“Very often management books seek to provide guidance on how to react to major trends and provide prescriptions for managers on what to do next. What distinguishes Australia 2034, luckier by design, is that having identified the major forces shaping our future, it does not fall for the trap of trying to predict specific futures, but rather concentrates on the need to build the right culture and capabilities in a firm to enable it to thrive in the face of those forces. It is a very accessible and worthwhile read.
The key themes of culture and capability building which anchor the Australia 2034, luckier by design study, are very important when companies consider how to make effective use of business analytics. Data (big or not) without context are of little use. The challenge for any enterprise is how to make routine and systematic use of business analytics by establishing the relevant capabilities, and perhaps even more importantly, making their use a part of the way of life, a part of the culture.”
Chairman and non-executive Director, Amcor Limited
“As an Operations Manager I can relate to the need for operational agility as discussed in Chapter 5. Love to hear from others who have achieved or are trying to achieve a lean and simple operating model……that facilitates rapid decision making processes, is backed by relevant incentives, and is structured for demand-generating activities versus support services”.
“In its short history, Australia has shown remarkable resilience to changing circumstances, however unless our leaders wake up to the challenges of today’s rapidly evolving business environment our prized status as “the lucky country” is threatened.
Andrade and Munro’s new book calls out some uncomfortable truths and provides valuable perspectives on seven core capabilities that all business leaders and their Boards should be carefully considering when developing their business strategies. ….
Any business leader intent on creating a successful organisation will benefit from this thoughtful and challenging book. The authors blend stories and theory as they provide a summary of the leadership mindset and critical capabilities that need to be embraced now in order to position businesses for success – today and in the future.”
Non-Executive Director of Super Partners
Non-Executive Director of Melbourne Health
“Business planning is never easy but planning 20 years ahead is more art than science. This is particularly the case given the rapidly changing world we now live in. While difficult, the statistics contained in Australia 2034: Luckier by Design, reinforce the value of long-term planning for all businesses that desire longevity. Of the top 100 Australian companies in the ASX in 1994, only 29 were still part of the Index in 2013. The survival rate in other countries is no better.
While this book is mainly aimed at Australian businesses, the messages are relevant for businesses everywhere. Following the global economic crisis, the world is still struggling to find stable growth and after 20 years of growth, Australia is now facing a similar challenge. The message from A. T. Kearney is that more of the same will not be enough. For long-term success the key messages of the book are clear: Asia matters, but to succeed Australian businesses must be clear on their value propositions and recognize that Asia is not a monolith; it is 27 very different countries with very different cultures. Successful businesses will be those that understand the concept of shared value creation, notably, that there is a direct correlation between a company’s success and the health of its related communities (including suppliers, customers, employees, and shareholders).
A focus on value will be particularly important with respect to the customer. Tomorrow’s customer will expect products and services that are relevant for their lifestyles. Achieving these outcomes will require a very different approach to business management. Organizations that succeed will understand that change is a constant. This means that businesses have to be agile, with a focus on continuous improvement, including a passion for productivity through a culture of continuous improvement. Analytics will be essential to ensure that the customer and organizational dynamics are understood and that the organization is able to respond appropriately.
In summary, this is not a world where businesses can stand still. The authors provide case studies of companies that have both failed and succeeded to recognize the shifts around them and the follow-on consequences. For all those business leaders who recognize the challenges ahead but struggle to know where to begin, this book provides a practical approach to success. The book concludes: ‘the future will be inherently uncertain, therefore businesses need to arm themselves with the necessary capabilities to navigate in an uncertain world’.
Reading this book is an essential first step towards a more certain future.”
Former CIO and Management Board Member ANZ Bank.
“Australia’s living standards are closely linked to our economic productivity. In recent years we have ceased to be competitive with our OECD peers. AT Kearney’s contribution to restarting the productivity drive is most welcome. As usual it is backed by detailed analysis and thoughtful argument.”
“Australia 2034: Luckier by Design is a compelling read for the managers of today and tomorrow. Andrade and Munro leave no stone unturned in forcing the reader to agree that the old methods of business management are not robust or inclusive enough in a globalizing world. They argue that shareholder value creation (SVC) comes from benefitting communities not just individuals and give detailed evidence to support this approach. The authors supply a set of systems, processes, and measures that can be adapted to any business to deliver SVC.
Andrade and Munro lead us through the key attributes required of businesses that are to survive through to 2034. Businesses should lead through value innovation. Innovation requires agility and this agility needs to be in the DNA of the business—that is, it needs to be represented in all phases of the business, from planning through to delivery. Andrade and Munro show us that agile organizations have a purpose, are fit to compete, and have a level of diversity to ameliorate risk. In this way, they can manage their way through the disruption that organizations and businesses inevitably encounter. This disruption is caused by the inherent conflict between market share and profitability. Fit organizations confront disruption before it occurs.
The authors then lead us through the concept of value innovation, focusing on how organizations create value for customers. The concept of customer-centric marketing has been around for some time. Andrade and Munro take this concept and show us that in many cases this is not what the customer truly needs. Pivotal Customer Events should be identified and strategies deployed to take advantage of these events. Rightfully, Andrade and Munro argue that “reliable and continuous creation of customer value will be crucial and a lasting source of strategic advantage”. This section also focuses on productivity. While many organizations confuse productivity with cost-reduction, the authors contend that true productivity requires a focus on both outputs and inputs to create sustainable value.
Andrade and Munro have produced an important piece of work that should be read closely and that leaves the reader accepting that success is better from design than from just pure luck. This design requires a new way of thinking and delivery if we are to be as successful in the future as we have been in the past.”
Former CFO of Leighton Holdings and Qantas Airways