Introduction
A well-crafted Product Goal is the guiding star for a Scrum Team(s), transparently aligning efforts and value delivery.
As a Product Owner, one of the most impactful responsibilities is to craft and explicitly communicate Product Goal.
Product Goal is not a checkbox in the Scrum Framework, rather it’s foundation for building alignment, enabling transparency, and focusing the Scrum Team’s effort toward meaningful outcomes.
Did you know?
60% of teams fail to achieve optimal outcomes because they lack a clearly defined long-term goal.
In this blog, I’ll break down how to craft a Product Goal that inspires, aligns and eliminates waste in your Scrum Team and organization.
What Is a Product Goal?
According to the Scrum Guide: “The Product Goal is a long-term objective that guides the Scrum Team’s work on the product”. It helps to bridge the gap between organization’s strategic vision and the team’s tactical activities.
Product Goal gives meaning to the Scrum Team’s work, helps to order and maintain healthy Product Backlog and serves as a “north star” for Evidence-Based decision making.
Why is a Product Goal Crucial Element of Scrum?
A well-crafted Product Goal offers number of benefits for a Scrum Team and larger organization:
- It creates focus by helping the Scrum Team to isolate only what truly matters (it creates Lean thinking)
- Product Goal creates alignment so everyone (Scrum Team, Stakeholders, Organization) understands the shared objective
- Motivates the Scrum Team to work on something meaningful and impactful
- By being transparent, it enables Stakeholders and Organization to see the value being created
- It creates commitment in a Scrum Team to long-term objective and makes efforts measurable
Without a strong and transparent Product Goal, Scrum Team risks wasting their time and effort on work items that don’t contribute to delivering real value to end-users.
5 Steps to Crafting a Powerful Product Goal
Step #1 – Start with the Product Vision
Product Goal should directly support the broader goal of your product or service. Ask yourself as a Product Owner questions such as:
- What do we want to achieve with this product/service?
- How does this goal contributes to our long-term vision of the organization?
Example: If your Product Vision is “to increase the productivty of small teams”, your Product Goal might be – “Implement automation functionalities to reduce administrative tasks by 50% within the next six months”.
Step #2 – Focus on Outcomes, Not Outputs
A good Product Goal isn’t a checklist of work items, it’s a clear focus on the value you want to deliver to stakeholders/end-users.
The difference between outcomes and outputs looks like this:
- Output: “Add a new search functionality”
- Outcome: “Enable users to find relevant information 30% faster”
Pro tip: Whenever defining a Product Goal, ask yourself: What change do we want to achieve for our users or business?
Step #3 – Define Specific and Measurable Goals
Vague goals like “Improve customer satisfaction” often lead to confusion and misalignment. Instead, include measurable aspects:
- Increase NPS by 15% in the next quarter by optimizing customer services
When the goal is measurable, team has a clear method for tracking progress and success.
Step #4 – Ensure the Goal is Achiveable and Time-bound
The goal should be ambitious but realistic. Add a timeframe to ensure accountability and drive focus.
- Bad example: “Become a market leader”
- Good example: “Achieve a 20% market share by the end of next year”
This approach provides the team with concrete direction and encourages proactive involvement and commitment.
Step #5 – Involve the Scrum Team and Stakeholders in the Process
The Product Goal isn’t solely the Product Owner’s accountability. Involve Developers and the Scrum Master to ensure technical feasibility and shared understanding
Real-World example: During the Sprint Review, the Scrum Team can collectively inspect progress toward the Product Goal and decide whether adaptation to goals or priorities are needed.
Frequently Asked Questions
Question: How often should the Product Goal be reviewed?
Answer: While the Product Goal is future state of the Product, it should be frequently inspected and adapted during Sprint Reviews or Sprint Planning Events.
Question: Can a Scrum Team have multiple Product Goals at the same time?
Answer: Yes, but only one should be active at the time to create focus and commitment towards one thing at the time. Product Goal can be achieved or abandoned (if obsolete).
Conclusion
A powerful Product Goal is a crucial step in steering a Scrum Team toward success. Focus on outcomes, measurability and transparency with your Product Vision to create a Product Goal that insipires and delivers real value to end-users.
What challenges have you faced when defining Product Goal?
Share your experience in the comments below!
