I was looking for the ways in which we can align roadmap with OKRs and this talk has given a perfect answer to it. Great content. Thanks Product School and Yogesh Ratnaparkhi.
Great content! I would like to understand however why he talks about the Pareto principle (80/20 rule) in that way. Normally what that means is that 80% of the result comes from 20% of the causes. For feature prioritisation it could be linked to "building for impact" or building for your superusers (that 20% that delivers 80% of the value) but I struggle to understand the way he uses it :/
Thanks, Francesco! You are right the 80/20 is one of the principles to drive prioritization. Identify opportunities that would make the most impact. Hope that helps.
What do you do with bugs? For example, if your OKR is "grow revenue", and there is a bug in the backup system, so not directly related to an OKR, yet important.
i guess it depends on the priority of the bug. a priority 1 and 2 bugs need to be addressed immediately. But p3 and p4 could be postponed or added to the backlog
Pablo, OKRs are meant to help focus on strategic, high-priority initiatives. If one of your OKRs is "improve quality of our product by 80% measured by the number of bugs reported", then bugs become a metric to track that KR. It varies with the level of the OKR (org wide vs team wide).
OKRs generally measure leading indicators that could possibly signal business impact. Therefore an OKR measures the outcomes (new or changes in current behavior that could help a product team meet their objective) that influence things like revenue, market share, adoption, customer satisfaction and other lagging indicators usually found in KPIs or executive dashboards.
Hello ChiHotDog1, thank you for your comment. OKRs are used to break larger, fuzzier goals into measurable outcomes. KPIs are metrics to track overall business health. Not all KPIs are OKR-worthy. Example,COGs (cost of goods sold) is an important KPI but it may not be an OKR if cost is not a priority for that planning period.
When it comes to writing KRs, I imagine it should include numbers to quantify. Like increase/decrease by X% in X time. Isn't it? Or am I missing anything here
Key results definitely should include some sense of directional change in an intended outcome. The objective is normally time bound, but KRs should be outcome-oriented (new or changes in current behaviors of a target segment), independently verifiable, directional in nature (increase or decrease in some behavior), measurable against a baseline, and aggressive relative to the time bound nature of the objective.
Ahmad, an OKR is one of the frameworks to form and communicate your strategy. In other words, your OKR is a tool to make your strategy measurable, drive accountability and build shared alignment. Hope that helps.
