SSE – Brochure 2019

Talking transformation with Phil Clayson, CIO, SSE Energy Services

P ROJ E C T PA RT N E R

Talking transformation with Phil Clayson, CIO, SSE Energy Services WRITTEN BY

D al e B en to n PRODUCED BY K i ro n C h avd a

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Phil Clayson, CIO of SSE Energy Services, discusses how CIOs and organisations worldwide can successfully navigate the complexities and shifting dynamics of transformation

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ransformation, for any company of any size, is no small feat. The transfor-

mation conversation, understandably, often focuses on the positives and the outcomes but it is important to recognise the challenges; the work and the drive required to achieve those outcomes. One of the key challenges, often cited as the most significant

how complex the journey ahead really is.

Phil Clayson, an experienced CIO, has

challenge in any transformation, is one

overseen a recent transformation of

of culture. A transformation asks an

TalkTalk software and data estate and

organisation to redefine how it oper-

crowned Transformation Leader of the

ates and of course asks its stakehold-

Year 2019 for his efforts, has transforma-

ers, from the top down, to rethink the

tion in his blood. Now CIO of SSE Energy

way they work. Add to that the pres-

Services, Clayson finds himself amidst

sure to transform in the ‘right’ way and

transformation once again, with the

the determination to establish what the

company currently undergoing a publicly

‘right’ way is and it becomes clear just

announced trading separation from

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SSE Group, as it enters a new phase in a

successfully navigate the complexities

rapidly changing energy industry.

and shifting dynamics of transformation.

This multi-million-pound migration

A technologist at heart, Clayson’s

journey will require pace and tenacity and

career has been defined by technology

is cultural on many levels, representing

and transformation. Through his roles

a massive opportunity for technologi-

with NewsCorp, Oracle, BT and more

cal debt removal, and a chance to move

recently TalkTalk, Clayson has played a

SSE Energy Services closer to a digi-

key part in a number of significant trans-

tal enabled and data driven world. We

formations and mergers and acquisi-

sit down with Clayson to discuss how

tions and has a broad understanding as to

CIOs and organisations worldwide can

the true impact of digital disruption and w w w.sse .co.uk

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“ If they had been more aware of the customer and in tune as to what they needed, those new entrants would never have got a foothold in the industry” — P H I L C L AY S O N , C I O , S S E E N E R G Y S E R V I C E S

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what that means for the business from both an internal and external perspective. “When I first started in the world of transformation and delivery, the largest part of £bn+ M&A deals was all very much about the technology or the structure of the company,” explains Clayson.

“These journeys were all about buying technology or an asset and then integrating that. The culture was to some degree a secondary consideration in terms of acting out the integration of the deal.”

Today, the transformation conversation is very much alive across a number of industries, with an increasing number of businesses navigating their own journeys to redefine their operations and achieve their goals but as Clayson highlights, the complexities and nuances within those transformation journeys tell a very different story to his earlier days. “The complexity in the market, be it energy, telecommunications or banking, is so much deeper than it was over 20 years ago,” he says.

“It’s now culture led. I’d say that my biggest driver right now in transformation is the people. We’re looking at their emotional curve, where they are along the journey and who is on the metaphorical ‘bus’. People have been conditioned by their companies to operate in a specific way and are quite happy in doing that, but they are now heading into a new world, one that is almost the polar opposite. Getting the people and cultural agenda right in any transformation or acquisition journey or even an unexpected external event such as a cyber attack, that to me is the biggest part of transformation.”

A core challenge at the heart of any transformational journey is understanding and defining exactly what transformation means to a business. Clayson admits w w w.sse .co.uk

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A MOVEMENT. Of the top 5% experts brought together to solve the world’s most complex business problems, delivering value every 90 days.

BUSINESS TRANSFORMATION, TRANSFORMED THE BEST MINDS BROUGHT TOGETHER TO SOLVE THE WORLD’S MOST COMPLEX BUSINESS PROBLEMS.

Sullivan & Stanley (S&S) is a business

no longer working. “You just need to

velocity in the fast-paced consumer-fo-

transformation consultancy that brings

look in the papers to see yet another

cussed world that we work in, I needed

together the best minds, to solve the

company collapse. Businesses today

a model that could flex as we did. S&S’

world’s most complex business prob-

need to change now, not a few years

model has enabled me to deliver the

lems. Through understanding the prob-

down the line” says Lynes. “What sets

same value in their 15-30 day sprints

lems that outdated routes to capability,

us apart at S&S is our ability to quickly

that a traditional model would do in 3

such as recruitment and traditional

get to the root of our client’s problems,

months. By selecting the best of what

management consultancies bring in

then break it down into manageable

S&S can expose in cross-sector knowl-

hindering transformation, S&S has cre-

chunks to deliver value in 15 to 30-day

edge, the top 5% expertise has put us

ated a new full-service model, which fits

sprints, which are part of our 90-day

in a good position for

perfectly in the middle.

cycles. I haven’t seen anyone else in the

future challenges”.

By building small teams from an elite

market promising this” Lynes added.

Another key factor that S&S believes plays a critical role in the success or

network of experts, known as The

Working closely with SSE through

Change Society, S&S delivers sus-

its own transformational journey, S&S

failure of a change initiative, is how

tainable change for businesses. “Our

operates in a way that goes above and

engaged employees are. “At SSE, we

associates are vetted as the top 5%

beyond the traditional service partner

act as an extension of their team. This

experts in their field, and they have vast

model to truly add value to the jour-

means we engage with everyone we

experience of being on the frontline of

ney. “Phil is a modern-thinking CIO. He

work with, helping them to understand

transformation, with the battle scars

appreciates the operating models, and

the change journey and the part they

to prove it,” says Pat Lynes, founder

the senior leadership down-approach

plan in delivering it. I think this mantra of

and CEO of Sullivan & Stanley (S&S),

changes, which need to happen to

coming in and working collaboratively

award-winning business leader and

make transformation successful across

with a team, allows us to be a proper

author of The Interim Revolution.

any topic. Digital, data, cyber, agile,

transformation partner - someone who

As expert change agents, S&S has

whichever transformation you’re going

trains up existing capability, to leave

found that one of the biggest challeng-

through. That’s the biggest task, getting

an organisation ready for the future of

es businesses face when undertaking

execs bought into the idea.”

business. This has really resonated with

significant transformation is defining

“Phil’s been great at understanding

SSE,” says Lynes.

Founded in 2016 “S&S was created

the journey itself. What does it mean for

the key challenges, then trusting us

a business to transform? Lynes reveals

to engage in the way that we believe

to deliver a new outcome: the fu-

that “transformation is a cycle that all

works best - crowdsource around a

ture-proofing companies need, and the

organisations go through. By the time

problem, engage the best experts, up-

opportunity for experts to embrace the

a transformation ends, you’re already

skill existing capability, then leave when

gig economy,” revealed Lynes. He also

starting another one.”

the job is done. I think that’s a message

added that it is S&S’s “genuine passion

that should be across the market. Find

in helping traditional organisations, such

cept of transformation by collaborative-

a partner that can work with you,”

as SSE, transform into the new world,

ly working with businesses to help them

Lynes claims.

and our community first, commerce

S&S looks to eventually end the con-

Phil Clayson, CIO of SSE Energy Ser-

second mindset, which has really struck

no more long-term and large-scale

vices reinforced this by saying, “Pace is

a chord in the market”, and in response,

transformation plans, which are clearly

critical. For me to deliver the necessary

S&S has seen explosive growth.

embrace constant change. This means

FIND OUT MORE 9

w w w.th e in te r fa ce . n e t

that it’s a word used so much that it

one would be forgiven for thinking that

has become somewhat ubiquitous, and

it was referring to a situation where a

perhaps been downgraded; so many

company is completing re-inventing

businesses and people will use ‘trans-

itself, when many are simply using the

formation’ for varying reasons that it in

word transformation to represent small

fact it loses any true meaning. He points

adjustments in normal day to day busi-

to the fact that, in his experience, when-

ness trading; Transformation is also used

ever someone speaks of a transforma-

to facilitate the need to become better at

tion or a transformational programme,

digital, or use data more effectively, none

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of which are really transformational on

transformational. Transition is often a

their own any more. “Transformation as a

better word; it implies a more definitive

word almost becomes synonymous with

one way movement to a new state. But,

attempts to get things approved inter-

before you can judge if an organisation

nally or accelerate an initiative,” he says.

has an inherent transition or transforma-

“But it’s often misleading, because every

tion capability in its blood, you need to

industry is delivering massive opera-

review the people and culture within an

tional changes, and not all of these have

organisation; do people see transition (or

enough dramatic effect to be labelled

transformation) as a one-time thing or an

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ongoing operational mode” “There are some people that do see

certainly the culture and the DNA of the business that needs the most energy

it as a one-off and that eventually, the

and commitment to achieve success. In

‘transformation’ elastic stops stretch-

order to define what the end-state tran-

ing and you can often return to the same

sition will be for a business, it is neces-

cultural state you were in prior to this

sary to understand an organisation’s

journey.”

own propensity to be able to continu-

Despite being a technologist by trade,

ously change and define the initial end

Clayson is the first to admit that in actual

state strategically, and then question how

fact the technology is often not the hard-

people and culture can be positioned so

est part of a transformation – it is most

transition becomes iterative.

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by multinational telecoms companies. A similar shift has happened in the banking and financial sector, with smaller start-up banking companies offering new and exciting services and solutions, and then slowing down as they scale with some being ‘caught’ or acquired by the larger incumbents. But what of the energy sector?

“Energy has been somewhat behind the curve on this journey,” says Clayson.

“Around 2009, long after telecoms had mainly consolidated we saw the early entrant energy providers beginning to take some market share but in recent years, while some have really thrived, many have found themselves struggling to survive. Larger energy companies (and some of the thriving start-ups) are now acquiring these smaller brands and taking on their customers. It’s a cycle we’ve With SSE’s migration journey, Clayson finds himself navigating the complex

seen across all industries.”

What is interesting about this inevita-

nature of change and calling back on his

ble cycle is the bigger picture it reveals.

experience across multiple sectors to

Despite the start-ups and new entrants

be able to do so effectively. During his

disrupting the market, consolidations and

early days within the telecommunica-

the huge changes that have been made

tions industry, the UK had introduced

within the existing incumbents, Clayson

further deregulation which saw an explo-

believes that things could have been

sion of new entrants in the market. Fast

different if only the incumbents had spent

forward to recent years, and most, if not

more time understanding the customer.

all, of these entrants have been acquired

“If they had been more attuned to w w w.sse .co.uk

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what the customer needed, those new entrants would have struggled to get a foothold in the industry,” he says. “The transformation (transition) and change that we are seeing in the industry today would have happened earlier and benefitted the customer.”

With constantly evolving marketplaces, thanks to new entrants and the developments of the incumbents, the modern customer has more choice than ever before. They are informed and do not necessarily have to move to a new bank, energy provider, or telco for a new offering. A customer’s existing suppliers are now more likely to offer what they need.

The telecommunications and banking sectors have what Clayson describes as

then it simply cannot just switch off what

an ‘inertia’; customers who rarely move,

worked before and pave the way for a

they’re seen as very brand loyal.

new way of working in the hope of enter-

Clayson also feels many transforma-

ing a new world. Clayson himself admits

tions fall into the trap of thinking about

that keeping a loyal and long-serving

the process as a set of figures laid out on

team engaged whilst also convincing

a spreadsheet, wherein the transforma-

people that what they’ve spent their

tion will take a company from A to B and

careers doing - while valuable in that

achieve certain measurable outcomes

moment in time may no longer be as sali-

along the way. But as Clayson has noted,

ent in the future - is difficult, functionally

it’s not that simple and it’s hugely impor-

and emotionally. The new product or plat-

tant to consider the cultural changes and

form that we now need people to work

the people involved in transformation. If

with will change their personal values.

a business does have large scale histori-

Taking these diverse groups of people on

cal legacy, be it technology or experience,

that emotional and functional journey is a

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demanding and delicate challenge.

“Beyond the personal concerns of each person, you also have to look hard at and merge together what the board is also trying to achieve. It’s easy for a board to say they want to change but they need to be inspired and realistic in defining how an organisation will get to where it wants to be in this new world with a level of clarity and direction that will keep those loyal and long-serving people informed and aware of their roles, as much as continuing to keep engaged those already motivated and working on new technology in a modern way,” he says. “If that foresight and strategy is well articulated, and consistently used, then everyone can

“ Getting the people and culture agenda right in any transformation or acquisition journey or even a material external event such as a cyber attack, that to me is the biggest part of transformation” — P H I L C L AY S O N , C I O , S S E E N E R G Y S E R V I C E S

engage and achieve their own outcome, while also achieving the board’s aim. Not all companies are as good at this as they should be, and teams and people get confused and lose focus.”

A strategy and a clear vision as to what an organisation is looking to achieve is key. The path is never a straight line and there will inevitably be external factors and shifting dynamics that will take an organisation into directions it may not have set out to take. The key here is in understanding the value that these shifts in course can bring to the overall journey.

Clayson, throughout his career, has seen w w w.sse .co.uk

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this happen first-hand and it’s a key part of his role as a CIO. “You can’t always sail in a straight line. It doesn’t always work. Much of the time you have to take a longer route to your destination,” he says. “My role is often about unblocking obstacles impacting effective forward direction for the team around me. Accepting that moving left or right to get to your destination actually has great value in it. “ Clayson reiterated that an organisation must first be able to communicate a clear message that everyone can aspire, and bring something to. He himself believes that as a leadership team and a board, having this clarity means you’re more than 90% of the way there. “If you can’t do it in an elevator pitch, then something isn’t quite right,” he says.

With a transition of any size and at any scale, there is never a single way of delivering it. There is no one-sizefits-all approach that any company in any industry can follow in order to successfully deliver on their vision. For Clayson, who as we know has been there and done it a number of times now, this is still true but he has one key piece of advice that he will always look to follow. “Take all the people with you that you can. It seems obvious but you need a team who are invested and ready for change,” he says. “If they aren’t and you have to hire, then look for great behaviours and attitude in your new hires; hire people ready for growth and change, and then look at their functional skill set. Sometimes you need some seed-help, short term burst of energy and expertise to help people see and feel what good looks like. You can train skills but you can’t change someone’s core attitude and receptiveness to change as quickly, 16

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“ Create the vision and stay pointed to it; you will of course move in different directions as you move towards it, but understand that moving left or right as you progress towards your vision actually has great value in it” — P H I L C L AY S O N , C I O , S S E E N E R G Y S E R V I C E S

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so sometimes having short periods of external advisory support can leap-frog progress. In my current role I have used boutique firms to help accelerate some digital and modern architecture thinking, as well as strategic procurement and strategy. The key modern skills I need quickly are often more available from these types of boutiques than bigger providers, and they serve as a bridge while I then develop and re-skill my internal teams. These boutiques have to be good to survive against the bigger players, they need to mobilise faster, deliver quicker, and have a greater impact. I also have to look at myself occasionally, and test my behaviours and approach, ensuring they’re aligned with the needs of my teams of people, the current and future required culture and the board’s aspirations. I’m an engineer by trade, which gives me an advantage in the technology transformative leadership roles I take, but it’s not all about being a tech person. I need to lead and manage large teams of people to be open to change so that my team, as a whole can be effective. It’s about energising and engaging great people, and taking on their personal journeys, to the transitioned new future world.”

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