Reevaluating Annual Reviews: The Importance of Immediate Feedback

BONUS: Martti Kuldma shares how to transform century-old organizations through product-driven agile transformation

In this BONUS episode we explore the remarkable transformation journey at Omniva with CEO Martti Kuldma. From traditional postal services to innovative logistics solutions, we explore how a 100+ year old company embraced product thinking, DevOps practices, and agile transformation to become a competitive force in modern logistics.

Omniva's Digital Evolution—IT as a Revenue Center

"We innovated the parcel machine business for a few years, and software has been an area of investment for us - software as a separate vertical in our business."

Omniva represents a fascinating case study in organizational transformation. While many know it as Estonia's post office, the company has evolved into an international logistics powerhouse with significant revenue streams beyond traditional postal services. Under Martti's leadership, the organization has reimagined software not as a support function but as a core revenue driver, positioning itself for the dramatic shifts expected in logistics delivery over the next five years.

The Vision: Physical Mailing as the Next IP Network

"The Vision: physical mailing as the next IP network - this will give us a lot more freedom to adapt to changes in delivery demand."

Martti's strategic vision extends far beyond conventional logistics thinking. By conceptualizing physical delivery networks similar to internet protocols, Omniva is preparing for a future where logistics companies leverage their physical infrastructure advantages. This approach addresses the fundamental challenge of fluctuating demand in e-commerce and traditional logistics, creating opportunities for crowd delivery solutions and gig economy integration that capitalize on existing network effects.

Breaking Down Waterfall Barriers

"When I came we had waterfall processes - annual budgeting, procurement for software development. It took a couple of weeks to do the first rounds, and understand what could be improved."

The transformation from traditional procurement-based software development to agile product teams required dismantling entrenched processes. Martti discovered that the contractor model, while seemingly cost-effective, created expensive knowledge transfer cycles and left the organization vulnerable when external teams departed. His engineering background enabled him to recruit talent and build sustainable development capabilities that keep critical knowledge within the organization.

Creating Cross-Functional Product Teams

"We started to create cross-functional product area teams. We are not going to tell you what you need to build. You are accountable for the logistics efficiency."

The shift from eleven distinct roles in software development to autonomous product teams represents more than organizational restructuring. By empowering teams with accountability for business outcomes rather than just deliverables, Omniva transformed how work gets planned and executed. This approach eliminates traditional handoffs and role silos, creating teams that own both the problem and the solution.

The Product Manager Evolution

"For me, the PM is directly accountable for the business results. The final step of the transformation started when I took the CEO role."

Martti identifies a critical challenge in agile transformations: the misunderstanding of Product Manager responsibilities. Rather than falling into delivery or project management patterns, effective PMs at Omniva own business results directly. This shift required company-wide transformation because technical changes alone cannot sustain organizational evolution without corresponding changes in mindset and accountability structures.

Leadership Through Storytelling

"My main tool is just talking. All I do is story-telling internally and externally. I needed to become the best salesman in the company."

The transition from technical leadership to CEO revealed that transformation leadership requires different skills than technical management. Martti discovered that his primary value comes through narrative construction and communication rather than direct technical contribution. This realization highlights how senior leaders must evolve their impact methods as organizations scale and transform.

Real-Time Feedback Philosophy

"The feedback needs to be given immediately. 'Last year, in May your performance was not the best' - this is completely useless feedback."

Martti's rejection of annual reviews stems from practical experience with feedback effectiveness. Immediate, personal feedback creates learning opportunities and course corrections that annual cycles cannot provide. Anonymous 360 feedback systems often dilute accountability and actionability, whereas direct, timely conversations enable meaningful professional development and relationship building.

Essential Transformation Practices

"You need to tell the story - and convince people that this transformation is essential and needed. You need to trust and let them make their own decisions."

Drawing from experiences at both Pipedrive and Omniva, Martti identifies three critical elements for leading complex organizational change:

• Compelling narrative: People need to understand why transformation is necessary and how it benefits both the organization and their individual growth

• Distributed decision-making: Trust enables teams to solve problems creatively rather than waiting for hierarchical approval

• Business accountability for engineers: When technical teams understand and own business outcomes, they innovate more effectively toward meaningful goals

The dynamic team formation model used at Pipedrive, where engineers and PMs pitched ideas and assembled mission-focused teams, demonstrates how organizational structure can enable rather than constrain innovation.

About Martti Kuldma

Martti Kuldma is CEO of Omniva, leading its transformation into a product-driven logistics company. A former engineering leader at Pipedrive and CTO at Omniva, he brings deep expertise in scaling teams, agile transformation, and digital innovation. Martti is also a startup founder and passionate advocate for high-impact product organizations.

You can link with Martti Kuldma on LinkedIn.