The document discusses the role of the CIO in leading change and innovation. It finds that fewer than 40% of transformations are successful, but success rates increase when leaders focus on raising expectations, changing behavior, and engaging employees. Key factors for success include clear goals, responsibilities, frontline ownership, communication, and the right information. Tomorrow's CIOs need to be both business strategists and transformational leaders, with skills in areas like collaboration, change leadership, and results orientation. CIOs can help drive innovation by simplifying collaboration, eliminating barriers to change, and giving employees permission to collaborate.

1. Change and Innovation; and
the role of today's CIO
Tuesday 08 November 2011
Rory Gregg
Associate Director - Business Transformation
Grant Thornton Australia
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2. 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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3. Leading & managing change
Question?
What's driving successful
transformation?
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4. Leading & managing change
Formula for success
% of extremely / very successful transformations
(n=2,994)
Offensive; 37% 47%
• Improving on what you have (Reactive & (Offensive &
• Performance improvement
Offensive) Proactive)
Fewer than 40%
34%
Defensive: 34%
of transformations succeed
• Reducing costs
(Reactive &
• Turning around a crisis situation
Defensive)
(Proactive &
Defensive)
Reactive Proactive
• External shock (eg change in • Outcomes of annual strategic
regulatory environment planning process
• Responses to market pressure • Bottom Up realisation that
or poor performance benefits can be achieved
© Grant Thornton International. All rights reserved. (*) McKinsey & Company Survey 2008.

5. Leading & managing change
Formula for success
Fewer than 40% of transformations are successful
Success rates increase when leaders are focused on
1. Raising employee expectations
2. Actively changing behaviour
3. Engaging individuals at all levels
It's critical that leaders understand the key factors the deliver the right
change
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6. Leading & managing change
Success factors
Key factors for success:
1. Clear structure, targets & milestones
2. Clear roles and responsibilities & accountabilities
3. Frontline ownership for the change
4. Energised through communication and involvement
5. The right information at the right time
Projects Lacking
Clear Goals
90%
failure rate
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7. Leading & managing change
Success factors
Transformations described as extremely successful
(% of respondents N=2,994) Offensive & Proactive
Defensive & Reactive
All Transformations
100%
90%
Success rate of Transformation (%)
80%
70%
60%
50%
40%
30%
20%
10%
0%
Used Used 1 Used Stretch Used Stretch Used all
None Approach Targets plus any 2
(*) McKinsey & Company Survey 2010
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8. Tomorrow's agents of change
Question?
What defines a successful
agent of change?
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9. Tomorrow's agents of change
How do we rate?
Business Strategist
1. Market knowledge
2. External customer focus
3. Commercial orientation
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10. Tomorrow's agents of change
How do we rate?
Business Strategist
1. Market knowledge
2. External customer focus
3. Commercial orientation
Transformational Leader
4. Strategic orientation
5. Change leadership
6. Collaboration & Influence
7. Results orientated
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11. Tomorrow's agents of change
How do we rate?
Business Strategist
1) Market
1. Market knowledge Knowledge
5.5
2. External customer focus 8) Team
Leadership 4.5
2) External
Customer Focus
3.5
3. Commercial orientation
2.5
Transformational Leader People & Org
Development
1.5 3) Commercial
Orientation
4. Strategic orientation 0.5
5. Change leadership
7) Results 4) Strategic
6. Collaboration & Influence Orientated Orientation
7. Results orientated 6) Collaboration & 5) Change
Influence Leadership
Functional Head
8. People & org development
Outstanding CIOs (Top 15 percentile) *Note: Per Egon Zehnder, there are not yet enough
9. Team leadership Average CIO's (Top 50th percentile)
evaluations of the Commercial Orientation
competency to plot its scores on this graph
Good CEO's (50th-85th percentile) (N= 25,000)
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12. Tomorrow's agents of change
Building a leader’s capability
Transformational
Functional Leaders Strategic Leaders
(Credible) Leaders (Game Changer)
(Influential)
People & Strategic
Commercial
Organisational Orientation
Orientation
Development
Change
leadership
Team leadership Market Knowledge
Collaboration &
Influence
Functional External Customer
expertise Results Orientation Focus
© Grant Thornton International. All rights reserved.

13. Tomorrow's agents of change
Building a leader’s capability
Transformational
Functional Leaders Strategic Leaders
(Credible) Leaders (Game Changer)
(Influential)
People & Strategic
Commercial
Organisational Orientation
Orientation
Development
Change
leadership
Team leadership Market Knowledge
Collaboration &
Influence
Functional External Customer
expertise Results Orientation Focus
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14. Tomorrow's agents of change
Delivering Business Value
Transformational
Functional Leaders Strategic Leaders
(Credible) Leaders (Game Changer)
(Influential)
Optimise business Business
processes Innovator
Systems efficiency
& effectiveness Enable new
customer service
channels Competitive
Advantage
Globalization
Data management Enables "go to"
Enterprise agility market strategies
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15. Tomorrow's agents of change
Delivering Business Value
Transformational
Functional Leaders Strategic Leaders
(Credible) Leaders (Game Changer)
(Influential)
Optimise business Business
processes Innovator
Systems efficiency
& effectiveness Enable new
customer service
channels Competitive
Advantage
Globalization
Data management Enables "go to"
Enterprise agility market strategies
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16. Tomorrow's agents of change
Translating CEO speak to CIO Priorities
Change agent priorities CIO Priorities
Align the strategy, vision and Play a constructive role
goals by creating a shared in all stages of planning
vision for the future
Plan change steps carefully.
Focus on what needs to
Communicate clearly.
change and visualize the
Communicate often.
“journey” ahead
Support the business.
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17. Tomorrow's agents of change
Translating CEO speak to CIO Priorities
Change agent priorities CIO Priorities
Simplify collaboration &
Establish two way dialog by
communication.
involving the whole
Both "top to bottom" and
organisation.
between departments.
Align performance
Ensure KPIs match goals.
management processes to
Eliminate KPIs which are
desired outcomes and
counterproductive.
behaviours
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18. Tomorrow's agents of change
Translating CEO speak to CIO Priorities
Change agent priorities CIO Priorities
Find quick wins.
Identify & measure successes
Communicate them.
early and often
Rinse, repeat.
Do your homework.
Deal proactively with resistance Eliminate technology or
process barriers to changes.
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19. 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
© Grant Thornton International. All rights reserved. Contributions from, CIO, Cognizant & Grant Thornton

20. Innovation through collaboration
Question?
Innovation v Productivity
What's the trade-off?
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21. Innovation through collaboration
Telling 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
© Grant Thornton International. All rights reserved. Source; Microsoft Australia CTO Greg Stone

22. Innovation through collaboration
Focus on what matters
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)
Remove
Barriers
– Give people "permission" to collaborate and
co-design solutions (leadership)
– Allow alternative approaches to problems
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23. 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
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