April 25 speaking 2

Are you a sprinter who can run the 100 in a flash or are you a long-distance runner with your eye on pacing yourself? If you are slow to leave the block or never enter the race, you will not survive.

Let the Race Begin

Are you up to the challenge? Only you can decide!

Workshop Objectives• Where are we? • Make no mistake, we are all affected

both personally and corporately by the

Global Economy• Who is saying what?• Are they right?

• Where are we going?• Up up and away…or so we hope• As long as everyone plays nice

• What do we need to do to get there?• Open our doors, make friends, we are not alone anymore• Get to know our family, friends and neighbors

• Will we succeed?• We will if we embrace our strengths and acknowledge our weaknesses• We have to tell the truth and start the dialoged at the top• Collaborate and share both internally and externally

Copyright © 2014 by Cyber Defense Resources all rights reserved

What is Top on Executives Minds?

• More than 70 percent of the senior executives have stated that one of the top three focuses for the next three to five years is innovation.• The other 30 percent of executives see innovation as key to

keeping pace and possibly jumping ahead in today’s global business environment.• The traditional product and service categories will be replaced by

“evolutionary thinking” in business processes, distribution, value chains, business models, and even the functions of management.• KEY TO INNOVATION IS collaboration and partner relationships. • How effective is your company at internal collaboration?• Do you use external partnerships to enhance your product

offering and/or services?• Do you know what your customer wants to buy, how to buy it and

who or what makes you the most money?• If you don’t your competitors will.• Today’s Competitor may be tomorrow’s friend or family.


“Unless countries come together, to take the right kind of policy measures, we could be facing years of slow and sub-par growth; well below the slow sustainable growth needed to create enough jobs and improve living standards in the future.” She noted that among major industrial countries, growth is strongest in the United States. But she said it would be critical for the Fed to "carefully manage the gradual withdrawal" of its support for growth.


Bank of America/Merrill Lynch 2014 CFO Outlook Survey


Most CFA Institute members (63%) think the global economy will expand in 2014. This optimistic outlook representsa significant shift from the previous two years; in last year’s Global Market Sentiment Survey, only 40% of members expressed optimism about the worldwide economy. This year, members in the United Kingdom are the most optimistic about the global economy, with 78% expecting expansion. Brazilian and German members are similarly positive, with 74% and 70%, respectively. Members in China are the most cautious, with only 48% saying they expect the global economy to expand in the coming year. Even this number, however, is significantly higher than the mere 21% of members in China who expected global growth in 2013.

CFA Institute Global Market Sentiment Survey 2014


• United States averted a possible sever crisis but confidence was undermined by the governmental shutdown and therefore had a negative impact economic activity and will have until US rebuilds trust. • China Reforms many believe will strengthen economic structure and provide for continued rapid growth.• Japan continues to have inflation and positively, Abenomics seems to be having impact. • Eurozone has exited from a long and deep depression.• Major emerging markets status is anyone’s guess. Optimism about future growth has waned due to internal unrest.


What external factors will drive and/or impede your companies performance over the next year?

Deloiite and Tousch CFO Signals 4th Quarter 2013


Are We Restoring Trust?

Empowered by growing confidence in the economy and their own company performance, 94% of CFOs say they plan to pursue new growth strategies in 2014 with caution.

Employers will be challenged to attract, retain and develop people in 2014. Organizations will need bold, innovative talent and human resources strategies to compete for skills amidst a global economy recovery. As retention concerns mount, organizations will focus on building a passionate, highly-engaged workforce.1Copyright © 2014 by Cyber Defense Resources all rights reserved

Chartered Financial Analyst Institute again is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. The end goal: to create an environment where investors’ interests come first, markets function at their best, and economies grow. CFA Institute has more than 117,000 members in 140 countries and territories, including 110,000 CFA charter holders, and 140 member societies.

For more information, visit www.cfainstitute.org.

How Do We Restore Trust?


Economic Conditions Snapshot McKinsey & Company March 2014

% o

f re

spondents

Geopolitics Becomes The Number One Threat To Economic Growth

The Global Economical Threats to GLOBAL Growth?


% o

f re

spondents

Out of 12 risks that were presented as answer choices in the questionsDeveloped Asia, Europe and North AmericaChina Developed Markets (i.e. markets in Asia, Africa and the Middle East), India and Latin America

Economic Conditions Snapshot McKinsey & Company March 2014

The Global Economical Threats to DOMESTIC Growth?


Bank of America/Merrill Lynch 2014 CFO Outlook


Bank of America/Merrill Lynch 2014 CFO Outlook Survey


CFO Outlook 2014 BofA and Merrill Lynch


What is Your Company’s Business Focus for 2014








In which areas does your finance organization make a substantial contribution to the business?


What indicators do you use to monitor the performance of your financial organization?


Top Challenges for Implementing Collaboration

McKinsey Global Survey resultsBuilding organizational capabilities


Collaboration is at the Heart of Modern Business Process

• Close to 80% of the senior executives surveyed said that effective coordination and collaboration across product, functional, and geographic lines was crucial for growth. • Only 25% said their organizations was "effective" at sharing

knowledge across boundaries.• Falling communications costs, globalization, and the increasing

specialization of knowledge-based work have made collaboration within and among organizations more important than ever. • “Tacit" interactions and socialization methods of communication

increase the complexity of management.• Implementing and Managing Collaboration is not easy.• Task Oriented Linear, process-based tools such as activity-based

costing, business process reengineering, and total quality management ARE NOT EFFECTIVE at providing information on invisible employee networks and interactions that help employees get things done across functional, hierarchical, and business unit boundaries.


•We need to map and analyze the collaborative value created (or destroyed) deep within employee networks.•Most complex employee network analysis tools today

focus on individual effectiveness i.e. communications, workflows, and resource exchange not on the interactions they create. •Today, executives’ focus needs to be on the revenue

and productivity benefits that collaborative interactions generate, the costs such interactions impose, and opportunities to improve connectivity at the points that create the greatest economic value.


Collaboration is at the Heart of Modern Business Process

Shift hiring practices to those who are more collaborativeCollaborative Leadership plays a key role

Mapping the Value of Employee Collaboration-McKinsey and Company


Employee Network Analysis

1. Identify the functions and activities where connectivity seems most relevant.

2. Map relationships within those priority areas.• Options for obtaining the necessary information • Track E-mail• Social Media• Twitter, LinkedIn, Facebook, Pintrest

• Observing employees by using existing data • Time cards , Project charge codes, team

assignments• Administer a short (5- to 20-minute) questionnaire


Quantifying Costs and Benefits of Collaboration

• ANALYSIS: Compare the time employees spend on interactions of various types as well as the savings and sales contributions of specific collaborations. • INPUTS: Fully loaded compensation figures for network participants and

detailed survey results • Questions are posed bidirectional: if Joe says he was helpful to Jane, but

she says she doesn't know him, his claim is disregarded. With the information in hand, companies can use standard software to create network maps illustrating relationships• Examples: • "How much time did working with employee X save you?" or • "On how many deals in the following revenue bands did you work with

employee Y?").• "Whom do you ask for advice before making an important decision?" • "With whom are you most likely to discuss a new idea?“



Mapping Individual Performance• GOAL: Boost a non-profit’s fund-raisers' productivity• PLAN: Identify and target specific types of donors and their motivations

for their donation, execute a step-by-step sales process with measurable results in a defined sequence, and tailored donor interests as the benchmark. Note: Only some high performers followed few of these practices; Most low performers embraced them all.• ANALYSIS: Network analysis gave insight into individual, team, and

organization-wide performance issues. High-performing fund-raisers not only had strong relationships with donors but also accounted for a disproportionate share (25 percent) of the connections within the fund-raising group. Tenure and experience were key reasons for the high performers' strong networks. Low-tenure fund-raisers got stuck on the fringes of both their internal and external networks and became dissatisfied, and quit before they became productive.• SOLUTION: By helping new fund-raisers rapidly replicate the high

performers' networks, the nonprofit expected to increase its revenue from employees with no more than two years' tenure by nearly 200%.


Mapping Team Performance• GOAL: Boost efficiency and productivity of a large global

construction company. • PLAN: Find out what the difference between the strongly

performing sales offices and the poorly performing ones.• ANALYSIS: a key distinction between the strongly and poorly

performing offices was the percentage of collaborative time with customers. 68 percent for the stronger performers and 50 percent for the poorly performing performers. Deeper analysis revealed that hierarchy, organizational design and project management processes differed from the strongly performing and the poorly performing. • SOLUTION: The construction company replicated the network

orientation of high-performing offices in poorly performing ones.


Mapping Organization-wide Performance• GOAL: Increase Sales and eliminate bottlenecks within the sales process

in an engineering company that recently had experienced growing pains through an international expansion.• PLAN: Align objectives across the teams of construction managers who

focused on cutting costs and engineers who focused on technical solutions. • ANALYISIS: Overall, the company's culture and linear view of the

construction process that emphasized tasks performed by each group and the handoffs between seemed to be efficient enough. Through an analysis of one of the engineering company's high-performing groups a small number of highly specialized construction managers and engineers had accounted for 35% of all the collaboration occurring within it. Due to this internal mapping of specialized talents, this collaboration dramatically enhanced the group's ability to deliver expertise.• SOLUTION: Identifying and building connectivity between specialists in

other groups helped the firm to raise its construction revenue to $275 million, from $80 million, in a single year.


Sales and Generating Revenue

• Everyone Must Have Collaboration Goals as a Part of their Job Description including Finance• How does knowing from where the money comes from and where the money goes help?• Everyone needs to know where their paycheck is coming from and overall how their job

contributes to the P&L.• A network view often uncovers "hidden" people whose contribution to cross-selling or

closing deals is far greater than individually focused performance metrics might imply.• Are customers paying on time or early?• Who is buying what and how often?• Are there any possibilities for collaboration with our vendors to increase our customer

base? • What other services do our partners offer that might help create additional offerings?• It can also suggest where to replicate collaborative behavior, when to draw in valuable

experts from the network's fringe, and how to eliminate obstacles to collaborative sales efforts.• obstacles that include time, skills, personalities, incentives, and ignorance of which

colleagues have expertise.


Example of Improving Cross-Selling• GOAL: Increase sales by increasing responsiveness to customers at a leading

technology company during market shifts.• PLAN: Find out where collaboration affects the generation of revenue and

where it affects key players roles.• ANALYSIS: The company broke out collaborative contributions by bands of

revenue and learned that the most and least valuable interactions (those generating more than $2,000,000 and less than $250,000, respectively) invariably involved different people. What's more, a network perspective helped the company identify which colleagues knew about one other's expertise but didn't draw on it.• SOLUTION: Replicate the major contributors' behavior and provide adequate

training for key salespeople as well as others to understand how collaboration could make them more successful. The high-performing collaborators showed specific traits that the company believed help make them successful: they were accommodating, more responsive to requests, flexible, amenable to constructive criticism, enthusiastic team players, and effective conflict managers. The companies incentive program and training programs were changed in an effort to build collaborative skills throughout the sales network.


Enhancing Career Paths• GOAL: At a global consulting firm, increase revenue through identifying

and creating more efficient workflows with partners and through collaboration create additional opportunities for growth. Also, identify and measure the role the partners play in overall success.• PLAN: Use employee network analytic tools to analyze the sales efforts 80

partners• ANALYSIS: Through performance management process review that

recognized individual revenue production, the company identified 2 crucial categories of people who weren't being recognized. • SOLUTION: The company identified 10 partners who supported

collaborative efforts by making joint sales calls yielding 60% of this group's revenue; the top 5 accounted for 38 % A completely different subset of partners were identified that made an enormous contribution to the execution of projects by helping others to save time and generate high-quality work; this second group, for example, contributed expertise on the problems of clients, visited them, and helped with analyses. The contributions of these partners, too, were highly concentrated: the top 10 people were responsible for 48% of the value generated through time savings, and the top 5 for 32%


Boosting Productivity• Employee Network analysis can show that through collaboration

they can generate savings by facilitating the transfer of advice and information from colleague to colleague. • In other cases, an employee network perspective isolates unseen

collaborative inefficiencies resulting from poor job design, an ineffective allocation of the right to make decisions, and outdated role definitions, process steps, or organizational designs.• The specific issues and interventions vary considerably across

industries. But some general themes emerge. Often, companies that operate without a network perspective allocate resources inefficiently, manage talent blindly, and experience large disparities in the effectiveness of collaboration within and across units.• Scrutinizing the time savings that relationships generate helps

companies to isolate what's working; to decide what, where, and how to invest in additional connectivity; and to redefine roles and staffing levels. Examples from three very different industries illustrate the range of possibilities.


The Neuroscience of Leadership Development –John Kotter

Barriers to Collaboration: Hierarchical structure is ideal for creating economies of scale in pursuit of quality through standardization. Hierarchies also introduce layer upon layer of barriers to communication and cooperation resulting in silos of thought and the defense of symbolic, if only imaginary, turf. Years of downsizing and cost cutting has exacerbated these barriers as associates keep their heads down and dig in their heels with their peers and direct reports.


The Neuroscience of Leadership Development-John Kotter

Hierarchies have been the dominant structure and is the standard form for large companies. Once upon a time, in 1855, a bottom up tree like structure was created by an executive for the New York and Erie Railroad. The board of directors are represented at the roots and executive management moves up into the trunk while line managers branch out along the various front lines of the railroad. This places leadership at the base and reflects a perspective of senior leadership’s role in nurturing and providing strength for the growth of the corporation, empowering front line management with the authority to make immediate decisions in real-time. This was no small issue when trains ran in two directions on the same tracks. Any miscommunication, in the age of the telegraph, would result in horrific, head-on collisions. Not good for the paying customers or the shareholders, to say the least.

Copyright © 2014by Cyber Defense Resources all rights reserved

John Katter's Strategy Accelerator

SOLUTION: Design a 2nd Operational System to create and implement strategy, that is agile also a network structure its own set of processes. PLAN: To continually assess the business, the industry, and the internal society, and react with greater agility, speed, and creativity than the existing one. It complements the traditional hierarchy, thus freeing the it to do what it’s optimized to do. Enterprises are easier to run and strategic change happens rapidly. Both systems must operate in concert with each other.



So…How Do We Do This?

The Neuroscience of Leadership Development-John Kotter

Open networks are those with “structural diversity”; where the people you know are not all connected to each other. Leaders with open networks are more likely to hear new information from disparate sources, be able to merge dissimilar ideas in a new creative thread and be able to capitalize on possible unseen opportunities. They tend to perform better, are promoted more rapidly, enjoy greater career mobility, and adapt to change more effectively (Burt, 1992; Cross, Thomas, & Light, 2008).

Good Employee Networks are Open


Good Employee Networks are Diverse

•Many of the same advantages of open networks• Leadership involves working across vertical,

horizontal, stakeholder, demographic, and geographic boundaries for group and organizational success (Yip, Ernst, & Campbell, 2009; Ernst & Chrobot-Mason, 2010). • Individual leader’s network connections form the

bridges that span these boundaries and allow for collective action (Cross, Ernst, & Pasmore, in press).


Good Employee Networks are Deep

• Estimated to be 4 X the predictor of performance than other network predictors (Cross & Parker, 2004). • When leaders invest strategically in transparency, diversity and deeper

bonding, they develop more complete, creative, and unbiased views of issues.• More likely to yield new resources and crucial information. • Relationships will need to adapt over a Leaders career.• A critical skill is to know when and how to activate relationships – and

when and how to back away from or dial down relationships.• Active networks consist of 2-way relationships where individuals have

demonstrated reciprocity in working together, helping each other, and offering resources. • With that foundation of reciprocity, the level of trust grows.• Reciprocal, trusted relationships that are regular and ongoing are a

leader’s most active network.


STEPS TO NO MORE SILOS1. Identify high-performing networks of employees.2. Replicate these networks by forming collaboration

groups.3. Promote specific interactions that help generate revenue

and boost productivity.a. Targeted action is dramatically more effective than

promoting connectivity. 4. Have a broader network perspective.

a. Identify the few critical points where improved connectivity creates economic value.

b. Be able to cross connect business unit and functional silos, physical distance, organizational hierarchies, and a scarcity of expertise.


Validating Effectiveness of Sharing Good Ideas• GOAL: A leading petrochemical company wanted to determine where their employees can

increase uptime to solve problems from sharing best practices to better utilize investment in fixed assts.

• PLAN: Increase the ability to solve problems quickly across disciplines such as drilling, geology, physics, and production through more than 20 employee networks ranging in size from 50 to several hundred employees. These networks focused on work areas where people could benefit from sharing best practices.

• ANALYSIS: Network analysis showed that the effort, which previously had been operating largely on faith, was generating substantial, shareable productivity benefits. One 60-person network alone contributed $5 million in savings. A typical story involves engineers and an out-of-commission oil well. Engineers used their network to identify an expert who had no relationship with the well but did have critical knowledge that helped them fix it in two days instead of the expected four. Network analysis thus allowed the company to validate the efficacy of its networks.

• SOLUTION: The most successfully formed employee networks shared with all other networks best practices to problems previously solved. A knowledge-sharing team interviewed the leaders of networks to collect and disseminate best practices. The keys to success included forming networks carefully around focused topic areas closely related to the way work was actually done, giving network members the leadership and training for success. In this case, using collaborative tools would have been ineffective and an investment waste. The key was to continually track and measure success to encourage participation and inform decision making about when (and when not) to finance incremental network improvements.


Improving Allocation of Resources• GOAL: A global financial-services organization want to improve investment decisions on

collaborative relationships and understand fully what the best HR strategy should be. • PLAN: Map and calculate the time its key employees saved by sharing information and resources

across groups and with their colleagues.• ANALYSIS: Better results were realized when executives were allowed to improve the skill sets of

the networks and to weigh anticipated returns against the costs. After recognizing that a set of key brokers occupied central positions in the network, for instance, the company realized that connecting all of these people with each other and with just one person on the network's fringe would yield $140,000 a year in savings within business units and $865,000 across them.

• ANALYSIS: One division's global network of technical project managers generated monthly savings of 3,383 hours, roughly $215,000 by uncovering that about 70% of these savings resulted from collaboration within divisions and reduced redundant efforts, and to promote the exchange of expertise in project-management tools, methodologies, and technologies. Executives were better able to direct investments through aggregating results by business units, roles of responsibility, projects and stakeholder representation.

• SOLUTION: The company replicated the pilot company wide that should yield savings that ultimately will dwarf the initial results. By revealing the relational value created by people, executives were better able to measure and manage talent. Key contributors were now seen as playing an active role and therefore were financially rewarded where they had been overlooked before. Ultimately, the company redefined roles and performance metrics to promote collaboration, and built in compensation accordingly. Training programs were started to encouraged knowledge sharing.


The Neuroscience of Leadership Development

Missing from the above diagrams is how IT Infrastructure (technology) facilitates and enhances collaboration in a cost effective approach. Utilizing tools like SharePoint, box, drop box, LinkedIn, etc. will help cross organizational barriers to communication and collaboration while sparking engagement (especially with Gen-X and Gen-Y), authentic inclusion of diverse ideas, and the significant productivity gains necessary to stay competitive in the New Economy.


CANWEALL

AGREEThatWEare

NOTinKansasAnymore?


Possible Collaborative Technology Tools


Respondents in the largest study in the new peer-to-peer economy reported that they plan to double in next 12 months. Brands must develop a strategy in this new market and avoid being bypassed from peer-to-peer economic models.


The New Collaborative Economy

Over 80 leading brands have joined this peer-to-peer Collaborative Economy, tapping the crowd as a partner.

http://www.web-strategist.com/blog/2013/02/26/collaborative-economy-brand-edition/


How Major Brands Are Pursuing the Collaborative Economy

Over 9000 startups where put into a single diagram by five families, eleven classes, and a sample of district startups.

As companies were disrupted by social media, they adapted. Companies disrupted by this new peer economy called The Collaboration Economy are also adapting. We’re at the start of another ten year run. There are Entrepreneurial organizations being run by consultants for big brands like myself only to help them get involved, learn, and lead.


So when did this all begin? Although we think that collaboration has been here a long time, notably we think it started in 1938. At least that is as far back right now that we are prepared to go.



Disruptive Technology Description Example

Proximity Based Communications

Devices that capture and analyze a set of sensors, providing intelligence based on context of people, place, and time in a detailed manner

Mobile devices that use Indoor Positioning Systems IPS, NFC, RFID, mobile/social data, and Wi-Fi networks can identify a consumer as they move through a showroom floor, down to the inch.

3D Printing Technology that empowers manufacturing of 3D objects and production anywhere.

MakerBot, 3D systems, Affinia, Formlabs, Stratasys, and now replicator technology quickly scans, and copies a 3D item.

Collaborative ConsumptionWeb and mobile apps that enable users to share, rent, borrow, and gift products and services with low friction transactions.

AirBnb, Lyft, Uber, see my list of 200, and brand examples.

Gesture Based InterfacesTechnology that senses movement, and causes digital systems to respond. Computer interfaces and sensors will emerge causing keyboards and mice to fade away.

Leap, Kinnect and other technologies give path to a minority report experience. Eye tracking software such as Tobbi and retina tracking software even in store emerge.

Augmented RealityA layer of information is placed on top of our reality plan, using digital glasses, empowering users to access and transmit real time digital information.

Google Glass will emerge and empower consumers to access Google interfaces as they traverse world.

Index:2013 What Are The Disruptive Technologies?


Index 2013: What Are The Disruptive Technologies?Disruptive Technology Description Example

Virtual Reality Reality=an immersive experience across many senses that digital replicates sight, sound, feel.

Oculus Rift, Stanfords VR Lab provide immersive headsets that simulate a complete new world.

Quantified SelfWearable computing=body reading sensors harvest, analyze, and provide insight to how our bodies are working.

Body API, Nike Fuel Band, Nike+, Fitbit, Garmin, Runkeeper, most mobile devices track our movements.

Quantified World, Internet of Things

Technologies that capture data from around the world, cities, and nature to analyze and predict future patterns.

Nest thermostat, Telematics in cars and thousands of other sensors are actively collecting data and altering our world. Open data economy, data in mobile networks and mobile devices.

Digital Screen Experiences

There are evolutions happening to digital screens, from flexible screens that can morph to anything, to digital output devices everywhere, and 3D technology.

4k resolution (higher res than HDTV), 3D TVs, flexible OLED screens

Power EverywhereWireless power, solar power, and efficient power sources enable transportation, devices, enable more computing, sensing, and information spread.

Powermat, Powertrekk, eCoupled provide wireless power

Drones and Automated Robots

Technology is empowering for humans to man aerial drones to also create self-driving cars, warehouse robots, and more. The impacts to business, technology, government, privacy, and warfare are just starting to surface.

ARDrone (I owned version 1), Google’s self driving car, and Amazon’s robot warehouse are just the start of the automated planet.


WE MUST ACCEPT WE HAVE A DIGITAL WORLD AND TECHNOLOGY PLAYS A MAJOR ROLL TO OUR

OPERATIONS AND SURVIVALSUMMARY• Both internal and external collaboration is a means for our

survival.• How fast we can continually map, measure and implement

strategies based on collaboration is key for our survival.• Transformation and innovation MUST consider disruptive

technologies.• How proactively we supply our customer demands using

their preferred buying styles will determine our longevity.•We must establish trust with our customers and partners.• If we don’t our competitors will.


"Creativity, as has been said, consists largely of rearranging what we know in order to find out what we do not know. Hence, to think creatively, we must be able to look afresh at what we normally take for granted."— George Kneller

"It isn't the incompetent who destroy an organization. The incompetent never get in a position to destroy it. It is those who achieved something and want to rest upon their achievements who are forever clogging things up."— F. M. Young


"Please understand my friend, that where you find yourself tomorrow is a function of the decisions and actions you take today."- Akin A. Awolaja


Questions?

Robin Austin, PresidentCyber Defense [email protected] 469-474-3062www.cyberdefenseresources.com

Investor Relations

April 25 speaking 2