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

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The major players in the industry - such as Google, LinkedIn, Zalando, Red Bull, Oracle & Co. - demonstrate it. In modern enterprises, a modern and contemporary framework is used for personnel management - OKR (Objectives & Key Results). Are goal management and "New Work" opposites? OKR combines

both! We explain the method and the framework in detail and show why it is so successful in times of digital transformation - even or especially at EDEKA.

Published in: Leadership & Management
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How leadership of employees via Objectives and Key Results (OKR) speeds up the digital transformation at EDEKA

  1. 1. 1 26.10.2016 / T3CON 2016 / Munich Patrick Lobacher & Manuel Eisbrenner www.pluswerk.ag OKR How leadership of employees via Objectives and Key Results (OKR) speeds up the digital transformation at EDEKA
  2. 2. +Pluswerk AG 2 Your Partner for the Digital Transformation 26.10.2016 | Objectives & Key Results | OKR
  3. 3. 326.10.2016 | Objectives & Key Results | OKR
  4. 4. +Pluswerk AG in a nutshell 4 • 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 Lobacher Chairman of the board 26.10.2016 | Objectives & Key Results | OKR
  5. 5. 5 +Pluswerk AG - Fullservice Agency for the Digital Transformation Consulting Agency Systems House 26.10.2016 | Objectives & Key Results | OKR
  6. 6. 6 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 26.10.2016 | Objectives & Key Results | OKR
  7. 7. 7 References 26.10.2016 | Objectives & Key Results | OKR
  8. 8. Leadership 8 at EDEKA 26.10.2016 | Objectives & Key Results | OKR
  9. 9. EDEKA 9 The Edeka Group is the largest German supermarket corporation, currently holding a market share of 26%. 26.10.2016 | Objectives & Key Results | OKR
  10. 10. EDEKA 10 ● Employees: 346.800 ● Retailer: 4.500 ● Shops: 12.600 ● Revenue: 48,4 Mrd. EUR 26.10.2016 | Objectives & Key Results | OKR
  11. 11. EDEKA Eisbrenner 11 ● One of the most innovative and profitable retailer within the group ● Location: Hannover ● Employees: >= 60 26.10.2016 | Objectives & Key Results | OKR
  12. 12. EDEKA Eisbrenner 12 “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?” 26.10.2016 | Objectives & Key Results | OKR
  13. 13. EDEKA Eisbrenner 13 ● Manuel Eisbrenner was looking for a way to increase the following: ○ Employee motivation ○ Customer satisfaction ○ Productivity ○ Management absence (self organizing) 26.10.2016 | Objectives & Key Results | OKR
  14. 14. EDEKA Eisbrenner 14 ● 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 26.10.2016 | Objectives & Key Results | OKR
  15. 15. OKR 15 Agile and modern leadership of employees 26.10.2016 | Objectives & Key Results | OKR
  16. 16. The traditional “Management by Objectives” comes to an end... 1626.10.2016 | Objectives & Key Results | OKR
  17. 17. Just 13% of all employees (worldwide) are really motivated in their jobs... 17 Just 55% of all managers could name at least one company priority... Gallup Daily Tracking, Januar 2016 26.10.2016 | Objectives & Key Results | OKR
  18. 18. MbO = Demotivation & Disorientation ? 1826.10.2016 | Objectives & Key Results | OKR
  19. 19. “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.” 19 Jeff Immelt, CEO GE, 2015 What’s wrong with a MbO? 26.10.2016 | Objectives & Key Results | OKR
  20. 20. “Allthough we are using agile tactically, we are using waterfall for strategy and goal setting” 20 Felipe Castro, 2016 26.10.2016 | Objectives & Key Results | OKR
  21. 21. Top down Unidirectional Irreversible flow No feedback loops No transparency 21 The MbO waterfall 26.10.2016 | Objectives & Key Results | OKR
  22. 22. 22 Culture Top Down, C&C, Family/Performance/... Strategy Annual static planning Goals Cascading (waterfall) goals Tactics Planning Operations Waterfall development The traditional stack 26.10.2016 | Objectives & Key Results | OKR
  23. 23. Why are we not able to execute strategies & goal management properly? 2326.10.2016 | Objectives & Key Results | OKR
  24. 24. 30% failure to coordinate across units 24 Why Strategy Execution Unravels, HBR - 2015 40% failure to align 26.10.2016 | Objectives & Key Results | OKR
  25. 25. Digital Transformation / Digitalization 25 Legacy Company complicated hierarchical management processes knowledge formal rigid ... Digital Company complex network leadership people skills dynamic agile ... Planning, management, optimization and implementation of the company’s value-added chain in the digital age Agile / Lean Scrum Kanban Design Thinking / LSP Lean Startup OKR / 4DX Management 3.0 ... Digital Business Transformation 26.10.2016 | Objectives & Key Results | OKR
  26. 26. 2626.10.2016 | Objectives & Key Results | OKR
  27. 27. How does the Silicon Valley handle this goal management thing... 2726.10.2016 | Objectives & Key Results | OKR
  28. 28. 28 OKRObjectives & Key Results 26.10.2016 | Objectives & Key Results | OKR
  29. 29. Objectives 29 Inspiring Motivating Qualitative Measurable QuantitativeMetrics Milestones Impressing Key Results 26.10.2016 | Objectives & Key Results | OKR
  30. 30. Objective 30 To be a perfect cook 26.10.2016 | Objectives & Key Results | OKR
  31. 31. Objective 31 develop 3 own creations process 4 new spices create 2 African meals To be a perfect cook Key Results 26.10.2016 | Objectives & Key Results | OKR
  32. 32. Values OKR 32 Alignment Transparency (Intrinsic) Motivation Self Organizing Teams Continuous Improvement Short Interations Focus Commitment Priciples OKR 26.10.2016 | Objectives & Key Results | OKR
  33. 33. History of OKR 33 • 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, ... 26.10.2016 | Objectives & Key Results | OKR
  34. 34. 34 The OKR cycle Mission statement (MSC) Moals OKR ZyklusOKR Planning Weekly OKR OKR Review Retros- pektive OKR-List OKR Master Standard OKR Extension by pluswerk:consulting 3 - 10 years 1 year 3-4 months 26.10.2016 | Objectives & Key Results | OKR
  35. 35. OKR 35 • 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” 26.10.2016 | Objectives & Key Results | OKR
  36. 36. Challenges 36 at EDEKA 26.10.2016 | Objectives & Key Results | OKR
  37. 37. Challenges at EDEKA 37 • Different working times • Different commitment • High amount of “mini-jobber” • Different knowledge status • Teams are changing “on-the fly” • High stress level 26.10.2016 | Objectives & Key Results | OKR
  38. 38. Solutions for the challenges 38 • 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, …) 26.10.2016 | Objectives & Key Results | OKR
  39. 39. Solutions for the challenges 39 • Adjustment of OKR-Framework to reflect working environment • Choose software (Trello in this case) • Coaching of first events • Support 26.10.2016 | Objectives & Key Results | OKR
  40. 40. Learnings 40 • 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 26.10.2016 | Objectives & Key Results | OKR
  41. 41. Next steps 41 with OKR 26.10.2016 | Objectives & Key Results | OKR
  42. 42. 42 Sources okr-beratung.de amomi.de 26.10.2016 | Objectives & Key Results | OKR
  43. 43. 43 Sources okrguide.org Amazon 26.10.2016 | Objectives & Key Results | OKR
  44. 44. 44 Video Training www.video2brain.com 26.10.2016 | Objectives & Key Results | OKR
  45. 45. 45 Conferences Agile Leadership with OKRs 16. November 2016, 12:40 - 13:25 Uhr The agile company 26. 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 26.10.2016 | Objectives & Key Results | OKR How leadership of employees via Objectives und Key Results (OKR) speeds up the digital transformation at EDEKA | 26.10.2016
  46. 46. Thank you very much! 46 And much success with OKR okr-beratung.de 26.10.2016 | Objectives & Key Results | OKR
  47. 47. Contact 47 Christian Jacob christian.jacob@pluswerk.ag +49 89 130 145 22 Patrick Lobacher patrick.lobacher@pluswerk.ag +49 89 130 145 20 Magnus Schubert magnus.schubert@pluswerk.ag +49 2204 842662 pluswerk:okr +Pluswerk AG Wilhelm Hale Str. 53 80639 München T: +49 89 130 145 0 F: +49 89 130 145 10 info@pluswerk.ag www.okr-beratung.de www.pluswerk.ag 26.10.2016 | Objectives & Key Results | OKR
  48. 48. 48 +Pluswerk AG - Fullservice Agency for Digital Transformation Strategy Consulting Digital Technology Operations Digitalization / Digital Transformation Hosting Editorial Content Operations OKR / New Work (Digital) Leadership / Management 3.0 Agile / Lean / Innovation Mgt. Digital Vision Coaching / Sparing PM / Consulting Digital Agency CMS / CRM / PIM E-Commerce IoT CI / CD / Cloud Systemdevelopmen t Systemintegration 26.10.2016 | Objectives & Key Results | OKR
  49. 49. www.pluswerk.ag

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