Unlocking the Power of Purpose and Accountability in Product Teams
My journey with product teams began over a decade ago, and since then, I’ve had the privilege of working with numerous teams worldwide, from startups to established corporations. Through my experiences, I’ve identified two crucial elements that make or break a team’s success: purpose and accountability. Without a clear understanding of why their work matters, teams struggle to make informed decisions about creating value. Similarly, limited accountability leads to a lack of motivation and commitment from team members.
The Pitfalls of Traditional Goal-Setting
Unfortunately, I’ve often seen management set goals and expect teams to deliver without much input or collaboration. This approach typically leads to demotivation, lack of commitment, and mediocre results. So, how can we change this scenario for the better?
Introducing Management by Objectives (MBO)
MBO is a leadership style that empowers teams and individuals by setting goals collaboratively. It’s built on trust, strong collaboration, and a belief in individuals’ ability to manage themselves and reach goals without micromanagement. Unlike traditional hierarchical leadership, MBO focuses on crafting high-level plans together, leading to higher accountability and purpose.
How MBO Integrates with Product Management
Product management is inherently complex, and finding the right approach can be challenging. In traditional leadership styles, the C-Suite defines what needs to be done, and teams are forced to commit to it. This approach can lead to a fixed mindset, limiting experimentation and innovation. MBO, on the other hand, encourages teams to focus on outcomes, allowing them to explore different solutions and adapt to changing circumstances.
A Real-World Example of MBO in Action
Imagine a classic leadership objective: “Include product recommendations in the product detail page and cart.” In contrast, an MBO objective might be: “Increase basket size by 10 percent by the end of Q3.” The first approach forces a fixed solution, while the second encourages teams to explore different solutions to reach the desired outcome.
The 4-Step Process for Implementing MBO
To set up MBO, follow these four steps:
- Formulate Objectives: Collaborate with your team to craft objectives that align with your goals.
- Set a High-Level Plan: Define the immediate actions needed to reach the desired objective.
- Implement the Plan: Empower team members to take ownership and adapt to changing circumstances.
- Monitor Performance: Regularly evaluate progress, assess effectiveness, and make adjustments as needed.
The Importance of Monitoring Performance
Setting goals together is crucial, but it’s not enough. Teams need support and guidance to stay on track. Regular monitoring enables you to interact, pivot, or drop objectives as needed. The shorter the cycle, the faster you can correct issues and improve outcomes.
Making MBO Effective
One of the biggest challenges of MBO is balancing collaboration between leadership and individuals. To overcome this, use storytelling to involve individuals in crafting objectives. This creates a sense of ownership and accountability, leading to a leader-leader approach.
A Real-World Example of MBO in Practice
I worked with an agency in Brazil that audited stores nationwide. Our biggest challenge was effective route planning. The operations director came to our team, shared the challenges, and asked for our help. Together, we crafted an objective: “Cover 20 percent more stores in three months than we cover now.” We worked collaboratively to develop a high-level plan, evaluated progress regularly, and adapted to changing circumstances. We reached our goal, and everyone felt accountable for the objective.
Key Takeaways
Management by objectives is a powerful approach when done correctly. Remember to:
- Ensure employees understand the context before discussing objectives
- Let employees come up with high-level objectives
- Measure and monitor results regularly
- Focus on reaching the objective, not following the plan
By embracing MBO, you can unlock the full potential of your product teams, drive meaningful action, and achieve remarkable results.