Management by objectives and OKR in EVRY

A BRIEF INTRODUCTION

INTERNAL

Management by objectives and OKR

1

Management by Objectives

Objectives and Key Results

Success factors and pitfalls

Table of contents

3

EVRY wants all managers and employees to apply management by

objectives


MANAGEMENT BY OBJECTIVES (MBO)

“Management by objectives (MBO) is a strategic management

model that aims to improve the performance of an organization

by clearly defining objectives that are agreed to by both

management and employees.”

EVRY wants to be crystal clear and passionate about our

destination, and what to do to get there, thus we apply MBO

Define objectives by both management and employees

Agree howby thinking what needs to be done in order to reach the

objectives

Do ittogether!

Today, OKR is a widespread management tool in companies ranging from startups to industrial giants

OKRs are “neon-lit road signs” which demolish silos and cultivate connections among far-flung contributors. It gives rise to fresh

solutions and keep even the most successful organizations stretching for more

4

Objectives and Key Results (OKR) is a framework for applying

Management by objectives in daily activities


ObjectivesWhere do we need to go?

Key ResultsHow do we know we are getting there?

InitiativesWhat do we need to do in order to get there?

Ideas are easy. Execution is everything.

- John Doerr

OKR follows four important principles to ensure success with MBO

OKR Principles

Transparency

Clearly communicating

company objectives,

ensures everyone

understands the direction

EVRY is taking and what

needs to be accomplished

Focus

Understanding the

company’s priorities,

enables teams to decide

and organise their own

priorities to help EVRY

achieve its objectives

Alignment

Teams know that whatever

they do, it must be aligned

to EVRY’s top priorities,

anything outside of that,

can be saved for another

time

Engagement

Knowing that your work is

contributing to the bigger

picture, keeps you

motivated and engaged

because you can see how

your work impacts EVRY’s

progress

The tool that keeps us on track,

targeted and transparent

How we focus, prioritise and work in all levels of our organization

The Framework we apply

OKR and Perdoo are supporting us in applying MBO


OBJECTIVES AND KEY RESULTS

MANAGEMENT BY OBJECTIVES




Table of contents

Objectives are where we want to go, Key Results tell us if we are

getting there and Initiatives are activities resulting in progress


Objective

Key result D Key result E

Initiative 8 Initiative 9 Initiative 10

Where do we

need to go

How do we

know we are

getting there?

Specific

activities

Objectives sets the direction and inspires to action

Objectives and key results

An Objective is a description of a goal to be

achieved in the future. An Objective sets a

clear direction and provides motivation.

• “Help more people around the world” –

MyFitnessPal

• “Deliver awesome end-to-end

workforce technology solutions and

strategies” – Intuit

• “Become Nordic champion of digital

advantage” - EVRY

REMEMBER

GIVE DIRECTION

Where to we need to go?

ADD VALUE

Does it get us closer to our vision and mission?

MAKE IT MEMORABLE

Is it focused and precise?

INSPIRE

Is the objective big enough to truly motivate?

Key results tells you if you are getting closer to the objective or not


A Key Result is a metric with a starting

value and a target value that measures

progress towards an Objective. A Key

Result is like a signpost with a distance

that shows how close you are to your

Objective.

• “Add 27M new users in 2014” –

MyFitnessPal

• “Deliver 126 fully certified ovens by

30/11” – Zume Pizza

• “Increase our EBITA run rate from 12.3

to 13.5% (with organic growth run rate

above 4%)” – EVRY

REMEMBER

MEASURABLE

Needs to be a number

ACHIEVABLE

Must make the objective achievable! If we reach the key result,

we reach our objective

CHALLENGING

Make sure it is challenging enough to bring out the best efforts

and creative thinking in your employees

IMPORTANT

Focus on the most important key results

123

Initiatives are specific activities to influence the Key Results


An Initiative is a description of the work

you’ll do to influence a Key Result. If an

Objective is your destination and a Key

Result shows the distance to go, an

Initiative describes what you’ll do to get

there.

• “Establish governance for EXPO / TOP”

– EVRY

• “Develop Cybersecurity certification

programme” – EVRY

• “Send offer to HEMIT” – EVRY

REMEMBER

NOT A TO-DO LIST

Initiatives are important activities, not a complete list of

everything you do everyday

YES/NO

Initiatives are possible to track back and see whether they are

completed or not

MEASURABLE

Must be able to measure progress in all initiatives

RELEVANT

All initiatives must affect at least one key result

123




Table of contents

Stay focused

Avoid having too many Objectives, Key Results and

Initiatives

360 ̊ Alignment

Make sure to align your Objectives, Key Results and

Initiatives bottom-up, top-down and horizontally

Apply

Use OKR in day-to-day operations

Communicate

Communicate your OKRs to the whole division

Be transparent

Let all your employees know your OKRs. OKR is made to

mobilize the competence of your entire division

13

There are several success factors and pitfalls to avoid

MBO and OKR

SUCCESS FACTORS PITFALLS

OKR is used for reporting

Keeps managers from choosing ambitious Objectives and

challenging Key Results

Linking OKR to Bonuses

Use OKR as a guide, not a grade, to self assess where you

have delivered on-, beyond- or below expectations

Updating OKR right before BR

OKR reaches its potential value when it is used

continuously throughout the whole year

Not using Perdoo as the OKR application

Using Perdoo is essential in order to succeed in

transparency and regular updates

UNDERSTANDING HOW MBO AND OKR IS APPLIED IN EVRY

OKR in EVRY

14

The basics of OKR in EVRY

How to use OKR in EVRY

Examples

Table of contents

16

EVRY terminology

The Basics of OKR in EVRY

MAN A G E M E N T B Y O B JE C T IV E S

OBJECTIVES

• Qualitatively expresses what we wish to

achieve

• Should be ambitious

KEY RESULTS

• Measurable (SMART) results

OKRS THE EVRY WAY

MÅLSTYRT LEDELSE

AMBISJONER

• Beskriver kvalitativt og overordnet hva vi

ønsker å få til

• Uttrykker hvilken verdi vi ønsker å skape

MÅLBARE RESULTATER

• Målbare (SMARTe) resultater

• Mål = indikator + måltall + dato

17

OKR is expected to be used regularly


IT’S NOT ADMINISTRATIVE

BUSYWORK, BUT AN IMPORTANT

WAY TO SET PRIORITIES AND MAKE

SURE WE ARE ALL WORKING

TOGETHER

OKR is used in day-to-day execution of activities in all divisions

All managers have their OKRs in Perdoo

All managers check into Perdoo weekly

All managers update initiatives and key results at least bi-weekly

Managers are responsible for involving the rest of the organisation


THIS FALL, MANAGERS WILL GET ACCESS TO

PERDOO, WITH PERMISSION TO ADD, EDIT AND

KEEP TRACK……

….MAN AG E R S AR E R E S P O N S IB L E T O IN V O L V E T H E IR

TEAM(S)500 8500

Leaders add, edit and follow OKRs in

Perdoo, but make sure to include the

thoughts of your employees

Use OKR during 1:1 meetings and team

meeting in order keep employees up to

speed

TRANSPARENCY AND INVOLVEMENT IS ESSENTIAL TO MOBILIZE THE FULL POTENTIAL OF THE ORGANIZATION



Examples

Table of contents

20

Focus on three phases in order to successfully apply OKR

How to OKR in EVRY

GET STARTED

Done is better than perfect

RE-ITERATE

We learn, not from experience,

but from reflection on experience

DAY TO DAY EXECUTION

Get to know OKR, and use it!

Get started

How to OKR in EVRY

Start

Manager informs the

rest of the group about

expectations and

distributes all relevant

material

Everyone, individually

reads the distributed

material and prepares

suggestions for

Objectives, key results

and initiatives

OKR workshop with all

leaders physically present.

Create first draft of unit

OKR

OKR discussion and

revision of OKR’s – are

these the right ones? Are

they aligned? Can we

measure it?

Set up unit OKR’s in

Perdoo and assign

responsibilities. Make

your OKRs real by

communicating them to

the rest of the

organization. Show EVRY

what is important to you

and how you plan to

support company-level

objectives.

Align with others and see

where your unit can

contribute to the bigger

picture

Get started by writing your Objectives and Key results

How to OKR in EVRY

THE OKR FORMULA

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

OBJECTIVES

▪ Aspirational – Motivate and challenge the team.

▪ Memorable – Simpler, shorter and easy to memorize.

Shouldn’t be boring.

▪ Qualitative – No numbers.

▪ Fit your Culture – Can be informal and fun. Slangs and

internal jokes can be used – whatever fits your culture.

KEY RESULTS

▪ Quantitative – Every Key Result should have a number.

▪ Value based – Measure results instead of holding a list of

tasks/deliverables/projects.

▪ Deliver results during the quarter – Doing a 3 month

project to deliver results in the next quarter is not enough.

▪ Try breaking down your project in smaller pieces to

deliver value sooner.

Using OKR in day-to-day meetings

How to OKR in EVRY

Own

unit

1:1 – Unit Management

Unit manager responsible

Unit Internal BR


Unit Internal Extended BR

(Apr/Aug/Oct/Jan)


Unit Management Meeting


Participants: Head of unit & one manager

OKR Agenda: Specific discussions on progress of Key

Results, and necessary actions that

need to be taken

Desired outcome:Guidance on direction from Head of

unit; and

Specific actions on the Key Results and

related Initiatives

Participants: Head of unit & Finance & BG team

OKR Agenda: Specific discussions on progress of Key

Results, and necessary actions that

need to be taken to ensure execution;

and

Discussion on including new Initiatives

Desired outcome:High level insight in progress of Key

Results; and Specific actions on the

Initiatives

Participants: Head of Unit & Finance & BG team

OKR Agenda: Review in Perdoo; incl:

Review of progress of Key Results;

Review execution status of Initiatives

from last quarter;

Discussion on Initiatives for next four

quarters

Desired outcome:Preparation for Extended parent BR; i.e.

Complete status on progress of Key

Results and execution of Initiatives for

last quarter

Participants: Unit Management

OKR Agenda: Progress of the Key Results initiatives

the managers are responsible for in that

quarter

Desired outcome:Transparency on initiatives, and

collaborative discussions cross units

Parent

unit

1:1 – with your leader

Unit manager with his/her leader

Parent BR

Unit manager participates

Extended BR

(Apr/Aug/Oct/Jan)


Unit Management Meeting


Re-Iterate

How to OKR in EVRY

Reflect

We learn, not from experience, but from reflection on

experience.

Gather your team and reflect upon the last period.

Where did we succeed, and where did we fail? Take

notes and go back. Make necessary changes and look

forward in order to reach your objectives.

Ask difficult questions

Don’t be afraid of asking difficult questions and facing

difficult answers. You will fail, you will learn and

eventually you will succeed. However, in order to

create exceptional value, we must walk upstream.

Be flexible

The biggest mistake is not having the wrong OKR but

failing to do something about it. Sometimes we make

the wrong decisions, but there is not wrong to iterate

and change. OKR is not for reporting but for

staying focused and on track.

Pick your battles

Stay focused! Do not include everything in your OKRs.

OKR is not a to-do list, but a prioritization of the

objectives which need attention and what activities we

are dependent on completing.

In EVRY, OKRs are defined on different levels of

the organization. In order to optimize alignment

you need to have a top-down, bottom-up and

horizontal perspective. Use Perdoo in order to

know the direction of the company and your

colleagues.

Aligning OKRs is crucial in order to pull in the same direction

How to OKR in EVRY

Try to align as much as possible with the rest of

the organization. However, not everything can be

aligned. There is also value in knowing where we

are not aligned and moving in opposite

directions.

The Rule of Thumb of Alignment

How to OKR in EVRY

When defining your division’s Objectives you do not have to fully adopt the ones from the level above in

the OKR hierarchy. 1/3 of your division's objectives can be unique and reflect something your division

considers an important goal for the next period to come. Discuss, focus and execute!

See next page

How to OKR in EVRY

One common

set of

objectives

2/3 Group

objectives.

Selectivity and

focus.

Align with

level above,

below and

sideways

Group Group Functions

DPS FS Consult. BAN BAS

SME

P&H

R&L

I&S

SME

P&H

R&L

I&S

Nordic

SME

DDS

Nordic

P&H

Nordic

R&L

Nordic

I&S

Delivery Cognitive ……

App. Systems ……

The cascading of OKRs does not necessarily follow EVRY’s

organizational structure

What responsibilities follow if I am «lead» on an Objective, key result or

an initiative?

How to OKR in EVRY

Does not imply that you are personally responsible for reaching an objective, key result or

initiative. You are responsible for making sure that there are initiatives to help reach the key

results and that progress is updated regularly



Examples

Table of contents

31

Alignment happens both bottom-up, top-down and horizontally

Examples

GROUP BAN P&H

Become an

awesome place

to work

[…]

Score a

company-wide

employee

satisfaction of

10

[…]

Invite all EVRY

employees for

the summer

party

Offer tailored

development

plans for all

employees

Become an

awesome place

to work

[…]

Hire 10 new

employees in

2019

[…]

Be present

during carrier

fairs on relevant

campuses

Assign mentors

to attractive

candidates

Become an

awesome place

to work

[…]Reduce the sick

leave by 2 pp

[…]

Invite all

employees for

10 minutes of

stretching after

lunch every day

Spend 10

minutes of

appraisals to

focus on mental

and physical

health

Documents

Management by objectives and OKR in EVRY