Skype's Business Transformation - Chief Strategy/Innovation Officer Summit


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Skype's Business Transformation Initiative

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  • Due diligence before transformation
  • We needed to enhance the path of Data-Information-Knowledge as the basis for any decision
    That’s not where the path ends..

    Data with Strategy is key
  • Developing and joining up the pieces of the puzzle. Have a clear strategy for the transformation

    Business principles, org behaviour & culture, strategy along with big data, analytics and technology
    Big Data elements (technology, analytics, etc..)
    Gaps – missing pieces

  • What we did
    Metrics framework
    Business Rhythm

    Demonstrate the difficulties of execution on our sound strategy

    First steps (babies). The first things I did was not that obvious and were not focused on Data/technology
    Executive support. – from ceo, cfo, product, engineering
    Corporate wide – not limited to the tech areas, we needed to convince that it’s the only way to go
    Centre Stage - Not a regular IT or data project. With the proper communication and limelight
  • Few steps later were again not focused on data yet but on Branding & Marketin
    Crisp and coherent messaging to ensure we have the engagement we need

    Communicated to the entire organization

    Whole greater than the some of the parts

    Not just Org benefits but professional benefits
  • Start looking at the data
    Format that everyone in the org can use
    Nowadays, more non-technical employees have the skillset and ability to extract data from multiple sources
    However, that does not apply to everyone

    Examples, what we did – tools, dashboard, printouts, lenses from executives to employees
  • Change is difficult, too many changes or too fast a change can risk the reaching the objective of the change in the first place
    But how do you promote adoption and embed the mindset into the daily work of the business
    Integrate the data and metric framework into the task systems (backlog, project, etc..)
    Small change with significant impact – for the mindset and culture, and for the future reports and biz principles

    Reports – management ensure people are focused

    Embed in the business, day to day work, adoption – JIRA
    Small change with significant impact

    The analytics needs to be embedded in tools that engage managers and frontline employees on a daily basis
  • One key element was to create Common language between all functions
    Metrics framework
    Two benefits – promotes data driven change & helps improve, streamline and enhance the business process (strategy to execution, etc..)
    Common goals – common metrics – common understanding – common way of looking at our business

    Example – Marketing would want an add campaign, product wants a feature, engineering increasing the capacity….they were all saying the same thing
  • Tiered metrics
    aided the business’ understanding on how we deliver value and led to the desired cultural behaviours
    Offers a feedback loop to the business from the customers using the metrics as a language
    Connects top down strategy to bottom-up activities
    Develops our knowledge on what adds value for the users and shareholders
    Embeds a metric & insight-driven culture in the business: The value of all activities is linked to metrics
    One source of truth

    Each metric:

  • Strategy to Action report

    All the backend and infrastructure work allowed us to determine where point A is, what’s are our capabilities to execute on the strategy so we can start devising one.

    Easier steer from above and context from the developers, marketers and others

    Metrics – data driven, experimentation and innovation
    Effort – give time to innovation and not just corporate strategy, constraints and capabilities
    Strategy – show how the strategy trickles down

    The Effort Allocation Report shows the value in man days and the cost in USD of each PBI completed.
    The objective of the report is to support PDs, PMs and senior management understand how the capacity has been distributed and what are the key initiatives that have been prioritised.
    Overall, it allows us to see if our efforts are aligned to our strategy
  • The HW we needed to install the tools, processes and culture necessary for the strategy and innovation to work

    Data-driven and action-oriented business rhythm: the cycle of data-insight-action-review will foster operational excellence
    Informed, proactive innovation, not reactive behaviour
    Transparent and collaborative: X-Functional alignment means less duplications, more creative input , better insight
    Defining ownership and agreeing on the criteria for success helps establish causality of metrics
  • Who brushes their teeth (morning, evening, any other time during the day)?
    It’s in our routine in the morning and evening but not in the middle of the day
    For better adoption of the insight-driven culture we needed to align the data rhythm to the decision and business rhythm…so align the frequency of the data refresh to the business reviews when decisions are being made

    We had to create a routine, a new biz rhythm that is not necessarily what we planned for
  • Like many transformation which look at people, process and technology:
    The 3 building blocks on the left have been synthesized to create a culture that is user-focused and insight-driven, aligning our everyday work to strategy.
    Examples for each
    Data –
    Tools –
    Governance -
    Culture – making everything stick
    Data shows that companies with unsupportive cultures and poor strategic alignment significantly underperform their competitors

    3 types of insights with the business insight the holy grail
    Business Insights - What drives value to our users and shareholders
    Organizational/Behavioural Insights - What structure & governance would best support our business
    Data/Infrastructure Insights - What data would best support our business & strategy

  • Pieces of the puzzle
    Defining strategy is not a one-off process. It’s an iterative process based on the feedback & results we receive but also the changing environment.

    “ Ideals are not sufficient. The biggest failing of the average organization is usually its inability to execute…”
    “Analysis is not panacea; good judgement is needed in assessing results”

    “The purpose of business analytics is to deliver value by supplying information that spurs action”

    “Any organisation that wants to be relevant must clearly articulate and evolve its business model”

    “Relying on intuition and experience to drive business is not enough. We are working in a knowledge economy…”
  • The benefits
    Linkage between strategy and execution. Strategy trickles all the way down. nimble
    Culture - Transparency and collaboration - language of communication
    Decisions based on data more profound
    Transformation - becoming business as usual.

  • Skype's Business Transformation - Chief Strategy/Innovation Officer Summit

    1. 1. Yuval Dvir DvirYuval
    2. 2. A B Flexibility, Market Dynamics, Time, Metrics.. Remembering…
    3. 3. Point A?
    4. 4. Contents
    5. 5. • Is having a good strategy enough? • Organization are a human phenomenon - behaviours, feelings, mind-sets, motivation • …solid business principles CULTURE
    6. 6. Strategy Communication Leadership Data Transparency CultureCollaboration Innovation Business Result
    7. 7. • Data • Technology • Technical Skills
    8. 8. Data Information Knowledge
    9. 9. Functions culture Strategy Technology Politics
    10. 10. • Metrics • Transparency & Traceability • Business Rhythm
    11. 11. • Exec Support • Corporate Wide • Center Stage Baby Steps
    12. 12. • Communication & Messaging • Perception • Engagement & Personal Development
    13. 13. • Format • Design & Visualization • Constant Feedback
    14. 14. • Gradual Change & Adoption • Embedded in Daily Activities • Focused Effort, Data-Driven & Reports © Transport for London
    15. 15. 1. Metrics
    16. 16. • Common Consistent Language • Marketing, Product & Engineering • Common Goals, Metrics, Understanding and View
    17. 17. • Feedback Loop • Easier Steer & Context • Focus on Value • One source of truth • Data culture • Connect strategy with execution
    18. 18. Benchmark Data Relevant external data can be used as benchmark. (competitors, market data and comparable divisional data). Process Clear x-functional business rhythm with defined ownership & accountability and a data->insight->action->review cycle. Contributors A list of clients and functional contributors (along with the proportion) can be available for each metric. Attributes Each applicable metric can be broken down by: geography, time, platform & version, function & other segmentation. Forecast, Target & Trend Move from a rear view mirror into forward looking view. Drivers The drivers for each metric can be modelled and mapped to create the “value streams”. METRIC Metrics are operationalized through dashboards, reports and analysis tools
    19. 19. 2. Transparency
    20. 20. Metrics Strategy Effort • Link to Strategy, Execution & Data • Effort Allocation at all levels • Transparent, traceable and reviewed
    21. 21. 3. Business Rhythm
    22. 22. Insights Review Data Action X-Functional • Innovation • Platform to Collaborate • Business Routine & Rhythm
    23. 23. • Routine • Access • Business Routine & Rhythm
    24. 24. Governance Tools Data Strategically Aligned Organization Culture
    25. 25. Corporate Team Define strategy Define actions Review, monitor, track Align execution to strategy
    26. 26. Benefits • Strategy to Execution Alignment • Culture & Decisions • Business Results • Transformation becoming BAU
    27. 27. Thank You! DvirYuval