OKRs (Objectives and Key Results) are a goal-setting framework used by top companies (Google, LinkedIn, Uber) to align teams and measure success. Here’s how to implement them effectively in product management:
1. Understand the OKR Structure
- Objective (O):Qualitative goal (inspirational, ambitious).
- Example: “Become the most user-friendly e-commerce app in Asia.”
- Key Results (KRs):Quantifiable outcomes (measurable success criteria).
- Example:
- KR1: Increase app usability score from 7.2 to 8.5 (NPS).
- KR2: Reduce checkout steps from 5 to 2.
- KR3: Improve mobile load time by 40% (under 2 sec).
- Example:
✅ Rule of Thumb:
- 3-5 Objectives per quarter.
- 3-5 Key Results per Objective.
2. Define Product OKRs (Step-by-Step)
Step 1: Align with Company Goals
- Example: If company OKR is “Increase revenue by 30%,” product OKRs could focus on:
- Conversion rate optimization
- Reducing churn
- Upsell features
Step 2: Choose Product Focus Areas
Prioritize based on:
- User pain points (e.g., high cart abandonment)
- Business impact (e.g., increasing ARPU)
- Feasibility (e.g., engineering capacity)
Step 3: Write SMART Key Results
Each KR should be:
- Specific (clear target)
- Measurable (track via analytics)
- Achievable (ambitious but realistic)
- Relevant (ties to the Objective)
- Time-bound (quarterly)
Bad KR: “Improve user experience.”
Good KR: *”Increase 30-day retention from 25% to 35% by Q3.”*
Step 4: Assign Ownership
- Each KR should have a DRI (Directly Responsible Individual) – e.g., PM, Eng Lead, Data Analyst.
3. Track & Review OKRs
| Tool | Use Case |
|---|---|
| Google Sheets | Simple tracking |
| OKR Software (Weekdone, Gtmhub) | Automated dashboards |
| Jira/Asana | Tie KRs to tasks |
Weekly Check-ins:
- Are we on track?
- Do we need to adjust tactics?
End-of-Quarter Review:
- Grading (0.0–1.0 scale):
- 0.7–1.0 = Green (Great progress)
- 0.4–0.6 = Yellow (Needs improvement)
- 0.0–0.3 = Red (Missed target)
4. Common OKR Mistakes to Avoid
❌ Too many OKRs → Focus on 3-5 max.
❌ Vague Key Results → Use exact metrics.
❌ Set-and-forget → Review weekly.
❌ Top-down only → Involve teams in drafting.
5. Product OKR Examples
Example 1: Improve User Engagement
- Objective:Make our app indispensable for daily productivity.
- KR1: Increase DAU from 50K to 75K.
- KR2: Boost avg. session duration from 3 to 5 mins.
- KR3: Achieve 20% week-on-week sharing growth.
Example 2: Monetization
- Objective:Increase premium conversions.
- KR1: Grow paid users from 5% to 10% of MAU.
- KR2: Reduce checkout friction (CVR up by 15%).
- KR3: Launch 2 new pricing tiers.
6. Advanced Tips
🔥 Stretch Goals: Set 1 “moonshot” OKR (e.g., “10X feature adoption”).
🔥 Cross-Team OKRs: Align product + marketing + engineering (e.g., “Reduce support tickets by improving UX”).
🔥 Public OKRs: Share company-wide for transparency (e.g., Notion OKR board).
