When OKRs are defined in any organization, especially for sales, the first instinct of leaders is to ask for revenues achieved vs. the set target. Instead, if you keep the metrics more dynamic and keep the focus on the most important parameters for that particular quarter, it will make the OKR framework more effective. The OKR Framework comprises of 2 key elements which will help boost the performance of various teams.
1. Constructs
2. Priorities
Constructs:
Simply speaking, these are the components that help build an OKR. Traditionally, sales focuses on the destination rather than the journey. These are a set of key metrics which are unique to each team/department in the organization. Without these metrics, driving toward the goals will become a cumbersome (for managers) and burdensome (for employees) exercise
For example, your sales team has a target of $100000 to achieve. And you also have a wonderfully designed sales cadence to track the numbers on a daily/weekly basis that your team members have achieved. This can be frustrating for sales teams, especially when the number is comprised of several small value transactions leading up to the target.
If you can define the key metrics and corresponding initiatives for your sales team to help achieve that number, then it can make OKR a more strategic exercise within the organization. This means the target number is not the metric. So, to achieve $100000, what all shorter iteration stuff does the sales team members have to do and what are the micrometrics around that – and that’s how you make a team strategically driven and you do not just chase them just for the numbers.
Next time you set OKRs for business teams, during the weekly Check-Ins, please ask them what they are doing to get their numbers.
Examples of micrometrics could be:
1. No. of field/customer visits made
2. No. of partner events
3. No. of new alliance partners signed up
4. No. of conversions
5. No. of Sales Qualified Leads and why
And so on.
Priorities:
Once you have your OKRs in place and the micrometrics also defined, it is important to prioritize the weekly activities/deliverables based on the impact they will have on achieving your Key Results in your OKRs. Normally, the visibility of at least 2 weeks’ tasks is a good thing. If you don’t see two weeks’ activities on the horizon, then it could mean one or more of the following things:
1. You have not defined your OKRs well
2. You are not ready for OKRs
3. You are not serious about OKRs
That is why I recommend that you get your teams to track their PPP – Plan, Progress, and Problems on a weekly basis. It will throw a lot of insights into how your teams function, how you should measure them, and what are course corrections that you need to make.
Are you ready to move your business to the OKR Dimension?