A company’s sales force is supposed to be one of its most formidable forces. The team is always under pressure to meet targets. For a sales team, performance is all about beating previous targets. Their success or failure is always pinned against achieving targets.
So, the question is how to set the Objectives and Key Results (OKRs) for the sales team so that they remain motivated.
Shift the focus from numbers to performance. The idea is simple yet effective. This also tallies with the philosophy around OKRs. According to experts, The Objectives and Key Results framework should be so designed that it helps in improving the performance of the employees. The OKR framework should not be tied to the appraisals, which in turn are associated with numbers. Hence, an ideal OKR framework is the one which helps all the employees align their objectives with those defined by the company itself, for that quarter (or longer period if required).
These objectives and key results are then written in a top to bottom flow, so that all the employees have a fair understanding of what they are supposed to do in the coming days. The objectives define what is expected to be done, while the key results state how it is to be achieved. While objectives should be inspirational, key results should be very quantitative and metrics driven.
Another important thing to remember while writing OKRs is that key results are not tasks, but results achieved after doing certain tasks. What tasks are required to obtain the said results is to be discussed separately. Learn in detail about OKRs here.
So, how should the OKRs of the sales team look like. Let us see some examples of OKRs with respect to the roles in the sales department.
Sales VP OKR:
Objective – Surge Sales in South East Asia market
Key Result 1: Find 40 new customers in South East Asia
Key Result 2: Implement a new sales training program for our SEA team
Key Result 3: Recruit 10 A-Players for our SEA team
Objective – Grow Our Upsell and Cross-sell
Key Result 1: Increase our revenue through upsell and cross-sell by 30%
Key Result 2: Increase customer retention to 90%
Key Result 3: Have regular weekly meetings with Customer Success team
Objective – Achieve sales growth targets
Key Result 1: Generate New MRR of $100K
Key Result 2: Grow Average Revenue Per Account (ARPA) to $1000
Key Result 3: Increase Months Up Front Payments (MUFP) to 9.5
Sales Manager OKR:
Objective – Recruit A-Players for our SEA sales Team
Key Result 1: Hire 1 new Inside Sales Manager by the end of January
Key Result 2: Hire 4 new Inside Sales Executives by the end of February
Key Result 3: Maintain a 4:1 onsite “Interview Offer” ratio
Objective – Hit the Team Sales Quota Targets
Key Result 1: Close $1M in sales per rep
Key Result 2: Close $1M in sales upsells
Key Result 3: Increase our win rate with enterprise clients to 20%
Sales Training Manager OKR:
Objective – Build Top Sales Department.
Key Result 1: Get 85% of sales reps certified on our methodology
Key Result 2: Develop personalized coaching profiles
Key Result 3: Conduct 5 hours 1-on-1 coaching per sales rep
Key Result 4: Help increase the average conversion rate by 20%
Inside Sales Executive OKR:
Objective – Improve Sales Skills
Key Result 1: Increase win rate by 5%
Key Result 2: Attend 20 hours of training
Key Result 3: Attain/maintain/enhance sales certification
Inside Sales Manager OKR:
Objective – Improve sales funnel
Key Result 1: Monthly 12000 active prospects in sales funnel
Key Result 2: Daily 30 at bottom of the funnel
Key Result 3: Reduce the number of leads lost by 15%
Channel Partner Sales Goals — OKR Examples:
Objective – Grow Sales Through our Channel Partner
Key Result 1: Increase referral fees for Employee referral programme by 10%.
Key Result 2: Recruit 30 new channel partners in Eastern, Central and Western geographies
Key Result 3: Implement the new channel partner website section
Key Result 4: Improve the channel partner onboarding process and documents
Presales/Sales Enablement Manager OKR:
Objective – Improve our Sales Analytics Process
Key Result 1: Implement a sales analytics and Business Intelligence platform
Key Result 2: Set up sales cycle and average deal size triggers to email our VP of Sales
Key Result 3: Review Sales Activity metrics and send a weekly summary to the team
Key Result 4: Review Sales Pipeline metrics and send a weekly summary to the team
Key Result 4: Review retrospective Sales Results metrics and send a weekly summary to the team
Customer Success Manager:
Objective – Increase customer retention by 50% Q4 2017-18
Key Result 1: Address all grievances within 24 hours and redress them within 48 hours
Key Result 2: Seek regular feedback after product sale to understand whether it is satisfying needs
Key Result 3: Delight customers with extension of license period or additional feature