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Darryl, thank you so much for being here.
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Can you tell us a bit about your transformation journey.
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You've been on a journey for the last 2 1/2 years
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since you joined.
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Yeah.
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What has that been like?
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I joined in February of 2015.
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And the mandate when I joined was to
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really transform the IT function
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to help the transformation of the overall group.
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To basically map out how we're going to transform
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HSBC into a simpler, better, faster bank
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over the next 2 1/2 years.
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My sort of mandate was to take hold of the IT function
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and make it into a high-performing team of technology
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people that could partner with the business
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to help them transform the company.
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Yeah, so this is not really an IT transformation,
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it's actually the enablement of a business transformation.
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We had to work very tightly within collaboration
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with a business to determine what the programs were
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that they needed to implement
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to do their part of the transformation.
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And then in parallel with that, we had to, within IT,
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we had to reconfigure how we deliver IT.
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The group is, you know, 150 years old.
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It's a collection of acquisitions over many years;
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lots of different applications and infrastructures
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that needed to be simplified.
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We set about a simplification program on architecture,
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on infrastructure, on applications, and on data.
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You had that huge change agenda
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that you've just described.
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Yeah.
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To accomplish in less than three years.
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So what is your advice for others who are embarking
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upon large-scale change to that order of magnitude?
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It has been a very ambitious timescale
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to do some of the things that we've done.
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I think some things are much easier
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to implement and quicker than others, okay?
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So, in terms of reorganizing the function,
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getting IT organized the right way,
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that was really the first thing.
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We had to say, look, let's get our IT organized
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into a cohesive global team,
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properly interfacing with the businesses and functions.
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You organize your team properly with a proper structure.
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You recruit the right people and put the right people
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in place to be credible partners with the business.
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So the first thing is make sure you get
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the right people in front of the business
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so they can really work with them
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as true peers and true partners;
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without that relationship there
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you're never gonna have the right dialogues.
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So that's sort of the, what I call the quicker end.
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I think the harder part, in the sort of
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2 1/2 timeframe, is really the fundamental architectural
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changes you have to make.
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So if you're ripping out systems
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and replacing them with new ones,
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or you're taking 10 versions of something
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and then trying to consolidate into one or two,
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that's a much, it's a much tougher task to do
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in that timeframe.
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My advice to people would be, you know, in that order,
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get the right operating model. Agree with the business.
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Be really clear about what they're trying to deliver.
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Be really, really clear about
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the program of work that they need you to deliver,
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and then do a serious assessment
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of your capability to deliver that.
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You know, be really honest about:
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Do you have the right organization structure?
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Do you have the right people?
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Are you using the right methods?
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And really, you know, examine the way you do things,
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because how you do things is actually gonna be
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the core element of the transformation.
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So building on that,
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HSBC is trying to both be efficient but also drive
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a more innovative culture.
Yeah.
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So what is the role of technology as a function,
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but also as a service
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to the business in that?
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Yeah, it's, yeah, so the challenges that
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I have in my executive team, and the business team
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actually, is to balance the needs of running
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a stable service every day,
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keeping our data and our customers secure,
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enabling big change programs to happen at pace.
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Then, adopting new ways of doing things,
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you know, having your eyes and ears open
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to what's happening in the industry
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and being able to absorb and ingest
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new ways of doing things at pace.
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Where we've been trying to drive my team's focus,
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and certainly my personal focus, is
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what's happening in the world outside of HSBC
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in terms of technology, innovation, and evolution.
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So, what's very clear is that the customer base
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is increasingly expecting to be able to consume
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the bank services through mobile channels.
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We're seeing a massive shift in social media.
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Yeah? So people using social networking,
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so we have to think about how we integrate
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our banking services with the social networks.
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My role and part of my team's, the CIOs' roles
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that are in the business and functions:
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to act as a conduit of those trends.
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So, so that's important.
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I think the other innovation we've had
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is we've created a Technology Advisory Board
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which is made up of six people who are,
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you know, luminaries in their fields of expertise
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in technology-the cyber experts, there's big data experts-
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people who very familiar with how the trends are going
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in the investment space and private equity
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and VC and what people are investing in.
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Looking ahead, what's going to separate the leaders
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from the laggards when it comes to how,
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so, how technology is delivered.
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The 40,000 people who you oversee.
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Yeah.
How is that going to work?
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We sort of concluded
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in that early part of the transformation
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that a wholesale shift across the company to Agile methods
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was the only way to really turbocharge
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the change of the company.
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So we embarked upon a bigger education program
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and a recruiting program to get, you know, experts
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who are ingrained in Agile methods.
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And as I say to you now, I mean two years into the program
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we've trained thousands of people,
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both in the business and in IT, to work in an Agile way.
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So taking big programs that would have been
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a two-year program, breaking them up into chunks,
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you know, to sort of 90-day deliverables,
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colocating cross-functional teams together,
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and then delivering things on a regular cadence
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so you can actually learn and get feedback
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from the customer.
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We are running a tech company here
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within a bank, essentially, okay,
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so we need to, the technology function here needs to, behave
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and act and use the methods and culture
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and tooling of a tech company.
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I think what's really important is the top of the bank.
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And when I talk about the top I mean
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the chairman, the CEO, the Board of Directors,
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and the senior management team need to recognize
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the criticality of IT to the transformation of the company.
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That's the first step.
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It's very hard to do this from the bottom up,
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you've really got to have the tone set from the top,
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you've got to recognize that doing things that way
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is the only way to really optimize the whole function,
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you know, so, doing Agile, doing DevOps;
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partnering with world-class tech companies,
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as I said on the Cloud agenda and the Big Data agenda,
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you know, I don't think we can really expect
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to run infrastructure as effectively
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as a Google or an Amazon.
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And I think our view is that we should partner
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with those types of companies to leverage
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their infrastructure, and that allows us
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to focus on the customer end of the proposition.
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So final question.
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You've talked about technology being the driver
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of the business transformation that's happened over
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the last few years at HSBC.
Yeah, yeah.
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Looking ahead, what is going to be the role
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of technology in, say 5, 10 years time for a bank like HSBC?
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Do you see it being fundamentally different from today?
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The world is changing around us, the environment
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is changing so fast that our customers are demanding
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that we, you know, use the new technology
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that's available to them, as consumers.
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Long gone are the days where IT is a cost to be managed.
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It's now actually a strategic weapon to be harnessed
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and to be, to be focused on how to really compete
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and differentiate with customers.
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And I think that's certainly the way
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that we feel about technology here at HSBC.
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Darryl, thank you so much for your time.
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It's been a pleasure talking to you
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and good luck with the rest of your transformation.
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Thank you very much.
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(upbeat music)