This document discusses executing a data-driven functional strategy at the tactical and operational levels. It begins by outlining how corporate purpose has evolved from solely focusing on shareholders to also considering stakeholders such as customers, employees, suppliers, and communities. Several graphics show trends around demographics, internet usage, and the impact of automation. The presentation emphasizes linking data across processes to identify execution gaps and opportunities for improvement. It stresses the importance of executive sponsorship to drive change, noting that what leaders say, do, and reinforce is critical for success. Mistakes sponsors can make are also outlined.

1. Executing a Data-Driven
Functional Strategy
JENNIFER LOUGHRIDGE
DIEDERICK BADON GHIJBEN

2. Nov-22 © Loughridge Transformations Ltd 2
How to implement and
sustain a data-driven
Functional Strategy at
tactical and operational
levels?

3. 1
“A corporation functions to serve their
shareholders and maximise profits.”
Business Roundtable 1997
Corporation
Nov-22
© Celonis

4. 2
“Purpose of a Corporation is to lead companies for the
benefit of all stakeholders – customers, employees,
suppliers, communities and shareholders.”
Business Roundtable 2019
Corporation
And mother earth
Nov-22
© Celonis

5. Demographics
55 to 64: 12.8%
(42.1 million)
15 to 24: 13.1%
(43.5 million)
In 2018, for the first time in history, the number of people
on the planet over the age of 65 was larger than the
number of children under the age of 5.
Projected growth of jobs in the US 2020 – 2030
11.9 million
43.5 million – 42.1 million =
1.4 million increase of people in the potential labour force
11.9 million - 1.4 million =
10.5 million net shortage of people to fill jobs
Fewer people = less workers
3
Nov-22
© Celonis

6. 4
Source: https://www.visualcapitalist.com/what-happens-in-an-internet-minute-in-2019/
This is what
happens in an
internet minute …
Nov-22
© Celonis

7. 9
Intelligent enterprises elevate employees to focus on higher-value tasks
High-Value Tasks
Repetitive Tasks
Automation
Time
Productivity
1960s – 1980s 1990s – 2000s 2000s – 2010s 2010s – 2020s
Intelligent
enterprises
Digital
transformation
Business process
automation
Industrial
automation
Nov-22
© Celonis

8. Although 51% of job activities can be
automated, less than 5% of jobs are
entirely replaceable by machines.
Source: James Manyika, et al., "Harnessing Automation for a Future That Works,” McKinsey Global Institute, 2017
Nov-22
10
© Celonis

9. 11
See It
The Problem Every Business Faces
How the process
was designed
How companies
think the process runs
How the process
actually runs
01 02 03
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© Celonis

10. 12
Benefits
Potential
01 | Legacy substitution
02 | Process
standardisation/enhancement
03 | Cross-functional
reengineering/integration
04 | Transformation
Complexity
/Risk
Levels of Transformation
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© Celonis

11. 13
One Process at a Time
What if…
You link all the data?
Identify & eliminate execution
gaps one process at a time
Visualise parallel and
interconnected processes
Uncover “butterfly effects”
hidden in your business
Reconstruct entire networks
across locations
Provide traceability and visualise
m:n relationships
Connect objects (e.g., events,
dependencies, process relationships)
across multi-system environments
2+ Processes at a Time Signal Link Execution Graph
Nov-22
© Celonis

12. 14
Executive sponsors are the #1 critical success
factor
02
Committed and highly
qualified team
Three most crucial success factors for change
01
Executive sponsor
03
Business knowledge
about the processes in focus
94%
of customers with
successful change have
an Executive sponsor.
63%
of customers consider an Executive
sponsor the most crucial success
factor.
Change does not happen automatically, it needs
leadership sponsorship & committed teams
Nov-22
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13. 15
Find your sponsor
in the hierarchical and network organisation
“Old school”
Information flows, and change happens, via hierarchy
Reality
Organisations work according to social network theory
Finding the right sponsor is increasingly challenging: organisations are networks, the hierarchy is fading.
Nov-22
© Celonis

14. SO, WHAT DOES A SPONSOR DO?
§ SAY: Express commitment to the change by what they say publicly and
privately
§ DO: Model commitment to the new behaviours by the resources they allocate
and the decisions they make
§ REINFORCE: by applying rewards and consequences
§ 10% depends on what leaders SAY
§ 20-30% depends on what leaders DO
§ 50-60% depends on what REINFORCE
Nov-22 © IMA Worldwide 4
SAY
1x
DO
2x
REINFORCE
3x

15. MISTAKES SPONSORS MAKE…
§ Sponsors say “change” but reinforce “status quo.”
§ Some tasks belong to the Sponsor, and they should personally deliver on them:
1. Establishing & Communicating the Case for Action
2. Participating in goal-setting
3. Allocating resources
4. Concentrating on their own direct reports
5. Applying rewards and consequences for their direct reports
6. Monitoring progress
§ Sponsors sometimes believe they can deliver change without changing their
own behaviour.
Nov-22 © IMA Worldwide 5

16. Nov-22 © Loughridge Transformations Ltd 6
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Jennifer
www.linkedin.com/in/jennifer-loughridge
jennifer.loughridge@loughridgetransformations.com
Diederick
www.linkedin.com/in/diederickdelivers/
d.badonghijben@celonis.com
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Nov-22 © Loughridge Transformations Ltd 7