CEO Study Insights; Career Resiliency In Time of Change

© 2012 IBM Corporation

IBM Institute for Business Value

Career ResiliencyThriving in Times of Change

Public Sector Webinar November 2012



Over the next hour

• Understand trends from CEOs perspective

• Share ‘top of mind’ ideas for future-proofing your career

• Build a personalized action plan



Revenue growth is the #1 priority

Responsiveness is key competence

Improving internal capabilities as first step to growth

Business model innovation matters

External collaboration

Innovation must be orchestrated from the top

Hungry for change Customers as

opportunity to differentiate

Business model innovation, global business designs

Embody creative leadership

Reinvent customer relationships

Build operating dexterity

Empowering employees through values

Engaging customers as individuals

Amplifying innovation with partnerships

3

2004Your turn

2006Expanding the

Innovation Horizon

2008The Enterpriseof the Future

2010Capitalizing on

Complexity

2012Leading through

Connections

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

765 interviews 1130 interviews 1541 interviews456 interviews 1709 interviews



4

Key Discovery

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

External forces that will impact the organization

68%

69%

71%2004 2006 2008 2010 2012

Technology factorsTechnology factors

People skills

Market factors

Macro-economic factors

Regulatory concerns

Globalization

Socio-economic factors

Environmental issues

Geopolitical factors

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

Budgets



Based on what you know today about your career goals and aspirations, trends in the marketplace, your organization’s strategies and plans…how confident are you that you have the right skills, knowledge, and experience to be a significant contributor in the marketplace in the coming 3-5 years?

1. Very confident2. Some what confident3. Not sure4. Not confident5. Not at all confident



6

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



7

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



8

Source: Q18 “What are the most important organizational attributes to engage employees?”

Organizational attributes to engage employees

Ethics and valuesCollaborative environment

Purpose and missionAbility to innovate

Industry leadership

Stability of the organization

Work-life balance

Personal autonomy

Financial rewards

Work flexibility

Cultural diversity

Customizable compensation

Comprehensive mentoring

65%

Key Discovery

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

63%

58%

51%

40%

37%

35%

31%

31%

24%

21%

18%

18%

70%

67%

64%

Global Government



9

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

Personal characteristics for employee success

CreativeFlexible

CollaborativeCommunicative

Opportunity seeking

Analytical / quantitative

Technology-savvy

Globally-oriented

Assertive

Disruptive

75%

67%

61%

61%

54%

50%

41%

41%

25%

16%

Key Discovery

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

Global Government

Communicative

CollaborativeFlexible

Creative

Opportunity seeking

Technology-savvy

Globally-oriented

Assertive

Disruptive

78%

77%

66%

64%

63%

52%

46%

20%

16%

13%

Analytical / quantitative



10

So, how do you empower employees through openness?

1. Replace rulebooks with shared beliefs

2. Build future-proof employees

3. Provide the means to collaborate at scale



Question: Theme # 1

What percentage of public sector organizations do you think will be empowering employee’s through values over rules in the next 3-5 years?

a) 75-100%

b) Between 50 – 75%

c) Less than 50%



12

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



13

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

Source: Q9 “To what extent will your organization change to meet customer expectations compared to your industry peers over the next 3 to 5 years?”

Improve understanding of individual customer needs

Improve response time to market needs

Harmonize customer experiences across channels

Include customers / citizens across product / service life cycle

Increase transparency and corporate accountability

Increase social and environmental responsibility

72%

72%

CEOs want to understand individual customers better and respond faster

55%

48%

47%

44%

Key Discovery

68%

58%Improve understanding of individual citizen needsImprove response time to market needs

Increase transparency and corporate accountability

Increase social and environmental responsibility

56%

37%

Government



14

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

80%

67%

40%

31%

39%

15%

22%22%

41%38%

16%

57%

47%

55%

Face-to-face* Callcenters

Traditionalmedia

Advisory groups

Channelpartners

WebsitesSocialmedia

Mechanisms to engage customers

Key Discovery

TodayIn 3 to 5 years

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

66%

45%

14%

59%62%61%

Socialmedia

Websites Face-to-face*

Government



1. Let “big data” reveal the customer you never knew

15

2. Listen lavishly, respond with focus

3. Be where your customers expect you to be

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



Question: Theme # 2

What percentage of public sector organizations do you think will be engaging citizens* as individuals in the next 3-5 years? *Customers if the government is offering paid services

a) 75-100%


c) Less than 50%



17

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



CMOs increase use of external partnerships in the areas of sales, analytics, and IT skills

For CIOs, increased partnering is associatedwith a desire to refine the mix of capabilities

18

Sales contact/lead management

Customer and data analytics

Direct/relationship marketing

IT skills

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?”

7%

12%

13%

23%

Partnering extensively with other organizations

65%

Significantly change mix of capabilities, knowledge and assets

66%

Today In 3 to 5 years

CIOs and CMOs have diverse motivations for external collaboration

14%

23%

23%

37%



Partnering for innovation is particularly important for Public Sector leaders

19

Source: QD “To what extent does your organization collaborate and partner (externally) to innovate?” (Global n=627 to 1625) (Government n=170)

Outperformance drivers

External partnering for innovation

To a very large extent53%

68%GlobalGovernment

28%more



20

1. Fundamentally change how you partner

3. Break collaboration boundaries

2. Make partnerships personal

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



Question: Theme # 3

What percentage of public sector organizations do you think will be amplifying innovation with partnerships in the next 3-5 years?

a) 75-100%


c) Less than 50%



After what you have heard from the leaders synopsis on the CEO study's three themes, how confident are you that you can improve your skills, knowledge and experience to be a significant contributor in the marketplace in the coming 3 to 5 years

1. Very confident2. Some what confident3. Not sure4. Not confident 5. Not confident at all