How Successful Product Managers Set and Crush Their Metrics

In my tenure as the leader of the Product Strategy team at FOX, I set sail on an intricate journey. The products my team worked on – FOX SPORTS, FOX NOW, and FOX NATION –? were like different islands, each with its unique challenges and triumphs. But the tides were changing. The industry was evolving, and we needed a fresh approach to measure our success and align our team efforts.

Compounding these issues was a growing misalignment within our team. We worked hard but didn’t always share the same direction. Our objectives were unclear, and our priorities were scattered. We served as several teams within one, navigating choppy waters internally.?

Faced with these challenges, I turned to OKRs and Goal Trees. These twin tools became our compass and map. The Goal Tree visualized our objectives, breaking them down into manageable branches of metrics and initiatives. The OKRs, on the other hand, brought alignment, ensuring each team member was working towards the same key goals.

Implementing these methods, we faced tough discussions and doubtful moments. But as we labored over our new success metrics, something remarkable happened. The Product team began to move in sync, our goals began to align, and most importantly we started driving new product initiatives and features based on a deep understanding of what we need to improve and in which order a.k.a priorities. Setting the right success metrics was the lighthouse that steered us through stormy seas and can do the same for any product manager willing to chart this course.

So, how do successful product managers set and crush their metrics? It's by navigating the path I did at FOX. Set the right and actionable metrics that align with both business goals and customer needs. Offer clear direction and measurable outcomes. Track progress and make informed decisions, steering teams toward achievement and impact.

Now, let's dive into the specifics of setting and crushing your product metrics, drawing from the lessons I learned in my career.

Let’s Get Started

As a product manager, your responsibility extends beyond delivering a successful product. It involves understanding your customers' needs and driving business growth. But how can you ensure you're achieving your goals? The answer is simple: by setting actionable product metrics.

But with so many different metrics to choose from, how do you know which ones to focus on? And how do you communicate these metrics to key stakeholders and apply them effectively to your product?

What makes a success metric actionable? It aligns with your business goals and customer needs yet can point you in the right direction to decide what to do next. Unlike superficial metrics that might be cool and buzzy, they are not very helpful for product managers and leaders.

Why It's Important to Set the Right Success Metrics?

Success metrics are the key performance indicators (KPIs) that you use to measure the success of your product. They can be anything from user engagement and retention rates to revenue and profit margins. Setting the right success metrics is important for several reasons:

• Staying focused on your goals and prioritizing your efforts
• Measuring the impact of your product on the business
• Identifying areas for improvement and optimizing your product strategy
• Communicating your product's value to key stakeholders and gaining support for future initiatives

How to Set the Right Success Metrics?

When setting success metrics for your product, it's important to choose metrics that align with your business goals and are actionable, measurable, and relevant. Here are some tips to help you set the right success metrics:

1. Envision Your Product's Future: Begin by crystallizing your product's vision. Ask yourself: What problem is your product addressing? What is the long-term impact you aspire to create?
2. Set Concrete Objectives: Once your vision is clear, identify the product objectives. These are the stepping stones that will guide you towards your vision. Essentially, they help you monitor if you're on the right path toward your end goal.
3. Key Results: Your Success Indicators: Next, identify the Key Results. These are the tangible metrics that act as signposts of success for each of your objectives.
4. Uncover Proxy Metrics: Finally, delve deeper into your Product User Experience (UX) to identify the specific areas or touchpoints that can alter your Key Metrics. Assign a suitable metric to each of these areas – these are your Proxy Metrics, indirect indicators that reflect the performance of your Key Metrics and they get you closer to deciding what you should work on next.

Goal Tree?

Goal Tree, which includes OKRs (Objectives and Key Results), is a powerful tool for setting and tracking product performance. It provides a visual representation of your objectives and key results, with each branch representing a different metric or KPI. The ultimate goal is at the top of the tree, with subgoals branching out below it.

Using goal trees can help your product team stay focused on the most important metrics and objectives, and can help ensure that everyone is aligned around the same goals. By breaking down your goals into smaller, more manageable sub-goals, you can track progress more effectively and make adjustments as needed.

One example of a company that has successfully used goal trees is Salesforce. Their goal tree includes objectives such as increasing customer satisfaction and improving product quality, with key results such as increasing customer retention and reducing customer support tickets.

Comment below on the post, and I'll DM you the Goal Tree template using Miro to apply it on your product!

How to Communicate and Share Your Success Metrics

Once you've identified your success metrics, it's important to communicate them effectively to the team and stakeholders. This includes everyone from your product team and executive leadership to your investors. Here are some tips for sharing your success metrics:

• Use data visualization tools and dashboards to present your metrics in an easily understandable format
• Provide context for your metrics by explaining how they align with your product vision and key objectives
• Tailor your messaging to your audience. For example, your customer-facing messaging might focus on user engagement and satisfaction, while your executive messaging might focus on revenue and profit margins
• Encourage feedback and collaboration from your stakeholders. How can they help you achieve your goals and optimize your product strategy?

Created the Goal Tree, now what?

Setting success metrics is just the first step. To make them effective, you need to apply them to your product in a meaningful way. This involves tracking your metrics over time, and analyzing trends and patterns using segmentation, cohorts, and workflow analyses. Here are some tips for applying success metrics to your product:

• Use Goal Tree to connect your strategy with your roadmap by identifying new product initiatives to achieve the product objectives. Notice the Initiatives section at the bottom of the Goal Tree template.
• Prioritize these initiatives based on value (impact)
• Generate opportunity hypotheses (specific features and changes) under each initiative
• Prioritize the opportunity hypotheses based on value and effort
• Try to validate the prioritized hypotheses before committing to building entirely?
• Monitor your metrics regularly and track progress over time
• Use data analysis tools and techniques to identify correlations and insights and performance after launching the new product initiatives?

Best Tools and Recommendations for Setting and Applying Product Metrics

There are many tools available for setting and applying product metrics. Some popular options include Google Analytics, Mixpanel, and Amplitude. These tools allow you to track key metrics such as user engagement, retention, and conversion rates.

When choosing a tool, consider your specific needs and the metrics you want to track. Look for tools that are easy to use and integrate with your existing workflow.

Key Takeaways

1. Harness the power of actionable success metrics: Align your metrics with business and customer objectives, driving strategic product management. Act now to review your current metrics and ensure they meet these criteria.
2. Foster unity and clarity with OKRs and Goal Trees: Utilize these tools to visualize goals, unite your team, and direct decisive action. Begin today by introducing these strategies to your team.
3. Communicate, apply, and adapt: Amplify stakeholder engagement through transparent communication of success metrics, and consistently monitor and apply these for strategic product development. Start by scheduling regular updates and reviews with your stakeholders.

Do This Now: Apply On Your Product

1. What is your product vision you’re measuring against?
2. How do you know you are getting closer to achieving your vision?
3. Do you feel ready to measure success the right way for your product? Apply the Goal Tree framework to your product.
4. Who are your stakeholders and what is the best way to present the Goal Tree and get their feedback?

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Comment below on the post, and I'll DM you the Goal Tree template using Miro to apply it on your product!