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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
+Pluswerk AG
2
Your Partner for the Digital Transformation
26.10.2016 | Objectives & Key Results | OKR
326.10.2016 | Objectives & Key Results | OKR
+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
+Pluswerk AG - Fullservice Agency for the Digital Transformation
Consulting Agency Systems House
26.10.2016 | Objectives & Key Results | OKR
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
References
26.10.2016 | Objectives & Key Results | OKR
Leadership
8
at EDEKA
26.10.2016 | Objectives & Key Results | OKR
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
EDEKA
10
● Employees: 346.800
● Retailer: 4.500
● Shops: 12.600
● Revenue: 48,4 Mrd. EUR
26.10.2016 | Objectives & Key Results | OKR
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
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
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
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
OKR
15
Agile and modern leadership of employees
26.10.2016 | Objectives & Key Results | OKR
The traditional “Management by
Objectives” comes to an end...
1626.10.2016 | Objectives & Key Results | OKR
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
MbO =
Demotivation
&
Disorientation
?
1826.10.2016 | Objectives & Key Results | OKR
“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
“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
Top down
Unidirectional
Irreversible flow
No feedback loops
No transparency
21
The MbO waterfall
26.10.2016 | Objectives & Key Results | OKR
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
Why are we not able to execute
strategies & goal management
properly?
2326.10.2016 | Objectives & Key Results | OKR
30% failure to coordinate across units
24
Why Strategy Execution Unravels, HBR - 2015
40% failure to align
26.10.2016 | Objectives & Key Results | OKR
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
2626.10.2016 | Objectives & Key Results | OKR
How does the Silicon Valley handle this
goal management thing...
2726.10.2016 | Objectives & Key Results | OKR
28
OKRObjectives & Key Results
26.10.2016 | Objectives & Key Results | OKR
Objectives
29
Inspiring Motivating Qualitative
Measurable QuantitativeMetrics Milestones
Impressing
Key Results
26.10.2016 | Objectives & Key Results | OKR
Objective
30
To be a
perfect cook
26.10.2016 | Objectives & Key Results | OKR
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
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
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
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
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
Challenges
36
at EDEKA
26.10.2016 | Objectives & Key Results | OKR
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
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
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
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
Next steps
41
with OKR
26.10.2016 | Objectives & Key Results | OKR
42
Sources
okr-beratung.de
amomi.de
26.10.2016 | Objectives & Key Results | OKR
43
Sources
okrguide.org Amazon
26.10.2016 | Objectives & Key Results | OKR
44
Video Training
www.video2brain.com
26.10.2016 | Objectives & Key Results | OKR
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
Thank you very much!
46
And much success with OKR
okr-beratung.de
26.10.2016 | Objectives & Key Results | OKR
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
+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
www.pluswerk.ag

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

  • 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. +Pluswerk AG 2 Your Partner for the Digital Transformation 26.10.2016 | Objectives & Key Results | OKR
  • 3. 326.10.2016 | Objectives & Key Results | OKR
  • 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 +Pluswerk AG - Fullservice Agency for the Digital Transformation Consulting Agency Systems House 26.10.2016 | Objectives & Key Results | OKR
  • 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
  • 8. Leadership 8 at EDEKA 26.10.2016 | Objectives & Key Results | OKR
  • 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. EDEKA 10 ● Employees: 346.800 ● Retailer: 4.500 ● Shops: 12.600 ● Revenue: 48,4 Mrd. EUR 26.10.2016 | Objectives & Key Results | OKR
  • 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. 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. 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. 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. OKR 15 Agile and modern leadership of employees 26.10.2016 | Objectives & Key Results | OKR
  • 16. The traditional “Management by Objectives” comes to an end... 1626.10.2016 | Objectives & Key Results | OKR
  • 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
  • 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. “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. Top down Unidirectional Irreversible flow No feedback loops No transparency 21 The MbO waterfall 26.10.2016 | Objectives & Key Results | OKR
  • 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. Why are we not able to execute strategies & goal management properly? 2326.10.2016 | Objectives & Key Results | OKR
  • 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. 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. 2626.10.2016 | Objectives & Key Results | OKR
  • 27. How does the Silicon Valley handle this goal management thing... 2726.10.2016 | Objectives & Key Results | OKR
  • 28. 28 OKRObjectives & Key Results 26.10.2016 | Objectives & Key Results | OKR
  • 29. Objectives 29 Inspiring Motivating Qualitative Measurable QuantitativeMetrics Milestones Impressing Key Results 26.10.2016 | Objectives & Key Results | OKR
  • 30. Objective 30 To be a perfect cook 26.10.2016 | Objectives & Key Results | OKR
  • 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. 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. 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 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. 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. Challenges 36 at EDEKA 26.10.2016 | Objectives & Key Results | OKR
  • 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. 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. 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. 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. Next steps 41 with OKR 26.10.2016 | Objectives & Key Results | OKR
  • 43. 43 Sources okrguide.org Amazon 26.10.2016 | Objectives & Key Results | OKR
  • 44. 44 Video Training www.video2brain.com 26.10.2016 | Objectives & Key Results | OKR
  • 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. Thank you very much! 46 And much success with OKR okr-beratung.de 26.10.2016 | Objectives & Key Results | OKR
  • 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 +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