Conventional wisdom in business often eschews long-term visions, usually preferring to concentrate on immediate challenges. In recent times, however, Siemens Australia has undertaken a ‘Picture the Future’ initiative where the company attempted to identify how technological developments over the next decades would shape key Australian social and economic challenges, in areas such as water, energy and so on. We asked Siemens Australia Managing Director Albert Goller to explain why the company invested in this initiative, how it was executed, and what benefits have been achieved as a result.
ceoforum.com.au: Could you give a brief background to how the ‘Picture the Future’ initiative developed in Siemens?
Albert Goller: About seven years ago the global company began ‘Picture the Future’, where the aim was to look at what technology trends would emerge over the next ten, twenty and thirty years to address various social and economic challenges. Siemens Global has done this for various areas, such as cities, hospitals, and harbors, but the analysis had never been applied at a country level.
In Australia, we had already identified eight important areas for Australia - water, energy, environment, healthcare, productivity, mobility, safety and security - where we thought Siemens could make a contribution. We approached Siemens Global with the idea of doing a similar kind of ‘Picture the Future’ analysis at a country level, and they were very enthusiastic. As a result, we put together a team of both global and local researchers to look initially at water and energy, and then subsequently at other areas.
The team looked at more than 150 reports for water and energy alone, and worked closely with local organisations like CSIRO and University of Technology Sydney. In the energy area, for instance, we looked at what Australia’s energy mix would be in 2020, 2030, and beyond and what we as a society would need to do to reach these goals. We also did some financial modeling with our collaboration partners, and identified the export opportunities that would arise as Australia acquired expertise in particular technologies. It was a very comprehensive exercise.
A good example of how we can develop global centres of competence is desalination plants. This is a technology area with lots of export potential, and, as a result of our local experiences in building desalination plants, we have developed some cutting-edge technologies that can be deployed worldwide.
ceoforum.com.au: How long did the exercise take, and how did you staff the project?
AG: The entire exercise took about 12 months to complete. We had an interesting mix of staff on the project from top graduates to some of our most experienced employees. Over the year we’ve invested a significant amount of resources to support this project.
ceoforum.com.au: Was it difficult to make the case internally for this kind of investment in an exercise such as this? It seems that long-term visions have, to some extent, fallen out of favour in the corporate world – the consensus seems to be that the future is unknowable and we should therefore just focus on the short-term.
AG: I think that’s true. I often draw the example of John F. Kennedy’s famous statement in 1961 about landing a man on the moon within the decade. If someone said something like that today, all the talk would be about the problems and obstacles, and not the potential opportunities!
I think we need to apply that kind of vision to some of the fundamental challenges Australia faces. We should not let the very real challenges we face overwhelm us from recognising the need to change, and cause us to doubt our own capabilities. We have some tremendous resources in Australia, in our people, universities, and technologies, so we are well-placed to deal with these challenges and transform them into sustainable opportunities for the future.
ceoforum.com.au: What have been the benefits you have achieved from the project to date?
AG: One benefit is that, as a company, we have become much more aware of the different capabilities we have, which can be challenging when our organisation is so diverse and deals in such a wide range of industries. Our ‘Picture the Future’ program has highlighted the broad range of capabilities we have, not least to our own employees!
The ‘Picture the Future’ project has also served as a catalyst to engage with both existing and new customers. By taking such a public position on issues such as energy and water, and highlighting some of our capabilities, we have been approached by entrepreneurs and innovators, as well as existing customers, with some very exciting projects. Sometimes those approaches have come from fairly unlikely sources – a financial services company, for instance, who is emphasising environmental concern approached us about working together on some issues. I have no doubt that it was the ‘Picture the Future’ project that gave us the profile with these customers, and thus led us to new market opportunities. Customers are coming to us, asking them to reduce their water and energy consumption, and our businesses in that area are performing very strongly as a result.
A third benefit has been the effect on our employees. As well as lifting our engagement levels, we have never received so many job applications from graduates. A lot of graduates want to be part of a solution to these challenges the country faces, and they are attracted by the vision we have outlined.
ceoforum.com.au: How do you deal with all the different approaches you get from outside parties?
AG: One thing I stress with our people is to not exclude anyone. In the energy debate, it is common to divide the renewable energy industry as clean and fossil power as dirty. Yet the coal power industry has made significant investments in making their power stations more energy efficient, and reducing their environmental impact.
Another point is that we need to work together. The solution is inclusive; everyone needs to make an effort, regardless of how small their contributions may be. We are all part of the bigger equation and our efforts matter in some way. If you look at water, for instance, it is true that in terms of water saved, giving everyone personal water tanks will not, on its own, solve our water problem. However getting people involved in this way does make them feel good, and builds awareness and commitment around the issue. It’s important everyone shows commitment to sustainability and is empowered to contribute to the solution in any way they can. Thinking it is someone else’s problem only leads to apathy and disengagement.
ceoforum.com.au: What has been your own personal involvement in the project?
AG: I’ve always felt strongly about being involved with technology that offers real benefits for our customers and the community, so I’ve been very enthusiastic about the initiative from the start. Technology is not the sole answer, of course – people and processes are as important.
One thing that is particularly rewarding is seeing the enthusiasm of all the team members. Seeing their learning and growth has been very satisfying. My employees and I are now eagerly awaiting the studies into the remaining solution areas, with healthcare and productivity next on the agenda.
ceoforum.com.au: What would you advise other CEOs considering a similar exercise in their own companies?
AG: I’m not sure I’m in a position to give advice as such, but I can talk about one very specific benefit the exercise has given me.
As CEOs, I feel that we are often in danger of losing touch with the business at the grass roots, and thus focusing too much on the macro level. What Picture the Future has done for me is highlight some of the very specific capabilities we possess as an organisation, and that helps me better understand what we need to do to move Siemens forward in line with the real needs of Australia’s future. When an investment proposal comes up, for instance, we are more aware of how we can practically assist our customers and make better decisions to support Australia’s growth.
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