Challenges of agile strategy implementation and goal-oriented employee management

Currently, many companies have converted their organizational structure and processes in parts or comprehensively to an agile model in order to achieve more flexibility and a value-maximizing focus of budgets and resources. Our experience is that from a certain scope of scaled agility onwards, an overarching, coordinated agile target management system must also be established - we advise on this on the basis of the OKR framework (Objectives and Key Results).

Particularly when larger, scaled agile organizational units have established their delivery organization, challenges increasingly arise in planning and managing corporate goals for strategy implementation.

Central to this is that teams or departments are often decoupled from the overarching corporate strategy or it is not clearly formulated at all. Employees at all levels of the hierarchy thus often find it difficult to transparently recognize the value contribution of their work to the overarching goals. We often see managers setting goals top-down without gaining sufficient insight into the actual challenges of the team's day-to-day work, and consequently communicating uncoordinated or unrealistic goals and expectations. In most cases, goals are broken down directly to individuals and measured against fixed KPIs.

Consequently, we see in many companies that employees optimize themselves in the form of meeting their personal KPIs as easily as possible. The focus is then on achieving personal goals (measured by output) instead of focusing on a value-creating outcome to achieve the corporate strategy.