How to Implement the OKR Methodology in Sales

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In other words, don’t require your sales reps to achieve specific team-level or overarching business goals before they get paid. The reason is simple: OKRs encourage your team to chase ambitious goals. But if they’re only compensated when they reach the top of the mountain, so to speak, team morale can be put in serious danger.

What are the Components of the OKR Framework?
This management framework has three core components: objectives, key results, and initiatives. Let’s dig into what those components really mean.

What are the Components of the OKR Framework?


Objectives: The measurable outcomes you want to accomplish. These should be aspiration and easy to understand. For example: Hit $50M in annual recurring revenue.
Key results: The metrics you’ll use to track progress towards your measurable outcomes. Key metrics will help you determine if you’re on track to reach your goals. For example: Reduce customer churn by 15 percent, or boost our annual renewal rate by 20 percent.
Initiatives: The specific tasks you’ll complete to achieve your key results. For example: Contact 50 potential customers a day, create and test new email templates, or dedicate time to customer service-related tasks.
You might be wondering, “How many objectives, key results, and initiatives should I set?”

Great question! Generally speaking, try to set no more bahamas telegram data than 10 objectives at a time. Then, set between three and five key results per objective and as many initiatives as needed.

One last thought about objectives: make them BIG GOALS. So big, in fact, that you and your sales team are only able to accomplish 60 to 70 percent of them per OKR cycle. By setting ambitious goals, your team will be motivated to push harder and will likely accomplish more than anyone thought possible.

Now you know how the OKR framework works in theory—here’s how to implement it in practice.

Get Team Members to Buy In
Your OKR initiative will fail if you don’t get buy-in.

First, you need your leadership team to approve of this goal-setting framework. If they don’t, you’ll have a hard time connecting your department’s objectives to company goals.