Slide subtitle

How do we getSpeed, Innovation & Engagement?

A Leadership Journey

Lean Forum Visit to EricssonOctober 20, 2016@erik_schon

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 2 (26)

PLANSACTIONS

RESULTS

Why can’t weplan better?

Why wasn’t the plan followed?

Why didn’tthe plan work?

Questions

Stephen Bungay: “The Art of Action” (2010)

@cyetain

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 3 (26)

Erik Schön

@erik_schon

Co-creator of conditions where

people, teams and organizations

grow @ericsson

SERVING ~300 people in cross-functional teams

in Product Development Group Radio Base Stations

Product Development Unit 2G & 3G Radio Access

Development Unit Network Products

Business Unit Network Products

Ericsson in Stockholm, Sweden

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 4 (26)

Ericsson 3G: Facts & Figures

>40% Of all 3G trafficin Ericsson networks

10 R&D sites

1 800 people

#1 Mobile 3Gnetworks

100 Teams

265 networks

Ericsson’s Vision: a #NetworkedSociety where every person and

every industry is empowered to reach their full potential

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 5 (26)

PLANSACTIONS

RESULTS

Why can’t weplan better?

Why wasn’t the plan followed?

Why didn’tthe plan work?

Answer

VUCA

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 6 (26)

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 7 (26)

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 8 (26)

Volatile Uncertain

Complex Ambiguous

We Live in a VUCA world …How do We survive & Thrive?

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 9 (26)

PLANSACTIONS

RESULTS

Change theactions & decisions

So, What if You don’t get what you wanted?

Change the plans

VUCA

Create alignmenton wanted results

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 10 (26)

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 11 (26)

PLANSACTIONS

RESULTS

Createalignment on intent:WHAT & WHY

How do you get speed?

Give autonomy on HOW to act & decidewithin boundaries and in line with intent

Give autonomy to adjust HOW in line with intent

VUCA

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 12 (26)

PLANSACTIONS

RESULTS

Createalignment on intent:WHAT & WHY

We get Speed, innovation and engagement!

Give autonomy on HOW to act & decidewithin boundaries and in line with intent

Give autonomy to adjust HOW in line with intent

VUCA

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 13 (26)

› Autonomy, Mastery, Purpose

motivates us [Pink],

Autonomy = HOW,

Purpose = WHAT & WHY

› Making progress in meaningful

work ignites joy, engagement

and creativity [Amabile]

Meaningful work =

WHAT & WHY.

Faster progress thanks tohigher

speed

→ more joy & engagement!

› Motivation - nonsense. All that

people need to know is why

their work is important.

[Deming] =

WHAT & WHY

› When people truly understand

WHAT & WHY and are given

autonomy to figure out HOW,

they will surprise you with their

ingenuity in figuring out

solutions [Bungay]

= delivering value from ideas

= innovations.

› Making progress in meaningful

work ignites joy, engagement

and creativity. [Amabile]

Meaningful work =

WHAT & WHY.

Creativity → ideas →

value from ideas = Innovation

› Avoiding searching for more

information in order to make the

perfect plan, potentially ending

up in analysis paralysis, instead

focus more on the WHAT&

WHY

› Avoiding specifying too many

details in the plan, instead

giving people, teams or

organizations freedom within

boundaries and in line with

intent to figure out HOW

› Avoiding too tight control,

follow-up and reporting of

metrics

› Encouraging initiative: when

you know WHAT&WHY, you

can quickly figure out what to

do when the situation changes

without going up and down the

chain of command asking for

permission and directives

[Bungay]

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 14 (26)

High

Alignment

High Autonomy

Build a

bridge!

We need to

cross the

river

Figure out

how!

We need to cross

the river to reach

our destination

Low

Alignment

Low Autonomy

Hope someone is

working on the

river problem …

ALIGNED

AUTONOMY!

Stephen Bungay: “The Art of Action” (2010)

@henrikkniberg

Intent

What & Why

Actions

How

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 15 (26)

Give autonomy on HOW to act & decide within boundaries and in line with intent

Experiment: Improved Leadership

Give autonomy to adjust HOW in line with intent

VUCA

Interactive seminarson alignment for autonomy

Defining Agile/Lean line manager role: teaching, coaching, challengingBoundaries/Constraints: Ericsson Leadership Framework

Coaching training,coaching networks,Community of Practice for Managers

Create alignment on intent:WHAT & WHY

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 16 (26)

Experiment result:

PersonalGrowthAs a person,

I want to act in an environment,

so that I can reach my full potential

We TEACH, COACH and CHALLENGE

PersonalGrowthAs a person,

I want to act in an environment,

so that I can reach my full potential

We develop ORGANIZATIONS

PersonalGrowthAs a person,

I want to act in an environment,

so that I can reach my full potential

We develop TEAMS

We develop INDIVIDUALS

The Line Manager in Lean/Agile

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 17 (26)

Give autonomy on HOW to act & decide within boundaries and in line with intent

Experiment: Cross-functional teams

Give autonomy to adjust HOW in line with intent

VUCA

High-performing teamsto outlearn competition

Learning Days, Communities of Practices, Extreme Programming practices, …Boundaries/Constraints: Start with Scrum or Kanban, use GIT, 30% learning

Team retrospectivesevery sprint, …

Create alignment on intent:WHAT & WHY

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 18 (26)

FLEXIBILITY: Teams dare to go into

new areas, products and technologies

and get up to speed within 1-3 months!

Experiment resultFlexible, Confident and Innovative Teams

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 19 (26)

Give autonomy on HOW to act & decide within boundaries and in line with intent

Experiment: Strategy and Execution

Give autonomy to adjust HOW in line with intent

VUCA

Dialogue around strategy with everyonein interactive workshops

Quarterly ChallengeBoundaries/Constraints: Impact whole organization, based on strategy & needs

Quarterly strategy retrospectiveswith everyone

Create alignment on intent:WHAT & WHY

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 20 (26)

Every sprint deployed to live networks

with added customer value and higher quality

Experiment resultProduct Development Unit Quarterly Challenge

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 21 (26)

Overall results2010-2015

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

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 22 (26)

Give autonomy on HOW to act & decide within boundaries and in line with intent

How could you use thisin your daily work?

Create alignment on intent:WHAT & WHY

Give autonomy to adjust HOW in line with intent

Discuss in pairs for 2 minutes

VUCA

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 23 (26)

Spotify’s Engineering

Culture – Part 1L. David Marquet: "Greatness"

Reinertsen & Associates: Decentralizing Control -

How Aligned Initiative Overcomes Uncertainty

Chet Richards: Amazing. We did it all by ourselves! (And so can you.)

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 24 (26)

Too many organizations

are trying to control the waves

instead of learning how to surf.

Mary Poppendieck

paraphrasing Allen Ward

How Do We Get Speed, Innovation & Engagement - A Leadership Journey | @erik_schon | @ericsson | 2016-10-20 | Page 25 (26)

Q&A