How to Craft Your OKR Story to Drive Team Execution

Hello Product folks!

When I began teaching Product Management at a Princeton university workshop, I wanted to show how to write and communicate requirements clearly.

To illustrate the need for clear definitions and why communication skills are critical in product management, I used a different method.

I asked for two volunteers and gave one a simple task. Their task was to guide two distinct groups of students to draw the same image on the board without seeing the original drawing.

This exercise had two versions.

• In the first group, the ‘lead student’ with the drawing pen left the room and recorded their instructions. The other students used the recording to draw the image, with no further communication allowed.

• In the second version, the student with the drawing pen stayed in the classroom and provided live instructions, allowing ongoing communication.

Obviously, the second version produced better results, as real-time feedback was possible.

These students developed a hierarchical decision-tree language, linking the big picture, to pillars and then finally to the details, which is a powerful tool.

This method is useful for writing requirements and is crucial for defining OKRs effectively at the leadership level.

Here's why and how you can do it right.

Let’s dive in.

In Case You Missed it this week

👉️ Apple and OpenAI aren’t paying each other for ChatGPT’s integration into Apple devices. And that funny video…

👉️ Save hours per week in PRD creation with our Free AI PDR (beta)
👉️ Autodesigner 2.0 transforms text prompts into product designs and prototypes.
👉️ 40% of all global venture capital funding in May went to AI, again!
👉️ Cognigy develops AI agents to automate customer support
👉️ The Hidden Truth about AI Product Metrics (Part 2)
👉️ Navigating Your 3 Career Levels
👉️ Step-by-step guide to get started with AI for Product Managers

1- Too Many OKRs will kill your strategy

• I remember a few times when I engaged with different product teams during workshops and I asked how many OKRs they have.
  
  Often, they’d tell me they have a lot, sometimes close to 20 or more.
  

  This is usually a sign that something's off. And it won’t get better trust me.

  
  OKRs are supposed to help with focus and clarity. Having too many goals shows a lack of focus and makes it hard to prioritize for PMs.

  
  The sweet spot for OKRs is between 3 and 5.

  
  This forces you to think about what really matters.

  
  The reason for having so many OKRs is often because they're not set at the right level. They're too detailed and don't paint the bigger picture.
  
  It's like asking someone to draw a triangle without telling them it's part of a boat's sail.

  
  Try grouping your OKRs into bigger objectives or starting fresh by asking what the main goal is.
  

  You need a hierarchy of OKRs:

• 3-5 main ones, each broken down into 3-5 sub-goals, and so on.

  
  This creates a ladder that helps everyone see both the big picture and the details. (see the diagram below)
  

  

  Lab Inc

2- Everyone forgets their OKRs

• Your OKRs won't matter if people can't remember them. It's like having a list of company values on every meeting room wall that nobody actually follows.
  

  People need to recall the OKRs without having to check their lists constantly.
  
  The real progress happens when they think, not just when they do the work.

  
  To reach your goals, they need to be top-of-mind for everyone. If you have too many, people will be worried about the overwhelming list instead of focusing on what matters.

  
  Think about the number of things you can ponder in the shower – that's the clarity we're after here.

  
  People remember stories best. If you need to remember a list, create a story where those items fit in.

  
  A hierarchy in OKRs tells a strategic story that sticks in people's minds. For instance, aiming for an IPO means focusing on profitability, world-class processes, and market leadership.
  
  Eg. To achieve profitability, we're increasing ARR, optimizing costs, and expanding into new markets.
  

  This hierarchy continues until it makes sense to break it down by department.

3. Your responsibility as a product leader

• When your OKRs are clear, you can strategically allocate your resources. This means deciding how many people should work on each OKR, adding perspective to your resource planning.
  
  Clear OKRs also help when things get tough. If one project is taking longer than expected, you can decide whether to reallocate resources within the team or adjust other OKRs to prioritize this one.

  
  A hierarchy that provides context can lead to better solutions.
  
  Understanding the problem well leads to better solutions, especially when resources are limited.

  
  For instance, if you realize a certain feature is crucial for a conference demo but scalability can wait, you can shift resources accordingly.

  
  You won't always define everything explicitly upfront, but putting things in context helps everyone understand priorities and suggest solutions.

  
  Remember, stories bring people together, and your OKRs should tell a story.
  A clear hierarchy is key to achieving this.

Until next time…

4- Key Takeaways

Get 1% Better Every Day. Execution Matters Most!