Keynote presentation at the annual ACT Knowledge Management Conference on business transformation

1. 12th Annual actKM Conference,
Melbourne Australia 11th October 2011
Royal Melbourne Institute of Technology
KEYNOTE SPEECH: PREPARING OUR
ORGANIZATIONS FOR THE FUTURE
Matthew Tukaki, CEO
The Sustain Group

2. Themes…
- What impacts CEO’s at night
- Changing business and
enterprise dynamics
- Case study: Employment
Business
- Network example: UNGC
- What does this all mean in the
context of KM
www.sustaingroup.net
www.sustaingroup.net

3. Social Media Payroll tax
Executive loss
Demographics Political Environment
Invoicing
Cash flow YouTube
Market share
Climate change
Gillard’s polling
Coalition policies
performance
Competitors
Carbon Pricing
Suppliers
Productivity
Global Economy
Death
Cost controls The Chinese Economy
Revenue diversity
The Board Skills demand The Banks
Buyer behaviour
US Job Numbers Interest rates
Japans
High wage demand
Increased compliance
recovery
Greece Leadership
The Price of Iron Ore
Sales
US Unemployment Early election
Tax Branding
Inflation
Public Relations
Budget
To grow or not to grow
Blow outs
Staff well being Governance
Court
Partners
Rulings
Twitter
Corruption
Trade Barriers
Security IT Systems
Customer Attrition and Gain
www.sustaingroup.net
www.sustaingroup.net

4. The interconnectivity of our economies means
The world is changing when one or other falters, so do the others
The rise of social media is challenging our
business models
 Large global scale challenges becoming
domesticated
 The rise and fall of the dollar
 Changes in commodity prices
so much faster
 Less or more Government regulation
And it doesn’t matter if
you run a corporation, a
small business or are in
the public sector...what
impacts one impacts us all...
www.sustaingroup.net
www.sustaingroup.net

5. Brand one
Additional
• Extensive workforce
country brand • Every State / Capital City
Brand two • Regional Australia
Additional • Longest serving staff: 33 years
country brand
• Large general management team
• Multiple layers of middle management
Additional Training
service line services • Operations management
• Subsidiary executive management and middle
Consulting management teams
services
Brand one
• Major Interactions with:
Solution
services • Europe
Governing Brand two • USA
Board / • Africa
Committee
• Asia
Brand three • Other solution and service line companies
Before
either directly or partially owned by the
Finance Brand four Multiple outlets company
IT Brand five Multiple outlets
Marketing Brand six Multiple outlets
Operations Brand seven Multiple outlets
www.sustaingroup.net
www.sustaingroup.net

6. Before you can sort out the problem you need to
know, on a scale this size, how to swallow an
elephant…
The brand was old tired … but still relevant…the CRM
was now running the oldest version of its type in the
world…in fact, the Software Development company ...disparate revenue base...
had us as the largest support client….running the
oldest and only version of the software!
Loss of client and customer
knowledge
Loss of market share
Lack of decision making
Focus on administration and not growth
Tired brand …Staff turnover in the lower
Loss of core focus ranks was high…Staff
Old systems morale in the middle ranks
 Increasing competition was low but indifference
 Lower margins had crept in
 Tighter markets
www.sustaingroup.net
www.sustaingroup.net

7. As the business focussed on
everything it wasn’t the
Core business become less foundation began to give
of what the business did way…one of those foundations
was our people and clients…the
right people
We tried to turn our core business into the things we didn’t do
When the foundation of your business is
compromised the roof collapses….
www.sustaingroup.net
www.sustaingroup.net

8. The external factors
 The GFC began to bite and unemployment was expected to trend up to 7-8% in some
economists forecasting
 People and organizations simply stopped buying
 In New Zealand the economy had already begin to stagnate
 The United States was a basket case
 Chinese growth began to moderate at its growth rate
There was a simple truth: if your market is dwindling, you are facing increasing
competition and economic pressures are adding complexity…your business is in trouble.
www.sustaingroup.net
www.sustaingroup.net

9. Integrated
Additional country
brand
services and • One single leader at the top
solutions business
• Retrenched 90% of the senior management
team
Additional country • Integrated the brands and site network into a
brand seamless reporting system
• Formation of national teams that would meet
virtually every Monday morning and then on a
Additional service 4 Primary
line locations Friday afternoon
• Took more administration away from the sites
in order to free up time
Integrated • Promoted mid level branch and area managers
CEO / Executive solutions business into executive roles
Chairman • Began the replacement of the IT and CRM
Brand one
systems
Integrated
services business • Introduced a new social media strategy
Nationalised key accounts, with National
Brand two Account Managers in different geographic
Finance & locations
operations
After
Brand three
IT
Integrated site
Brand four
network
Marketing
www.sustaingroup.net
www.sustaingroup.net

10. The profit imperatives…Diversification
1. The formation of dedicated account management teams within the Public Sector to increase
the % share of revenue from 80% reliance on the corporate sector to achieving a balance of
70 / 30 in year one and 60 / 40 in year two. As the corporate sector recovered, you could
then manage the 40% of sector revenue from Government and continue to increase the
volume of corporate receipts which in turn increases overall profitability.
www.sustaingroup.net
www.sustaingroup.net

11. Social Media Payroll tax
Executive loss
Demographics Political Environment
Invoicing
Cash flow YouTube
Market share
Climate change
Gillard’s polling
Coalition policies
performance
Competitors
Carbon Pricing
Suppliers
Productivity
Global Economy
Death
Cost controls The Chinese Economy
Revenue diversity
The Board Skills demand The Banks
Buyer behaviour
US Job Numbers Interest rates
Japans
High wage demand
Increased compliance
recovery
Greece Leadership
The Price of Iron Ore
Sales
US Unemployment Early election
Tax Branding
Inflation
Public Relations
Budget
To grow or not to grow
Blow outs
Staff well being Governance
Court
Partners
Rulings
Twitter
Corruption
Trade Barriers
Security IT Systems
Customer Attrition and Gain
www.sustaingroup.net
www.sustaingroup.net

12. Finally at the corporate level…
1. Business and industry are finding places to cohabitate and share best practice and
knowledge:
2. The United Nations Global Compact: the worlds largest corporate citizenship initiative
 The Environment
 Anti-Corruption
 Human Rights
 Labour
3. Matthew Tukaki, Australian Representative to the UNGC: Rio Tinto, Nestle, ANZ, Westpac,
Woolworths, KPMG, CPA Australia, Plan International, NAB, BHP, xStrata
4. Establishment of three cross sector Leadership Groups
5. Outreach programs to each, educate and share best practice
www.sustaingroup.net
www.sustaingroup.net

13. www.sustaingroup.net
www.sustaingroup.net

14. Cohabitation in new knowledge networks...
It is essential that those who understand the importance of responsible
behaviour have the necessary strength and capacity to deliver real change.
Building this expertise requires the establishment of networks and the
building of trust between different companies.
I know that many of you are members of the Global Compact Network
Australia, which has now grown to become Australia’s strongest
voluntary corporate citizenship initiative.
I have always believed that bringing together business leaders from different
sectors into environments where they can share best practice and learn from
each others’ mistakes is the key to raising the bar.
Understanding that responsible business is as much about cooperation as
competition is crucial if we are to move forward.
H.R.H The Prince of Wales
www.sustaingroup.net
www.sustaingroup.net

15. Still about what you have and where it resides which informs
how to best use it which informs how to best build platforms
and repositories for storage, capture and communication…
today….I would add taking it to the next level in now using new
media and platforms to build extended networks of both
capturing and sharing knowledge…
www.sustaingroup.net
www.sustaingroup.net

16. Matthew Tukaki
matthew.tukaki@sustaingroup.net
www.sustaingroup.net
www.unglobalcompact.org.au
Thank you
www.sustaingroup.net
www.sustaingroup.net