Adrian Ryan, Head of Finance Transformation at Imperial Tobacco - Transformational Change - Why? spoke at the CFO Event UK 2014

1. Transformational Change – Why?
…………………………………..........
Adrian Ryan
Imperial Tobacco

2. Topic for today’s discussion
Why is Transformation valuable?
Recognising the pitfalls of
Transformation
Setting up for success

3. Why bother with Transformation when

4. Why bother with Transformation?
Delivering Strategy
Focus on Adding Value
• Structuring operations to enable
delivery of strategy
• Changing Operating Model to deliver
strategy
• Upgrading capability
• More analysis less admin
• Leading tools and techniques
• Leveraging specialism
• Organising to focus on the business
TSR
Process Efficiency
Cost to Serve
• Best practise
• Leveraging technology
• Controls & Compliance
• Streamline, standardise & Globalise
• Leveraging automation
• Integrated Business Services
• Outsourcing
• Streamline, standardise & Globalise

5. What is Transformation?

6. Why does Transformation fail?

7. Why does Transformation fail?
Lack of right resources
Wrong leader/driver
Unskilled teams
Part timers (“in addition to the day
job”)
Insufficient budget
Antipathy to using external experts
Using the wrong external experts

8. Why does Transformation fail?
To many barriers to progress
Lack of resource commitment
Lack of Senior sponsorship
Lack of Senior visibility (“Walk the
walk)
Turf wars
Peer competition
NIMBYism

9. Why does Transformation fail?
Ill prepared for change resistance
Lack of political will to change
Insufficient reasons for change
Poor communications
Unprofessional change &
engagement plan
Treating staff as resources rather
than people
Treating staff as idiots

10. Why does Transformation fail?
No priority for change
Lack of resource commitment
Lack of political will to change
Poor leadership & sponsorship
No link to long term strategy & goals
No link to short term rewards
No voice at the table (Board!)

11. Some common problem quotes
What people say
What it really means for change projects
“We don’t need consultants
We can do it ourselves”
If that was true you would have done it already... To
arrogant or fearful to get the right resources! False
economy!
“We don’t want to pay Consultants For RACI and
process designs that will just sit on the shelf”
Failure to understand that it is the process of designing
that delivers the change rather than the documents
themselves! And that the document are useful for
systems design...
“I don’t believe in Shared Services”
Inward looking and unaware of best practise, likely to
extend to other areas
“OK I now believe in Shared Services but not
outsourcing”
It’s the same thing... Fear of losing control! Fear of
being overcharged! Fear of thee unknown!
“if the project is in conflict with the Business then the
Business will win”
Change will not happen without compromise and
investment, sometimes in short term business results!

12. “Doing the same things
over and over again and
expecting different results”
Albert Einstein’s definition
of insanity

13. A programme for change
Creating a programme for sustainable change
requires
 A definitive vision of what the future looks like
and what it take to get there
 Commitment of ALL decision makers and key
influencers
 Hard to argue with facts! Decisions require
business cases, benefits tracking requires a
baseline
 Put a face on the programme and build the right
team with sufficient budget
 Roadmap with milestones, regular progress
reviews
 Sustainability plan – Change plan, Engagement,
Communications plan, Continuous improvement
plan, Benefits tracking protocols
Setting the Vision
Making
it stick
Winning
the argument
Programme
for change
Delivering
the goods
Getting
the facts
Resourcing
the team

14. Further Questions?