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

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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

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Your Partner for the Digital Transformation

26.10.2016 | Objectives & Key Results | OKR


+Pluswerk AG in a nutshell

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• 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


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+Pluswerk AG - Fullservice Agency for the Digital Transformation

Consulting Agency Systems House


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Innovations

Design Thinking

Lean Startup

Lego Serious Play

Business Model Canvas

Value Proposition Design

Lean Canvas

Objectives & Key Results

4DX

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


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References


Leadership

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at EDEKA


EDEKA

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The Edeka Group is the largest German supermarket corporation, currently

holding a market share of 26%.


EDEKA

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


EDEKA Eisbrenner

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

● Location: Hannover● Employees: >= 60


EDEKA Eisbrenner

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“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

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

(self organizing)


EDEKA Eisbrenner

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● 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


OKR

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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...

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

priority...

Gallup Daily Tracking, Januar 2016


MbO =

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.”

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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”

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Felipe Castro, 2016


Top downUnidirectional

Irreversible flowNo feedback loopsNo transparency

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The MbO waterfall


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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

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Why Strategy Execution Unravels, HBR - 2015

40% failure to align


Digital Transformation / Digitalization

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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...


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OKRObjectives & Key Results


Objectives

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Inspiring Motivating Qualitative

Measurable QuantitativeMetrics Milestones

Impressing

Key Results


Objective

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To be aperfect cook


Objective

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develop 3 own creations

process 4 new spices

create 2 African meals

To be aperfect cook

Key Results


Values OKR

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Alignment Transparency(Intrinsic)

Motivation

Self OrganizingTeams

ContinuousImprovement

Short Interations Focus

Commitment

Priciples OKR


History of OKR

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• 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, ...


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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


OKR

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• 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

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at EDEKA


Challenges at EDEKA

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• 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

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• 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

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• Adjustment of OKR-Framework to reflect working

environment

• Choose software (Trello in this case)

• Coaching of first events

• Support


Learnings

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• 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

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with OKR


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Sources

okr-beratung.de

amomi.de


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Sources

okrguide.org Amazon


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Video Training

www.video2brain.com


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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!

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And much success with OKR

okr-beratung.de


Contact

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Christian [email protected]+49 89 130 145 22

Patrick [email protected]+49 89 130 145 20

Magnus [email protected]+49 2204 842662

pluswerk:okr

+Pluswerk AGWilhelm Hale Str. 5380639 München

T: +49 89 130 145 0F: +49 89 130 145 [email protected]

www.okr-beratung.dewww.pluswerk.ag


mailto:[email protected]






http://www.okr-beratung.de

http://www.okr-beratung.de

http://www.pluswerk.ag

http://www.pluswerk.ag

http://www.creativestyle.de

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+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

IoT

CI / CD / CloudSystemdevelopmen

tSystemintegration


www.pluswerk.ag

Leadership & Management

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