Newsletter Volume 9
OUR
NEWS &
INSIGHTS
ON Q...
Globalisation has been given a kick in the shins by voters on
both sides of the Atlantic.
‘Change is unpredictable’. Yet, so many people were shocked by
the unpredictability of Brexit and the US presidential election.
Businesses have embraced digital technology, found cheaper
ways of manufacturing goods, and have taken advantage of
off-shoring various business functions. Employees, displaced by
these developments, have felt let down and disenfranchised.
Sixty percent of projects that Q5 support involve some form of
‘globalisation’ – be it organisation restructuring or designing
and implementing ‘digital’ ways of working.
But, change also brings opportunity. Q5 itself grew out of a
frustration with the way the Big 5 consulting firms had evolved
in the ‘90s and ‘00s. Many business leaders began reacting
against oversell - ‘you will need forty consultants for the next 18
months’. Too many change projects were going off track.
Q5 seized on this sentiment. We wanted to build a firm that
became the authority on ‘change.’ We wanted clients to
think of Q5 first, when they needed ‘to make change happen
effectively’. We’d partner with our clients (not ‘do’ to them).
We’d mobilise small, highly capable teams. We’d work on a
fixed fee to a fixed brief wherever possible.
Since 2009, Q5 has grown at an annualised rate of 60%. We
serve about 70 different client organisations a year, from our
offices in London, New York, Sydney and Hong Kong. Our
projects last from 3 weeks to 12 months.
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It’s a given that Q5ers are deeply experienced in organisation
design, process design, strategy implementation and change
management. One differentiator - at least to Big 5 firms - is
that every Q5er is immersed in the ‘rhythm’ of business.
They oversee P&L. They manage cashflow. They know what a
‘debtor day’ is. They care about the commercial success of your
organisation, and the reputation and performance of our own.
Will business leaders turn their backs on globalisation? This
is very unlikely in a digital economy, whatever politicians say.
However, we do, as business leaders, have a responsibility
to think wisely and compassionately about the people in the
organisations we lead and the markets we serve.
We need to be circumspect in the way we support those people
who are dislocated by our corporate decision-making. If we
want our businesses to enhance their influence and reputation,
we must support and develop those who are most impacted by
business change.
Business has a pivotal role to play in society. Q5 will continue to
work with business leaders to support the communities that are
most disrupted by change, building new skills and capabilities.
We hope you enjoy this newsletter. It offers a few glimpses of
the work we do. We’d love to hear from you.
Olly Purnell, Managing Partner
Why Q5?
We help our clients deliver sustainable change that lasts for years. We want you to keep thriving beyond the intial
four quarters and that is where our name comes from: Quarter Five or ‘Q5’. We’re a lean and nimble firm with a global
reach and work closely with our clients to get the best results - because no one knows your business better than you.
We specialise in the following areas:
STRATEGY
PEOPLE
Set the right direction. We help our clients
to ‘think big’ and realise their potential.
It’s about creating strategies that are clear,
implementable and that deliver results.
Engaged, aligned and motivated. We help
clients inspire their people to fully understand
and connect with their roles in a new way to think differently, behave differently and
deliver results. We bring experience of what
we have seen work, what doesn’t work and
we always listen to what is going on in their
organisation. We do not come with any
preconceived ideas about what will work.
DESIGN
Fit for purpose organisation design. We
help clients design a fit-for-purpose structure
that is scalable for their future ambitions.
Our approach to organisation design places
our clients at the heart of the process. We
provide rigour - our methods and OD toolkit
are frequently described as ‘the best around’.
CHANGE
Make it stick. We support our clients to
manage change to their advantage, to
understand what it feels like to experience
change and build the skills they need
internally. We give clients the tools to shape,
plan, communicate and monitor activities to
make the change ‘stick’.
PROCESS
Efficient and value adding. We help clients
identify and improve the processes that are
crucial to their success as a business. We do
not create mountains of process maps, which
all too often get left unused on a shelf, we
work with our clients to decide what work
needs to get done to ensure everyone is clear
about ownership of tasks and understands
their role.
PROUD TO WORK WITH
A FEW OF OUR RECENT CLIENTS
Spotlight on Sydney
Since opening our Sydney office in September 2015, our friendly
team has been busy working with several iconic brands – particularly
in the Media and Higher Education sectors. Our personal, pragmatic
approach has been going down well with the CEOs and business
leaders that we’ve partnered with.
And thanks to a rapidly growing network of Q5ers, associates and
partner organisations, we’ve been able to draw on a wealth of local
and global knowledge. All in all, a fantastic start!
A Masterclass in Organisation Design
British Airways faces a rapidly evolving
external environment, and needs to
ensure that any organisational change
initiatives ‘stick’. We partnered with
BA to create and deliver a series
of bespoke organisation design
‘Masterclasses’ to 52 HR and business
leads.
Across two days, we equipped the
HR leaders with a specially adapted
approach and toolkit to help them
improve the delivery of organisational
change. We also invited leading
thinkers with vast amounts of
experience (including ex CEOs of
lastminute.com and Virgin Media) to
share their views.
BA’s Head of Organisation Design said
the Masterclass was ‘an excellent
intervention, which will change the
way BA approach organisational
design.’
If you’d like to know more about our
Q5 Masterclasses, please do get in
touch.
Sharon Rice-Oxley
Partner
Some wise words from
our expert panel...
‘To overcome change
fatigue (after many rounds of
transformations), you should
honour the past and listen to the
stories. Demonstrate that you’ve
learned and demonstrate how
this time it is different.’
‘The team that’s leading
the change needs to
spend time together.
Communication must be
transparent, frequent and
clear.’
Liz Neighbour
Group Head of Talent and OD
Balfour Beatty
(previously BAA)
Matthew Crummack
CEO gocompare.com
(previously CEO
Lastminute.com)
‘If you’re new to organisation
design, trust your intuition and
make sure you’re backed up by a
framework. Define a simple set of
enduring principles that will guide
your decisions at the toughest
moments. Make strategic choices
on big pieces of activity before the
detailed roles or structures – what is
often called the ‘operating model’ –
this is the essence of design.’
‘Organisation design needs
to last for years, so it’s worth
taking time at the beginning
to make sure you get it right.
It may take a month or two
longer to work it all out, but it’s
well worth the investment.’
Stephen Beynon
ex MD British Gas Residential
Energy (previously MD Virgin
Media Business)
Jaimini Lakhani
Head of Organisation Design
British Council
(previously Burberry)
Q5 stage ‘Quolympics’
This summer we held our first ever
Olympics – or ‘Quolympics’. In
London, around sixty Q5ers, along
with their friends and family, threw
themselves into the long jump and
sack race, before bringing their
A-Game to the egg and spoon
race and three-legged sprint. Our
athletes ranged from toddlers to
giants and the emphasis was very
much on having fun (although,
for the record, the green team
won). Not to be outdone, our
Sydney team held their own games
on Coogee beach, where they
sprinted, jumped and threw wellies
in the air. And whilst the London
team’s finale was a traditional tug
of war, our Sydney Q5ers headed
to a nearby restaurant for an
intense prawn-peeling contest!
Magic Sponge
Soaking up the wisdom of the smartest thinkers we know…
Nicola Kane works for Credit Suisse as a
Managing Director and Head of Group
Operations for UK IB Entities and in 2006
she was one of 35 (out of 262) women
who were promoted to MD at Goldman
Sachs. Not bad for someone who ‘fell
into’ her dream job! Here, Nicola talks
about her own leadership style, the
challenges facing the Financial Sector,
and why we should all make time for
coffee.
What’s the best career advice you’ve
been given?
One female manager told me to ‘take
time to have coffee’, which I thought
was an odd thing to say, but what she
meant was invest in your network.
Building rapport with people is so
important: it makes it easier to talk
about contentious issues and solve
problems. She also told me not to make
things look too easy. I think it’s a female
trait, expecting results to speak for
themselves, but if you never tell your
manager about the challenges you
faced, they get no insight into the skills
you brought to bear. It’s about selfpromotion, but without boasting.
What attracted you to the Financial
Services sector in the first place?
I rebelled after A levels and joined a
management scheme at a retail bank
instead of going to university. But I
soon learned that it wasn’t for me, and
enrolled on a Business degree. I then
worked for Deloitte in their financial
consultancy before qualifying as a
Chartered Accountant. My move into
Operations came about by chance, when
a recruitment consultant sent me to JP
Morgan for an interview. I had no idea
what Operations was at the time, but
it was a watershed moment: I’d found
a job that I love which played to my
strengths.
You were at Goldman’s for fifteen
years, what makes them so successful?
People take a lot of ownership and
accountability. They hire people who are
very driven, motivated and competitive.
It works for them, but it wouldn’t work
everywhere. I was very conscious of
adapting my skills when I moved to
Credit Suisse – I tried to understand
their culture rather than expecting them
to adopt the Goldman’s culture.
Why do you think it’s tricky for women
to gain senior positions in the Financial
Sector?
Firstly, there are a number of women
who, if they wanted to, could achieve it,
but perhaps don’t because they make
other life choices that’s their choice
and they can still have a valuable and
rewarding career. For those who do
want to get to the top, recognising
the traits that define success is key,
how to demonstrate those behaviours
in a way that is still genuine and true
to yourself is the art. For example,
I tend to motivate people through
encouragement “the carrot”, but when
that didn’t always get the results I
needed I had to develop some “stick”
behaviours. At the end of the day it’s
about balance, what do I need to do to
achieve the desired end result and how
do I do that in a way that is genuine and
true to myself.
Hopefully the HM Treasury’s Women
in Finance Charter will continue to
encourage more firms to support
women in top positions. Credit Suisse
has signed the charter which requires
Board accountability and commits us
to a minimum number of females in
key governance roles. Ultimately we
will be looking to tie results in with
performance.
What’s your leadership style?
I’m proactive, I take ownership and
I don’t micromanage. Although I
delegate, I don’t abdicate, so I still ‘own’
the problem. I believe in teamwork and
collaboration. I try to be honest about
the what and the why, build trust and
value honesty and integrity.
London: +44 (0) 20 7340 0660
New York: +1 (646) 569 9198
Sydney: +61 02 8310 5354
Hong Kong: +852 8192 4416
What lessons can we learn from the
2008 ‘financial crash’?
Humility! An appreciation that the
majority of people don’t understand,
or see the value of, what we do. There’s
a need to educate people and re-build
trust: we’re not all ‘evil’. Regulation is
a necessary evil which we all need to
comply with, however, as important
as the letter of the regulation is, the
underlying principles and intent are
what we also need to embrace to rebuild
our reputation.
Although I
delegate, I
don’t abdicate,
so I still ‘own’
the problem
What do you think are the biggest
challenges for Financial Services?
Cost is a huge challenge, the burden of
compliance with regulation is adding
significantly to the cost base. We need
to find cheaper more efficient ways to
operate, offshoring to Poland or India is
not going to be enough. We need a step
change in technological innovation.
How do you relax?
It helps that I’m good at
compartmentalising, and can easily
switch off from work. I have an
incredibly supportive husband, and
teenage twins who keep me grounded.
We make a point of sitting down for
dinner most nights and discussing our
day. I recently took up the piano, and I
love the way that it focuses my attention
– but I’m a slow learner and my family
are getting really fed up of Silent Night!
@q5partners
www.q5partners.com
All content Copyright © Q5 Partners
Cost Cutting – An Opportunity in Disguise?
When costs need to come out of a
business, the first instinct is to try
and use your current methods better
– perhaps cutting hard and fast from
the top down; or implementing zerobased budgeting, then justifying
what to keep. But what if your
current thinking won’t take you far
enough?
TIPS ON WHERE TO START
Our overwhelming experience
shows that when companies focus
on short-term costing, it often
causes unintended consequences.
Relying on 10% cuts, without really
understanding where these costs
are coming from, only leads to the
‘elastic band’ effect: costs taken out
‘spring back’ six to twelve months
later, as the underlying activity still
needs to be carried out.
What’s working well right
now?
There are things about your
business today that are working well
and could form the basis for future
success. Building on what’s great
already means that you’re starting
out with positive intent.
Evaluating your costs presents a
fantastic opportunity to review your
whole organisation: to identify the
areas that are working well, and
where value is being added - or
destroyed. It involves thinking
holistically, in a systematic way,
about your entire organisation.
1
What’s your competitive
advantage?
Decide on what will enable you
to survive the current challenges,
whilst ensuring that you’ll be better
placed than your competitors when
the markets improve.
2
3
What are the implications?
Put your customer and your
people at the heart of every
efficiency saving. Your organisation
cannot function without both of
these – regardless of how healthy
your new balance sheet might look.
This may mean radically re-thinking
what the ‘essential costs’ are.
4
Are you making the most of
the opportunity?
Cost transformation should
be a platform for success, not an
emergency procedure. Don’t miss
the chance to review your operating
model. What would make your
organisation easier to engage with?
How could you function better
internally? How could you deliver
products and services better and
quicker?
5
Have you set targets, and
does your team know what
they are?
Measure the things that you want
to see changed and make sure
that everyone knows how they can
contribute. Clearly communicated
signs of progress will bring your
team together – they’ll see what’s
changing and why.
Our collaborative, holistic, future-focused approach has already achieved great success for a diverse range of clients.
For example, an organisational review created a £30m annual saving for a sports governing body; and a series of workshops with staff at a major UK retailer resulted in a new structure at Head Office, alongside an annual saving of £4.6m.
To find out what we can do for you, please contact one of our colleagues:
Chris Parsons
Q5 UK
[email protected]
Rick Dzavik
Q5 USA
[email protected]
Tom Leary
Q5 Australia
[email protected]
The Benefits of a Great Employer Brand
Today’s war for talent is being won by talent.
Increasingly, it’s not just about what your candidate
can offer you, but what you can offer them. To attract
the best people, whilst holding onto your most
talented employees, you need to know what it is that
makes your organisation unique, and why people want
to come to work in the morning. In other words, you
need to understand your ‘employer brand’.
You already have an employer brand, whether you are
aware of it or not. It includes things like your culture
and management style, the rewards and development
opportunities you offer, and your image and values.
A clear benefit of a great employer brand is better
recruitment and retention of talent, but our clients
have also seen improvements in other areas, such as:
• Increased productivity as a result of improved
continuity and stability
• Reduced HR costs, particularly internal recruitment
and onboarding
• Strengthened brand – ‘standing out’ from
competitors
TIPS ON WHERE TO START
Who will be responsible for owning your
employer brand?
Agree within your organisation who owns
the responsibility for your employer brand
– be it the Senior Leadership Team, HR, Marketing, or
anyone else.
What makes you different?
Consider your organisation as a whole and
define what makes it different to anywhere
else. Once you’ve done this, it’s easier
to assess whether your employer brand is reflected
through each of your employee touchpoints – like
your website, the interview experience and first day.
What do people love about working for
you?
Your employer brand needs to be driven
by authenticity, so engage everyone across
your organisation and ask them what it is that they
love about working there. Take care to ensure that
you have ways of absorbing feedback and that you
are in control of your key message.
Do your organisation’s purpose, values
and employer brand align?
Your employer brand and organisation
brand should form a virtuous circle and
complement each other. The more aligned and
engaged your workforce, the better your service will
be.
HOW WE CAN HELP
Our team of consultants, based in London, New York and Sydney work with a huge range of organisations, across
industry sectors. We have vast experience of helping clients evaluate, define and strengthen their employer brand –
equipping them with bespoke tools and models that can be re-used for years to come.
To find out more about Q5, and how we can help, please contact:
Peter Horne
Q5 Public Sector Lead
[email protected]
Claire Hamlin
Q5 Change Enablement Lead
[email protected]