch

44%

Target Date: Annual-2021

Visibility: All Employees

key-icon8Key Results

Increase Average bed Improve NPS from 7.0 to 9.0occupancy rate from 70% to 80%.

Annual-2021 increase-icon13 NPS
7 9 8.41

71%

Positive ratings on App Store (3 stars or higher) increase by 20%

Annual-2021 roger-smith-assignee7 increase-icon14 Positive ratings on App Store
0% 20% 12%

60%

Maintain reported bugs under 100

Annual-2021 alice-assignee8 control-kpi-icon4 Reported Bugs
0 100 32

50%

User Metrics OKRs

objective-circle-icon9Objective

David Griffin

Refine the user onboarding process

46%

Target Date: Annual-2021

Visibility: All Employees

key-icon9Key Results

Reduce trial abandonment rate by 30%

Annual-2021 decrease-icon4 Trial Abandonment Rate
60% 30% 41%

63%

Increase trial conversion rate from 60% to 75%

Annual-2021 roger-smith-assignee8 increase-icon15 Trial Conversion Rate
60% 75% 66%

40%

Reduce set-up steps and shorten user set-up time by 15%

Annual-2021 alice-assignee9 decrease-icon5 Set-up Steps and shorten user Set-up Time
30% 15% 25%

33%

objective-circle-icon10Objective

David Griffin

Actively boost user engagement

38%

Target Date: Annual-2021

Visibility: All Employees

key-icon10Key Results

Increase daily active user rate by 15%

Annual-2021 increase-icon16 Daily Active User Rate
0% 15% 9%

60%

Increase daily use sessions from 4 to 7

Annual-2021 roger-smith-assignee9 increase-icon17 Daily Use Sessions
4 7 5

33%

Increase monthly retention rate by 25%

Annual-2021 alice-assignee10 increase-icon18 Monthly Retention Rate
0% 25% 5%

20%

objective-circle-icon11Objective

David Griffin

Help users become experts at using our product

32%

Target Date: Annual-2021

Visibility: All Employees

key-icon11Key Results

Add 150 new entries into FAQ and Troubleshooting

Annual-2021 increase-icon19 New entries into FAQ and Troubleshooting
0 150 80

53%

Improve chatbot satisfaction score from 3 to 4 stars out of 5

Annual-2021 roger-smith-assignee10 control-KPI-icon5 Chatbot Satisfaction Score
0 5 3.3

2%

Reduce support request emails by 50%

Annual-2021 alice-assignee11 decrease-icon6 Support Request Emails
60% 50% 56%

40%

objective-circle-icon12Objective

David Griffin

Achieve record quarterly growth in profits per user

51%

Target Date: Q3-2021

Visibility: All Employees

key-icon12Key Results

Increase lifetime value per customer by 30%

Q3-2021 increase-icon20 Lifetime value per customer
15% 30% 26%

73%

Focus on upsell/cross-sell revenue and boost by 15%

Q3-2021 roger-smith-assignee11 increase-icon21 Upsell/Cross-Sell Revenue
0% 15% 8%

53%

Reduce monthly churned-down revenue by 20%

Q3-2021 alice-assignee12 decrease-icon7 Monthly Churned-Down Revenue
4.2% 3.4% 4%

25%

objective-circle-icon13Objective

David Griffin

Ramp up our referral program

24%

Target Date: Annual-2021

Visibility: All Employees

key-icon13Key Results

Increase user-generated shared content by 10%

Annual-2021 increase-icon22 User-Generated Shared Content
0% 10% 5%

50%

Target 80 shared referral codes per month

Annual-2021 roger-smith-assignee12 control-KPI-icon6 Shared Referral Codes
0 80 25

2%

Increase referral revenue by 15%

Annual-2021 alice-assignee13 increase-icon23 Referral Revenue
0% 15% 3%

20%

Internal Team Operations OKRs

objective-circle-icon14Objective

David Griffin

Sharpen team meetings into a productivity weapon

25%

Target Date: Annual-2021

Visibility: All Employees

key-icon14Key Results

Agenda published and each team’s talking points shared one day in advance

Annual-2021 percentage-tracked-icon3 Percentage Tracked
0% 100% 44%

44%

Maintain anonymous satisfaction ratings at 4 out of 5 stars

Annual-2021 roger-smith-assignee13 percentage-tracked-icon4 Percentage Tracked
0% 100% 29%

29%

Keep the weekly team meeting under 30 minutes

Annual-2021 alice-assignee14 controlled-kpi-icon7 Weekly Team Meeting
0 Min(s) 30 Min(s) 5 Min(s)

2%

objective-circle-icon15Objective

David Griffin

Each member of our team dreams big together

34%

Target Date: Annual-2021

Visibility: All Employees

key-icon15Key Results

Increase internal team NPS from 7 to 8.5

Annual-2021 increase-icon24 NPS
7 8.5 7.77

51%

All our team members can accurately share our company vision with new customers

Annual-2021 roger-smith-assignee14 percentage-tracked-icon5 Percentage Tracked
0% 100% 30%

30%

Increase external personal growth opportunities budget by 10%

Annual-2021 alice-assignee15 increase-icon25 External Personal Growth Opportunities
0% 10% 2%

20%

How Your Product Team Can Make OKRs Work

Setting effective OKRs for your product management team can help solve issues with managing timelines or prioritizing development strategies. They allow you to avoid conflicts by ensuring that you’re all pulling in the same direction and have the same goals in mind.

In product management, every objective is key to the success of your organization. You can’t afford to waste time trying to achieve vague aspirations. That’s where OKRs come in, allowing you to work smarter, not harder.

Do you want to learn more about defining and tracking OKRs on the Profit.co software? Schedule a free demo today with our OKR experts to find out how our software can help you achieve your goals effectively and efficiently.

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