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.

1. The Mental Leaps
at Ericsson 3G
@erik_schon
#XP2015DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.
May 26, 2015
Ways of Working
in the
#NetworkedSociety

2. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | 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.

3. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 3
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 4
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
1,5B€ software
sales

5. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 5
3G Network Overview
Radio
Network
Controller
Radio
Base
Station
Internet
Telephone
networks
Complex Network, Complicated Product

6. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 6

7. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 7

8. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 8

9. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 9
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 10
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 11
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 12
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 13
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 14
EMpower people
Reduce lead-time
to be more Responsive
Increase efficiency
to enable more output
Build quality into
our way of working

15. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 15
Principles & Mindset:
From large batches …
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16. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 16
Principles & Mindset:
… to Small batches
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17. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 17
Try: Improvements as
Small experiments
DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.

18. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 18
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 19
Principles & Mindset:
From local “Kanban” …
DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.

20. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 20
Principles & Mindset:
… to global awareness
DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.

21. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 21
How can You
See the FLOW in
Your ways of
working?
2 minutes discussion in pairs

22. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 22
Try: End-to-end
Visualization room

23. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 23
Try: End-to-enD
Visualization room
Requirement
Area
Swimlane
Process
Step
Column Feature
Blocked
Feature
Meeting
Checklist
Priority
Order

24. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 24
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 25
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 26
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 27
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 28
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 29
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 30
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 31
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 32
Flow efficiency:
In product & Process
DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.

33. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 33
Flow and queues in
traffic …
DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.

34. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 34
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 35
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 36
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 37
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 38
How can You
Secure time for
Innovation?
2 minutes discussion in pairs

39. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 39
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 40
Try: Continuous Innovation
towards the vision
Small experiments
towards next CHALLENGE

41. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 41
Try: Learning Days
Full day, multi-site, multi-track, internal conference
with own content & external speakers - every sprint

42. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 42
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 43
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. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 44
What will
your next
Mental Leap be?

45. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 45
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

47. @erik_schon | @ericsson | #XP2015 | May 26, 2015 | Page 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