Send test mailing failing because of "only_full_group_by" setting

After upgrading Linux/Ubuntu server to 16.04 LTS we can't send mailings. When a test mailing is attempted an error popup shows "Unknown DBError" and investigating in the logs shows:

nativecode=1055 ** Expression #1 of SELECT list is not in GROUP BY clause and contains nonaggregated column 'events4.civicrm_mailing_event_delivered.id' which is not functionally dependent on columns in GROUP BY clause; this is incompatible with sql_mode=only_full_group_by

This indicates some relation to CRM-18439.

Using MySql 5.716 on Ubuntu 16.04.01 with CiviCRm 4.7.12.

Doing "SET GLOBAL sql_mode=(SELECT REPLACE(@@sql_mode,'ONLY_FULL_GROUP_BY',''));" made the problem go away.