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

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

+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 Lobacher
Chairman 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.”
19
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 down
Unidirectional
Irreversible flow
No feedback loops
No 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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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

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 a
perfect cook

Objective
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develop 3 own
creations
process 4 new
spices
create 2 African
meals
To be a
perfect cook
Key Results

Values OKR
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Alignment Transparency
(Intrinsic)
Motivation
Self Organizing
Teams
Continuous
Improvement
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
Weekly
OKR
OKR
Review
Retros-
pektive
OKR-List
OKR
Master
Standard OKR
Extension 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 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
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 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

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+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

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

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

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