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Ways of Working in the #NetworkedSociety - The Mental Leaps @ Ericsson

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In this session, I share how Ericsson made three very important mental leaps in our cultural transformation towards more, faster, better & happier using radically improved ways of working - including concrete examples of what we have done at Ericsson in a product development unit of 1800+ people on 10 locations in Europe and Asia.

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 to reduce both costs and time-to-market we were looking for alternatives to “resource efficiency” focus, i.e. keeping people and equipment fully utilized all the time. 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 thereby 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, a common purpose around the need to improve and learning how to scale our innovation efforts, we made the leap from scattered experiences to a culture of continuous innovation.

Ericsson is a world leader in communications technology and services with headquarters in Stockholm, Sweden. Our organization consists of more than 111,000 experts who provide customers in 180 countries with innovative solutions and services. Together we are building a more connected future where anyone and any industry is empowered to reach their full potential. Net sales in 2016 were SEK 222.6 billion (USD 24.5 billion).

Published in: Leadership & Management

Ways of Working in the #NetworkedSociety - The Mental Leaps @ Ericsson

  1. 1. The Mental Leaps @ Ericsson @erik_schon DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation. March 2, 2017 @ Paris Ways of Working in the #NetworkedSociety
  2. 2. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 2 The Mental Leaps at Ericsson 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 | @iroundtable | March 2, 2017 | Page 3 ERIK SCHÖN @erik_schon Co-creator of conditions where people, teams and organizations grow @ericsson SERVING ~300 people in Product Development Group Radio Base Stations Business Unit Network Products 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 | @iroundtable | March 2, 2017 | Page 4 Ericsson 3G: Facts & Figures >40% Of all mobile 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 networks ~100Teams 1B€ software sales
  5. 5. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 5
  6. 6. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 6
  7. 7. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 7
  8. 8. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 8 The Mental Leaps at Ericsson 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.
  9. 9. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 9 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.
  10. 10. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 10 Principles & Mindset: Point to the destination DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  11. 11. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 11 75% fully ENGAGED 2x FASTER time-to-market to be more responsive 4x MORE value to exceed customers’ expectations 10x BETTER quality to secure trust
  12. 12. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 12 Principles & Mindset: From large batches … DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  13. 13. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 13 Principles & Mindset: … to Small batches DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  14. 14. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 14 Try: Improvements as Small experiments DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  15. 15. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 15 Principles & Mindset: From local Sub-optimization … DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  16. 16. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 16 Principles & Mindset: … to global awareness DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  17. 17. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 17 Try: End-to-enD Visualization room Requirement Area Swimlane Process Step Column Feature Blocked Feature Meeting Checklist Priority Order See the status of 100+ new features at a glance
  18. 18. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 18 Source: Ahmed Sidky & the Learning Consortium Principles & Mindset over practices
  19. 19. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 19 The Mental Leaps at Ericsson 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.
  20. 20. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 20 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.
  21. 21. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 21 Flow Efficiency Resource Efficiency Low High Low High 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.
  22. 22. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 22 Flow Efficiency Resource Efficiency Low High Low High Inspiration: What is Lean? DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  23. 23. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 23 Flow Efficiency Resource Efficiency Low High Low High Prioritize continuous learning Prioritize flow efficiency Inspiration: What is Lean? DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  24. 24. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 24 Flow efficiency: In product & Process DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  25. 25. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 25 Flow and queues in traffic … DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
  26. 26. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 26 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:
  27. 27. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 27 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.
  28. 28. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 28 Try: Use different Leverage points to improve Reference: Donella Meadows: Leverage Points - Places to Intervene in a System Measurements Paradigm Mindset PrinciplesPurpose MissionStructures Processes
  29. 29. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 29 The Mental Leaps at Ericsson 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.
  30. 30. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 30
  31. 31. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 31
  32. 32. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 32 Try: Plan for innovation Time Capability 100% capability Planning with less than full utilization creates environment for innovation Capability at 70% planned utilization
  33. 33. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 33 Try: Continuous Innovation towards the vision Small experiments towards next CHALLENGE
  34. 34. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 34 TRY: !nnovation Operating System (!OS) BEHAVIORS CAPABILITIES PROCESSESSTRUCTURES VALUE FROM IDEAS Products, Services, Ways of Working, Business Models, … MAKE ROOM! for innovation incl creation – time & budget ELASTIC! from anywhere in the organization ON THE AGENDA! in mgmt foras and meetings THINK! holistic: product, market, competitors, process, … DEFINE! crystal clear line of sight to customers’ needs TEST! iterative learning loops with customers ADJUST! turn unexpected results into new experiments TEAM! cross-skilled and diverse, empowered by trust, small & focused < 15p INDIVIDUAL! knowledge & experiences: Technology: possibilities & limitations Relations: how to work with customers Creativity: brainstorming techniques LEARN! ask questions, understand customer needs DARE! try new things, listen & act on new ideas CARE! mgmt attention & expectations SELL! quantify benefits Reference: Human System Action Tool – Ericsson AB/Hendrik Esser: Presentation Video
  35. 35. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 35 The Mental Leaps at Ericsson 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.
  36. 36. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 36 What will your next Mental Leap be?
  37. 37. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 37 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
  38. 38. @erik_schon | @ericsson | @iroundtable | March 2, 2017 | Page 38 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 The Learning Consortium DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.

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