Mastering OKRs for Sales Teams

Driving performance in a sales team is an amazingly challenging and rewarding mission. Objectives and Key Results (OKRs) have emerged as one of the most effective frameworks for driving measurable outcomes and cultivating a results-oriented culture. However, to harness their full potential, it’s crucial to implement them correctly, particularly for sales teams where the nature of the job incentivises every team member to focus on their individual short term targets (i.e. revenues).

At our recent OKRmentors quarterly meeting, a panel of experienced OKR practitioners shared key insights for maximizing the impact of OKRs within sales organizations. Below, we’ve distilled the top best practices to help you take your sales team’s performance to the next level.

1. Focus on Margins, Not Just Sales Volume (Top Priority)

Ralph Tchomnou Ngantchop, a veteran OKR expert, emphasized that prioritizing profit margins over sheer sales volume can lead to more sustainable growth:

“Instead of measuring success solely by sales volume, we shifted our focus to profit margins. In my company, we improved margins from 23% to 32%. This shift encouraged our team to pursue higher-value deals and prioritize long-term profitability.”

Actionable Insight: Set key results that emphasize improving profit margins rather than simply increasing sales volume. This approach ensures that your team is focusing on deals that contribute to the overall profitability of the business, rather than just chasing numbers.

2. Emphasize Customer Satisfaction and Referrals (High Priority)

Customer satisfaction is crucial for long-term success, and referrals are one of the strongest indicators of a satisfied customer base. Ralph also pointed out the importance of building a referral pipeline:

“We track the percentage of customers acquired through referrals. It's a testament to the quality of service and the strength of customer relationships.”

Actionable Insight: Include key results that track the percentage of new customers acquired through referrals or customer satisfaction scores. This not only boosts customer retention but also encourages excellent service, which drives long-term growth.

3. Balance Revenue with Other Success Metrics (Critical for Long-Term Success)

While revenue is an important goal, it should not be the sole focus of your OKRs. Aaron McKenna, an experienced OKR consultant, advises a balanced approach:

“I recommend allowing one key result tied to revenue, but supplement it with others focused on efficiency and customer engagement—such as reducing the number of touchpoints before closing a sale or increasing product knowledge.”

Actionable Insight: Diversify your key results by including metrics like sales efficiency, customer engagement, or reducing the sales cycle. This ensures that your team is not only focused on immediate financial outcomes but is also improving operational performance and customer relationships.

4. Align OKRs with Strategic Priorities (Essential for Organizational Alignment)

OKRs should always reflect the larger strategic priorities of the organization. Elie Casamitjana, CEO of OKR mentors, underscores this point:

“Tie your OKRs to the company’s strategic direction—whether it's targeting larger clients, expanding into new markets, or focusing on a particular product line. Your sales team’s objectives should reflect these high-level goals.”

Actionable Insight: When developing sales OKRs, ensure they align with broader organizational priorities. Whether the focus is on growing into new markets or promoting a specific product, make sure the OKRs reflect these goals to drive coherence across the company.

5. Use OKRs to Identify and Overcome Obstacles (Critical for Continuous Improvement)

OKRs are not just about setting goals—they are also a tool for identifying and overcoming obstacles. Raphaël Kattan, an OKR expert, shared his approach:

“Ask your team, ‘What might prevent us from hitting our yearly objectives?’ Their answers will help you uncover obstacles and craft key results that address these challenges, whether it’s low conversion rates or insufficient leads.”

Actionable Insight: Facilitate team discussions to identify potential blockers to achieving your yearly goals. Use these insights to create key results that focus on overcoming those specific challenges, ensuring your team is set up for success.

6. Adapt OKRs to Team Maturity (Optimize for Growth)

One of the most important factors when setting OKRs for sales teams is considering the team’s maturity. As Elie Casamitjana explains:

“For newer teams, focus on foundational metrics—like ensuring that all deals are properly tracked. As the team matures, you can gradually introduce more complex and ambitious key results.”

Actionable Insight: Customize OKRs based on the maturity of your sales team. For less experienced teams, prioritize foundational metrics and processes. As the team becomes more skilled and efficient, gradually increase the complexity and ambition of their objectives.

Conclusion: A Framework for Sustainable Sales Success

Implementing OKRs within a sales team is a great opportunity to create a space for dialogue and alignment on how to transform and improve sales practices within the team (and beyond). It requires a thoughtful, strategic approach that balances immediate revenue goals with long-term growth, customer satisfaction, and operational efficiency. 

By adopting these expert-backed best practices, you can create an OKR framework that not only drives sales performance but also aligns your team with the broader organizational strategy, fostering a culture of continuous improvement.

The key to strategic success lies in consistent review and adaptation. As your team evolves and business priorities shift, ensure that your OKRs reflect these changes. With persistence, focus, and the right OKR framework, your sales team can achieve outstanding, sustainable results—quarter after quarter.