Targets for product management or product development are called product objectives. They represent the foundation for the strategy, design, launch, and improvement of products. Product objectives can be included in performance management targets and are used as targets for teams and individuals.
Common examples of product objectives would be revenue, price, market share, go-to-market, promotion, operations, customer experience, distribution, and product knowledge.
Product managers need to work with the product team to identify OKRs (objectives and key results) that define the product's success in quantifiable and attainable terms.
Product managers use OKRs because they help teams align. The team's short-term mission statements are referred to as objectives in OKRs. Individual goals are preferable to an overarching corporate goal. Key outcomes quantify an objective's motivating language and keep everyone on track.
Individual employees may feel cut off from the organization if there are no OKRs. What are the advantages of their work for the company? It's challenging to convince individuals that they have accomplished anything substantial without OKRs. Using OKRs, everyone can see how their efforts benefit the whole company.
The product roadmap determines how each organization or product team maintains its OKRs. The OKRs can be more successful if they adhere to the standard principles listed as follows:
Simplicity and agility - Because OKRs are set quarterly, the organization can easily change and adjust goals.
Bidirectionality - OKRs don’t always go from bottom to top. Usually, a product team will set the strategic OKRs, and only then will the other groups and teams create tactical OKRs which align with the strategic ones.
Stability - OKRs need to be long-term sustainable without being immutable or ‘written in stone.’
Transparency - You can promote company-wide transparency and alignment by sharing your OKRs.
But what are some of the benefits OKRs bring to product managers?
Link each employee to the company’s broader long-term goals
Clarify the direction each employee or team has to take
Monitor progress frequently
Make the best, informed decisions
Promote measurement, accountability, and transparency
Help managers with team management
Give the product team opportunities to optimize their processes with goals oriented towards action.