Optimize your sales performance with the OKR method

Alexis Lecomte
8 March 2022 - 5 min reading
Updated November 24, 2023

In an ever-changing commercial world,aligning a team's objectives with the brand's overall vision is crucial.

The OKR (Objectives and Key Results) method, popularized by technology giants such as Google and Intel, offers a strategic solution for achieving this alignment.

This article explores in depth how the OKR method can transform the performance of field sales staff.

What is the OKR method?

OKR is a goal management methodology developed by Andrew Grove at Intel in the 2000s and popularized by John Doerr at Google. It is based on the definition of clear objectives (O) and measurable results (KR) to drive a company's success.

The OKR method is a relatively simple tool for creating alignment and commitment around measurable objectives. The aim is to ensure that everyone is moving in the same direction, with clear priorities, and at a steady pace.

OKRs are used for a variety of purposes, from improving corporate performance to managing specific projects.

What does OKR stand for?

OKR is an acronym for Objectives and Key Results.

Objectives (O)

A goal is simply what is to be achieved, nothing more and nothing less.

By definition, objectives are meaningful, concrete, action-oriented and (ideally) inspiring.

For the OKR method, when properly designed and deployed, :

  • are qualitative statements that describe what the organization or individual wants to achieve;
  • must be clear, motivating and aligned with the company's overall vision;
  • are often ambitious and designed to push the organization or individual out of their comfort zone.

A lens can have quite a long lifespan, and can be retained from one quarter to the next. It's all about the big picture: where do you want to go?

Here's an example of an objective:"I'm going to reference my 20/80 in my entire fleet before September".

Key results (KR)

Key results allow you to evaluate and control how you will achieve your objective.

Effective key results are specific and time-bound, aggressive but realistic. Most importantly, they are measurable and verifiable!

For the OKR method, when properly designed and deployed, the key results :

  • are quantitative indicators used to measure performance and progress towards the objective;
  • are specific, measurable, achievable, relevant and time-bound(SMART);
  • act as milestones that indicate whether the goal is on track.

Key results, unlike objectives, are time-limited. In most cases, they are monitored on a quarterly basis. At the end of the designated period, you should carry out a check and mark the key results as achieved or not.

While an objective may have a long life and be renewed for a year or more, the key results evolve as the work progresses. Once they are all completed, the objective is achieved.

Here are some examples of key results:

  • Key Result 1: "Take stock of the implementation of my flagship products in my park in the first week".
  • Key Result 2: "Dispatch my sales people to the various visits".
  • Key Result 3: "Carry out visits and measure implementation progress on a weekly basis".

What's the difference between the OKR method and the KPI method?

KPIs (key performance indicators) are management tools used to measure the level of performance and success of an organisation or a specific process, focusing on the "how much?

The OKR, on the other hand, is a goal-setting structure that creates alignment and transparency of objectives, strategically managing the evolution of KPIs towards the desired values.

Unlike KPIs, which measure performance, OKRs focus on setting and achieving specific objectives. KPIs can be used as KRs within the OKR framework, but OKRs encompass a more strategic vision.

Store features
The differences between KPIs and OKRs
OKR KPI
Objective Focuses on defining and monitoring the company's strategic objectives. OKRs are used to define what the organization wants to achieve and how it plans to do it. Focuses on measuring operational performance. KPIs are indicators that help companies understand how they are performing in relation to their operational and strategic objectives.
Nature of objectives OKR objectives are often ambitious and can be qualitative. They aim to encourage innovation and push the limits of what is possible. KPIs are generally quantitative and based on historical data. They are used to measure standard performance and expected results.
Temporality They are often set on a quarterly cycle, allowing for regular reassessment and adjustment. Can be tracked over different periods (daily, weekly, monthly, quarterly, annually), depending on the nature of the indicator.
Transparent information Encourages alignment of objectives across the organization and transparency. Everyone in the company can see each other's OKRs, encouraging alignment and collaboration. Although they can be shared within the company, KPIs are often more focused on individual or team performance and less on overall organizational alignment.
Flexibility and adaptability More flexible, enabling companies to adapt quickly to changes in the environment or market. Tend to be more static, reflecting constant performance standards.

In short, OKRs are used to define and monitor ambitious strategic objectives, while KPIs are used to measure operational performance and results. OKRs are often more dynamic and adaptive, while KPIs are generally more static and based on historical data.

What are the benefits of the OKR approach?

The OKR method has many advantages, including

  • Clear visualization of objectives by the whole company at different levels of responsibility, ensuring that every sales person understands his or her contribution to the overall vision. ;
  • Improved communication between team members;
  • A guarantee thatindividual efforts are aligned with the company 's strategicobjectives ;
  • Helps teams focus on the most important tasks;
  • Harmonizing strategy within your company;
  • Encourages employees to take responsibility for their goals.

John Doerr, who democratized the OKR method at Google, always talks about F.A.C.T.S. when describing the benefits of OKRs.

F.A.C.T.S. stands for :

  • Focus;
  • Alignment;
  • Commitment;
  • Tracking;
  • Stretching.

Concentration

OKRs help you focus on what really matters.

By defining clear, precise objectives, teams and their members can focus on the most important tasks, avoiding dispersion and scattering of effort.

Alignment

OKRs are a method for aligning an organization's objectives at all levels with its high-level priorities and ultimate goal.

This means that individual, team and corporate objectives are aligned and work in synergy.

Commitment

OKRs require a level of collective commitment on the part of the parties involved to select and respect agreed priorities.

This implies that team members are committed to achieving their goals, and understand the importance of their contribution to the company's overall success.

Follow-up

OKRs enable a team or organization to track its progress towards a goal and know earlier when to change tactics.

To this end, regular progress monitoring is an essential element of OKRs. This enables teams to measure their progress towards set objectives, and to make adjustments if necessary to stay on track.

Enlargement

OKRs enable teams to set goals that go beyond BAU (business as usual) and bring about meaningful change, pushing individuals and teams out of their comfort zones and stretching beyond their current capabilities. This fosters innovation and personal and organizational growth.

How to implement the OKR method

OKRs are generally set at different levels of the organization - company, team and individual - and are reviewed regularly.

OKRs are usually written with an objective at the top and 3 to 5 key results below. They can also be written in the form of a statement: I will (objective), measured by (key results).

OKR implementation steps

To implement the OKR method in your company, simply follow the steps below:

  1. Set clear objectives: Start with ambitious but achievable goals;
  2. Identify key results: Establish measurable indicators for each objective;
  3. Monitor results as you go along: Evaluate OKRs regularly and adjust them if necessary.

OKRs are generally set on a quarterly cycle, enabling organizations to adapt quickly and remain agile.

OKR method: concrete examples

Here are a few concrete examples, which we hope will help you better understand the OKR method:

Objective 1: Increase brand visibility at point of sale

  • Key Result 1: Obtain shelf-edge placement in 50% of supermarkets by the end of the quarter.
  • Key Result 2: Launch three in-store promotional campaigns to increase brand recognition by 20%.
  • Key Result 3: Increase the number of in-store product demonstrations by 30% over the previous quarter.

Objective 2: Improve relations with key distributors

  • Key Result 1: Organize quarterly meetings with the top 10 distributors to discuss collaboration opportunities.
  • Key Result 2: Implement a feedback system with at least 80% of distributors to continuously improve the supply chain.
  • Key Result 3: Negotiate and implement at least two exclusive promotional agreements with major distributors.

Objective 3: Optimize the supply chain to reduce costs

  • Key Result 1: Reduce average delivery times by 15% by optimizing logistics routes.
  • Key Result 2: Reduce transport costs by 10% by renegotiating contracts with logistics suppliers.
  • Key Result 3: Reduce excess inventory by 20% by improving the accuracy of sales forecasts.

Objective 4: Increase point-of-sale sales

  • Key Result 1: Achieve sales growth of 15% in key outlets.
  • Key Result 2: Launch two new products with a presence in at least 70% of supermarkets.
  • Key Result 3: Increase customer re-purchase rates by 25% through targeted marketing campaigns.

As you have seen, the OKR methodology is fairly simple to implement and execute. The hard part is transforming the team's mindset. The OKR method can revolutionize the way field sales people achieve their objectives.

As soon as everyone understands and gets used to this method, results take off!

What do you think of the OKR methodology? Are you ready to start applying it in your team?

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