Cascading OKRs through multiple layers (company to department to team to individual) often results in "OKR theater" where the connection to business impact is lost. Instead, an individual product manager's goals should be no more than one link away from a core business objective that leadership cares about.
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When a product improvement is meant to benefit another department (e.g., reduce support tickets), don't just ship it and hope for the best. Create a joint, aligned goal with that department's leader. This ensures they are accountable for accruing the benefit (e.g., reallocating saved capacity) and solidifies your impact.
Product leaders often feel pressure to keep executive discussions confidential. However, effective leaders break this norm by immediately sharing and translating high-level business goals for their teams. This transparency empowers individual PMs to connect their daily work to what truly matters for the company's success.
It's not enough to improve engagement or NPS. A product manager's job is to understand and articulate how that metric connects to a financial outcome for the business. Whether it's growth, margin, or profitability, you must explain to leadership why your product goals matter to the bottom line.
With only 12% of product teams finding profit-centric goals rewarding, leaders must reframe work. By connecting business outcomes to the emotional, human progress customers are trying to make, leaders can inspire teams far more effectively than with revenue targets alone.
Executives and investors care about lagging business indicators like ARR and churn, not leading product indicators like user engagement. It is the PM's job to connect the dots and clearly articulate how improvements in product metrics will directly result in moving the high-level business needles.
It is a product manager's job to understand the company's financial goals. Instead of waiting for leadership to share this information, great PMs take ownership by actively seeking it out. This means building relationships with finance and other departments to understand the metrics that truly matter to the business.
To solve misalignment, the company cascaded OKRs from the CEO down. Critically, regional leaders were made 'champions' of key pillars like user acquisition. This gave them ownership and a direct voice in shaping product solutions, turning potentially adversarial relationships into collaborative partnerships.
Most business struggles stem from a misaligned or forgotten North Star Metric (NSM). A successful framework aligns the entire company by ensuring all OKRs ladder up to a single, durable NSM, with KPIs serving as health checks for those OKRs. This creates a clear hierarchy for decision-making and resource allocation, preventing strategic drift.
A common OKR failure is assigning teams high-level business metrics (like ARR) which they can only contribute to, not directly influence. Success requires focusing on influenceable customer behaviors while demonstrating how they correlate to the company's broader contribution-level goals.
Don't build a feature roadmap and then write OKRs to justify it. Instead, start with the outcome you want to achieve (e.g., "move metric X to Y"). This frames all features as experiments designed to hit that goal, empowering teams to kill features that don't deliver value.
