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OKR Framework: A Better Way to Manage SAP S/4HANA Projects
Oct 4, 2024
Transformation projects usually involve a detailed documentation of the technical aspects. However, when it comes to managing and directing such projects, there’s often room for improvement. Felix Stepponat, Agile Coach & Scrum Master at Natuvion, explains how the OKR framework can help.
In the fast-paced world of enterprise software, the transition to SAP S/4HANA is more than just a trend – it’s a necessity. While the technical aspects of this transformation are well-documented, the question of how to effectively manage and direct these projects is often overlooked. This is where Objectives and Key Results (OKRs) come in – a method that not only sets the orientation but also makes progress measurable, ultimately driving the success of SAP S/4HANA transformation projects.
Why OKRs?
OKRs help teams and organizations define their goals and track progress towards achieving them. In SAP S/4HANA transformation projects, where scope and complexity are high, OKRs provide a clear framework for what needs to be achieved and how success will be measured. They promote transparency, alignment, and focus, ensuring that all team members are working toward the same goals and understand how their efforts contribute to the bigger picture.
Defining Goals: The First Step to Success
The first step in the OKR framework is defining clear and inspiring objectives. In an SAP S/4HANA project, an objective might be: “Successfully migrate and optimize our business processes on SAP S/4HANA by Q4 2024.” This goal is ambitious, time-bound, and provides a clear direction for the project team.
Creating OKRs
Key Results: Measurability is Vital
Every objective should be paired with measurable key results that indicate how close the team is to achieving the goal. For the objective mentioned above, the key results could look like this:
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Reduce process lead times by 30% by the end of the project.
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Increase user satisfaction with the new system by 25% within six months post-go-live.
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Complete data migration with zero business disruption.
These key results are specific, measurable, and time-bound, making them powerful tools for project management.
Linking OKRs
OKRs should be interconnected across different levels of an organization. This is called horizontal and vertical alignment. For example, an SAP S/4HANA project might contribute to achieving broader company-wide key results, or an individual team member’s objective might align with the project's OKR. By linking OKRs in this way, companies can establish a transparent goal-setting system across the organization.
OKRs in Practice: A Continuous Cycle
OKRs are not just important at the beginning of a project. They guide the team throughout the entire project cycle. Typically, OKRs are reviewed and adjusted on a regular basis – often quarterly. This process encourages a culture of reflection and continuous improvement. Teams learn from what worked well and adjust their strategy to better address challenges.
The Human Factor: OKRs as a Motivational Tool
Beyond providing structural support, OKRs also offer a significant motivational boost. By clearly defining goals and measurable outcomes, team members feel more connected to the project’s success. They can see exactly how their work contributes to the overall goals, which boosts motivation and engagement.
Conclusion: OKRs as a Roadmap to Success
Implementing OKRs in SAP S/4HANA transformation projects offers a structured and effective way to manage not only the technical aspects but also organizational change. By clearly defining goals and measurable outcomes, teams can be better aligned, motivated, and driven to achieve success. In the complex world of IT transformations, OKRs are more than just a tool – they are a roadmap to success. Let’s embark on this journey together and unlock the full potential of an SAP S/4HANA transformation.
Are you interested in using OKRs in your company and projects? Contact us. Our experts can guide you through the process of introducing OKRs.
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