© 2020 INNOSIGHT CONSULTING, LLC AND/OR ITS AFFILIATES 0 © 2020 Innosight Consulting, LLC and/or its affiliates Turning Uncertainty into Opportunity LESSONS FROM AUSTRALIAN BUSINESS CHAMPIONS With Scott Anthony and Andy Parker June 26, 2020
© 2020 INNOSIGHT CONSULTING, LLC AND/OR ITS AFFILIATES 0© 2020 Innosight Consulting, LLC and/or its affiliates
Turning Uncertainty into Opportunity LESSONS FROM AUSTRALIAN BUSINESS CHAMPIONS
With Scott Anthony and Andy ParkerJune 26, 2020
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Our purpose is to empower forward-thinking organizations to navigate
disruptive change and own the future
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The plan: three discussions
1. Big-event disruption and its implications for AustraliaGroup Discussion: What implications are you seeing in your industry? What timeframe are you focused on?
2. How Australia’s Transformation Champions are navigating COVID-19 Group Discussion: What lessons are most applicable to your business?
3. A call to action for all business leadersGroup Discussion: What are you committing to acting upon as a leader?
Scott D. AnthonyInnosight
Senior Partner
Andy ParkerInnosightPartner
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Use the chat feature to ask questions or interact
Let’s practice! What’s your favorite innovation?
Raise your hand when you want to contribute
We will use Slido for poll questions
Let’s practice! Tell us about yourself
We will use Innosight’s walk the line tool for group
discussion
Let’s practice: What percent of your company will work
from home >50% of the time in 2021?
www.slido.com #AUSwalktheline.innosight.com/AUS
Password: AUS
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Big-event disruption and its implications for Australia1
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Accelerated Digital Migration Healthcare Transformed Socioeconomic Fragmentation
DislocatedTemporary
Protracted
DURATION
COVID-19’s IMPACT
Online learningContactless
payments
Online retail
Cyber-security
concerns
Tele-health
Universal online access
Onlinesubscription Digital
trans-formation
Healthinfra-
structure
On-demand
fooddelivery
Preventive healthcare
Alternate financingfor small business
Mental health
prioritized
Growing protection-ism andpopulism
Growing immigrant
populations
Global inter-dependency
of supply chains
Gap between rich and
poor
Ride-sharing and room
rentingWorsening
traffic congestion
in cities
Tele-commuting
Catalyzed
3 0 0Trends
5 0 +Trends
T O P
2 0
S T A G E 1
S T A G E 2
S T A G E 3
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Which catalyzed meta-trend will have the biggest impact on your organization?
ACCELERATED DIGITAL MIGRATION
HEALTHCARE TRANSFORMED
SOCIOECONOMIC FRAGMENTATION
Go to www.slido.com
Enter the passcode:
AUS
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Group Discussion: What implications are you seeing in your industry?
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Opportunities to start or scale innovations that ‘reverb’ off the disruption
Financial Group
Companies that make bold moves can significantly outpace competitors
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PRESERVE THEPRESENT
(NOW)
1
DEVELOP A RAPIDRESPONSE STRATEGY
(6-18 MONTHS)
2
OWN THE FUTURE(5+ YEARS)
3
• “Flatten the economic curve” to ensure operational & financial solvency
• Understand and respond to short-term “job to be done” dislocations
• Act early to maximize future flexibility
• Identify, monitor & influence mid-term outcome-determining assumptions
• Respond to persistent “job to be done” dislocations
• Develop and deploy required capability and culture change
• Align on long-term aspiration and strategic focus areas
• Determine 10-15 long-term critical assumptions
• Determine connecting near-term “curve-bending” activities and integrate into strategic roadmap
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https://walktheline.innosight.com/AUS Password: AUS
Allocate 100 ‘gold coins’ across the three strategic imperatives
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How Australia’s Transformation Champions are navigating COVID-19 2
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Australian firms that achieved exceptional and sustained growth
These firms outperformed their ASX 200 peers from 2014 through 2018 by 7 times
25%avg. annual
TSR
6%avg. annual
TSRvs
209%TSR
Jan’14 to Jan’19
32%TSR
Jan’14 to Jan’19
vs
TransformationChampions ASX 200
TransformationChampions ASX 200
May 2019 Research: Australia’s Transformation Champions
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2019 Report: Australia’s Transformation Champions
48% revenue increase
25%of business in refining 65%
down from 106%Stock price appreciation
since 2010
$650MMinvestment
$300MMprofits from loyalty
72.4MMmonthly visits to its website
2.5MMjob applicants
27%revenue from
ancillary business
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“This health crisis and economic crisis is a battle on two fronts…and it is going to be waged in an unimaginable and unprecedented way over the next at least six months and potentially beyond that.”Prime Minister, Scott Morrison, March 27th, 2020
Source: The Guardian April 11th, 2020
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ASX 200 is underperforming a broad range of indices Global Stock Market Movements – through June 19, 2020Percentage change in local currency
*Zhong Hua – comprises of MSCI China and MSCI Hong Kong Index
-14
-11
-8
-5
-2
1
4
7
ZhongHua*
NordicCountries BRIC
NorthAmerica G7 Nations World Far East Pacific EU ASX 200
YTD Last 12 Months
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Transformation builds resilience
• Loyalty revenues beyond airfares• Private funding at favourable terms
• Raise so well received $14.5M refunded• Proven transformation record, e.g.
WebBeds which is >50% revenues
• Share price gains• Innovative virtual features create
stickiness
-21% -40%VS
-67% -37%VS
+16% 4%VS
S&P Global 1200 - AirlinesQantas
Domestic & Global PeersWebjet
Domestic & Global PeersREA Group
Share Price Change over the Last 12 Months
‘Note: Webjet’s peers are Flight Centre, Helloworld Travel, Expedia, Trip.com, Booking Holdings; REA Group’s peers are Domain Holdings, Rightmove PLC, Foxtons Group, Zillow Group’.
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Big events create opportunities
• AI algorithms to match jobs to job seekers• Transformation into disruptive online
education
• Transformation into social & digital gaming
• Driven out of the last big event –the GFC
+0% -26%VS
-14% -19%VS
Domestic & Global PeersSEEK
S&P Global 1200 -Hotels Restaurants &
LeisureAristocrat
Note: SEEK’s peers are 51job, HrNetGroup, Page Group, JAC Recruitment and Hays PLC
Share Price Change over the Last 12 Months
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Lessons for all Australian businesses
May 2019, we concluded these firms…
Are successful at dual transformation
Demonstrate digital dexterity
Are adept at growth via inorganic means
Smartly structure to break disruption
Make and fund clear strategic choices
One year later, we can see these firms…
Start transformation when times are good
Avoid the pressure to play it safe
Have a record of bold moves during a downturn
Apply a growth mindset and remain curious
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Group Discussion: What lessons are most applicable to your business?
Start transformation when times are good
Avoid the pressure to play it safe
Have a record of bold moves during a downturn
Apply a growth mindset and remain curious
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A call to action for all business leaders3
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Out customers show us the way The data says that we are safe
Innovation is risky Now isn’t the right timeOur people can’t do it
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“The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function.”
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“The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function.”
PRESENT FORWARD
FUTURE BACK
CLA RIT Y
CA PACI T Y
CHO ICES
CONNECTION
What’s required to “emerge stronger”?
C O U R A G E
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“The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function.”
DEVELOP A RESILIENT AND RESPONSIVE CULTURE
Systems Habits
Do Enable
Tactics Nudges
CREATE AN ADAPTIVE RAPID-RESPONSE STRATEGY
Present Future
Data Guesses
Specific Broad
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To what degree do you agree with this statement (1=not at all, 10=completely)
https://walktheline.innosight.com/AUS Password: AUS
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More resources…
https://www.innosight.com/insight/navigating-the-covid-19-disruption/
Navigating the COVID-19 Disruption…
Digital Disruption in Australian Higher Education (2020)
Australian market content…
Recent and upcoming Harvard Books…
Australia’s Transformation
Champions (2019)
Upcoming Webinars…
https://www.inventium.com.au
Dr Amantha Imber and Scott Anthony will answer questions and share their own practical, research-backed strategies for ensuring your organisationthrives during the transition back.
Australia’s Transformation Champions Revisited
(2020)
[email protected]/in/scottdanthony
[email protected]/in/andyparker16
https://www.amazon.com/Eat-Sleep-Innovate-Creativity-Organization-ebook/dp/B0843KJLWG
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