How leadership of employees via Objectives and Key Results (OKR) speeds up the digital...

26.10.2016 / T3CON 2016 / MunichPatrick Lobacher & Manuel Eisbrenner

www.pluswerk.ag

OKRHow leadership of employees via Objectives and Key Results (OKR) speeds up the digital transformation at EDEKA

+Pluswerk AG

Your Partner for the Digital Transformation

26.10.2016 | Objectives & Key Results | OKR

+Pluswerk AG in a nutshell

• Founded 2010 (as legal unit, predecessor since over 20 years)

• More than 130 employees at more than 10 locations in

Germany, Poland, South Africa and Rumania

• Specialized in complex and sophisticated solutions in the area

of the “Digital Transformation”

• Our core values:

• Based on partnership

• Passionate

• Recoverable & Qualitative

• Creative & Innovative

Patrick LobacherChairman of the board

+Pluswerk AG - Fullservice Agency for the Digital Transformation

Consulting Agency Systems House

Innovations

Design Thinking

Lean Startup

Lego Serious Play

Business Model Canvas

Value Proposition Design

Lean Canvas

Objectives & Key Results

Working Out Loud

New Work

Management 3.0

Team-Development

Leadership Coaching

Organizational Consulting

Process Consulting

Change Management

(Large Group) Moderation

IT-Consulting

Project Management

Agile / Lean

People Processes

References

Leadership

at EDEKA

The Edeka Group is the largest German supermarket corporation, currently

holding a market share of 26%.

● Employees: 346.800● Retailer: 4.500● Shops: 12.600● Revenue: 48,4 Mrd. EUR

EDEKA Eisbrenner

● One of the most innovative and profitable retailer within the group

● Location: Hannover● Employees: >= 60

EDEKA Eisbrenner

“I’m looking for a system which enables me to lead several stores at the same time with the same, high quality level.”

“Why have some companies a better performance than others?”

EDEKA Eisbrenner

● Manuel Eisbrenner was looking for a way to increase the following:○ Employee motivation○ Customer satisfaction○ Productivity○ Management absence

(self organizing)

EDEKA Eisbrenner

● Looking at the possibilities out there he came across the “Objective and Key Result framework” mentioned by Google (in the Book “How Google works”)

● Collected all information which were available

● This was the point we came in

Agile and modern leadership of employees

The traditional “Management by Objectives” comes to an end...

Just 13% of all employees (worldwide) are really motivated in their jobs...

Just 55% of all managers could name at least one company

priority...

Gallup Daily Tracking, Januar 2016

Demotivation&

Disorientation

“We basically unplug anything which is anual. The notion is that, in the digital age, sitting down once a year to do anything is weird, it’s just bizarre.”

Jeff Immelt, CEO GE, 2015

What’s wrong with a MbO?

“Allthough we are using agile tactically, we are using waterfall for strategy and goal setting”

Felipe Castro, 2016

Top downUnidirectional

Irreversible flowNo feedback loopsNo transparency

The MbO waterfall

Culture Top Down, C&C, Family/Performance/...

Strategy Annual static planning

Goals Cascading (waterfall) goals

Tactics Planning

Operations Waterfall development

The traditional stack

Why are we not able to execute strategies & goal management

properly?

30% failure to coordinate across units

Why Strategy Execution Unravels, HBR - 2015

40% failure to align

Digital Transformation / Digitalization

LegacyCompany

complicatedhierarchical

managementprocessesknowledge

formalrigid

DigitalCompany

complexnetwork

leadershippeopleskills

dynamicagile

Planning, management, optimization and implementation of the company’s value-added chain in the digital age

Agile / LeanScrum

KanbanDesign Thinking / LSP

Lean StartupOKR / 4DX

Management 3.0...

Digital Business Transformation

How does the Silicon Valley handle this goal management thing...

OKRObjectives & Key Results

Objectives

Inspiring Motivating Qualitative

Measurable QuantitativeMetrics Milestones

Impressing

Key Results

Objective

To be aperfect cook

Objective

develop 3 own creations

process 4 new spices

create 2 African meals

To be aperfect cook

Key Results

Values OKR

Alignment Transparency(Intrinsic)

Motivation

Self OrganizingTeams

ContinuousImprovement

Short Interations Focus

Commitment

Priciples OKR

History of OKR

• End of the 70ties:

Invention of OKR by Andrew Grove (Co-founder Intel)

Basic idea: modernize MbO and connect them to “SMART”

• In use at Google since 1999 till today

• Strong propagation (Silicon Valley) through “John Doerr” (Management

consultant)

• Usage started in the USA at LinkedIn, Twitter, Apple, Oracle, Ebay, Zynga, …• Since 2014 increasingly in EMEA at MyMüsli, Breuniger, Red Bull, Zalando,

Edeka, Lamudi, Stylelight, ...

The OKR cycle

Mission statement

(MSC)Moals OKR ZyklusOKR

Planning

WeeklyOKR

OKRReview

Retros-pektive

OKR-List

OKR Master

Standard OKRExtension by pluswerk:consulting

3 - 10 years 1 year

3-4 months

• develops to a result- and value-oriented culture

• gives autonomy to the teams in terms of the goal management

• strengthens self-organizing teams

• helps to keep focus and focuses on priorities

• increases productivity and satisfaction

• enables and supports the “Agile Transformation” and the “Digitale

Transformation”

Challenges

at EDEKA

Challenges at EDEKA

• Different working times

• Different commitment

• High amount of “mini-jobber”

• Different knowledge status

• Teams are changing “on-the fly”

• High stress level

Solutions for the challenges

• Culture audit

• Vision-Workshop why to use a agile leadership method

• Training for all employees (at different events)

• Education of the “OKR-Masters”

• One OKR-Master for each Team (Checkout counter,

Cheese, Meat, Bevarages, …)

Solutions for the challenges

• Adjustment of OKR-Framework to reflect working

environment

• Choose software (Trello in this case)

• Coaching of first events

• Support

Learnings

• Weeklys doesn’t work (Bi-Weeklys instead)

• Remote participation of events (often) not possible

• Some employees are overchallenged at a specific point

• Fast reaction times a needed sometimes which are in

conflict with the OKR

• General approach works good

• Meta-Goals for the OKR introductions are reached

Next steps

with OKR

Sources

okr-beratung.de

amomi.de

Sources

okrguide.org Amazon

Video Training

www.video2brain.com

Conferences

Agile Leadership with OKRs16. November 2016, 12:40 - 13:25 Uhr

The agile company26. Oktober 2016, 09:00 - 10:00 Uhr

OKR and BVB - Why OKR is the better Cristiano Ronaldo or why Scrum allone makes you not agiles | 03.06.2016

How leadership of employees via Objectives und Key Results (OKR) speeds up the digital transformation at EDEKA | 26.10.2016

Thank you very much!

And much success with OKR

okr-beratung.de

Contact

Christian Jacobchristian.jacob@pluswerk.ag+49 89 130 145 22

Patrick Lobacherpatrick.lobacher@pluswerk.ag+49 89 130 145 20

Magnus Schubertmagnus.schubert@pluswerk.ag+49 2204 842662

pluswerk:okr

+Pluswerk AGWilhelm Hale Str. 5380639 München

T: +49 89 130 145 0F: +49 89 130 145 10info@pluswerk.ag

www.okr-beratung.dewww.pluswerk.ag

+Pluswerk AG - Fullservice Agency for Digital Transformation

Strategy Consulting Digital Technology Operations

Digitalization / Digital TransformationHostingEditorialContent

OperationsOKR / New Work

(Digital) Leadership / Management 3.0Agile / Lean / Innovation Mgt.

Digital VisionCoaching / Sparing

PM / ConsultingDigital Agency

CMS / CRM / PIME-Commerce

CI / CD / CloudSystemdevelopmen

tSystemintegration

www.pluswerk.ag

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