Leading through Connections

IBM Institute for Business Value

© 2012 IBM Corporation


The Global CEO Study 2012 is the fifth biennial CEO study, building
on our insights and findings over the last 8 years

2006 2008 2010 2012
2004
Expanding the The Enterprise Capitalizing on Leading through
Your turn Innovation Horizon of the Future Complexity Connections
Revenue growth is Business model Hungry for change Embody creative Empowering
Revenue growth is Business model Hungry for change Embody creative Empowering
the #1 priority
the #1 priority innovation matters
innovation matters
Customers as
Customers as leadership
leadership employees through
employees through
Responsiveness is External opportunity to Reinvent customer values
Responsiveness is External opportunity to Reinvent customer values
key competence
key competence collaboration
collaboration differentiate
differentiate relationships
relationships
Engaging customers
Engaging customers
Improving internal Innovation must be Business model Build operating as individuals
Improving internal Innovation must be Business model Build operating as individuals
capabilities as first orchestrated from innovation, global dexterity Amplifying innovation
capabilities as first orchestrated from innovation, global dexterity Amplifying innovation
step to growth
step to growth the top
the top business designs
business designs with partnerships
with partnerships

456 interviews
456 interviews 765 interviews
1709 interviews

2 © 2012 IBM Corporation


In this largest known sample, we spoke with over 1700 CEOs –
battle-tested leaders with an average tenure of 6 years

The study represents organizations in 64 countries across 18 industries

Regions Sectors

North America Australia / New Zealand Communications Industrial
Western Europe Growth Markets Distribution Public
Japan Financial Services

Note: The CEO response sample (n=1709) has been weighted based on 2010 Regional GDP of the IMF World Economic Outlook


We compared outperformer and underperformer responses and
have highlighted key differences

Three performance categories
Three performance categories Particular attention on Outperformers
Particular attention on Outperformers

Underperformers Outperformers
Low revenue growth High revenue growth
and low profitability and high profitability  No significant difference between
No significant difference between
outperformers and underperformers
outperformers and underperformers
on 82% of tested characteristics
on 82% of tested characteristics
→ Though outperformers and
→ Though outperformers and
underperformers often say the same,
underperformers often say the same,
outperformers are superior at doing what
outperformers are superior at doing what
they say
they say
→ In this study we focus on common
→ In this study we focus on common
performance factors, while we highlight
performance factors, while we highlight
Peer Performers the most significant differences between
the most significant differences between
All other performance out- and underperformers
out- and underperformers
combinations

Note: Relative performance is defined by CEO self-assessment of revenue growth and profitability compared to industry peers
Source: QB “How does the revenue growth of your organization compare to your industry peers over the past 3 years?”; QC “How does your
4
organization’s profitability (or efficiency for public sector) compare to your industry peers over the past 3 years?” © 2012 IBM Corporation


Technology has become the most important external force for CEOs
and significantly impacts how they build economic value

What we learned from all CEOs
What we learned from all CEOs What outperformers do differently
What outperformers do differently

Organizational openness introduces new
Organizational openness introduces new Outperformers embrace greater
Outperformers embrace greater
opportunities to create value through
opportunities to create value through openness, and excel at executing
openness, and excel at executing
employee collaboration
employee collaboration tough change
tough change

Outperformers strongly differentiate
Outperformers strongly differentiate
Customers reveal insights into what,
Customers reveal insights into what, through better data access, insight and
through better data access, insight and
when and how they want to interact
when and how they want to interact translation into actions
translation into actions

Outperformers are more likely
Virtually all organizations now partner,
Virtually all organizations now partner, to partner for innovation, disrupt, and
to partner for innovation, disrupt, and
creating new avenues for innovation
creating new avenues for innovation derive revenue from new sources
derive revenue from new sources


Key Discovery

For the first time, CEOs identify technology as the most important
external force impacting their organizations

External forces that will impact the organization

2004 2006 2008 2010 2012
71%
Technology factors
69%
People skills
68%
Market factors

Macro-economic
factors
Regulatory concerns

Globalization

Socio-economic factors

Environmental issues

Geopolitical factors

Source: Q1 “What are the most important external forces that will impact your organization over the next 3 to 5 years?”

Key Discovery

Internally, CEOs focus on how technology facilitates primary sources
of sustained economic value

Key sources of sustained economic value
Human capital 71%
71%
Customer relationships 66%
66%
Products / services innovation 52%
52%
Brand(s) 43%
43%
Business model innovation 33%
33%
Technology 30%
30%
Partnership networks 28%
28%
Data access / data-driven insights 25%
25%
R&D, intellectual property 22%
22%
Price / revenue innovation 19%
19%
Assets (physical, infrastructure) 15%
15%
Corporate social responsibility 13%
13%
Access to raw materials 8%
8%
Source: Q24 “What do you see as the key sources of sustained economic value in your organization?”

Outperformance drivers

Outperforming organizations are especially focused on combining
technology with the business to drive innovation and growth

Integrating business and technology for innovation

68 %
more
69%
69%

41%

Outperformers
Underperformers

Source: QE “To what extent has your organization integrated business and technology to innovate?”


CEOs create more economic value by cultivating new connections
within and across three domains



How will CEOs create more economic value by empowering
employees through values?

Organizational openness introduces
Organizational openness introduces
new opportunities to create value
new opportunities to create value
through collaboration
through collaboration

To re-balance control with openness,
To re-balance control with openness,
CEOs are focused on values,
CEOs are focused on values,
collaboration and mission

tough change
tough change


Key Discovery

The challenge CEOs face is how to balance operational control with
organizational openness to capture benefits from collaboration

Organizational impact from competing influences

48%
35% 37%

33%
30%
17%

Outperformers
Underperformers
Operational control Balance between Organizational openness
Tight operational and financial openness and control Opening of organizations internally
control to ensure compliance, and externally and empowerment of
avoid waste, and enforce standards, individuals to facilitate innovation,
norms and behaviors collaboration, and creativity

Source: Q4 “To what extent will the following competing influences impact your organization?”; CEO average is 33% on control, 23% balanced, and
44% on openness


Operational control provides value to organizations, including cost
reduction, operating margin and security

CFOs report that pressure remains high to control costs and increase efficiency

Pressure to reduce cost base 78%
78%
Need for faster decision making 74%
74%
Demand for external transparency 69%
69%
Product / service demand growth 61%
61%
Ability to attract and retain talent 56%
56%
Access to short-term liquidity / long-term capital 40%
40%

Source: IBM Institute for Business Value, The Global CFO Study 2010. Question asked: “In the next 3 years, how will the following conditions change
14 in your industry / sector?” © 2012 IBM Corporation


However, CEOs plan dramatic improvements in internal and external
collaboration, requiring organizational openness

Changing the organization

Partnering/collaborating with other organizations 53%
53%
Internal collaboration 52%
52%
Decision-making processes 43%
43%
C-suite composition, skills and responsibilities 41%
41%
Management and/or organization structure 40%
40%
Governance models 31%
31%
Values of your organization 18%
18%
Supervisory board composition 15%
15%

Source: Q19 “To what extent will you sustain or make changes to the following aspects of your organization over the next 3 to 5 years?”

Key Discovery

To re-balance control with openness, CEOs are focused on values,

Organizational attributes to engage employees
Ethics and values 65%
65%
Collaborative environment 63%
63%
Purpose and mission 58%
58%
Ability to innovate 51%
51%
Industry leadership 40%
40%
Stability of the organization 37%
37%
Work-life balance 35%
35%
Personal autonomy 31%
31%
Financial rewards 31%
31%
Work flexibility 24%
24%
Cultural diversity 21%
21%
Customizable compensation 18%
18%
Comprehensive mentoring 18%
18%
Source: Q18 “What are the most important organizational attributes to engage employees?”

Key Discovery

In this new environment, key success factors for employees include:
collaboration, communication, creativity and flexibility

Personal characteristics for employee success

Collaborative 75%
75%
Communicative 67%
67%
Creative 61%
61%
Flexible 61%
61%
Opportunity seeking 54%
54%
Analytical / quantitative 50%
50%
Technology-savvy 41%
41%
Globally-oriented 41%
41%
Assertive 25%
25%
Disruptive 16%
16%

Source: Q17 “What are key personal characteristics that help employees to be more successful in a connected economy?”


Outperformers excel at executing tough change

Ability to manage change

73 %
more
69%
69%

Outperformers
Underperformers

40%

Source: Q3 “How successful has your organization been at managing change in the past?”; average ability to manage change is 54%


So, how do you empower employees
through openness?

 Confront cultural reality
Confront cultural reality
1. Replace rulebooks with
1. Replace rulebooks with  Build values employees will live out
Build values employees will live out
shared beliefs
shared beliefs  Recalibrate controls
Recalibrate controls

 Create unconventional teams
Create unconventional teams
2. Build future-proof
2. Build future-proof  Concentrate on experiential learning
Concentrate on experiential learning
employees
employees  Empower high-value employee networks
Empower high-value employee networks

 Pursue social collaboration technologies
Pursue social collaboration technologies
3. Provide the means to
3. Provide the means to  Devise incentives that foster collaboration
Devise incentives that foster collaboration
collaborate at scale
collaborate at scale  Re-imagine employee “suggestion box”
Re-imagine employee “suggestion box”



Replace rulebooks with shared beliefs

CEO cannot manage openness through process alone. In
an open environment, employees must instinctively know Industrial
how to handle unexpected situations – choices and products
actions are best guided by shared beliefs and values business, Europe

 Confront cultural reality Purpose
Take a hard look at your corporate character – not  Build and align common values
the reputation you intend to project, but what is to promote performance with
integrity
actually revealed through the decisions and actions
 Create ambassadors among
of employees and leaders
employees
 Build values employees will live out
Activities
Allow the organization to collectively compose its
 Articulated core beliefs and
core values – to develop a shared belief system, expected behaviors
employees must help create it
 Enabled employee dialog
 Recalibrate controls across intranet
Key is determining which rules to keep and refine –  Promoted social polling and
seek to eliminate those that can be “controlled” twitter-like platform
through values


Build future-proof employees

Organizations need employees who are equipped to adapt
– those who are collaborative, communicative, creative Consumer
and flexible products
business, Europe
 Create unconventional teams
Intentionally mix specialties and expertise so that Purpose
employees rub shoulders with diverse types of people  Identify and leverage synergies
who think differently and have different backgrounds across lines of business
 Expand value created from
 Concentrate on experiential learning innovation
Broaden the range of situations and experiences that
employees are exposed to in their normal work –
Activities
incorporate external influences, like customers and
 Formed cross line-of-business
partners, wherever possible knowledge community
 Empower high-value employee networks  Engaged external partners to
Encourage employees to develop a diverse and help identify synergies
extensive network of contacts – don’t underestimate  Initiated training to promote
the value of their social networks as both potential collaboration and innovation
collaborators and prospective customers


Provide the means to collaborate at scale

As organizations globalize and the boundaries between
functions blur, organizations need more extensive, Consumer
sophisticated methods of collaborating products
business, USA
 Pursue social collaboration technologies
Ensure employees can quickly find needed Purpose
expertise and can engage the collective intelligence  Promote sustained growth
of the organization – capture experts’ knowledge in through empowerment,
responsibility and trust
searchable repositories
 Build skills and become part of
 Devise incentives that foster collaboration local communities
Be sure employees are clear on how collaboration
Activities
benefits them individually – intrinsic motivators are
 Introduced social media including
visibility and reputation, competitive spirit and comment spaces, blogs and an
shared goals idea network
 Re-imagine the employee “suggestion box”  Integrated enhanced podcasts
Use social media technologies to pursue good with two-way interactions
ideas – through open dialog, collective construction  Pursued community out-reach
of solutions and feedback on results


Case Study: Bausch + Lomb – One team focused on one mission

For over 150 years, Bausch + Lomb is an eye-health pioneer, active in over
100 countries.

Recently B+L initiated a major cultural transformation to reinvigorate and
refocus its innovative spirit:
 Providing direction through a clearly defined vision, mission and strategy
 Introducing “High Performance Behaviors”
 Inverting the classic management pyramid through an increased focus on
front-line managers
Social and mobile technologies facilitate communication and sharing of best
practices among employees:

 Let people communicate at work like they do at home, through internal
social platforms
 Get information to and from the field as quickly as possible, through early
adoption of handheld tablets for customer-facing employees
In 2011, revenues hit an all-time company high, quadrupling the
average annual growth rate.



How will CEOs create more economic value by engaging customers
as individuals?

Customers share insights into what they
Customers share insights into what they
value individually, and when and how
value individually, and when and how
they want to interact

To connect individually, CEOs plan a
To connect individually, CEOs plan a
step change in social media interaction
step change in social media interaction
and continuing face-to-face
and continuing face-to-face
engagement
engagement

Outperformers strongly
Outperformers strongly
differentiate by better data access,
differentiate by better data access,
insight, and translation into actions
insight, and translation into actions



Customers share insights into what they value individually, and
when and how they want to interact

Customers will share information if they perceive a benefit
What is your willingness to provide information in exchange for something
relevant to you (non-monetary)?

Media usage (e.g. media channels)
Demographic (e.g. age, ethnicity)
Identification (name, address)
Lifestyle (# of cars, home ownership)
Location based
Medical
Financial

Completely willing Neutral Completely disagree

Source: IBV Retail 2012 Winning Over the Empowered Consumer Study P04 “What is your willingness to provide information for each of the following
items if [pipe primary retailer] provided something relevant to you in exchange?”


CEOs identify customer insights as the most critical investment area

Drawing insight from information – Areas of improvement

Customers 73%
73%
Operations 50%
50%
Sales 49%
49%
Markets and competitors 44%
44%
Human resources 43%
43%
Supply chain 40%
40%
Risk management 38%
38%
Financials 32%
32%

Source: Q23 “In which areas do you plan to improve your ability to draw meaningful and executable insights from available information?”

Key Discovery

CEOs want to understand individual customers better and respond
faster

Change required to meet customer expectations (3 to 5 years)

Improve understanding of individual customer needs 72%
72%
Improve response time to market needs 72%
72%
Harmonize customer experiences across channels 55%
55%
Include customers / citizens across product / service life cycle 48%
48%
Increase transparency and corporate accountability 47%
47%
Increase social and environmental responsibility 44%
44%

Source: Q9 “To what
extent will your
organization

Key Discovery

To connect individually, CEOs plan a step-change from traditional to
social media, while continuing face-to-face engagement

Mechanisms to engage customers
80%

67%

57%
55%

47%
41% 40%
Today 38% 39%
In 3 to 5 years
31%

22%22%
16% 15%

Face-to-face* Social Websites Channel Call Advisory Traditional
media partners centers groups media

Source: Q8 “What are the three most important mechanisms your organization will use with customers over the next 3 to 5 years?”
*Face-to-face / sales force / institutional representatives


Outperformers are twice as good at deriving value from data – key to
engaging customers as individuals

Outperformers strongly differentiate their organizations in three key areas
Outperformers
Underperformers

108 %
more 108 %
more
84 %
more
57%
57%
54%
54% 54%
54%

31%
26% 26%

Access to data Draw insights from data Translate insight into action
Source: Q22 “How good is your organization at driving value from data? [Today]”


So, how do you win the race to gather and
convert data into customer insight and action?

 Look outside to complete the view
Look outside to complete the view
1. Let “big data” reveal the
1. Let “big data” reveal the  Connect pieces into profiles
Connect pieces into profiles
customer you never knew
customer you never knew  Empower staff with predictive analysis
Empower staff with predictive analysis

 Listen at an individual level
Listen at an individual level
2. Listen lavishly, respond
2. Listen lavishly, respond  Capture what employees see and hear
Capture what employees see and hear
with focus
with focus  Respond with relevance and speed
Respond with relevance and speed

 Leverage the fact that mobile “changes
Leverage the fact that mobile “changes
3. Be where your customers
3. Be where your customers everything”
everything”
expect you to be
expect you to be  Blend the physical and digital worlds
Blend the physical and digital worlds
 Offer value that stands out
Offer value that stands out



Let “big data” reveal the customer you never knew

Today’s analytics provide opportunities to explore big
data, detect patterns and reveal new insights – knowing Insurance
how to effectively access, analyze and use data is crucial business,
to understanding and engaging individual customers USA

 Look outside to complete the view Purpose
 Gain deeper insight into agency
Incorporate external sources, especially social
performance and customer value
media and complementary data sets from partners – drivers
blend internal and external views to discover  Build “analytical culture” across
unexpected insights business units
 Connect pieces into profiles Activities
Use analytics to distill what’s valuable from an  Identify high-value and high-
abundance of data – assemble vital pieces into potential customers and
maximize their lifetime value
holistic profiles of individual human beings through customer profiling,
micro-segmentation, and analysis
 Empower staff with predictive analytics
Embed insights where front-line decisions are made  Improve understanding of market
potential and competitive forces
– ensure data-driven decision making is part of to help make better decisions
everyday processes


Listen lavishly, respond with focus

In exchange for more insight, customers want
organizations to interact selectively and responsibly – Universal
offering what they want, when and where they want it bank, USA

 Listen at an individual level
Look beyond aggregate customer information based
Purpose
on market segmentation – use sources that allow
 Increase customer satisfaction
you to hear directly from individual customers
 Improve process, workflow
 Capture what employees see and hear effectiveness and time to market
Establish easy ways to channel clues employees Activities
observe in their customer interactions – incorporate  Introduced social network
these insights into your analysis analysis to help identify key
opinion leaders, tailor offerings
 Respond with relevance and speed and understand behavior and
Study each customer touch point and find ways to decision making
respond more selectively and create deeper  Established real-time analytics to
connections that build loyalty and advocacy assess new product penetration
and success



Be where your customers expect you to be

Mobility is elevating customer expectations: organizations
have a tremendous opportunity to create value out of Retail
immediacy – to be ready with relevant services and business,
information in the context of the moment USA

 Leverage the fact that mobile “changes everything” Purpose
Take advantage of location-based services and new  Leverage customer insights
forms of e-commerce obtained from past online
interactions to formulate
 Blend the physical and digital worlds personalized, timely experiences
Exploit augmented reality to make mobile part of Activities
integrated, multichannel customer experiences  Used mobile capabilities to
 Offer value that stands out enhance online and in-store
customer personalization and
Interact in ways that are attention-grabbing, overall engagement
meaningful and tailored to the individual  Improved customer loyalty by
anticipating needs and
establishing consistent high-
quality customer service



Case Study: Magazine Luiza – Maintaining a human touch in an
online world
Since 1957, Magazine Luiza has connected with customers in Brazil on
a human level, to fulfill dreams and provide a happy and memorable
experience.

Magazine Luiza provides an online store and more:
 In their stores, shoppers sit with associates who guide them on Internet
shopping trips
 Local stores act as social hubs and offer community services, like
cooking classes or computer training
 The online site contains a virtual salesperson “Lu”, interacting with
customers

In response to today’s customer individualization, Magazine Você
(“Your Store”), allows anyone to create personalized storefronts and share
them via Facebook or Orkut:
 Store “owners” earn a commission when selling products
 Conversion rates are running higher than the retailer’s online store

Already, more than 20,000 social stores have sprung up. Magazine
Luiza expects to touch 1 million customers within one year of launch.



How will CEOs create more economic value by innovating differently
with partners?

Commitment to external partnering has
Commitment to external partnering has
grown significantly
grown significantly


to partner for innovation, disrupt,
to partner for innovation, disrupt,
and derive revenue from new
and derive revenue from new
sources
sources


Key Discovery

Over the past few years, partnering has become increasingly
prevalent – more than two-thirds of CEOs intend to do so

Historical comparison of external partnering

25 %
more
69%
69%

55%
55%

2012
2008

Source: Q16g “What will your operating strategy be in 3 to 5 years, compared to today?” [Partner extensively / Do everything in-house]


CIOs and CMOs have diverse motivations for external collaboration

For CIOs, increased partnering is associated
For CIOs, increased partnering is associated CMOs increase use of external partnerships
CMOs increase use of external partnerships
with aadesire to refine the mix of capabilities
with desire to refine the mix of capabilities in the areas of sales, analytics, and IT skills
in the areas of sales, analytics, and IT skills

Sales contact/lead management
7%
7% 14%
14%
Partnering extensively with other
organizations Customer and data analytics
65%
65% 12%
12% 23%
23%

Direct/relationship marketing
13%
13% 23%
23%
Significantly change mix of capabilities,
knowledge and assets IT skills
66%
66% 23%
23% 37%
37%
Today In 3 to 5 years

Source: 2011 CIO Study Q7 “To benefit from global integration will your organization do the following?”; 2011 CMO Study Q16 “What do you do within
marketing and what resources will you tap into, to manage marketing?”


Outperformers partner substantially more often for innovation

External partnering for innovation

28 %
more
59%
59%

46%

Outperformers
Underperformers

Source: QD “To what extent does your organization collaborate and partner (externally) to innovate?”; CEO average score is 53%


Outperformers pursue more disruptive types of innovation and
derive more revenue from new sources

Industry model innovation Revenue from new sources

48 %
more

94 %
more
46%
46%

35%
35%
31% 37 %
more
26%
26%
18% 19%

Outperformers
Underperformers
Creating entirely Moving into
new industries different industries

Source: Q13 “What key initiatives will you implement over the next 3 to 5 years?”; Q11 “What approximate percentage of your revenue comes from
new sources, including new products and services, markets or industries?”


So, how can organizations partner more
effectively to meet the innovation challenge?

 Achieve differentiation through social
Achieve differentiation through social
1. Fundamentally change how you
1. Fundamentally change how you innovation
innovation
partner
partner  Expand scope of partnerships
Expand scope of partnerships
 Tackle the shared governance challenge
Tackle the shared governance challenge

 Broaden responsibility for managing
Broaden responsibility for managing
partnerships
partnerships
2. Make partnerships personal
2. Make partnerships personal  Foster relationships at each level across
Foster relationships at each level across
partnering organizations
partnering organizations
 “Partners” can be a community of people
“Partners” can be a community of people

 Explore unconventional partnerships
Explore unconventional partnerships
3. Break collaboration boundaries
3. Break collaboration boundaries  Think like aadisruptor
Think like disruptor
 Innovate together as aasystem
Innovate together as system



Fundamentally change how you partner

The pressure and costs to innovate mount, and boundaries
between organizations are becoming more porous Payments and
interactions span more functions and are more continuous, travel business, USA
with control and governance increasingly being shared
 Achieve differentiation through social innovation Purpose
Extend communication and collaboration tools so that  Form relationships with leading
peers can interact within and across organizations – social media organizations to
integrate data resources to reveal unexpected, promote innovation in customer
mutually beneficial insights engagement
Activities
 Expand scope of partnerships
 Partnered with Twitter to create
Evaluate ways to extend and connect existing location-specific discounts for
partnerships on innovation, to include ideation, R&D, customers when they tweet their
and also sales, marketing or HR location
 Created "Small Business
 Tackle the shared governance challenge Saturday“ by offering a $ credit to
Establish ways to share key aspects of control – such customers who spend at
as prioritization, decision making and funding – that participating small businesses
are traditionally dominated by one partner


Make partnerships personal

Technology now presents opportunities for much deeper
connections with partners – opportunities for innovation – Retail business,
both spontaneous and orchestrated – are rising in step China
with interconnectedness
 Broaden responsibility for managing partnerships
Embed relationship management capabilities within Purpose
the organization – use centralized alliance  Enhance strategic partnerships
management functions to supply specialized skills by engaging employees across
sales channels
 Foster relationships at each level across partnering
Activities
organizations  Created strategic distribution
Provide avenues to develop personal connections partnerships focused on product
among peers at every level planning and promotions
 Consider the possibility of “partners” being a  Employees gather customer
insights which are routed to
community of people partner organizations to inform
Don’t limit your view to organizations – your most future product development
valuable “partnership” might be a group of individuals



Break collaboration boundaries

To address rising complexity, organizations need to look
beyond traditional partners and conventional views on Automotive
innovation for new inspiration and necessary capabilities business, Japan
 Explore unconventional partnerships
Study nontraditional alliances emerging in other
industries and look for parallel applications in your Purpose
own – integrate capabilities not commonly found in
 Innovate processes to reduce the
your own industry number of components used in
 Think like a disruptor car manufacturing
Stretch thinking beyond business as usual, even  Improve speed and flexibility of
when business as usual is working – question production
norms, introduce new stimulation from outside
Activities
 Innovate together as a system  Formed collaborative
Approach untenable issues or grand challenges by partnerships with suppliers to
partnering across the entire system – with promote innovation
competitors, governments, non-governmental  Reduced procurement costs and
organizations and more improved component design



Case Study: Royal Dutch Shell – Partnering to power the future

Shell has a long history of partnering for innovation, since 1907.

Collaboration is focused on energy innovations, working with partners to diversify
the fuel supply and reduce its environmental impact:
 Production of sustainable, low-carbon biofuels
 Developing of next-generation biofuels from waste products, and hydrogen fuel-cell
technology
 Reducing emissions of traditional fuels used in transportation, such as natural gas

To address energy and environmental challenges, Shell is working with experts to
explore relations between energy, water and food systems to gain a deeper
understanding of long-term risks and opportunities:
 Sustainable urban design
 Reduce water use for electricity generation
 Alternative transport fuels and heating


Key Discovery

In this period of rapid and disruptive change, CEOs lead while
learning, outlining three traits critical to their personal success

CEO characteristics for success
Customer obsession 61%
61%
Inspirational leadership 60%
60%
Leadership teaming 58%
58%
Global mindset 48%
48%
Competitive instinct 38%
38%
Boldness 35%
35%
Transparent 34%
34%
Risk tolerant 33%
33%
Disruptive creativity 33%
33%
Financial skills 24%
24%
Technology savviness 23%
23%
Diversity-driven 20%
20%
Environmentally / socially devoted 16%
16%
Source: Q25 “What are the five most important characteristics that a CEO needs to be successful over the next 3 to 5 years?”


CEOs will lead bold change by providing inspirational leadership to
their people, customers and collaborators

Source: Q25 “What are the five most important characteristics that a CEO needs to be successful over the next 3 to 5 years?”


We analyzed over 10,000 quotes to uncover the deeper thoughts of
CEOs that relate to their key personal aspirations

Customers
Customers Teaming
Teaming

Inspiration
Inspiration Leadership
Leadership

Source:
Qu
ote

Summary

How CEOs drive new economic value through connections

Empowering employees through values
 Organizational openness introduces new opportunities to create value through
Organizational openness introduces new opportunities to create value through
 To re-balance control with openness, CEOs are focused on values,
To re-balance control with openness, CEOs are focused on values,
 Outperformers embrace greater openness, and excel at executing tough
Outperformers embrace greater openness, and excel at executing tough
change
change
Engaging customers as individuals
 Customers share insights into what they value individually, and when and how
Customers share insights into what they value individually, and when and how
 To connect individually, CEOs plan a step change in social media interaction
To connect individually, CEOs plan a step change in social media interaction
and continuing face-to-face engagement
and continuing face-to-face engagement
 Outperformers strongly differentiate by better data access, insight, and
Outperformers strongly differentiate by better data access, insight, and

Amplifying innovation with partnerships
 Commitment to external partnering has grown significantly
Commitment to external partnering has grown significantly
 Virtually all organizations now partner, creating new avenues for innovation
Virtually all organizations now partner, creating new avenues for innovation
 Outperformers are more likely to partner for innovation, disrupt, and
Outperformers are more likely to partner for innovation, disrupt, and



To continue the conversation...

For more information about this study Access interactive content and listen to
and to get the full version of this report, CEOs in their own words by downloading
see www.ibm.com/ceostudy2012 the IBM IBV app for Android or iPad


Summary

What makes outperformers different?

 73% more successful in managing change
73% more successful in managing change
 30% more emphasis on organizational openness
30% more emphasis on organizational openness
 almost 3 more years in leading position (time-in-role)
almost 3 more years in leading position (time-in-role)

 108% better at access to data
108% better at access to data
 108% better at drawing insights from data
108% better at drawing insights from data
 84% better at translating insights into action
84% better at translating insights into action

 68% more likely to integrate business and technology for innovation
68% more likely to integrate business and technology for innovation
 48% more are moving into different industries
48% more are moving into different industries
 37% more likely to derive revenue from new sources
37% more likely to derive revenue from new sources


Backup

Within today’s volatile and uncertain environment, four major trends
are apparent

Globalization Demographic shifts

Social networks and mobility Data explosion


Leading through Connections

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