The Change Society Podcast

The Change Society | Innovation with Empathy

If you’re looking for the benchmark in empathetic leaders, look no further than Phil Anderson. Our guest today is COO of Legal and General who chats with our host Pat Lynes on a wide set of topics across transformation, agile and innovation. While we try not to talk about covid too much, but the way Phil and his team navigated an incredible flurry of changes both digitally and personally is to be admired. Naturally, Phil heaped praise on his team rather than himself- but it's clear that his calming influence was a major factor in its success. To boot, Pat and Phil dive into how Phil manages his energy as an incredibly busy executive, as well as his scaling ambition for L&G. All this to look forward to, so please enjoy the show.

The CxO Society Show | Disruption doesn’t Discriminate with Marshall Motors Group CEO Daksh Gupta

Amidst a crippling pandemic for many industries, Marshall Motors managed to have a very strong financial year. While the market went up 8.4%, MArshall eclipsed it with 19.5%. We were lucky enough to have Marshall CEO Daksh Gupta along with our own Strategy and Transformation Advisor Chris Hafner on the show, discussing some of the traits of leadership that helped them to achieve that. But more impressively, despite those profit figures, the executive team at Marshall decided not to take their management bonuses, as they considered the hardship that many people had endured throughout the past year. Actions speak louder than words for leaders in today’s day and age and that’s what we unpacked today along with the upcoming opportunities in the automotive industry, what a modern leader looks like and what are some of Marshall Motors’ secrets to success. Intro-  * Chris Hafner [chris.hafner@sullivanstanley.com] Strategy and Transformation Advisor for S&S * Daksh Gupta - CEO for Marshall Motors Holding PLC * 134 businesses representing 22 brand partners - Audi/ Volkswagen/JLR/Volvo etc * Been CEO since 2008 - in year 14 * Chris - worked in venture capital, spun up and sold two tech businesses * Defining vision, purpose, strategy and transformation road map Marshall Motors trading update numbers - 36.13 * Despite pandemic, made £21M of PBT (ahead of forecast) * Market was up 8.4%, Marshall was up 19.5% * Because of that, we repaid all the furlough payments claimed in 2020 * Paid back retail grants - lots of media attention because of this * However we decided not to take management bonuses What are the softer traits and trends driving success in various industries? - 6.30 * Businesses doing the right thing with a strong moral compass * Consumers will move towards moving towards brands that act this way * Leaders who set outcomes for teams to achieve - but not enforcing the ‘how’.  Modern Leadership - 13.46 * The good will and positivity that comes from ‘giving back’ * Marshall - 11 years in a row ranked as a Great Place to Work and UK Best Workplaces * Apply good customer outcomes, you achieve shareholder value. It’s not rocket science * Have to be transparent - monthly management conference with everything on the table * Lead from the front and blaze the trail * Authenticity is something you can’t manufacture - consumers will know * You can only lead if you have followers and you can’t force them to follow you What are customers' expectations in 2021? - 16.43 * Automotive industry - low margin game, so it’s about service and technology, but more importantly - is this company a business for good? * Are organisations doing the right thing from an environmental perspective? What are the upcoming opportunities in the automotive industry? 🔥20.38 * Lots of change going on around electric vehicles and emissions targets * Manufacturers need to review distribution  * Digitalisation has a huge role to play * How to improve the customer experience when buying a car  Disruption doesn’t discriminate - 25.59 * It used to be pretty straight forward to figure out who your competitors were * Broaden your thinking, start thinking about ecosystems * Have a portfolio of options you can execute based on various futures, gives businesses the ability to pivot * Go back to basics creates tremendous opportunities Secrets to Marshall success - 30.07 * Grew from £300m revenue to £3bn in 14 years, IPO'd in 2014  * Having a stable management team * Make long term decisions for the good of the business for the long term * Do you live your values? Integrity is a key one, hence not taking the management bonus ---- WANT TO KNOW MORE ABOUT HOW S&S CAN HELP YOU AND YOUR ORGANISATION? 1. Subscribe to this podcast [https://podcasts.apple.com/gb/podcast/the-change-society-podcast/id1457666736] and check out some of our cutting edge knowledge and ideas on the insights [http://sullivanstanley.com/insights] page 2. If you’re a senior leader or change agent, join one of our change communities [https://www.sullivanstanley.com/the-change-society/] to network and share with like minded individuals If you have a problem that needs solving across business change, agility, delivery or transformation and you don’t want to go down the big, traditional consulting route- get in touch [https://www.sullivanstanley.com/contact/]

The Change Society | Beyond Budgeting - The foundation of radical change

“Unless you address the budgeting process, all the talk about radical change are just nice words”. There probably isn’t a better way to introduce this show than the words of our guest Bjarte Bognses.  [https://www.linkedin.com/in/bjarte-bogsnes-41557910/] Bjarte, winner of the Harvard Business Review/McKinsey Management Innovation award, is the undisputed leader of the Beyond Budgeting movement - the topic of today's episode. Lots of ground was covered in this one, including where the movement was originally inspired, how the adoption of beyond budgeting has increased since the pandemic, how to get the CFO and executive team on board with rolling budgets and how Handelsbanken operate with no budgets, targets or individual bonuses. The topic becomes more than just about the budgeting process. It’s an exercise in challenging traditional management and leadership principles that can unlock the true potential of organisations normally slowed by bureaucracy and red tape. As usual, a ton of value for any executive or leadership team looking to change and innovate. References: Twitter: https://twitter.com/bbogsnes [https://twitter.com/bbogsnes]LinkedIn: https://www.linkedin.com/in/bjarte-bogsnes-41557910/ [https://www.linkedin.com/in/bjarte-bogsnes-41557910/]bbrt.org [http://bbrt.org]Implementing Beyond Budgeting Book [https://www.amazon.co.uk/Implementing-Beyond-Budgeting-Unlocking-Performance/dp/111915247X/ref=asc_df_111915247X/?tag=googshopuk-21&linkCode=df0&hvadid=310762413837&hvpos=&hvnetw=g&hvrand=1699628181254553690&hvpone=&hvptwo=&hvqmt=&hvdev=c&hvdvcmdl=&hvlocint=&hvlocphy=9045888&hvtargid=pla-453471485230&psc=1&th=1&psc=1] 1.29 - Intro * The first time we kicked out the budget, and costs came down * The beginning of the Beyond Budgeting journey back in 2005 * Enjoying public speaking and podcasting 4.17 - What is Beyond Budgeting? * The purpose is to create a more dynamic, flexible human organisation * Changing the budgeting process, but also the budgeting mindset * We are looking for a better name! 5.44 - Heritage of Scandinavian Management Techniques * Beyond Budgeting is more prevalent because of culture. Informal and trusting * A movement inspired by companies in both Scandinavia and the UK * The idea started in 1998, two years before the agile manifesto 8.24 - The 12 key principles and what they are looking to challenge * Divided into six leadership principles * The traditional models don’t reflect the management processes you need to unlock these leadership beliefs * We have to practice what we preach as leaders * Traditional management built on two principles - can’t trust people and that the future is predictable and plannable.  *  The pandemic has busted these apart 13.16 - Are you seeing a shift in uptake of Beyond Budgeting since the pandemic from boards? * Every big company is on some sort of agile transformation * Unless you address the budgeting process, wanting to change is just lip service * Everyone loves innovation, but that enthusiasm is limited to tech - not management 18.58 - Using the right language to align groups of executives * We should leave performance management behind as a label * Stop managing performance, and start enabling * E.g. Traffic lights manage performance while roundabouts enable it 20.55 - What are the barriers to transitioning to this new world? * The fear of losing control, although that is often just an illusion * We don’t need targets to evaluate performance * Hitting the target, but missing the point 25.33 - Case Study  * Handelsbanken has been operating with no budgets, targets or individual bonuses since 1970. Has never needed a government bailout 26.55 - How to take the CFO and Finance team on a journey to rolling budgets * They initially find it a bit big and scary * Ask ourselves - why do we budget? Set targets, forecast and resource allocation * It created gaming and sandbagging * We can continue to do all three, but we do them in separate processes * Target- an aspiration, what we want to happen * Forecast- what we think will happen * Resource allocation- optimisation of scarce resources 35.28 - What does the future look like? * Like-minded communities are joining forces to spread the word  * In 15-20 years, we’ll smile at management in 2021 * Be the pioneer or the laggard

The CxO Society | The Customer Masterclass

Being customer-centric in 2021 is no longer a choice. But what are the nuances and tips that can differentiate you from the pack? Joining host Jacob Perring on the show was our very own Chief Customer Experience Officer Emma Dark (previously ASOS, The White Company & Soho House) and Mark Baxter (Tesco, P&G). In 50-odd minutes they cover the latest trends they’ve seen the past few years, why your customer must have a seat at the boardroom table, common issues when driving customer focus at a senior level and how to measure it all. Between Mark and Emma there is a boatload of customer experience across industry on a variety of levels, so no doubt you will come away from this with huge value. One not to be missed, so we hope you enjoy the show. 1.12 - Intro * Mark Baxter, Marketing Director specialising in customer data and centricity. * Emma Dark, Chief Customer Experience Officer at S&S, previously ASOS, The White Company and Soho House 2.25 - What trends are we seeing in the past few years as we focus on customers * Buffet- you can tell who’s been swimming naked when the tide goes out * Customers seek authentic brands that resonate with them * Engagement and experienced led product or service is vital * CX is the battleground and differentiator in a digital world * Customer needs to be a strategy across the whole business 7.52 - Customer data and knowing your customer * Two types. Data and being forensic, but also observing with your own eyes * This leads your business on the right path to creating something unique * FMCG and retail, lots of copycats. So you have to differentiate through customer * Knowing them behaviourally and personalise their experience * Need to dispel the myths by researching what they really want 🔥 * Focus on the epicentres where you can extract insights  * Customer data isn’t a one-off exercise - it has to become ingrained everywhere 🔥 11.38 - Customer having a seat at the boardroom table * You have that independent conscience of the customer 🔥 * Shine a light when it's not the right decision for the customer 🔥 * A single view of the customer across various organisational functions wins * Set out what the north star strategy actually means and how it resonates * How do they purchase? What is their journey?  17.06 - Measurements and metrics * What is the as-is business across all our touchpoints? * NPS is a strong way of measuring customer satisfaction * Along with competent scores of that customer journey * Having multiple measurements and looking at the whole story * E-commerce is a good way to track that journey and identify problems 22.22 - Customer engagement via social media * Brewdog - they aren’t just discussing their products, they’re telling a story * Content and community strategy anchored in values and purpose * Customer dialogue > advertising * The opportunity to show your company personality * Creating a space for user-generated content 28.54 - Common issues when driving customer focus as a senior level * Thinking you know the customer, but you don’t * Customer centricity not part of your organisation’s culture * They don’t understand their ‘why’ * Metrics aren’t strong enough 34.53 - Speed, failing fast and learning quickly * Case study: Mercadona * Trust the customer and empowering employees to make quick calls * Act upon your insights and be proactive * Where is it practical to get a cohort of your customers involved? 40.14 - Purpose over profit * Customers are skeptical, you have to walk the walk * People now actually care about environmental impact of products * Organisations talking about their people creates authenticity and builds trust * Purpose has to become the new differentiator * Stand for something - or you’re in a no-mans land of mediocrity * Big banks disrupted by customer-centric fintechs If you’re interested to hear more about how Sullivan & Stanley solves the change problem and how we empower companies to embrace disruption to thrive tomorrow, check out our services [https://www.sullivanstanley.com/services/] page. Or get in touch. [https://www.sullivanstanley.com/contact/]

The Change Society | The Human Capital Reset

As the UK prepares to emerge from the shadows of lockdown, Host Pat Lynes catches up with Chief People Officer Paul Cutler on what is next for individuals and organisations. They discuss how the scale and simultaneous shock of the pandemic have levelled the playing field amongst organisations globally, but also why their return to work strategies are very different. Can organisations offer people the flexibility to manage how they work? Can you build a virtual culture? Does this help or hinder blue-chip companies in the war for talent? They then dive into other aspects of the future of work including portfolio plus, the value of leadership continuity while remaining flexible and what the boardroom of the future will look like. All these answered and plenty more including why human capital is your biggest advantage in the world of open-source technology. We hope you enjoy the show either to watch or listen. 2.43 - Intro * Previously Chief People Officer at Travelex * A former restaurant and nightclub owner (Supper Club) 4.19 - Reflections on last year and opportunity for next decade * Huge shock, but nothing new * AI, Flexible working, robotic process - same topics * Scale and simultaneous shock has levelled the playing field * Unilever CEO saying they will never return to 5 day work week * Remote work will affect the higher paid knowledge works, but factory workers, Nurses and delivery drivers will be harder pressed to adapt 8.24 - How will the return to work settle in the corporate world? * Can organisations offer flexibility to manage how they work? * What job are you in? * What is desirable? * Hybrid is the answer 13.23 - Adapting Organisational Design and Structure 🔥 * The future of work isn’t just about where you work * What collaboration tools and cultural norms and rules * How do you as a leader inspire your people when they’re fragmented * Where is the water cooler? 16.07 - Building a Virtual Culture * Culture is extremely hard to define and control anyway * Build them the same way as you would in the office * Comms, values, recognition and role modelling, leadership etc. * Need to become more sophisticated and fluid in how we think about it 20.44 - What do blue-chip companies need to do now to compete in the war for talent? 🔥 * 1. World is fragmenting and people will vote for their feet * 2. Big corporate is king - they can cherrypick the people they want * Everyone else will be fighting for gigs * CxOs of the future need an employee mix * Take control of the future trajectory of where tech will disrupt you 27.14 - Human Capital * World of open source and cloud-based tech - what is your competitive advantage? Your people 🔥 29.44 - Where Formula 1 can teach corporates to win * Working with McLaren to overhaul analytics at GSK using incremental gains * Concept of winning. What inspires? 32.48 - FTSE backing Long term exec guidance and leadership vs. short-term shareholder primacy pressures * Scaled orgs need continuity of leadership and direction * Startups and agile orgs have the ability to flex, but need continuity too! * Hard to transform with so much executive churn * Never been more important to have the right leader * The paradox of keeping the consistency of leadership, but also need to be flexible  40.10 - Portfolio Plus * Bjarte Bognes on Beyond Budgeting * The dichotomy of corporations vs. employee isn’t the future 44.11 - Wave a magic wand to build a future of work in a corporate setting * Dialogue with leadership, employees, customers and partners * What makes up the DNA of this place? * Minimalist design work and light HR scaffolding * Implement and embed 49.13 - Model Organisations * Brewdog - only seven pay grades between entry and executives * A socially responsible business model * Getting emotional, purpose and business contract - holy trinity for talent 52.06 - Boardroom of the future * Obviously a diverse boardroom - above all, diversity of thought * Being a net contributor to the benefit of our community, society and planet * Get a representation of all cross-section of employees on your board