3
EVRY wants all managers and employees to apply management by
objectives
Management by Objectives
MANAGEMENT BY OBJECTIVES (MBO)
“Management by objectives (MBO) is a strategic management
model that aims to improve the performance of an organization
by clearly defining objectives that are agreed to by both
management and employees.”
EVRY wants to be crystal clear and passionate about our
destination, and what to do to get there, thus we apply MBO
Define objectives by both management and employees
Agree howby thinking what needs to be done in order to reach the
objectives
Do ittogether!
Today, OKR is a widespread management tool in companies ranging from startups to industrial giants
OKRs are “neon-lit road signs” which demolish silos and cultivate connections among far-flung contributors. It gives rise to fresh
solutions and keep even the most successful organizations stretching for more
4
Objectives and Key Results (OKR) is a framework for applying
Management by objectives in daily activities
Management by Objectives
ObjectivesWhere do we need to go?
Key ResultsHow do we know we are getting there?
InitiativesWhat do we need to do in order to get there?
Ideas are easy. Execution is everything.
- John Doerr
OKR follows four important principles to ensure success with MBO
OKR Principles
Transparency
Clearly communicating
company objectives,
ensures everyone
understands the direction
EVRY is taking and what
needs to be accomplished
Focus
Understanding the
company’s priorities,
enables teams to decide
and organise their own
priorities to help EVRY
achieve its objectives
Alignment
Teams know that whatever
they do, it must be aligned
to EVRY’s top priorities,
anything outside of that,
can be saved for another
time
Engagement
Knowing that your work is
contributing to the bigger
picture, keeps you
motivated and engaged
because you can see how
your work impacts EVRY’s
progress
The tool that keeps us on track,
targeted and transparent
How we focus, prioritise and work in all levels of our organization
The Framework we apply
OKR and Perdoo are supporting us in applying MBO
Management by Objectives
OBJECTIVES AND KEY RESULTS
MANAGEMENT BY OBJECTIVES
Objectives are where we want to go, Key Results tell us if we are
getting there and Initiatives are activities resulting in progress
Objectives and Key Results
Objective
Key result D Key result E
Initiative 8 Initiative 9 Initiative 10
Where do we
need to go
How do we
know we are
getting there?
Specific
activities
Objectives sets the direction and inspires to action
Objectives and key results
An Objective is a description of a goal to be
achieved in the future. An Objective sets a
clear direction and provides motivation.
• “Help more people around the world” –
MyFitnessPal
• “Deliver awesome end-to-end
workforce technology solutions and
strategies” – Intuit
• “Become Nordic champion of digital
advantage” - EVRY
REMEMBER
GIVE DIRECTION
Where to we need to go?
ADD VALUE
Does it get us closer to our vision and mission?
MAKE IT MEMORABLE
Is it focused and precise?
INSPIRE
Is the objective big enough to truly motivate?
Key results tells you if you are getting closer to the objective or not
Objectives and key results
A Key Result is a metric with a starting
value and a target value that measures
progress towards an Objective. A Key
Result is like a signpost with a distance
that shows how close you are to your
Objective.
• “Add 27M new users in 2014” –
MyFitnessPal
• “Deliver 126 fully certified ovens by
30/11” – Zume Pizza
• “Increase our EBITA run rate from 12.3
to 13.5% (with organic growth run rate
above 4%)” – EVRY
REMEMBER
MEASURABLE
Needs to be a number
ACHIEVABLE
Must make the objective achievable! If we reach the key result,
we reach our objective
CHALLENGING
Make sure it is challenging enough to bring out the best efforts
and creative thinking in your employees
IMPORTANT
Focus on the most important key results
123
Initiatives are specific activities to influence the Key Results
Objectives and key results
An Initiative is a description of the work
you’ll do to influence a Key Result. If an
Objective is your destination and a Key
Result shows the distance to go, an
Initiative describes what you’ll do to get
there.
• “Establish governance for EXPO / TOP”
– EVRY
• “Develop Cybersecurity certification
programme” – EVRY
• “Send offer to HEMIT” – EVRY
REMEMBER
NOT A TO-DO LIST
Initiatives are important activities, not a complete list of
everything you do everyday
YES/NO
Initiatives are possible to track back and see whether they are
completed or not
MEASURABLE
Must be able to measure progress in all initiatives
RELEVANT
All initiatives must affect at least one key result
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Stay focused
Avoid having too many Objectives, Key Results and
Initiatives
360 ̊ Alignment
Make sure to align your Objectives, Key Results and
Initiatives bottom-up, top-down and horizontally
Apply
Use OKR in day-to-day operations
Communicate
Communicate your OKRs to the whole division
Be transparent
Let all your employees know your OKRs. OKR is made to
mobilize the competence of your entire division
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There are several success factors and pitfalls to avoid
MBO and OKR
SUCCESS FACTORS PITFALLS
OKR is used for reporting
Keeps managers from choosing ambitious Objectives and
challenging Key Results
Linking OKR to Bonuses
Use OKR as a guide, not a grade, to self assess where you
have delivered on-, beyond- or below expectations
Updating OKR right before BR
OKR reaches its potential value when it is used
continuously throughout the whole year
Not using Perdoo as the OKR application
Using Perdoo is essential in order to succeed in
transparency and regular updates
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EVRY terminology
The Basics of OKR in EVRY
MAN A G E M E N T B Y O B JE C T IV E S
OBJECTIVES
• Qualitatively expresses what we wish to
achieve
• Should be ambitious
KEY RESULTS
• Measurable (SMART) results
OKRS THE EVRY WAY
MÅLSTYRT LEDELSE
AMBISJONER
• Beskriver kvalitativt og overordnet hva vi
ønsker å få til
• Uttrykker hvilken verdi vi ønsker å skape
MÅLBARE RESULTATER
• Målbare (SMARTe) resultater
• Mål = indikator + måltall + dato
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OKR is expected to be used regularly
The Basics of OKR in EVRY
IT’S NOT ADMINISTRATIVE
BUSYWORK, BUT AN IMPORTANT
WAY TO SET PRIORITIES AND MAKE
SURE WE ARE ALL WORKING
TOGETHER
OKR is used in day-to-day execution of activities in all divisions
All managers have their OKRs in Perdoo
All managers check into Perdoo weekly
All managers update initiatives and key results at least bi-weekly
Managers are responsible for involving the rest of the organisation
The Basics of OKR in EVRY
THIS FALL, MANAGERS WILL GET ACCESS TO
PERDOO, WITH PERMISSION TO ADD, EDIT AND
KEEP TRACK……
….MAN AG E R S AR E R E S P O N S IB L E T O IN V O L V E T H E IR
TEAM(S)500 8500
Leaders add, edit and follow OKRs in
Perdoo, but make sure to include the
thoughts of your employees
Use OKR during 1:1 meetings and team
meeting in order keep employees up to
speed
TRANSPARENCY AND INVOLVEMENT IS ESSENTIAL TO MOBILIZE THE FULL POTENTIAL OF THE ORGANIZATION
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Focus on three phases in order to successfully apply OKR
How to OKR in EVRY
GET STARTED
Done is better than perfect
RE-ITERATE
We learn, not from experience,
but from reflection on experience
DAY TO DAY EXECUTION
Get to know OKR, and use it!
Get started
How to OKR in EVRY
Start
Manager informs the
rest of the group about
expectations and
distributes all relevant
material
Everyone, individually
reads the distributed
material and prepares
suggestions for
Objectives, key results
and initiatives
OKR workshop with all
leaders physically present.
Create first draft of unit
OKR
OKR discussion and
revision of OKR’s – are
these the right ones? Are
they aligned? Can we
measure it?
Set up unit OKR’s in
Perdoo and assign
responsibilities. Make
your OKRs real by
communicating them to
the rest of the
organization. Show EVRY
what is important to you
and how you plan to
support company-level
objectives.
Align with others and see
where your unit can
contribute to the bigger
picture
Get started by writing your Objectives and Key results
How to OKR in EVRY
THE OKR FORMULA
I will (Objective) as measured by (this set of Key Results)
OBJECTIVES
▪ Aspirational – Motivate and challenge the team.
▪ Memorable – Simpler, shorter and easy to memorize.
Shouldn’t be boring.
▪ Qualitative – No numbers.
▪ Fit your Culture – Can be informal and fun. Slangs and
internal jokes can be used – whatever fits your culture.
KEY RESULTS
▪ Quantitative – Every Key Result should have a number.
▪ Value based – Measure results instead of holding a list of
tasks/deliverables/projects.
▪ Deliver results during the quarter – Doing a 3 month
project to deliver results in the next quarter is not enough.
▪ Try breaking down your project in smaller pieces to
deliver value sooner.
Using OKR in day-to-day meetings
How to OKR in EVRY
Own
unit
1:1 – Unit Management
Unit manager responsible
Unit Internal BR
Unit manager responsible
Unit Internal Extended BR
(Apr/Aug/Oct/Jan)
Unit manager responsible
Unit Management Meeting
Unit manager responsible
Participants: Head of unit & one manager
OKR Agenda: Specific discussions on progress of Key
Results, and necessary actions that
need to be taken
Desired outcome:Guidance on direction from Head of
unit; and
Specific actions on the Key Results and
related Initiatives
Participants: Head of unit & Finance & BG team
OKR Agenda: Specific discussions on progress of Key
Results, and necessary actions that
need to be taken to ensure execution;
and
Discussion on including new Initiatives
Desired outcome:High level insight in progress of Key
Results; and Specific actions on the
Initiatives
Participants: Head of Unit & Finance & BG team
OKR Agenda: Review in Perdoo; incl:
Review of progress of Key Results;
Review execution status of Initiatives
from last quarter;
Discussion on Initiatives for next four
quarters
Desired outcome:Preparation for Extended parent BR; i.e.
Complete status on progress of Key
Results and execution of Initiatives for
last quarter
Participants: Unit Management
OKR Agenda: Progress of the Key Results initiatives
the managers are responsible for in that
quarter
Desired outcome:Transparency on initiatives, and
collaborative discussions cross units
Parent
unit
1:1 – with your leader
Unit manager with his/her leader
Parent BR
Unit manager participates
Extended BR
(Apr/Aug/Oct/Jan)
Unit manager participates
Unit Management Meeting
Unit manager participates
Re-Iterate
How to OKR in EVRY
Reflect
We learn, not from experience, but from reflection on
experience.
Gather your team and reflect upon the last period.
Where did we succeed, and where did we fail? Take
notes and go back. Make necessary changes and look
forward in order to reach your objectives.
Ask difficult questions
Don’t be afraid of asking difficult questions and facing
difficult answers. You will fail, you will learn and
eventually you will succeed. However, in order to
create exceptional value, we must walk upstream.
Be flexible
The biggest mistake is not having the wrong OKR but
failing to do something about it. Sometimes we make
the wrong decisions, but there is not wrong to iterate
and change. OKR is not for reporting but for
staying focused and on track.
Pick your battles
Stay focused! Do not include everything in your OKRs.
OKR is not a to-do list, but a prioritization of the
objectives which need attention and what activities we
are dependent on completing.
In EVRY, OKRs are defined on different levels of
the organization. In order to optimize alignment
you need to have a top-down, bottom-up and
horizontal perspective. Use Perdoo in order to
know the direction of the company and your
colleagues.
Aligning OKRs is crucial in order to pull in the same direction
How to OKR in EVRY
Try to align as much as possible with the rest of
the organization. However, not everything can be
aligned. There is also value in knowing where we
are not aligned and moving in opposite
directions.
The Rule of Thumb of Alignment
How to OKR in EVRY
When defining your division’s Objectives you do not have to fully adopt the ones from the level above in
the OKR hierarchy. 1/3 of your division's objectives can be unique and reflect something your division
considers an important goal for the next period to come. Discuss, focus and execute!
See next page
How to OKR in EVRY
One common
set of
objectives
2/3 Group
objectives.
Selectivity and
focus.
Align with
level above,
below and
sideways
Group Group Functions
DPS FS Consult. BAN BAS
SME
P&H
R&L
I&S
SME
P&H
R&L
I&S
Nordic
SME
DDS
Nordic
P&H
Nordic
R&L
Nordic
I&S
Delivery Cognitive ……
App. Systems ……
The cascading of OKRs does not necessarily follow EVRY’s
organizational structure
What responsibilities follow if I am «lead» on an Objective, key result or
an initiative?
How to OKR in EVRY
Does not imply that you are personally responsible for reaching an objective, key result or
initiative. You are responsible for making sure that there are initiatives to help reach the key
results and that progress is updated regularly
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Alignment happens both bottom-up, top-down and horizontally
Examples
GROUP BAN P&H
Become an
awesome place
to work
[…]
Score a
company-wide
employee
satisfaction of
10
[…]
Invite all EVRY
employees for
the summer
party
Offer tailored
development
plans for all
employees
Become an
awesome place
to work
[…]
Hire 10 new
employees in
2019
[…]
Be present
during carrier
fairs on relevant
campuses
Assign mentors
to attractive
candidates
Become an
awesome place
to work
[…]Reduce the sick
leave by 2 pp
[…]
Invite all
employees for
10 minutes of
stretching after
lunch every day
Spend 10
minutes of
appraisals to
focus on mental
and physical
health