As Chief Executive of the BT Group, Mr Ben Verwaayen oversaw the transformation of a traditional telecom operator into a dynamic and profitable network services company. He shared his experiences and spoke of the challenges of globalisation in a keynote delivered at the Infocomm Development Authority of Singapore’s Distinguished Infocomm Speaker series.

Present dangers
The infocomm industry is good at spending money … billions … to try to create something sustainable. But there are two major limitations. The first is globalisation, which means, among other things, that individuals can work with others elsewhere seamlessly. This collaboration is capable of modifying the power of working. Talent is neutral and is everywhere. Hundreds have been enabled by globalisation and many more are knocking on the door and asking to be included.

The second is that the distinction between industries is blurring. Organisations must understand where their core businesses are and that their biggest competitor may not be in the same sector. Who are the biggest competitors of Nestle, a manufacturer of chocolates? It’s the mobile phone companies! Its core business is not chocolates and candies but laying its hands on the pocket money of kids, who can spend their money only once. This changes the rules of the game. Your biggest competitor might not exist in your sector. If you think you’re in your comfort zone, think again. Your battle will be with forces you do not know of today.

Mr Verwaayen: Choosing your people is where you show your prowess, and you have to stick to your guns.

Wake-up call
The reality is that there are conflicting business models. Google, for example, never sent a bill to a single end user. The day they do that will be the end of Google. They also do not create innovations in infrastructure, because other people do it for them. What they do well is to disassemble the value chain as we know it. The brilliance is in the thinking. Every day, someone will challenge the essence of what we are. It is a wake-up call for everyone. Opportunity drives what makes sense. Singapore is a wealth creation hub. From physical hubs, we are going  into a knowledge society. In the digital world, we will have to defend or adapt.

The role of a leader
As a leader, there are just a few things to do: decide on the agenda – three or four key things; set the tone which describes your personality; and choose the right people. Choosing your people is where you show your prowess, and you have to stick to your guns.

Letting go
BT was in a crisis in 2001, 2002. It was crystal clear things could not continue the way they were. BT had to change, and it’s a fact that we have transformed BT. But it’s of no relevance at the end of the day.

I once brought 300 kids into a room for a motivational speech. Then I made a fatal mistake – I asked them what they would do if I were to give them the power to take away the biggest obstacle in the company. Some guy at the back raised his hand and said, “The biggest obstacle is you.”

It was a good lesson in the art of letting go. We have to let people decide what capabilities to develop. Structured pyramids are not a great way to innovate in an organisation. It is wrong for an organisation that one person or layer decides what business you should be in. You need to be able to give responsibility and empower people. We have to allow others to say they are going to break the glass again, and 25-year-olds are very good at doing that for you.

Licence to exist
Society has become more aware of roles and responsibilities. If you want to be credible, you need to look to society at large for the licence to exist. Organisations are aware that they have to contribute to the interest of society; that they have a greater global responsibility.

BT has been focused on global warming and corporate social responsibility. We have a role in educating people and developing talent. In the area of global warming, we have been investing in alternative sources of energy, such as wind energy. Climate change is high on the agenda of businesses wherever I go. Nine out of 10 companies talk about it. But when it comes to action, I’m not so sure, because it’s painful, and it’s easy to delegate to other parties such as the government or the consumer.

But 20-30 years ago, it was a non-item; today it is a requirement. It’s not philanthropy, not nice-to-have; it’s a must do. We need to look at where we can contribute. You take some and you give some. We need to find