Setting smart product goals is a vital skill for any sensible SaaS owner or product manager to get right. Show
In this article, we’re going to explore what makes an effective product goal, the difference between goals and product initiatives, how to set them and make them work with your product backlog, and more. Ready to get started? Let’s dive in! TL;DR
What are product goals?Product goals are clear, tangible objectives that break down exactly how you’ll realize your product vision. Effective product goals are specific, set out clear timescales, and importantly, are measurable (i.e. you know if you’ve achieved them or not). Product goals are objectives, while product initiatives are the themed projects you complete to meet those objectives. Product goals translate the product vision into clear, measurable targets. They define exactly what your product will achieve, the time frame for achieving it, and how you’ll measure it. What are product initiatives?Product initiatives are specific projects – usually focused around a specific theme or area – that align with your product vision, and in their entirety help you meet your product goals. A useful way of thinking about initiatives is to picture the broad themes of work necessary to move your product forward. Product goals and product initiatives share many elements in common. Importantly, they both help establish a connection between your overarching vision and tactical implementation. However, they do this in different ways:
In a nutshell: goals flesh out and break down your vision, and initiatives set out the work necessary to achieve your goals and realize that vision. Why using goals and initiatives can make a differenceSo why is using goals and initiatives such an important activity for product managers to get right? Primarily, because they help you in what should be your primary mission: to release as much value to your users as frequently as possible. Using goals and initiatives will enable you to:
Product goals and initiatives examplesLet’s take a look at two tangible examples to help bring goals and initiatives to life. Product managers’ goals and initiatives exampleProduct goalIncrease our Net Promoter Score (NPS). Initiatives
Marketing teams and sales teams’ goals and initiatives exampleProduct goalLaunch a new SaaS feature by the end of the financial year. Initiatives
How to set product goals and initiativesNow we’ve taken a look at some examples, let’s explore how to set product goals and initiatives of your own. Remember, your product goals should be a tangible representation of your product vision. That means they need to consider both user needs, business goals, and stakeholder requirements. Here’s a handy goal-setting framework to bear in mind.
Start with the product visionEvery product goal you set should directly connect to your product vision. Start from that foundation to craft effective goals. That means you can forge a powerful link between the goals you’re setting and how they contribute toward wider business objectives. Remember though, it’s not purely about what the business needs. Each of your goals should reflect a careful balancing act: both organizational demands, and the needs of the users you serve. Understand the user and business goalsWithout understanding the context – your users, the organization, and the landscape you’re operating within – you’ll struggle to set meaningful goals. While product vision helps to set the direction, you’ll need to use insight about your users to make your goals specific enough to help. Use interviews, product usage data and feedback to refine the problem you’re trying to solve. Tracking product usage data in-app. Get a Userpilot demo to see how.Remember, setting goals shouldn’t be something product managers do in isolation. The broader the input – from your stakeholders, different members of the product team, and your users – the more comprehensive and well-rounded they’ll be. Set specific product goals that will solve user problemsYou’ve started with the vision, you’ve considered the needs of the business and your users… What’s next? You need to make sure your goals are SMART (Specific, Measurable, Actionable, Realistic, and Time-Bound). Interrogate your goals using the SMART framework: it’s a surefire way to ensure they’re detailed enough to be useful.SMART goals have persisted in the world of project management for years precisely because they’re so effective. The more detailed your goals, the easier it’ll be to measure your progress toward them… and that’s how you’ll figure out whether you’re actually unlocking value when you achieve them. Define initiatives that will drive successAll of that groundwork puts you in a fantastic position to define meaningful initiatives. If goals set out what you’d like to achieve and why then initiatives help you set out how you’ll get there. Organize work thematically, and then use that to break down smaller tasks and activities that you can prioritize effectively (and regularly) in your product backlog ready for your development teams to start working on. Goal-setting frameworks you can use to set smart goalsOKRs – objectives and key results – are a ubiquitous goal-setting methodology in the world of product management. They can be extremely effective, but there is a range of other techniques to draw from you might not have heard of. Let’s explore some of them here. B.H.A.G – Big Hairy, Audacious GoalsB.H.A.Gs are an interesting framework designed to help inspire, motivate and engage teams towards ambitious product goals. This sort of goal should be deeply aligned with the core objectives of your organization, and ideally have longer-term horizons. It’s worth remembering that if a BHAG can be achieved in a short space of time, it’s likely nowhere near ambitious enough. One of the creators of this technique, Jim Collins, famously said:
A drawback to this framework is the ‘big picture’ means there’s not a lot of room for technical complexity to be broken down. That can (in some situations) overwhelm product teams. BSQ- “think big, act small, move quickly”The BSQ framework consists of three main components:
This framework is versatile and effective. It enables you and your team to zoom out and think strategically, without losing sight of the details. Locke and Latham’s 5 principlesThis framework sets out five fundamental principles they believe underpin effective goals:
OKR method for setting product goals and initiativesOKRs are an industry standard. In this section of the blog, we’ll run through each element of the OKR framework (and how they map onto product initiatives and goals). OKRs help you define where you want to go, how you measure success, and the steps along the way.What are the objectives in the OKR framework?Objectives in the OKR framework are high-level goals that set out a specific outcome you’d like to achieve. The business-based example below, ‘Grow user base’, is broad but effective. Another common SaaS objective might be ‘Boost MRR’. What are the key performance indicators (key results)Key results map directly onto your objectives and are designed to enable you to track specific and tangible progress toward achieving them. By tracking and analyzing specific key results, it’ll quickly become clear whether you’re taking the right steps or not. How product goals impact the product backlogEffective backlog management is a key skill for product managers. Your backlog should represent a granular breakdown of all the features, ideas, investigations, maintenance, and activities necessary to realize your product vision. You can see how goals can have a huge impact on the size and shape of your backlog: they help inform the priority of specific items and make decisions on what you’re going to build first (and why). Goals also work hand in hand with your product roadmap: these are typically higher-level documents that set out your strategic vision for the product. A common format is now, next, and later: you might set out the key initiatives you’re hoping to deliver according to these broad time horizons. As an example, if you have a product goal to improve user experience by enhancing conversations, then you might pull an item forward on your roadmap to tackle it sooner (and in the background, start fleshing out the more granular level of detail necessary to actually implement the work). Your roadmap is an effective tool for aligning your team and communicating with stakeholders.ConclusionThat’s been a zoom through the exciting world of product goals and initiatives. Hopefully, this article has given you a framework to:
Want to get started with launching initiatives that help you meet your goals? Get a Userpilot Demo and see how you can get started today. Which theory assumes people are intrinsically driven to attain fulfillment and psychological growth?SDT (Deci and Ryan, 1985; Ryan and Deci, 2000) posits that fulfillment of three basic innate, human psychological needs (autonomy, competence, and relatedness) is necessary for optimal human functioning.
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