These slides are from my workshop at the OOP 2017 conference in Munich. Abstract: Leaders are often talking about change. But often we do not get the change we wanted. Somehow we feel our culture is hitting back. A root cause is, that Complexity and Systems Thinking are hard to grasp and even harder to apply practically. In this workshop I will – based on my own experience being a senior transformational leader in a several 1000 people organization - introduce you to a Systems Thinking tool that can help you make your organizational evolution successful. Together we will try out the tool.

1. Hendrik Esser
@HendrikEsser
Program Director
Supporting Agile Adoption
using applied systems thinking
Workshop at OOP 2017, Munich
EN
Operations & Programs

2. Approaching Change

3. Complexity

4. Complexity?
A Complex System?

5. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
Cynefin framework
Dave Snowden, HBR Article, Nov 2007
Complexity:
- (Very) low Predictability
- Cause  effect only in hindsight
 Outcomes can’t be exactly
predicted: they emerge
Successful approach:
Experimentation:
probe-sense-respond
Approaching Complexity

6. System Change
Experiments?

7. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
› All societies have shared
rules/constraints.
› They are either set or
they emerge.
In a company we usually
set and manage
constraints
Constraints

8. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
Constraints?
People
Processes
Structures
Behavior
Capabilities
Interdependencies
asystemofconstraints

9. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
Human System Action Tool
ProcessesStructures
Behavior Capabilities
desired
state
or
problem
statement
Human System Action Tool – Ericsson AB/Hendrik Esser

10. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
Human System Action Tool
ProcessesStructures
Behavior Capabilities
desired
state
or
problem
statement
Behavior
Mindset/attitude
Values
Needs
Competence
Skills
# people
Diversity
Hidden talent
Processes
Practices
Tools
Habits
Organization
Governance
Compensation
Roles
(Informal) networks
Human System Action Tool – Ericsson AB/Hendrik Esser

11. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
Learning cycle
Look at the system
Analyze:
- Is your vision still valid?
- What supports your vision
- What doesn’t
Take change actions
Define a
change experiment
See what emerges

12. Deal professionally with uncertainty
Example

13. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
ProcessesStructures
Behavior Capabilities
Deal
professionally
with
uncertainty
Communicate
Make uncertainty
visible
Accept, that uncertainty is
always there
Share views and insights
Speak up when you see something
unexpected
React constructively
on surprises
Show and discuss uncertainty in
governance meetings
Frequent meetings to
digest updates/new insights
Distributed planning on
different levels
Iterative development
 feedback loop
Communication
structure
Manage expectations
 anticipate expec-
tations & address
them
Translate uncertainty into realistic
expectations (customers, internal
stakeholders)

14. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
Workshop

15. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
› Step 1: Form teams, pick a goal & prepare a flip-chart
› Step 2: Discuss and list behaviors, that help reaching the
goal.
› Step 3: Discuss and list capabilities, processes and
structures, that help the wanted behaviors emerge,
dampen the emergence of unwanted behaviors and reach
the goal.
› Step 4: From the eco-system you have sketched by now:
derive change actions you would like to take as your
change experiment.
Workshop

16. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
Working software is the primary measure of
progress.
Agile processes promote sustainable
development.
The sponsors, developers, and users should be
able
to maintain a constant pace indefinitely.
Continuous attention to technical excellence
and good design enhances agility.
Simplicity--the art of maximizing the amount
of work not done--is essential.
The best architectures, requirements, and
designs emerge from self-organizing teams.
At regular intervals, the team reflects on how
to become more effective, then tunes and
adjusts its behavior accordingly.
Our highest priority is to satisfy the customer
through early and continuous delivery
of valuable software.
Welcome changing requirements, even late in
development. Agile processes harness change for
the customer's competitive advantage.
Deliver working software frequently, from a
couple of weeks to a couple of months, with a
preference to the shorter timescale.
Business people and developers must work
together daily throughout the project.
Build projects around motivated individuals.
Give them the environment and support they need,
and trust them to get the job done.
The most efficient and effective method of
conveying information to and within a development
team is face-to-face conversation.
Principles behind the Agile
Manifesto

17. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
Working software is the primary measure of
progress.
Agile processes promote sustainable
development.
The sponsors, developers, and users should be
able
to maintain a constant pace indefinitely.
Continuous attention to technical excellence
and good design enhances agility.
Simplicity--the art of maximizing the amount
of work not done--is essential.
The best architectures, requirements, and
designs emerge from self-organizing teams.
At regular intervals, the team reflects on how
to become more effective, then tunes and
adjusts its behavior accordingly.
Our highest priority is to satisfy the customer
through early and continuous delivery
of valuable software.
Welcome changing requirements, even late in
development. Agile processes harness change for
the customer's competitive advantage.
Deliver working software frequently, from a
couple of weeks to a couple of months, with a
preference to the shorter timescale.
Business people and developers must work
together daily throughout the project.
Build projects around motivated individuals.
Give them the environment and support they need,
and trust them to get the job done.
The most efficient and effective method of
conveying information to and within a development
team is face-to-face conversation.
Principles behind the Agile
Manifesto
Example goal:
We handle
technical debt
professionally.Example goal:
Good collaboration between
business management and
product development
Example goal:
We continuously
improve.
Example goal:
We continuously
seek customer
feedback.
Example goal:
We trust and
empower our
people.
Example goal:
We minimize waste and
maximize customer value

18. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25

19. Deal professionally with uncertainty
Example

20. Intervention
1

21. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
ProcessesStructures
Behavior Capabilities
Deal
professionally
with
uncertainty
Communicate
Make uncertainty
visible
Accept, that uncertainty is
always there
Share views and insights
Speak up when you see something
unexpected
React constructively
on surprises
Show and discuss uncertainty in
governance meetings
Frequent meetings to
digest updates/new insights
Distributed planning on
different levels
Iterative development
 feedback loop
Communication
structure
Manage expectations
 anticipate expec-
tations & address
them
Translate uncertainty into realistic
expectations (customers, internal
stakeholders)

22. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
ProcessesStructures
Behavior Capabilities
Deal
professionally
with
uncertainty
all plans with cost & time
ranges
Accept, that uncertainty is
always there
Share views and insights
Show and discuss uncertainty in
governance meetings
Distributed planning on
different levels
Scrum
Basic acceptance by PdM
Recruit Portfolio Mgrs
with “right” mindset &
perceverance
Decision model
Portfolio Mgrs

23. Intervention
2

24. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
ProcessesStructures
Behavior Capabilities
Deal
professionally
with
uncertainty
all plans with cost & time
ranges
Accept, that uncertainty is
always there
Share views and insights
Show and discuss uncertainty in
governance meetings
Distributed planning on
different levels
Scrum
Basic acceptance by PdM
Recruit Portfolio Mgrs
with “right” mindset &
perceverance
Heavy debates
in governance
meetings
Teams don’t
support the
ranges
Explain purpose of
ranges
Tool support for ranges
POs asked to support
ranges
Lift the abstraction level
in governance meetings

25. Intervention
3

26. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
ProcessesStructures
Behavior Capabilities
Deal
professionally
with
uncertainty
all plans with cost & time
ranges
Accept, that uncertainty is
always there
Share views and insights
Show and discuss uncertainty in
governance meetings
Distributed planning on
different levels
Scrum
Basic acceptance by PdM
Recruit Portfolio Mgrs
with “right” mindset &
perceverance
Some
teams hate
the tool
Explain purpose of
ranges
Tool support for ranges
POs asked to support
ranges
Lift the abstraction level
in governance meetings Make tool optional
Less debate
in governance
meetings
Add “give me ranges” to
process without telling
“how”

27. Intervention
4

28. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
ProcessesStructures
Behavior Capabilities
Deal
professionally
with
uncertainty
all plans with cost & time
ranges
Accept, that uncertainty is
always there
Share views and insights
Show and discuss uncertainty in
governance meetings
Distributed planning on
different levels
Scrum
Basic acceptance by PdM
Recruit Portfolio Mgrs
with “right” mindset &
perceverance
Debate:
why can’t we
commit earlier?
Explain purpose of
ranges
Tool support for ranges
POs asked to support
ranges
Lift the abstraction level
in governance meetings Make tool optional
In
governance
meetings: range is
used to discuss what
we can tell to the customer
Add “give me ranges” to
process without telling
“how”
Provide customer
oriented uncertainty view
in governance meetings
PdM understand
development better
Regular work/scenario
meetings between
Development and PdM
Developers understand
PdM better

29. Intervention
5

30. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
ProcessesStructures
Behavior Capabilities
Deal
professionally
with
uncertainty
all plans with cost & time
ranges
Accept, that uncertainty is
always there
Share views and insights
Show and discuss uncertainty in
governance meetings
Distributed planning on
different levels
Scrum
Basic acceptance by PdM
Recruit Portfolio Mgrs
with “right” mindset &
perceverance
Explain purpose of
ranges
Tool support for ranges
POs asked to support
ranges
Lift the abstraction level
in governance meetings Make tool optional
PdM and
Development
starting to “join forces”
Add “give me ranges” to
process without telling
“how”
Provide customer
oriented uncertainty view
in governance meetings
PdM understand
development better
Regular work/scenario
meetings between
Development and PdM
Developers understand
PdM better
Closely pair PO with
PdMgr

31. Intervention
6

32. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
ProcessesStructures
Behavior Capabilities
Deal
professionally
with
uncertainty
all plans with cost & time
ranges
Accept, that uncertainty is
always there
Share views and insights
Show and discuss uncertainty in
governance meetings
Distributed planning on
different levels
Scrum
Basic acceptance by PdM
Recruit Portfolio Mgrs
with “right” mindset &
perceverance
Explain purpose of
ranges
Tool support for ranges
POs asked to support
ranges
Lift the abstraction level
in governance meetings Make tool optional
We
don’t need
commitment
decisions
any more
Add “give me ranges” to
process without telling
“how”
Provide customer
oriented uncertainty view
in governance meetings
PdM understand
development better
Regular work/scenario
meetings between
Development and PdM
Developers understand
PdM better
Closely pair PO with
PdMgr Make commitment
decisions optional

33. To be
continued
…

34. Evolving organizations using applied systems thinking | Hendrik Esser | © Ericsson AB 2017 | 2017-01-25
Q
A