As one of Australia’s most well-known and trusted brands, Qantas is on a journey to evolve from a traditional airline into a digital business. But how does an almost 100-year-old company continue to adapt and thrive in a world where consumer expectations are driven by “best in class” digital experiences?
Head of Qantas Digital Direct, Nandor Locher, shares how Qantas has begun to transform their digital experiences across all touchpoints along the customer journey. By fundamentally changing their organisational structure, the way they work and the way they think and engage, Qantas has been able to develop transformative practices and deliver return on investment.
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 /
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
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”