Dynamic Leaders

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The impact of global economic conditions are having a direct impact on how Australian leaders need to guide the people through uncertain and challenging times times

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  • Good AfternoonBy way of introduction my name is Rory Gregg, I'm a Partner within the Business Consulting Practice for Grant Thornton and am based in Sydney.Next slide
  • Good AfternoonWe are a International Professional Services firm with offices in most capital cities within Australia.We have 120 partners and over 1500 professional services employees supporting our client across the full spectrum of Assurance, Tax and Advisory Services.More often than not we find ourselves working closely with the Board, the CEO and their executive leadership team to identify and overcome a broad range of complex problems they may face in leading their businesses.The past three years has seen unprecedented changes and realignment of the global economy. We've seen the dramatic shifts in the economic capital Eastward, whilst the West continues to recover from the sovereign debt crisis, Further more, the political instability in Syria combined with the uncertainty surrounding the future of a number of Australia's industries continues to weigh heavily on the minds of business leaders across Australia. Today I wanted to spend some time sharing with my some of the emerging tends and key challenges facing business leaders in Australia. I'd also like to share with you some of the strategies that we believe dynamic leaders should consider as they continue to navigate their way through these challenging and uncertain times….. Next slide
  • The Global Dynamism Index is effectively a series of economic and business related performance indicators that analyses and measures the resilience of 50 diverse economiesThe index also ranks the capacity of these 50 economies to recover from a change in economic circumstances.The Index (published earlier this month) conducted by GT in collaboration with the Economist Intelligence Unit, the Worlds Bank, Thompsons Financial and UNESCO. 406 Senior Business leaders from the respective economies also play a pivotal role in providing the business perspectives.The Index ranks the 50 economies from 1 to 50 using a weighted index. Basically the higher the number the better the resultThe reason I've included the GDI results in todays presentation is because it provides an insight into how Australia, and more importantly Australian Business leaders are performing against other economies during these uncertain times.I hope that these results will also highlight to you some of the key areas that you as business leaders need to consider as Australia begins to take it's place in the new commercial order.So lets get straight into it……
  • So just quickly let me take you through the key categories of performance areas.Business Environment performance indicators focus on…Foreign trade and exchange regimes and controls. These indicators focus on Policy, legal and regulatory riskAlso covers political stability Labour & Human Capital performance indications focus on….Focus on workforce productivity growthUnemployment School, life expectancy% of population under 30 years of ageScience and Technology performance indicators focus on ….Broadband subscribers per 100 inhabitantsGrowth of Broadband subscriptionR&D as a % of GDPTotal IT spending growthFinancing EnvironmentQuality of overall financial regulatory systemAccess to medium term capitalGrowth of value of inward M&A dealsPrivate sector credit and percentage of GDPInward direct investment growthCorporate Tax burdenEconomic GrowthReal GDP growthPrivate Consumption per headChange in value of stock market index
  • Regional InsightsRegional SummaryNordic nations are most dynamic globally followed by North America, the G7 , Western Europe and Asia Pacific above average.Eastern Europe ranks just below Latin America and Growth 8Middle East & Africa rank lowestEmerging EconomiesThere is no doubt that growth prospects are healthier in emerging economies such as china, Latin America and IndiaOver the next 5 years the IMF expects emerging economies to grow at around 7% to 8% per annum compared to 3.2% in mature economiesDespite this, emerging economies still have their challenges for example the Indian government's battle with corruption, high inflation, and the declining value of the local currencyWe see some of these emerging economies tapering off as they begin to grapple with the changing environment, China's growth is slowing as debt begins to riseMature economiesThe 10 economies that sit at the top of the rankings vary significantly and include, countries from Asia pacific such as Australia, Singapore & Korea. A further five from Europe, being Austria, Germany, Finland, Sweden and Switzerland. The US from North America and Israel from the Middle east.
  • Country InsightsSingapore emerges as the most dynamic economySingapore is perfectly paced to act as a gateway between west and eastBusiness and economic prospects are supported by an open and transparent financing environment and a well educated workforceFinland, Sweden, Israel and Austria complete the top 5United States ranks 10 and China ranks 20US ranked highest in Financing ahead of Canada, ranks 2 in G7 and behind GermanyNot surprisingly, China ranked highest in Economics a growth and was ranked 2 in G8 behind Korea. They ranked 6th in Asia Pacific For those of you who were wondering, the United Kingdom was ranked 32ndAustralia ranked 6th and 2 in Asia Pacific behind Singapore. Highest for political stability (96) and lowest in growth of inward M&A deals (6)
  • Country InsightsSingapore emerges as the most dynamic economyFinland, Sweden, Israel and Austria complete the top 5United States ranks 10 and China ranks 20Australia ranked 6th and highest for political stability (96) and lowest in growth of inward M&A deals (6)
  • Good AfternoonBy way of introduction my name is Rory Gregg, I'm a Partner within the Business Consulting Practice for Grant Thornton and am based in Sydney.GT is a global Professionals Services firm that specialises in providing our clients with a broad range of Assurance, Tax and Advisory ServicesMore often than not we find ourselves working closely with the Board, the CEO and his or her executive leadership team to identify and overcome a broad range of complex problems they may face in running their businesses.In Australia we have over 120 partners and 1,500 staff located in all major capital cities.Our core clients include a broad range of public and privately held companies, both Government and Non Government Today I wanted to talk to you about the role I believe CIOs can and should play in supporting the Board and the CEO in leading and managing organisationsNext slide
  • Business Operating Environment (91)Performed in the top 15 % surveyed (96 for Political Stability)Economics & Growth (96)Real GDP growth was low compared to other top performing economies but high in private consumption per head.Science & Technology (51)R&D as a % of GDP was average compared to other top performing economiesLabour & Human Capital (64)Labour productivity was lower than other top performing economies (eg. China 90) & scored low on % of population under 30.Financing Environment (63)Ranked well in the quality of overall financial regulatory systems but not so well in growth in value of inward M&A deals
  • Good Afternoon
  • CEO FocusLets start by looking at the CEO Focus and link this back to how we believe CIO can take a greater role in supporting the business.Standard prioritiesStrategyGrowthCustomer RetentionQualityStructureAgilityScalabilityAlignmentPeopleTalentRewardEngagementProcess Customer CentricEfficiencyLeanTechnologyMobilitySecurityFlexibilityWhat does this mean for the CIOStrategyAligning technology to business strategyInnovation (Customer & Quality)StructureBusiness partneringAligned to business needsOutsources vs InsourcedPeopleBusiness capabilitiesAlternative Talent sourcing modelsProcess Placing the customer at the heart of the processRemoving barriers through technologyTechnologyFocusing on what mattersGetting the basics rightChallenging the business (innovation)
  • CEO FocusLets start by looking at the CEO Focus and link this back to how we believe CIO can take a greater role in supporting the business.Standard prioritiesStrategyGrowthCustomer RetentionQualityStructureAgilityScalabilityAlignmentPeopleTalentRewardEngagementProcess Customer CentricEfficiencyLeanTechnologyMobilitySecurityFlexibilityWhat does this mean for the CIOStrategyAligning technology to business strategyInnovation (Customer & Quality)StructureBusiness partneringAligned to business needsOutsources vs InsourcedPeopleBusiness capabilitiesAlternative Talent sourcing modelsProcess Placing the customer at the heart of the processRemoving barriers through technologyTechnologyFocusing on what mattersGetting the basics rightChallenging the business (innovation)Leaders should also know their strength and the strengths of their team
  • Section - What Dynamic Organisations need to consider1. Findings from a recent Australian Industry Group survey show more than 80 per cent of large businesses are already engaged in some way with Asia. Only half of mid-sized companies have plans to start or expand their connections2. According To Grant Thornton, on 3.4 per cent of small to medium sized enterprises export to China3. China is moving to be a much more consumption-based economy so they've got more of a need for services and technology and that's where a lot of the mid-market and SMEs have a good capability
  • CEO FocusLets start by looking at the CEO Focus and link this back to how we believe CIO can take a greater role in supporting the business.Standard prioritiesStrategyGrowthCustomer RetentionQualityStructureAgilityScalabilityAlignmentPeopleTalentRewardEngagementProcess Customer CentricEfficiencyLeanTechnologyMobilitySecurityFlexibilityWhat does this mean for the CIOStrategyAligning technology to business strategyInnovation (Customer & Quality)StructureBusiness partneringAligned to business needsOutsources vs InsourcedPeopleBusiness capabilitiesAlternative Talent sourcing modelsProcess Placing the customer at the heart of the processRemoving barriers through technologyTechnologyFocusing on what mattersGetting the basics rightChallenging the business (innovation)Leaders should also know their strength and the strengths of their team
  • CEO FocusLets start by looking at the CEO Focus and link this back to how we believe CIO can take a greater role in supporting the business.Standard prioritiesStrategyGrowthCustomer RetentionQualityStructureAgilityScalabilityAlignmentPeopleTalentRewardEngagementProcess Customer CentricEfficiencyLeanTechnologyMobilitySecurityFlexibilityWhat does this mean for the CIOStrategyAligning technology to business strategyInnovation (Customer & Quality)StructureBusiness partneringAligned to business needsOutsources vs InsourcedPeopleBusiness capabilitiesAlternative Talent sourcing modelsProcess Placing the customer at the heart of the processRemoving barriers through technologyTechnologyFocusing on what mattersGetting the basics rightChallenging the business (innovation)Leaders should also know their strength and the strengths of their team
  • CEO FocusLets start by looking at the CEO Focus and link this back to how we believe CIO can take a greater role in supporting the business.Standard prioritiesStrategyGrowthCustomer RetentionQualityStructureAgilityScalabilityAlignmentPeopleTalentRewardEngagementProcess Customer CentricEfficiencyLeanTechnologyMobilitySecurityFlexibilityWhat does this mean for the CIOStrategyAligning technology to business strategyInnovation (Customer & Quality)StructureBusiness partneringAligned to business needsOutsources vs InsourcedPeopleBusiness capabilitiesAlternative Talent sourcing modelsProcess Placing the customer at the heart of the processRemoving barriers through technologyTechnologyFocusing on what mattersGetting the basics rightChallenging the business (innovation)Leaders should also know their strength and the strengths of their team
  • CEO FocusLets start by looking at the CEO Focus and link this back to how we believe CIO can take a greater role in supporting the business.Standard prioritiesStrategyGrowthCustomer RetentionQualityStructureAgilityScalabilityAlignmentPeopleTalentRewardEngagementProcess Customer CentricEfficiencyLeanTechnologyMobilitySecurityFlexibilityWhat does this mean for the CIOStrategyAligning technology to business strategyInnovation (Customer & Quality)StructureBusiness partneringAligned to business needsOutsources vs InsourcedPeopleBusiness capabilitiesAlternative Talent sourcing modelsProcess Placing the customer at the heart of the processRemoving barriers through technologyTechnologyFocusing on what mattersGetting the basics rightChallenging the business (innovation)Leaders should also know their strength and the strengths of their team
  • Despite the climate of uncertainty, Australian business (and their leaders) continue to perform.Recent results from the ABS suggest that growth of 3.7 for the Jun Quarter led by the mining, banking and healthcare sectors. Reinforcing the broad impact of our economic strength86% of ASX 200 were profitable in their most recent periodReal labour costs are trending upwards, rising 1.4% in the quarter, which is hardly surprising given a full employment scenario in an economy growing strongly.Australian Leaders should..Risk ManagementSpread their risk, and make smaller moves that can be easily completed in short time scales.Incremental PlanningAvoid maintaining the status quo however avoid embarking on any grand untested strategies and plansBe prepared to make frequent adjustments to your plans, and keep a watchful eye on both your clients and the marketTechnology Enabled Service DeliveryService Delivery should not be constrained by you technology or workforce capabilities.Flexible Workforce PlanningDiversified Workforce; leaders should working across a broader portfolios of responsibilities ( client and non client integration)Workforce Flexibility; Flexible not "casualised" workplace arrangementsWorkforce Reskilling; Reskilling the workforce especially aging workers to respond to changing needs.
  • Good AfternoonBy way of introduction my name is Rory Gregg, I'm a Partner within the Business Consulting Practice for Grant Thornton and am based in Sydney.GT is a global Professionals Services firm that specialises in providing our clients with a broad range of Assurance, Tax and Advisory ServicesMore often than not we find ourselves working closely with the Board, the CEO and his or her executive leadership team to identify and overcome a broad range of complex problems they may face in running their businesses.In Australia we have over 120 partners and 1,500 staff locates in all major capital cities.Our core client include a broad range of public and privately held companies, both Government and Non Government Today I wanted to talk to you about the role I believe CIOs can and should play in supporting the Board and the CEO in leading and managing organisationsNext slide
  • Dynamic Leaders

    1. 1. Leading Through Uncertain 24 October 2012Times, what differentiates Rory Greggdynamic organisations Partner – Operational Advisory Grant Thornton Australia www.rorygregg.com @rory_gregg #cpacongress
    2. 2. Assurance Tax Advisoryover 120 partners &1,500 professionalsHelping dynamic leadersgrow their businesses
    3. 3. AGENDA Global Dynamism Index (GDI 2012) Challenges Facing Australian Business Leaders Strategies for leading through uncertainty Questions
    4. 4. AGENDA Global Dynamism Index (GDI 2012) Challenges Facing Australian Business Leaders Strategies for leading through uncertainty Questions
    5. 5. What is it Global Dynamism Index (GDI 2012) “The GDI is a series of performance indicators that analyses and measures the resilience of 50 diverse economies and their capacity to recover from a change in economic circumstances.”
    6. 6. Global Dynamism Index Business Operating Environment Labour &Economics & Human Growth Capital Financing Science &Environment Technology
    7. 7. Key Findings Regional Insights (GDI 2012) 66.1 Nordic 62.9 North America 59.2 Western 55.7 Europe Eastern Europe 51 Middle East and Africa 59.3 Asia Pacific 60 53.8 G7 Latin America 55 Growth8 57 All Countries
    8. 8. Key Findings Country Insights (GDI 2012) United Sweden States Finland China Austria Singapore IsraelBest - Business operatingenvironment Australia- political stability (96)Worst – Financing environment- inbound M&A deals (6)
    9. 9. Key Findings Where Australia Stands? 66.1 55.7 Eastern Nordic Europe 62.9 Top 3 Ranking North 59.2 America Western 1 - Singapore (72.1) Europe 2 - Finland (70.5) 3 - Sweden (69.6) Australia & New Zealand 59.3 Asia Pacific 6 - Australia (65.6) 51.0 11 - New Zealand (63.9) 53.8 Middle Latin East and America Africa Bottom 3 Ranking 48 - Greece (40.2) 49 - Nigeria (40.2) 50 - Venezuela (37.4)
    10. 10. AGENDA Global Dynamism Index (GDI 2012) Challenges Facing Australian Business Leaders Strategies for leading through uncertainty Questions
    11. 11. What does this mean for Australia Global Dynamism Index Business Labour & Operating Human Capital Environment (91) (64) Top 15% of economies Aust labour productivity Strong political stability rates and % of workforce under 30 is low compared to high performing economies Financing Economics & Science & Environment (63) Growth (59) Technology (51) Ranked low in growth Real GDP growth low R&D as a % of GDP of value of inward M& compared to top was low compared to A deals but high in performing economies top performing financial regulatory economies systems
    12. 12. BusinessEnvironment 91 Challenges facing Australian leaders Increased focus in compliance & risk High corporate tax rates Cost of doing business in Australia
    13. 13. Labour & Human Capital Challenges facing 64 Australian leaders Attracting & retaining talent Increase pressure on wage costs Constrained by traditional resourcing models Replenishing talent pool
    14. 14. FinancingEnvironment 63 Challenges facing Australian leaders Accessing capital for growth Identifying suitable M&A targets Appetite for risk
    15. 15. Economics & Growth 59 Challenges facing Australian leaders Population size continue to constrain GDP growth Low productivity rates Geographical isolation
    16. 16. Science &Technology 51 Challenges facing Australian leaders Under investment in technology Over reliance on US/Europe to lead technology innovation Slow to adopt new technologies & ways of working
    17. 17. AGENDA Global Dynamism Index (GDI 2012) Challenges Facing Australian Business Leaders Strategies for leading through uncertainty Questions
    18. 18. CEO Strategic Planning Areas of focus Refocus Agility Diversity Customer Centric R&D & Innovation Planning Scalability Mobility Efficiency Customised solutions Risk Management Alignment Retention Lean Flexibility
    19. 19. Dynamism and Leadership Focus on what matters to the business Refocus Agility Diversity Customer Centric R&D & Innovation Planning Scalability Mobility Efficiency Customised solutions Risk Management Alignment Retention Lean FlexibilitySTRATEGY STRUCTURE PROCESS TECHNOLOGY PEOPLE Business partnering Business capabilities Placing the customerFocusing on whatAligning technology to at thebusiness strategy heart of the process matters Aligned to business needs Alternative talent sourcingInnovation (Customer & Removing barriers through the basics right Getting models Outsources vs InsourcedQuality) technology Challenging the business (innovation)
    20. 20. Dynamism and Leadership Focus on what matters to the business 80% large businesses already engaged with Asia. Only half of mid-sized companies have plans to expand their connections Only 3.4% of small to medium sized enterprises export to China China’s move to consumption-based economy = more need for services and technology where mid-market and SMEs have good capability
    21. 21. Refocus Diversity R&D & Innovation Planning Mobility Customised solutions Risk Management Retention Flexibility Leadership Myths Leadership RealitiesConquer local markets before growing Australia’s population limits growth optionsoffshore for many businesses 80 percent of large Australian businesses accept the need to expand into Asia1 Don’t be afraid of doing business in international markets Strengthen your ties and business in Asia and emerging economies 1 Grant Thornton Australia, 2012
    22. 22. Refocus Diversity R&D & Innovation Planning Mobility Customised solutions Risk Management Retention Flexibility Leadership Myths Leadership RealitiesEstablishing aspirational goals is the key to Don’t mistake vision for strategyguiding an organisation to success Focus on iterative and rapid execution to achieve performance improvement Don’t be afraid to change tactics or strategy
    23. 23. Refocus Diversity R&D & Innovation Planning Mobility Customised solutions Risk Management Retention Flexibility Leadership Myths Leadership RealitiesImproving existing products and efficiency A readiness to adapt is the lowest risk pathis a low risk path to future profits Fluctuating terms of trade, looming skills shortages and new technologies are major sources of future instability Need to constantly question assumptions and explore innovative alternatives
    24. 24. Refocus Diversity R&D & Innovation Planning Mobility Customised solutions Risk Management Retention Flexibility Leadership Myths Leadership RealitiesSkilled workers are easily hired Adopt a broader range of workforce and resourcing strategies. Explore outsourcing, talent retention, flexible work models Develop tactics for lifting use of women and mature age workers. Women are paid up to 19% less than male counterparts2 2 Australian Bureau of Statistics 2012
    25. 25. Refocus Diversity R&D & Innovation Planning Mobility Customised solutions RiskManagement Retention Flexibility Leadership Myths Leadership RealitiesTraining staff is too expensive, it is easier Most organisations invest far too little onto hire someone with the right skills employee training Demographics are working against youWorkforce and talent retention strategiesare only necessary for large complex Workforce retention has never been moreorganisations important Retain key talent by providing alternative growth and career opportunities Training and retaining strategies are the least disruptive, lowest risk, and offer lower total costs
    26. 26. Refocus Diversity R&D & Innovation Planning Mobility Customised solutions RiskManagement Retention Flexibility Leadership Myths Leadership RealitiesWorkforce productivity only relates to the Productivity is not just about wages. Itnumber of hours employees work divided depends on a combination of factors.by total output Look at end to end workflows Consider impact of employee empowerment and engagement, training, workforce utilisation, output quality and customer satisfaction measures3 3 Dept of Workplace, Employment and Education
    27. 27. Refocus Diversity R&D & Innovation Planning Mobility Customised solutions RiskManagement Retention Flexibility Leadership Myths Leadership RealitiesWe invest a lot in technology, and it is a Innovation is not linked to IT infrastructure. It is ahigh priority cultural issue IT investment has plateaued over the past 18 months. Government sector performing worst, Energy sector highest4 IT infrastructure can sometimes make it harder to change workflows, and stifle innovation Focus on the customer experience, rather than internally focused projects 4 Gartner 2012
    28. 28. Refocus Diversity R&D & Innovation Planning Mobility Customised solutions RiskManagement Retention Flexibility Leadership Myths Leadership RealitiesNew online technologies & data analytic 3.3% of Australia’s GDP is generated throughsolutions are not a core part of Australian the internet compared to 8.3% in the UK. 5businesses Data analytic solutions is the new frontier in helping business understand their customers Business leaders need to invest in technologies that support the design of innovative solutions to customer not business issues. 5 HBR 2012
    29. 29. Strategies for leading through uncertaintyAustralian business leaders need to focus on what matters… Manage Technology Flexible Risk Incremental Enabled Workforce Prudently Planning Service Delivery Planning
    30. 30. AGENDA Global Dynamism Index (GDI 2012) Challenges Facing Australian Business Leaders Strategies for leading through uncertainty Questions
    31. 31. RORY GREGG Partner – Operational Advisory T +61 2 8297 2531 E rory.gregg@au.gt.com #CPACongress @rory_gregg www.rorygregg.com© Grant Thornton International. All rights reserved.

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