The contemporary business world witnesses an increase in competitiveness as most of the activities are done online. The development has seen different uses of goal-setting strategies that seek to win a significant customer base for competitive profitability. As a result, the SMART goal has gained popularity as it proves to be effective and can be tracked for improved performance.
Goal setting is a critical aspect, and it requires a strategy that enables you to track progress and keep everybody focused on the objectives. Notably, the sales department involves complexities that could mislead employees and lose focus on the big picture.
Breaking the link between employee activities and business objectives could be devastating to the effective performance management process. Therefore, the sales team needs to implement the OKRs framework to keep members aligned and focused.
Below are crucial details regarding the framework and insightful OKR examples to guide you through.
What Does The OKRs Framework Entail?
As the acronym suggests, OKRs have Objectives and Key Results. The objectives define the qualitative goal. In other words, the objectives should state what you wish to accomplish.
This statement should be used to tell the employees what is expected of them. Ensure that the objectives you establish are easy to understand and concise for everyone in the sales department.
The Key Results support the objectives and provide measurable results as you pursue your objectives. The key results should be considered as milestones that help the team members achieve the objectives. Generally, an objective should have around three key results as more would increase difficulty.
There is also the time frame for the OKR strategy where you measure its progress and effectiveness. Most teams base their reviews on a three-month basis which represents each quarter of the year. However, you can choose a shorter time frame, such as weeks or months, to maintain effectiveness and provide timely feedback.
Sales OKRs Examples
Obj: Increase Revenue by 15% of the previous quarter within a year.
- Decrease sales cycle by 10% of the previous cycle
- Target $30,000 in the first month of launching a new product
- Close a recurring deal with 20% of the current customer base.
Obj: Increase the number of qualified leads in the first quarter
- Provide demo product to 50 new leads each week
- Respond to 90% of inquiries within 48 hours
- Reduce sign-up page fields by 50% to streamline the demo request process.
Obj: Streamline reporting and sales analytics for better documentation and data visibility
- Reduce time spent on administrative tasks by 30%
- Transfer data to the streamlined systems and teach 75 % of the team on how to use them in the first quarter
- Identify one of the most effective tools for reporting and data management.
As you can see, the OKR framework is simple to use and breaks down the organizational goals into simple, achievable objectives for every sector. Applying the framework will enhance performance and increase sales. Besides, you can use the methodology to determine performers and required improvements.