the new leadership paradigm roger flynn athens 3 rd december 2009
TRANSCRIPT
The New Leadership Paradigm
Roger FlynnAthens
3rd December 2009
The New Leadership Paradigm Breed urgency and speed
Alive to risk and deal with it
Work systemically
Engage EVERYONE in your business
Times of Transformation
The New Leadership Paradigm
Breed urgency and speed
Prudential Retail
£2 bn hit from Pensions mis-selling 6 million customers; 7,000 staff Loss-making Compliance lock – down Only one distribution channel
Potential to halve the cost per saleCost of Distribution/Policy
£
Current Home Visit
Improved Home Visit
Block-booked at Worksite
Telephony Unregulated
560
340
220
120
0
100
200
300
400
500
600
<100
Internet
Getting Urgent Senior Management
Buy in to Plan Values creation
Wider management and staff Road shows Branch visits Home visits
Speeding up the Change
Delivering on the promises Sales Process Laptops Products
Moving Fast Leadership Programme HQ Reorganisation
The New Leadership Paradigm
Alive to risk and deal with it
Virgin Atlantic
Sales and Distribution Costs
Source: Management figures 1996
Sales (£ m) 6,000
Standard Commission 540 9%
Incentive Commission 180 3%
Marketing 150 3%
Sales 100 2%
Credit card 90 1%
CRS 85 1%
Other 55 1%
Total Costs 1,200 20%
Strategy to transform distribution Eliminate standard commission
Domestic commission in non-core markets Domestic commission in core markets International commission
Incentivise more sales through agents Increased commission available Increased support tools
Double direct business through call centres Launch web channel Re-align other elements of value chain
Fear the biggest barrier Internal nervousness
“Could wipe out this years’ profit” “It won’t work, the customers won’t buy direct” “My bonus is linked to revenue delivery” “But the Travel Agents are my friends”
Travel Agents “We will move business away from you” “Our profits will be wiped out” “You want all the business to come direct”
Reducing Risk through Teams Building Teams, Building Engagement
Central High Energy Unit Collaboration and solution building Power to the “Baronies” Lower risk implementation plans
Moving Fast Commission reduction plan Global Internet selling system E-Ticketing Project
Results: Distribution costs at 6%
Internet Sales 80k per week
E-Ticketing up to 84%
Source: BA Fact Book 2006
The New Leadership Paradigm
Work systemically
Alignment ModelDirection
Strategy Infrastructure Culture
PolicyObjectives Values
BehavioursProcessesTasks
Results
Copyright: Vector Consultants
Enterprise wide feedback systems?
Source: Customer Champions in European Countries, 2001
The Virgin Way
Virgin Mobile
Launched Nov 1999 Virtual Network deal with T-Mobile* Avoided capital of £2bn to build out a network Injected £45m 50:50 JV with One-to-One Initial aim: 1m customers in 15 months
* One-to-One purchased by T-Mobile
Total Alignment
Goal: 1m customers in 15 months Proposition: Simple Transparent Pricing Customer Target: Appeal to the young Distribution: Direct
Virgin Values throughout the delivery Risk reduced by Using T-Mobile Network
Results
Customer Growth 2000 500,000 2001 1,000,000 2006 4,000,000
Most satisfied customers 2004 & 2005 July 2006 sale to NTL for £962 m Creation of Virgin Media
The New Leadership Paradigm
Engage EVERYONE in your business
Energy Investment Model
PLAYERS
Low Energy High
Positive
Attitude
Negative
Energy Investment Model
SPECTATORS PLAYERS
Low Energy High
Positive
Attitude
Negative
Energy Investment Model
SPECTATORS PLAYERS
WALKING
DEAD
Low Energy High
Positive
Attitude
Negative
Energy Investment Model
SPECTATORS PLAYERS
WALKING
DEAD
WELL POISONERS
Low Energy High
Positive
Attitude
Negative
What Inspired this?
BBC Plan
Rejuvenate BBC 1 Create BBC 3, BBC 4 and News 24 Central overheads from 24% to 15% income Self-help of £1.2bn over 4 years More cross BBC innovation – “One BBC”
Source: Greg Dyke speech Edinburgh Festival 26/8/2000
Pie Problem
Vision: Most creative organisation in the World
Executive commitment Our best people! Conferences/Communication Leadership Development Programme Values bottom up Just Imagine …
Mission: One BBC; Making it Happen
Results
10,000 staff engaged 2,000 change ideas, 700 implemented Values created by everyone Excitement about the Vision Huge energy release
That’s why they protested!
YOU …. as a Leader
Passion, Energy, Commitment → Player? What you do ……
Exciting Vision and a sense of urgency? Alignment and working systemically? Risks worked hard? Enough people fully engaged?
…. Are you being the Leader they need you to be?