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The Mental Leaps at Ericsson 3G - Ways of Working in the Networked Society

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In this session, I share how we made three very important mental leaps to make the transition to Agile and Lean ”stick” including concrete examples of what we have done at Ericsson 3G.

Leap #1: From Methods & Tools to Principles & Mindset
Tools and methods can work in some contexts and not in others. If you have your own principles and mindset, then you can adapt or create your own methods and tools that fit your context. When realizing this, we made a mental leap from a focus on methods and tools to a focus on principles and mindset.

Leap #2: From Resource Efficiency to Flow Efficiency
With a need reduce both costs and time-to-market we were looking for alternatives to “resource efficiency” focus (keeping people and equipment fully utilized at all times). We realized that our ability to innovate around state-of-the art algorithms for optimizing packet data flow in mobile radio networks is also applicable for our product development processes. We made a mental leap from “resource efficiency” to “flow efficiency”, i e a focus on keeping work items moving through the process without waiting times, delivering value as quickly as possible

Leap #3: From Scattered Experiences to Continuous Innovation
We were solving problems as they occurred using task forces in fire-fighting mode, lacking corporate memory and a common direction. By creating a shared direction and a common purpose around the need to improve, we made the leap from scattered experiences to a culture of continuous innovation.

Ericsson is the driving force behind the Networked Society - a world leader in communications technology and services. Our long-term relationships with every major telecom operator in the world allow people, business and society to fulfill their potential and create a more sustainable future. With approximately 115,000 professionals and customers in 180 countries, we combine global scale with technology and services leadership. We support networks that connect more than 2.5 billion subscribers. Forty percent of the world's mobile traffic is carried over Ericsson networks. Net sales in 2014 were EUR 23.4 billion.

Published in: Leadership & Management

The Mental Leaps at Ericsson 3G - Ways of Working in the Networked Society

  1. 1. The Mental Leaps at Ericsson 3G @erik_schon DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation. Lyon, April 16, 2015
  2. 2. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 2 (47) 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.
  3. 3. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 3 (47) ERIK SCHÖN @erik_schon Co-creator of conditions where people, teams and organizations grow @ericsson SERVING Product Development Group Radio Base Stations Product Development Unit 2G, 3G & Multi-Standard Development Unit Radio Business Unit Radio Ericsson in Stockholm, Sweden Proud member of the FlowFans DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  4. 4. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 4 (47) Ericsson 3G: Facts & Figures >40% Of all 3G traffic in Ericsson networks 10R&D sites 1 800 people Ericsson’s Vision: A Networked Society where every person and every industry is empowered to reach their full potential #1 Mobile 3G networks ~100Teams 1,5B€ software sales
  5. 5. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 5 (47) 3G Network Overview Radio Network Controller Radio Base Station Internet Telephone networks Complex Network, Complicated Product
  6. 6. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 6 (47)
  7. 7. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 7 (47)
  8. 8. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 8 (47)
  9. 9. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 9 (47) 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
  10. 10. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 10 (47) 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.
  11. 11. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 11 (47) 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
  12. 12. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 12 (47) Flow Visualization Continuous Learning Initial focus on needs and direction Inspiration from Thought Leaders Culture of thinking for ourselves Continuous Integration “Kanban” Scrum DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  13. 13. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 13 (47) Principles & Mindset: Point to the destination DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  14. 14. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 14 (47) EMpower people Reduce lead-time to be more Responsive Increase efficiency to enable more output Build quality into our way of working
  15. 15. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 15 (47) Principles & Mindset: From large batches … DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  16. 16. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 16 (47) Principles & Mindset: … to Small batches DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  17. 17. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 17 (47) Try: Improvements as Small experiments DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  18. 18. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 18 (47) 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!
  19. 19. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 19 (47) Principles & Mindset: From local “Kanban” … DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  20. 20. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 20 (47) Principles & Mindset: … to global awareness DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  21. 21. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 21 (47) How can You See the FLOW in Your ways of working? 2 minutes discussion in pairs
  22. 22. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 22 (47) Try: End-to-end Visualization room
  23. 23. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 23 (47) Try: End-to-enD Visualization room Requirement Area Swimlane Process Step Column Feature Blocked Feature Meeting Checklist Priority Order
  24. 24. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 24 (47) 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.
  25. 25. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 25 (47) As long as I’m busy … What can I start next? DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  26. 26. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 26 (47) 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? DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  27. 27. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 27 (47) 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? DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  28. 28. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 28 (47) 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? DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  29. 29. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 29 (47) Flow efficiency: Visualize end-to-end DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  30. 30. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 30 (47) 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
  31. 31. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 31 (47) Try: End-to-End flow trend Visualization Pre- prestudy prestudy Development Launch Cumulative number of features Time Work in Process (WIP) Lead-Time Throughput
  32. 32. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 32 (47) Flow efficiency: In product & Process DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  33. 33. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 33 (47) Flow and queues in traffic … DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  34. 34. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 34 (47) Don Reinertsen @DReinertsen “Ericsson: you already know this, you use it in your products every day!” DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation. Inspiration:
  35. 35. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 35 (47) Try: Story-Telling around flow in product & Process Arrival Departure Radio Network Controller Radio Base Station Admission Control Congestion Control DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  36. 36. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 36 (47) 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
  37. 37. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 37 (47) 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.
  38. 38. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 38 (47) How can You Secure time for Innovation? 2 minutes discussion in pairs
  39. 39. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 39 (47) 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
  40. 40. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 40 (47) Try: Continuous Innovation towards the vision Small experiments towards next CHALLENGE
  41. 41. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 41 (47) Try: Learning Days Full day, multi-site, multi-track, internal conference with own content & external speakers - every sprint
  42. 42. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 42 (47) 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 DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  43. 43. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 43 (47) 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.
  44. 44. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 44 (47) What will your next Mental Leap be?
  45. 45. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 45 (47) Q&A DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation. Methods & Tools Resource Efficiency Scattered Experiences Principles & Mindset Flow Efficiency Continuous Innovation The Mental Leaps at Ericsson 3G
  46. 46. @erik_schon | @ericsson | #mixit15 | April 16, 2015 | Page 47 (47) 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 Håkan Forss Flow Sensei / Plumber

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