Transcript The New Leadership Paradigm

The New Leadership
Paradigm
Roger Flynn
Athens
3rd December 2009
The New Leadership Paradigm
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Breed urgency and speed
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Alive to risk and deal with it
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Work systemically
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Engage EVERYONE in your business
Times of Transformation
The New Leadership Paradigm
Breed urgency and speed
Prudential Retail
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£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 sale
Cost of Distribution/Policy
£
600
560
500
400
340
300
220
200
120
<100
100
0
Current
Home Visit
Improved
Home Visit
Block-booked
at Worksite
Telephony
Unregulated
Internet
Getting Urgent
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Senior Management
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Buy in to Plan
Values creation
Wider management and staff
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Road shows
Branch visits
Home visits
Speeding up the Change
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Delivering on the promises
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Sales Process
Laptops
Products
Moving Fast
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Leadership Programme
HQ Reorganisation
The New Leadership Paradigm
Alive to risk and deal with it
Virgin Atlantic
Sales and Distribution Costs
Sales (£ m)
6,000
Standard Commission
Incentive Commission
Marketing
Sales
Credit card
CRS
Other
Total Costs
540
180
150
100
90
85
55
1,200
Source: Management figures 1996
9%
3%
3%
2%
1%
1%
1%
20%
Strategy to transform distribution
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Eliminate standard commission
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Incentivise more sales through agents
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Domestic commission in non-core markets
Domestic commission in core markets
International commission
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
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Internal nervousness
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“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
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“We will move business away from you”
“Our profits will be wiped out”
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“You want all the business to come direct”
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Reducing Risk through Teams
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Building Teams, Building Engagement
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Central High Energy Unit
Collaboration and solution building
Power to the “Baronies”
Lower risk implementation plans
Moving Fast
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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 Model
Direction
Strategy
Infrastructure
Culture
Objectives
Policy
Values
Tasks
Processes
Behaviours
Results
Copyright: Vector Consultants
Enterprise wide feedback systems?
Source: Customer Champions in European Countries, 2001
The Virgin Way
Virgin Mobile
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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
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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
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Customer Growth
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2000
2001
2006
500,000
1,000,000
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
Positive
PLAYERS
Attitude
Negative
Low
Energy
High
Energy Investment Model
Positive
SPECTATORS
PLAYERS
Attitude
Negative
Low
Energy
High
Energy Investment Model
Positive
SPECTATORS
PLAYERS
Attitude
WALKING
DEAD
Negative
Low
Energy
High
Energy Investment Model
Positive
SPECTATORS
PLAYERS
WALKING
DEAD
WELL
POISONERS
Attitude
Negative
Low
Energy
High
What Inspired this?
BBC Plan
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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
Mission: One BBC; Making it Happen
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Executive commitment
Our best people!
Conferences/Communication
Leadership Development Programme
Values bottom up
Just Imagine …
Results
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10,000 staff engaged
2,000 change ideas, 700 implemented
Values created by everyone
Excitement about the Vision
Huge energy release
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That’s why they protested!
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YOU …. as a Leader
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Passion, Energy, Commitment → Player?
What you do ……
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Exciting Vision and a sense of urgency?
Alignment and working systemically?
Risks worked hard?
Enough people fully engaged?
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…. Are you being the Leader they need you to be?
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