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Creating the Future of Travel
Through Digital Transformation
ThoughtWorks Live Series, Sydney Oct 2018
Nandor Locher - Head of Digital, Qantas Airways
Heading
Where we find ourselves01 /
Moving mountains02 /
Tangible benefit03 /
Lessons from climbing mountains04 /
Where we find ourselves
Qantas Airways
Incredible complexity and scale

Distributed digital teams and broad
stakeholder community across the
Group
Challenges of alignment

Inconsistent approach across teams,
departments and crafts
Large digital operations

Ecosystem of digital channels and
assets generating over $3b in revenue
One of Australia’s most well-known
and trusted brands. Large
organisation with incredible
complexity, catering to the needs
of a broad range of customer
segments as well as an array of
internal stakeholders.
Everything around us
Advances in digital
technology is
impacting
every sphere of life
Customer
expectations

are changing driven
by “best

in class” digital
experiences
We are facing
stronger
competition from a
broadening range of
players within the
travel industry
Channel mix and
booking behaviours
are shifting
What is the case for change?
Speed to Market Value Creation Effectiveness Agility
Innovation
Competitive
Differentiator
Internal Business
Partner
Digital Employer of
Choice
Digital
Transformation
Digital Experiences (The What)

Transforming Qantas’ digital experiences
across all touchpoints along the customer
journey
Digital Technology (The Enablers)

Continuing the transformation of our
technology platforms and
capabilities
Digital Operating Model (The How) 

Fundamentally changing the organisational
structure, the way we work, think and engage
Digital transformation at Qantas
consists of several dimensions
and has 3 core programs of work,
covering the WHAT, HOW and
ENABLERS
Moving mountains
The vision for Qantas Airways
“We create the future
of travel through
world-class digital
experiences”
Culture
Leadership &
decision-making
Prioritisation &
funding
Structure
Measuring
performance &
success
Capability &
education
Technology & tools
Ways of working
A holistic
transformation:
8 pillars
Building a strong business case
Investments in a world-class
digital organisation and
capabilities will create value
for customers, the business
and employees.
Unlocking Value
A key foundation for the new
model is to move away from
project-based funding to
capacity funding and
persistent teams

Capacity Funded Teams
Digital is a core enabler of
the broaer CX strategy.
Putting the customer in the
center of all considerations
and commit to investment
into customer experience.
Customer Strategy
Customer centric,
Cross-functional
Domains and
squads
Domain Domain
Squad Chapter Guild
Ways of working
We embrace a culture of failing
fast, often and with value in a
structured process, informed by
multiple data sources leading to
creative, innovative and
constantly improving solutions
that encompass the entire
spectrum of customer
experience.
Desirability
Viability
Human Centred
Design
Feasibility
Agile
Startup
Thinking
Technical
Excellence
Culture
Focus: Culture
The scope and
nature of the
culture challenge
Emergent, amorphous,

changes over time
Tactical, problems have obvious
solutions, known outcomes
Key Challenges
● Leadership
● Ambiguity fatigue
● Change fatigue
● Lack of understanding of scope
and scale of transformation
Culture change is a “cloud problem”,
not a “clock problem”.
Organisational belief:
Structure, Vision, Governance01 /
Team belief: Ways of working,
alignment, team dynamics02 /
Professional belief: Mastery,
future skills, quality & craft03 /
Self belief: Fulfilment, wellness,
purpose, social connections04 /Self Belief
Professional Belief
Team/Group 

Belief
Organisational 

Belief
Creating a culture of
alignment and
autonomy
Qantas group vision
Target CX Vision
Digital Vision
Transformation
Vision
Focus: Leadership
Key Challenges
● Leadership capacity
● Prioritisation of transformation vs. BAU
● Capability. skills & experience
● Change management
● Thought leadership and co-creation
● Cultural change
● Accountability and ownership
Leadership challenges
Modelling
leadership
Servant leadership

Involving others as a priority, aim to
serve the team and remove obstacles
Psychological safety

It’s okay to be wrong, to not know the
answer, to not understand
Alignment on vision

Every leader across the business able
to stand behind the vision and
purpose
Shifting an entire operating
model depends greatly on the
leaders attached to the business.
A significant effort was placed to
ensure key leaders are brought
along to see the benefit of how
Qantas aim to work for 2018 and
beyond.
While skilled in their area of
expertise, many leaders are not
experienced in change
management. Support is crucial.
Focus: Scale
Size and scale of the transformation
increases complexity significantly
and is a key aspect to be managed
01 /
Digital teams are deeply integrated
across the business and need to
operate alongside enterprise
processes
02 /
Start small to test and learn, but scale
at speed and with determination to
get the job done and avoid change
fatigue
03 /
Change at this scale needs time to
be fully embedded. Be pragmatic
and patient about the journey. .
04 /
Tangible benefit
Early signs of
success
● Greater collaboration and
engagement across teams and with
stakeholders
● Speed to market through frequent
iterative cycles increasing
● Improved value-based prioritisation
and transparent demand
management
● Increased sense of accountability and
ownership amongst teams, driving
employee engagement
● Growing focus on addressing
customer pain points and improving
customer experience
Lessons from
climbing mountains
Do
Invest in the HOW
It will unlock the
WHAT
Seek holistic
change

A new tool or
platform does not
sufficiently change
the business
Champion
autonomy 

Limit hierarchy, give
staff missions and
make sure they are
given freedom
Align everything
Values, vision, CX and
transformation are
all linked, and need
to align for people to
fully see the benefit
Do not
Mistake technology
for transformation
People are always
our biggest assets.
Always. Change
starts with people.
Rush

Holistic change is
time-consuming by
design.
Forget leaders
While leaders are
generally ‘bought in’,
don’t underestimate
effort required
Be a lone wolf 

Find great partners
to help you execute,
and focus on what’s
important
“We create the future of
travel through 

world-class digital
experiences”

Thank you

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Creating the Future of Airline Travel Through Digital Transformation- Nandor Locher (ThoughtWorks Live)

  • 1. Creating the Future of Travel Through Digital Transformation ThoughtWorks Live Series, Sydney Oct 2018 Nandor Locher - Head of Digital, Qantas Airways
  • 2. Heading Where we find ourselves01 / Moving mountains02 / Tangible benefit03 / Lessons from climbing mountains04 /
  • 3. Where we find ourselves
  • 4. Qantas Airways Incredible complexity and scale
 Distributed digital teams and broad stakeholder community across the Group Challenges of alignment
 Inconsistent approach across teams, departments and crafts Large digital operations
 Ecosystem of digital channels and assets generating over $3b in revenue One of Australia’s most well-known and trusted brands. Large organisation with incredible complexity, catering to the needs of a broad range of customer segments as well as an array of internal stakeholders.
  • 5. Everything around us Advances in digital technology is impacting every sphere of life Customer expectations
 are changing driven by “best
 in class” digital experiences We are facing stronger competition from a broadening range of players within the travel industry Channel mix and booking behaviours are shifting
  • 6. What is the case for change? Speed to Market Value Creation Effectiveness Agility Innovation Competitive Differentiator Internal Business Partner Digital Employer of Choice
  • 7. Digital Transformation Digital Experiences (The What)
 Transforming Qantas’ digital experiences across all touchpoints along the customer journey Digital Technology (The Enablers)
 Continuing the transformation of our technology platforms and capabilities Digital Operating Model (The How) 
 Fundamentally changing the organisational structure, the way we work, think and engage Digital transformation at Qantas consists of several dimensions and has 3 core programs of work, covering the WHAT, HOW and ENABLERS
  • 9. The vision for Qantas Airways “We create the future of travel through world-class digital experiences”
  • 10. Culture Leadership & decision-making Prioritisation & funding Structure Measuring performance & success Capability & education Technology & tools Ways of working A holistic transformation: 8 pillars
  • 11. Building a strong business case Investments in a world-class digital organisation and capabilities will create value for customers, the business and employees. Unlocking Value A key foundation for the new model is to move away from project-based funding to capacity funding and persistent teams
 Capacity Funded Teams Digital is a core enabler of the broaer CX strategy. Putting the customer in the center of all considerations and commit to investment into customer experience. Customer Strategy
  • 13. Ways of working We embrace a culture of failing fast, often and with value in a structured process, informed by multiple data sources leading to creative, innovative and constantly improving solutions that encompass the entire spectrum of customer experience. Desirability Viability Human Centred Design Feasibility Agile Startup Thinking Technical Excellence Culture
  • 15. The scope and nature of the culture challenge Emergent, amorphous,
 changes over time Tactical, problems have obvious solutions, known outcomes Key Challenges ● Leadership ● Ambiguity fatigue ● Change fatigue ● Lack of understanding of scope and scale of transformation Culture change is a “cloud problem”, not a “clock problem”.
  • 16. Organisational belief: Structure, Vision, Governance01 / Team belief: Ways of working, alignment, team dynamics02 / Professional belief: Mastery, future skills, quality & craft03 / Self belief: Fulfilment, wellness, purpose, social connections04 /Self Belief Professional Belief Team/Group 
 Belief Organisational 
 Belief
  • 17. Creating a culture of alignment and autonomy Qantas group vision Target CX Vision Digital Vision Transformation Vision
  • 19. Key Challenges ● Leadership capacity ● Prioritisation of transformation vs. BAU ● Capability. skills & experience ● Change management ● Thought leadership and co-creation ● Cultural change ● Accountability and ownership Leadership challenges
  • 20. Modelling leadership Servant leadership
 Involving others as a priority, aim to serve the team and remove obstacles Psychological safety
 It’s okay to be wrong, to not know the answer, to not understand Alignment on vision
 Every leader across the business able to stand behind the vision and purpose Shifting an entire operating model depends greatly on the leaders attached to the business. A significant effort was placed to ensure key leaders are brought along to see the benefit of how Qantas aim to work for 2018 and beyond. While skilled in their area of expertise, many leaders are not experienced in change management. Support is crucial.
  • 22. Size and scale of the transformation increases complexity significantly and is a key aspect to be managed 01 / Digital teams are deeply integrated across the business and need to operate alongside enterprise processes 02 / Start small to test and learn, but scale at speed and with determination to get the job done and avoid change fatigue 03 / Change at this scale needs time to be fully embedded. Be pragmatic and patient about the journey. . 04 /
  • 24. Early signs of success ● Greater collaboration and engagement across teams and with stakeholders ● Speed to market through frequent iterative cycles increasing ● Improved value-based prioritisation and transparent demand management ● Increased sense of accountability and ownership amongst teams, driving employee engagement ● Growing focus on addressing customer pain points and improving customer experience
  • 26. Do Invest in the HOW It will unlock the WHAT Seek holistic change
 A new tool or platform does not sufficiently change the business Champion autonomy 
 Limit hierarchy, give staff missions and make sure they are given freedom Align everything Values, vision, CX and transformation are all linked, and need to align for people to fully see the benefit
  • 27. Do not Mistake technology for transformation People are always our biggest assets. Always. Change starts with people. Rush
 Holistic change is time-consuming by design. Forget leaders While leaders are generally ‘bought in’, don’t underestimate effort required Be a lone wolf 
 Find great partners to help you execute, and focus on what’s important
  • 28. “We create the future of travel through 
 world-class digital experiences”