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Sample OKRs

Sample Objectives and Key Results (OKR) for Education Franchises

By | Education, Sample OKRs
Education Franchises Objectives and Key Results

Education franchises employ hundreds of thousands of people across the US and around the world. According to IBISWorld, there are almost 173,000 businesses operating as tutoring or driving schools in the U.S., employing 343,451 people. As the world shifts, some of this revenue will be coming from online sources.

OKRs

  1. O: Increase profitability through sales and marketing enhancements.
    1. KRs:
      1. Get cost/lead to $70 off of online sources.
      2. Have a trial conversion rate of 80% (new students/trial).
      3. Increase walk-in traffic by 10%.
      4. Get online reviews to 4.1 stars.
  1. Initiatives:
    1. Have home office Marketing team review marketing campaigns.
    2. Work with property management company for brighter and more engaging signage outside of center.
    3. Have an email campaign directed at happy customers encouraging reviews.
    4. Self audit using “World-Class Service” audit in FranchiseBlast.
  1. O: Increase franchisee efficiency.
    1. KRs:
      1. Maintain coach cost at 33% or lower.
      2. Get Marketing cost to 10% of Sales.
      3. Increase coach to student ratio from 1:5 to 1:8.
      4. Increase engagement in online platform for students by 20%.
  1. Initiatives:
    1. Review coach cost on monthly FranchiseBlast scorecard.
    2. Do a Facebook live showcasing the new online platform.
    3. Train coaches on how to manage more students.
    4. Apply for government grant for hiring students.
  1. O: Delight customers.
    1. KRs:
      1. Have an NPS of 70 from parents.
      2. Have an NPS of 50 from students.
      3. Get three customers to post a review over 4 stars/month.
      4. Have 10% of customers enroll a second student from same household.
  1. Initiatives:
    1. Launch a customer appreciation event including parents, students, and their family and friends.
    2. Create flyers for second student promotion to be handed out at the center.
    3. Create annual award for coach with highest NPS for parents or students.
    4. Train coaches to ask happy parents to post a positive review.

Hopefully these sample objectives and key results have helped you out. Do you want to take it a step further? Learn more about strategy and education franchises by checking out the following:



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Sample Objectives and Key Results (OKR) for Automotive Franchises

By | Automotive, Sample OKRs
Objectives and Key Results for Automotive Franchises

Automotive franchises make a significant impact on the economy. According to IBISWorld, there are 263,000 auto mechanic businesses running in the U.S., with industry employment counting over 500,000. Although the changing landscape is affecting these businesses, they are still making a meaningful contribution to the economy.

OKRs

  1. O: Increase franchisee revenue.
    1. KRs:
      1. Have a customer acquisition rate of 25% (new customers/total customers).
      2. Have a quote capture rate of over 70% (total sales/total quotes).
      3. Increase leads from online sources by 25%.
      4. Get a conversion rate from service texting reminders of 20%.
  1. Initiatives:
    1. Launch campaign with current happy customers to get more reviews.
    2. Enhance texting reminder campaign using new vendor.
    3. Have home office sales coach talk to Service Manager about best practices.
    4. Review quote capture rate on monthly FranchiseBlast scorecard.
  1. O: Increase franchisee efficiency.
    1. KRs:
      1. Have a productivity ratio of over 80% (hours clocked/hours available).
      2. Decrease parts supplier costs by 10%.
      3. Reduce marketing costs by 20%.
      4. Reduce staff costs by 15%.
  1. Initiatives:
    1. Hire junior technicians at a lower rate to pick parts so senior technicians save time.
    2. Reorganize the shop to improve technician workflow.
    3. Review productivity ratio on monthly FranchiseBlast scorecard.
    4. Review marketing spending by lead source and eliminate ones with high Cost Per Lead (CPL).
  1. O: Delight customers.
    1. KRs:
      1. Reduce cycle time by 10% (measured through Point of Sale from drop-off to delivery).
      2. Have a Customer Satisfaction (CSAT )score of 75%.
      3. Have 50% of customers come back for repeat business within one year.
      4. Have Employee Satisfaction Score of 60% (happy employees lead to happy customers).
  1. Initiatives:
    1. Have two “Family Days” with staff per year (summer and holidays).
    2. Eliminate the vendors with the slowest parts delivery record.
    3. Send text reminders for service.
    4. Self-audit using the Customer Care Audit with FranchiseBlast.

Hopefully these sample objectives and key results have helped you out. Do you want to take it a step further? Learn more about strategy and automotive franchises by checking out the following:



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Sample Objectives and Key Results (OKR) for Salon and Spa Franchises

By | Salon and Spa, Sample OKRs
Salon and Spa Franchises OKRs

Salon and spa franchises represent well over a million businesses across the US. According to IBISWorld in 2019, there are currently almost 1 million firms operating in the hair and nail salon industry within the U.S., providing direct employment opportunities for almost 1.4 million people.  The health and wellness spa industry has over 22,000 businesses employing over 365,000 people. As the economy changes, salons and spas still employ many people.

OKRs

  1. O: Increase franchisee revenue.
    1. KRs:
      1. Get retail capture rate to 25% (% of people who buy retail items vs. spa guests).
      2. Have 100 customers do injectables (high ticket item).
      3. Increase customers by 20%.
      4. Increase facial treatment sales by 30%.
  1. Initiatives:
    1. Increase prices by 10%.
    2. Get front desk staff engaged in sales training from head office.
    3. Review injectable sales on monthly FranchiseBlast scorecard.
    4. Engage in Instagram for lead generation.
  1. O: Increase profitability through marketing efficiencies.
    1. KRs:
      1. Make cost/lead $25 off Google.
      2. Get repeat guest rate to 50% (% of total guests who are repeat guests).
      3. Increase business from referrals by 25%.
      4. Increase walk-in business by 10%.
  1. Initiatives:
    1. Optimize Google AdWords landing pages.
    2. Run annual referral campaign with current customers.
    3. Give roses to customers for the month of February as a Valentine’s Day promotion.
    4. Add colorful decals outside of clinic.
  1. O: Increase employee satisfaction of frontline staff.
    1. KRs:
      1. Make employee retention rate 20% (employees who left/total employees).
      2. Get eNPS (employee Net Promoter Score) to 30.
      3. Increase employee participation in group events by 50%.
      4. Increase employee participation in learning portal by 25%.
  1. Initiatives:
    1. Launch eNPS program.
    2. Review who has completed training using custom forms in FranchiseBlast.
    3. Have a staff holiday party.
    4. Allow team members to nominate each other weekly for “spirit” awards.

Hopefully these sample objectives and key results have helped you out. Do you want to take it a step further? Learn more about strategy and salon and spa franchises by checking out the following:



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Sample Objectives and Key Results (OKR) for Gym and Fitness Franchises

By | Gym and Fitness, Sample OKRs
Gym and Fitness Franchise Sample OKRs

According to the 2019 IHRSA Global Report, worldwide, the industry saw membership grow to a “record-high” 183 million users, revenue totaling an estimated $94 billion, and club count exceeding 210,000 facilities in 2018. As the global landscape shifts, we will still see gyms making a meaningful contribution to the economy.

OKRs

  1. O: Increase franchisee revenue.
    1. KRs:
      1. Grow membership by 10%.
      2. Grow inbound leads by 20% from online sources.
      3. Book trial with 40% of inbounds.
      4. Get sales conversion rate to 80%.
  1. Initiatives:
    1. Create Facebook campaign with agency.
    2. Put front desk staff through sales training provided by head office.
    3. Perform monthly review of leads vs. trials on FranchiseBlast scorecard.
    4. Work on lead quality of PPC (pay-per-click) and display campaigns together with agency.
  1. O: Increase profitability through marketing efficiencies.
    1. KRs:
      1. Make cost per lead $50.
      2. Have a member retention rate of 70% (existing clients at the end of the period/existing clients at the beginning of the period).
      3. Increase community marketing leads by 20%.
      4. Increase leads from signage by 10%.
  1. Initiatives:
    1. Work with property management group to have an attention-grabbing sign out front.
    2. Participate in local wellness expo.
    3. Host benchmark workout session with members for ongoing performance improvement.
    4. Place flyers for “first week free” at businesses in the same plaza.
  1. O: Delight our customers.
    1. KRs:
      1. Maintain a Net Promoter Score (NPS) of 50.
      2. Increase member engagement in group fitness by 10%.
      3. Put 90% of members through the outstanding onboarding program released by head office.
      4. Expand social media engagement by 50%.
  1. Initiatives:
    1. Host one customer appreciation event.
    2. Perform quarterly analysis of NPS with team on FranchiseBlast.
    3. Ask staff to post pictures on social media of members reaching milestones on a monthly basis.
    4. Engage in seasonal giveaway campaigns of branded merchandise with social media component.

Hopefully these sample objectives and key results have helped you out. Do you want to take it a step further? Learn more about strategy and gym and fitness franchises by checking out the following:



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Sample Objectives and Key Results (OKR) for Restaurant Franchises

By | Restaurant, Sample OKRs
Restaurant OKR Sample

According to the National Restaurant Association (NRA), there are 1 million+ restaurant locations in the U.S. with 15.6 million employees. Even in these changing times, the industry is still a major employer. See some sample Objectives and Key Results (OKRs) for restaurant franchises below.

OKRs

  1. O: Increase franchisee revenue.
    1. KRs:
      1. Increase sales by 3%.
      2. Have 150 people buy the holiday promo.
      3. Increase average check size by 5% to $6.25.
      4. Increase catering sales by 10%.
    1. Initiatives:
      1. Put crew through upsell training.
      2. Increase coffee prices by 10%.
      3. Execute one holiday social media campaign.
      4. Cold call 100 local businesses to discuss catering.
  1. O: Adapt to changing operating environment.
    1. KRs:
      1. Make online orders 30% of total sales.
      2. 0 days shut down for sanitization due to an infection.
      3. Average cleanliness audit/self-assessment compliance exceeds 85%.
      4. Maintain 12 months of financial runway.
    1. Initiatives:
      1. Install plexiglass around all cash registers.
      2. Set up new employee temperature check processes before every shift.
      3. Perform daily cleanliness self-assessments in FranchiseBlast.
      4. Secure a $100,000 bank loan.
  1. Increase franchisee profitability.
    1. KRs:
      1. Make the seasonal beverage category 20% of total sales (or another strategic, high margin category).
      2. Keeps COGS (cost of goods sold) under 33% of sales.
      3. Keep labor costs under 33% of sales.
      4. Obtain an average online rating above 4 stars on Google.
    1. Initiatives:
      1. Reduce evening staff by two people.
      2. Engage in an online Facebook campaign about seasonal beverages.
      3. Perform weekly theoretical versus actual food cost reviews.
      4. Perform daily reviews of Google review feedback.

Hopefully these sample objectives and key results have helped you out. Do you want to take it a step further? Learn more about strategy and restaurants by checking out the following:



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Objectives and Key Results (OKR) in Franchising

By | Sample OKRs
OKRs in Franchising Intro

Forward-thinking franchisors are now embracing Objectives and Key Results or OKR .The framework was originally developed by Andy Grove at Intel and has been used by organizations such as Google, Twitter, and LinkedIn. While the framework has documentation in the form of videos, bestselling books, and worksheets, the three main concepts will help you through their use, for the purpose of Business Plans.

Objectives and Key Results Key Terms

Objective (O)

The Objective is your goal which aligns everyone in simple terms.

Example: Grow business with sales and marketing.

Key Results (KR)

Key Results is how you measure success, which you cannot control 100%.

Example: Add 250 new customers to our loyalty mailing list.

Initiatives (I)

Initiatives are activities trying to achieve objectives, which you can control 100%.

Example: Perform three marketing campaigns on Social Media.

How to Use OKRs in Franchising

The birthplace of OKRs was in the technology sector. Today, OKRs are used across different industries and business models. Franchising has some unique elements to it that matter when it comes to business planning.

  • Shared Risk: An advantage of the franchise model is shared risk – since the franchisee signs the lease and commits to various contracts. This shared responsibility matters when thinking of many aspects of the business, from profitability to marketing expenses.
  • Motivation: No one is more motivated than a person who has invested their money into the business. But, when engaging in planning activities, you want to remember that the person standing before you is not an employee, they are a business owner. With that, including some set objectives from a franchisor level of reasonable. At the same time, franchisees who set some of their own Objectives, Key Results or Initiatives will ultimately be more engaged.
  • New Markets: Franchising allows brands to expand to new markets, where customs and tastes are not necessarily understood by the franchisor. So when setting OKRs with your Master Franchise, or franchises in markets that have significant differences from your own, you may want to keep those in mind in terms of what to keep consistent, and what to change.

At the heart of these considerations is to include collaboration when building your plans.  OKRs are also loved for their transparency, which will further accountability and engagement.

Getting Started with OKRs

Setting OKRs together with your Franchise Advisory Committee (FAC) and other key stakeholders from the franchisor level is key. Some choose to have an OKR workshop including collaborative documents if online, and whiteboards if off. At the end of the session, you want to have agreement on what you want achieved by the beginning of the following year.

How to Set Objectives

When sitting down to write objectives, the first question you want to have in mind is “what challenge am I trying to solve?” John Doerr, who famously implemented OKR at Google, and wrote the authoritative book on the subject, Measure What Matters, had the following formula:

I will (Objective) as measured by (this set of Key Results).

Objectives should be aligned, high-impact and time-bound. They don’t necessarily need to be SMART (Specific, Measurable, Actionable, Results-Oriented and Timely). In fact, they can be more of a big picture. If you think of yourself steering a boat, the Objective is the place where you are aiming to go.

How to Set Key Results Aligned with Objectives

Creating key results can be tough to untangle from initiatives. A simple rule of thumb is to think “how can I measure it”. For example, if your objective is to Create an Extraordinary Customer Experience, then your key results could include: Receive a Net Promoter Score (NPS) of 30 for the Year.

Notice that this is not telling you the “how” it is telling you how you will measure it. Similarly, a Marketing objectives may be measured by conversions, but it does not get into specifics around “how”.  Key results should be high impact, specific and within influence.

How to Set Initiatives Aligned with Objectives

Initiatives are in the form of tasks or projects. For the NPS objective above, for example, you can have the tasks that will make your customers happier. Related to that Objective, you could have a new Customer Service training to improve that experience.

An example of a Marketing initiative is a Facebook Campaign. Initiatives are just a “best guess” or a “hypothesis” on what may deliver the highest impact because a veteran marketer knows that a campaign will not always get the results that you are looking for, since ultimately the control lies with the prospect (and tastes can be fickle).  Initiatives should be specific and within control.

Reviews

Franchise-Wide planning for OKRs usually happens annually. On the location-level, frachisors can choose Annual Objectives or Quarterly Objectives. Finding the right rhythm depends on how quickly your target market changes or if your business deals with more uncertainty than most.

If you are new to the process, setting an Annual rhythm can be a good start. Either way, engaging in monthly or quarterly reviews of goals with franchisees is helpful.

Tracking

Having OKRs in a central location is key to the process as is tracking them every step of the way. This way, you can see a history of check-ins, and understand what was discussed in previous meetings. FranchiseBlast’s Business Plan application is a fantastic tool to further this goal. Click here to learn more about Business Plans in FranchiseBlast.



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