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0905 The CEO Challenge Creating A Culture Of Growth, Innovation & Leadership
The document discusses the CEO challenge of fostering a culture of growth, innovation, and leadership (GIL) within organizations, as presented in a series by Frost & Sullivan. It outlines the importance of aligning company vision with employee engagement and highlights best practices for developing a GIL culture. Additionally, it emphasizes the necessity of understanding the human element of change and strategies to improve organizational performance amidst challenges.
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0905 The CEO Challenge Creating A Culture Of Growth, Innovation & Leadership
- 1. Asia/Pacific Chairman’s Series on Growth The CEO Challenge: Developing a Culture of Growth, Innovation and Leadership 26 May, 2009
- 2. Today’s Presenters Craig Baty Warren Parry Global VP, IT Practice Managing Director Frost & Sullivan Change Track Research Sydney Sydney Moderator: Michael Buchholz VP, Marketing, APAC Frost & Sullivan
- 3. Agenda 1. Recap on poll results from the previous webcast 2. Brief overview: Where we are in the series 3. The CEO’s Challenge: Creating the Growth, Innovation and Leadership (GIL) culture 4. What the CEO can do to develop a GIL culture? 5. Alignment of the CEO’s vision and staff 6. Best practices in the development of a GIL culture 7. Serious about growth: Next steps
- 4. Polling Responses fromApril APAC/J CSG 1. With regard to growth strategies, which challenges exist in your company? Company is not in alignment on vision 0.0% The company culture does not support fast growth 33.3% We are great at strategy and poor at implementation 66.6% We are great at implementation and poor at strategy 33.3% We do not properly evaluate growth opportunities 0.0% We have no ability to create future scenarios for strategy development 0.0% 2. How would you rate your company’s ability to generate a powerful growth strategy? Highly Successful 0.0% Good 50.0% Average 25.0% Poor 25.0% We are lost 0.0%
- 5. Polling Responses fromApril APAC/J CSG 3. How would you rate your company’s ability to implement a powerful growth strategy? Highly Successful 0.0% Good 33.3% Average 0.0% Poor 66.6% We are lost 0.0% 4. Looking in the rear view mirror, How would you rate your company’s historic growth relative to your top competitors? performance The best 0.0% About the same 50.0% Somewhat worse 50.0% Significantly worse 0.0% Don't Know 0.0%
- 6. Polling Responses fromApril APAC/J CSG Looking forward, relative to your industries top competitors how would you rate your company’s future growth potential? The best 0.0% About the same 100.0% Somewhat worse 0.0% Significantly worse 0.0% Don't know 0.0%
- 7. The Growth AccelerationSystem
- 8. What is aGrowth, Innovation and Leadership (GIL) Culture? • Teamwork is Focused on Growth • Business Units, Regional Units Cooperate to Drive Growth • An Innovative, Dynamic, Trusting and Fun Environment • Leaders are Humble, Team Players, and Inspirational • Communication and Collaboration on Vision • Visionary Leaders Who Set the Standard • Growth is Celebrated
- 9. Developing a Growth,Innovation and Leadership Culture • The Human Element of Success • An Inspiring Vision: Total Shareholder Return Doesn’t Work • Focused on Leadership Skills • GIL Culture Sits on CEO’s Desk • Continuing Research into GIL Culture • The Top 10 To Do’s for GIL • A Best Practice Case History
- 10. Definition: What isBest Practice? Specific activities performed to solve a tough business challenge that 9 out of 10 companies are NOT performing but SHOULD, with measurable results proving effectiveness
- 11.
- 12. Growth Excellence Matrix:Future Growth Potential Measure and forecast the future growth potential of your company vs. the competitors New York KL
- 13. Introducing our GuestSpeaker… Warren Parry Managing Director Change Track Research Sydney [email protected] ©2008 Dialect, all rights reserved
- 14. Creating a Cultureof Growth, Innovation and Leadership FOR USE BY CTRE It is not enough to state, We need to Grow or to implement processes that you want your team to follow to achieve growth. Nor is it enough to simply instruct the individuals and departments responsible for driving growth. It is the behaviour, beliefs, and the establishment of a growth-focused culture that lead to successful growth. By establishing a culture of growth, you will ensure that all members of the organisation understand and participate in driving the organisation to be on the forefront of innovation and leadership. Managers are struggling to identify the underlying drivers of high performance change and looking in the wrong place to find the answers. 1 • © CTRE Pty. Ltd. 2009 • Presentation: Inside ChangeTracking® • 25/05/2009
- 15. ChangeTracking® is theresult of extensive research over 9 years linking people, change and business performance FOR USE BY CTRE 0% 2% Transport 0% 1% 9% Consulting Comprehensive database built from over 280,000 Telecommunications 22% individuals in more than 250 companies undergoing Utilities 11% Banking change across industries, nationalities and Insurance languages: Government - Government 7% 3% Community services - Financial services Defence - Health services Health Services - Mining and Resources 15% Manufacturing 13% - Manufacturing Pharmaceutical - Engineering Resources 5% - Energy Utility 0% 12% 0% Oil and Gas - Pharmaceutical, Motoring, Sanitation, Biotech Communications and Media - Telecommunications 31 35 Transformation Delivering benefit to change stakeholders: Restructure (Reorg) Transformation, SAP/IT enabled change, new business strategy, Cost management (Reorg) IT systems implementation, manufacturing best practice, global 19 IT implementation (Reorg) post-merger integration, building an environment to foster scientific 42 Merger/Aquistion (reorg) 1 Shared Services (Reorg) innovation, cost management, occupational health and safety Culture change research, emergency department performance improvement, shared 22 Performance Improve services implementation, change risk assessment, culture change 14 17 2 • © CTRE Pty. Ltd. 2009 • Presentation: Inside ChangeTracking® • 25/05/2009
- 16. Groups that improveperformance across times of change define the benchmarks for high performance FOR USE BY CTRE Our research shows 1 in 9 work groups improve their performance across times of change Project Business Final Go live and Continuous High preparation blueprint preparation support improvement Performance Peak Performance Feb Mar April May Jun July Aug Sept Oct Nov Dec Jan Feb Mar and high Change Capability On Track Good Performance Improvement and above the norm Performance Change Capability Unsustainable Better Performance With the best intentions the norm Improvement but low Change on change projects is that they typically Capability take longer than planned and cost more – 16% of projects hit their targets – 18% average overrun on budgets Off Track Declining – 23% average over run on schedule Performance – 7% do not achieve scope/functionality and low Change The state of IT project management in UK 2002–2003, Chris Sauer and Christine Capability Cuthbertson, University of Oxford Stage of project 3 • © CTRE Pty. Ltd. 2009 • Presentation: Inside ChangeTracking® • 25/05/2009
- 17. What is ChangeTracking®? FORUSE BY CTRE Leaders implementing change need to know what actions to take that will give them the best chance of success Acquisition, Restructuring, ChangeTracking shows leaders if their ERP, Merger, change is on track? Cost Reduction, - properly defined and resourced Turnaround, - are people actively engaged Culture Change, - will deliver required financial outcomes CRM, - in the shortest possible time Growth, - with the highest probability of success BPR, New Strategy, ………where change is off track, Transformation, Downsizing… ChangeTracking shows the corrective actions that are required 4 • © CTRE Pty. Ltd. 2009 • Presentation: Inside ChangeTracking® • 25/05/2009
- 18. Validated research thatsits behind ChangeTracking has proven what drives performance improvement FOR USE BY CTRE ChangeTracking measures the extent to which the benefits of the change program have been realised, whether or not business performance is improving or declining while change takes place, and the strength of six change Drivers Is the change on track to high performance? Realising Improving Performance Business business Benefits performance Change Capability Drivers Aligned Change Work Emotional Turbulence Resources Direction Leadership Roles Energy Risks and Training and Vision and Management Passion Involvement Clusters Roadblocks Capability Direction Commitment and Drive Changes Taking Systems and Communication Team Leadership Accountability Disturbance Place Processes 5 • © CTRE Pty. Ltd. 2009 • Presentation: Inside ChangeTracking® • 25/05/2009
- 19. New knowledge hasprovided hard evidence about what is important to deliver high performance change FOR USE BY CTRE Change Leadership Systems and Processes Risk and Roadblocks Passion and Drive Involvement Disturbance Vision and Direction Team Leadership Communication Training and Information Accountability Source: ChangeTrack Research (R2=0.482, N=41725) High negative High positive Relative importance of factor in driving improvement in business performance 6 • © CTRE Pty. Ltd. 2009 • Presentation: Inside ChangeTracking® • 25/05/2009
- 20. Our research showswhat is required to bring about a New Way of Working, changes in Culture, Values and Attitude? FOR USE BY CTRE 1. Cultural Change must be linked to > Emotionally Engaged Leaders Company performance improvement People must be confidence that the confident that the culture change program will improve Emotional agreement to the vision company performance and need to see and high confidence signs of improvement in effectiveness and trust in the leadership and cost management 2. Teams must be actively > Clear direction, a positive team spirit involved in managing change Culture People must be actively involved in planning and implementing People need to understand the vision, feel valued and have change change in their team and willing to initiate change clear performance objectives 3. Individuals must have > Strength to face the challenge something at stake When there is a degree of People feel a degree of fear, personal risk and urgency but are not thinking of leaving because of the change Primary drivers Secondary drivers 7 • © CTRE Pty. Ltd. 2009 • Presentation: Inside ChangeTracking® • 25/05/2009
- 21. Breaking the cost-cuttingcycle FOR USE BY CTRE 1. Co st -cut t ing b e g ins. 4. Acco unt ab ility is 5. The cycle o f co st - In t o ug h t im e s ma nag e rs fo rg o t t en fo r t he cut t ing b e gins ag ain. fo cus o n incre a sing t im e b e ing a nd co st s a cco unt ab ility to a chie ve cre e p up a ga in. co st re duct io n. 3. Lea d e rship t raining , cre a t ivity a nd innova tio n 2. Co st -cut t ing g o e s t oo fa r. p rog ram s a re put in Ma nag e rs t he n find sta ff spirit p la ce . suffe rs, so t he y p la ce a g re a t e r emp ha sis o n m aking p e op le fe e l b e t t e r. 8 • © CTRE Pty. Ltd. 2009 • Presentation: Inside ChangeTracking® • 25/05/2009
- 22. Case study 1: Change is off track 3 months after go-live, a major IT system had Bringing an IT been installed and not implemented - $3.8 million over budget, implementation back on track 1000 manual overrides on the new system… FOR USE BY CTRE When change is off track the impact ripples through reporting levels in different ways - here, there is a disconnect between the Driver profile for managers and those reporting to them Aligned Direction Engagement Team Leadership Emotional Energy Vision Communication Change Leadership Involvement Management Skills Feeling Valued Accountability Passion & Drive Disturbance Direction Manager Team Leader Team Member Other Vision declines Communication Management Skills are Accountability is low Disturbance is under leaders is OK OK but not great at all levels too high 9 • © CTRE Pty. Ltd. 2009 • Presentation: Inside ChangeTracking® • 25/05/2009
- 23. Case study 1: Bringingan IT The large gains in cost effectiveness was achieved implementation back on track without a detrimental effect on service quality FOR USE BY CTRE Se r vice Q ua lit y Le ve ls Co st p e r Unit o f Act ivit y Financial rigour (includ es all lab o ur and o ver head exp ens es ) 95% $16 improved: $14 90% $14 $12 $12 Budget back on 85% $10 track, $10 80% Act ivat ion (%) $8 taking 3.8 million Rest orat ion (%) 75% Assurance (%) $8 out of costs and $6 Target % $6 maintaining 70% $4 customer service 65% $2 levels 60% $0 2004 Q1 2004 Q2 2004 Q3 2004 Q4 2005 Q1 2004 Q1 2004 Q2 2004 Q3 2004 Q4 2005 Q1 Sig nifica ntly First Cha ng e - Are a Volum e s Se co nd Cha ng e - Sig nifica ntly First Cha ng e - Are a Volum e s Se co nd Cha ng e - ove r b ud g e t on Tra cking Proje c t ad d ed Tra cking Proje c t ove r b ud g e t on Tra cking Proje c t ad d ed Tra cking Proje c t la b our c osts la b our c osts “Without ‘hard’ data about how my people were responding to change, I would still be reacting, rather than proactively driving effective change,” Bill says. “Validated through direct and open discussions with my people, we learnt to focus on the drivers of improvement and act where it really mattered. The end result for my team was that complaints about the IT system moved off the agenda, we reduced unit costs by 25 per cent, improved customer service levels by over 10 per cent in less than six months and our people measures improved significantly.” Bill Lyon, National General Manager for telecommunications group 10 • © CTRE Pty. Ltd. 2009 • Presentation: Inside ChangeTracking® • 25/05/2009
- 24. Summary FOR USE BYCTRE Leaders need to know if their change program is on track; if change is off track what corrective actions to take Does everyone: See the way forward and understand what is involved Have the required resources Have clear roles and objectives Engage and commit Have passion and drive to over come obstacles along the way! To ensure success they need to: Have the facts - accurate measures Have insight – know what matters Take action – in the areas that really matter Manage change based on understanding how to achieve high performance. To Contact ChangeTrack research: [email protected], +612 9247 6988 11 • © CTRE Pty. Ltd. 2009 • Presentation: Inside ChangeTracking® • 25/05/2009
- 25. Companies to Watchfor a GIL Culture…and Why? • Google • Apple • Outsell Research • TED • Starbucks • McKinsey
- 26. Establishing the GILCulture: The Growth Model t en em pl Im Implementation of Strategies GROWTH MODEL e at al u Evaluation of Ev Opportunities & Strategies e atr Generation of ne Ge Opportunities & Strategies
- 27. Growth Workshops: Strategy Sessionsto Build Teamwork and The Same Page
- 28. CEO's Growth Team BuildingTeamwork & A Culture of Growth Innovation & Leadership
- 29. Starting the GILCulture Program 1) Communicate GIL through Town Hall Meetings 2) Benchmark with Top 20 Competitors 3) Benchmark Growth with Industry Average Over Time 4) Internal Growth Excellence Matrix 5) External Growth Excellence Matrix (with competitors) 6) Training on Best Practices & Growth Models 7) Invest in Growth: Budget, Workshops, Time 8) Shift Incentive to Stretch Growth Targets 9) Develop a Best Practices Perspective on Growth 10) Bring Team to Annual GIL Event
- 30. www.frost.com/gilglobal GIL GLOBAL 2009 Aglobal community focused on Growth, Innovation and Leadership September 2009 October 2009 Kuala Lumpur Phoenix, Arizona October 2009 October 2009 Shanghai Dubai October 2009 December 2009 Bangalore Sao Paulo May 2010 London
- 31. Next Steps Requesta proposal for Growth Partnership Services to support you and your team to accelerate the growth of your company. Attend Frost & Sullivan Executive MindXchange best practice networking events (http://www.frost.com/cal) to share and address strategic challenges Consider Conducting a 360 Degree Growth Workshop to support your long-term growth strategy Join us at a Growth, Innovation and Leadership 2009: A Frost & Sullivan Global Congress on Corporate Growth (www.frost.com/gilglobal) Register for the next Chairman’s Series on Growth: (http://www.frost.com/growthapac) Schedule a Recession Strategy Session with a Frost & Sullivan Industry consultant (email us: [email protected]) Schedule a One-on-One Growth Strategy Dialogue with a Frost & Sullivan Growth Consultant (email us: [email protected]) Register for Frost & Sullivan’s Growth Opportunity Newsletter and Growth Team Membership e Bulletin to keep abreast of growth opportunities in your industry and best practices in your career track. (www.frost.com)
- 32. Contact Us If you have questions or would like further information about anything we discussed, please send your query to the email provided below and we will get back to you shortly. Alvin Chua Account Manager Automotive, Transportation & Logistics DID: +65 6890 0997 Mob: +65 9199 4566 eMail: [email protected]