How we made the journey from flow in our complex products to flow thinking for our processes. Ericsson is number 1 in mobile infrastructure thanks to our ability to innovate around state-of-the art algorithms for optimizing packet data flow. We made a mental leap when we realized that all this is also applicable for flow through our processes. We will share our experiences: (1) create buy-in and commitment for flow thinking using this mental model/metaphor (2) practical examples of how we improved our product development flow.

1. Flow ThinkinG
The
Mental
LeapS
@hakanforss
@erik_schon
#LKCE13

2. Flow Thinking:
The Mental Leaps
Methods &
Tools
Principles &
Mindset
Resource
Efficiency
Flow
Efficiency
Scattered
Experiences
@hakanforss @erik_schon | #LKCE13 | Page 2 (26)
Continuous
Innovation

3. Flow Sensei / Plumber
Håkan Forss
Lean/Agile Coach
@hakanforss
@hakanforss @erik_schon | #LKCE13 | Page 3 (26)

4. Proud member
of the FlowFans
ERIK SCHÖN
@erik_schon
Co-creator of conditions
where people, teams
and organizations
grow
@hakanforss @erik_schon | #LKCE13 | Page 4 (26)

5. Ericsson 3G:
Facts & Figures
>40%
Of all 3G traffic
in Ericsson networks
1 800
people
~100
#1
Mobile 3G
networks
10
Teams
R&D sites
we lead the mobile broadband industry
towards a networked lifestyle for everyone
@hakanforss @erik_schon | #LKCE13 | Page 5 (26)

6. 3G Network Overview
Internet
Radio
Network
Controller
Telephone
networks
Radio
Base
Station
Complex Network, Complex product
@hakanforss @erik_schon | #LKCE13 | Page 6 (26)

7. Flow Thinking:
The Mental Leaps
Methods &
Tools
Principles &
Mindset
Resource
Efficiency
Flow
Efficiency
Scattered
Experiences
Continuous
Innovation
@hakanforss @erik_schon | #LKCE13 | Page 7 (26)

8. Scrum
“Kanban”
Flow
Initial focus on
needs and direction
Visualization
Inspiration from
Thought Leaders
Culture of thinking
for ourselves
Continuous
Integration
@hakanforss @erik_schon | #LKCE13 | Page 8 (26)
Continuous
Learning

9. Principles & Mindset:
Point to the destination
@hakanforss @erik_schon | #LKCE13 | Page 9 (26)

10. Increase efficiency
to enable more output
Reduce lead-time
to be more Responsive
Build quality into
our way of working
EMpower people
@hakanforss @erik_schon | #LKCE13 | Page 10 (26)

11. Principles & Mindset:
Small batches
@hakanforss @erik_schon | #LKCE13 | Page 11 (26)

12. Improvements are
Small experiments
@hakanforss @erik_schon | #LKCE13 | Page 12 (26)

13. Flow Thinking:
The Mental Leaps
Methods &
Tools
Principles &
Mindset
Resource
Efficiency
Flow
Efficiency
Scattered
Experiences
Continuous
Innovation
@hakanforss @erik_schon | #LKCE13 | Page 13 (26)

14. What can I
start next?
@hakanforss @erik_schon | #LKCE13 | Page 14 (26)
As long as
I’m busy …

15. Prioritize flow efficiency
Prioritize continuous learning
Low
Resource Efficiency
High
What is Lean?
an operations strategy!
Niklas Modig
Stockholm School of Economics
@LeanOnMyself
Low
High
Flow Efficiency
@hakanforss @erik_schon | #LKCE13 | Page 15 (26)

16. Flow efficiency:
Visualize end-to-end
@hakanforss @erik_schon | #LKCE13 | Page 16 (26)

17. End-to-end Flow:
Snapshot Visualization
Queues
53
Pre-prestudy
18
20
prestudy
44 [57]
30 [55]
Development
57 [57]
Launch
9 [N/A]
WIP [limit]
Removed
0
4
0
Throughput
7 features per sprint
@hakanforss @erik_schon | #LKCE13 | Page 17 (26)

18. End-to-End FLOW:
trend Visualization
WMR features cumulative flow diagram
Number of work items
300
Cumulative number of features
G0 to G2
250
Reduced WIP
200
WIP: -25%
Starting WIP
150
100
50
G0
2/3
G1
G2
Lead-time , autumn: -17%
prestudy
Development
Launch
Lead-time, spring
Pre-prestudy
Time
0
Spring
2013
Week
@hakanforss @erik_schon | #LKCE13 | Page 18 (26)
Autumn
2013

19. End-to-enD
Visualization Room
@hakanforss @erik_schon | #LKCE13 | Page 19 (26)

20. Flow efficiency:
In product & Process
@hakanforss @erik_schon | #LKCE13 | Page 20 (26)

21. Flow
and
queues
in TraffiC …
@hakanforss @erik_schon | #LKCE13 | Page 21 (26)
Source: Irene Karpiczenko-Wasem, http://www.flickr.com/photos/jungle-jill/1160447677/

22. “Ericsson: you already know this,
you use it in your products
every day!”
Don Reinertsen
@DReinertsen
@hakanforss @erik_schon | #LKCE13 | Page 22 (26)

23. Configuring High
Capacity in our product
Arrival
Radio
Admission
Network
Control
Controller
Departure
Radio
Congestion
Base
Control
Station
Controlling arrival and departure ensures high capacity
in both product and product development
@hakanforss @erik_schon | #LKCE13 | Page 23 (26)

24. Flow Thinking:
The Mental Leaps
Methods &
Tools
Principles &
Mindset
Resource
Efficiency
Flow
Efficiency
Scattered
Experiences
Continuous
Innovation
@hakanforss @erik_schon | #LKCE13 | Page 24 (26)

25. Inspiration from the
#1 Sports Car Company
The best Ferrari car
we have every produced
is the next one.
Enzo Ferrari
Founder & CEO, 1898-1988
@hakanforss @erik_schon | #LKCE13 | Page 25 (26)
Source: Peter Blackert, http://www.flickr.com/search/?w=29987108@N02&q=ferrari%20458%20italia%202010

26. Expectation:
Plan for innovation
100% capability
Capability
Capability at 70%
planned utilization
Innovation = value from ideas in product & product development
Time
Planning with less than full utilization
creates environment for Innovation
@hakanforss @erik_schon | #LKCE13 | Page 26 (26)

27. Continuous improvements
towards the vision
SMALL Experiments
TOWARDS NEXT TARGET CONDITION
@hakanforss @erik_schon | #LKCE13 | Page 27 (26)

28. Flow Thinking:
The Mental Leaps
Methods &
Tools
Resource
Efficiency
Scattered
Experiences
@hakanforss @erik_schon | #LKCE13 | Page 28 (26)
Principles &
Mindset
Flow
Efficiency
Continuous
Innovation

29. Q&A
@hakanforss @erik_schon | #LKCE13 | Page 29 (26)