okr-sales

OKRs for sales are a way of managing and prioritizing goals for optimizing business processes and setting goals. With them, it is possible to achieve desired advances with more efficiency and agility, in addition to bringing several benefits to the team itself.

Due to its versatility and organizational impact, this methodology is used in companies of different sizes to assist in achieving objectives. So, to help you understand if it’s a method that fits your business and can bring you advantages, we’ve put together this article.

In the next paragraphs, you will check the following subjects:

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  • What is OKR?
  • Examples of OKR for Sales
  • What are the benefits of the OKR methodology for sales?

By knowing more about these topics, you will have the necessary knowledge about the topic to evaluate the application in your company. Good reading!

What is OKR?

OKR stands for Objectives and Key Results and is a methodology used for goal setting, which helps achieve objectives by aligning a team’s focus.

This method was created by Andrew Grove, who was president of Intel but gained popularity and recognition with John Doer, who was primarily responsible for implementing OKRs at Google, in 1999. A curiosity is that even today Google uses this methodology, and it was a success, wasn’t it?!

In fact, John Doer himself has a TED Talk in which he speaks because the key to success is setting the right goals. Look:

But how is this procedure structured? How to use it to assist in prioritizing and setting goals? For this, it is necessary to understand the concept behind the terms “Objectives” and “Key Results”. Also, a third point that is not present in the acronym can also be very important. Check out:

Goal

The idea here is literally what the name means: setting a goal. However, it must be qualitative and clear, without metrics and technical characteristics, so that everyone can understand the goal being pursued.

Furthermore, an ideal goal is one that motivates the team because it is a challenge. So think of ways to define it in a way that those involved are engaged.

And another point is knowing how to prioritize a goal. This is because a company or an industry will always have many goals that can be achieved, but it is not possible to conduct them all at the same time. Therefore, know how to prioritize what is most important for the current context and try to maintain at most two to three goals simultaneously.

Term

Although this term is not present in the method name, setting a deadline can be essential for the team to be efficient on the way to achieving the objective. This is because the team tends to be motivated and strive to deliver the expected results by the established date.

So, try to analyze what efforts will be needed to achieve the desired goal and set a realistic and coherent deadline. As a matter of fact, it is essential that the given time is adequate to reality. Putting time in too tight can bring less than satisfying results and overwhelm the team.

Generally, annual OKRs are defined, divided into quarterly OKRs – so there is time to review the progress of the objectives every three months and make the necessary adjustments.

Key results

Now metrics kick in! Key results are a set of parameters that will help quantify the progress made towards achieving the main objective. They can be thought of as minor goals because by meeting each key result you will be closer to the goal.

In general, it is customary to establish between two to five key results to reach each objective. Spending that amount may not be interesting for your team. That’s because a large number can lead to confusion and, in a way, distract from the main objective.

Another point of attention is the documentation. It is critical to document all progress made to reach a key outcome. This will help keep the team engaged and focused on achieving what has been established, as everyone will be up to date on progress and will know their role in achieving the goal.

Examples of OKRs for sales

Now that you understand the concept of Key Objectives and Results, let’s look at some examples of sales OKRs to make it clearer how to apply this methodology in the commercial sector. Check it out below!

Goal 1: Lead Generation

Objective: Increase inbound lead generation by 30%

Key results:

  1. Produce 8 monthly blog content
  2. Develop 2 materials for attracting contacts per month
  3. Get 75% of new contacts within ICP
  4. Improve conversion rate in nutrition funnels by 15%

Objective 2: Qualification of Leads

Objective: Improve the qualification of leads, reaching 30% utilization

Key results:

  1. Create a more accurate sales funnel by reviewing the current one
  2. Find a suitable CRM system to gather more information about leads and centralize it
  3. Develop a new qualification stream
  4. Implement 2 new prospecting channels

Objective 3: Lead Prospecting

Objective: Increase by 20% the number of customers gained by active prospecting

Key results:

  1. Increase the number of activations per seller by 30%
  2. Increase the number of customers gained by calls by 5%
  3. Increase the number of customers gained by social selling by 30%

Objective 4: Customer Loyalty

Goal: Reduce churn rate by 15%

Key results:

  1. Get NPS Score 85
  2. Carry out onboarding process with 100% of new customers
  3. Reduce turnover in Customer Success by 10%
  4. Monthly follow up with 90% of the customer base

Remember that these are totally hypothetical situations, created just to exemplify what an OKR for sales might look like.

What are the benefits of the OKR methodology for sales?

OKRs for sales can bring several benefits to a sales team, especially the following:

  • Engagement and a sense of belonging: because everyone is free to contribute to the definition of the sales OKRs, people will have the feeling of belonging to that group, regardless of their position. In addition, they will also have more motivation to carry out the tasks;
  • Transparency and knowledge of context: Documenting progress lets everyone know what’s happening, even if someone has just joined the team. This helps to clarify the role of each person in achieving the objective, that is, it also contributes to the feeling of belonging and motivation.
  • Setting priorities: one of the principles of the OKR methodology is to help prioritize objectives. Therefore, the sales sector can have a better view of which goals should be prioritized;
  • Greater productivity: due to the priorities established with the sales OKRs, the team is able to work with more focus and understanding of the processes necessary to achieve the defined goal.

Learn more about goal setting

In this article, you got to know an important tool to help define and prioritize goals. However, there are other strategies and knowledge that can further enhance your ability to manage goals.