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.”
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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 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

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