The Mental Leaps at Ericsson 3G

The Mental Leaps
at Ericsson 3G
@hakanforss
@erik_schon
#Agile2014DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.

@hakanforss @erik_schon | @ericsson | © Ericsson AB 2014 | July 29, 2014 | Page 2
The Mental Leaps
at Ericsson 3G
Methods &
Tools
Resource
Efficiency
Scattered
Experiences
Principles &
Mindset
Flow
Efficiency
Continuous
Innovation
DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.

Face-to-face
Online
Twitter: @hakanforss @erik_schon #Agile2014
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Session QR Code
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We welcome & Value
your feedback!

Flow Sensei / Plumber
Håkan Forss
Lean/Agile Coach
@hakanforss
@avegagroup

ERIK SCHÖN
@erik_schon
Co-creator of conditions
where people, teams
and organizations
grow @ericsson
Proud member
of the FlowFans

Ericsson 3G:
Facts & Figures
>40% Of all 3G traffic
in Ericsson networks
10R&D sites
1 800 people
Our Vision: A Networked Society where every person and
every industry is empowered to reach their full potential
#1 Mobile 3G
networks
~100Teams

3G Network Overview
Radio
Network
Controller
Radio
Base
Station
Internet
Telephone
networks
Complex Network, Complicated Product

How come
You might need
to Change Your
ways of working?
2 minutes discussion in pairs

Our heritage: Improving The
Waterfall for 30+ years …
2-3 year projects, 100 000-200 000 person hours
2010: Improvement potential questionable …
We must try something fundamentally different
System
Design
Test
System
Design
Test

The Mental Leaps
at Ericsson 3G
Methods &
Tools
Resource
Efficiency
Scattered
Experiences
Principles &
Mindset
Flow
Efficiency
Continuous
Innovation

Inspiration: our
Colleagues in finland …
XFT1
Release
Verification
Customers
Product
Management
Product
Owner
PPO
PPO
PPO
ScM
XFT2 ScM
XFT3 ScM
XFTn ScM
Main
software
branch
PPO Product Proxy Owner
XFT Cross-Functional Team
ScM Scrum Master
Product
Backlog
Continuous
Integration

Flow
Visualization
Continuous
Learning
Initial focus on
needs and direction
Inspiration from
Thought Leaders
Culture of thinking
for ourselves
Continuous
Integration
“Kanban”
Scrum

Principles & Mindset:
Point to the destination

EMpower people
Reduce lead-time
to be more Responsive
Increase efficiency
to enable more output
Build quality into
our way of working

From large batches …

… to Small batches

Try: Improvements as
Small experiments

Smaller slices → faster value delivered
Early feedback → direction change if needed
Try: elephant carpaccio
Original Feature
1 2
3 4
5 6
7 8
Split Feature Split Feature
1 2
5
6
Kudos to @totheralistair & @henrikkniberg

From local “Kanban” …

… to global awareness

How might You
See the FLOW in
Your ways of
working?

Try: End-to-end
Visualization room

Try: End-to-enD
Visualization room
Requirement
Area
Swimlane
Process
Step
Column Feature
Blocked
Feature
Meeting
Checklist
Priority
Order

Q&A
Methods &
Tools
Principles &
Mindset
Point to the destination
Small batches
Global awareness
5 minutes

The Mental Leaps
at Ericsson 3G
Methods &
Tools
Resource
Efficiency
Scattered
Experiences
Principles &
Mindset
Flow
Efficiency
Continuous
Innovation

As long as
I’m busy …
What can I
start next?

Flow Efficiency
Resource
Efficiency
Low High
Low
High
Prioritize continuous learning
Prioritize flow efficiency
Niklas Modig
Stockholm School of Economics
@LeanOnMyself
Inspiration: What is Lean?

Flow Efficiency
Resource
Efficiency
Low High
Low
High
Niklas Modig
@LeanOnMyself

Flow efficiency:
Visualize end-to-end

Try: End-to-enD Flow
Visualization Room
10 meetings per week, 10-15 people per meeting - using video conference
Area Product Owner, Operative Product Owners, Line Managers, Program Managers

Try: End-to-End flow
trend Visualization
Pre-
prestudy
prestudy Development Launch
Cumulative number of features
Time
Work in
Process
(WIP)
Lead-Time
Throughput

Faulty
licences
5%
Software
package
problems
22%
Network
template new
network
17%Installation
people missing
17%
Lab IT support
missing
11%
Network
design
bottleneck
28%
Try: Love your Blockers
Take action based on patterns

Flow efficiency:
In product & Process

Work in Process (WIP)
Throughput
Lead Time =
Flow Efficiency:
Little’s law
DISCLAIMER: LEGO is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.

Flow and queues in
traffic …

Don Reinertsen
@DReinertsen
“Ericsson: you already know this,
you use it in your products
every day!”
Inspiration:

Try: Story-Telling around
flow in product & Process
Arrival Departure
Radio
Network
Controller
Radio
Base
Station
Admission
Control
Congestion
Control

Try: Active Flow Handling
Experiment: Limiting number of parallel activities
Result: Reduced lead-time by 40%
Initial lead-time
10 weeks
In execution initially
42 items
In execution
20 items
New
Backlog
Execution
Done
Lead-time
6 weeks
Cumulative number of items
Time

Q&A
End-to-end visualization
Story-telling around flow
Active flow handling
Resource
Efficiency
Flow
Efficiency
5 minutes

The Mental Leaps
at Ericsson 3G
Methods &
Tools
Resource
Efficiency
Scattered
Experiences
Principles &
Mindset
Flow
Efficiency
Continuous
Innovation

Avoid: complex yearly
Scorecards …
PA/DURA
joint targets
DURA targets
PARA targets
Increased focus on
competence mgmtImproved Forecast
Precision wtihin DU Radio
Customer Perception of
Quality in WCDMA RAN
Technology
leadership
RBS 6000 Multi Standard
config. GA on time
LTE RAN on time with
Quality
CoS Reduction
Raised Product
Quality
Increase DURA I&V
efficiency
Portfolio efficiency:
Converged RBS
Architecture
Creative
environment
Net Sales/
Operating income
BNET SC Established Network
Transformation
Customer
Responsiveness
Increased Sales of PAIB
Portfolio
Improved Portfolio
Efficiency
Secured Profit
Improvement
BNET/BUGS
cooperations
Strengthened resouce and
competenece mgmt
GF/Other BU High quality deployment
of new releases
Total Cost of Ownership
Orders Booked Product contribution Market leadership Introduction of new price model Reinvent the network
O&M leadership Customer responsiveness Str. Resource and competence mgmt FCI higher than /// average
Key new products
ready for the
market
People and organization
readiness
Targets on DURA PDU
Demonstrated Technology leadership

Try: one Crisp
quarterly challenge

How might You
Secure time for
Innovation?

Try: Plan for innovation
Time
Capability 100% capability
Planning with less than full utilization
creates environment for innovation
Capability at 70%
planned utilization
Innovation = value from ideas in product and product development

Try: Continuous Innovation
towards the vision
Small experiments
towards next challenge

Try: Learning Day
Full day, multi-site, multi-track, internal conference
with own content - every sprint

Inspiration: the #1
Sports Car Company
Source: Peter Blackert, http://www.flickr.com/search/?w=29987108@N02&q=ferrari%20458%20italia%202010
The best Ferrari car
we have every produced
is the next one.
Enzo Ferrari
Founder & CEO, 1898-1988

The Mental Leaps
at Ericsson 3G
Methods &
Tools
Resource
Efficiency
Scattered
Experiences
Principles &
Mindset
Flow
Efficiency
Continuous
Innovation

What might be
your next
Mental Leap?

Q&A
Methods &
Tools
Resource
Efficiency
Scattered
Experiences
Principles &
Mindset
Flow
Efficiency
Continuous
Innovation
The Mental Leaps at Ericsson 3G

Face-to-face
Online
Twitter: @hakanforss @erik_schon #Agile2014
Agile 2014 Mobile App
Session QR Code
Session URL
We welcome & Value
your feedback!
The best presentation we’ve ever made
is always the next one 

Inspiration
Craig Larman & Bas Vodde (2008)
Scaling Lean & Agile Development
Niklas Modig & Per Åhlström (2012)
This is Lean
Donald G. Reinertsen (2009)
The Principles of Product Development Flow

The Mental Leaps at Ericsson 3G

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