Product management is an art that requires not only technical skills but also strategic thinking. In this context, goals help focus on what is most important throughout the product lifecycle. From the first prototype to the withdrawal of the product from the market, well-defined goals show us what direction we should take.
The SMART framework is an excellent tool for setting goals for your product strategy. SMART goals is an acronym that stands for Specific, Measurable, Achievable, Relevant, and Time-bound. But what do these words mean?
However, the SMART approach is sometimes criticized as it can make teams deliberately set goals that are easy to achieve, as the measure of success here is completing the whole plan. The creators of the OKR method tried to fix this issue.
The OKR framework (Objectives and Key Results) focuses on setting very ambitious goals and tracking results that can be measured objectively. For example, an objective could be “increasing our presence in the European market,” with key outcomes like increasing traffic to our website by 50%” and “increasing the number of new customers in EU countries by 30%.”
OKRs, unlike SMART goals, aren’t created with the intention of fully achieving them. It’s enough to execute them at 80% to declare the success of a strategically defined objective.The OKR method, apart from concentrating on objectives and key results, also focuses on five key aspects that are essential to successful management and goal achievement. As John Doerr points out in an interview with Harvard Business Review, OKRs give us the following benefits:
Each of these aspects plays a key role in successful goal management and can contribute to the success of a product strategy. According to the OKR Impact Report 2022, companies that effectively communicate and regularly review their OKRs are 28% more effective. More than 80% of companies agree that OKRs have a positive impact on their organization.
Both methods have many advantages. The SMART method is particularly useful when dealing with specific, short-term goals, while the OKR framework is suitable for long-term, strategic objectives that may require more flexibility. The choice between the two depends on the specifics of our product and strategy. It is worth noting that according to the OKR Impact Report 2022, companies that fully embraced the agile model before the pandemic achieved better results than those that did not.
Implementing SMART goals and OKRs in a product strategy requires thorough planning. Here are a few steps that might help in the process:
SMART goals and OKRs are powerful tools that can help you execute your product strategy. Regardless of the chosen method, it is essential to regularly monitor progress and be flexible in adjusting goals to changing conditions.
Goals are a key component of any product strategy. The SMART and OKR methods are two popular tools that can help you set and execute these goals. And which framework you choose, depends on the specifics of your product and strategy.
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Author: Andy Nichols
A problem solver with 5 different degrees and endless reserves of motivation. This makes him a perfect Business Owner & Manager. When searching for employees and partners, openness and curiosity of the world are qualities he values the most.
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