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IBM Institute for Business Value




         Career Resiliency
         Thriving in Times of Change
         Public Sector Webinar
         November 2012




                                       © 2012 IBM Corporation
IBM Institute for Business Value


Over the next hour
 • Understand trends from CEOs perspective

 • Share ‘top of mind’ ideas for future-proofing your career

 • Build a personalized action plan




                                                               © 2012 IBM Corporation
IBM Institute for Business Value


The Global CEO Study 2012 is the fifth biennial CEO study, building
on our insights and findings over the last 8 years


                                      2006                     2008                  2010                    2012
           2004
                                 Expanding the           The Enterprise         Capitalizing on         Leading through
         Your turn             Innovation Horizon         of the Future          Complexity               Connections
    Revenue growth is        Business model        Hungry for change     Embody creative      Empowering
       Revenue growth is          Business model          Hungry for change       Embody creative        Empowering
      the #1 priority
       the #1 priority           innovation matters
                                  innovation matters
                                                       Customers as
                                                          Customers as           leadership
                                                                                  leadership            employees through
                                                                                                         employees through
    Responsiveness is        External                opportunity to        Reinvent customer      values
       Responsiveness is          External                opportunity to          Reinvent customer      values
      key competence
       key competence            collaboration
                                  collaboration          differentiate
                                                          differentiate          relationships
                                                                                  relationships
                                                                                                      Engaging customers
                                                                                                         Engaging customers
    Improving internal       Innovation must be    Business model        Build operating        as individuals
       Improving internal         Innovation must be      Business model          Build operating        as individuals
      capabilities as first      orchestrated from       innovation, global      dexterity            Amplifying innovation
       capabilities as first      orchestrated from       innovation, global      dexterity              Amplifying innovation
      step to growth
       step to growth            the top
                                  the top                business designs
                                                          business designs                              with partnerships
                                                                                                         with partnerships


      456 interviews
       456 interviews              765 interviews
                                    765 interviews      1130 interviews
                                                         1130 interviews        1541 interviews
                                                                                 1541 interviews         1709 interviews
                                                                                                          1709 interviews




3                                                                                                             © 2012 IBM Corporation
Key Discovery
IBM Institute for Business Value


For the first time, CEOs identify technology as the most important
external force impacting their organizations


                                    External forces that will impact the organization

    2004                   2006                    2008                   2010                   2012            Budgets
                                                                                                        71%
                                                                                                                 Technology factors
                                                                                                        69%
                                                                                                                 People skills
                                                                                                        68%
                                                                                                                 Market factors

                                                                                                                 Macro-economic
                                                                                                                 factors
                                                                                                                 Regulatory concerns

                                                                                                                 Globalization

                                                                                                                 Socio-economic factors

                                                                                                                 Environmental issues

                                                                                                                 Geopolitical factors

Source: Q1 “What are the most important external forces that will impact your organization over the next 3 to 5 years?”
4                                                                                                                                  © 2012 IBM Corporation
IBM Institute for Business Value


   Based on what you know today about your career goals and
   aspirations, trends in the marketplace, your organization’s
   strategies and plans…how confident are you that you have the
   right skills, knowledge, and experience to be a significant
   contributor in the marketplace in the coming 3-5 years?


   1. Very confident
   2. Some what confident
   3. Not sure
   4. Not confident
   5. Not at all confident




                                                           © 2012 IBM Corporation
IBM Institute for Business Value


CEOs create more economic value by cultivating new connections
within and across three domains




6                                                       © 2012 IBM Corporation
IBM Institute for Business Value


How will CEOs create more economic value by empowering
employees through values?




7                                                        © 2012 IBM Corporation
Key Discovery
    IBM Institute for Business Value


    To re-balance control with openness, CEOs are focused on values,
    collaboration and mission

                                       Organizational attributes to engage employees
                                              Global                                              Government
                   Ethics and values                                                       65%
                                                                                            65%            64%
                                                                                                            64%
     Collaborative environment                                                             63%
                                                                                            63%                67%
                                                                                                                67%
             Purpose and mission                                                    58%
                                                                                     58%                       70%
                                                                                                                70%
                     Ability to innovate                                      51%
                                                                               51%
                   Industry leadership                                40%
                                                                       40%
       Stability of the organization                               37%
                                                                    37%
                     Work-life balance                            35%
                                                                   35%
                  Personal autonomy                            31%
                                                                31%
                     Financial rewards                         31%
                                                                31%
                         Work flexibility                24%
                                                          24%
                      Cultural diversity               21%
                                                        21%
     Customizable compensation                       18%
                                                      18%
        Comprehensive mentoring                      18%
                                                      18%
Source: Q18 “What are the most important organizational attributes to engage employees?”
8                                                                                                                     © 2012 IBM Corporation
Key Discovery
  IBM Institute for Business Value


  In this new environment, key success factors for employees include:
  collaboration, communication, creativity and flexibility
                                     Personal characteristics for employee success
                                            Global                                                                        Government
          Collaborative                                                            75%
                                                                                    75%         Collaborative                                   78%
                                                                                                                                                 78%
        Communicative                                                       67%
                                                                             67%                        Flexible                               77%
                                                                                                                                                77%
                  Creative                                              61%
                                                                         61%                 Communicative                                 66%
                                                                                                                                            66%
                  Flexible                                              61%
                                                                         61%      Analytical / quantitative                               64%
                                                                                                                                           64%
   Opportunity seeking                                            54%
                                                                   54%                                  Creative                         63%
                                                                                                                                          63%
Analytical / quantitative                                      50%
                                                                50%                     Opportunity seeking                         52%
                                                                                                                                     52%
       Technology-savvy                                 41%
                                                         41%                               Technology-savvy                      46%
                                                                                                                                  46%
       Globally-oriented                                41%
                                                         41%                                Globally-oriented             20%
                                                                                                                           20%
                 Assertive                  25%
                                             25%                                                       Assertive      16%
                                                                                                                       16%
                Disruptive           16%
                                      16%                                                             Disruptive 13%
                                                                                                                  13%




  Source: Q17 “What are key personal characteristics that help employees to be more successful in a connected economy?”
   9                                                                                                                             © 2012 IBM Corporation
IBM Institute for Business Value


So, how do you empower employees through openness?




 1. Replace rulebooks with shared beliefs
  1. Replace rulebooks with shared beliefs




 2. Build future-proof employees
  2. Build future-proof employees




 3. Provide the means to collaborate at scale
  3. Provide the means to collaborate at scale



10                                                   © 2012 IBM Corporation
IBM Institute for Business Value


Question: Theme # 1

  What percentage of public sector organizations do you
  think will be empowering employee’s through values
  over rules in the next 3-5 years?


    a) 75-100%
    b) Between 50 – 75%
    c) Less than 50%




                                                          © 2012 IBM Corporation
IBM Institute for Business Value


How will CEOs create more economic value by engaging customers
as individuals?




12                                                     © 2012 IBM Corporation
Key Discovery
IBM Institute for Business Value


CEOs want to understand individual customers better and respond
faster
                        Change required to meet customer expectations (3 to 5 years)

                                   Improve understanding of individual customer needs                                        72%
                                                                                                                              72%
                                         Improve response time to market needs                                               72%
                                                                                                                              72%
                                        Harmonize customer experiences across channels                     55%
                                                                                                            55%
                    Include customers / citizens across product / service life cycle                   48%
                                                                                                        48%
                               Increase transparency and corporate accountability                     47%
                                                                                                       47%
                                      Increase social and environmental responsibility              44%
                                                                                                     44%
                                                                                                            Government
                                                                                   Improve response time to market needs 68%
                                                                                                                          68%
                                                                                                                      58%
                                                                           Improve understanding of individual citizen 58%
                                                                                                                       needs
                                                                        Increase transparency and corporate accountability
                                                                                                                    56%
                                                                                                                      56%
                                                                              Increase social and environmental responsibility
                                                                                                                   37%
                                                                                                                    37%




Source: Q9 “To what extent will your organization change to meet customer expectations compared to your industry peers over the next 3 to 5 years?”
13                                                                                                                                © 2012 IBM Corporation
Key Discovery
IBM Institute for Business Value


To connect individually, CEOs plan a step-change from traditional to
social media, while continuing face-to-face engagement
                                    Mechanisms to engage customers
                     80%

                                                                                                                         Government
                          67%
                                                                                                                                               66%
                                                                                                                  62%61%
                                     57%                                                                                              59%
                                                  55%

                                             47%
                                                                                                                                                    45%
                                                          41%          40%
 Today                                                       38%                                 39%
 In 3 to 5 years
                                                                            31%

                                                                                   22%22%
                                   16%                                                               15%
                                                                                                                                  14%




                 Face-to-face* Social        Websites Channel            Call      Advisory Traditional
                               media                  partners         centers      groups    media               Websites Social Face-to-face*
                                                                                                                           media

Source: Q8 “What are the three most important mechanisms your organization will use with customers over the next 3 to 5 years?”
        *Face-to-face / sales force / institutional representatives
14                                                                                                                                 © 2012 IBM Corporation
IBM Institute for Business Value


So, how do you win the race to gather and
convert data into customer insight and action?



 1. Let “big data” reveal the customer you never knew
  1. Let “big data” reveal the customer you never knew




 2. Listen lavishly, respond with focus
  2. Listen lavishly, respond with focus




 3. Be where your customers expect you to be
  3. Be where your customers expect you to be


15                                                       © 2012 IBM Corporation
IBM Institute for Business Value


Question: Theme # 2

  What percentage of public sector organizations do you
  think will be engaging citizens* as individuals in the next
  3-5 years?
  *Customers if the government is offering paid services


    a) 75-100%
    b) Between 50 – 75%
    c) Less than 50%




                                                           © 2012 IBM Corporation
IBM Institute for Business Value


How will CEOs create more economic value by innovating differently
with partners?




17                                                        © 2012 IBM Corporation
IBM Institute for Business Value


CIOs and CMOs have diverse motivations for external collaboration



     For CIOs, increased partnering is associated
      For CIOs, increased partnering is associated                              CMOs increase use of external partnerships
                                                                                 CMOs increase use of external partnerships
     with aadesire to refine the mix of capabilities
      with desire to refine the mix of capabilities                             in the areas of sales, analytics, and IT skills
                                                                                 in the areas of sales, analytics, and IT skills



                                                                                                      Sales contact/lead management
                                                                                                7%
                                                                                                 7%       14%
                                                                                                           14%
      Partnering extensively with other
      organizations                                                                                   Customer and data analytics
                                                   65%
                                                    65%                                     12%
                                                                                             12%                  23%
                                                                                                                   23%

                                                                                                      Direct/relationship marketing
                                                                                           13%
                                                                                            13%                   23%
                                                                                                                   23%
      Significantly change mix of capabilities,
      knowledge and assets                                                                            IT skills
                                                    66%
                                                     66%                           23%
                                                                                    23%                                     37%
                                                                                                                             37%
                                                                                  Today                           In 3 to 5 years




Source: 2011 CIO Study Q7 “To benefit from global integration will your organization do the following?”; 2011 CMO Study Q16 “What do you do within
        marketing and what resources will you tap into, to manage marketing?”
18                                                                                                                                © 2012 IBM Corporation
Outperformance drivers
IBM Institute for Business Value


     Partnering for innovation is particularly important for Public
     Sector leaders



                           External partnering for innovation



            To a very large extent
                                                 53%

                                                             68%
                                                                                             28%
                                                                                             more
                                                                                                                       Global
                                                                                                                       Government




Source: QD “To what extent does your organization collaborate and partner (externally) to innovate?” (Global n=627 to 1625) (Government n=170)
19                                                                                                                               © 2012 IBM Corporation
IBM Institute for Business Value


So, how can organizations partner more
effectively to meet the innovation challenge?




          1. Fundamentally change how you partner
           1. Fundamentally change how you partner




          2. Make partnerships personal
           2. Make partnerships personal




          3. Break collaboration boundaries
           3. Break collaboration boundaries


20                                                   © 2012 IBM Corporation
IBM Institute for Business Value


Question: Theme # 3

  What percentage of public sector organizations do you
  think will be amplifying innovation with partnerships in
  the next 3-5 years?



    a) 75-100%
    b) Between 50 – 75%
    c) Less than 50%




                                                             © 2012 IBM Corporation
IBM Institute for Business Value


    After what you have heard from the leaders synopsis on
    the CEO study's three themes, how confident are you that
    you can improve your skills, knowledge and experience to
    be a significant contributor in the marketplace in the coming
    3 to 5 years



  1. Very confident
  2. Some what confident
  3. Not sure
  4. Not confident
  5. Not confident at all




                                                          © 2012 IBM Corporation

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CEO Study Insights; Career Resiliency In Time of Change

  • 1. IBM Institute for Business Value Career Resiliency Thriving in Times of Change Public Sector Webinar November 2012 © 2012 IBM Corporation
  • 2. IBM Institute for Business Value Over the next hour • Understand trends from CEOs perspective • Share ‘top of mind’ ideas for future-proofing your career • Build a personalized action plan © 2012 IBM Corporation
  • 3. IBM Institute for Business Value The Global CEO Study 2012 is the fifth biennial CEO study, building on our insights and findings over the last 8 years 2006 2008 2010 2012 2004 Expanding the The Enterprise Capitalizing on Leading through Your turn Innovation Horizon of the Future Complexity Connections Revenue growth is Business model Hungry for change Embody creative Empowering Revenue growth is Business model Hungry for change Embody creative Empowering the #1 priority the #1 priority innovation matters innovation matters Customers as Customers as leadership leadership employees through employees through Responsiveness is External opportunity to Reinvent customer values Responsiveness is External opportunity to Reinvent customer values key competence key competence collaboration collaboration differentiate differentiate relationships relationships Engaging customers Engaging customers Improving internal Innovation must be Business model Build operating as individuals Improving internal Innovation must be Business model Build operating as individuals capabilities as first orchestrated from innovation, global dexterity Amplifying innovation capabilities as first orchestrated from innovation, global dexterity Amplifying innovation step to growth step to growth the top the top business designs business designs with partnerships with partnerships 456 interviews 456 interviews 765 interviews 765 interviews 1130 interviews 1130 interviews 1541 interviews 1541 interviews 1709 interviews 1709 interviews 3 © 2012 IBM Corporation
  • 4. Key Discovery IBM Institute for Business Value For the first time, CEOs identify technology as the most important external force impacting their organizations External forces that will impact the organization 2004 2006 2008 2010 2012 Budgets 71% Technology factors 69% People skills 68% Market factors Macro-economic factors Regulatory concerns Globalization Socio-economic factors Environmental issues Geopolitical factors Source: Q1 “What are the most important external forces that will impact your organization over the next 3 to 5 years?” 4 © 2012 IBM Corporation
  • 5. IBM Institute for Business Value Based on what you know today about your career goals and aspirations, trends in the marketplace, your organization’s strategies and plans…how confident are you that you have the right skills, knowledge, and experience to be a significant contributor in the marketplace in the coming 3-5 years? 1. Very confident 2. Some what confident 3. Not sure 4. Not confident 5. Not at all confident © 2012 IBM Corporation
  • 6. IBM Institute for Business Value CEOs create more economic value by cultivating new connections within and across three domains 6 © 2012 IBM Corporation
  • 7. IBM Institute for Business Value How will CEOs create more economic value by empowering employees through values? 7 © 2012 IBM Corporation
  • 8. Key Discovery IBM Institute for Business Value To re-balance control with openness, CEOs are focused on values, collaboration and mission Organizational attributes to engage employees Global Government Ethics and values 65% 65% 64% 64% Collaborative environment 63% 63% 67% 67% Purpose and mission 58% 58% 70% 70% Ability to innovate 51% 51% Industry leadership 40% 40% Stability of the organization 37% 37% Work-life balance 35% 35% Personal autonomy 31% 31% Financial rewards 31% 31% Work flexibility 24% 24% Cultural diversity 21% 21% Customizable compensation 18% 18% Comprehensive mentoring 18% 18% Source: Q18 “What are the most important organizational attributes to engage employees?” 8 © 2012 IBM Corporation
  • 9. Key Discovery IBM Institute for Business Value In this new environment, key success factors for employees include: collaboration, communication, creativity and flexibility Personal characteristics for employee success Global Government Collaborative 75% 75% Collaborative 78% 78% Communicative 67% 67% Flexible 77% 77% Creative 61% 61% Communicative 66% 66% Flexible 61% 61% Analytical / quantitative 64% 64% Opportunity seeking 54% 54% Creative 63% 63% Analytical / quantitative 50% 50% Opportunity seeking 52% 52% Technology-savvy 41% 41% Technology-savvy 46% 46% Globally-oriented 41% 41% Globally-oriented 20% 20% Assertive 25% 25% Assertive 16% 16% Disruptive 16% 16% Disruptive 13% 13% Source: Q17 “What are key personal characteristics that help employees to be more successful in a connected economy?” 9 © 2012 IBM Corporation
  • 10. IBM Institute for Business Value So, how do you empower employees through openness? 1. Replace rulebooks with shared beliefs 1. Replace rulebooks with shared beliefs 2. Build future-proof employees 2. Build future-proof employees 3. Provide the means to collaborate at scale 3. Provide the means to collaborate at scale 10 © 2012 IBM Corporation
  • 11. IBM Institute for Business Value Question: Theme # 1 What percentage of public sector organizations do you think will be empowering employee’s through values over rules in the next 3-5 years? a) 75-100% b) Between 50 – 75% c) Less than 50% © 2012 IBM Corporation
  • 12. IBM Institute for Business Value How will CEOs create more economic value by engaging customers as individuals? 12 © 2012 IBM Corporation
  • 13. Key Discovery IBM Institute for Business Value CEOs want to understand individual customers better and respond faster Change required to meet customer expectations (3 to 5 years) Improve understanding of individual customer needs 72% 72% Improve response time to market needs 72% 72% Harmonize customer experiences across channels 55% 55% Include customers / citizens across product / service life cycle 48% 48% Increase transparency and corporate accountability 47% 47% Increase social and environmental responsibility 44% 44% Government Improve response time to market needs 68% 68% 58% Improve understanding of individual citizen 58% needs Increase transparency and corporate accountability 56% 56% Increase social and environmental responsibility 37% 37% Source: Q9 “To what extent will your organization change to meet customer expectations compared to your industry peers over the next 3 to 5 years?” 13 © 2012 IBM Corporation
  • 14. Key Discovery IBM Institute for Business Value To connect individually, CEOs plan a step-change from traditional to social media, while continuing face-to-face engagement Mechanisms to engage customers 80% Government 67% 66% 62%61% 57% 59% 55% 47% 45% 41% 40% Today 38% 39% In 3 to 5 years 31% 22%22% 16% 15% 14% Face-to-face* Social Websites Channel Call Advisory Traditional media partners centers groups media Websites Social Face-to-face* media Source: Q8 “What are the three most important mechanisms your organization will use with customers over the next 3 to 5 years?” *Face-to-face / sales force / institutional representatives 14 © 2012 IBM Corporation
  • 15. IBM Institute for Business Value So, how do you win the race to gather and convert data into customer insight and action? 1. Let “big data” reveal the customer you never knew 1. Let “big data” reveal the customer you never knew 2. Listen lavishly, respond with focus 2. Listen lavishly, respond with focus 3. Be where your customers expect you to be 3. Be where your customers expect you to be 15 © 2012 IBM Corporation
  • 16. IBM Institute for Business Value Question: Theme # 2 What percentage of public sector organizations do you think will be engaging citizens* as individuals in the next 3-5 years? *Customers if the government is offering paid services a) 75-100% b) Between 50 – 75% c) Less than 50% © 2012 IBM Corporation
  • 17. IBM Institute for Business Value How will CEOs create more economic value by innovating differently with partners? 17 © 2012 IBM Corporation
  • 18. IBM Institute for Business Value CIOs and CMOs have diverse motivations for external collaboration For CIOs, increased partnering is associated For CIOs, increased partnering is associated CMOs increase use of external partnerships CMOs increase use of external partnerships with aadesire to refine the mix of capabilities with desire to refine the mix of capabilities in the areas of sales, analytics, and IT skills in the areas of sales, analytics, and IT skills Sales contact/lead management 7% 7% 14% 14% Partnering extensively with other organizations Customer and data analytics 65% 65% 12% 12% 23% 23% Direct/relationship marketing 13% 13% 23% 23% Significantly change mix of capabilities, knowledge and assets IT skills 66% 66% 23% 23% 37% 37% Today In 3 to 5 years Source: 2011 CIO Study Q7 “To benefit from global integration will your organization do the following?”; 2011 CMO Study Q16 “What do you do within marketing and what resources will you tap into, to manage marketing?” 18 © 2012 IBM Corporation
  • 19. Outperformance drivers IBM Institute for Business Value Partnering for innovation is particularly important for Public Sector leaders External partnering for innovation To a very large extent 53% 68% 28% more Global Government Source: QD “To what extent does your organization collaborate and partner (externally) to innovate?” (Global n=627 to 1625) (Government n=170) 19 © 2012 IBM Corporation
  • 20. IBM Institute for Business Value So, how can organizations partner more effectively to meet the innovation challenge? 1. Fundamentally change how you partner 1. Fundamentally change how you partner 2. Make partnerships personal 2. Make partnerships personal 3. Break collaboration boundaries 3. Break collaboration boundaries 20 © 2012 IBM Corporation
  • 21. IBM Institute for Business Value Question: Theme # 3 What percentage of public sector organizations do you think will be amplifying innovation with partnerships in the next 3-5 years? a) 75-100% b) Between 50 – 75% c) Less than 50% © 2012 IBM Corporation
  • 22. IBM Institute for Business Value After what you have heard from the leaders synopsis on the CEO study's three themes, how confident are you that you can improve your skills, knowledge and experience to be a significant contributor in the marketplace in the coming 3 to 5 years 1. Very confident 2. Some what confident 3. Not sure 4. Not confident 5. Not confident at all © 2012 IBM Corporation