Beyond KPIs and OKRs: Creating an environment for high-performing, innovative teams that leads to true effectiveness

1. @AgileBossaNova | agilebossanova.org1@JuttaEckstein | @johnabuck Jutta Eckstein | @juttaeckstein John Buck | @johnabuck http://agilebossanova.org @AgileBossaNova | #agilebossanova Beyond KPIs and OKRs: Creating an environment for high-performing, innovative teams that leads to true effectiveness Company-wide Agility with BOSSA nova http://tinyurl.com/AgileBossaNova

2. @AgileBossaNova | agilebossanova.org2@JuttaEckstein | @johnabuck Goal for the Workshop ■ Learn how to use something more effective than OKRs & KPIs how: – To use BOSSA nova for enabling people to use their full capacity with passion. – Trust unleashes a greater performance than control systems that use top-down measurement. – To get the full buy-in for necessary changes and thus faster delivery of the change. – To get top management buy-in by proving rather than asking!

3. @AgileBossaNova | agilebossanova.org3@JuttaEckstein | @johnabuck Agenda ■ Welcome & set the stage ■ Defining the context ■ Challenges for high-performing innovative teams ■ Values for company-wide agility as enablers for innovative teams ■ A new perspective ■ Using probes ■ Next steps & wrap-up

4. @AgileBossaNova | agilebossanova.org4@JuttaEckstein | @johnabuck Discuss & Note ■ In pairs/triples clarify your understanding of KPIs & OKRs (feel free to search the internet) – What are they? – How are they used? (In theory & possibly in your experience) – How do they differ? ■ Note on the jamboard

5. @AgileBossaNova | agilebossanova.org5@JuttaEckstein | @johnabuck What? Challenges

6. @AgileBossaNova | agilebossanova.org6@JuttaEckstein | @johnabuck Discuss & Note ■ In your pairs/triples reflect, discuss & and note – How do KPIs & OKRs fit into the VUCA times? • What are your experiences with them (if at all)? • What are the advantages & disadvantages of each? • What assumptions underlie the use of KPIs & OKRs?

7. @AgileBossaNova | agilebossanova.org7@JuttaEckstein | @johnabuck What Really Supports High Performance? ■ Find out what has supported or hindered creating an environment for high-performing, innovative teams – Individually: reflect on what has supported or hindered…. (5min) – In small groups: share the insights and common themes and come up with key challenges (15min) ■ Share in plenary

8. @AgileBossaNova | agilebossanova.org8@JuttaEckstein | @johnabuck

11. @AgileBossaNova | agilebossanova.org11@JuttaEckstein | @johnabuck Gaining & Sharing Knowledge ■ In groups based on previous knowledge, the principles, your internet search, … – Choose one of the following topics: • Beyond Budgeting (Breakout Room 1) • Open Space (Breakout Room 2) • Sociocracy (Breakout Room 3) – Study how the topic supports high-performing, innovative teams. As a group (on the jamboard): • List 5-10 facts about the topic • Write a summary statement • Come up with max 3 questions you have about the topic

12. @AgileBossaNova | agilebossanova.org12@JuttaEckstein | @johnabuck Self-Organization ■ Accenture: – Frequent conversations (“check-ins”) – Realign goals to respond to change – Conversations focus on both reflection and future. The latter is stressed more ■ Equinor (former Statoil) – Individual performance goals can be changed by the teams but • They have to coordinate the change with other teams & • Big approvals require approval one level up

13. @AgileBossaNova | agilebossanova.org13@JuttaEckstein | @johnabuck Transparency ■ Endenburg Electrotechniek (Electrical Engineering) – 360 degree review in person • Not anonymous comments collected by a manager • In a circle: your supervisor, a peer to you, a couple of people reporting to you • Like a retrospective, – each person (starting with you) offers things you’re doing well (& the system is doing well) – each person (starting with you) offers improvements • Everyone consents to your development plan (and changes needed in the system) • The plan is approved by full circle

14. @AgileBossaNova | agilebossanova.org14@JuttaEckstein | @johnabuck Constant Customer Focus ■ Connect everyone’s work with customer needs; avoid conflicts of interest – “The purpose of business is to create a customer...” (Peter Drucker, 2006) – Everything done in an organization should add value for the customer, thus: • How does the performance support creating customer value? • Does the performance inspire others to create customer value? – As a team create a value stream and discuss: • How effectively are we creating customer value? • Where do we see conflicts of interests in our work e.g. selling to the customer instead of serving the customer’s needs?

15. @AgileBossaNova | agilebossanova.org15@JuttaEckstein | @johnabuck Continuous Learning ■ Cox Automotive – Framing goals to promote cross-functional collaborative teamwork – Learning and adapting goals throughout the year – Getting feedback on goals and development – A manager’s role in your Enterprise Agile ecosystem ■ Equinor (former Statoil)- Analogy of 100 meter sprinter – How you ran is different than the time you got. – The outcome is different from your process. ■ Link appraisal conversations to team retrospectives (Source: Agile People) – Invite team members to evaluate their contribution to the sprint

21. @AgileBossaNova | agilebossanova.org21@JuttaEckstein | @johnabuck Is Trust Cheaper? ■ Background: – Traditional travel expense procedures are burdensome and assume people can’t be trusted. ■ Hypothesis: – Such procedures cost more than they save and are demoralizing. ■ Experiment: – Pre-survey and audit. Try for three months in a few units with other units as controls. Post-survey and audit.

22. @AgileBossaNova | agilebossanova.org22@JuttaEckstein | @johnabuck Can peer decision-making about promotion support alignment? ■ Background: – Even very egalitarian companies have hierarchies that require a promotion system. ■ Hypothesis: – If we use peer decision making to make decisions about promotions, we can separate performance review from decisions such as promotion that have an element of competition. ■ Experiment: – Pre-survey to assess opinion on promotion policy – Try with a group consent decision making for deciding on bonuses. – Collect spontaneous feedback and post-survey after 3 months. If satisfaction improved, extend to other groups.

24. @AgileBossaNova | agilebossanova.org24@JuttaEckstein | @johnabuck Reflect On Your Situation ■ Choose the group with the key challenge, you’re most interested in and take time to reflect on your situation. – How are we thinking about our situation? • E.g., what are we assuming? • What would it be like if we didn’t make that assumption? – In general, don’t focus on something broad and big - if you make a probe on something small it’s more likely it will be useful (both for yourself and for others). – What is your challenge and what is it not? – What might be the source of the difference? ■ Be sure to keep notes

25. @AgileBossaNova | agilebossanova.org25@JuttaEckstein | @johnabuck Definition of a Probe ■ Probes are defined by small, safe-to-fail experiments based on hypotheses derived from reflection on the current situation as well as on theory.

26. @AgileBossaNova | agilebossanova.org26@JuttaEckstein | @johnabuck COMPLEXITY Dave Snowden (Cynefin) | Ralph Stacey ● No agreement and no predictability means chaos ● Complete agreement is and predictability means “Simple/Obvious” ● Complex means can’t know cause and effect (only patterns) ● Probes start with “reflexive inquiry” (Thinking about how you are thinking.) Source: Dave Snowden © CC BY 3.0

27. @AgileBossaNova | agilebossanova.org27@JuttaEckstein | @johnabuck Complexity - Human Systems Dynamics (HSD) Model created by: Glenda Eoyang

29. @AgileBossaNova | agilebossanova.org29@JuttaEckstein | @johnabuck Design of a Probe ■ Name of the Probe: – <A question that reflects your hypothesis, your curiosity> ■ Background: – <Define the context of your situation> ■ Hypothesis: – <Define what you expect to happen> – <Observable impact> ■ Safe-to-fail experiment: – <Define what do you want to try and how you can (dis) prove the hypothesis>

30. @AgileBossaNova | agilebossanova.org30@JuttaEckstein | @johnabuck Hypothesis & Experiments ■ The hypothesis – Should be an assumption / a statement about • What you expect to happen • Under such and such conditions ■ The experiment(s): – Its purpose is to test your assumption stated in the hypothesis – Need some kind of measurement (pre-/post) or comparisons with control groups – Need to be actionable by the author

31. @AgileBossaNova | agilebossanova.org31@JuttaEckstein | @johnabuck Create a Probe for a Key Challenge ■ In pairs/triples select a challenge and create a probe for that challenge – Background – Hypothesis – A plan for an experiment

32. @AgileBossaNova | agilebossanova.org32@JuttaEckstein | @johnabuck Measurement & Control ■ Video on controlled experiments: https://www.youtube.com/watch?v=VhZyXmgIFAo ■ Without comparison you won’t know what you learned – Pre- and post-measure for comparing results: • Measure your observation (stated in the background) • Use the same measurement after conducting the experiment – Controls for comparing results - if possible • Use two (or more) comparable groups • One group conducts the experiment the other (control group) does not

33. @AgileBossaNova | agilebossanova.org33@JuttaEckstein | @johnabuck Importance of Publication ■ Collaborative learning depends on sharing learnings ■ Publishing also contributes to the author’s learning – as an author you need to reflect and look at your learning from a different perspective

34. @AgileBossaNova | agilebossanova.org34@JuttaEckstein | @johnabuck Improving Your Probes ■ In your pair/triples work on your probe – Improve your hypothesis – Improve the experiment(s)

35. @AgileBossaNova | agilebossanova.org35@JuttaEckstein | @johnabuck Next Steps ■ What are your next steps? (note on jamboard)

36. @AgileBossaNova | agilebossanova.org36@JuttaEckstein | @johnabuck Creating an Environment for high-performing innovative teams

37. @AgileBossaNova | agilebossanova.org37@JuttaEckstein | @johnabuck Thank you so much and… Stay in Touch: Jutta Eckstein | @juttaeckstein John Buck | @johnabuck http://agilebossanova.org https://www.agilebossanova.com/book/ @AgileBossaNova | #agilebossanova Company-wide Agility with BOSSA nova http://tinyurl.com/AgileBossaNova