Organisations big and small must continuously reinvent themselves and create cultures that embrace change in order to survive, outgoing Telstra CEO David Thodey told a QUT Business Leaders' Forum today.
Reflecting on his six year leadership of the telco - during which Telstra's value doubled to more than $80 billion - Mr Thodey warned businesses would face fundamental change driven by advances in technology.
He described his time at the helm of the world's ninth largest telco by market capitalisation as "an incredible journey" but cautioned further challenges lay ahead.
"I've been in the technology area since I was 21, so 40 years," Mr Thodey told a crowd of more than 500 at the Hilton Brisbane.
"But I've got to say, in the past two years I've seen more change in technology and in business models causing fundamental business disruption than I've ever seen in my career."
He outlined five key areas businesses and leaders must address to take advantage of rapidly changing technology and business models - customer service, reinvention, culture, innovation and creativity, and leadership.
"In the age of the consumer, where's there's more power with the consumer than ever before ... great customer service is no longer optional," Mr Thodey, who made "customer advocacy" Telstra's number one objective, said.
"Whether you want it to be or not, if you don't provide great customer service your future is definitely limited."
Mr Thodey said reinvention of businesses and individuals was "absolutely essential to remain relevant" and highlighted Telstra's investment in e-health and software.
"I think the company will look fundamentally different within the next 5 to 6 years," he said.
"I think that companies have this deep-seated belief that what you did yesterday was enough but it's no longer enough. You must always be willing to reinvent yourself and never willing to relax."
Highlighting Telstra's policy of allowing staff to undertake travel without managerial approval or the need to submit an expenses claim, Mr Thodey said "culture beats strategy every day".
"When you start to trust your employees, they feel empowered to serve customers and it is revolutionary."
Mr Thodey said businesses who engaged in dialogues with their employees would reap the rewards - "your best critics are your own employees, and they'll tell you before your customers will" - and warned those unwilling to adapt that "leadership has changed forever."
"Even if I wanted to, I didn't know what went on at Telstra every day. The concept of the all-knowing CEO is gone forever. What a good CEO does is allow people to be really good at what they do," he said.
Mr Thodey discussed other opportunities for change in the business world, saying the gulf between the salaries of top executives and lowest paid staff at major organisations was "a conversation I think we have to have".
He also urged businesses to look for ways to create more inclusive cultures for women.
"Fundamentally more women are opting out of corporate Australia to do other things and we are the poorer for it," he said.
Without hinting at his next role, Mr Thodey said it had been a "real pleasure" to serve as Telstra CEO.
"I have mixed feelings about leaving but I've got other things to do."
Former Secretary to the Treasury Dr Martin Parkinson PSM will address the next Business Leaders' Forum on Tuesday, July 14.
For more information, go to: www.qut.edu.au/business/about/events/qut-business-leaders-forum
Media contact:
Rob Kidd, QUT Media, 07 3138 1841, rj.kidd@qut.edu.au
After hours, Rose Trapnell, 0407 585 901
