We spoke with Agata Jach, Group HR Director, who joined InPost in March 2021.

InPost is the largest logistics company in Poland operating in the e-commerce industry, offering courier services and deliveries via the nationwide network of Parcel Lockers. The company plans to become the leading European provider of automated 'out-of-home' e-commerce solutions and counts on significant growth opportunities, both in Poland and in key European markets, where recognition of parcel machines is growing rapidly as the e-commerce market grows significantly. InPost’s debut on Euronext has opened up the next phase of its international development, especially in Great Britain and Italy, and it is also considering expansion in France and Spain.

What makes a passionate HR leader with 18 years of experience in strategic and operational management in global corporation such as Sanofi or AXA join a Polish, privately owned company?

“Honestly, the fact that it was Polish, privately owned with a strong footprint of Private Equity was the biggest hook. After years of being a part of global organisations, mainly involved in reorganisations, optimisations, cost cutting run with accordance to some highest targets, and big not totally revealed plans, I really wanted to try something different. I wanted to be part of something I can truly co-create with my business partners.”

What do you like the most about InPost?

“Its corporate culture(!) -its speed, decisiveness, innovative approach, and its openness to learn and adjust according to the market changes. With this kind of approach the sky is the limit. The company plans international expansion and wants to become a significant international player, InPost is one of the fastest growing companies in Europe! It is great to be part of it."

Such a fast growth, development must create certain challenges for HR, am I right?

“Oh, yes! Bearing in mind the speed of the changes and need to adapt we have to work constantly on developing our competencies in terms of, for example, change management or leadership but also in terms of our knowledge, technical solutions and tools which are rapidly developing. We have got to be more tech and data savvy, use modern technology, and make decision basing on data analysis. We all, like many other companies these days, have to learn how to improve our action from quality, accuracy but also from a speed point of view. Thinking about international expansion we need to ensure we are a competitive and attractive employer.”

How about the planned expansion - what would be the main driver of it?

“E-commerce is growing, and that is good news for us. We want to grow in the market where e-commerce is well-developed. We still are not sure what the final governance framework for scaling-up our business might look like as we are still working on the details, however we know that well planned internal succession and access to external talent will be a strategic driver in HR. On one hand developing our skills, knowledge sharing, increasing our competencies thus building our potential internally, on the other we have to focus on top talent from outside and so Employer Branding will be extremally important. Fortunately a very important dimension of our business is a sustainability and we do limit our carbon footprint as we have parcel lockers which limits the “last mile”. We genuinely care about ecology and our planet. So, as you can see there are a lot of things which need to be taken care of.”

We would like to thank Agata for a very interesting conversation, and we wish you good luck in your new role.

Dorota Serwińska, Partner
Poland

We spoke with Nevena Nikolova, from our office in Bulgaria, to hear her Friisberg story.

You have been a Partner in Friisberg since 2009. What was the career path you took to get to where you are today?

It all started with my curiosity for understanding people - my willingness to understand what we are made of.

I graduated with Master's degree in Consulting Psychology, exploring for a while a career as psychotherapist, before I realised that I was more interested in exploring the nature of talent and how it could be identified, harnessed and further developed.

My career in the field of HR began when I joined the TGS team at the establishment of its HR consultancy practice, holding consecutively the positions of consultant, senior consultant, Search & Training Department Manager and Executive Director.

From April 2006 - 2008 I was elected as a Management Board Member of the international HR consulting organization PSI (People Solutions International), registered in London with Headquarters in Brussels. From 2009, following the merge between PSI and Friisberg, I became a Partner in Friisberg Bulgaria and was elected as a Management Board Member of the international Executive Search organization FPI (Friisberg & Partners International). I am glad to be part of a great international group that is more and more able to show its unique face and have its special voice heard.

What has been the biggest change in Executive Search over the last years? 

The use of technologies is changing the modus operandi of the Search companies, but the very essence of the service and its value proposition remains the same. Executive Search is less and less transactional and more and more a transformational service and the headhunters are growing towards becoming trusted advisors of the client companies.

What qualities do you look for in a new consultant when joining Friisberg in Bulgaria?

What do you enjoy most about being part of Friisberg? 

Friisberg is constantly evolving and the enthusiasm of my colleagues is inspiring.

What do you enjoy doing in your spare time when you are not working hard?

I love theatre and I enjoy performing monthly scene performances.

Creative writing is the other activity that makes me feel great – I create poetry, short stories, plays, and scripts. Maybe one day I will dare to share those with the world…

Nevena Nikolova, Partner
Bulgaria

When you think about sustainability, you don't think of the financial sector first. This is a mistake.

Meltem Ay spoke with  Reinhard Pfingsten, CIO Bethmann Bank & Global Head Asset Allocation ABN AMRO Private Banking, about sustainability in the financial world, sustainable banks, regulations and the potential returns on sustainable investments.

What influence does the financial sector have on sustainability?

The range is huge. Money makes the world go round! The financial sector is an intermediary between money and companies and to that extent it plays a very important role.

How long have you been dealing with this topic?

For a long time, because sustainability is not a new topic and sustainable products have been around for decades. What is new, is that it used to be the niche product of a large supplier, but it is now the core product. In the past few years there has been gigantic growth in the institutional sector. Sustainable criteria are moving more and more into focus. What is also new is that private investors have discovered the topic for themselves and are also being steered in this direction by providers. The supply creates the demand. The growth among private investors is now also very strong, but of course it comes from a very low level. On the one hand, this is due to social change, which is certainly also related to generational change, and the political change that is causing companies to set sustainability goals. The Paris Agreement on Climate Change plays a major role here, but also a regulatory change.

What is a sustainable bank?

The EU has recognized that the financial industry is important to move sustainability forward. It takes companies and the financial sector to close ranks. The regulatory pressure ensures that our industry is moving. The first question is whether the institute also offers sustainable products, among other things. If there are only niche products or one product among many, then it is not a sustainable bank. It has to sell First Choice sustainable products and it has to deal adequately with sustainable issues such as corporate social responsibility and being a social employer. Topics such as ecological building management and the company car regulation are just as much a part of this as a corresponding product range.

Can maximum profits be achieved with sustainable funds / stocks?

I am not saying that sustainability can generate additional returns, because there is no reason to do so. Results vary from year to year. It is the same with sustainable products as with all others. But in any case, so much money is now flowing into sustainability that companies take the topic very seriously and better performance can be derived from it. On the other hand, there are studies that suggest that unsustainable investments can generate additional returns. From my point of view, one should not assume a systematic excess or reduced return on sustainable investments. Over the year, however, things can look very different, but for me it is the wrong question because this is about non-financial returns. If you want to be part of the change and help companies reduce CO2 emissions, then invest in sustainable products!

How much do you have to convince the customer to invest here?

In fact, we offer sustainable products as 'First Choice'. It is important to explain the advantages, but also the challenges, of sustainable investing to the customer. But the discussions have changed. In the past, we had to have a lot more fundamental discussions at this point.

When is an investment really sustainable?

The necessary orientation is at least provided by the classification of a product in accordance with Article 8 of the Sustainable Finance Disclosure Regulation (SFDR) of the European Commission. It is important to have a policy that highlights the sustainability risks. That means: which exclusions do I see? What am I not responsible for if a company is active in an area that does not meet the requirements? At Bethmann Bank we also have an advisory board that can anchor sustainability in line with current discussions - they can make policy decisions and impose restrictions.

Do you personally invest your money in sustainable funds?

Partly. Since I only invest in funds, I can answer the question in the affirmative for active funds; for ETFs, these do not yet meet all the requirements of Article 8 of the new regulation.

What investment goals can be pursued with an ESG portfolio?

We offer sustainability reporting for mutual fund customers and asset management customers. There are three blocks of sustainability in which the effects of sustainable products are discussed. We manage best-in-class products and show the best and worst values.

  1. ESG risk rating in the portfolio
  2. CO2 footprint of the portfolio (measured in tons)
  3. Impact on the UN Development Goals (17 UN Sustainable Development Goals).

Sustainable products have to be made much more transparent and the purpose of these systems has to be brought closer to people.

Meltem Ay, Principal Consultant
Frankfurt

We sat down with Magda Porizkova

Magda works with companies across various industries, guiding them through transformation and change, to build a culture of innovation and creativity.

What are the most important skills necessary for future success?

To be successful in these turbulent times, managers and leaders need to be ready for fast and unpredictable changes - they need to be able to adapt.

There are many things we need to learn to do differently, but I believe that the three most important are:

Ability to think creatively and not be afraid to experiment. Especially in larger organisations, people are not used to thinking out of the box and experimenting is not always welcome. It’s not surprising, as most of the experiments are not successful and some are costly. But if they build a baseline of an inquisitive company culture where people are not afraid to think as entrepreneurs, it is easier to come up with fresh ideas and try new things.

Ability to truly collaborate in a team and the whole organisation. As leaders we need to be able to give much more autonomy and ownership to not only build agile adaptive teams, but also cooperate between different teams much more efficiently, overcoming a silo culture. This means that managers and leaders need to re-evaluate the way they lead their teams, unlearn the command /control approach and learn how to truly empower their people.

Ability to simplify. Excessive bureaucracy is one of the main bottlenecks of efficient work. Without simplifying, a skill of getting rid of processes and procedures that don't make sense, your organisation is going to be heavy, slow and indecisive. Simplifying is a lot of hard work but it pays off - in the process you must focus on the customer and adding value and look for better ways of doing things.

What other abilities and skills do you think need to be focused on?

Mary Keane, Partner
Andrea Chladkova, Partner
Czech Republic

We spoke with Dorota Serwińska and Anna Rudzinska, our Partners in Poland, to hear their Friisberg story.

You have both been Partners in Friisberg for a few years. What was the career path you took to get to where you are today?

We have been partners in Friisberg since 2018 - although we first started working with the organisation in 2016. Together we bring over 20 years of experience in Executive Search gained from our time with Korn/Ferry, Kienbaum, and Spencer Stuart.

What do you enjoy most about being part of Friisberg?

We are lucky to have observed a significant shift within Friisberg during recent years, not in terms of people because we always considered our colleagues from different countries to be the greatest assets of this Partnership, but the fact that we now cover such a range of different markets.

Our company is growing quickly with increased online visibility for clients and candidates.

The investment in Friisberg's AI diagnostic tool (FNA), is great!

It is a genuine pleasure to work with our Friisberg colleagues - to exchange knowledge and share best practice with those in different geographies.

It is also very refreshing that we cooperate so effectively - we do not suffer from a competitive approach which is all too often observed in other global  firms. Our strategy is to be transparent and fair so we are always happy to benefit from each other's experiences.

What advice would you give to someone considering a career in Management Consultancy and or Executive Search?

Although the consulting/executive search industry has changed a lot over recent years, there are always unchangeable factors necessary for success. We operate in a very sensitive marketplace, so to become successful you must have an in-depth knowledge of the market, maturity/gravitas to position yourself as an equal partner while talking to your clients and you must be trustworthy. Besides that, the most important competence in consulting is the ability to convince your client that you can do the job, so one must have the ability to sell projects. Many people who try to succeed in this field forget about selling skills.

What qualities do you look for in a new consultant when joining Friisberg in Poland?

You must be trustworthy, a good communicator (as well as being able to actively listen), a good negotiator, resilient and have great sense of humour.

What has been the biggest change in Management Consultancy and Executive Search over the last 10 years?

The 4.0 revolution has been the most significant impact. The development of social media (e.g. LinkedIn) has made potential candidates available to almost everybody. Also, AI is a more and more significant part of the recruitment processes, but we still believe our human touch is irreplaceable, and we hope it always remains that way.

What do you enjoy doing in your spare time when you are not working hard?

We both have great families and friends. We love our country cottages and enjoy outdoor activities and sport.

Dorota Serwińska, Partner
Anna Rudzinska, Partner
Poland

We met with Tanya Kosseva-Boshova, Managing Partner of Park Lane Developments, part of AG Capital.

Tanya is also the Chair of the Association of Commercial Building Owners in Bulgaria, a member of the RICS, and Chair of the Ladies Forum - a not-for-profit organization of professional women in Bulgaria.

More than a year has passed since the beginning of the COVID 19 pandemic. What kind of approaches have been implemented by organizations around the globe to tackle various issues related to the workplace and the working process?

Many organizations have implemented a hybrid approach – working from home for 1-2 days as opposed to 3-4 days in an office setting. This model has provided the employers with the opportunity to exercise the precautionary distance anti-COVID measures while also ensuring a better work-life balance for the employees. The hybrid model is certainly not a novelty and was adopted by many companies in the technological sector years ago.

Some companies (predominantly based in the US) have decided to limit the availability of office spaces in order to prevent further spread of the virus. Personally, I believe that this approach is rather extreme and, in the long term, it could cause several serious organizational problems related to hiring, training, and retaining key employees, as well as inducing emotional fatigue.

With the notable exception of call centers, many large organizations that have shown growth both before and during the pandemic are progressively shifting towards more spacious offices. The reasons for the latter include, but are not limited to, the pandemic situation – and this tendency is in line with the general goal of modern companies to induce a positive office experience and comfort at the workplace.

The majority of tenants are companies that seek a new office building with quality ventilation and air filtration systems. For example, in our Park Lane Office Center building, we have installed specialized UV lamps inside the ventilation systems in order to ensure that the majority of virus and bacterial pathogens are neutralized (99%).

What are the most important takeaways for employers in connection with the 'new working process'?

I believe that the office space is being recognized as aspect of great importance for an organization, given that it signifies the physical representation of the company – its culture, its spirit and its mission. There was a time when our employees operated mainly from home, but I believe that it is particularly unhealthy for a company to exist in such a way in the long term. Working from home is certainly not ideal for everyone – people need face-to-face informal communication. Precisely these instances of spontaneous verbal interactions are often the source of brilliant ideas and unexpected synergies.

The claim that employees constitute the most valuable asset of an organization seems more viable than ever – human communication and creativity cannot be substituted with artificial intelligence, however advanced it may be.

What are the most noteworthy consequences (positive or negative) that companies have experienced during this period of working from home?

The evident increase in short-term productivity that many organizations boast about is a direct result of existing structures and teams. Before the pandemic, these teams had the chance to communicate in an informal office setting. This is the way a working relationship is best developed – in person. In the long run, it is expected that employee productivity will decrease as a result of the increased workforce “burnout”.

I believe that working from home also has a negative impact on decision-making agility – managers grow tired of the increasing number of the often unproductive calls and interruptions due to technical difficulties.

One positive result of working from home for some is the significantly reduced traveling time, but in our region commuting is significantly faster, as compared to some regions and city clusters, so the positive office experience of our employees outweighs their traveling inconvenience.

Recent studies have shown that junior employees are the most adversely affected by the work-from-home paradigm, due to their limited access to mentors and more experienced colleagues. As a result, their career growth process is hindered.

On another note, a different study has suggested that working mothers have been seriously impacted by the pandemic – one in four mothers is forced to make a compromise with their career in order to be able to look after their children at home. This seems like a major setback for the career advancement of women and would counteract many recent measures to enhance the gender balance in the workplace.

What particular office space usage tendencies can be observed lately? How are the needs and demands of the organizations evolving?

The tendencies that are evident in the office space construction sector have been steadily developing in companies that endeavour to attract quality workforce – highly paid, educated, and demanding. The organizations that are most interested in office spaces in Bulgaria mainly deal with IT, finance, and trade. They have been requesting increasingly cozy, modern, and spacious offices for their employees.

The preference disparity between building classes A and B is becoming even more evident. Many of the potential tenants in the Park Lane Office Center have expressed their desire to transfer to a high-end building situated at a more accessible location. These companies need to find a way to reattract their employees back to the office and they cannot tolerate any compromise when it comes to the quality of the facilities.

What will the workplace of the future look like, in your opinion?

The workplace of the future will be a hybrid one. Employees will have the opportunity to choose whether they would like to work from home, the office, or shared office spaces. Office spaces that resemble the cozy atmosphere of one’s home and provide many new experiences to their inhabitants will dramatically rise in popularity. The needs and demands of the employees will be the primary drivers behind the design and space management of these office spaces. The office will be divided between several autonomous sub-spaces – for work, collaboration, video calls, entertainment, dining, sport, etc. The corresponding effects will be an increase in productivity and employee satisfaction, complemented by relative ease in hiring and retaining employees.

Nevena Nikolova
Partner, Bulgaria

We spoke with Nijole Kelpsaite, Managing Partner, Lithuania, to hear her Friisberg story.

You have been a Partner in Friisberg since 1994. What was the career path you took to get to where you are today?

Initially I was approached by Kurt Kaariainen, a Partner from Finland, because we were selected as the best among eight consulting companies. I started as an assistant/ researcher cooperating with the highly experienced Partners from Denmark and Finland.

In 2000 we became a Partner firm, and I became the first female Partner – and the youngest!

It has been a long journey and even today, the Lithuanian market is not as mature as others. Eastern Europe has a complicated history and while even 25 years ago we were at the forefront of our industry, there is still more educating to do regarding clients understanding the services we can offer. We have undoubtedly gained a great reputation and the future looks good.

What do you enjoy most about being part of Friisberg?

Like any business that grows from a small business to a global firm over a few short decades, Friisberg has seen its share of organizational changes. We now have defined practice areas and they are undoubtedly one of the keys to our success. Working closely with other Friisberg offices on cross border assignments over the years has certainly helped us promote Lithuania as an up and coming economic business centre.

Everyone in Friisberg loves the challenge involved in finding the right candidate for a company, taking into account not only their knowledge and experience, but also the strategic visions of the client. Getting “the cultural fit” right is absolutely crucial and we genuinely understand why this is so important because in Friisberg we all share the same values and ethos. Our shared philosophy is to have consultants in our local markets, but with the ability to serve global clients as necessary. As a result, local office culture is vibrant but all consultants feel connected with their peers.

What advice would you give to someone considering a career in management consultancy and or executive search?

Before turning to executive search, I suggest gaining experience in different sectors and in different corporate positions. Accumulating experience, getting to know people and building good contacts is vital to creating a credible network. Knowing yourself is important too - you will spend a lot of time communicating with people from all walks of life and you need to feel confident in your own skin.

What qualities do you look for in a new consultant when joining Friisberg in Lithuania?

You must be resilient, so positivity is essential; never giving up is such a great attribute. I also admire openness and curiosity – you must always be interested in and enjoy meeting new people as well as having the intellectual rigour to learn about new businesses and sectors. We are a people business, so emotional competence is essential; being sensitive to candidates and clients makes a great consultant.

What has been the biggest change in Management Consultancy and Executive Search over the last 10 years?

The biggest change is the impact of the Internet and social media. I started working in executive search at the same time as the internet’s early development so I had to work much more with the sourcing of candidates through contacts. The evolution of the Internet, LinkedIn, and other search process tools have significantly speeded up the search process, especially for sourcing diverse candidates, and our clients expect results quickly, and without any compromise in quality. Of course human contact is essential from start to end and will always remain the most valuable part of any Search process.

Over the years, long-term relationships have become more and more stimulating. For example, being able to work with a client for over 15-years has been fantastic, and it is a privilege to share their ups and downs.

What do you enjoy doing in your spare time when you are not working hard?

I think of myself as the child of nature. I grew up in a village, on a forest farm, and I love gardening, canoeing, cross-country skiing, hiking – basically, I love being close to nature.

Nijole Kelpsaite
Managing Partner, Lithuania.

We spoke with some of our researchers who are vital to the success of each and every Search process we undertake at Friisberg.

Here’s a few insights from Delyan Grozdev, Veronika Mohacsi, Raik-Eric Theil and Sina Nowack about the invaluable role they and all our researchers play.

What does a day in the life of a Researcher look like?

It is varied! Being a researcher is undoubtedly a wide-ranging role involving lots of communication (with the team and our candidates), timely emails, telephone interviews and compilation of project briefs leading to systematic search, collection of business news and knowledge sharing (in person and with web platforms), thorough industry research and of course database maintenance.

What is your typical approach to finding candidates for a specific role?

At the outset we discuss with the consultant the best approach in terms of any possible sources or candidates on which to focus. If the role is one we do regularly in a given industry, then we get rolling pretty fast. In other cases though, the first thing to do may be to talk to a source well-positioned in the given field to get a better understanding. Vera says, “Naturally, we examine our earlier projects for similar roles, draw on our database and do Boolean search. I am old school in that I strongly believe in great candidates recommending great candidates.”

Raik-Eric agrees, “I work with Boolean strings in Linkedin and Xing and systematic cover letters. I talk to key people from the sector and ask them and contacts for recommendations.”

With an ever-increasing online presence, Executive Search is changing. How do you see your role developing in the future?

Delyan believes that the future is already here with automated tools like LinkedIn and Google Alerts being a good way to stay up to date with people and companies. “Technical skills for working with CRM/database tools and web search tricks are essential, but it is still a knowledge-based job so it remains crucial that we are deeply interested in how businesses and people work, to be able to target our searches well, using all the technology at hand. Data management is an increasingly time consuming issue both in terms of volume and knowing what’s what - don't talk to me about GDPR!”

The modern researcher, agrees Raik-Eric, must understand how to collect the right data, process it and translate it into appropriate action in order to continuously improve. “In the digital world, work is becoming more data-driven and scalable. We must therefore be able to move confidently in the relevant systems and on the relevant platforms.”

Sina reiterates however that is vital researchers do not lose professionalism in the way candidates are contacted, “It is becoming more and more important to address candidates in the right way and to network in a discreet way.”

What do you enjoy most about your role?

All agree that it is a privilege to interact with many differing personalities from a range of industries on a variety of issues. Acquiring knowledge is a vital part of the role – from business through to science - as well as understanding how businesses work and how the economy evolves.

In terms of international collaboration, Sina added, “Networking across national borders is very important for our clients and thus for me as a Researcher.”

How has the changes and new demands on industry affected the search process?

With so much information readily available and the pace of change in the world today, clients expect results faster. To stay competitive we need to balance speed with quality search methodology. In general, the demands on services are constantly increasing. In the course of customer centricity, our clients and candidates also expect our process to be targeted, transparent and fast.

Whenever the new normal arrives, and it will come in 2021, there will be a rush for talent. What action are you seeing companies taking at the moment?

Vera sums it up, “ In my experience, companies have recruitment needs now same as ever, I don’t see them holding back on a rush for talent later. Most of our clients are simply rethinking the way they work in the new normal.” Reflecting on the anomalous 2020, she added, “We’ve been conducting projects with virtual interviews  and while it doesn’t offer the same experience as live interviews, it seems to be working pretty well. Considering how much time and energy can be saved (both from our side and candidates’ as well), virtual interviews may be with us for good. Our roles could involve zero face to face interaction with candidates - but I hope not!”

Veronika Mohacsi, Hungary
Raik-Eric Theil, Germany

Delyan Grozdev, Bulgaria
Sina Nowack, Germany

What advice can you offer to women starting their careers?

We asked two of our female Partners, both very successful management consultants...

Susanne’s answer

I have two pieces of advice for the young women starting their careers.

Firstly, make a career plan. Having been a headhunter and mentor for over 20 years, my experience has showed that having written down your expectations and dreams for your work life is of great benefit. A study from Harvard University also confirms this observation. The study was conducted in their MBA class where 3% had a written career plan, 13% had a mental career plan and 84% had no career plan. 10 years after finishing their MBA the 13% had performed twice as well as the 84% and the 3% were making 10 times as much the remaining 97% annually.

Secondly, ensure that you have a good balance between work, studies and your private life. I see many young women who have focused solely on their studies for many years, and then find it very hard to find a job afterwards. Having solely focused on their studies and good grades for so long has unfortunately made them narrowminded, and workplaces today are looking more and more for educated and interesting people with a certain degree of charisma. If you have spent all your time behind your desk, it does not give you that charisma. Prioritizing your hobbies, drinking wine with your friends and travelling, while also studying, makes you a more interesting person for your future workplace – and it also gives you a great start to creating your own network.

Lorri’s answer

Being a woman today means there is a much wider range of career options. We have young women fighting in our army, in construction - we are politicians and CEOs of global companies – there is no limit. Yet many women are still reluctant to use their voice. Remember: you are hired for a job because of your skills and talents so don’t let these get minimized by not speaking up. Your ideas, contributions and achievements are yours to realize AND to highlight, no matter how uncomfortable it may be. Don’t force conversations or to become arrogant, but take those natural opportunities to talk about the work you’re doing and what you’ve achieved.

I think one of the best pieces of career advice for women is to develop a strong personal brand which together with a strong reputation can put you on the radar for exciting career opportunities.

Finally, if you're asked to do something that excites you, but that you aren't sure you're completely ready for, always say yes – you'll figure out the "how" later. The more confident and competent you appear, the more you'll be able to build confidence in your abilities in others.

Always have the confidence to try new things, or even take a lateral move to get a new perspective. Believe in yourself.

What does a digital leader do in the 21st century?

An interview with Antti Kleemola, CDO at the Finnish Rail Company, VR Group.

Digitalization has transformed the business world, depending on your point of view, for at least the last couple of decades. The change has been immense, not only in terms of processes and systems, but also in terms of the need for new competencies and working cultures.

Major changes require skilful management and many companies have reacted to digitalization by hiring a CDO to manage this change.

Is there still something left to be done in this digital transformation and is an appointed Digital Director required to successfully manage it?

We interviewed Antti Kleemola, CDO at VR Group, a government-owned railway company in Finland, operating in public transport services in both long-distance and commuter traffic, as well as in logistics and maintenance, about this topic.

From measuring kilometres to assessing customer satisfaction: digitalization means to VR above all a change in their thinking culture

VR is a textbook example of a giant organization where the need for a CDO was determined through experience. The changing business environment and with it the new measures of success drove the traditional logistics group, which has long had a monopoly over rail transport, to reflect on its capability in change management. Kleemola explained:

“Strangely enough, the focus of VR earlier was on the train instead of on the customer. For example, not that long ago our performance indicators focused mainly on kilometres driven.

“Due to both digitalization and the fact that competition for passenger rail transport will increase in the coming decade, our focus has shifted more than before from our fleet towards our passengers. Nowadays we focus on both the number of customers and customer satisfaction when measuring our success.

“Changes are happening on many fronts, which is why we need the entire organization to coordinate as to how to prioritize accordingly”.

The CDO is always busy – the need for change management due to digitalization shows no signs of slowing down

Kleemola's journey zigzagged, with the help of headhunters, through various leadership positions in the information administration to the digital executive of VR. Originally, he joined the organization to set the passenger transport sector in order, from the perspective of digitalizing the customer value chain. One of his first tasks was to make purchasing tickets easier, with the help of information technology.

“Quite soon it was noticed that it would make sense for the whole organization to think about how our business can better benefit from technology. It was desired that insights gained from the digitalization of passenger transport be applied to the entire organization. In this light, the need for a CDO was also identified,” Kleemola says.

“In a big organization like VR, reacting to changes isn’t always that simple. When both technology-driven reforms and demands for change from the authorities have an ongoing impact, it takes a strong digital leader to successfully hold everything together”..

The responsibility for digital change doesn’t lie solely on the CDO’s shoulders.

Whose responsibility it is to implement change in organizations, especially at giants like VR? Should it be only among CDOs, or possibly include someone else?

“To allow true change to happen, someone proactive and able to invest enough time and effort is needed. I doubt that a CDO alone has the power to do this. People in the organization are the key, and both employees and executives have a lot to take on when it comes to digitalization.

A viable partnership with business leaders is also of the utmost importance for a digital leader. This means digitalization throughout the entire organization’s agenda, not just in that of the CDO and his inner circle.

"The partnership and networking with both internal and external stakeholders need to be in good shape to succeed in times of digital transformation. Not even we at VR have all the answers; we need partners across industries,” Kleemola explains.

If the organization were an electric locomotive, information technology would be its fuel.

A successful digital leader turns his attention not only to making business more efficient through technology, but also to how such changes affect the overall customer experience.

“The goal of all our activities is ultimately to ensure that our customers are satisfied and have access to our services as easily as possible, be they train passengers or industrial customers who need an unbroken flow of goods. Therefore, we actively collect our customers’ insights and experiences and use them to draw useful conclusions about any developmental needs.

I believe that excellent customer experience still requires, in terms of digitalization, making organizations more collaborative and sharing common service platforms for the benefit of the consumer. There is still plenty of work to do in building these ecosystems for us digital leaders”, Kleemola states.

From IT's perspective, one of the biggest transformations has undoubtedly occurred in the area of cloud transformation. As data has moved from organizations' own servers to the cloud, its overall meaning has also fundamentally changed.

“With cloud transformation, information technology, as I see it, is becoming more of a “basic electricity”, so to say, that sustains operations. This “electricity” can then be recharged from the charging station if necessary, to allow the journey to continue.

As it stands, technology itself no longer requires that much management; the perspective has changed even more to people and change management. I believe that this will become even more pronounced in the job description of the CDO in the future,” Kleemola concluded.

Who knows, maybe the digital director of the future will be the title of CTO — Chief Transformation Officer.

Mika Rossi
Partner, Finland

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