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Ways of Working in the #NetworkedSociety - Strategy Experiments @ericsson 3G

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In this session, we’ll try to demystify strategy by sharing a few experiments on how we have worked on (1) creating strategy, and, (2) making strategy happen - in a Lean/Agile/Flow context. Our starting point has been analogies from complex, competitive domains such as war and sports and inspiration from key strategy practitioners.
Here's a video recording: https://vimeo.com/146078766

Published in: Leadership & Management

Ways of Working in the #NetworkedSociety - Strategy Experiments @ericsson 3G

  1. 1. @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 | Page 1 Strategy Experiments @Ericsson 3G @erik_schon Lean Kanban Central Europe, November 16, 2015, #LKCE15 Ways of Working in the #NetworkedSociety:
  2. 2. @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 | Page 2 Our Strategy journey 2010-2015 Strategy specialist Strategy feedback loop takes years Execution specialists Starting point Continuous execution, feedback & fine tuning Team @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015
  3. 3. Erik Schön @erik_schon Co-creator of conditions where people, teams and organizations grow @ericsson SERVING ~200 people in cross-functional teams in Product Development Group Radio Base Stations Product Development Unit 2G, 3G & Multi-Standard Development Unit Radio Business Unit Radio Ericsson in Stockholm, Sweden @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015
  4. 4. @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 | Page 4 Ericsson 3G: Facts & Figures >40% Of all 3G traffic in Ericsson networks 10 R&D sites 1 800 people #1 Mobile 3G networks 100 Teams 265networks Our Vision: a #NetworkedSociety where every person and every industry is empowered to reach their full potential @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015
  5. 5. Why Strategy?
  6. 6. @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 | Page 6 Why Strategy? @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 Company: handle limitations - time, equipment, competence, people … Employees: know & influence direction in order to act & decide with speed Customers: customer delight, serving the customers’ real needs Market: success in volatile, uncertain, complex, ambiguous environment Competitors: sustainable competitive advantage for Ericsson
  7. 7. What is Strategy? Discuss in pairs for 2 minutes!
  8. 8. @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 | Page 8 “Strategy is a mental tapestry of changing intentions for harmonizing and focusing our efforts as a basis for realizing some aim or purpose in an unfolding and often unforeseen world of many bewildering events and many contending interests.“ John Boyd
  9. 9. How do you do Strategy?
  10. 10. @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 | Page 10 ”In real life, strategy is actually very straightforward. You pick a general direction and you implement like hell.” Jack Welsh
  11. 11. @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 | Page 11 “… by what method?” W. Edwards Deming
  12. 12. @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 | Page 12 “The strategy is top secret, you just do what I tell you.”
  13. 13. Experiment 2010: Structured process KEY LEARNINGS: Process helpful; too much focus on implementation; forgot people, culture & experiments Learn: situation analysis Focus: strategic vision & choices Align: people, culture, structure & process, measures & rewards Execute: implement & experiment @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015
  14. 14. @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 | Page 14 Experiment 2010: Wanted Position 2015 Empower people Reduce lead-time to be more responsive Increase efficiency to enable more output Build quality into our ways of working x4 1/2 x10 75% KEY LEARNINGS: Stable, balanced wanted position gives focus & clarity; easy to show progress by quantified wanted position @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015
  15. 15. @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 | Page 15 Insight 2011: Alignment + autonomy→results Intent What & Why Actions HowAutonomy Alignment Thoughtful, purposive action in the right direction by all people in the organization to reach the desired results KEY LEARNING: Strong alignment around intent enables maximum autonomy to take action on all levels @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015
  16. 16. Insight 2011: Long lead-time insights→actions Strategy Update Preliminary Balanced Scorecard Final Balanced Scorecard March-May New Key Performance Indicators (KPIs) every year September Q3/Q4 Targets still valid? Focus on reporting & corrective actions KEY LEARNINGS: Rapidly changing world means quickly outdated targets January @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015
  17. 17. Experiment 2012: regular Strategy retrospectives KEY LEARNINGS: Positive reinforcement of wanted position; strategy evolves & focus area changes Continuous Improvements Long-Term Key Performance Indicators (KPIs) Continuous Improvements Execution Focus Area Focus Area Strategy Retrospective Strategy Retrospective Business situation @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015
  18. 18. Experiment 2012: bottom-up Quarterly focus area Radically improve the test flow - how can I and my team contribute? KEY LEARNINGS: High engagement; 144 experiments; hard for teams to know what to do and when “done” @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015
  19. 19. Experiment 2013: Involving “top-down” challenge Every sprint delivered to a live network KEY LEARNINGS: More clear expectations - helped by indicators, still not enough movement towards challenge @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015
  20. 20. experiment 2014: Enabling structure for challenge KEY LEARNINGS: Alignment for autonomy needs enabling structure for larger improvements in large organization CHALLENGE @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015
  21. 21. @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 | Page 21 Experiment 2013: Outside in process, make choices Winning proposition Where to play How to win Key capabilities Enabling structures KEY LEARNINGS: Useful metaphor on all levels - from business to individuals via programs and teams @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015
  22. 22. @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 | Page 22 @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015
  23. 23. @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 | Page 23 What We have achieved 2010-2015 X4 1/2 X10 75% Employee motivation: 67% → 72% Faults at customers: 250 → 40 per month Feature lead-time: 100 → 36 weeks Value throughput: ~4 @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015
  24. 24. @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 | Page 24 Q&A
  25. 25. Inspiration @FuentesDeOnoro @RogerLMartin @flowchainsensei @plantin66 @erik_schon @ericsson | #LKCE15 | © Ericsson AB 2015 | November 16, 2015 @hakanforss

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