Easy Agile Podcast Ep.15 The Role of Business in Supporting Sustainability Initiatives with TietoEVRY

"It was amazing to talk with Ida and Ulrika from TietoEVRY, they are truly leading the way in sustainability" - Rebecca Griffith
Rebecca and Caitlin are talking with Ida and Ulrika from TietoEVRY, about big picture sustainability and the role of business in supporting sustainability initiatives.
π Implementing sustainability in daily business operations
π The role of technology in advancing sustainability
π Ensuring your sustainability & DEI report doesn't turn into a stagnant document
π Framing challenge in a way of opportunity
π Getting the whole team on board
An important listen for everyone, enjoy!
π² Subscribe/Listen on your favourite podcasting app.
Transcript
Caitlin Mackie:
Hi, everyone. Welcome to the Easy Agile Podcast. I'm Caitlin, marketing coordinator at Easy Agile.
Rebecca Griffith:
And I'm Beck, team and operations assistant at Easy Agile, and we'll be your host for this episode. Before we begin, we'd like to acknowledge the traditional custodians of the land from which we broadcast today, the worthy, worthy people of the Tharawal nation and pay our respects to elders past, present and emerging. We extend that same respect to all aboriginal and Torres Strait Islanders people joining us today.
Caitlin Mackie:
Today, we're joined by Ida and Ulrika from TietoEVRY. Welcome. Thanks for joining us.
Ida Bohman Steenberg:
Thank you so much for having us.
Ulrika Lagerqvist Von Unge:
Thank you.
Rebecca Griffith:
It would be great if we could start with some introductions. Ida and Ulrika, could you tell our listeners a bit about yourselves and your role at TietoEVRY?
Ida Bohman Steenberg:
Yes, of course. I'm Ida and I'm heading up the sustainability team at TietoEVRY since four years back. And Ulrika?
Ulrika Lagerqvist Von Unge:
Yeah. I work within the sustainability team as a sustainability manager also here at TietoEVRY.
Rebecca Griffith:
Excellent. Thank you. Thanks for the introductions. Let's jump in. For our listeners who might not be familiar with TietoEVRY, can you give us a bit of an overview about what the company does?
Ida Bohman Steenberg:
Yes. Sure. We are a company based in the Nordics, like very, very far away from sunny Australia. We are a tech company. We provide different solutions. For instance, in software, cloud and infra and also business consulting. I think nowadays, we are the biggest tech provider in the Nordic, at least.
Caitlin Mackie:
Sustainability is a huge part of TietoEVRY. You really have a robust sustainability game plan and your strategy for 2023, which highlights your key priorities for ethical conduct, climate actions and creating an exciting place to work for your employees. Can you elaborate on the sustainability game plan for 2023?
Ida Bohman Steenberg:
Yeah, we would love to. The sustainability game plan is our long term plan that we created last year. We were actually two companies merging into one last year. We had different legacies. X Tieto were good at some things and X EVRY were good at some things, but of course, we had lots of challenges too. We had to sit down and really try to find out what should be our focus going forward and not only actually to build upon what we already have, but also look at the major challenges out there to see like, where do we want to be and what role do we want to have? We created a game plan that is two-folded. We have like the responsible operations that is the traditional sustainability work that you would find at any organization that takes sustainability seriously.
We have the ethical conduct where we have business, ethics, and the corruption, cyber security, privacy, human rights, responsible sourcing, for instance. Then, we have exciting place to work, which is more like HR related because we're people companies, we have to be very good at this in order to attract the right talent and also to keep the talent that we have. We have major challenges when it comes to bringing in and keeping women in our sector, for instance, so we have to be very good at diversity and inclusion and also employee experience, of course, to make this a fun place to work at. Then, of course, climate action may be the one thing that people think about most when they think about sustainability due to the emerging climate crisis. We work a lot with that, of course, and also circular economy and our take on that.
That is like the foundation for us that we have to be very good at like our license to operate, and we work throughout the value chain with these topics, but then because we are a tech company, we also wanted to see what can we do to not only improve our own sustainability performance, but foremost our customers? What's due, I think, and what really stands out for TietoEVRY now is that we have this really, really strong business focus going forward for this sustainability game plan. I was thinking maybe Ulrika could take over and explain and elaborate a little bit about the upper half of the circle.
Ulrika Lagerqvist Von Unge:
Yeah, exactly. What we identified when we were developing this strategy or long term plan was that some of our biggest impacts also actually resides among our customers. We have a lot of capabilities and we have a lot of customers, so why not combine those and see where do we have the biggest opportunity in terms of actually helping our customers to become more sustainable? We developed a methodology where we investigated our capabilities, our customer pain points, our customer opportunities and landed in four broad impact opportunities. That's where we have business opportunities in making our customers sustainable. Those are new focus areas within our sustainability long term plan, where we engage with our own business to drive these areas and develop together with our customers to create positive impact on people, planet and societies.
Ida Bohman Steenberg:
I think also if I may add to that, Ulrika, so we set the plan to do that, and we had of course, a lot to build upon. We had lots of good reference cases, but of course, we needed to pin it down to get the buy-in from management. Also, of course, get the resourcing. We started with identifying those areas where we think that other people have, or other customers or stakeholders have impact opportunities, which means a business opportunity for us. We must not forget that, but in order to actually deliver in a good way and at the speed that our customers require, we also had to create a consultancy team that could help in the delivery organization because the customer requirements become... The pressure was so high.
For our little team group sustainability, we couldn't really handle everything, so we created something that we call the sustainability hit team, which is a consulting team consisting of consultants that knows data and sustainability within business consulting. Ulrika, you have been given also... You have the role of leading this group, perhaps you would like to say something more about that group?
Ulrika Lagerqvist Von Unge:
Yeah. Yeah. Sure. Well, this is a group of people that, just as Ida said, they have this kind of expertise, combining sustainability knowledge with IT and technology. We work together to identify both ongoing projects that might be related to sustainability in one way or the other that we perhaps can scale and create synergies, but we also work to identify new opportunities, having our ears towards the ground and listening into what do the customers actually want to have. Then, we take in these opportunities and try to see how we can develop them to actually support our customers. Hopefully, this team will just continue to grow and us with our other efforts, become very integrated in all our business operations. That is at least our aim, so the responsibility lies where the responsibility is sort to say.
Rebecca Griffith:
That's wonderful. Now, I think you've kind of touched on this in a broader sense, but in the TietoEVRY annual report, you talk about implementation of sustainability into daily business operations. What are some other key ways that you're doing this?
Ulrika Lagerqvist Von Unge:
Yeah. If I can start, Ida?
Ida Bohman Steenberg:
Sure.
Ulrika Lagerqvist Von Unge:
I think one of the most important things is to involve everyone from the beginning in what we actually should focus on and what are the most important topics in terms of sustainability, both for all our stakeholders, but also for our business, so that we actually give the ownership of sustainability to the organization. Not so that they feel it comes from the side or from above, but it's actually something that is relevant and that the organization owns. That means that each and everyone has the responsibility to also contribute to our joint targets that we also have involved the different business leaders and parts of the organization in setting. I think that ownership is a keyword here to actually enable integration of sustainability in the operations. Ida, do you agree?
Ida Bohman Steenberg:
Yeah. No, but the group sustainability, our group, we are a small team consisting of specialists with long experience, but we are only so many, so we have to have a very integrated way of working in order to make this fly. What we've been focusing on a lot since many years back is to get it integrated. For instance, if we look at responsible sourcing, which is crucial how we handle our supply chain. We work closely together with a chief procurement officer. The sustainability goals that we have that are public and that we disclose every year in our annual report is just as much his goals as it is our goals, so we really get some power behind driving it and we get the results that we need in order to move forward. That is one thing. Then, as Ulrika explained earlier in the last question about the sustainability hit team, how we also now have taken this step further to really approach the business in a more structured way that we have done before. As I said, we had very good reference cases and we have a portfolio of sustainability related services, but now we're doing this in a much more structured manner because of the market, the demands that has increased so much.
Caitlin Mackie:
Yeah. That's great. I think what you mentioned, having that structure helps with that company buy in and getting everybody on board and realizing that it's everybody's commitment and it's like a journey you're all on together. Yeah. I think that's great. Something that's often talked about is the overlap between business and sustainability and the role of the business in addressing some of the major challenges we face as a society. I think so many look to clearly distinguish their responsibility and draw a line somewhere, but I'm not so sure that's the right approach. TietoEVRY certainly recognizes they have an important role to play and really pave the way towards carbon neutrality. What's your approach to this?
Ida Bohman Steenberg:
Okay. First of all, I think there must be an overlap or there must be like, if you are a company like we are, we cannot do things that we don't think also is good for us, like financially long term. That is the beauty of sustainability. If you have good and long term targets, it's also support the growth of the company in financial terms, so we always have both those perspectives in mind, creating strategies going forward. For us, we work both for our own operations when it comes to climate change to decrease our carbon footprint, obviously, so we are changing. We have renewable energy in all our data centers and offices. We are now currently at 80% and approaching 100. It's going to be difficult. The last percent is always the most difficult ones, but we have a good development as for now.Then, of course, we work super hard because this is the, I think number one question that our customers is asking for, ways to manage their own carbon footprints. Here we are strong in data, of course. Do you want to add something around that?
Caitlin Mackie:
No, but I think that the first reflection that you had that we have this financial perspective also when developing the sustainability plan, it's important because I think that what we see is that... Our business is doing business. Yes, of course. But if you don't do it right, there will be no business on a dead planet, right? So that you have to have the long term perspective where you take into account all the different aspects. It's not only the financial, because they're also interlinked. I think that also the risks that are connected to, for example, climate change for business operations, so the inbound risks that the surrounding is posing to us are becoming more and more clear. I think that it's also becoming evident that if you don't have sustainability integrated in your operations, you will no longer have a license to operate in 2021 and beyond. I think it's just a smarter way of doing business, to be honest.
Rebecca Griffith:
We can all acknowledge that climate action is one of the biggest global challenges for our generation. In recognizing that this is one of your key priorities to address, how do we take these challenges and frame them in a way of opportunity?
Ida Bohman Steenberg:
Well, this is the beauty of being a tech company. We have the luxury of not having lots of goods that we need to take care of cotton or food or so, so we can go straight to the point, I think, and start to listen to what our customers need and create services and solutions that support them in their journey to decrease their carbon footprint. It sounds very easy when I say it like this. It's not that easy, of course. It requires a lot of hard work and everything, but that's what we should do. I think that when you look at the crisis that is emerging, the tech industry is also seen by the other industries as the great enablers. I think that we have a key role to play. I think that we have a responsibility to our stakeholders to be there and to be in the forefront.
I think that's what we've been doing. For instance, for the last year, the guest team has been working on a very interesting solution called the sustainability hub, which actually addresses this spot on. Would you like to...
Ulrika Lagerqvist Von Unge:
Yeah. Yeah. Definitely. I totally agree with you, Ida. The tech industry, it's really an enabler and that also means that there's a lot of business opportunities. As you said, the sustainability data hub voice, one of our responses to these kind of business opportunities that we see out there, so what happened was that we were sitting and discussing and realized that one of the biggest obstacles for companies to actually integrate sustainability into decision making, into risk management analysis, et cetera, is the lack of data as you have now produced your own ability report, the big hurdles that comes with actually collecting the data for that report, it sits in shattered data sources.
The collection is often manual. The data might not be in the right shape. Most companies actually collect the non-financial data once a year for their annual sustainability report. That means that when you have that data, you are actually steering through the rear view mirror because you are not steering proactively by taking fresh data into account when you take your decisions or plan your operations. What we did was that we started to develop a solutions, which builds on automating the data collection of sustainability data by helping customers to identify where does the data sit? How can we actually automate it? Is it via automation, via IoT solution? Who will use the data? Which KPIs and metrics do we want to map it against? How often do we want the data to be updated? Then, visualize it in real time? A modern way of an ERP system for ESG data, you could say, so that it is actually possible to equate non-financial inform and with financial information.
That should give the opportunity for companies to treat the data in the same manner and actually integrate sustainability into the decisions that they take. For example, let's think about the impact of us going from working at the offices to now working hybrid. What are the actual impacts? Can we see that the sick leave has increased or decreased? How has the carbon emission been impacted by us not traveling back and forth to the offices? If we have that data, we could also use that to decide whether we should continue with hybrid working, or if we should force our employees to come back to the office, or if everybody should be working from home. If you can get hand of that collective view of the activities that you take, you could also make more holistic and informed decisions. That's one response kind of how we try to treat sustainability as a business opportunity and identify which are the pain points that our customers have in terms of co-creating a sustainable future, and where can we tap in into that? That is the kind of beauty, as you said, our industry.
Ida Bohman Steenberg:
It is.
Rebecca Griffith:
Really interesting looking at it in real time, as you said, as opposed to a retrospective assessment of the data, which really, you can't change.
Ulrika Lagerqvist Von Unge:
Exactly. Yeah.
Ida Bohman Steenberg:
Yeah.
Rebecca Griffith:
What's the point in waiting another 12 months to then look at it again when you have completely done [crosstalk 00:18:32]?
Ida Bohman Steenberg:
Yeah. Both sustainability.... Yeah. Sorry. Both sustainability and tech is moving extremely fast. I think we need to work like this. I think customers are going to require... We see more and more before they wanted us to report once a year, but now so many of our customers, they want us to report different types of data related to the solutions or our delivery to them on a quarter basis. The more we can have real time data, I think it's going to be the new normal very soon.
Ulrika Lagerqvist Von Unge:
Me too. That will be a huge game changer for companies. When the data is there, you can get it black on white. There is no excuse for taking bad decisions, right?
Caitlin Mackie:
Yeah. Yeah.
Rebecca Griffith:
Quite exciting.
Caitlin Mackie:
Exactly. I don't know about you, Beck, but I'm definitely sitting here being like, "Wow," at all, like this would've been super handy 12 months ago.
Ulrika Lagerqvist Von Unge:
Yeah.
Ida Bohman Steenberg:
It's out there. Yeah.
Ulrika Lagerqvist Von Unge:
Yeah.
Ida Bohman Steenberg:
It's on the market, so you're more than welcome.
Caitlin Mackie:
All right.
Ulrika Lagerqvist Von Unge:
I think that's also typical from sustainability that you have to understand that the solutions to all of these kind of complex problems, they can't be solved by any actor. We need to work in ecosystems and everybody will have to bring their expertise to the table. Then, we can get things to actually be solved. I hope that that logic will also impact other areas so that we more try to cooperate instead of having the cake ourselves, because then there will be no cake left over. That would be sad.
Caitlin Mackie:
It's so, so refreshing to hear you say that. I think for so long businesses have always had this idea about, "Oh, competition," and like, "Keep what's yours. Keep it to yourself. We're going to succeed in this area." But moving into this space, it's just not about that anymore. It's about how we can collaborate together to reach those solutions. I think that's so powerful.
Ida Bohman Steenberg:
For sure. No. Sustainability is horizontal work. As an organization, as an entity, as a company, we are not stronger than our closest stakeholders anyway. Our performance is very much reliant on their performance.
Ulrika Lagerqvist Von Unge:
I think it's so interesting also because since we come from that kind of background, Ida and I also always working across all silos, across all kind of company functions. We also get a special role in our company because we don't have the legacy of working in silos, so we just totally break them all the time because we're not aware of them. That's just what is needed to be able to get the job done. I think that it's really interesting to see how the organization actually appreciates that.
Ida Bohman Steenberg:
Yes. Sometimes, they don't.
Ulrika Lagerqvist Von Unge:
Sometimes, they don't. Exactly. Sometimes, they don't. Yeah. That's true. Yeah.
Ida Bohman Steenberg:
But we have our battles internally. If you're a sustainability professional working in a big organization, you must be very prepared to have those tougher discussions as well, but we all get there, not always on time from our perspective, but that's the way it has to be. Fearless and just...
Ulrika Lagerqvist Von Unge:
Stubborn.
Ida Bohman Steenberg:
Stubborn, and don't be too bothered about silos or hierarchies or so, because then you will never get anything done.
Caitlin Mackie:
I wanted to highlight or expand on the idea of opportunity and the fact that we constantly need to be exploring new and better ways of doing things so that we can move forward. It would be great to get your thoughts on the role of technology in advancing sustainability. I know you've touched on it, but it'd be great to elaborate.
Ulrika Lagerqvist Von Unge:
If I start, then you can build on it.
Ida Bohman Steenberg:
Sure.
Ulrika Lagerqvist Von Unge:
I think that some of the business opportunities or the solutions that we can develop are cross industrial. For example, the need for data and the need to get hold of it and to visualize it and to be able to act on it, is of course, something that all companies in all industries could make use of. But then, I think that for many solution, they are industry specific. For example, logistic. They need certain solutions to be able to optimize their logistic, their rooting, or to better pack their lorries and trains, et cetera. But I think that... There are both this industry specific solution and this cross sectional business opportunities stuff that you have, and also one of the hidden gems within the IT sector is the side effects of digitalizing services or solutions.
It's also important to understand that even though a solution might not be developed and deployed for the use of mitigating or climate change, for example, the actual impact of its implementation might lead to less carbon emission. Let's think about we have a solution that is called patient engagement. It means that you could engage with your doctors and nurses over your phone, which means that you don't have to take the public transportation or your own car to the hospital or to the medical clinic, which of course saves that transportation and in turn, saves carbon emissions if you travel with something except for an electric car. Many of the digital solutions actually have that positive hand print impact or effect, I would say. Of course, the opportunity of expanding on those is also massive and to identify them, perhaps it's the possibility. If you have a patient engagement app, could you use it for other purposes for other users to increase the impact.
Rebecca Griffith:
At Easy Agile, one of our goals was to establish a baseline and publish our very first sustainability and diversity report, which I believe we've shared with you. We'll also share that report as well as the TietoEVRY annual report in the show notes for our listeners. But what advice would you give to organizations to ensure that these kind of documents don't turn into a stagnant document or a mere check of the box exercise? How do we use these reports to encourage conversation and continually seek ways to improve?
Ida Bohman Steenberg:
Okay. I get so many thoughts now. First of all, keep up with an upcoming frameworks. Don't get stuck in all the good old GRI for instance. In the European Union, so we are now approaching the taxonomy reporting or TCFD or so on. Go for those new ones. Also, of course, everybody has to do the ground work. You have to do your stakeholder engagement, the dialogues, the materiality analysis in order to know that you focus on the right things and so on, and you have to have really concrete goals and action plans and KPIs and everything, so you can measure your performance against the goals that ultimately what sustainability reporting is about. But then, I think the opportunity with reporting, because reporting can be a little bit boring too, in a sense, and it can feel stagnant in a way. It is that it's such an important tool in the strategy work.
This is where you get the attention from the leaders like, "What goals are we going to have and how did we do and so on?" That's where you can have the good discussions or you can also raise the ambition level as you go along. That I think is really crucial. Use it as a strategy tool as well, and then never get stuck in like, "Oh, yeah. It's good. We met our targets. We moved 3% forward or whatever." Don't think so much about that. Think about lie what are the major challenges right now? What is your role as an organization? No matter what organization you are, find your way to be part of the solution instead. We have that discussion sometimes internally. People are like, "Oh, but you're doing so good. You have a good results and so on."
But for me and Ulrika and our sustainability professionals, we're like, "Yeah. Okay. We move forward. That's good." But from a greater perspective where we are reaching the tipping point for the planet, so we feel other pressure in order to move forward faster. Don't end up in like, "Yeah. We move forward. We're keeping the pace." Full on power ahead, and speed is of essence going forward.
Ulrika Lagerqvist Von Unge:
Yeah. No, I fully agree. I think that's really good reflections to hook the sustainability reporting up on the challenges to understand. What are the purposes? What are we actually trying to achieve by this report? We are trying to contribute to minimize the negative impact and to increase the positive impact, and the sustainability report is a tool for that. I think another thing that is really important is to actually also engage with the organization to get them define their own targets and their own metrics to report on, so that they feel ownership. For some of the areas that we have in our sustainability report, when we have an engaged partner within the organization that themselves have ideas on targets, we develop their own KPIs.
They feel that, "I really believe in this. I want to work with this." Then, the follow up and the continuous reporting is much easier than while we have perhaps other parts of the organization where there isn't so much clear targets internally, so that the sustainability report is more felt like something that is done on an annual basis just collecting the data, but not making use of it actually. Just create that commitment and build on the company's own targets and own KPIs that are useful. Then, of course, sometimes if you do report according to a sustainability framework such as the GRI standards, which is commonly used in Europe, then you, of course, need to report according to some of the metrics in that standard, but then add your own key guides, your own metrics, because that will make the organization feel engaged, I could say.
Ida Bohman Steenberg:
Yeah. Yeah. Basically to summarize that, so three things, do the groundwork according to the upcoming and fresh frameworks, and then two, use it as a strategic tool to have those important discussions with management and make it a part of the overall strategy, so you don't end up with the sustainability strategy and an overall strategy. Then, three, be bold. Look at the challenges and not only what's doable or keeping the trend or whatever. Those three things, I think is important to have in mind.
Rebecca Griffith:
Spot on.
Caitlin Mackie:
Yeah. I love that. I think that's great advice, especially the idea of you're mapping out what you're doing internally and what that looks like, but being able to take that step back and say, "Okay. But what does this contribute to in the big picture? What are we actually helping and what are we doing to move in the right direction?" Something that I often think about is things like the UN sustainable development goals and looking at those and being like, "Well, what can we do to of map where we are at and where can we offer? What can we be doing in this space that helps reach those targets?" Yeah. Great advice. I love it. But I think just to wrap us up, our last question for both of you is looking forward, what keeps you hopeful?
Ida Bohman Steenberg:
It keeps me hopeful. Well...
Ulrika Lagerqvist Von Unge:
For me, I think the younger generation, to be honest. I think that seeing my brothers' daughters that are teenagers, or to see [inaudible 00:31:19] and the commitment that she's able to steer up, I think that gives me hope that things will move faster in the future. I think that's positive.
Ida Bohman Steenberg:
Yeah. I also second that. I think I visited the school last week with students like 18, 19 years old, and I've been doing that every year for a couple of years now and I always ask them, "What do you know about sustainable? What do you think about it?" Before, it was like, "Yeah. The environment or recycling maybe," but now they were like, "Yeah. The UN SDGs..." So the level of knowledge has increased so much. There is huge interest and when I gave them, "What can you do on a practical level if you want to live a more sustainable life?" They were like, "Yeah. Don't buy a new party cup for the Friday night. Borrow from your friends, or there are these sites. I can text you these sites where you can borrow dresses and stuff like that." They are doing it in real life in such a good way where they combine technology and sustainability, so they're much more tech savvy than we are. I was very inspired by that.
Ulrika Lagerqvist Von Unge:
They're also willing to actually sacrifice stuff. It's like, "No, we don't fly. We don't do this because we would like to have a future to live in." I think that that is something which we are so comfortable and so used to having a certain lifestyle, but they are perhaps not and they are challenging that lifestyle that we have been having, which has also led to where we are today.
Ida Bohman Steenberg:
I think also to add to that, I think that finally the leaders of our countries are getting it, at least getting close to getting it. I think things are changing, so that's good, but my hope stands to the young ones still.
Rebecca Griffith:
It's nice to feel that it's becoming a normal part of consciousness for the newer generations where it's something that we had to learn to appreciate and respect and to take action on, but it seems to be a part of their upbringing and a way of life now, which is great.
Caitlin Mackie:
Well, I think that's great. I think it's great to leave the episode on such a high and leave the audience with a bit of inspiration moving forward. Thank you both for taking the time to chat with us and sharing your expertise with the Easy Agile audience.
Ida Bohman Steenberg:
Thank you so much for having us. It was fun to talk to you, and it's nice also to talk about the perspectives from the Nordics and from the tech industry. Thank you very much.
Rebecca Griffith:
Thank you.
Related Episodes
- Podcast
Easy Agile Podcast Ep.19 Combining Ikigai and OKRs to help agile teams achieve great results
In this episode, I was joined by Leandro Barreto - Lead Software Engineer at Miro.
Leandro is responsible for helping engineering and product teams to be more productive through metrics and KPIs with a focus on increasing their operational efficiency. Before moving to Europe, Leandro worked for an Atlassian partner company in Brazil as Head of Technical Sales.
In this episode, we spoke about;
- Ikigai - what is it and how do you achieve it?
- The benefits of OKRs
- How can we combine agile, Ikigai and OKRs?
- How Ikigai can help agile teams achieve great results and stay motivated
I hope you enjoy today's episode as much as I did recording it.
Transcript
Robert OβFarrell:
Welcome, everyone, to the Easy Agile Podcast. We have an episode today with Leandro Barreto who is a lead software engineer at Miro. I'm your host for today, Robert O'Farrel. I'm the Growth tech lead at Easy Agile. Before we kick off this podcast, I'd like to acknowledge the traditional custodians of the land from which we broadcast today, the people of the Duruwa-speaking country. We pay our respects to Elders past, present, and emerging and extend the same respect to all Aboriginal and Torres Islander, and First Nations people joining us today on the podcast.
Robert OβFarrell:
Leandro currently works as a lead software engineer at Miro where his responsibility is to help engineering and product teams to be more productive through metrics and KPIs with a focus on increasing their operational efficiency. Before moving to Europe, he worked for an Atlassian partner company in Brazil and acted as a head of technical sales with the mission to increase the service offers in Latin America. Welcome, Leandro. It's great to have you here today.
Leandro Barreto:
Yeah. Thanks, Rob. Thanks also for the Easy Agile for the invite. It's a pleasure to be here today.
Robert OβFarrell:
Fantastic. You're here to talk about Ikigai, objectives and key results or OKRs in Agile, so let's kick it off. Ikigai, what is it? Can you give us a brief or a long explanation of what it is?
Leandro Barreto:
Yeah, of course, of course. So, Ikigai I use it to say is a philosophy of life that means like a reason for being or the meaning of life. So, the world Ikigai originates from a village in Southern Japan, where the average life expectancy of people is over 100 years old. So, Ikigai is basically divided in four components. The first, things you love. Second, something that you are good at, then something that pays you well. And finally, something that the worlds need. So, when you put it all together, then you have the Ikigai, but this is not easy. So, let me explain a little bit of each of these companies.
Leandro Barreto:
So, the first thing is something that you love, something that makes you be present, something that you must ask yourself what do you really enjoy in doing? What makes you happy? What holds your intention that makes you lose time and forget about time? So, for example, reading, dancing, singing, painting, learning, teaching, et cetera. So, maybe it's a little bit difficult to answer right now, but understanding and seeking what you love must is fundamental so that you can have a healthy balance between learning, putting it in practice, testing, failing, trying again, and keep the circle repeating itself.
Leandro Barreto:
So, an example that I can give you is, for example, I had a jujitsu teacher that no matter the day, he was always training. And one day, I remember I got my arm hurt. And in the next day, I had a message from him like 6:00 in the morning, he was asking if I was okay. And I was waking up and he was texting me like, "Hey, are you okay? Are you going to be able to train today?" And I was like, "Whoa, take it easy, man." This is very funny because our class is 6:00 p.m. And he was punctually at the tatami or dojo. I don't know the English word for that.
Robert OβFarrell:
Yeah, dojo. We have dojo. Yeah.
Leandro Barreto:
Dojo. Awesome. Yeah. And he was always punctual. And after the classes, he always said that he wants to get home earlier after the classes because he has private classes. So, from morning to night, he always keeps training and you can see the passion in his eyes when he talks about jujitsu. "It's a passion for me". A little bit exaggerated.
Robert OβFarrell:
Something that definitely got him up in the morning and kept him going throughout the day to the late evening, by the sounds of it.
Leandro Barreto:
Exactly. Yes. And then, you have the second component, which is something that you are good at. Something that you can always improve with yourself. So, for example, what you are really good at. It's quite hard to answer, but what the people say is that I'm do... something correct or what they say something positive that what I do. So, for example, I remember the book Outliers by Malcolm Gladwell that says that usually, you have to spend 10,000 hours in something practicing to be good at.
Leandro Barreto:
So, don't take it as an obstacle but as a motivation to keep going, and understand this part of what you are good at. It's a good way to improve. And the third part is what pays you well? So, money is what... Some people say that "Hey, money don't bring... It's not... how can I say that?
Robert OβFarrell:
Money doesn't bring happiness?
Leandro Barreto:
Yeah, exactly. But it puts a roof in your head. It makes you provide a good life for your family. It makes you travel. It makes you have a hobby. So, according to Maslow, for example, one of the bases of human beings is to start thinking about security. So, we have to have this security in order we can improve as a person. So, money helps you to achieve it. Yeah. So, find something that makes your life as comfortable as you desire to, as you wish to. So, otherwise, you'll always be looking for something that you never had. So, for example, time.
Leandro Barreto:
So, you will spend so much time thinking how can you have more money? And here's the glitch, you will never be paid because you will be stuck on your daily basis thinking on how to get money instead of how to improve your skills to get money. Right? And then, you have the what the world needs. So, here, the idea is to find a proposal for what do you do and what is value to the society, your proposal. And sometimes it's quite difficult to find precisely because of the plurality of positions and responsibilities that we have nowadays. And even more today with the full expansion of technology that every month we have new positions to be filled by companies that needs different type of skills, soft skills and hard skills.
Leandro Barreto:
And here, the keyword is to serve. So, I will give a personal example. For example, one of the things that I missed most when I was a young teenager was having someone who could help me to explore the technology so I can get a job. So, it was in the early 2000 and it was quite hard.
Robert OβFarrell:
Yes, very much so.
Leandro Barreto:
The internet is starting, everything is new.
Robert OβFarrell:
People on dial-up, internet was slow.
Leandro Barreto:
Do you remember that sound like prshh?
Robert OβFarrell:
Oh, yeah. It comes to me in my dreams I think. I heard it so many times in that era.
Leandro Barreto:
My family and my friends, they wasn't in the IT field. So, there is no one to help me that. So, I had to learn it by myself. Seems impossible. But it took me time to learn it and enter in a company with a good position let's say that gives me money and the possibility to learn much more faster. So, since 2013, I dedicate part of my time to teach young people, acting as a mentor to help them enter in this market so they can learn new skills. I can open paths for them, put in contact with the right people, people which is going to be important for them, and all aiming to accelerate their dev development and giving them the opportunity.
Leandro Barreto:
And this for me is very meaningful because I'm helping those who don't have any references also, and sometimes don't have a chance. And the more I serve them, the more I earn and I grow with them. So, I came across like when I was introduced to Ikigai for example, another personal example.
Robert OβFarrell:
Sorry. Before we get to that, just reiterating. So, the four components, so there's something that you really lose time in doing, something that you get into the flow of doing very easily. And then, the second component is the thing that you are very confident in doing, something that you do quite well. The third one, being something that pays you well, and the fourth one, being something where there's a need for it. So, just reiterating that. That's correct?
Leandro Barreto:
Correct. Correct.
Robert OβFarrell:
So, I guess getting to that, our second question that like for yourself, you can apply obviously in a business sense, but in a personal sense, what's been your journey there, and do you believe you've achieved Ikigai, I guess, would be my next question?
Leandro Barreto:
Yeah. Well, actually personally, I have some things that's very clear in my life. I'm still not there, but let's say that I'm in the process.
Robert OβFarrell:
Work in progress
Leandro Barreto:
Exactly. Work in progress. So, I have clear goals and I have clear in my mind where I want to go in a few years, so I don't get disencouraged if the weather is cold or warm, if the stock market goes up or down. And the only thing that I focus is to be 1% better than I was yesterday. And this provides me a security that prevents me to wasting time and things that doesn't make any sense or simply doesn't matter for me in the future. So, I take my career very, and also my personal life very serious on that point. So, yeah, let's say that work in progress.
Robert OβFarrell:
I love that word security that you use there. It draws a parallel, I think, to a word that we also use when it comes to that plan that we have, which is that focus element, making sure that we do the things that matter. Do you think that it's also given you a sense of focus too on what you take on and what you say yes to and what you say no to with regards to your personal and professional development?
Leandro Barreto:
Yeah, absolutely. Absolutely. When you know where you want to go, it's more easy to say yes or no to something that came up to you. Another personal example that I remember was something like 12 years ago, 12 to 13 years ago, my focus was to learn Java, for example, Java programming. Because I know in the midterm, I would like to be a Java architect. So, I have to improve my skills on that programming language.
Leandro Barreto:
So, during that time, the company that I was working was making some changes and then they asked me, "Hey, I know you are good at Java. You are learning, but we need you to start learning this another language, Ruby on Rails during that time. But you have to at least for the moment, forget Java." And then, I was like, "Mm-mm. No, no."
Robert OβFarrell:
It's not what I want to do.
Leandro Barreto:
Exactly. I totally understand that was a company's decision. But during that point, it begins to separate my focus on what I want to achieve from the company's purpose. So, it doesn't make any sense to continue on that company. I asked to leave. And again, best decision ever, because then I entered in another company that I learned so much. And then, in three years I became a Java architect.
Robert OβFarrell:
Yeah. That's a fantastic example of that focus. I'm quite curious out of those four components that you mentioned before, what have you found quite easy, I guess, to achieve or to at least get clarity around personally? And what have you found more challenging?
Leandro Barreto:
Good question. Good question. Yeah. So, learning something that you don't know, it's always a challenge but when you have a desire or a clear focus where you want to go in a few years, things start to be clarified for you. For example, in 2014, I did extension of my MBA in United States to learn about entrepreneurship and things that for me was really, really important. But totally new field, I have no idea what to expect but it provides me the vision to... I always had the idea to have my own company in other words. So, I know that in short term, not in short term, but in midterm at least five years to four years, during that period of time, I would like to have my company.
Leandro Barreto:
So, after I did this MBA, I came back to Brazil, and then I started to put myself in situations that makes me learn these new things. And in 2016, I open up our restaurant in Brazil. So, when you have an objective, things, and it's quite funny because the universe starts to help you.
Robert OβFarrell:
You make your own luck in a lot of regards too, I think.
Leandro Barreto:
Yeah.
Robert OβFarrell:
So, if you had somebody who was looking to learn about Ikigai and came to you for some, for your experience and your advice in how to apply it to their lives, what do you think your advice to someone would be who doesn't know much about it?
Leandro Barreto:
Good question. Great question. So, one tip that I, or advice that I can give is, and I think that this is fantastic and I apply it in my daily basis. Don't waste time in small decisions on a daily basis because every day we have thousands of decisions to make and our brain capacity is limited daily, at least daily. So, there are some times that we feel like mentally exhausted after, for example, you have six meetings in a row in a day. In the end of the day, you were totally tired. Right? And I once read that the greatest minds don't waste time thinking on small things, for example, Steve Jobs always wore the same jeans and t-shirt every day. And he didn't need to think to use it. He just took it and reuse it.
Leandro Barreto:
So, during that time, what I did in 2018, more or less when I was presented to Ikigai. So, what I did, I lived alone in an apartment in Brazil. So, I decided to change it, my life. What I did, I donated my entire wardrobe of clothes with things that I almost never used. And I was only wear eight t-shirts and two jeans.
Robert OβFarrell:
Quite a collection.
Leandro Barreto:
So, I avoid making those small decisions, especially in the morning, because in the morning, you have a clear mind and you don't have to spend those in small things, because if you think on small things, probably it'll grow during the day. So, for example, another thing that helped me a lot is plan the week. So, Google Calendar exists to be used, right?
Robert OβFarrell:
Yeah. Yes.
Leandro Barreto:
So, everything that is very important for you, events or plans that need to be done, put on the calendar. And also, talking about the clothes, separate your clothes a day earlier before you go into bed. So, you wake up more calmly, you drink your coffee calmly, and you focus your efforts on what really matters. And once you have freed your mind from thinking about these small things, you can focus your time and energy on learning new things or getting things done the way it should be. And whether it's learning a new language or a new skill, or you can also read a book in the morning because you have free time, let's say. You can focus on what matters to you exactly.
Robert OβFarrell:
Yeah. I'm quite curious about this aspect of finding something that you really get consumed by. And I think in this digital age, we have so many things that distract us. Our phone has a lot of notifications where we have a lot of information at our beck and call and sometimes it can be overwhelming to know what we should focus on, and I guess what we can really get passionate about. I'm curious, do you have any insight into that as to how people can find that thing that they just lose themselves in and that they're super passionate about?
Leandro Barreto:
Yeah, absolutely. Absolutely. Another thing that worked very well for me is to turn off all the notifications.
Robert OβFarrell:
Get a dumb phone just so you don't have that level of notifications coming through. Yeah.
Leandro Barreto:
Yeah. Because I read... I don't remember where exactly, but your brain took something like 15 minutes to focus on something. So, if you don't spend 15 minutes of your time, focus on what needs to be done. You cannot focus at all. So, what I usually do, I turn off all of the notifications from my phone. So, the principal one, I just took it off and I don't care about notifications. Also, one thing that I noticed is that when I, for example, when I had Apple Watch. In the Apple Watch, even if you turn the notifications on or off, the iPhone, it keeps doing on the phone. Oh, my God. So, this is one simple device that I can say, because otherwise, you will enter in a black hole in a community and social media and news, and then you'll lose yourself.
Robert OβFarrell:
Yeah. I found that personally with the Apple Watch, having something on your wrist that vibrates is incredibly distracting. And I was always very big champion of technology, but that was one area where I just moved away from it, went back to a mechanical watch, just didn't want that level of interruption when I was trying to focus on things. So, I think it's a really key insight to focus.
Leandro Barreto:
Yeah. In addition to that, when you, for example, when you are in a meeting with someone and you are actually expecting a message for, I don't know, maybe your family, and then it pops up on your phone and you are in a meeting, and then you take a look into the watch and the people notice that you are not paying attention because you are looking into watch. No matter why you are looking, if it's a message or et cetera, you do provide a psychology... How can I say that in English? Oh, my God. Psychology interference. Let's say it.
Robert OβFarrell:
Yep. Psychological interference.
Leandro Barreto:
Interference. Yeah. Thank you. That will provide a negative influence to other people. So, yeah, that's why you made the right choice to move into the-
Robert OβFarrell:
Yeah. I've heard some people that will actually ask people to leave their phones outside when they go into meetings or leave their laptop outside so that you're present and that you are engaged in the conversation. Because I think even the mere fact that you have your phone near you is a distraction. Even if there's no notifications, its presence is enough to ensure that you're not 100% present in the conversation, which I think is quite interesting from how we focus and our dependency on that rush that we get or that endorphin rush of getting that ping on the phone or that notification.
Leandro Barreto:
Exactly.
Robert OβFarrell:
I thought we could move on to talk about objective and key results. Or for those people that may not have come across this term before, OKRs are collaborative goal-setting methodology and used by teams and individuals to set challenging and ambitious goals with measurable results. So, to break that down further, the objective part of the OKR is simply what is to be achieved and the KR part of it, which is key results, benchmark and monitor how we get to the objective. So, getting to the heart of setting successful OKR is establishing it clear and compelling why. Is there a secret formula to creating a powerful why to get everyone on board?
Leandro Barreto:
Yeah. Great question. So, OKRs, it's all about action and execution. And I think the secret formula, let's say it's having a well-defined proposal and also everyone engaged in seeking the result as the main objective. So, companies in my opinion are made of living ecosystem called human beings. And every human being has its own desires, proposals, goals. And en suite, unite all of the objectives of both the companies and all the people together. That's when we can achieve best results. And that's why some companies are focused on the cultural fit.
Leandro Barreto:
And this is one thing that I see growing a lot in the HR area, companies and persons that must, which the cultural fit must match. It basically means that the person has the same values and desires to achieve results as most of the people in the company or what the company understand as their force that they need to keep growing as a company. And I have seen many technically good people failing in selection, in process selection, simply because they don't adhere to cultural fit. And this is much more than a psychological issue because you don't know how to say like people that cannot work as a group.
Leandro Barreto:
So, it's better for the company to hire someone who can play as a team instead of someone who is like the lonely wolf that keeps working alone. And the results is for only him and not for the entire company. So, yeah, this is the classic example that I can see. And also, one thing that is good for that is nowadays, our fault tolerance is quite good because today at least serious companies don't punish failures. So, they even encourage you to learn.
Leandro Barreto:
And the Spotify models, I remember they say like, "Fail fast and learn fast." So, that was the fail wall was born. So, where everyone shared their failures and they can learn as a team, as a clan, guild. And this is quite beautiful because you can create such an environment where everyone can learn and grow together because humans can fail. And this is normal.
Robert OβFarrell:
Do you think that-
Leandro Barreto:
And-
Robert OβFarrell:
Sorry, I'm just curious. Do you think that companies are more focused around the why these days, or that why has become more important in their measure of success? And you mentioned cultural fit and I love this idea that more companies are much more sensitive to what is their company culture and how does this person work within, or are they going to fit into this company culture? Because the existing people in that company are aligned around their why. And if someone is coming in and doesn't align with that, they understand the impact on their success. So, do you think that company's becoming more and more aware of this and more sensitive to this?
Leandro Barreto:
Yes. I think they are. So, as far as they have the right people in the right environment with the right proposal, no matter the why they will find it blindly, let's say. I think it's like a sense of behavior for the people. Because if you see someone from, as your peer, let's say, that's running to an objective that was defined by the company. And you are aligned with your values and goals. You will follow it.
Leandro Barreto:
So, this is good for both persons as human beings and also for the company because they show the proposal, they show what is the why we must be, for example, the first selling company for our product in the market, why, and then people who is working on it, they will take it as a personal objective. And this is when you make the connection between the company's objective and the people's objective because when the company grows with this why, with this north star, the people will grow together with you.
Robert OβFarrell:
I completely agree. I'm quite curious too from the opposite point of view. Do you think that employees are becoming more aware of understanding the company's why before they join the company? Because we've seen with the pandemic that a lot of companies are now moving to this remote recruitment. And so, the possibilities for employees to work for a much broader range of companies now have increased. And do you think that employees are now finding better wire alignment when they're looking for new jobs because they do have a broader pool to play in per se?
Leandro Barreto:
Absolutely. Absolutely. I think that's why Glassdoor is so popular. So, when you are invited for a meeting or for an interview, you can see everything from the company. Like from salary to feedbacks from the people who works there or is not working anymore. And then, you can see if there's a match. And this is quite funny because like 10 years ago, which is not so popular, we are blindly thinking to work, let's say, in a position like software development. So, I have to be a software developer. I have to be a...
Leandro Barreto:
So, it was more focused on the position instead of the purpose. And now we are seeing the opposite. Now, the people are looking for the purpose, what the company can help me achieve. And it's more like a win-win-
Robert OβFarrell:
Situation.
Leandro Barreto:
... situation let's say, situation. Exactly.
Robert OβFarrell:
Yeah, I couldn't agree more. And I think also a lot of people are really focused on how the company takes care of them as a person. They're very sensitive to the fact that they are committing their time to that company. So, there has to be that alignment around professional goals and personal goals. And I think that it's a great shift to see, to come back to the OKR side of things. I'm curious about what benefits do setting OKRs within an organization give or provide?
Leandro Barreto:
Yeah. I think OKRs, they are very, very simple. They do not require a specific knowledge to implement it. So, when you have the people committed and engaged to the goal and the why they want to achieve, then the implementation and using of OKRs became naturally. So, company can benefit because he's straight to the point. He's like, "Objective, it's the direction. And the key results are yes or no." So, keep it simple. That's the main benefit of the companies.
Robert OβFarrell:
Yeah. I love that. The fact that there's no gray area. You either succeed or you don't, and there's a lot of clarity around that as well.
Leandro Barreto:
Exactly.
Robert OβFarrell:
I think that with that aspect of OKRs, in your experience, have you seen OKRs set that tend to stretch the team further than they normally would be stretched in terms of what they attempt to achieve than companies that don't set OKRs from your experience?
Leandro Barreto:
Yes, but I think it matters on what the company, what's the culture of the company, because I have seen companies that is setting OKRS in the good way, but I have seen companies that is setting OKRS because it's fancy. When it's fancy, you don't have a clear objective. You don't have a clear vision. You don't have the right people. And then, it's very tricky and you will never achieve what you are proposing.
Robert OβFarrell:
I'm curious to dig into that a bit more to get your insight on that. Because as somebody who would come into a company that might be setting OKRs, how would you determine that the OKRs are probably not as clearly defined or that they're implementing a process that don't necessarily have the depth or the belief in doing? So, how would somebody come in and determine that?
Leandro Barreto:
Good question. Good question. So, the idea to have a objective is like to have something that can be... How can I say that, can provide you like a, not a fear, but it's going to be like, provides you a direction for, but the people who sees it, they think like, "Hey, this is quite hard to achieve I think." So, one example for Google, for example. So, Google in 2008, they tend to launch the Google Chrome. And as I remember, the first year was like, "Hey, this is the objective." Like, "Hey, we want to launch the best browser in the world." And the key result is the number of users because the users will tell you if the browser is good or not.
Leandro Barreto:
In the first year, they didn't achieve the key result. But the second year, they rise at the bar again, like, "Hey, now we are much than double the objective." And the second year, they still didn't achieve it. But it was very, very close to it. And the third year, they pass it. So, keep in mind that the objectives must be something that seems like a challenge, a huge challenge, but at the same time, it's very inspirational.
Robert OβFarrell:
Inspirational.
Leandro Barreto:
Inspirational. Thank you so much. For those who are working on it. So, I think this is most of the point.
Robert OβFarrell:
Yes. And what do you see as some of the pitfalls when setting OKRs for an organization?
Leandro Barreto:
Awesome. Awesome. So, the pitfalls from my perspective, there are some common mistakes when implementing OKR. So, for example, as I said, not having a clear vision of the goal, so people cannot engage. And especially when you have senior engineers because they don't want to work in something that don't bring purpose for them. Right? So, this is the first one, for example. The second one could be like a system that supports the monitoring of the results. So, you cannot follow up, which is quite important to keep following it if you are, we are close to achieve it. Yes or no? So, a good point.
Leandro Barreto:
And one thing that seems quite strange, but it's very, very common in the market is that your product is not finished yet. One personal example that I faced not quite recently, but do you play video games?
Robert OβFarrell:
When I get the time. I have two young boys, so I get very little time to do that these days. But yeah, I do.
Leandro Barreto:
Yeah. I love doing, I don't have also time, but when I have a litle bit of time, I can spend. So, this little time I try to spend in the best game that I found in the market. And here is the point because some years ago, there was a game that was released and before released, there was several gaming platforms, new sites, and et cetera, that was telling us that, "Here is the game challen... no, the game changing for the gaming market, because it's going to be very good. The marketing for this game was really, really good. And the game was like highest expectations for that. It was always in the top. "Hey, you have to play this because it's going to be very great. You are going to be having a great experience on that."
Leandro Barreto:
And the funny thing is that after they launch it, a few hours later, I notice some YouTubers who start testing the game. They began to post videos about so much bugs that they are facing. And within a week, the game had to stop selling because that was a disaster.
Robert OβFarrell:
Yeah.
Leandro Barreto:
And... Yeah.
Robert OβFarrell:
I was just going to say, I can think of a few games that come to mind that fit that criteria.
Leandro Barreto:
Yeah. Probably we are thinking the same, but I can say it, so.
Robert OβFarrell:
Yeah. Yeah. Do you find that people get OKRs and KPIs confused within an organization? Or have you ever come across any examples of that, where people misunderstand the purpose of between the two of them?
Leandro Barreto:
Yes. One thing that came up to my mind is the key result is a simple measure to understand if you are going in the right direction to your objective or not, but KPIs is it's more a performance index for performing for your team. For example, if they are performing in a good way, if we have the right resources for delivering something. And so, I think this is mainly the difference is the KPI, it's a measure for you to, maybe to bonus, to create a bonus for your team or et cetera. And the KR must be not linked to bonus or salary, et cetera. Must be like a direction. Something that, yes, we are achieving it or not. Or if not, what we have to do to correct the direction.
Robert OβFarrell:
Yeah. Fantastic. So, coming around to Agile, I'm curious about this marrying of the two, of OKRs and Agile together. How can we combine Agile and OKRs in your experience and your understanding to achieve results that drive high performance?
Leandro Barreto:
Awesome. So, as the Agile manifesto says, "People over process," so I believe whenever you maintain a fail-safe environment along with a good leadership, you can get the most of your team. So, connecting what I said earlier regarding the Ikigai and when you have a good leader, for example, in a safe environment and colleagues or peers who shares the same values and goals as you, then you can extract maximum efficiency because high-efficiency teams are teams that are focused and committed with the company results, and that will achieve great business results. Sorry.
Robert OβFarrell:
I also love that aspect with the OKRs, with that clear definition, too, that Agile, that processes is that sprint by sprint activity where you're going back and you're looping around and looking at the results of that sprint and going back to the customer and getting customer feedback and that real alignment around what you're trying to achieve as well, to give you that clarity of focus that when you are going through that sprint process, you're coming back and saying, "Okay, are we acting on the initiatives that have come out of these key results that contribute to that OKR?"
Leandro Barreto:
Exactly. And also, adding to that, that's why we have the goal for the sprint, right? So, we have the direction for the sprint. So, every sprint you can measure if you are achieving this goal or not.
Robert OβFarrell:
And I love it as a mechanism, too, to link back to that, that why piece to really give a clarity around why, which I think a lot of software development sometimes doesn't focus as much as they can on. So, I'm curious, so how can Ikigai mix into this? So, we've talked about that at the start and we talked about the components of it and it was a great framework about understanding a purpose, but how can we use that to achieve better results and stay motivated as a team?
Leandro Barreto:
Great question and also quite difficult. But yeah, I believe there are two thin lines that eventually met in the future. For example, the first one is like the individual as a person. So, how he seems himself in, within the organization and how can benefit, how this relationship can benefit from this win-win relationship. And also, the second one is like the individual as a professional. So, based on the skills that he already has. How can he help the company achieve the results more efficiently?
Leandro Barreto:
So, in a given timeline, these two lines will cross and then you will be able to extract excellent results because you will have a person with excellent internal knowledge, internal as a person, and also engaged with the companies is seeking as a greater objective, as a north star, and also helping your peers to grow all together.
Leandro Barreto:
And I think this is quite like a smile. When you smile at someone unconsciously, you make the other people smile too. So, when you have someone who is genuinely working with a proposal, that person will contaminate other in a good way. And then, you have a continuous string of people delivering consistent results. And I think this is the most important.
Robert OβFarrell:
Have you experienced that yourself where you see someone working with purpose and contaminate or infect how you... infect is again, not a great word, but inspired is probably the best word there, inspired the people around them to work in a similar fashion. Has that something that you've witnessed yourself?
Leandro Barreto:
Yes, yes. I remember back in the company that I was working in Brazil, that was my first day. I was like, "Hmm, there's something strange here," because everyone is so passionate on delivering their best results for their customer, that this thought influenced me in a positive way to start being like hungry for good results, not only for the company but for me as an individual, as someone who have to learn and teach others. And nowadays, I see these companies, it's achieving a great results with a great leader because even if we have a good team, we have to get someone who is a servant leader, who you can follow and maybe follow blindly in a good way. But yeah, I experience it.
Robert OβFarrell:
That's fantastic. But I'm interested, is there anything that you wanted to talk about personally with regards to either of those three topics or even outside of that, that has been inspirational, I think, in your professional development, in your personal life?
Leandro Barreto:
Yeah, absolutely. Absolutely. I think Leandro five years ago was totally different person. And when I started looking, not only by myself inside me, but also outside and the opportunities that the world can give me and how can I serve back this, or how can I provide this back to the world? This is very funny because good things start to happen. For example, I never imagined to be working here in Amsterdam. And now, I'm here in Amsterdam, working in a great company with great people, delivering such great results, which is giving me a lot of knowledge to keep learning and keep the wheel turning on, keep the cycle.
Leandro Barreto:
And I think today, like performing the best Leandro's version ever, maybe tomorrow, a little bit more, and I can provide this knowledge to other person and I can also learn from other persons, from other people. And that's very exciting. I think that's what motivates me to wake up in the morning, do my sport things like running and jujitsu, and then let's do the work.
Robert OβFarrell:
That's fantastic. I love that, that reflection on the past five years, how far you've come. It sounds like you've had a lot of inspiration from a number of different sources, but is there something in there that you think was key to that? Or was it just a general progression over that time?
Leandro Barreto:
Yeah. Yeah. Actually, I tried to focus on people who have positive influence on others. So, I try to be more not equal because if you are equal, so you are the same person, so it doesn't provide value to the others, but try to be quite different in your own way. So, yeah, basically, that's what motivates me to get different sources of references and trying to be the best version of myself.
Robert OβFarrell:
That's fantastic. I love this mix of the philosophical, which is for me, the Ikigai, and the concrete, well, not concrete, but the workflow aspect of the Agile side of things coming together. Have you traditionally worked in Agile methodologies or did you transition between that may be starting, because if you're from the 2000s, so you probably touched on Waterfall at some point in the past and then came into Agile. Was that your professional progression over that time?
Leandro Barreto:
Yeah. Yeah. Actually, I worked a lot with the Waterfall methodology in 2008, when I was introduced to the Agile methodology with Scrum... no, actually 2009, then I saw. "Hey, this is very, very interesting." Let's learn more about it. And then, during this time, I keep working both with the Waterfall methodology and the Agile methodology. And the more I work it with the Waterfall, the more value I saw in the [inaudible 00:54:24]-
Robert OβFarrell:
In Agile. Yeah.
Leandro Barreto:
Yeah. And that was quite fantastic because then I also learn about SAFe and how to scale it, and yeah.
Robert OβFarrell:
I'm quite curious, like because we had a similar path in that regard and I reflect on where we are with OKRs and Agile, and it's interesting that Agile brought us closer to our customer and we speak to our customer on a more regular basis, which I thought was a massive win over Waterfall where you might have months and months of development, and you've got a requirement that you're trying to put into code, and then suddenly, you have this big delivery and that's when you talk to the customer. And usually, the customer comes back and says, "We want all these things changed." And it's a real pain.
Robert OβFarrell:
Agile was instrumental in that, but then going up from there and putting that layer of why on top of that, which I think is, again, one of those big fundamental shifts on how we focus on what we are doing. Do you see anything emerging from your experience, your professional experience that is tackling another key challenge with regards to, I guess, how we work and how we deliver value?
Leandro Barreto:
Yes. And for example, the customer, they want to see value on what is going to be delivered. They don't want to spend six months to wait something to be delivered. So, I think that's why cloud start being so popular, like SaaS companies, because when you are working on something that is on cloud, for example, you always have the last version. And no matter the day or the hour of the day, there will come new features. And usually, it's transparent for you. And internally from the engineering perspective, the more you deliver, the more quickly you can correct and the more you can understand the market.
Leandro Barreto:
And also, that's why some strategies, some release strategies came up so popular like Canary release. So, you deliver a few things to a particular person, and then you can test it. And if they provides you good or bad feedback, you have time to correct it. So, that's why it became so popular. So, I think during this time from now on, we must see a lot of SaaS companies starting to growing because things are in real life now, real time now, so I think it's natural.
Leandro Barreto:
By the way, there's a good strategy that was implemented by Spot 5 if I'm not mistaken that was like, but this is more for engineering perspective. They have some robots that keeps doing bad things to the servers.
Robert OβFarrell:
Oh, that's the Chaos Monkey.
Leandro Barreto:
The Chaos Monkey.
Robert OβFarrell:
That was Netflix. Yeah. Yeah.
Leandro Barreto:
Netflix, yeah.
Robert OβFarrell:
Netflix. And it would take down bits of their infrastructure and break things. Yeah, yeah.
Leandro Barreto:
Exactly. It's quite hard to see in some companies, but I think this has become to be more popular during the next couple of months or years, because it will teach the engineers how to deal with that because no one wants to stay working in the weekend. You stay with your family.
Robert OβFarrell:
Yeah. I completely agree. I remember when I first heard about the idea of the Chaos Monkey, that it shocked me that someone would inflict that upon their business and upon, I guess, their systems, but then it only takes a production incident to realize that if you had something like that, that you would've built in some provision should that eventuate. And I think that there's a lot of wisdom to it. And so, I absolutely love the idea. I love this, what you were saying about real-time delivery of value to customers.
Robert OβFarrell:
And I think back to how Agile has really been fundamental in pioneering that, well, not pioneering it per se, but with the release cadence that you get from one to two-week sprints, you're putting yourself in a position where you are delivering more often. And you mentioned Canary deploys, I think within that. Is there any other deployment strategies that you've come across that also support, I guess, that immediate delivery of value to customers?
Leandro Barreto:
Yes. There is another strategy which is called the Blue-Green release, but the difference between it is like the Canary release, you deliver something in the small portions, but the Blue-Green, you, like a switch that you turn on and off.
Robert OβFarrell:
Yes. Yes. Right.
Leandro Barreto:
Yeah, you can test it. You can deliver new version of your environment or your tool, and then everyone can use it. And if something goes failed, then you have the plan B, where you can just turn on and off, and then you can rearrange the traffic to your tool. But this is very technical.
Robert OβFarrell:
Yeah. Very interesting to me, but we might lose a few of our podcast listeners. One last question from me, just within your current professional engagement, were they implementing OKRs before you joined the company? Or was that something that you've seen introduced over that period of time?
Leandro Barreto:
From my current company, they are currently working with OKRs, so I didn't participate and implemented it. So, I'm just more focused on helping the teams in implementing the KRs. There were some companies that I worked in the PEs that I helped to build it, and also to build not only the objective but also the KRs. And the objective, it's you spend so much time because you have to understand where the company wants to be in the future.
Leandro Barreto:
So, you have to know inside what we have, what we can improve, where we can improve, and then we can base it on that, base it on the objective. We can build up to four key results to be more precise in achieving this. Yeah. But it's quite challenging, but at the same time, very exciting.
Robert OβFarrell:
I think that was going to be my question in your experience in seeing a company go from not doing that to then implementing it, what were the real challenges in doing that? And how long did you see that process take before they really got good at doing that? Because it is not only setting the meaningful objectives and obviously measurable key results but also then getting the alignment from the teams around that. What were the big challenges there and how long did you see that process take?
Leandro Barreto:
Yeah. I think it depends from company to company. I remember back in Brazil, I had to work with companies that spent months on deciding, but at the same time, I remember my own company took three months to start implementing it. So, I think it depends on the commitment of the people who is responsible for this objective. So, yeah, depends on the maturity also of the company, the people who is working, and yeah. Because the OKRs are quite old, but at the same time are quite new for people, for the companies. Right? So, this is like very challenging. And how do you balance it?
Leandro Barreto:
There are some people who doesn't know how to set the correct objective. And then, we came up with the same thing that we are discussing earlier. Like if you don't know where you're going to go, if the objective is not clear enough, no matter if you have good people or bad people, the people will not see value on that.
Robert OβFarrell:
Yeah. And you won't get your alignment because people don't either understand or don't believe in the objective.
Leandro Barreto:
Exactly.
Robert OβFarrell:
That's fantastic insight, Leandro. And I really appreciate your time today. Again, is there anything that you'd like to chat about before we wrap it up? I'm just conscious that we have been chatting for about an hour now and gone off script a little bit too.
Leandro Barreto:
Yeah, absolutely. Absolutely. No, actually I'd like to thank you, Rob. Thank you, Agile team, everyone. I don't want to spend much time talking also. It was a pleasure and thanks for invite again. And I hope we can think good things in the future. Like, "Hey, I hope I can provide good insights on this."
Robert OβFarrell:
That's fantastic. You certainly have. I've learned a fair bit today as well. So, I'll be going back to revisit some of the talking points from this chat. So, thank you very much again for your time, Leandro. I really appreciate it. And, yes, have a great day. It's kicking off for you and it's ending for us. So, yeah, really appreciate it, mate.
Leandro Barreto:
Thank you. Thank you. I really appreciate it too. Thanks again. See you. Have a great day.
Robert OβFarrell:
You too. Cheers.
Leandro Barreto:
Cheers.
β
β
- Podcast
Easy Agile Podcast Ep.12 Observations on Observability
On this episode of The Easy Agile Podcast, tune in to hear developers Angad, Jared, Jess and Jordan, as they share their thoughts on observability. Β
Wollongong has a thriving and supportive tech community and in this episode we have brought together some of our locally based Developers from Siligong Valley for a round table chat on all things observability.
π₯ What is observability?
π₯ How can you improve observability?
π₯ What's the end goal?β
β
β
"This was a great episode to be a part of! Jess and Jordan shared some really interesting points on the newest tech buzzword - observability""
Be sure to subscribe, enjoy the episode π§
β
β
β
Transcript
Jared Kells:
Welcome everybody to the Easy Agile podcast. My name's Jared Kells, and I'm a developer here at Easy Agile. Before we begin, Easy Agile would like to acknowledge the traditional custodians of the land from which we broadcast today, the Wodiwodi people of the Dharawal nation, and pay our respects to elders past, present and emerging, and extend that same respect to any aboriginal people listening with us today.
Jared Kells:
So today's podcast is a bit of a technical one. It says on my run sheet here that we're here to talk about some hot topics for engineers in the IT sector. How exciting that we've got a couple of primarily front end engineers and Angad and I are going to share some front end technical stuff and Jess and Jordan are going to be talking a bit about observability. So we'll start by introductions. So I'll pass it over to Jess.
Jess Belliveau:
Cool. Thanks Jared. Thanks for having me one as well. So yeah, my name's Jess Belliveau. I work for Apptio as an infrastructure engineer. Yeah, Jordan?
Jordan Simonovski:
I'm Jordan Simonovski. I work as a systems engineer in the observability team at Atlassian. I'm a bit of a jack of all trades, tech wise. But yeah, working on building out some pretty beefy systems to handle all of our data at Atlassian at the moment. So, that's fun.
Angad Sethi:
Hello everyone. I'm Angad. I'm working for Easy Agile as a software dev. Nothing fancy like you guys.
Jared Kells:
Nothing fancy!
Jess Belliveau:
Don't sell yourself short.
Jared Kells:
Yeah, I'll say. Yeah, so my name's Jared, and yeah, senior developer at Easy Agile, working on our apps. So mainly, I work on programs and road maps. And yeah, they're front end JavaScript heavy apps. So that's where our experience is. I've heard about this thing called observability, which I think is just logs and stuff, right?
Jess Belliveau:
Yeah, yeah. That's it, we'll wrap up!
Jared Kells:
Podcast over! Tell us about observability.
Jess Belliveau:
Yeah okay, I'll, yeah. Well, I thought first I'd do a little thing of why observability, why we talk about this and sort of for people listening, how we got here. We had a little chat before we started recording to try and feel out something that might interest a broader audience that maybe people don't know a lot about. And there's a lot of movements in the broad IT scope, I guess, that you could talk about. There's so many different things now that are just blowing up. Observability is something that's been a hot topic for a couple of years now. And it's something that's a core part of my job and Jordan's job as well. So it's something easy for us to talk about and it's something that you can give an introduction to without getting too technical. So we don't want to get down. This is something that you can go really deep into the weeds, so we picked it as something that hopefully we can explain to you both at a level that might interest the people at home listening as well.
Jess Belliveau:
Jordan and I figured out these four bullet points that we wanted to cover, and maybe I can do the little overview of that, and then I can make Jordan cover the first bullet point, just throw him straight under the bus.
Jordan Simonovski:
Okay!
Jess Belliveau:
So we thought we'd try and describe to you, first of all, what is observability. Because that's a pretty, the term doesn't give you much of what it is. It gives you a little hint, but it'll be good to base line set what are we talking about when we say what is observability. And then why would a development team want observability? Why would a company want observability? Sort of high level, what sort of benefits you get out of it and who may need it, which is a big thing. You can get caught up in these industry hot buzz words and commit to stuff that you might not need, or that sort of stuff.
Jared Kells:
Yep.
Jordan Simonovski:
Yep.
Jess Belliveau:
We thought we'd talk about some easy wins that you get with observability. So some of the real basic stuff you can try and get, and what advantages you get from it. And then we just thought because we're no going to try and get too deep, we could just give a few pointers to some websites and some YouTube talks for further reading that people want to do, and go from there. So yeah, Jordan you want to-
Jared Kells:
Sounds good.
Jess Belliveau:
Yeah. I hopefully, hopefully. We'll see how this goes! And I guess if you guys have questions as well, that's something we should, if there's stuff that you think we don't cover or that you want to know more, ask away.
Jordan Simonovski:
I guess to start with observability, it's a topic I get really excited about, because as someone that's been involved in the dev ops and SRE space for so long, observability's come along and promises to close the loop or close a feedback loop on software delivery. And it feels like it's something we don't really have at the moment. And I get that observability maybe sounds new and shiny, but I think the term itself exists to maybe differentiate itself from what's currently out there. A lot of us working in tech know about monitoring and the loading and things like that. And I think they serve their own purpose and they're not in any way obsolete either. Things like traditional monitoring tools. But observability's come along as a way to understand, I think, the overwhelmingly complex systems that we're building at the moment. A lot of companies are probably moving towards some kind of complicated distributed systems architecture, microservices, other buzz words.
Jordan Simonovski:
But even for things like a traditional kind of monolith. Observability really serves to help us ask new questions from our systems. So the way it tends to get explained is monitoring exits for our known unknowns. With seniority comes the ability to predict, almost, in what way your systems will fail. So you'll know. The longer you're in the industry, you know this, like a Java server fails in x, y, z amount of ways, so we should probably monitor our JVM heap, or whatever it is.
Jared Kells:
I was going to say that!
Jordan Simonovski:
I'll try not to get too much into-
Jared Kells:
Runs out of memory!
Jordan Simonovski:
Yeah. So that's something that you're expecting to fail at some point. And that's something that you can consider a known unknown. But then, the promise of observability is that we should be shipping enough data to be able to ask new questions. So the way it tends to get talked about, you see, it's an unknown unknown of our system, that we want to find out about and ask new questions from. And that's where I think observability gets introduced, to answer these questions. Is that a good enough answer? You want me to go any further into detail about this stuff? I can talk all day about this.
Jared Kells:
Is it like a [crosstalk 00:08:05]. So just to repeat it back to you, see if I've understood. Is it kind of like if I've got a, traditionally with a Java app, I might log memories. It's because I know JVM's run out of memory and that's a thing that I monitor, but observability is more broad, like going almost over the top with what you monitor and log so that you can-
Jordan Simonovski:
Yeah. And I wouldn't necessarily say it's going over the top. I think it's maybe adding a bit more context to your data. So if any of you have worked with traces before, observability is very similar to the way traces work and just builds on top of the premise of traces, I guess. So you're creating these events, and these events are different transactions that could be happening in your applications, usually submitting some kind of request. And with that request, you can add a whole bunch of context to it. You can add which server this might be running on, which time zone. All of these additional and all the exciters. You can throw in user agency into there if you want to. The idea of observability is that you're not necessarily constrained by high cardinality data. High cardinality data being data sets that can change quite largely, in terms of the kinds of data they represent, or the combinations of data sets that you could have.
Jordan Simonovski:
So if you want shipping metrics on something, on a per user basis and you want to look at how different users are affected by things, that would be considered a high cardinality metric. And a lot of the time it's not something that traditional monitoring companies or metric providers can really give you as a service. That's where you'll start paying insanely huge bills on things like Datadog or whatever it is, because they're now being considered new metrics. Whereas observability, we try and store our data and query it in a way that we can store pretty vast data sets and say, "Cool. We have errors coming from these kinds of users." And you can start to build up correlations on certain things there. You can find out that users from a particular time zone or a particular device would only be experiencing that error. And from there, you can start building up, I think, better ways of understanding how a particular change might have broken things. Or some particular edge cases that you otherwise couldn't pick up on with something like CPU or memory monitoring.
Angad Sethi:
Would it be fair to say-
Jared Kells:
Yeah. It's [crosstalk 00:11:02].
Angad Sethi:
Oh, sorry Jared.
Jared Kells:
No you can-
Angad Sethi:
Would it be fair to say that, so, observability is basically a set of principles or a way to find the unknown unknowns?
Jordan Simonovski:
Yeah.
Angad Sethi:
Oh.
Jess Belliveau:
And better equip you to find, one of the things I find is a lot of people think, you get caught up in thinking observability is a thing that you can deploy and have and tick a box, but I like your choice of word of it being a set of principles or best practices. It's sort of giving you some guidance around these, having good logging coming out of your application. So structured logs. So you're always getting the same log format that you can look at. Tracing, which Jordan talked a little bit about. So giving you that ability to follow how a user is interacting with all the different microservices and possibly seeing where things are going wrong, and metrics as well. So the good thing with metrics is we're turning things a bit around and trying to make an application, instead of doing, and I don't want to get too technical, black box monitoring, where we're on the outside, trying to peer in with probes and checks like that. But the idea with metrics is the application is actually emitting these metrics to inform us what state it is in, thereby making it more observable.
Jess Belliveau:
Yeah, I like your choice of words there, Angad, that it's like these practices, this sort of guide of where to go, which probably leads into this next point of why would a team want to implement it. If you want to start again, Jordan?
Jordan Simonovski:
Yeah, I can start. And I'll give you a bit more time to speak as well, Jess in this one. I won't rant as much.
Jess Belliveau:
Oh, I didn't sign up for that!
Jordan Simonovski:
I think why teams would want it is because, it really depends on your organization and, I guess, the size of the teams you're working in. Most of the time, I would probably say you don't want to build observability yourself in house. It is something that you can, observability capabilities themselves, you won't achieve it just by buying a thing, like you can't buy dev ops, you can't buy Agile, you can't buy observability either.
Jared Kells:
Hang on, hang on. It says on my run sheet to promote Easy Agile, so that sounds like a good segue-
Jess Belliveau:
Unless you want to buy it. If you do want to buy Agile, the [crosstalk 00:13:55] in the marketplace.
Jared Kells:
Yeah, sorry, sorry, yeah! Go on.
Jordan Simonovski:
You can buy tools that make your life a lot easier, and there are a lot of things out there already which do stuff for people and do surface really interesting data that people might want to look at. I think there are a couple of start ups like LightStep and Honeycomb, which give you a really intuitive way of understanding your data in production. But why you would need this kind of stuff is that you want to know the state of your systems at any given point in time, and to build, I guess, good operational hygiene and good production excellence, I guess as Liz Fong-Jones would put it, is you need to be able to close that feedback loop. We have a whole bunch of tools already. So we have CICD systems in place. We have feature flags now, which help us, I guess, decouple deployments from releases. You can deploy code without actually releasing code, and you can actually give that power to your PM's now if you want to, with feature flags, which is great.
Jordan Simonovski:
But what you can also do now is completely close this loop, and as you're deploying an application, you can say, "I want to canary this deployment. I want to deploy this to 10% of my users, maybe users who are opted in for Beta releases or something of our application, and you can actually look at how that's performing before you release it to a wider audience. So it does make deployments a lot safer. It does give you a better understanding of how you're affecting users as well. And there are a whole bunch of tools that you can use to determine this stuff as well. So if you're looking at how a lot of companies are doing SRE at the moment, or understanding what reliable looks like for their applications, you have things like SLO's in place as well. And SLO's-
Jared Kells:
What's an SLO?
Jordan Simonovski:
They're all tied to user experiences. So you're saying, "Can my user perform this particular interaction?" And if you can effectively measure that and know how users are being affected by the changes you're making, you can easily make decisions around whether or not you continue shipping features or if you drop everything and work on reliability to make sure your users aren't affected. So it's this very user centric approach to doing things. I think in terms of closing the loop, observability gives us that data to say, "Yes, this is how users are being affected. This is how, I guess the 99th percentile of our users are fine, but we have 1% who are having adverse issues with our application." And you can really pinpoint stuff from there and say, "Cool. Users with this particular browser or this particular, or where we've deployed this app to," let's say if you have a global deployment of some kind, you've deployed to an island first, because you don't really care what happens to them. You can say, "Oh, we've actually broken stuff for them." And you can roll it back before you impact 100% of your users.
Jared Kells:
Yeah. I liked what you said about the test. I forgot the acronym, but actually testing the end user behavior. That's kind of exciting to me, because we have all these metrics that are a bit useless. They're cool, "Oh, it's using 1% CPU like it always is, now I don't really care," but can a user open up the app and drag an issue around? It's like-
Jess Belliveau:
Yeah, that's a really great example, right?
Jared Kells:
That's what I really care about.
Jess Belliveau:
The 1% CPU thing, you could look at a CPU usage graph and see a deployment, and the CPU usage doesn't change. Is everything healthy or not? You don't know, whereas if you're getting that deeper level info of the user interactions, you could be using 1% CPU to serve HTTP500 errors to the 80% of the customer base, sort of thing.
Angad Sethi:
How do you do that? The SLO's bit, how do you know a user can log in and drag an issue?
Jordan Simonovski:
Yeah. I think that would come with good instrumenting-
Angad Sethi:
Good question?
Jordan Simonovski:
Yeah, it comes down to actually keeping observability in mind when you are developing new features, the same way you would think about logging a particular thing in your code as you're writing, or writing test for your code, as you're writing code as well. You want to think about how you can instrument something and how you can understand how this particular feature is working in production. Because I think as a lot of Agile and dev ops principles are telling us now is that we do want our applications in production. And as developers, our responsibilities don't end when we deploy something. Our responsibility as a developer ends when we've provided value to the business. And you need a way of understanding that you're actually doing that. And that's where, I guess, you do nee do think about observability with a lot of this stuff, and actually measuring your success metrics. So if you do know that your application is successful if your user can log in and drag stuff around, then that's exactly what you want to measure.
Jared Kells:
I think that we have to build-
Jordan Simonovski:
Yeah?
Jared Kells:
Oh, sorry Jordan.
Jordan Simonovski:
No, you go.
Jared Kells:
I was just going to say we have to build our apps with integration testing in mind already. So doing browser based tests around new features. So it would be about building features with that and the same thing in mind but for testing and production.
Jess Belliveau:
Yeah and the actual how, the actual writing code part, there's this really great project, the open telemetry project, which provides all these sort of API's and SDK's that developers can consume, and it's vendor agnostic. So when you talk about the how, like, "How do I do this? How do I instrument things?" Or, "How do I emit metrics?" They provide all these helpful libraries and includes that you can have, because the last thing you want to do is have to roll this custom solution, because you're then just adding to your technical debt. You're trying to make things easier, but you're then relying on, "Well I need to keep Jared Kells employed, because he wrote our log in engine and no one else knows how it works.
Jess Belliveau:
And then the other thing that comes to mind with something like open telemetry as well, and we talked a bit about Datadog. So Datadog is a SaaS vendor that specializes in observability. And you would push your metrics and your logs and your traces to them and they give you a UI to display. If you choose something that's vendor agnostic, let's just use the example of Easy Agile. Let's say they start Datadog and then in six months time, we don't want to use Datadog anymore, we want to use SignalFx or whatever the Splunk one is now.
Jordan Simonovski:
I think NorthX.
Jess Belliveau:
Yeah. You can change your end point, push your same metrics and all that sort of stuff, maybe with a few little tweaks, but the idea is you don't want to tie in to a single thing.
Jordan Simonovski:
Your data structures remain the same.
Jess Belliveau:
Yeah. So that you could almost do it seamlessly without the developers knowing. There's even companies in the past that I think have pushed to multiple vendors. So you could be consuming vendor A and then you want to do a proof of concept with vendor B to see what the experience is like and you just push your data there as well.
Jared Kells:
Yeah. I think our coupling to Datadog will be I all the dashboards and stuff that we've made. It's not so much the data.
Jess Belliveau:
Yeah. That's sort of the big up sell, right. It's how you interact. That's where they want to get their hooks in, is making it easier for you to interpret that data and manipulate it to meet your needs and that sort of stuff.
Jordan Simonovski:
Observability suggests dashboards, right?
Jess Belliveau:
Yeah, perhaps. You used this term as well, Jordan, "production excellence." And when we talk about who needs observability, I was thinking a bit about that while you were talking. And for me, production excellence, or in Apptio we call it production readiness, operational readiness and that sort of stuff is like we want to deploy something to production like what sort of best practices do we want to have in place before we do that? And I think observability is a real great idea, because it's helping you in the future. You don't know what problems you're going to have down the line, but you're equipping your teams to be able to respond to those problems easily. Whereas, we've all probably been there, we've deployed code of production and we have no observability, we have a huge outage. What went wrong? Well, no one knows, but we know this is the fix, and it's hard to learn from that, or you have to learn from that I guess, and protect the user against future stuff, yeah.
Jess Belliveau:
When I think easy wins for observability, the first thing that really comes to mind is this whole idea of structured logging, which is really this idea that your application is you're logging, first of all. Quite important as a baseline starting point, but then you have a structured log format which lets you programmatically pass the logs as well. If you go back in time, maybe logging just looked like plain text with a line, with a timestamp, an error message. Whatever the developer decided to write to the standard out, or to the error file or something like that. Now I think there's a general move to having JSON, an actual formatted blob with that known structure so you can look into it. Tracing's probably not an easy win. That's a little bit harder. You can implement it with open telemetry and libraries and stuff. Requires a bit more understanding of your code base, I guess, and where you want tracing to fire, and that sort of stuff, parsing context through, things like that.
Jordan Simonovski:
I think Atlassian, when you probably just want to know that everything is okay. At a fairly superficial level. Maybe you just want to do some kind of up time on a trend. And then as, I guess, your code might get more complex or your product gets a bit more complex, you can start adding things in there. But I think actually knowing or surfacing the things you know might break. Those would probably be your quickest wins.
Jess Belliveau:
Well, let's mention some things for further reading. If you want to go get the whole picture of the whole, real observability started to get a lot of movement out of the Google SRE book from a few years ago. The Google SRE stuff covers the whole gamut of their soak reliability engineering practice, and observability is a portion of that, there's some great chapters on that. O'Reilly has an observability book, I think, just dedicated to observability now.
Jordan Simonovski:
I think that's still in early release, if people want to google chapters.
Jess Belliveau:
The open telemetry stuff, we'll drop a link to that I think that's really handy to know.
Angad Sethi:
From [inaudible 00:26:12], which is my perspective, as a developer, say I wanted to introduce cornflake use Datadog at Easy Agile. Not very familiar, I'm not very comfortable with it. I know how to navigate, but what's a quick way for me to get started on introducing observability? Sorry to lock my direct job or at my workplace.
Jordan Simonovski:
I would lean, I could be biased here. Jess correct me or give your opinion on this, I would lean heavily towards SLO's for this. And you can have a quick read in the SRE-
Jess Belliveau:
What does SLO stand for, Jordan?
Jordan Simonovski:
Okay, sorry. Buzz words! SLO is a service level objective, not to be confused with service level agreement. An agreement itself is contractual and you can pay people money if you do breach those. An SLO is something you set in your team and you have a target of reliability, because we are getting to the point where we understand that all systems at any point in time are in some kind of degraded state. And yeah, reliability isn't necessarily binary, it's not unreliable or reliable. Most of the time, it's mostly reliable and this gives us a better shared language, I guess. And you can have a read in the SRE handbook by Google, which is free online, which gives you a pretty good understanding of Datadog.
Jordan Simonovski:
I think the last time I used it had a SLO offering. But I think like I was mentioning earlier, you set an SLO on particular functionalities or features of your application. You're saying, "My user can do this 99% of the time," or whatever other reliability target you might want to set. I wouldn't recommend five nines of reliability. You'll probably burn yourself out trying to get there. And you have this target set for yourself. And you know exactly what you're measuring, you're measuring particular types of functionality. And you know when you do breach these, users are being affected. And that's where you can actually start thinking about observability. You can think about, "What other features are we implementing that we can start to measure?" Or, "What user facing things are we implementing that we can start to measure?"
Jordan Simonovski:
Other things you could probably look at are, I think they're all covered in the book anyway, data freshness in a way. You want to make sure the data users are being displayed is relatively fresh. You don't want them looking at stale data, so you can look at measuring things like that as well. But you can pretty much break it down into most functionalities of a website. It's no longer like a ping check, that you're just saying, "Yes, HTTP, okay. My application is fine." You're saying, "My users are actually being affected by things not working." And you can start measuring things from there. And that should give you a better understanding, or a better idea, at least, of where to start with what you want to measure and ow you want to measure it. That would be my opinion on where to get started with this if you do want to introduce it.
Jared Kells:
We're going to talk a little bit about state and how with some of these, like our very front end heavy applications that we're building, so the applications we build just basically run inside the browser and the traditional state as you would think about it, is just pulling a very simple API that writes some things into the database with some authentication, and that sort of stuff. So in terms of reliability of the services, it's really reliable. Those tiny API's just never have problems, because it's just so simple. And well, they've got plenty of monitoring around it. But all our state is actually, when you say, "Observe the state of the system," for the most part, that's state in a browser. And how do we get observability into that?
Jess Belliveau:
A big thing is really, there's not one thing fits all as well. When we talk about the SLO stuff as well, it's understanding what is important to not so much maybe your company but your team as well. If you're delivering this product, what's important to you specifically? So one SLO that might work for me at Apptio probably isn't going to work for Easy Agile. This is really pushing my knowledge, as well, of front end stuff, but when we say we want to observe the state as well, we don't necessarily mean specifically just the state. You could want to understand with each one of those API's when it's firing, what the request response time is for that API firing. So that might be an important metric. So you can start to see if one of those APIs is introducing latency, and so your user experience is degraded. Like, "Hey when we were on release three, when users were interacting with our service here, it would respond in this percentile latency. We've done a release and since then, now we're seeing it's now in this percentile. Have we degraded performance performance?" Users might not be complaining, but that could be something that the team then can look into, add to a sprint. Hey, I'm using Agile terms now. Watch out!
Jared Kells:
That's a really good example, Jess. Performance issues for us are typically not an API that's performing poorly. It's something in this very complicated front end application is not running in the same order as it used to, or there's some complex interaction we didn't think of, so it's requesting more data than expected. The APIs are returning. They're never slow, for the most part, but we have performance regressions that we may not know about without seeing them or investigating them. The observability is really at the individual user's browser level. That makes sense? I want to know how long did it take for this particular interaction to happen.
Jess Belliveau:
Yeah. I've never done that sort of side of things. As well, the other thing I guess, you could potentially be impacted in as well as then, you're dealing with end user manifestations as well. You could perceive-
Jared Kells:
Yeah sure.
Jess Belliveau:
... Greater performance on their laptop or something, or their ISP or that sort of stuff. It'd be really hard to make sure you're not getting noise from that sort of thing as well.
Jordan Simonovski:
Yeah. There are tools like Sentry, I guess, which do exist to give you a bit more of an understanding what's happening on your front end. The way Sentry tends to work with JavaScript, is you'll upload a minified map of your JS to Sentry, deploy your code and then if something does break or work in a fairly unexpected way, that tends to get surfaced with Sentry will tell you exactly which line this kind of stuff is happening on, and it's a really cool tool for that company stuff. I don't know if it'd give you the right type of insights, I think, in terms of performance or-
Jared Kells:
Yeah, we use a similar tool and it does work for crashes and that sort of thing. And on the observability front, we log actions like state mutations in side the front end, not the actual state change, but just labels that represent that you updated an issue summary or you clicked this button, that sort of thing, and we send those with our crash reports. And it's super helpful having that sort of observability. So I think I know what you guys are talking about. But I'm just [crosstalk 00:35:25], yeah.
Jess Belliveau:
Yeah, that's almost like, I guess, a form of tracing. For me and Jordan, when we talk about tracing, we might be thinking about 12 different microservices sitting in AWS that are all interacting, whereas you're more shifting that. That's sort of all stuff in the browser interacting and just having that history of this is what the user did and how they've ended up-
Jared Kells:
In that state.
Jess Belliveau:
In that state, yeah.
Jordan Simonovski:
I guess even if you don't have a lot of microservices, if you're talking about particular, like you're saying for the most part your API requests are fine but sometimes you have particularly large payloads-
Jared Kells:
We actually have to monitor, I don't know, maybe you can help with this, we actually should be monitoring maybe who we're integrating with. It's actually much more likely that we'll have a performance issue on a Xero API rather than... We don't see it, the browser sees it as well, which is-
Jordan Simonovski:
Yeah, and tracing does solve all of those regressions for you. Most tracing libraries, like if you're running Node apps or whatever on your backend. I can just tell you about Node, because I probably have the most experience writing Node stuff. You pretty much just drop in Didi trace, which is a Datadog library for tracing into your backend and your hook itself into all of, I think, the common libraries that you'll tend to work with, I think. Like if you're working for express or for a lot of just HADP libraries, as well as a few AWS services, it will kind of hook itself into that. And you can actually pinpoint. It will kind of show you on this pretty cool service map exactly which services you're interacting with and where you might be experiencing a regression. And I think traces do serve to surface that information, which is cool. So that could be something worth investigating.
Jess Belliveau:
It's funny. This is a little bit unrelated to observability, but you've just made me think a bit more about how you're saying you're reliant on third party providers as well. And something I think that's really important that sometimes gets missed is so many of us today are relying on third party providers, like AWS is a huge thing. A lot of people writing apps that require AWS services. And I think a lot of the time, people just assume AWS or Jira or whatever, is 100% up time, always available. And they don't write their code in such a way that deals with failures. And I think it's super important. So many times now I've seen people using the AWS API and they don't implement exponential back off. And so they're basically trying to hit the AWS API, it fails or they might get throttled, for example, and then they just go into a fail state and throw an error to the user. But you could potentially improve that user experience, have a retry mechanism automatically built in and that sort of stuff. It doesn't really tie into the observability thing, but it's something.
Jared Kells:
And the users don't care, right? No one cares if it's an AWS problem. It's your problem, right, your app is too slow.
Jess Belliveau:
Well, they're using your app. Exactly right. It reflects on you sort of thing, so it's in your interest to guard against an upstream failure, or at least inform the user when it's that case. Yeah.
Jared Kells:
Well, I think we're going to have to call it, this podcast, because it was an hour ago. We had instructed max 45 minutes.
Jess Belliveau:
We could just keep going. We might need a part two! Maybe we can request [cross talk 00:39:21].
Jared Kells:
Maybe! Yeah.
Jess Belliveau:
Or we'll just start our own podcast! Yeah.
Angad Sethi:
So what were your biggest learnings today, given it's been Angad and I are just learning about observability, Angad what was your biggest learning today about observability? My biggest learning was that observability does not equal Datadog. No, sorry! It was just very fascinating to learn about quantifying the known unknowns. I don't know if that's a good takeaway, but...
Jess Belliveau:
Any takeaway is a good takeaway! What about you, Jared?
Jared Kells:
I think, because I we were going to talk about state management, and part of it was how we have this ability, at the moment to, the way our front ends are architected, we can capture the state of the app and get a customer to send us their state, basically. And we can load it into our app and just see exactly how it was, just the way our state's designed. But what might be even cooler is to build maybe some observability into that front end for support. I'm thinking instead of just having, we have this button to send us out your support information that sends us a bunch of the state, but instead of console logging to the browser log, we could be console logging, logging in our front end somewhere that when they click, "send support information," our customers should be sending us the actions that they performed.
Jared Kells:
Like, "Hey there's a bug, send us your support information." It doesn't have to be a third party service collecting this observability stuff. We could just build into our... So that's what I'm thinking about.
Jess Belliveau:
Yeah, for sure. It'll probably be a lot less intrusive, as well, as some of the third party stuff that I've seen around.
Jared Kells:
Yeah. It's pretty hard with some of these integrations, especially if you're developing apps that get run behind a firewall.
Jess Belliveau:
Yeah
Jared Kells:
You can't just talk to some of these third parties. So yeah, it's cool though. It's really interesting.
Jess Belliveau:
Well, I hope someone out there listening has learned something, and Jordan and I will send some links through, and we can add them, hopefully, to the show notes or something so people can do some more reading and...
Jared Kells:
All thanks!
Jess Belliveau:
Thanks for having us, yeah.
Jared Kells:
Thanks all for your time, and thanks everybody for listening.
Jordan Simonovski:
Thanks everyone.
Angad Sethi:
That was [inaudible 00:41:55].
Jess Belliveau:
Tune in next week!
- Podcast
Easy Agile Podcast Ep.15 The Role of Business in Supporting Sustainability Initiatives with TietoEVRY
"It was amazing to talk with Ida and Ulrika from TietoEVRY, they are truly leading the way in sustainability" - Rebecca Griffith
Rebecca and Caitlin are talking with Ida and Ulrika from TietoEVRY, about big picture sustainability and the role of business in supporting sustainability initiatives.
π Implementing sustainability in daily business operations
π The role of technology in advancing sustainability
π Ensuring your sustainability & DEI report doesn't turn into a stagnant document
π Framing challenge in a way of opportunity
π Getting the whole team on boardAn important listen for everyone, enjoy!
π² Subscribe/Listen on your favourite podcasting app.
Transcript
Caitlin Mackie:
Hi, everyone. Welcome to the Easy Agile Podcast. I'm Caitlin, marketing coordinator at Easy Agile.
Rebecca Griffith:
And I'm Beck, team and operations assistant at Easy Agile, and we'll be your host for this episode. Before we begin, we'd like to acknowledge the traditional custodians of the land from which we broadcast today, the worthy, worthy people of the Tharawal nation and pay our respects to elders past, present and emerging. We extend that same respect to all aboriginal and Torres Strait Islanders people joining us today.
Caitlin Mackie:
Today, we're joined by Ida and Ulrika from TietoEVRY. Welcome. Thanks for joining us.
Ida Bohman Steenberg:
Thank you so much for having us.
Ulrika Lagerqvist Von Unge:
Thank you.
Rebecca Griffith:
It would be great if we could start with some introductions. Ida and Ulrika, could you tell our listeners a bit about yourselves and your role at TietoEVRY?
Ida Bohman Steenberg:
Yes, of course. I'm Ida and I'm heading up the sustainability team at TietoEVRY since four years back. And Ulrika?
Ulrika Lagerqvist Von Unge:
Yeah. I work within the sustainability team as a sustainability manager also here at TietoEVRY.
Rebecca Griffith:
Excellent. Thank you. Thanks for the introductions. Let's jump in. For our listeners who might not be familiar with TietoEVRY, can you give us a bit of an overview about what the company does?
Ida Bohman Steenberg:
Yes. Sure. We are a company based in the Nordics, like very, very far away from sunny Australia. We are a tech company. We provide different solutions. For instance, in software, cloud and infra and also business consulting. I think nowadays, we are the biggest tech provider in the Nordic, at least.
Caitlin Mackie:
Sustainability is a huge part of TietoEVRY. You really have a robust sustainability game plan and your strategy for 2023, which highlights your key priorities for ethical conduct, climate actions and creating an exciting place to work for your employees. Can you elaborate on the sustainability game plan for 2023?
Ida Bohman Steenberg:
Yeah, we would love to. The sustainability game plan is our long term plan that we created last year. We were actually two companies merging into one last year. We had different legacies. X Tieto were good at some things and X EVRY were good at some things, but of course, we had lots of challenges too. We had to sit down and really try to find out what should be our focus going forward and not only actually to build upon what we already have, but also look at the major challenges out there to see like, where do we want to be and what role do we want to have? We created a game plan that is two-folded. We have like the responsible operations that is the traditional sustainability work that you would find at any organization that takes sustainability seriously.
We have the ethical conduct where we have business, ethics, and the corruption, cyber security, privacy, human rights, responsible sourcing, for instance. Then, we have exciting place to work, which is more like HR related because we're people companies, we have to be very good at this in order to attract the right talent and also to keep the talent that we have. We have major challenges when it comes to bringing in and keeping women in our sector, for instance, so we have to be very good at diversity and inclusion and also employee experience, of course, to make this a fun place to work at. Then, of course, climate action may be the one thing that people think about most when they think about sustainability due to the emerging climate crisis. We work a lot with that, of course, and also circular economy and our take on that.
That is like the foundation for us that we have to be very good at like our license to operate, and we work throughout the value chain with these topics, but then because we are a tech company, we also wanted to see what can we do to not only improve our own sustainability performance, but foremost our customers? What's due, I think, and what really stands out for TietoEVRY now is that we have this really, really strong business focus going forward for this sustainability game plan. I was thinking maybe Ulrika could take over and explain and elaborate a little bit about the upper half of the circle.
Ulrika Lagerqvist Von Unge:
Yeah, exactly. What we identified when we were developing this strategy or long term plan was that some of our biggest impacts also actually resides among our customers. We have a lot of capabilities and we have a lot of customers, so why not combine those and see where do we have the biggest opportunity in terms of actually helping our customers to become more sustainable? We developed a methodology where we investigated our capabilities, our customer pain points, our customer opportunities and landed in four broad impact opportunities. That's where we have business opportunities in making our customers sustainable. Those are new focus areas within our sustainability long term plan, where we engage with our own business to drive these areas and develop together with our customers to create positive impact on people, planet and societies.
Ida Bohman Steenberg:
I think also if I may add to that, Ulrika, so we set the plan to do that, and we had of course, a lot to build upon. We had lots of good reference cases, but of course, we needed to pin it down to get the buy-in from management. Also, of course, get the resourcing. We started with identifying those areas where we think that other people have, or other customers or stakeholders have impact opportunities, which means a business opportunity for us. We must not forget that, but in order to actually deliver in a good way and at the speed that our customers require, we also had to create a consultancy team that could help in the delivery organization because the customer requirements become... The pressure was so high.
For our little team group sustainability, we couldn't really handle everything, so we created something that we call the sustainability hit team, which is a consulting team consisting of consultants that knows data and sustainability within business consulting. Ulrika, you have been given also... You have the role of leading this group, perhaps you would like to say something more about that group?
Ulrika Lagerqvist Von Unge:
Yeah. Yeah. Sure. Well, this is a group of people that, just as Ida said, they have this kind of expertise, combining sustainability knowledge with IT and technology. We work together to identify both ongoing projects that might be related to sustainability in one way or the other that we perhaps can scale and create synergies, but we also work to identify new opportunities, having our ears towards the ground and listening into what do the customers actually want to have. Then, we take in these opportunities and try to see how we can develop them to actually support our customers. Hopefully, this team will just continue to grow and us with our other efforts, become very integrated in all our business operations. That is at least our aim, so the responsibility lies where the responsibility is sort to say.
Rebecca Griffith:
That's wonderful. Now, I think you've kind of touched on this in a broader sense, but in the TietoEVRY annual report, you talk about implementation of sustainability into daily business operations. What are some other key ways that you're doing this?
Ulrika Lagerqvist Von Unge:
Yeah. If I can start, Ida?
Ida Bohman Steenberg:
Sure.
Ulrika Lagerqvist Von Unge:
I think one of the most important things is to involve everyone from the beginning in what we actually should focus on and what are the most important topics in terms of sustainability, both for all our stakeholders, but also for our business, so that we actually give the ownership of sustainability to the organization. Not so that they feel it comes from the side or from above, but it's actually something that is relevant and that the organization owns. That means that each and everyone has the responsibility to also contribute to our joint targets that we also have involved the different business leaders and parts of the organization in setting. I think that ownership is a keyword here to actually enable integration of sustainability in the operations. Ida, do you agree?
Ida Bohman Steenberg:
Yeah. No, but the group sustainability, our group, we are a small team consisting of specialists with long experience, but we are only so many, so we have to have a very integrated way of working in order to make this fly. What we've been focusing on a lot since many years back is to get it integrated. For instance, if we look at responsible sourcing, which is crucial how we handle our supply chain. We work closely together with a chief procurement officer. The sustainability goals that we have that are public and that we disclose every year in our annual report is just as much his goals as it is our goals, so we really get some power behind driving it and we get the results that we need in order to move forward. That is one thing. Then, as Ulrika explained earlier in the last question about the sustainability hit team, how we also now have taken this step further to really approach the business in a more structured way that we have done before. As I said, we had very good reference cases and we have a portfolio of sustainability related services, but now we're doing this in a much more structured manner because of the market, the demands that has increased so much.
Caitlin Mackie:
Yeah. That's great. I think what you mentioned, having that structure helps with that company buy in and getting everybody on board and realizing that it's everybody's commitment and it's like a journey you're all on together. Yeah. I think that's great. Something that's often talked about is the overlap between business and sustainability and the role of the business in addressing some of the major challenges we face as a society. I think so many look to clearly distinguish their responsibility and draw a line somewhere, but I'm not so sure that's the right approach. TietoEVRY certainly recognizes they have an important role to play and really pave the way towards carbon neutrality. What's your approach to this?
Ida Bohman Steenberg:
Okay. First of all, I think there must be an overlap or there must be like, if you are a company like we are, we cannot do things that we don't think also is good for us, like financially long term. That is the beauty of sustainability. If you have good and long term targets, it's also support the growth of the company in financial terms, so we always have both those perspectives in mind, creating strategies going forward. For us, we work both for our own operations when it comes to climate change to decrease our carbon footprint, obviously, so we are changing. We have renewable energy in all our data centers and offices. We are now currently at 80% and approaching 100. It's going to be difficult. The last percent is always the most difficult ones, but we have a good development as for now.Then, of course, we work super hard because this is the, I think number one question that our customers is asking for, ways to manage their own carbon footprints. Here we are strong in data, of course. Do you want to add something around that?
Caitlin Mackie:
No, but I think that the first reflection that you had that we have this financial perspective also when developing the sustainability plan, it's important because I think that what we see is that... Our business is doing business. Yes, of course. But if you don't do it right, there will be no business on a dead planet, right? So that you have to have the long term perspective where you take into account all the different aspects. It's not only the financial, because they're also interlinked. I think that also the risks that are connected to, for example, climate change for business operations, so the inbound risks that the surrounding is posing to us are becoming more and more clear. I think that it's also becoming evident that if you don't have sustainability integrated in your operations, you will no longer have a license to operate in 2021 and beyond. I think it's just a smarter way of doing business, to be honest.
Rebecca Griffith:
We can all acknowledge that climate action is one of the biggest global challenges for our generation. In recognizing that this is one of your key priorities to address, how do we take these challenges and frame them in a way of opportunity?
Ida Bohman Steenberg:
Well, this is the beauty of being a tech company. We have the luxury of not having lots of goods that we need to take care of cotton or food or so, so we can go straight to the point, I think, and start to listen to what our customers need and create services and solutions that support them in their journey to decrease their carbon footprint. It sounds very easy when I say it like this. It's not that easy, of course. It requires a lot of hard work and everything, but that's what we should do. I think that when you look at the crisis that is emerging, the tech industry is also seen by the other industries as the great enablers. I think that we have a key role to play. I think that we have a responsibility to our stakeholders to be there and to be in the forefront.
I think that's what we've been doing. For instance, for the last year, the guest team has been working on a very interesting solution called the sustainability hub, which actually addresses this spot on. Would you like to...
Ulrika Lagerqvist Von Unge:
Yeah. Yeah. Definitely. I totally agree with you, Ida. The tech industry, it's really an enabler and that also means that there's a lot of business opportunities. As you said, the sustainability data hub voice, one of our responses to these kind of business opportunities that we see out there, so what happened was that we were sitting and discussing and realized that one of the biggest obstacles for companies to actually integrate sustainability into decision making, into risk management analysis, et cetera, is the lack of data as you have now produced your own ability report, the big hurdles that comes with actually collecting the data for that report, it sits in shattered data sources.
The collection is often manual. The data might not be in the right shape. Most companies actually collect the non-financial data once a year for their annual sustainability report. That means that when you have that data, you are actually steering through the rear view mirror because you are not steering proactively by taking fresh data into account when you take your decisions or plan your operations. What we did was that we started to develop a solutions, which builds on automating the data collection of sustainability data by helping customers to identify where does the data sit? How can we actually automate it? Is it via automation, via IoT solution? Who will use the data? Which KPIs and metrics do we want to map it against? How often do we want the data to be updated? Then, visualize it in real time? A modern way of an ERP system for ESG data, you could say, so that it is actually possible to equate non-financial inform and with financial information.
That should give the opportunity for companies to treat the data in the same manner and actually integrate sustainability into the decisions that they take. For example, let's think about the impact of us going from working at the offices to now working hybrid. What are the actual impacts? Can we see that the sick leave has increased or decreased? How has the carbon emission been impacted by us not traveling back and forth to the offices? If we have that data, we could also use that to decide whether we should continue with hybrid working, or if we should force our employees to come back to the office, or if everybody should be working from home. If you can get hand of that collective view of the activities that you take, you could also make more holistic and informed decisions. That's one response kind of how we try to treat sustainability as a business opportunity and identify which are the pain points that our customers have in terms of co-creating a sustainable future, and where can we tap in into that? That is the kind of beauty, as you said, our industry.
Ida Bohman Steenberg:
It is.
Rebecca Griffith:
Really interesting looking at it in real time, as you said, as opposed to a retrospective assessment of the data, which really, you can't change.
Ulrika Lagerqvist Von Unge:
Exactly. Yeah.
Ida Bohman Steenberg:
Yeah.
Rebecca Griffith:
What's the point in waiting another 12 months to then look at it again when you have completely done [crosstalk 00:18:32]?
Ida Bohman Steenberg:
Yeah. Both sustainability.... Yeah. Sorry. Both sustainability and tech is moving extremely fast. I think we need to work like this. I think customers are going to require... We see more and more before they wanted us to report once a year, but now so many of our customers, they want us to report different types of data related to the solutions or our delivery to them on a quarter basis. The more we can have real time data, I think it's going to be the new normal very soon.
Ulrika Lagerqvist Von Unge:
Me too. That will be a huge game changer for companies. When the data is there, you can get it black on white. There is no excuse for taking bad decisions, right?
Caitlin Mackie:
Yeah. Yeah.
Rebecca Griffith:
Quite exciting.
Caitlin Mackie:
Exactly. I don't know about you, Beck, but I'm definitely sitting here being like, "Wow," at all, like this would've been super handy 12 months ago.
Ulrika Lagerqvist Von Unge:
Yeah.
Ida Bohman Steenberg:
It's out there. Yeah.
Ulrika Lagerqvist Von Unge:
Yeah.
Ida Bohman Steenberg:
It's on the market, so you're more than welcome.
Caitlin Mackie:
All right.
Ulrika Lagerqvist Von Unge:
I think that's also typical from sustainability that you have to understand that the solutions to all of these kind of complex problems, they can't be solved by any actor. We need to work in ecosystems and everybody will have to bring their expertise to the table. Then, we can get things to actually be solved. I hope that that logic will also impact other areas so that we more try to cooperate instead of having the cake ourselves, because then there will be no cake left over. That would be sad.
Caitlin Mackie:
It's so, so refreshing to hear you say that. I think for so long businesses have always had this idea about, "Oh, competition," and like, "Keep what's yours. Keep it to yourself. We're going to succeed in this area." But moving into this space, it's just not about that anymore. It's about how we can collaborate together to reach those solutions. I think that's so powerful.
Ida Bohman Steenberg:
For sure. No. Sustainability is horizontal work. As an organization, as an entity, as a company, we are not stronger than our closest stakeholders anyway. Our performance is very much reliant on their performance.
Ulrika Lagerqvist Von Unge:
I think it's so interesting also because since we come from that kind of background, Ida and I also always working across all silos, across all kind of company functions. We also get a special role in our company because we don't have the legacy of working in silos, so we just totally break them all the time because we're not aware of them. That's just what is needed to be able to get the job done. I think that it's really interesting to see how the organization actually appreciates that.
Ida Bohman Steenberg:
Yes. Sometimes, they don't.
Ulrika Lagerqvist Von Unge:
Sometimes, they don't. Exactly. Sometimes, they don't. Yeah. That's true. Yeah.
Ida Bohman Steenberg:
But we have our battles internally. If you're a sustainability professional working in a big organization, you must be very prepared to have those tougher discussions as well, but we all get there, not always on time from our perspective, but that's the way it has to be. Fearless and just...
Ulrika Lagerqvist Von Unge:
Stubborn.
Ida Bohman Steenberg:
Stubborn, and don't be too bothered about silos or hierarchies or so, because then you will never get anything done.
Caitlin Mackie:
I wanted to highlight or expand on the idea of opportunity and the fact that we constantly need to be exploring new and better ways of doing things so that we can move forward. It would be great to get your thoughts on the role of technology in advancing sustainability. I know you've touched on it, but it'd be great to elaborate.
Ulrika Lagerqvist Von Unge:
If I start, then you can build on it.
Ida Bohman Steenberg:
Sure.
Ulrika Lagerqvist Von Unge:
I think that some of the business opportunities or the solutions that we can develop are cross industrial. For example, the need for data and the need to get hold of it and to visualize it and to be able to act on it, is of course, something that all companies in all industries could make use of. But then, I think that for many solution, they are industry specific. For example, logistic. They need certain solutions to be able to optimize their logistic, their rooting, or to better pack their lorries and trains, et cetera. But I think that... There are both this industry specific solution and this cross sectional business opportunities stuff that you have, and also one of the hidden gems within the IT sector is the side effects of digitalizing services or solutions.
It's also important to understand that even though a solution might not be developed and deployed for the use of mitigating or climate change, for example, the actual impact of its implementation might lead to less carbon emission. Let's think about we have a solution that is called patient engagement. It means that you could engage with your doctors and nurses over your phone, which means that you don't have to take the public transportation or your own car to the hospital or to the medical clinic, which of course saves that transportation and in turn, saves carbon emissions if you travel with something except for an electric car. Many of the digital solutions actually have that positive hand print impact or effect, I would say. Of course, the opportunity of expanding on those is also massive and to identify them, perhaps it's the possibility. If you have a patient engagement app, could you use it for other purposes for other users to increase the impact.
Rebecca Griffith:
At Easy Agile, one of our goals was to establish a baseline and publish our very first sustainability and diversity report, which I believe we've shared with you. We'll also share that report as well as the TietoEVRY annual report in the show notes for our listeners. But what advice would you give to organizations to ensure that these kind of documents don't turn into a stagnant document or a mere check of the box exercise? How do we use these reports to encourage conversation and continually seek ways to improve?
Ida Bohman Steenberg:
Okay. I get so many thoughts now. First of all, keep up with an upcoming frameworks. Don't get stuck in all the good old GRI for instance. In the European Union, so we are now approaching the taxonomy reporting or TCFD or so on. Go for those new ones. Also, of course, everybody has to do the ground work. You have to do your stakeholder engagement, the dialogues, the materiality analysis in order to know that you focus on the right things and so on, and you have to have really concrete goals and action plans and KPIs and everything, so you can measure your performance against the goals that ultimately what sustainability reporting is about. But then, I think the opportunity with reporting, because reporting can be a little bit boring too, in a sense, and it can feel stagnant in a way. It is that it's such an important tool in the strategy work.
This is where you get the attention from the leaders like, "What goals are we going to have and how did we do and so on?" That's where you can have the good discussions or you can also raise the ambition level as you go along. That I think is really crucial. Use it as a strategy tool as well, and then never get stuck in like, "Oh, yeah. It's good. We met our targets. We moved 3% forward or whatever." Don't think so much about that. Think about lie what are the major challenges right now? What is your role as an organization? No matter what organization you are, find your way to be part of the solution instead. We have that discussion sometimes internally. People are like, "Oh, but you're doing so good. You have a good results and so on."
But for me and Ulrika and our sustainability professionals, we're like, "Yeah. Okay. We move forward. That's good." But from a greater perspective where we are reaching the tipping point for the planet, so we feel other pressure in order to move forward faster. Don't end up in like, "Yeah. We move forward. We're keeping the pace." Full on power ahead, and speed is of essence going forward.
Ulrika Lagerqvist Von Unge:
Yeah. No, I fully agree. I think that's really good reflections to hook the sustainability reporting up on the challenges to understand. What are the purposes? What are we actually trying to achieve by this report? We are trying to contribute to minimize the negative impact and to increase the positive impact, and the sustainability report is a tool for that. I think another thing that is really important is to actually also engage with the organization to get them define their own targets and their own metrics to report on, so that they feel ownership. For some of the areas that we have in our sustainability report, when we have an engaged partner within the organization that themselves have ideas on targets, we develop their own KPIs.
They feel that, "I really believe in this. I want to work with this." Then, the follow up and the continuous reporting is much easier than while we have perhaps other parts of the organization where there isn't so much clear targets internally, so that the sustainability report is more felt like something that is done on an annual basis just collecting the data, but not making use of it actually. Just create that commitment and build on the company's own targets and own KPIs that are useful. Then, of course, sometimes if you do report according to a sustainability framework such as the GRI standards, which is commonly used in Europe, then you, of course, need to report according to some of the metrics in that standard, but then add your own key guides, your own metrics, because that will make the organization feel engaged, I could say.
Ida Bohman Steenberg:
Yeah. Yeah. Basically to summarize that, so three things, do the groundwork according to the upcoming and fresh frameworks, and then two, use it as a strategic tool to have those important discussions with management and make it a part of the overall strategy, so you don't end up with the sustainability strategy and an overall strategy. Then, three, be bold. Look at the challenges and not only what's doable or keeping the trend or whatever. Those three things, I think is important to have in mind.
Rebecca Griffith:
Spot on.
Caitlin Mackie:
Yeah. I love that. I think that's great advice, especially the idea of you're mapping out what you're doing internally and what that looks like, but being able to take that step back and say, "Okay. But what does this contribute to in the big picture? What are we actually helping and what are we doing to move in the right direction?" Something that I often think about is things like the UN sustainable development goals and looking at those and being like, "Well, what can we do to of map where we are at and where can we offer? What can we be doing in this space that helps reach those targets?" Yeah. Great advice. I love it. But I think just to wrap us up, our last question for both of you is looking forward, what keeps you hopeful?
Ida Bohman Steenberg:
It keeps me hopeful. Well...
Ulrika Lagerqvist Von Unge:
For me, I think the younger generation, to be honest. I think that seeing my brothers' daughters that are teenagers, or to see [inaudible 00:31:19] and the commitment that she's able to steer up, I think that gives me hope that things will move faster in the future. I think that's positive.
Ida Bohman Steenberg:
Yeah. I also second that. I think I visited the school last week with students like 18, 19 years old, and I've been doing that every year for a couple of years now and I always ask them, "What do you know about sustainable? What do you think about it?" Before, it was like, "Yeah. The environment or recycling maybe," but now they were like, "Yeah. The UN SDGs..." So the level of knowledge has increased so much. There is huge interest and when I gave them, "What can you do on a practical level if you want to live a more sustainable life?" They were like, "Yeah. Don't buy a new party cup for the Friday night. Borrow from your friends, or there are these sites. I can text you these sites where you can borrow dresses and stuff like that." They are doing it in real life in such a good way where they combine technology and sustainability, so they're much more tech savvy than we are. I was very inspired by that.
Ulrika Lagerqvist Von Unge:
They're also willing to actually sacrifice stuff. It's like, "No, we don't fly. We don't do this because we would like to have a future to live in." I think that that is something which we are so comfortable and so used to having a certain lifestyle, but they are perhaps not and they are challenging that lifestyle that we have been having, which has also led to where we are today.
Ida Bohman Steenberg:
I think also to add to that, I think that finally the leaders of our countries are getting it, at least getting close to getting it. I think things are changing, so that's good, but my hope stands to the young ones still.
Rebecca Griffith:
It's nice to feel that it's becoming a normal part of consciousness for the newer generations where it's something that we had to learn to appreciate and respect and to take action on, but it seems to be a part of their upbringing and a way of life now, which is great.
Caitlin Mackie:
Well, I think that's great. I think it's great to leave the episode on such a high and leave the audience with a bit of inspiration moving forward. Thank you both for taking the time to chat with us and sharing your expertise with the Easy Agile audience.
Ida Bohman Steenberg:
Thank you so much for having us. It was fun to talk to you, and it's nice also to talk about the perspectives from the Nordics and from the tech industry. Thank you very much.
Rebecca Griffith:
Thank you.