business transformation and leadership

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

www.sustaingroup.net


- 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

Themes…



Carb

on Pr

icing

Bra

nd

ing

Cash flow

Increased compliance

Hig

h w

ag

e d

em

an

d

Global Economy

US Job Numbers

Greece US Unemployment

Th

e P

rice o

f Ir

on O

re

The Chinese Economy G

illard

’s p

ollin

g

Staff well being

Sa

les

perf

orm

ance

Skills demand

To grow or not to grow

Interest rates

Inflation

Ta

x

Cost controls

Bu

yer

beh

avio

ur

The Board

Governance

Japans

recovery

Demographics

Executive loss

Climate change

Corruption

Competitors

Partners

Suppliers

The Banks

Early election

Co

alit

ion

po

licie

s

Reve

nu

e d

ive

rsity

Payroll tax

Pro

du

ctiv

ity

Leadership

YouTube

Social Media

Trade Barriers

Tw

itte

r

Invoicing

IT Systems

Budget

Blow outs

Security Public

Rela

tions

Mark

et s

hare

Death

Court

Rulings

Customer Attrition and Gain

Political Environment



Th

e w

orl

d is c

ha

ng

ing

so

mu

ch

fa

ste

r

The interconnectivity of our economies means

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

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...



Befo

re

Governing Board / Committee

Additional country brand

Brand one

Brand two


Additional service line

Training services

Brand one

Consulting services

Solution services

Brand two

Brand three

Brand four Multiple outlets

Brand five Multiple outlets

Brand six Multiple outlets

Brand seven Multiple outlets

Finance

IT

Marketing

Operations

• Extensive workforce

• Every State / Capital City

• Regional Australia

• Longest serving staff: 33 years

• Large general management team

• Multiple layers of middle management

• Operations management

• Subsidiary executive management and middle

management teams

• Major Interactions with:

• Europe

• USA

• Africa

• Asia

• Other solution and service line companies

either directly or partially owned by the

company



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

had us as the largest support client….running the

oldest and only version of the software!

...disparate revenue base...

Loss of client and customer

knowledge Loss of market share

Lack of decision making

Focus on administration and not growth

Tired brand

Loss of core focus

Old systems

Increasing competition

Lower margins

Tighter markets

…Staff turnover in the lower

ranks was high…Staff

morale in the middle ranks

was low but indifference

had crept in



When the foundation of your business is

compromised the roof collapses….

We tried to turn our core business into the things we didn’t do

Core business become less of what the business did

As the business focussed on

everything it wasn’t the

foundation began to give

way…one of those foundations

was our people and clients…the

right people



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.



CEO / Executive Chairman


Integrated services and solutions business


Additional service line

4 Primary locations

Brand one

Integrated solutions business

Integrated services business

Brand two

Brand three

Brand four Integrated site network

Finance & operations

IT

Marketing

• One single leader at the top

• Retrenched 90% of the senior management

team

• Integrated the brands and site network into a

seamless reporting system

• Formation of national teams that would meet

virtually every Monday morning and then on a

Friday afternoon

• Took more administration away from the sites

in order to free up time

• Promoted mid level branch and area managers

into executive roles

• Began the replacement of the IT and CRM

systems

• Introduced a new social media strategy

Nationalised key accounts, with National

Account Managers in different geographic

locations

Aft

er



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.



Carb

on Pr

icing

Bra

nd

ing

Cash flow

Increased compliance

Hig

h w

ag

e d

em

an

d

Global Economy

US Job Numbers

Greece US Unemployment

Th

e P

rice o

f Ir

on O

re

The Chinese Economy G

illard

’s p

ollin

g

Staff well being

Sa

les

perf

orm

ance

Skills demand

To grow or not to grow

Interest rates

Inflation

Ta

x

Cost controls

Bu

yer

beh

avio

ur

The Board

Governance

Japans

recovery

Demographics

Executive loss

Climate change

Corruption

Competitors

Partners

Suppliers

The Banks

Early election

Co

alit

ion

po

licie

s

Reve

nu

e d

ive

rsity

Payroll tax

Pro

du

ctiv

ity

Leadership

YouTube

Social Media

Trade Barriers

Tw

itte

r

Invoicing

IT Systems

Budget

Blow outs

Security Public

Rela

tions

Mark

et s

hare

Death

Court

Rulings

Customer Attrition and Gain

Political Environment



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



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



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…



Matthew Tukaki

[email protected]


www.unglobalcompact.org.au

Thank you

business transformation and leadership

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