 And Eric has spent some 20 years developing people, products and organizations. And we will get a teaser of some of the things he's learned. Does it work? Just checking. I think so. There we go. I think I will pretty much leave the floor to you, Eric. Thank you. So just take it away. Thanks. Good to be back. So, I'm going to take you through a journey. I'm going to talk about a few game changers that I've seen over 17 years and a few companies that may be familiar. And we're on a boat, right? It's not that I want to scare you or anything. The world is volatile, it's uncertain, it's complex and it's ambiguous. But it's also very beautiful, as you can see in this nice woodblock painting from the early 19th century. So these things don't happen right. There's no freak waves unless they happen in the Baltic seas in the 90s. There are no tsunamis except that sometimes people from the Nordic go to places where there are tsunamis. So there's always been transformations, there's always been big changes in the world. And there's also been people that set out on these journeys to transform themselves and to transform their surroundings. So this is like part of human nature. Then we have this digital thing, right? Going from atoms to bits. And what's happening here is that things are going so much faster. It's like an order of magnitude or two orders of magnitude or three orders of magnitude. It's 1,000 times faster with the digital stuff. So the products, the services, the business model, everything is in constant flux. And in fact the rate of change will never be slower than today. That's the world we live in, right? So short break, I'll show you back to the story, just to give you some background. So I'm in Netsent and we're trying to get better games out. And I try to help out with making the company better on a daily basis. I joined just a few months ago, before that I worked many years in Ericsson. You know, 100,000 people all over the world doing these complex telecom equipment stuff. From FUB, some of you may remember that company. We grew from three people to 3,000 in three years. And then we ran into the scaling thing. And the rest is history. So I'm a fan of Flow. I'm a fan of our teams and our fantastic people. And you may have seen one of those Flow fans in the tunnels around Stockholm or rather under Stockholm that helps the flow of air. So I'm going to do a short commercial break. So Netsent, we're driving the casino markets and we're doing better gaming all day long. It's about people. You know, we're 1,000 people in the US, in Europe and in India. We're, you know, 60 plus nationalities, 60 plus languages spoken. 38% women, 62% men. We're aiming for 50-50 by 2020, which is pretty amazing. But you see here, this is about diversity. Diversity of people, diversity of ideas, diversity of endeavors. And that's really, really important in this world of change and world of learning. Some hard facts, you know, we have some 100 customers, 142 million euro revenues and 36 billion transactions, which happens to be more than the New York Stock Exchange transactions. So end of commercial break. Back to the story. Digital transformation. That's what we're talking about. But not only that, that's just the outside. That's the world. That's the market. That's the customers. What about the inside? The inside of companies. There we need something as well. We need some kind of cultural transformation journey. You know, this big insight that the rate of change in the outside world, the speed of the outside world with the internet and mobile phones and smartphones and all those things. And the friction of the markets going down. You know, you bear your Airbnb and those companies. And that means your companies, your organizations need to get to that speed and reduce that friction internally as well. Otherwise, well, we heard about the diner source, that organizations will die. And the culture is so important. I mean, what is culture? You know, it's beliefs, it's values, it's stories and myths, it's heroes and rituals. All these things are valid in society. They are also valid inside companies. And you can work with these things. You can work with the stories. You can work with the beliefs. And you can work with who you turn into heroes and who you, what kind of rituals you have, what you celebrate in the companies. And this is nothing new. Of course not. This is old stuff that we tend to forget. Who's this? Wayne Gretzky, right? The great one. The best ice hockey player ever, who ever lived and played the game. A true game changer. So when asked about the secret to his success, this is what he asked, this is what he answered. I skate to where the puck is going, not to where it has been. That's a game changer, right? So everything goes back to ancient Greece, at least in the western world. Who's this? Archimedes. Yes. And what did he say? Give me a long enough lever and a falcon to put it on. And I will move the world. Exactly. Or you can move your organization or your department. But I think an important addition to what Archimedes said is of course where you put your leverage points. Where do you get the leverage? Well, you can try moving the world by doing what he does. You can also try, you know, with measurements or ways of working or structures or vision, mission, purpose, goals. But of course, if you put the leverage point over here, that's where you get the leverage. That's where you get the movement. That's where you move the world and move the organization. That's the game changers or your paradigm shifts or your revolutions. So let's see what game changers do you see around you in your companies, competitors, or in society at large. Let's start. Number one, customers. Is this the way your company sees itself and your customers? In fact, very many companies do. And even if they don't want to, they sort of act like they're the center of the universe. And if you don't believe me, you may think about the last time you called customer support or customer service of your favorite service provider. So the game changer is of course, and you may want to look at this very carefully. Look what's happened here. It's a small little Copernican revolution. You put the customer in the middle. Easy said, hard to do, very hard to do, very important to do. And we have a great example because you all want examples, right? So Amazon, I think is a great example here. They're really about customer centricity. So their mission is to be the earth most customer centric company. And then they have this little thing called online business to support that. And now they're not even online only anymore. They're starting to do physical stores, right? So their purpose is to be the most customer centric company. It seems to be working out well for them. You know, seven billion US dollars in 2004, 136 billion US dollars in 2016. It's pretty good success. So customer at the center of the universe. So moving on, organizations. I think we talked about this a lot and you've seen various metaphors. So organizations as machines. You mean the language that people talk about their organizations is very mechanistic. You know, management pipelines. Have you ever been inside a management pipeline? Would you like to go inside a management pipeline? Software factories. How many work in software factories? How many work in organizations that talk about software factories? I used to do that. How does that feel? What about well oiled machines? Have you ever heard someone in your organization talk about well oiled machines? It gives a feeling of control, right? Feeling of being on control, which is of course totally illusory. There's another way. We heard it. Many speakers in the morning and in the afternoon talked about organizations as more of living organisms. You know, simple operating principles. High diversity of people, ideas and endeavors. Lots of interactions, a lot of collaboration. Many feedback loops having trust and reciprocity both internally and externally. I don't know if I can think of some examples. I think these companies talk about themselves in biological terms or as complex adaptive systems. But I think Toyota and Scania comes to mind. They sort of do these things, but they don't talk about it in these terms. They talk about it in words that make sense to them and to their people. Moving on. Strategy. Big word. Very important stuff. How do you do strategy in your organizations? Do you do it like this? Rather slow moving game. Thought. Strictly defined rules, moves and pieces. And an all-knowing grand master who makes the moves. And the pieces are just executing the strategy. Sounds familiar? There's a better way, I promise you. And this is for my Dutch friends in the audience. Jürgen and Ben, I don't know if you love football as I do. This is how the Dutch play football and many others as well. It's a fluid game where you have a general direction and you want the players and the team to act independently and as a team. We're using highly different approaches based on what the opponents do and following the general direction and take individual decisions all the time and trying things out. So I think a great example here would be Lego. They make very explicit choices what to do and what not to do. What playing field they want to be on. And they have a general direction where they're going. And they validate their assumptions by prototypes, by demos, by experiments. So they do strategy in this more fluid game where they trust people to take actions where it matters. And they're pretty successful. I think they're now the biggest toy company or toy organization in the world by far. Moving on. What about leadership? What's the game changer here? So we have two axes. The alignment on what and why, the intent, the purpose. We have the horizontal one on actions and how. And we see some people, some look happy, some look not so happy. This is the classic command and control. You know, low alignment, low autonomy. Just do what I tell you, no explanations. Just do it. Then we have this alignment for autonomy where you give a lot of what and why purpose and intent in order to maximize the autonomy on the how. And this is a key point when you're scaling. When you have a certain size of your organization you need to have some kind of alignment as well. That's really, really important. Because if you do this, you will get speed. You will get innovation. And you will get engagement. Just through these simple things. Which will also give you delighted customers, which is a good thing. So at NetEnt we use something very similar when we talk about leadership. We have on one axis an axis of discipline and on the other axis a culture of initiative. We want people to take initiative. And discipline here just means get shit done. Pardon my French. Get it done, done, done. Complete it, finish it and ship it. So that's what we call a challenger culture. We want self-driven employees that takes decision where it matters. We want everyone to be a leader. Because then we get those good things. The speed, the initiative, the engagement and the outcomes with the delighted customers. Okay? Moving on. Ways of working. Yeah, that's pretty important too, right? Another four-fiddler. So look at resource efficiency and flow efficiency. What do I mean by resource efficiency? Well, you keep your people and your equipment maximum utilized. 100% or above. Flow efficiency, that's fulfilling customer needs as quickly as possible. From need to fulfill need in the shortest possible time. Let me give you a couple of examples. So here you have a steel mill, very expensive. You need to keep the equipment fully utilized. Flow efficiency, think about your ambulance service. Here your response time is a matter of life and death. You really want to get this done quickly. Anyone from IT in the room? Yeah? Think about your servers. What utilization do you keep your servers at? They're here 70, 60, 80. Why do you keep it at 60, 70 and not 100? Well, they're going to crash. Or you get very long response times, no performance. How can we forget these things when we deal with people and teams? Strange, isn't it? But it's not either or. You want to do both. You want to have flow efficiency and you want to do resource efficiency. But you want to sort of start with the flow efficiency first and then go to resource efficiency as a second step. Because then you reach faster, better, more, with more happy employees and more delighted customers. Once again, I'm going to give you an example from NetSense. So what we do, we have this nice room, a visualization room where we look at all our games and the whole idea is to have people collaborating on getting stuff done. Getting to shorten the time to customer by visualizing the flow and collaborating on getting out of blocked state, getting removing all the impediments and get shit done. Pardon my French again. That's one example of the importance of getting things out. Learning. We talked about that. We heard in the panel how important it is to learn and learn or even know learn. And I think it's very important to look at these things. Fixed mindset. You think your ability is static. You don't need to learn or you cannot learn even. You're born with it sort of. Contrast that with the growth mindset where you truly believe in the ability that all your abilities can be developed. You know, you embrace challenges, you desire to learn and you learn from negative feedback in order to improve. And this is really, really important to have these growth minds with the individuals and the people in your organization because if this world with the rate of change never been slower than today, well, it's about self-outlearning organizations that you have the ability to learn faster than competition in order to meet your customer's needs. That's the name of the game and that's what growth mindset gives you. So in that sense we have a number of core values that we really live on a daily basis. You know, together we win, we act speed smart, think ahead, be ahead and passion in what we do. Just to give you one example on how we try to build in the growth mindset through our core values and our behaviors. You see here, you know, I seek answers. I dare to challenge and be challenged. We learn and grow from successes and mistakes. So we really do believe in this and we try to live this on a daily basis. Final game changer, budgeting. Don't we all love budgets, right? Especially in Handelsbanken. But this is really important and you know, you have the traditional budgets, your yearly stuff with fixed cascaded targets and resources through detailed allocations. Then there's another way, this beyond budgets where you have a more dynamical rhythm, you know, directional, ambitious, relative targets, benchmarking, all the stuff that we just heard about in the session before, where resources are allocated when they are needed. And as we heard, I mean, Handelsbanken is a pretty good example of this. Of course, there's loads of other things other than the budgets that Handelsbanken is doing right. And I think you've been outperforming the rest of the banking industry in Sweden and Europe and in the world since 1971 when you were embarked upon the journey. So this is truly amazing and you never had to be bailed out by any government in Handelsbanken. This is pretty cool. Time for the ultimate question. Are you still awake? How are you skating to where the puck is going to be? In terms of customers, organizations, strategy, ways of working, leadership, growth mindsets, learning and budgets. Thank you. Thank you, Eric. Oh, that was loud. So lots of questions. But one question was actually relating to you and Mr. Gretzky. So how do you skate to where the puck is going to be? Yeah, I try to be curious and stay curious. I try to look into various fields and be inspired by people like Jurgen and Joshua and all the other great speakers in this conference. The conference is a great way of seeing what's going on. Sharing and learning. Sharing what you've learned and learned from others, that's a great way of trying to predict where the puck is going to be. And all of these game changers, is it you need to work on all of them in parallel or can you pick a favorite where you start? I think it's always good to start where you feel you have some traction and you have some interest. So that would be my advice. Budget. Yeah, budget. If you're a bank, probably budget is a good place to start. Good. Just how many work in organizations that are sort of 1,000 plus employees? How many work in organizations that are 5,000 plus employees? Okay. How many work in companies that are less than 100? Okay. I need to get a feel for. Questions to Eric. We have a few minutes for questions. We have a question over here. Do we have a microphone? Please shout. So the question was, if budgets are allocated as needed, wouldn't you end up underutilized? The key point for me would be that you do it when it's needed. So you don't do it one year in advance, or in some cases you had those five-year plans in some economies that then collapsed. So the idea is to have it on a more dynamic basis. So you don't allocate your budget upfront. You allocate it to the things that are needed when they are needed. I think that's the important thing. And frankly speaking, not very many companies are very good at this, with the exception of Handelsbanken and a few others in this beyond-budgeting movement. But I think it's a matter of being agile in the sense that you allocate when it's needed based on the need when they show up. That's a great comment. So the question was just as a reference for those of you who haven't heard. So you can shift servers and money around, but people are not as easy to just reallocate. That's a great question. And then we're back to the growth mindset. I've seen teams, development teams, that as their deep skill and expertise, that they're flexible, that they can learn very quickly. So you can actually move a team that has that ability and has practiced that ability and get them up to speed within a month in a new area. So I've seen that with my own eyes. It might sound like science fiction, but it's possible if you practice and if you have the right sort of behaviors in line with the growth mindset. Okay, more questions? That's very interesting. But how does it really look when you have both and have you experience that being fully? So yeah, so the question was how do you... Flow efficiency and resource efficiency and how does it look if you have both? How do you look when you fully have both? So you can't really have both fully, which you can aim for it, right? And I think I haven't really seen it completely to the sort of... as far as it gets. I've seen a lot of flow efficiency in a good way. But then, of course, when you have flow efficiency, you can start looking at, okay, can we tune and tweak the resource efficiency part as well? But to be honest with you, I haven't really seen it. I've seen sort of the movement going in that direction. And it's important that you get out of this resource utilization trap that most of us are sort of born and bred into in schools and in the companies that we work for. So we need to get out of that first and then get into the flow first. Good question. No more questions? Well, in that, where? It's so far away. Since you're so good in this on-the-fly budgeting, are you training your customer companies to be good at that as well and how to learn that? So the question is, where are you training your customers of being great at Beyond Budgeting? So, very good question. The reason I didn't give Netcent or Ericsson or Framfab as an example, but rather Handelsbanken, I think that shows that I'm not really the right person to give advice on Beyond Budgeting. I think we have a gentleman just before me. They can tell you all about the benefits and how to do Beyond Budgeting. I'm not really the person, but I see that as a true game changer. My point by bringing it up is that you need to have this complementary view of learning, budgeting, leadership, ways of working, strategy, organization, customer. All those things are important. And if you miss out on one of them, you might be disrupted. That's the point. All right, Eric. I say we thank you. And here it is. Go on. And a big hand.