🎙️ Pod Shots

Today we cover a recent Tim Herbig workshop where he discussed the practicalities of developing a product strategy and translating it into quarterly OKRs.

⚒️ From Product Strategy to OKRs

Tim Herbig

🎥 Watch the full episode here 

📆 Published: April 12th 2024

🕒 Estimated Reading Time: 2 minutes. Time saved: 48 minutes🔥 

🎯 Clarifying the Core Value of Product Strategy

Understanding the Fundamental Value

Product strategy should fundamentally guide the product team on what opportunities to decline, focusing efforts over a period of 6 to 18 months. This strategy is typically informed by user and market data along with company priorities.

Key Insights from the Field

The essence of a strong product strategy lies not in adhering to rigid frameworks but in crafting a strategy that acts as a genuine guide. As Tim explains, the goal is not to follow a set path but to adopt principles that allow for flexibility and strategic refusal.

Practical Tip: Tim recommended articulating a strategy that enables teams to say no to things over a specific time frame, based on user data and company priorities.

🛠️ The Building Blocks of a Robust Product Strategy

Integrated Choices and Winning Moves

A robust product strategy involves making integrated choices that align with the company's vision and goals, ensuring coherence across all levels of strategy—from company to product to features.

Atomic Strategy Components

Breaking down the strategy into 'atomic' components can simplify the process. Key components to consider are:

  • Strategic Narrative: Why us? Why now?

  • Playing Field: Who are we serving?

  • Winning Moves: How will we reach and serve them effectively?

Practical Application

Utilising these components, product teams can define their unique strategy narratives, identify their target market, and determine the distinct actions that will enable them to outperform competitors.

📈 From Strategy to OKRs: Bridging the Gap

The Role of OKRs

OKRs serve as a bridge between high-level strategy and daily tactics, allowing teams to measure progress towards strategic goals through specific, actionable objectives.

Developing Effective OKRs

Effective OKRs are realistic, influenceable, detectable, linked, and linked to evidence-based metrics. They should be revisited and adapted regularly to reflect ongoing learnings and adjustments.

Practical Tip: Tim suggested a transition from lagging proxy metrics to leading indicators to drive progress towards strategic goals. He recommended reverse engineering the customer journey to identify measurable actions or behaviours that lead to changes in lagging indicators.

🎭 Case Study: Implementing Strategy at AutoCircuit

Scenario Overview

Using the fictional example of AutoCircuit, a luxury car marketplace, Tim illustrates how to apply these concepts in practice. The company focuses on expanding to the US market and differentiating through exceptional service.

Strategic Choices

For AutoCircuit, key strategic decisions involve choosing specific customer segments (e.g., luxury car owners in the US) and defining unique selling propositions that align with overall company goals.

Translating Strategy into OKRs

Tim also discussed potential leading indicators such as the number of registered US sellers, number of started intake processes, and number of cars vetted. These leading indicators would drive the lagging indicator of the number of ready-to-sell cars on the platform.

By identifying specific metrics that reflect the success of their strategic choices, such as the number of luxury cars listed from selected segments, AutoCircuit can set relevant OKRs. These OKRs help track progress and make necessary adjustments to align with their strategic vision.

Conclusion

Transforming product strategy into effective OKRs is not just about following a formula but about understanding and implementing a strategy that resonates with the company's goals and market dynamics. By focusing on strategic alignment, clear value propositions, and adaptable OKRs, PMs and leaders can ensure their teams are not only aligned but also primed for success.

Final Thoughts

Remember, the journey from strategy to OKRs is iterative and requires continuous refinement. Encourage open communication and regular feedback within your team to enhance the effectiveness of your strategic plans.

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or if you prefer, 🎥 Watch the full episode here 

📅 Timestamps:

  • [00:01:04] Product strategy fundamental value.

  • [00:05:14] What product strategy is.

  • [00:07:31] Fundamental product strategy patterns.

  • [00:10:10] Product strategy funnel concept.

  • [00:15:59] Company and team context.

  • [00:19:23] Unique product strategies for segments.

  • [00:22:16] Differentiating with no touch vetting.

  • [00:25:22] Product OKRs and strategy.

  • [00:29:48] Strategy choice and metrics.

  • [00:33:18] Specific metrics for strategy goals.

  • [00:38:08] Potential leading indicators.

  • [00:41:41] Understanding buyer emotions vintage cars.

  • [00:44:11] Changing company culture mindset.

  • [00:49:03] OKRs in traditional companies.