Change and Innovation; and the role of today's CIO - IDG · 2013-08-08 · Business Strategist 1....
Transcript of Change and Innovation; and the role of today's CIO - IDG · 2013-08-08 · Business Strategist 1....
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Change and Innovation; and the role of today's CIOTuesday 8 November 2011
Rory GreggAssociate Director - Business TransformationGrant Thornton Australia
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Agenda
• Leading & managing change, the formula for success• Tomorrow's agents of change• Innovation through collaboration• Questions
#CIOSummit @rory_gregg www.rorygregg.com
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Leading & managing changeQuestion?
What's driving successful transformation?
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Leading & managing changeFormula for success
% of extremely / very successful transformations(n=2,994)
Offensive;•Improving on what you have
•Performance improvement
37%(Reactive & Offensive)
47%(Offensive & Proactive)
Defensive:•Reducing costs
•Turning around a crisis situation
34%(Reactive & Defensive)
34%(Proactive & Defensive)
Reactive•External shock (eg change in regulatory environment•Responses to market pressure or poor performance
Proactive•Outcomes of annual strategic planning process•Bottom Up realisation that benefits can be achieved
(*) McKinsey & Company Survey 2008.
Fewer than 40% of transformations succeed
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Leading & managing changeFormula for success
Fewer than 40% of transformations are successful
Success rates increase when leaders are focused on1. Raising employee expectations2. Actively changing behaviour3. Engaging individuals at all levels
It's critical that leaders understand the key factors that deliver the right change
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Leading & managing changeSuccess factors
Key factors for success:1. Clear structure, targets & milestones2. Clear roles and responsibilities & accountabilities3. Frontline ownership for the change4. Energised through communication and involvement5. The right information at the right time
Projects Lacking Clear Goals
90% failure rate
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Leading & managing changeSuccess factors
(*) McKinsey & Company Survey 2010
Used Used 1 Used Stretch Used Stretch Used allNone Approach Targets plus any 2
Suc
cess
rate
of
Tran
sfor
mat
ion
(%)
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Tomorrow's agents of changeQuestion?
What defines a successful agent of change?
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Tomorrow's agents of changeHow do we rate?
Business Strategist1. Market knowledge2. External customer focus3. Commercial orientation
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Tomorrow's agents of changeHow do we rate?
Business Strategist1. Market knowledge2. External customer focus3. Commercial orientation
Transformational Leader4. Strategic orientation5. Change leadership6. Collaboration & Influence7. Results orientated
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Tomorrow's agents of changeHow do we rate?
Business Strategist1. Market knowledge2. External customer focus3. Commercial orientation
Transformational Leader4. Strategic orientation5. Change leadership6. Collaboration & Influence7. Results orientated
Functional Head8. People & org development9. Team leadership *Note: Per Egon Zehnder, there are not yet enough
evaluations of the Commercial Orientation competency to plot its scores on this graph (N= 25,000)
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Tomorrow's agents of change
Building a leader’s capability
Functional Leaders(Credible)
Transformational Leaders(Influential)
Strategic Leaders(Game Changer)
People & Organisational Development
Strategic Orientation Commercial
Orientation
Team leadership
Changeleadership
Market Knowledge
Functional expertise
Collaboration & Influence
External Customer FocusResults Orientation
© Grant Thornton International. All rights reserved.
Tomorrow's agents of change
Building a leader’s capability
Functional Leaders(Credible)
Transformational Leaders(Influential)
Strategic Leaders(Game Changer)
People & Organisational Development
Strategic Orientation Commercial
Orientation
Team leadership
Changeleadership
Market Knowledge
Functional expertise
Collaboration & Influence
External Customer FocusResults Orientation
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Tomorrow's agents of change
Delivering Business Value
Functional Leaders(Credible)
Transformational Leaders(Influential)
Strategic Leaders(Game Changer)
Systems efficiency & effectiveness
Optimise business processes
BusinessInnovator
Data management
Enable new customer service
channels Competitive Advantage
Globalization
Enables "go to" market strategiesEnterprise agility
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Tomorrow's agents of change
Delivering Business Value
Functional Leaders(Credible)
Transformational Leaders(Influential)
Strategic Leaders(Game Changer)
Systems efficiency & effectiveness
Optimise business processes
BusinessInnovator
Data management
Enable new customer service
channels Competitive Advantage
Globalization
Enables "go to" market strategiesEnterprise agility
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Tomorrow's agents of change
Translating CEO speak to CIO Priorities
Change agent priorities CIO Priorities
Align the strategy, vision and goals by creating a shared
vision for the future
Play a constructive rolein all stages of planning
Focus on what needs to change and visualize the
“journey” ahead
Plan change steps carefully. Communicate clearly.Communicate often.
Support the business.
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Tomorrow's agents of change
Translating CEO speak to CIO Priorities
Change agent priorities CIO Priorities
Establish two way dialog by involving the whole
organisation.
Simplify collaboration & communication.
Both "top to bottom" and between departments.
Align performance management processes to
desired outcomes and behaviours
Ensure KPIs match goals.Eliminate KPIs which are
counterproductive.
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Tomorrow's agents of change
Translating CEO speak to CIO Priorities
Change agent priorities CIO Priorities
Identify & measure successes early and often
Find quick wins.Communicate them.
Rinse, repeat.
Deal proactively with resistanceDo your homework.
Eliminate technology or process barriers to changes.
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Tomorrow's agents of change
How to be taken seriously by the board
Deliver reliable infrastructure
Become an expert on your industry's value chain
Take on business-centric transformational roles – not just tech projects
Support the CEO and executive team in creating a climate of change
Contributions from, CIO, Cognizant & Grant Thornton
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Innovation through collaborationQuestion?
Innovation v Productivity
What's the trade-off?
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Innovation through collaborationTelling it as it is?
• Shifting priorities– from efficiency focus to innovation focus - through their people
• Abandon “industrial-age” obsession with business processes– move towards “augmenting human interaction”
• Develop low friction communication environments– people interact effortlessly through seamless communication
mediums and social collaboration.
• Become role models and educators for the change you want– Lead and support employees and customers
Source; Microsoft Australia CTO Greg Stone
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Poor collaboration & stifled innovation are significant barriers to effective change
CIO's are uniquely positioned to help:– Creating open and transparent knowledge
sharing solutions
– Breaking down the behavioural barriers (virtual teams & social networking)
– Give people "permission" to collaborate and co-design solutions (leadership)
– Allow alternative approaches to problems
Innovation through collaborationFocus on what matters
Remove Barriers
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Acknowledgements
"What successful Transformations Share", (McKinsey & Company; 2010)http://www.mckinseyquarterly.com/What_successful_transformations_share_McKinsey_Global_Survey_results_2550
"Corporate Transformation Under Pressure – Survey Results" (McKinsey & Company; 2008)http://www.mckinseyquarterly.com/Corporate_transformation_under_pressure_2308
"Next Generation CIO's, Change Agents for the Global Virtual Workplace"; (Cognizant Consulting 2010)www.cognizant.com
"The Future Workforce has Arrived – Time to Refocus IT"; (Cognizant Consulting 2011)www.cognizant.com
"The Big Six; Framework for IT Values and Leadership"; (CIO Executive Council, 2010)https://council.cio.com/estore
"Leaders Shaping the Future of Business"; (CIO Executive Council)
"Staff culls kill innovation presentation" (Greg Stone, CTO Microsoft 2011)http://www.zdnet.com.au/staff-culls-kill-innovation-microsoft-339323612.htm?ocid=nl_TNB_05102011_fea_5