Kyle Loades

Disruption and transformation is not all about technology. It is as much about educating leaders and empowering people to transform, says a leading not-for-profit.

As recently reported in the media, many boards do not understand digital disruption and the associated need to transform well enough[1].

And not enough board members and senior executives want to learn the skills that are required, cautions The Australian Transformation and Turnaround Association (AusTTA).

“If they did, they would ensure their future and career, and the longevity of the companies they lead” says AusTTA chair Kyle Loades.

Mr Loades, who is himself a chair of several organisations, realised this challenge and undertook a course with AusTTA “to better understand those organisations I was helping to lead”. This saw him become a Fellow of Transformation and then ultimately the chair of AusTTA.

“That course revealed so much, so much that we as directors all need to learn. It is why I became more involved with this not-for-profit, to help other directors realise that they can contribute so much more to the organisations that they are leading.

Mr Loades added: “Unfortunately too many leaders believe disruption is all about technology and that they can’t control that. There is much more to disruption and ensuing transformation, aspects that they can direct and control. There are simple and easy to use tools and techniques that can make a big difference to an organisation between simply surviving to thriving today.”

“Some leaders do nothing as they think that doing something, changing things is too much of a risk. The greatest risk is doing nothing in today’s changing markets!” Mr Loades said one of the greatest problems Australia faces today is to overcome entrenched leaders’ dislike of change. “The increasing convergence between physical and digital businesses globally are reshaping the nature of competition.

“Global economies are increasingly shifting from supply-side economies based on the production and distribution of products and services to demand-side economies that are anchored in customers and communities. These shifts together with the emergence of a range of technologies and channels are fundamentally changing the nature of business.

“It requires both;

·      the adoption of emerging digital technologies that are transforming the customer experience, operational processes, and business models; and

·      new leadership capabilities that can support how the organisation manages the digital transformation.

“These shifts will be the foundations of prosperity in the 21st Century,” he said.

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[1] https://www.afr.com/business/banking-and-finance/impenetrable-samuel-smashes-girls-club-20190326-p517ne

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The pace and poignancy of change has certainly heightened in recent years; spurred on by increasingly innovative ways organisations are applying technology.

“One of the biggest mistakes financial service organisations (both private and public) make in approaching digital disruption and transformation is that they focus too much on the technology and its capabilities, rather than on fundamental operational transformation, cautions the head of the premier digital disruption grouping, the Australian Transformation and Turnaround Association (AusTTA).

Adam Salzer OAM, chairman of AusTTA, said today: “Disruption should primarily focus on transformation of the whole organisation. It needs to rethink and recreate its culture and its fundamental processes, not just embrace the technological opportunities.

“Technology is just a means to an end. Not the starting point.

“To meet increasing competition, many established organisations have to rethink their basic the model to provide better and more tailored service that offers consumers significantly better value and greater control.

“Accordingly, changing the internal mentality of senior management and employees regarding the role of the customer and full consumer empowerment should be the focus for management. Too often it is not, as our research identified.”

Research by AusTTA identified a raft of challenges facing organisations. These ranged from the changing business and political environment through changing consumer tastes.

However, the greatest concern is management, be its resistance to change and/or poor leadership. These together concern over two thirds (71%) of respondents.

Other major concerns include availability of hiring good people, then the impact of new technology, as shown in the chart in the attachment.

The survey also found respondents reported that employee resistance – or unawareness of the need to change – is their main barrier. This was followed by management resistance and engaging people to assist with the transformation process, as shown below.

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