Show’s Introduction

Nabras Mohamed: Hello, everyone. Welcome to the latest episode of the Digital Adoption Show, your go-to podcast for cutting-edge insights and innovative strategies in today’s dynamic work environment. I’m your host for today, Nabras Mohamed, Regional Account Director at Whatfix. Today, we are exploring top strategies for successfully bringing transformational change to any organization.

To discuss this theme, we have a great guest on our podcast, Charlie Valerio, currently serving as a CIO at Aboitiz Power. Charlie uses his deep knowledge in digital transformation to push the company towards new technological breakthroughs. While leading at Aboitiz Power, Charlie has also put his skills to work as the president of the PMI Philippines Chapter, making a significant impact in the project management world. This role was a natural fit for him, showing his dedication to using digital changes to improve business strategies. With a career in IT and digital innovation spanning over 30 years, Charlie has been a key player in bringing new technology to various industries.

Throughout his career, Charlie has led the charge in digital transformation, whether as a Chief Digital Officer or a CIO. After his time at Shell, where he worked in a global role for more than seven years and traveled the world, he decided to focus his efforts locally starting in 2012. He has since joined four reputable conglomerates in the Philippines, covering various industries like power generation, electricity distribution, logistics, real estate, infrastructure, and telco, among others. This was Charlie’s way of bringing his global experience to help local businesses grow.

What a great pleasure to have you here. Welcome to the podcast, Charlie.

Charlie Valerio: Thank you, Nabras. Pleased to be here.

Career Journey and Experience

Nabras: Fantastic. Charlie, our listeners would love to hear more about you. Can you share more about your background and experiences?

Charlie: Okay, I think you’ve mentioned most of it, but yes, indeed. I’ve been in the corporate world for more than 30 years now. I’m actually IT by education, and aside from a very short stint outside IT at Procter and Gamble, most of my 30-plus years were spent in the IT arena. My work principles and discipline are influenced by these two big multinationals, Shell and Procter and Gamble. After working with multinationals for more than 20 years, with the last seven or so years in a global role, I had this epiphany back in 2012 and started this advocacy to give back to the local industry.

Since then, I joined local conglomerates with a desire to help not just the institutions I joined but the country as a whole. So, in a nutshell, that’s who I am and where I am.

Nabras: I see. The Philippines has indeed been growing from a technology standpoint.

Charlie: Yes, indeed. Not just economically, but technology adoption as well.

The Digital Pulse: Connecting Passion and Profession

Nabras: So, Charlie, before we dive into our main discussion, let us kick off this episode with our segment where we try to connect the dots between passion and profession, uncovering how individual journeys shape visionary leadership. Is there a passion or an activity outside of work that is particularly close to your heart?

Charlie: Oh, yes. You mentioned my role as the president of the Project Management Institute Philippines Chapter. It didn’t happen by chance; it was intentional. When I returned to the local scene after working for so many years with the two big multinationals, I was exposed to local project managers and was disappointed by the quality and competence. Over the past 10 years, I had to literally kick out more than 10 project managers and demote some due to their performance. I realized that project management is a life skill, not just needed at work but also in personal life. I’ve even used project management principles for planning my wedding. That’s where my passion lies, and that’s why I joined the Project Management Institute and became its president.

Nabras: Fantastic. That’s a unique story. I would definitely want to hear more about how you used project management for your wedding.

Successful Transformation Stories

Nabras: Moving on to the main discussion, can you share with us and our audience a few successful transformation stories to give them ideas to run one of their own? What specific actions did the organization take, and what were the outcomes?

Charlie: Okay. One of the most successful digital transformation programs I worked on was with an oil and gas retail company, a local conglomerate. It was a lot of hard work, but it was fun. The COO, who eventually became the CEO, and I met eye-to-eye on digital transformation. We had a clear vision and aligned strategies. One unique approach we took was doing a skit to demonstrate the transformation at a retail station. We made a mock-up of a retail station with cars made of cardboard and showed the organization how it would look to be digitally transformed. This was in December 2019, and it was well-received.

The dealers were equally excited and ready to invest. When the pandemic hit in 2020, it actually expedited our program. A three-year plan was delivered 80% in just six months. We launched a super app called Limitless on June 12, 2020, Independence Day. It was timely and innovative, introducing contactless transactions at fuel stations. The app quickly gained traction with over 200,000 registered members and nearly a billion pesos in transactions within six months.

Nabras: The key here is solving the right problem and creating excitement and buy-in from internal stakeholders, which brought the entire company together.

Addressing High Failure Rates

Nabras: Charlie, there is a flip side to this. Stats indicate that digital transformation often has a high failure rate, more than 70%. In your experience, what are the primary reasons for these failures?

Charlie: It is very sad but true. Many digital transformations fail to deliver their expected benefits. For me, focusing on the key success factors is crucial. I call them the four Cs: Champion, Compelling Case for Change, Culture Change, and Capability.

1. Champion: The CEO must not only lead but actively champion the transformation. Visible support from the top is essential.
2. Compelling Case for Change: There must be a clear, urgent reason for change that the entire organization can visualize and support.
3. Culture Change: A mindset shift is necessary, especially in how the company views failure. Adopting a fail-fast, learn-fast approach is vital.
4. Capability: Having the right people with the right skills and mindset is crucial. Partnering with the right vendors and avoiding overpromises is also important.

Identifying Early Signs of Trouble

Nabras: With such a high possibility of failure, how can leaders identify early signs of trouble and have a mitigation strategy ready?

Charlie: This is where my project management discipline comes in. Effective risk management and contingency planning are essential. Project managers must have foresight and be ten steps ahead. It’s about identifying risks and potential changes early and having the capability to pivot. Returning to green plans might not always work; sometimes, it’s better to stop and reassess the situation. Frequent assessments and recalibrations are crucial.

Leadership’s Role in Digital Transformation

Nabras: You mentioned earlier that the CEO’s buy-in is super important. Who, according to you, should actually lead these transformations? Should it be led by the CEO or CIO?

Charlie: It has to be led and championed by the CEO. While the CIO can lead, the success will be suboptimal without the CEO’s visible support. The CEO’s active involvement is a critical success factor for sustainable transformation.

Overcoming Resistance to Change

Nabras: More than anything, during any kind of transformation, it’s the people who are resistant to change. What steps would you suggest to ensure alignment and effective communication throughout the organization during transformational change?

Charlie: It boils down to an effective change management program. The ADKAR framework—Awareness, Desire, Knowledge, Ability, and Reinforcement—is very effective. People need to see what’s in it for them. Digital transformation should be part of the corporate performance management system, with rewards and recognition, or even punitive actions if necessary.

Tips for Successful Digital Transformation

Nabras: Can you share with our listeners the top three tips they should follow for a successful digital transformation and change management initiatives?

Charlie: Sure.

1. Follow the Four Cs: Ensure the transformation is championed by the CEO, have a compelling case for change, drive culture change, and build the right capabilities.
2. Conviction: Be convinced about the transformation yourself. Understand and be clear about why you’re doing what you’re doing.
3. Externalize: Don’t rely solely on internal knowledge. Learn from others, be part of digital communities, and seek external insights.

Triple Strike: Rapid-Fire Round

Nabras: Before we finish our episode, we have a quick rapid-fire round, the Triple Strike, with three quirky questions to get a deeper glimpse into your mind. Are you ready?

Charlie: Wow, Triple Strike. Hopefully, I’m not going to be out just like in baseball, but yeah.

Nabras: What is your most favorite app on the phone and why?

Charlie: I like digital bank apps because they give higher interest than the normal bank, and I’m able to shift funds around for investment.

Nabras: If you could time travel, would you go to the past or the future?

Charlie: Tough question. I want to go to the past so that I can undo the sins of the past and fix the future.

Nabras: If you could just eat one cuisine for the rest of your life, what would it be?

Charlie: I love Italian food. Can’t go wrong with olive oil, cheese, and tomatoes. I can eat Italian till the end of the world.

Conclusion: 

Nabras: That’s great to know. Charlie, thanks a lot. I wish we had more time to discuss and understand more about your experiences and learnings. It’s been a great conversation, and I’m sure our listeners enjoyed it as much as I did. Thank you for joining us today, Charlie.

Charlie: Thanks for inviting me. I also had fun. Thank you.

Nabras: Before we go, to our listeners, please tune into the Digital Adoption Show across platforms to listen to more interesting, intriguing, and fun conversations with some of the top minds across the digital space. We are available on Apple, Spotify, Google, and YouTube. Whether you are at home or on the go, don’t miss out on the latest episodes.

Thank you again, Charlie, for being part of this episode. We really had a fun time and wish you all the best. I’m Nabras Mohamed, signing off. Thank you.