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How to set product OKRs that are aligned with your company’s goals?

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In the fast-paced world of product development, keeping everyone on the same page is paramount. One of the most effective tools used by organizations to align their teams and drive productivity is OKRs. When product teams can align their OKRs with overarching company goals, it ensures that every effort, feature, and sprint contributes to the business’s larger mission.

 In this blog, we’ll delve into how to set product OKRs that synchronize perfectly with your company’s ambitions, ensuring that your product team OKRs are not just a checklist but a strategic roadmap.

What Are Product OKRs

At their core, product OKRs are all about aligning the product’s mission and vision with the company’s broader objectives. While the term may sound technical, it’s a straightforward principle:

  • Objectives are clear, qualitative descriptions of what you want to achieve. They’re ambitious and often push the boundaries of what seems possible.
  • Key Results, on the other hand, are specific, quantifiable outcomes that measure the success of the set objectives.

For instance, if an objective is to “Enhance User Engagement in the Mobile App”, a key result could be “Increase monthly active users by 25% in the next quarter”.

Product OKRs offer a strategic compass for product teams, guiding them toward impactful outcomes and ensuring alignment with company-wide goals. 

Why Are OKRs Crucial For Product Managers

Product managers are at the nexus of translating vision into actionable roadmaps. For them, the strategic clarity that OKRs offer is indispensable. Diving deeper, here are the specific reasons why OKRs are essential for product managers:

  1. OKRs provide a clear roadmap for prioritization amidst multiple projects.
  2. They ensure product strategy aligns with the company’s broader vision.
  3. OKRs offer quantifiable targets, fostering a data-driven approach.
  4. They act as a transparent tool for conveying product priorities to stakeholders.
  5. OKRs help in filtering out noise and centering on what truly matters.
  6. They encourage setting and chasing after transformative, challenging goals.
  7. Regular OKR reviews enable iterative improvements based on outcomes.
  8. Clear objectives and results inspire and align the entire product team.
  9. With set OKRs, resources can be strategically allocated for maximum impact.
  10. Through tracking OKRs, potential pitfalls can be identified and addressed promptly.

Setting Product OKRs that Align with Your Company’s Goals

Setting Product OKRs that are in harmony with your company’s goals is pivotal for ensuring that product strategies and actions cater to the broader organizational objectives. Here’s a step-by-step guide on how to do it, supplemented with examples:

How to Set Product OKRs that Align with your company goals

1. Understand Your Company’s Strategic Objectives:

Before setting any Product OKRs, it’s essential to grasp your company’s primary objectives for the upcoming period. Whether it’s expanding into new markets, increasing customer retention, or driving revenue growth, understanding these goals is crucial.

Example: If the company’s goal is to expand into the Asian market, a related product objective might be to localize the product for specific Asian languages or to develop features catering to regional needs.