Experience led transformation at Qantas

Adobe Symposium 2018, Sydney

Nandor Locher - Head of Digital, Qantas Airways | Erik Hallander – Managing Director, Isobar

Heading

Where we find ourselves01 /

Moving mountains02 /

Tangible benefit03 /

Lessons from climbing mountains04 /

Where we find ourselves

Qantas Airways

Incredible complexity and scaleDistributed digital teams and broad stakeholder community across the Group

Challenges of alignmentInconsistent approach across teams, departments and crafts

Large digital operationsEcosystem of digital channels and assets generating over $3b in revenue

One of Australia’s most well-known and trusted brands. Large organisation with incredible complexity, catering to the needs of a broad range of customer segments as well as an array of internal stakeholders.

Everything around us

Advances in digitaltechnology is

impactingevery sphere of life

Customer expectations

are changing driven by “best

in class” digital experiences

We are facing stronger

competition from a broadening range

of players within the travel industry

Channel mix and booking

behaviours are shifting

What is the case for change?

Speed to Market Value Creation Effectiveness Agility

Innovation Competitive Differentiator

Internal Business Partner

Digital Employer of Choice

Digital Transformation

Digital Experiences (The What)Transforming Qantas’ digital experiences across all touchpoints along the customer journey

Digital Technology (The Enablers)Continuing the transformation of our technology platforms and capabilities

Digital Operating Model (The How) Fundamentally changing the organisational structure, the way we work, think and engage

Digital transformation at Qantas consists of several dimensions and has 3 core programs of work, covering the WHAT, HOW and ENABLERS

Moving mountains

The vision for Qantas Airways

“We create the future of travel through world-class digital experiences”

Culture

Leadership & decision-making

Prioritisation & funding

Structure

Measuring performance & success

Capability & education

Technology & tools

Ways of working

A holistic transformation:8 pillars

Building a strong business case

Investments in a world-class digital organisation and capabilities will create value for customers, the business and employees.

Unlocking Value

A key foundation for the new model is to move away from project-based funding to capacity funding and persistent teams

Capacity Funded Teams

Digital is a core enabler of the broaer CX strategy. Putting the customer in the center of all considerations and commit to investment into customer experience.

Customer Strategy

Customer centric, Cross-functional Domains and squads

Domain Domain

Squad Chapter Guild

Ways of working

We embrace a culture of failing fast, often and with value in a structured process, informed by multiple data sources leading to creative, innovative and constantly improving solutions that encompass the entire spectrum of customer experience.

Desirability

Viability

Human Centred Design

Feasibility

Agile

Startup Thinking

Technical Excellence

Culture

Focus: Culture

The scope and nature of the culture challenge

Emergent, amorphous,changes over time

Tactical, problems have obvious solutions, known outcomes

Key Challenges

● Leadership

● Ambiguity fatigue

● Change fatigue

● Lack of understanding of scope and scale of transformation

Culture change is a “cloud problem”, not a “clock problem”.

Organisational belief: Structure, Vision, Governance

01 /

Team belief: Ways of working, alignment, team dynamics

02 /

Professional belief: Mastery, future skills, quality & craft

03 /

Self belief: Fulfilment, wellness, purpose, social connections

04 /Self Belief

Professional Belief

Team/Group Belief

Organisational Belief

Creating a culture of alignment and autonomy

Qantas group vision

Target CX Vision

Digital Vision

Transformation Vision

Focus: Leadership

Key Challenges

● Leadership capacity

● Prioritisation of transformation vs. BAU

● Capability. skills & experience

● Change management

● Thought leadership and co-creation

● Cultural change

● Accountability and ownership

Leadership challenges

Modelling leadership

Servant leadershipInvolving others as a priority, aim to serve the team and remove obstacles

Psychological safetyIt’s okay to be wrong, to not know the answer, to not understand

Alignment on visionEvery leader across the business able to stand behind the vision and purpose

Shifting an entire operating model depends greatly on the leaders attached to the business.

A significant effort was placed to ensure key leaders are brought along to see the benefit of how Qantas aim to work for 2018 and beyond.

While skilled in their area of expertise, many leaders are not experienced in change management. Support is crucial.

Focus: Scale

Size and scale of the transformation increases complexity significantly and is a key aspect to be managed

01 /

Digital teams are deeply integrated across the business and need to operate alongside enterprise processes

02 /

Start small to test and learn, but scale at speed and with determination to get the job done and avoid change fatigue

03 /

Change at this scale needs time to be fully embedded. Be pragmatic and patient about the journey. .

04 /

Tangible benefit

Early signs of success

● Greater collaboration and engagement across teams and with stakeholders

● Speed to market through frequent iterative cycles increasing

● Improved value-based prioritisation and transparent demand management

● Increased sense of accountability and ownership amongst teams, driving employee engagement

● Growing focus on addressing customer pain points and improving customer experience

Lessons from climbing mountains

Do

Invest in the HOWIt will unlock the

WHAT

Seek holistic change

A new tool or platform does not sufficiently change

the business

Champion autonomy

Limit hierarchy, give staff missions and

make sure they are given freedom

Align everything Values, vision, CX

and transformation are all linked, and need to align for

people to fully see the benefit

Do not

Mistake technology for transformation

People are always our biggest assets.

Always. Change starts with people.

RushHolistic change is

time-consuming by design.

Forget leaders While leaders are generally ‘bought

in’, don’t underestimate effort required

Be a lone wolf Find great partners to help you execute, and focus on what’s

important

“We create the future of travel through world-class digital experiences”

Thank you