Establishing Goals in the New Year: NCTs vs. OKRs
A Guide to Goal-Setting Frameworks for Product Teams in 2025
As product managers, starting the year with clear, actionable goals can set the tone for success. Looking ahead to 2025, the landscape for product managers will be shaped by an accelerating pace of innovation, the growing role of AI in decision-making, and the need to balance short-term execution with long-term vision.
Reflecting on the lessons I’ve learned from 2024, it's clear that setting specific, measurable, compelling, and targeted product and company goals is essential. In empowered product team setups, this enables the most effective outcome-focused decision-making through goal setting.
However, starting fresh with frameworks like NCTs or OKRs can feel daunting, especially when the stakes are high, and the expectations for precision and alignment have never been greater.
To address this challenge, it’s worth emphasising why structured goal-setting is indispensable in this era. Frameworks like NCTs inspire collaboration and strategic alignment, while OKRs drive measurable outcomes and accountability.
These tools not only help teams thrive but also ensure that roadmaps and strategies are rooted in clarity, purpose, and adaptability—critical qualities as we head deeper into 2025 with confidence and focus.
Two Tools of the Trade: NCTs vs. OKRs
Two of the most popular goal-setting frameworks in modern product management are:
NCTs (Narratives, Commitments, Tasks) and
OKRs (Objectives and Key Results).
Each offers distinct advantages, depending on your organisational needs, team dynamics, and strategic priorities. In this post, we’ll unpack these frameworks, compare their strengths, and explore examples of companies that use them effectively.
NCTs: Storytelling Meets Accountability
What Are NCTs?
NCTs focus on defining:
A compelling Narrative;
Supported by concrete Commitments; and
Broken into actionable Tasks.
They’re designed for teams that thrive on clarity and alignment with a shared vision. One useful tool in creating an effective narrative is to use Amazon’s Press Release method, which we dive deeper into below.
Example: Amazon’s Press Release
Amazon popularised NCTs by linking each goal to a "press release" or "future memo," a simulated document written as if the initiative were already successfully completed.
This approach was highly effective at the time because it allowed teams to visualise the end goal, align on what success looked like, and work backward to identify necessary steps, creating a shared sense of purpose and clarity.
Elements of a Press Release
When crafting a Press Release, consider the following components:
Clear Summary: Provide a concise overview of the product and the key benefits it delivers. This section should captivate readers who might only skim the document.
Problem Statement: Highlight the primary issue or gap that the product addresses, contextualizing its relevance.
Elegant Solution: Describe how the product uniquely and effectively resolves the outlined problem.
Spokesperson Quote: Include a quote that encapsulates the team’s vision and enthusiasm, as if responding to a media query.
Easy Onboarding: Detail how users can start using the product and the straightforward steps involved.
Customer Testimonial: Share a hypothetical customer experience that showcases the product’s benefits in action.
Call to Action: Conclude with a compelling invitation for the audience to engage with the product further.
In addition to the format, here are some additional guidelines:
Keep it simple.
3-4 sentences for most paragraphs.
Accompany the press release with a customer and stakeholder friendly FAQ.
For instance, in launching Prime, the narrative might have been something like this:
Sample (shortened) press release with sample statements:
Clear Summary: Prime is a subscription service designed to redefine convenience by offering free two-day shipping and exclusive perks, saving customers time and money.
Compelling Problem: Customers often face delays and high costs for shipping, making online shopping less efficient than desired.
Elegant Solution: Prime provides fast, reliable, and cost-effective shipping, paired with additional benefits like streaming services and exclusive deals, creating an all-in-one convenience solution.
Spokesperson Quote: "With Prime, we’re transforming how customers experience online shopping. It’s not just a service; it’s a commitment to making their lives easier," said [Your Name], Amazon’s spokesperson.
Easy Onboarding: Signing up for Prime is as easy as visiting our website, selecting the Prime membership option, and enjoying instant access to free two-day shipping and other benefits.
Customer Testimonial: "Prime has completely changed how I shop online. I can order what I need and get it quickly without extra shipping costs – it’s a game-changer," said a satisfied Prime customer.
Call to Action: Start your free trial of Prime today and experience unparalleled convenience and value. Visit Amazon.com/Prime to learn more.
The NCT format would then be included, showing:
Commitments:
Launch Prime with free two-day shipping by Q4.
Achieve 80% on-time delivery by year-end.
Tasks:
Negotiate logistics contracts.
Build subscription management interfaces.
Strengths:
Inspires teams: by providing a clear and compelling vision that motivates them to rally around shared goals. This shared clarity helps teams see the bigger picture and understand how their work contributes to broader success.
Drives cross-functional alignment: by establishing a unified narrative that ensures different departments and stakeholders are working cohesively toward the same objectives. This reduces misunderstandings and siloed efforts.
Works exceptionally well for exploratory or big-bet initiatives: by fostering a sense of purpose and direction, particularly in ambiguous or high-risk scenarios. It encourages innovation and calculated risks by offering a structured framework to tackle uncharted challenges.
Challenges:
Stories: Requires excellent narrative skills.
Data: Can be difficult to quantify success.
There are some ways you can overcome the challenges, but it may require a bit more of your time when prepping the narrative for the company. The mitigations include:
Enablement: Invest in training sessions or workshops on storytelling and narrative development to enhance team skills.
Training: Pair narrative or story telling experts with product teams to co-develop initial NCTs.
Note: I’ve found tools such as the PipDeck Story Teller Tactics as a highly quick and effective way to craft compelling narratives that sell themselves!
Measurements: Use proxy metrics or qualitative success indicators (e.g., pulse stakeholder feedback via survey) to complement narratives where quantifiable data is unavailable.
OKRs: Laser-Focused Metrics
What Are OKRs?
OKRs originated at Intel in the 1970s, introduced by Andy Grove as a method to align teams and drive measurable progress. The framework gained wider popularity when John Doerr, a venture capitalist, shared it with Google, helping them scale effectively during their early growth years. Today, OKRs are used by companies like Google, LinkedIn, and Spotify to maintain focus and accountability.
For more on OKRs and examples from real world experience, explore John Doerr's book, Measure What Matters. It’s a fantastic read and a foundational PM book for all objective setters (everyone!).
OKRs combine high-level Objectives with measurable Key Results to drive focus and accountability. They’re a favourite of fast-paced, metric-driven organisations, but can often also be a hindrance when implemented poorly.
Why Are OKRs Often Implemented Poorly?
While OKRs have proven their value in driving alignment and focus, they are often implemented poorly due to a lack of understanding of their core purpose. The framework is intended to create clarity and alignment, but it can devolve into a simple checklist of outputs, rather than focusing on meaningful outcomes that align with strategic goals.
Examples of Poor OKRs:
Objective: "Build a new landing page for the marketing campaign."
Key Result: "Complete the landing page design by March."
Issue: This OKR focuses on the completion of a task (output) rather than measuring the success or impact of the campaign (outcome).
Objective: "Improve team collaboration."
Key Result: "Hold 10 team meetings this quarter."
Issue: The KR measures activity without demonstrating whether collaboration has actually improved.
To learn how to create effective OKRs that avoid these pitfalls, teams must ensure they connect Key Results to measurable outcomes that reflect progress toward meaningful objectives.
To learn how to create effective OKRs that avoid these pitfalls, teams must ensure they connect Key Results to measurable outcomes that reflect progress toward meaningful objectives. Creating a KPI tree, as discussed in my previous post: "The Key Elements of Product Strategy," can be a powerful tool here. By visualizing how each Key Result ladders up to broader strategic goals, teams can ensure alignment and focus.
The Key Elements of Product Strategy
This approach also helps in clarifying the link between individual contributions and overall company success, making goal-setting both actionable and inspiring.
Example: Google
Google famously adopted OKRs to scale effectively throughout its organisation. For their core business of online advertising, an effective OKR might be defined as follows:
Objective: Increase the efficiency and effectiveness of Google AdWords
Key results:
Increase click-through rate on Google AdWords by 15%
Reduce cost per click by 10%
Improve ad relevance score by 20%
Note: that these Key Results are more effective in an empowered Product team setup because they do not specify solutions or deliverables without outcomes. The outcomes are mentioned head-first, allowing autonomy for teams to define the best path to reach the desired outcome.
Strengths:
Provides measurable targets: that help teams clearly understand what success looks like and track their progress over time. This ensures alignment and reduces ambiguity in goal-setting.
Encourages prioritisation and focus: by requiring teams to identify the most impactful objectives and key results. This avoids distractions and ensures resources are allocated effectively.
Ideal for organisations that value data-driven decision-making: as it fosters a culture of accountability and evidence-based evaluation of progress.
Challenges:
Overemphasis on metrics can lead to short-term thinking: where teams prioritise immediate results over long-term strategy and sustainability. This can undermine the broader purpose of OKRs.
Risk of setting overly aggressive or irrelevant key results: results can either demotivate teams due to unachievable targets or misalign efforts with the organisation’s strategic goals.
Choosing the Right Framework
The choice between NCTs and OKRs depends on your goals:
Use NCTs when tackling complex, exploratory challenges that require storytelling and cross-functional buy-in.
Use OKRs for focused, data-driven initiatives where progress can be quantified.
For instance, a startup exploring product-market fit might prefer NCTs, while an established SaaS company optimizing churn rates might lean on OKRs.
Both frameworks are rather similar in that they specify large goals and ways to achieve them in different communication formats. To help you identify which one suits your company and culture better, start asking yourself some key questions:
For the case of using NCTs:
Are you launching a new initiative or exploring an uncharted market where ambiguity is high?
NCTs excel in scenarios where a clear and inspiring narrative can align diverse stakeholders around a shared vision.
Does your project require strong cross-functional collaboration?
The narrative component of NCTs helps bridge gaps between departments by providing a cohesive story that clarifies each team’s role in achieving the goal.
Is your goal to motivate and inspire teams to pursue bold, innovative solutions?
NCTs can energise teams by painting a vivid picture of future success and setting meaningful commitments.
For the case of using OKRs:
Are your goals clearly defined and supported by measurable data?
OKRs are best suited for teams that thrive on quantitative results and have well-established metrics to track progress.
Does your organisation emphasise accountability and efficiency in achieving targets?
OKRs drive focus by ensuring every team member understands their specific role in reaching key results.
Are you scaling or optimizing proven initiatives where precision and tracking are critical?
OKRs’ measurable nature makes them ideal for iterative improvement and operational excellence. you launching a new initiative or exploring an uncharted market?
Actionable Steps for Product Managers
Getting started with NCTs or OKRs can feel overwhelming, especially if your team or organisation is new to structured goal-setting frameworks. The challenge lies in choosing the right approach and ensuring that it aligns with your strategic objectives and team dynamics. Without guidance, teams may end up over-complicating the process or defaulting to poorly defined goals.
To simplify this journey, start with three simple steps to provide a practical starting point and ensure clarity and direction from the get-go:
Evaluate Your Context: Are you driving innovation or optimising existing processes?
Define Success: Is it about inspiring teams or achieving measurable outcomes?
Experiment: Are you able to test both frameworks in different time periods using the same team, for different initiatives, and adapt based on results?
Final Thoughts
Both NCTs and OKRs are powerful tools, but their effectiveness lies in thoughtful implementation. By understanding their differences and tailoring them to your needs, you can set your team up for success in 2025. Start the year with intention, and let your goals guide you to impactful outcomes.
What frameworks do you use to set goals? Share your thoughts below! 👇