The CEO’s Gap Between Strategy and Value

Feb / Mar 2015 Issue # 02bi-monthly magazine for successful business transformation
Where’s My Key to The Boardroom?
Beyond keeping the lights on, many CIOs
struggle to demonstrate value to the C-suite.
Discoverwaystocounterthefourattackstrategies
that are launched upon good ideas.
While CEOs steer strategy, they also need to
ensure their firms have the capability required to
realise the value promised by strategy.
Take a look into the organisation behind
the development of the new breed of
transformation tools.
The Business Transformation Academy
How to Defend Good Ideas
The CEO’s Gap Between Strategy and Value

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Welcome
If you are reading this publication, there is probably no
need for me to preach to the converted, but I want to share
a great analogy with you. Because there are some who
still do not fully appreciate the need for digitally enabled
business transformation. It might be because they have
always lived in an operational environment, or a raft of
other reasons.
In his book ‘Reality Check’ Guy Kawasaki explained that ice
harvesting ended as a profession because other people
with different skills brought electrical refrigeration to the
home. So who would buy from the iceman after that?
These days, businesses need to transform themselves and
their leaders need help them do that with the one thing
that is changing our world more than anything right now -
Digital Capabilities.
If leaders are not committed to transforming their
companies to become digital enterprises and to gaining
and maintaining competitive advantage, they will almost
certainly follow in the steps of the iceman and their ice
companies. They will melt away over the digital decade
that follows and add to the growing list of great companies
that once thought they too formidable to get wiped out by
a digital wave.
Enjoy the read!
Rob Llewellyn
- encouraging better business transformation
Rob Llewellyn
Founder and
Director
CXO Transform
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Summary
Where’s My Key to The Boardroom?04
The Business Transformation Academy08
How to Defend Your Good Ideas
The Board Directors’ Programme at Henley
09
10
Is Your Firm Faking It?11
New Appointments in the News12
The Challenge of Change
13
14
Change Creates Fast Caterpillars
While Transformation Breeds Butterflies

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Where’s My Key to The Boardroom?
It’
Many CIOs are still not given a full-time place amongst the c-suite
How CIOs can get
more boardroom time
s no secret that most ambitious CIOs are
committedtothebusiness.Butbeyondkeeping
the lights on, many struggle to demonstrate
value to the C-suite. Neither is it a secret that the C-suite
want a CIO who, when in the boardroom, engages in
business conversations that are rooted in value, return
on investment and competitive advantage. Systems,
enterprise applications and core infrastructure are
vital to support business-as-usual, but they are not the
stuff that business transformation conversations in the
boardroom are made of.
CIOs need to understand business priorities and
steer business leaders towards creating new value
and competitive advantages by leveraging digital
technology. This is digitally enabled business
transformation, which is fundamental to any CIO who
aspires to spend more time in the boardroom.
With the right tools, leadership qualities and
transformational-mindset, the CIO can educate
business leaders and be seen as an enabler of
innovative competitive advantage, rather than being
accused of operating a cost-centre that needs to focus
on slashing its overheads.
Here are eight fundamental points that provide
practical steps that any technology leader can take
towards digital enterprise transformation. Steps that
have already been taken inside some of the world’s
leading organisations.
How do we getting started?
You need to select a strategic management toolset
designed for digital transformation. No IT leader will
be unfamiliar with the likes of ITIL, TOGAF, CMMI, ASAP
and other tools that were designed for traditional IT,
and which have served traditional IT well. Now it’s time
to become familiar with the latest tools designed for
digital transformation such as the Digital Capability
Framework (DCF) and the Business Transformation
Management Methodology (BTM²). DHL, Unilever and
SAP are just three organisations that have leveraged
theDCFandBTM²,andtheyarealsoscalabletosmallto
medium sized organisations in the way that traditional
tools are. Whichever transformation tools you select,
make sure they do not tie you to any one consulting
firm, business line or technology.
What is the digital
transformation
solution?

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How do we know what capability we need?
Whether it’s a member of your staff or an external consultant, you need
someone to guide you in leveraging transformation tools such as the DCF
and BTM². Then you are ready to plan your journey and use Digital Capability
Maturity Models to conduct capability assessments of your organisation’s
digital enablers and digital goals. Then establish where you need to be and
how to fill the gaps in innovation capability, business transformation capability
and IT excellence.
How can we engage business leaders in the process?
Involve your business leaders in the process from early on. Get them involved
in reviewing best practice Digital Use Cases with you, and particularly in the
innovation of your own Digital Use Cases, which are the keys to their business
goals and the company’s aspirations of competitive advantage.
How do I make this a business-orientated exercise?
Again you need to involve your business leaders in the analysis of the Digital
Use Cases and agree the benefits, value propositions, risks, etc. Hopefully you
can already see how this is a powerful transformation process that facilitates
better IT-Business collaboration, buy-in and relationships.
How do we agree a roadmap?
Once again you need to work with business leaders to prioritise Digital Use
Cases and develop a digital transformation roadmap. You need to agree a
roadmap which is agile enough to cope with future digital change and which
delivers value towards achieving prioritised and a balanced portfolio of
improvements across the business landscape.
Who pays for all this?
The next step is to create persuasive business cases with your primary goal
beingtohelppeopledecidewhethertoinvestsufficientresources.Theprevious
steps will have already secured the hearts and minds of business leaders
and you will have together agreed the key information that will underpin the
business cases such as value propositions and benefit profiles. If you have
done this well, your business cases will be no-brainers that will secure the
resources you need for the new projects and programmes. Even when you do
you encounter unexpected resistance, you can count on the business leader(s)
who have been part of the journey with you to fight the cause.
Select a transformation management methodology
During the assessment stage, you will have addressed your transformation
capability and the gaps that exist. BTM² is integrated with DCF to do this.
It would be prudent to adopt a business transformation management
methodology to underpin all your business transformation efforts. BTM² is
a proven holistic business transformation management approach that will
not tie you to any one consulting firm. It is also accompanied by training and
certification tracks (BTPM and GBTM) should you wish to develop your team’s
transformation management capabilities.
Kick-off new projects and programmes
By now you will not only have a best practice approach with which to
manage your new transformation initiatives, but you will also have the buy-
in of business leaders and adequate resources to successfully drive benefit-
driven transformation. This in turn will help business leaders achieve business
goals using digital technology, and enable the C-suite to see how you as
a transformation leader are orchestrating return on investment and new
competitive advantages.

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IT BUSINESS
COLLABORATION
The Boardroom Key
What has been described in this article is not rocket science. It is however
derived from extensive research, collaboration and development between
leading transformation practitioners and academics.
It does not need to be facilitated by a large 3rd party, a digital solution or teams
of consultants, but it does require commitment to:
Done well, this will facilitate successful digitally enabled business
transformation, and is the surest way that any CIO will gain and maintain a key
to the boardroom.
1. Adopt new strategic management tools such as the DCF and BTM²
2. Think long-term and avoid compromising the steps above in any way
3. Stay focused on business goals as opposed to technology solutions

Visit www.cxo-transform.com/101

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The Business Transformation Academy
Rob Llewellyn writes that in 2009 the SAP Business
Transformation Services unit gave birth to the
Business Transformation Academy (BTA) - a business
network for researching business transformation and
business transformation management topics.
Until then, it was clear that there was very little
documented knowledge on business transformation
available. The knowledge that did exist was buried in
the heads of experienced transformation managers,
and this led to an inadequate understanding of why
many complex transformation initiatives fail.
Toaddressthesechallenges,industryrepresentatives,
leading academics, and various SAP experts were
brought together and a BTA kick-off meeting was held
at the start of 2010.
BTA Mission
The BTA’s mission was defined as: generating and
offering unique expertise on the drivers, underlying
strategies, and practices employed in major
transformation projects. However, unlike other
consulting organisations, the Academy creates and
shares knowledge as part of a global interdisciplinary
expert community comprising industry-specific
transformation professionals and top academics. It
continuously enhances and expands this knowledge
by organising regular conferences, collecting
case histories of past transformation projects and
compiling a handbook on business transformation
management.
In 2012, the BTA considerably extended its research
focus. In discussions (see Executive Briefings)
with different companies from various industries
BTA experts recognised that the Academy’s
holistic management approach, BTM² (Business
Transformation Management Methodology), can be
adoptedandadaptedforalmosteverytransformation
situation and every industry.
This has led to the decision to broaden the
organisation’s research activities to encompass
industry-specifictopics(industriesinclude:Insurance,
Banking,Oil&Gas,Logistics,andRetail)andhorizontal
(non-industry-specific) issues and technologies, such
as Shared Services 3.0, Next-Generation IT Strategy,
Mobility, In-Memory Computing and Cloud Services.
Thanks to its close relationships to SAP industry hubs
andcompanieswithinitsnetwork,theBTAiscurrently
concentrating on developing valuable knowledge in
the above-mentioned areas.
Education Programmes
A direct output of the Academy has been the
developmentanddeliveryofbusinesstransformation
education and traning programmes. These provide
those in positions of responsibility for business
transformation projects and programmes with the
right skills for their complex task. They also enable
experienced consultants and programme managers
to work as trusted advisors within the scope of
transformation initiatives.
In June 2014, Rob Llewellyn the founder of this
publication you are reading, attended one of these
programmes, and in March 2015, a new group of
transformation professionals from around the
world will be welcomed to Berlin by the BTA and its
partners for the latest two-week Global Business
Transformation Master Programme.
HEAD OF THE BUSINESS TRANSFORMATION ACADEMY
Professor Dr. Axel Uhl has led the BTA since
its birth and when asked to condense his
thoughts about how far the BTA has come
in less than six years he said:
“The collaboration between the BTA and
Rob Llewellyn has always been a best
practice example of how we believe that
today`s knowledge sharing should work
and it has proven to be very helpful. It is
my pleasure to be part of Rob`s business
transformation community and I am proud
to have him being part of our community.”

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How to Defend Your Good Ideas
n business at every level, we inevitably
encounter those who do not agree with good
ideas, regardless of how beneficial or sensible
the ideas can seem. For one reason or another, well-
intentioned or not, people can launch an attack on
what we and others feel are ‘good ideas’ in an effort
to de-rail an initiative.
Getting attention and buy-in through effective
communication helps minimise the chances of this
happening, but if we haven’t achieved sufficient buy-
in before we come to present an idea to an audience
of stakeholders, being prepared for the opposition
and their tactics is wise.
In his book with Lorne Whitehead, John Kotter
explains that most attacks are based on one of four
strategies:
Confusion
Fear mongering
Death-by-delay
Ridicule and character assassination
Most of the little bombs that these four types of
attack create can be defused, and being prepared for
them can often make the difference between having
an idea canned and signed-off.
By remaining calm and respectful in our responses
to any attack, we will slowly win the hearts of the
audience. Being confident in the situation helps us
do that, and being well-prepared helps increase our
confidence.
Responding in a highly emotional and irrational
manner will not help win the hearts of the audience
– in fact quite the opposite. It will certainly let our
feelings be known and give someone a piece of our
mind, but that is not the important objective here,
and such behaviour is likely to reduce our chances
of securing the buy-in we need. In fact, many generic
attacks on good ideas are successful because they
trigger emotions, which in turn trigger a dysfunctional
attack back.
I
It is also important not to get drawn into complex
detail and keep responses short, clear and full of
common sense. This will help win ‘minds’ and avoid
causing any more confusion than the attacker might
have already created.
In our endeavour to win buy-in we need to:
Gain attention
Win hearts
Win minds
Monitor the broad audience
Prepare in advance
There are never any guarantees to whether we will
succeed at winning buy-in. Consider the effort that
candidates for the American presidency put in to
winning the hearts and minds of millions of people,
and the fact that only one person will secure enough
buy-in (hearts & minds) to become President.
Kotter and Whitehead have prepared a page full of
typical “attacks and responses” which will help stop
verbal bullets from killing good ideas. From “this
is not the right time!” to “it won’t work here, we’re
different!”
Find 24 attacks and responses here:
www.kotterinternational.com/insights/24-attacks-
responses-buy-saving-good-idea-getting-shot/

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PROGRAMME DATES:
18-19 JUNE 2015 AND 1-2 DECEMBER 2015
For details, contact the programme advisors
T: +44 (0)1491 418767
E: exec@henley.ac.uk
Or visit: www.henley.ac.uk/executive-education/course/the-board-directors-programme
The Board Directors’
Programme at Henley
he role of a board is unique to each organisation,
and complex. Being a member of a board is not
what it used to be, and research suggests that
many boards are ineffective – many to the point of
being out of touch with the challenges the organisation
faces.
Compliance is necessary, but mentoring delivers
tangible differentiation Board members are often
surprised by the reality of their role. They are ill-
prepared and ill-equipped to deal with the challenges
they face.
Professor Andrew Kakabadse is the Programme
Director of a two-day programme at Henley Business
School in the UK and his research suggests that only
20% of global corporations operate with a truly
ethical approach, and the vast majority of boards are
not respected by their managers – they see them as
being impotent and not appreciating the reality their
organisation faces – invariably with good reason! And
yet ethical organisations are statistically more likely
to perform better in the medium- to long term, and
appear to suffer no commercial disadvantage even in
the short-term.
T Programme Benefits
The programme at Henley will help participants
develop the knowledge, skills and awareness to enable
them to:
• Inspire and lead others to fulfil their individual and
collective potential through mentoring
• Recognise the value of sustainability versus financial
return, and the value of morality, loyalty and a positive
reputation
• Appreciate the difference between performance and
compliance, and use of discretion
• Fully understand your role and obligations as a board
member
• Trade effectively through a range of dilemmas and
challenges
• Identify your real competitive advantage(s) and
establish your unique competitive space
• Apply your new-found capabilities to your day-to-day
challenges and issues.
The programme emphasises the added value that
can be gained from acting responsibly and ethically,
mitigating risk and avoiding the pitfalls of the cultural
and legal nuances of international trade. Participants
can expect to enjoy enhanced organisational
performance when board members fully understand
their roles and obligations, and appreciate the value of
inspiring closer team working and shared goals.

11TR ANSFORM
Is Your Firm Faking It?
Holistic top-down & bottom-up enterprise risk
management enables senior management to
make better risk-reward decisions, connects senior
management with the rest of the business on risk
management, and embeds robust risk management
throughout the organisation.
Ironically, while risk is the greatest threat to the
future of any organisation, it is sometimes low on the
executive agenda and there are still companies that
fail to adopt a formal approach to risk management,
and make a superficial attempt to pretend risk is
being addressed in a professional manner.
False Impressions and Fear
Most organisations and their leaders excel at “talking”
about the importance of risk management, but how
much of this is genuine? Senior management often
present a false impression of interest in an attempt to
show their stakeholders that they are “doing the right
thing” and managing risk, when in fact, it is often a
facade, and risk is not being managed well at all.
The inexperienced are afraid of risk management
and some mid-level managers are often reluctant
to publicise risk to executives. Failure is still even
unmentionable in some high-level meetings where
people paint rosey pictures, with perhaps a touch of
amber thrown in just to make it feel real – while the
dirt remains under the carpet.
Theconsqeuenceofthisnaïvebehaviouristhatthings
change, assumptions become false, expectations are
not met and suddenly people find themselves facing
far greater problems than they needed to be.
ISO 31000 Principles
Well-run organisations take a holistic approach to
managing risk and adopt 11 principles of ISO 31000,
which ensure that risk management …
But even those that are not interested in ISO 31000
should at least be asking:
1. Is there a risk management facade festering within
the business?
2. Who are the perpetrators of this dangerous doing?
3. What can be done to address this crime?
Only by identifying, understanding and recognising
the potential for failure can failure itself be avoided.
“Companies in the top 20%
of risk maturity generated 3
times the level of EBITDA as
those in the bottom 20%”
- Source: Ernst & Young
(Turning Risk into Results, March 2012)
Creates and protects value
Is an integral part of all organisational processes
Is part of decision making
Explicitly addresses uncertainty
Is systematic, structured and timely
Is based on the best available information
Is tailored
Takes human and cultural factors into account
Is transparent and inclusive
Is dynamic, iterative and responsive to change
Facilitatescontinualimprovementoftheorganisation

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New Appointments in the News
Mitchell Klaif
Time Warner has named Mitchell Klaif executive
vice president and chief information officer.
Klaif was previously CIO of Time - Time Warner’s
magazine arm, where he spent the last year focused
on its spinoff into an independent company. A
spokesperson said that Klaif kicked off the new role
in January and reports to CFO Howard Averill.
Mandy Ross
Lottery and gaming company, Tatts Group, has
appointed Mandy Ross as its new CIO. Ross has
replaced Stephen Lawrie, who quit his post as CIO,
a position he held since 1999. Ross is now leading
the group’s technology team and operations, which
employs 350 staff. In this role, she will develop the
organisation’s long-term technology and digital
strategic roadmap.
Hans Wanders
Hans Wanders has been appointed the new chief
information officer (CIO) for the ministry of internal
affairs and kingdom relations, from March. Wanders
will also hold the position of director of information
technology policy at the Directorate-General of
Business Organization and Management, under
minister Stef Blok.
Tyler Best
Hertz Global Holdings welcomed Tyler Best to
become its third CIO in about 15 months. Best’s
experience managing costs at the Yellow Pages and
other companies will be invaluable at Hertz, which
plans to cut $100 million in costs. Hertz president
and CEO John P. Tague said Best has “consistently
delivered bottom-line improvement throughout his
career.”
Ed Garcez
Westminster City Council in London is set to lose its
CIO role in April in an update of its shared services
partnership with two other London authorities. Ed
Garcez will become the single CIO for a tri-borough
partnership of Westminster, the London Borough of
Hammersmith & Fulham and the Royal Borough of
Kensington & Chelsea. All three councils are cutting
roles to reduce duplication, as they embark on a
plan to share a single IT division.
James Fairhurst
Brightside Group has announced that James
Fairhurst is their new CIO. Fairhurst was CIO at
Hastings for almost six years and was part of the
seniorleadershipteaminvolvedinthemanagement
buyout from its previous owner IAG in 2009. CEO
Andrew Wallin is reported as saying, ”I am confident
that he will help us to swiftly develop a future
proof platform capable of adding real value to the
business.”
Digital Transformation Office
The Commonwealth Government of Australia will
establish a Digital Transformation Office (DTO)
within the Department of Communications so that
government services can be delivered digitally
from start to finish and better serve the needs
of citizens and businesses. The DTO will operate
more like a start-up and comprise a small team of
developers, designers, researchers and content
specialists working across government to develop
and coordinate the delivery of digital services.

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CEOs put their head on the block when making bold
promises to the Chairman about strategy, and often
that strategy depends on business transformation. But
when strategy cannot be followed by successful business
transformation, those bold promises and the CEO could
have a bleak future ahead of them.
Mind The Gap
78% of global CEOs surveyed in 2014 by PwC said that
they expect to transform their organisations, yet only
54% were satisfied with their ability to execute on their
strategic vision. This means that almost half should be
doing something about that, if they are not to be sceptical
about their ability to deliver upon the bright picture they
painted for the Chairman. They quickly need to acquire the
business transformation management skills, attributes and
capabilities, along with a proven business transformation
management approach such as BTM², if they are to be
optimistic about their strategy becoming reality.
CEOs Are Re-organising
On a positive note, a separate PwC report on Global
CEOs stated that 80% recognise the need to change their
operating model. Once again it is vital that leaders ensure
that any new operating model “enables execution”. In
other words, once leaders reach clarity about who their
organisations are and what they do, they need to define
how to do it using the right business transformation
management capability and approach.
New Value in The Market
Two thirds of leaders in a Strategy& survey
admitted they do not have the capabilities
needed to create value in the marketplace. When
the availability of digital technology is more
abundant, affordable and disruptive than ever,
this should be disturbing news for shareholders.
CIOs are now well positioned to begin creating
value for their companies by leveraging the latest
strategic management tools such as the Digital
Capability Framework (DCF). Finally the CIO has
a way of taking their line of business leaders on a
journeytonewvalueandcompetitiveadvantage,
which means that CEOs need transformational
CIOs who can do far more than keep the lights
on. These CIOs need to be equipped to mature
their digital transformation enablers such as
innovation and transformation capability, if they
wish to improve line of business digital maturity
and ultimately create new value and competitive
advantage.
The Cost of Not Closing The
Transformation Gap
A company’s inability to successfully undertake
business transformation, whether digitally
enabled or not, can range from the loss of
competitive advantage to the loss of the
company’s future. When 40% of the companies
at the top of the Fortune 500 in 2000 were no
longer there in 2010, CEOs should heed the
lessons learned by many who have stumbled
before them.

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Tracing the journey
It started in 1997, when the author, Lalit Jagtiani
and a couple of other employees in their workplace
were christened “Change Agents”. Granted the
mandate of driving change in their organisation, life
for them and Lalit hasn’t been the same since then.
As Lalit and the Change Agents travelled across
India to various offices, departments, and units
of the organisation to initiate a transformation
programme, they experienced a Change. It seemed
that these teams-on-a-mission, were more than
mere couriers of a corporate vision of transforming
the organisation and its employees.
Consumed with the principles of Change
Management, transformation of the organisation
was no longer a task for the Change Agents. It
became their identity, and while the organisation
and its people were figuring out the aspects of
transformation, the author was undergoing an
internal metamorphosis.
The Plot of The Challenge of Change
The Challenge of Change tells a story of how Change
Management actually happens in an organisation.
Unlike many management books that dwell
on structure, content and guidelines of Change
Management, this book is a saga of the author’s own
experiences. The book is a summary of vignettes of
Lalit’s experiences, in transforming organisations
across Asia, that are strung together in a sequence
that would form the structure of a Change
Management intervention in an organisation.
The book will take its readers on an adventure
trail in an organisation, and the situations that
appear throughout the book are what practicing
professionals will experience. The issues, blocks,
concerns, highs and challenges that a Change
Manager will most certainly experience in driving
Change in an organisation is at the story’s core.
Stay tuned to social media for launch details.
The Challenge of Change
A new book due out in 2015 by Lalit Jagtiani

Rob Llewellyn - Transformation Consultant

GET THE RIGHT CAPABALITY
ON BOARD
Because no ambitous journey will succeed with less
As trusted advisors to
transformation executives
we provide the capability
which enables strategic intent
• Digital Transformation Roadmap Programmes
• Transformation Recovery Programmes
• Trusted Advisory Services
contact us for information or to request a free consultation
+44 20 3239 3525 hello@cxo-transform.com
www.cxo-transform.com

The CEO’s Gap Between Strategy and Value

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