Leading Through Connections: Insights from the Global IBM CEO StudyThree essential imperatives: How to respond -- Our study reveals insights from more than 1,700 CEO conversations and our own management consulting experience.IBMIBM_17c2524a-3273-11e2-9824-89e2dc04475cBridget van KralingenSenior Vice President, Global Business Services, IBM.CEOsIn speaking face-to-face with 1,709 CEOs, general managers and senior public sector leaders around the globe, leaders confirmed that our new connected era is changing how people engage.General ManagersLeadersLeaders are recognizing our new connected era is changing how people engage.BusinessesFor some time, businesses have been refining and optimizing their networks of suppliers and partners. They’re streamlining supply chains and creating massive back-office efficiencies. But something just as meaningful has been happening in the marketplace — the sudden convergence of the digital, social and mobile spheres — connecting customers, employees and partners in new ways to organizations and to each other. These changes put pressure on the front office to digitize and adapt but also create opportunities for the organization to innovate and lead.CustomersEmployeesPartners_17c2543e-3273-11e2-9824-89e2dc04475c[To help] connect customers, employees and partners in new ways to organizations and to each other._17c254f2-3273-11e2-9824-89e2dc04475cOrganizational AttributesOrganizational attributes: Engaging employees -- To draw out the best in their workforces, CEOs are most focused on three organizational attributes: Ethics and values, Collaborative environment, and Purpose and missionEngagementEmployee EngagementEthicsEthics and valuesCollaborationCollaborative environmentPurposePurpose and missionEmployee EmpowermentEmpower employees through values_17c25574-3273-11e2-9824-89e2dc04475c1EmployeesCEOsCEOs see greater organizational openness ahead. But as rules are refined and collaboration explodes, how will they avoid chaos, protect the business and deliver results?CEOs have a new strategy in the unending war for talent.Collaborative CulturesCreate more open and collaborative cultures — encouraging employees to connect, learn from each other and thrive in a world of rapid change._17c255f6-3273-11e2-9824-89e2dc04475c1.1CEOsAs CEOs open up their organizations, they are not inviting chaos. The need for control remains, but it is evolving into a new form — one better suited to the complexity and pace of business today.OutperformersOutperformers are organizations that surpass industry peers in terms of revenue growth and profitability, according to their CEOs.They are creating more open and collaborative cultures — encouraging employees to connect, learn from each other and thrive in a world of rapid change. The emphasis on openness is even higher among outperforming organizations — and they have the change-management capabilities to make it happen. [See Outperformers]Customer EngagementEngage customers as individuals_17c25678-3273-11e2-9824-89e2dc04475c2CustomersCEOsCEOs are searching for customer insight. But even if they discover it, are their organizations equipped to respond with relevance and speed?Analytical CapabilitiesBuild analytical muscle to respond with relevance and immediacy._17c256fa-3273-11e2-9824-89e2dc04475c2.1CEOsTo engage customers as individuals, CEOs are building analytical muscle to respond with relevance and immediacy.As a group, CEOs are investing more in customer insights than any other functional area — far above operations, competitive intelligence, financial analysis and even risk management. They are seeking a better understanding of individual customer needs and improved responsiveness. Although face-to-face will remain the most prevalent form of customer interaction, CEOs expect a step-change in the use of social media. Given the need for deep customer insight, outperformers have a distinct advantage. They are far more adept at converting data into insights, and insights into action.Customer ExpectationsMeet customer expectations._17c256fa-3273-11e2-9824-89e2dc04c5742.2CEOsUnderstand and act -- CEOs are implementing extensive changes to enable faster, more relevant responses to markets and individuals.CustomersChange is required to meet customer expectations.UnderstandingImprove understanding of individual customer needs_17c256fa-3273-11e2-9824-2e98dc04c5742.2.1Response TimeImprove response time to market needs._17c256fa-3723-11e2-9824-2e98dc04c5742.2.2PartnershipsAmplify innovation with partnerships_17c2577c-3273-11e2-9824-89e2dc04475c3PartnersWith nearly 70 percent of CEOs aiming to partner extensively, what will make this a differentiating strategy?Radical InnovationTake on radical innovation._17c25812-3273-11e2-9824-89e2dc04475c3.1OutperformersCompared to their less successful peers, outperformers are partnering for innovation more aggressively. But they are also tackling more challenging and disruptive types of innovation. Instead of settling for simply creating new products or implementing more efficient operations, they’re more likely to be moving into other industries or even inventing entirely new ones.Extensive partnering is providing the edge CEOs need to take on radical innovation. The pressure to innovate is not subsiding, and organizations are teaming to meet the challenge.2012-11-19http://www-935.ibm.com/services/us/en/c-suite/ceostudy2012/OwenAmburOwen.Ambur@verizon.net