The New Leadership Paradigm Roger Flynn Athens 3 rd December 2009

The New Leadership Paradigm

Roger FlynnAthens

3rd December 2009

The New Leadership Paradigm Breed urgency and speed

Alive to risk and deal with it

Work systemically

Engage EVERYONE in your business

Times of Transformation

The New Leadership Paradigm

Breed urgency and speed

Prudential Retail

£2 bn hit from Pensions mis-selling 6 million customers; 7,000 staff Loss-making Compliance lock – down Only one distribution channel

Potential to halve the cost per saleCost of Distribution/Policy

£

Current Home Visit

Improved Home Visit

Block-booked at Worksite

Telephony Unregulated

560

340

220

120

0

100

200

300

400

500

600

<100

Internet

Getting Urgent Senior Management

Buy in to Plan Values creation

Wider management and staff Road shows Branch visits Home visits

Speeding up the Change

Delivering on the promises Sales Process Laptops Products

Moving Fast Leadership Programme HQ Reorganisation

The New Leadership Paradigm

Alive to risk and deal with it

Virgin Atlantic

Sales and Distribution Costs

Source: Management figures 1996

Sales (£ m) 6,000

Standard Commission 540 9%

Incentive Commission 180 3%

Marketing 150 3%

Sales 100 2%

Credit card 90 1%

CRS 85 1%

Other 55 1%

Total Costs 1,200 20%

Strategy to transform distribution Eliminate standard commission

Domestic commission in non-core markets Domestic commission in core markets International commission

Incentivise more sales through agents Increased commission available Increased support tools

Double direct business through call centres Launch web channel Re-align other elements of value chain

Fear the biggest barrier Internal nervousness

“Could wipe out this years’ profit” “It won’t work, the customers won’t buy direct” “My bonus is linked to revenue delivery” “But the Travel Agents are my friends”

Travel Agents “We will move business away from you” “Our profits will be wiped out” “You want all the business to come direct”

Reducing Risk through Teams Building Teams, Building Engagement

Central High Energy Unit Collaboration and solution building Power to the “Baronies” Lower risk implementation plans

Moving Fast Commission reduction plan Global Internet selling system E-Ticketing Project

Results: Distribution costs at 6%

Internet Sales 80k per week

E-Ticketing up to 84%

Source: BA Fact Book 2006

The New Leadership Paradigm

Work systemically

Alignment ModelDirection

Strategy Infrastructure Culture

PolicyObjectives Values

BehavioursProcessesTasks

Results

Copyright: Vector Consultants

Enterprise wide feedback systems?

Source: Customer Champions in European Countries, 2001

The Virgin Way

Virgin Mobile

Launched Nov 1999 Virtual Network deal with T-Mobile* Avoided capital of £2bn to build out a network Injected £45m 50:50 JV with One-to-One Initial aim: 1m customers in 15 months

* One-to-One purchased by T-Mobile

Total Alignment

Goal: 1m customers in 15 months Proposition: Simple Transparent Pricing Customer Target: Appeal to the young Distribution: Direct

Virgin Values throughout the delivery Risk reduced by Using T-Mobile Network

Results

Customer Growth 2000 500,000 2001 1,000,000 2006 4,000,000

Most satisfied customers 2004 & 2005 July 2006 sale to NTL for £962 m Creation of Virgin Media

The New Leadership Paradigm

Engage EVERYONE in your business

Energy Investment Model

PLAYERS

Low Energy High

Positive

Attitude

Negative

Energy Investment Model

SPECTATORS PLAYERS

Low Energy High

Positive

Attitude

Negative

Energy Investment Model

SPECTATORS PLAYERS

WALKING

DEAD

Low Energy High

Positive

Attitude

Negative

Energy Investment Model

SPECTATORS PLAYERS

WALKING

DEAD

WELL POISONERS

Low Energy High

Positive

Attitude

Negative

What Inspired this?

BBC Plan

Rejuvenate BBC 1 Create BBC 3, BBC 4 and News 24 Central overheads from 24% to 15% income Self-help of £1.2bn over 4 years More cross BBC innovation – “One BBC”

Source: Greg Dyke speech Edinburgh Festival 26/8/2000

Pie Problem

Vision: Most creative organisation in the World

Executive commitment Our best people! Conferences/Communication Leadership Development Programme Values bottom up Just Imagine …

Mission: One BBC; Making it Happen

Results

10,000 staff engaged 2,000 change ideas, 700 implemented Values created by everyone Excitement about the Vision Huge energy release

That’s why they protested!

YOU …. as a Leader

Passion, Energy, Commitment → Player? What you do ……

Exciting Vision and a sense of urgency? Alignment and working systemically? Risks worked hard? Enough people fully engaged?

…. Are you being the Leader they need you to be?