Leadership Matters magazine - April 2020 by karyl.estrella

LEADERSHIP MATTERS

WHIISTLEBLOWING

RAM CHARAN

Where would you turn if you suspected crime in your workplace?

Revealed: How Amazonâ&#x20AC;&#x2122;s leaders achieve speed, agility and scale

IDENTITY SHIFT

LEADING WITH DIGNITY

Our step-by-step guide to changing careers

The award-winning business that is also a charity

ARTIFICIAL INTELLIGENCE APRIL 2020 01_0320 - Cover options_v6.indd 1

Are you (and your people) ready?

11/03/2020 11:37

Accredit your leadership.

CHARTERED MANAGER

CHARTERED MANAGER Institute of Managers and Leaders

Being a Chartered Manager helped me get recognised and gave me the opportunity to network and connect with other professionals. Chartered Manager impacted me in a positive way, it recognised my qualifications and practical skill set.

Khaled Haque CMgr AFIML Banker and Academic

managersandleaders.com.au

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Get recognised for leadership excellence

IN JUST 3 STEPS Submit your documents Submit your CV and supporting documents to chartered.manager@

managersandleaders.com.au to have your eligibility assessed.

Complete a written assessment

Complete a reflective-based written assessment which will be used to assess your skills and expertise in leading people and managing change.

Phone interview You will be allocated an assessor who will work with you on any additional requirements and confirm that you meet the

Chartered Manager standards.

Get accredited today.

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Chartered Manager

11/03/2020 11:37

APRIL 2020

14 WHISTLEBLOWER The man who blew the lid off A$20 million fraud in his workplace offers his prevention and detection advice for other managers.

6 INTELLIGENCE Leadership news in review, including Member accolades and IML ANZ updates.

The Institute of Managers and Leaders Australia and New Zealand (IML ANZ) is the peak body for management and leadership development, executive insights and research services. IML ANZ believes that better managers, and better leaders, lead to a better society. Go to managersandleaders.com.au for IML ANZ details in your state or territory. Leadership Matters is published by the Institute of Managers and Leaders Australia and New Zealand. The views and opinions expressed in articles and columns in Leadership Matters are those of the writers and interviewees and do not necessarily represent those of IML ANZ.

22 ARTIFICIAL INTELLIGENCE Many leaders could miss out on the benefits that artificial intelligence can deliver for their organisation. Don’t be one of them.

12 UP AND COMING A new regular feature where a young IML ANZ Member shares their tips for the top.

Editorial Director Andy McLean MIML andy@andymclean.net @1andymclean

Writers Dr Tim Dean Nicola Field Vanessa Mickan Anthony O’Brien Derek Parker

18 THE CONVERSATION Jasmin Craufurd-Hill FIML on bushfire relief work, global nuclear security, and more.

Creative Director GASCOIGNE DESIGN Mark Gascoigne gascoignedesign@tpg.com.au

Printed by Rawson Print Co. Unit 1/119 Wicks Road, Macquarie Park NSW 2113. ©IML ANZ. Reproduction in whole or in part is prohibited without IML ANZ’s prior permission.

April 2020

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RAM CHARAN The secrets behind Amazon’s management system which enables leaders to achieve speed, agility and scale.

38 COLLABORATION The story of how a seed company nurtured a whole cohort of managers and leaders.

34 IDENTITY SHIFT Changing careers is a daunting prospect but it’s perfectly possible to do. Leadership Matters investigates how to make the switch.

CORPORATE SOCIAL RESPONSIBILITY Practical tips on how leaders can select the right charity partners for their organisation.

OPINION

POWER

OUT OF OFFICE

HEALTH

CONTENTS

THE KNOWLEDGE Guidance to help managers harness AI and biometrics, while avoiding the pitfalls. CONSULTING

MENTORING

managers and leaders warning signs that your column with tips one another’s eyes to 10 What 28 Four 42 AfornewSMEsregular 43 Opening can learn from philosophy. leader may be drunk on power. and consultancies. new ideas and opportunities. tips from Cricket hiking helps leaders to 44 How 46 Wellness Australia’s nutritionist. recharge their batteries.

Content Producer Karyl Estrella MIML karyl.estrella@managersandleaders.com.au General Manager – Strategy and Partnerships Margot Smith FIML margot.smith@managersandleaders.com.au Public Relations and Media Whitney Duan MIML whitney.duan@managersandleaders.com.au

GIVING BACK

Liesel Wett MIML leads 50 How change in the health sector.

For editorial suggestions, please contact:

Australia managersandleaders.com.au membership@managersandleaders.com.au 1300 661 061

Karyl Estrella MIML karyl.estrella@managersandleaders.com.au 02 8039 011

New Zealand managersandleaders.co.nz membership@managersandleaders.co.nz 0508 465 269

For advertising enquiries, please contact: Alex Martins – Partnership Manager alex.martins@managersandleaders.com.au +61 418 532 525

LEADERSHIP MATTERS

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INTELLIGENCE

Dear Dave

Let’s hit this thing head on: If you’re delivering news that – by your own admission – is bad, there’s absolutely no point in sugar coating it. This is a common mistake that managers make. It’s called ‘spinning’ and it rarely turns out well. If your goal is to get the people impacted by the change to see it as being positive, I suspect you will be disappointed. The people impacted are going to see right through you. Bad news is bad news. It should be acknowledged as such. At the start of a period of change (and throughout the process), your role as the leader is to be honest and upfront. It isn’t to convince the affected people that the news is good. The best thing to do is to set up regular, open communication with the impacted people – both as a group and individually. Recognise that different people react to change in different ways. One size doesn’t fit all. Understanding people’s individual reactions, needs and emotional responses is crucial here. As is the ability to adjust your own communication style and responses to suit the individual. Ultimately, you need to clearly communicate why the change is taking place, and how it will happen – not persuade people that your bad news is actually good news.

Email your curly leadership questions for Dave to answer in a future edition. deardave@managersandleaders.com.au

DAVID PICH CMgr FIML Chief Executive IML ANZ

WHIISTLEBLOWING

RAM CHARAN

Where would you turn if you suspected crime in your workplace?

Revealed: How Amazon’s leaders achieve speed, agility and scale

IDENTITY SHIFT

LEADING WITH DIGNITY

Our step-by-step guide to changing careers

The award-winning business that is also a charity

ARTIFICIAL INTELLIGENCE APRIL 2020

Q A

I’m leading my company through a period of significant change. I need to deliver some bad news in the process. What is the best way for me to ensure everyone is on the same page, that they understand expectations and can see this as something positive?

LEADERSHIP MATTERS

Are you (and your people) ready?

98%

Members read the magazine ‘always’ or ‘sometimes’

Your new look magazine As you’ve probably spotted, we’ve made some changes to Leadership Matters. A few months ago, more than 350 Members shared their views on the magazine, via an online survey. We listened and have adapted accordingly. The magazine now includes more updates about Member achievements and milestones, along with more details of how IML ANZ is working to create better managers and leaders for a better society. We’ve also renewed our commitment to provide practical, useful insights and tips that Members can apply in their day-to-day work. “In a nutshell, we’ve kept all the things Members said they liked and introduced the extra things that Members said they wanted to see added into the magazine,” explains IML ANZ Chief Executive, David Pich CMgr FIML. “For example, an overwhelming majority of Members, of all ages, still want a quarterly print magazine – so we’re continuing this. And many Members wanted a more modern, contemporary design, so we’ve addressed that. We hope you love it!” Members said they also find it useful to access Leadership Matters articles online, so these will be available on the IML ANZ website, and will be highlighted via IML ANZ e-newsletters and social media channels. And the majority of Members said they’d like to see a regular management and leadership podcast from IML ANZ. So, plans are underway to launch a free podcast series later this year.

Members share Leadership Matters with one or more other people

A Clear Winner Managing Director of Easy Glass Services, Mary Linnell FIML, won the National Crystal Vision Highly Commended Award for 2019. She was recognised for her work in inspiring and motivating young women to pursue a career in the construction industry. The awards are presented by the National Association for Women in Construction and celebrate female achievements.

April 2020

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INTELLIGENCE

CHARTERED “I RECOMMEND THE CHARTERED MANAGER PROGRAM, NOT JUST FOR MANAGER THE INTERNATIONALLY RECOGNISED ACCREDITATION, BUT ALSO FOR THE SELF-DISCOVERY IN LEADERSHIP THAT IT PROVIDES.” WAYNE SMITHSON CMgr FIML Institute of Managers and Leaders

Read Wayne Smithson’s reflections at iml.click/SelfDiscoveryBlog2020

Paws for thought

International Guide Dog Day is just around the corner. It’s a time to honour guide dogs and the role they play in the lives of people with low vision or blindness, according to CEO of Guide Dogs Victoria, Karen Hayes FIML: “Guide Dogs are so much more than just a mobility aid. They support our clients to be active and involved members of the community and, in many instances, they provide a much-needed source of companionship.” Guide Dogs Victoria receives less than a quarter of its funding from the government and relies heavily on the support of the community to provide its life-changing services. For details visit guidedogsvictoria.com.au 82%

APRIL

Flexibility on the rise

SENIOR EXEC SENIOR MANAGEMENT

In the past decade, there’s been an increase in managers and leaders in Australia enjoying flexible work arrangements.

77% 72% 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

IML ANZ’s National Salary Survey, 2010-2019

Leadership under fire The bushfires that devastated vast swathes of Australia in the summer were horrific, and the responses of various political leaders was widely debated. However, there were many examples of exemplary leadership during the crisis. NSW Rural Fire Service Commissioner Shane Fitzsimmons was praised for his professionalism, clear messaging, and empathy for colleagues and fire victims. And volunteer firefighters rightly received accolades for their leadership, dedication and bravery during the bushfires. Full-time firefighters may not have had quite the same media exposure but their contribution was also immense – many of them temporarily relocating to lead firefighting efforts in other areas. Everyday leaders also stood up to support their communities in times of extreme hardship. Jasmin Craufurd-Hill FIML reflects on some of these on pages 18-21 of this edition of Leadership Matters magazine, informed by her work on the front line of the St John Ambulance response in NSW.

To donate to the St John Ambulance NSW bushfire support visit stjohnnsw.com.au/donate or the Red Cross disaster relief recovery, visit redcross.org.au

LEADERSHIP MATTERS

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INTELLIGENCE

ONE OF THE GREATEST

BUILD ON LEADERSHIP FOUNDATIONS After successfully helping 14 cohorts of new managers last year, IML ANZ’s Intentional Leadership Foundations Program is back in 2020. The 12-week blended learning program provides the core skills required to transition from technical specialist to impactful management professional. Enrolments for the May cohorts in Adelaide, Brisbane, Melbourne and Sydney close on Friday 3 April. Register at managersandleaders.com.au

WATCH A VIDEO ABOUT THE PROGRAM AT iml.click/Foundations2020

Congratulations to Errol Milevskiy CMgr FIML who was named one of the 100 greatest leaders by Engineers Australia. These leaders come from all eras, disciplines and work areas and include the most highly respected engineers in Australia. Milevskiy is only one of 32 living engineers to make the list and is the only marine engineer, marine surveyor and engineering technologist to be recognised. Find out more at iml.click/GreatestEngineersBlog2020

SAVE THE DATE WHAT’S ON

WHERE

WHEN

Masterclass Mastering Effective Communication

Brisbane Melbourne Sydney*

April

Webinar Developing a Coaching Culture

Online

7 May

Masterclass Time Management Mastery

Brisbane Melbourne Sydney*

May

Masterclass Navigating Emotional Intelligence in the Workplace

Brisbane Melbourne Sydney*

June

Webinar Understanding Authenticity – a Leadership Essential

Online

2 July

2020 IML ANZ Leadership Summit

Brisbane

29-30 October

To register or find out more visit managersandleaders.com.au or managersandleaders.co.nz *For other Masterclass locations and topics, visit the IML ANZ website

THUMBS UP SWEET AS, BRO Work/life balance became a reality for 2,000 Vodafone NZ staff thanks to the company’s initiative to clock off at 2pm every Friday in summer. They were encouraged by management to hit the beach or “catch up with friends and family around the BBQ”.

ROLE MODELS: YOUNG AND OLD The oldest recipient of a 2020 Australia Day honour, 97-year-old Colin Hamley said it felt “marvellous” to be made an OAM for his many years of advocating for World War II veterans. He also praised as “remarkable” the achievements of the youngest, 19-year-old LGBTQ+ activist Georgie Stone, who is also now an OAM.

THUMBS DOWN THE FINAL FRONTIER According to Fast Company’s Mona Sabet, new TV show Star Trek: Picard teaches five leadership lessons: create a diverse team; live by your values; build trust; lead by your actions; stay humble. Now you have an excuse for some serious couch time. (You’re welcome.)

SHOULDA WOULDA COULDA... DIDJA? Australia’s Co-op Bookshop, founded by university students more than 60 years ago, has gone into voluntary administration owing A$15 million. In recent years, it was criticised for refusing to have university students on its board, even though they make up its target market and core membership.

WHITEOUT IN SWISS ALPS When Associated Press published a photo of Greta Thunberg and other young climate activists at the World Economic Forum in Davos, they cropped out the only one who wasn’t white, Vanessa Nakate of Uganda. Reuters kept her in ... but incorrectly identified her as Zambian activist Natasha Mwansa.

FAILURE TO COMMUNICATE Following hundreds of deaths in two crashes late in 2018, Boeing has finally released internal communications about its grounded 737 Max. It revealed that before the fatalities, one employee said the plane was “designed by clowns, who in turn are supervised by monkeys”. Another said they wouldn’t allow their family on one.

April 2020

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INTELLIGENCE

Raising our voice for equality The Official Flagship Event of International Women’s Day in Australia was IML ANZ’s Great Debate held in Brisbane, Melbourne and Sydney on 6 March. The three events saw more than 1,900 attendees enjoy a lively luncheon and debate whether ‘The world won’t listen unless women shout’. If your organisation would like to become a partner or sponsor in 2021, please contact sponsorship@managersandleaders.com.au

LEADERSHIP MATTERS

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ARTICLE BY DR TIM DEAN Sydney-based philosopher, writer and regular contributor to New Philosopher magazine. newphilosopher.com

o this day, philosophy is still rather uncharitably perceived as being a pursuit for idle reflection rather than practical concern. But, as Thales demonstrated, the application of a little careful thinking can be highly fruitful to your business.

Philosophy starts with the simple question “why?” But instead of settling on the first convenient answer, it continues to ask “why” until it reaches the limits of our understanding. This can be unsettling, but it can also be liberating. As the 20th century English

Why? Why? Why?

philosopher Bertrand Russell noted: “Philosophy, though unable to tell us with certainty what is the true answer to the doubts which it raises, is able to suggest many possibilities which enlarge our thoughts and free them from the tyranny of custom.”

THE CONNECTION BETWEEN PHILOSOPHY AND CANNY BUSINESS DECISIONS GOES ALL THE WAY BACK TO THE 6TH CENTURY BC WITH THALES OF MILETUS, NOTED AS BEING THE FIRST GREEK PHILOSOPHER. AFTER BEING RIDICULED FOR ALLEGEDLY FALLING INTO A HOLE DURING INTENSE PERAMBULATORY MEDITATION, HE DEMONSTRATED THE POWER OF CAREFUL THINKING BY PREDICTING A BUMPER OLIVE CROP AND BUYING UP ALL THE OLIVE PRESSES IN THE REGION. THUS, WHEN THE HARVEST PROVED BOUNTIFUL, HE GOT HIS OWN BACK BY LEASING OUT THE PRESSES AT A PREMIUM AND SUBSEQUENTLY BECAME QUITE RICH.

A different perspective on leadership

OPINION

FOR AN ALTERNATIVE VIEW, FLIP YOUR MAGAZINE ON ITS SIDE.

April 2020

12/03/2020 09:59

Philosophy can help leaders break free from conventional thinking and try something new. Liberation from the “tyranny of custom” is pertinent in this age of innovation and disruption. Innovation requires us to break free from the constraints of conventional thinking to try something new. We are all too easily stuck within the dominant conceptual framework that blinds us to new opportunities. If you want your colleagues to be innovative, it pays to cultivate a healthy dose of philosophical scepticism as a part of your organisation’s culture. As a leader, you can promote that culture by not only questioning others but by conspicuously questioning yourself. You can acknowledge the limits of your own knowledge and invite others to test your – and their – ideas in an atmosphere of open enquiry. One question that is worth asking is why you do what you do in your organisation. That sounds rather broad, but it can be applied to any particular practice within your organisation, whether it be “why do we sell product X or provide service Y?” or “why do we operate during the hours we do?”

A key distinction to help answer questions like these was highlighted by the 20th century American philosopher Christine Korsgaard, who built on the work of Aristotle. Korsgaard drew a clear distinction between “instrumental goods,” which are good because they lead to something else we desire, and “final goods,” which are good in and of themselves. Money is a classic example of an instrumental good, because (most people) want money for what it can buy rather than for the sake of possessing it. Final goods might be friendship, health or what Aristotle called “eudaimonia,” which is roughly translated as “human flourishing.” It’s easy to conflate the two, such as by assuming that an instrumental good is a final good. I worked with some safety consultants to help overcome the pushback they were experiencing from their clients. When I asked them why they do what they do, they answered that safety was inherently important. This revealed that they considered safety to be a final good – as if it was desirable in and of itself – and that didn’t resonate with their clients, who saw safety as a nuisance and a sunk cost. But when the consultants started talking about safety as an instrumental good – one that is good because it saves lives, minimises reputational damage and preserves property – they were much better received. It can also be illuminating to apply Korsgaard’s distinction to think about the final goods that your products or services promote. You might think you’re selling financial services, but really

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Speaking of Aristotle, it would be remiss to talk about philosophy in leadership without mentioning ethics. Many organisations follow a code of ethics, but it’s unwise to assume these codes are sufficient to promote ethical behaviour across the board. In fact, if you impose too many rules, you take away your colleagues’ ability to make ethical decisions for themselves. This is where Aristotle’s approach to ethics can be useful. Rather than suggesting we follow a strict system of rules, Aristotle argued that we should aim to cultivate virtues in ourselves and others, such as patience, honesty, courage and charity. By creating a virtuous workplace, you become less reliant on rules, regulations and procedures, and are empowering your colleagues to take responsibility for their actions. You can create a culture of virtue within your organisation by exemplifying virtuous behaviour yourself and rewarding it (and not punishing it) in others. Ultimately, the value of philosophy in leadership is in freeing yourself from the constraints of your assumptions, in eroding a false sense of certainty that poisons innovation, in improving the rigour of your thought and promoting a virtuous workplace. And it all starts by asking “why?”

Virtuous leadership

you’re selling peace of mind. That might inform how you deliver your services, such as by spending more time identifying final goods that your customers care about and tailoring the way you communicate so the financial services are seen to be instrumental towards those goods.

OPINION

LEADERSHIP MATTERS

12/03/2020 09:59

UP AND COMING

Four steps to success In this new regular feature, young leaders offer their career tips. To start us off, Solomon Shuyang Li shares lessons learned from founding his own law practice and serving on boards.

. Prepare

SOLOMON SHUYANG LI CMgr FIML Director Viska Lawyers & Advisors

If you want to start a business or move into a leadership position, you should plan early. Even when it seems like the step you want to take is huge, it won’t be if you prepare well. Understanding the legal, financial, and other technical aspects of your business is part of the preparation. However, being a leader requires more. There are other capabilities and soft skills, such as strategic decision-making, managing people, and managing change, that you must build up. I believe that no one is a natural leader, and one must develop leadership skills.

. Lead well

In ASX 200 boards, 57% of members are aged over 60 years. In recent years this has dropped from around 75% as boards seek younger members (Corrs Chambers Westgarth, 2015)

For me, outstanding leaders possess three key qualities: 1 Being accountable. Even if mistakes occur, a true leader takes responsibility. 2 Having concern. Not just for the business but the people – your colleagues and stakeholders. 3 Establishing a vision. Being a leader is about bringing people together. How do you unite people? Through this vision. There are conflicts in many contexts. I know this from being a lawyer. As a lawyer, I help people to dispute matters. As a leader, I help people to unite.

. Join a board

As I was preparing to start a law practice, I focused on improving my management and leadership skills. So, I joined some boards; one was a primary school in regional Victoria and another an aged care organisation in Geelong. I contribute my technical expertise to these organisations and, in turn, I’ve learned strategic decision-making, goal-setting, people management, and large-project planning within the corporate governance context. This type of work is often honorary, without pay. Sure, you need to set aside time – perhaps 20-30 hours per month, including reading documents and board meetings, plus additional hours if you are the chair or committee chair. It takes commitment. But if you get the opportunity, I highly recommend joining at least one board to hone your leadership skills and contribute to the community.

. Get accredited

For anyone to become an effective manager and leader, you should be qualified and trained in some way, either by experience or by education. If you want to step into a governance or leadership role, I think you need to prove to your stakeholders that you are capable of the tasks required. For me, becoming a Chartered Manager means I have ample evidence of a proven track record. It shows that I am qualified to be an effective manager and leader.

“AS A LAWYER, I HELP PEOPLE TO DISPUTE MATTERS. AS A LEADER, I HELP PEOPLE TO UNITE.”

April 2020

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MATTERS # SE TLEADERSHIP HG O DIN2 0 2 013

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LEADERSHIP | WHISTLEBLOWING

WHISTLE

BLOWER

April 2020

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LEADERSHIP | WHISTLEBLOWING

ON’T DOB. KEEP SHTUM. DON’T TELL TALES. MIND YOUR OWN.

THEY’RE THE UNWRITTEN RULES OF AUSTRALIAN CULTURE. BUT SYLVAIN MANSOTTE, CO-FOUNDER AND CEO OF WHISTLEBLOWING APP WHISPLI, SAYS MANAGERS AND LEADERS MUST NURTURE A CULTURE THAT PROTECTS THOSE WHO ARE PREPARED TO SPEAK OUT.

Sylvain Mansotte uncovered A$20.7 million in fraud at Leighton Holdings in Australia

ARTICLE BY NICOLA FIELD Journalist

n Australia, dobbing is still not seen as fair dinkum. Despite targeted campaigns to identify tax cheats, drug dealers, misbehaving clerics, and even perpetrators of sexual harassment in the workplace, there is considerable social pressure not to say a word. French expat Sylvain Mansotte knows all about this pressure. Back in 2012, Mansotte had just started working for Australian construction giant Leighton Contractors (now CIMIC Group) when he uncovered a massive fraud. As part of a small procurements team, Mansotte was reviewing a number of the company’s vendors, when he came across one supplier called ‘Acorn Cottage’. It stood out because the oddly named Acorn Cottage had invoiced Leighton to the tune of more than A$2 million over the previous 12 months. Mansotte dug deeper. He contacted Leighton’s accounts payable team, who said the payments were for ‘consulting services’. Still not comfortable, Mansotte ran a few simple online searches. That was when his world turned upside down. It turned out that Acorn Cottage was owned by a company employee. But not just any staff member.

The man behind Acorn Cottage was Damian O’Carrigan, long-term (30-year) employee of Leighton and (then) finance manager for Queensland, with responsibility for approving payments up to A$5 million. A quick review by Mansotte confirmed that Acorn Cottage had issued more than 300 invoices to Leighton. The invoices, lodged fortnightly and sometimes weekly, ranged from A$10,000 to A$205,000. It was later confirmed that, after receiving payment, O’Carrigan transferred the cash from Acorn Cottage to his own Commonwealth Bank account. Of course, Mansotte had no idea of this at the time. But he did the maths. If he was right, O’Carrigan had defrauded the company out of A$20.7 million over a 12-year period. At that point Mansotte wanted to blow the whistle. The challenge was that he was new to the company – still on probation, and a long way down the chain of command from O’Carrigan. Moreover, he had a wife and young family to support. Like many people who uncover fraud and corruption, Mansotte had doubts. He was especially unsure that his assumptions were correct.

LEADERSHIP MATTERS

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LEADERSHIP | WHISTLEBLOWING

New Australian whistleblower laws applied from 1 July 2019

At the time, Leighton offered whistleblowers access to a confidential hotline. But with his distinctive French accent, Mansotte knew his voice made him easy to identify. Unsure how deep the fraud ran, he wanted to remain anonymous. Luckily, Mansotte’s immediate manager was also new to the company. Mansotte figured that a fellow newcomer couldn’t also be in on the scheme. Mansotte’s instincts were right. He shared his suspicions with his manager, and within minutes the fraud was reported to the CEO. In a matter of weeks, O’Carrigan was sentenced to 15 years imprisonment. An estimated A$4 million was later recovered but much of the money had been spent on high-rolling good times, and Leighton was left with a loss of around A$16 million. Ironically, 58-year-old O’Carrigan was just weeks away from retiring. The experience gave Mansotte a first-hand understanding of how hard it can be to speak out about workplace misconduct. It inspired his launch of Whispli, a secure, anonymous, twoway communication platform enabling private conversations between individuals.

THERE IS A LONG PERIOD AHEAD OF US TO EDUCATE CORPORATE AUSTRALIA ON THE BENEFITS OF LISTENING TO ITS BEST ASSET – ITS PEOPLE. Whistleblowers face a backlash According to Mansotte, there is something of a common thread to the sorts of activities reported to Whispli. He explains, “Our Whispli clients are reporting back to us on a regular basis, and it is fair to say that between 70% and 80% of reports are HR related, for example, bullying, harassment, sexual harassment and other employee relations issues. The remaining 20% would cover other types of misconduct or wrongdoing such as suspicion of theft, fraud or corruption.”

further resources

PODCAST This Working Life podcast episode ‘Does workplace whistleblowing mean career death?’ abc.net.au/radionational

The success of Whispli reinforces workplace fears of negative repercussions for speaking up about wrongdoing in the workplace. A Griffith University study found more than 80% of whistleblowers face a backlash for speaking up. Mansotte explains the reluctance of whistleblowers, saying, “Pretty simply, it comes down to two feelings – fear, and in some instances, shame. “Everyone fears the response of the organisation once they make that initial disclosure: Will I keep my job? Will I get the promotion? Am I right in my assumptions? Will they try to cover it up? It is human nature that we try to protect ourselves, our loved ones and our livelihood.” Mansotte adds, “In my own case, I was 100% certain that I was dealing with fraud. Yet still my brain was telling me otherwise as I thought I would lose my job or be classified as a troublemaker if I was to accuse a well-respected employee of committing a crime for over 12 years.” He continues, “The ‘shame’ usually occurs when an individual is about to report something that was impacting them personally – whether mentally or physically, such as bullying or sexual harassment. “In this case, not only will the individual have fear, they will also have a sense of shame, and sometimes guilt. They don’t want to go through that horrific ordeal [of reporting the experience], and they know that as soon as they do, everyone will be made aware of it – peers, colleagues, friends and family.” Mansotte believes this can explain why in some recent high profile cases, such as Harvey Weinstein or Bill Cosby, it took decades for the first victim to come forward. “Once one person speaks up, everyone else comes out in the hours, days or weeks following the initial disclosure. This is because they have overcome those feelings of fear and shame, and finally feel empowered to speak up as they realise they are not alone,” says Mansotte. “If you can take away the fear and shame, individuals will be more likely to report their concerns. This can only work effectively if you can put the individual and the organisation on a level playing field to build trust. And that means allowing the informant to remain anonymous, at least in the first instance.”

TOOLS Whistleblowing platform for security-conscious organisations whispli.com

LAW Details of greater whistleblower rights and protections in Australia asic.gov.au

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LEADERSHIP | WHISTLEBLOWING

Stronger legislation

Scene stealers Hollywood has told several hair-raising tales of whistleblowing recently. Dark Waters saw Mark Ruffalo play attorney Robert Bilott, who blew the lid off DuPont Chemical’s land contamination of West Virginia. Karim Amer and Jehan Noujaim exposed the murky world of Cambridge Analytica’s data manipulation for political gain in documentary The Great Hack. Adam Driver led the cast of procedural movie The Report, uncovering torture practices by American forces during the ‘war on terror’. And in Official Secrets, Keira Knightley played translator Katharine Gun, who revealed illegal spying by the US during the UN’s deliberations over the Iraq war. Pictured above: Keira Knightley attends the Official Secrets European Premiere Photo by Lia Toby/Getty Images

Trusted conversations are essential “If organisations are promoting a culture of whistleblowing, they are failing from the get go,” says Mansotte. “Yes, they will get a bunch of disclosures. But nowhere near what they should receive if only they moved away from the scary word which is ‘whistleblowing’. “If organisations promote a culture of ‘trusted conversations’, and enable anonymity through a secure, two-way communication platform, they will reap the benefit by empowering their people to come forward and engage in trusted conversations. Some of these conversations may well qualify as whistleblowing events by the organisations, but it should not feel that way to the individuals.” Can managers and leaders make the process easier by being more approachable? Mansotte is not convinced. “Let’s be clear, in the vast majority of cases, the well-written ‘open door policy’ and good intentions go out the window as soon as an individual fears the consequences of reporting any suspicion of misconduct or wrongdoing. “So even though it is a must to ‘walk the talk’ and promote a culture where individuals feel empowered to speak up without fear of retaliation or vilification, it is also a must to provide avenues that are supportive of this culture.” Mansotte believes this involves offering relevant reporting mechanisms that are secure and anonymous, and which allow for trusted conversations.

80%

whistleblowers face a backlash for speaking up (Griffith University)

Whistleblowers in Australia now have the benefit of enhanced protection under law. However, Mansotte is not persuaded this will help to remove the fear factor that whistleblowers often face. “Most whistleblowers don’t know they are whistleblowers until after the fact. And even if they knew about the legislation before coming forward, they would always have the fear that maybe because they work for a company headquartered overseas or because they are part-time, or whatever the case may be, they will never really know if they will be protected under the law.” That said, Mansotte believes legislation was needed to force organisations to do the right thing and implement the necessary tools and processes to enable more individuals to speak up. “My concern is that a lot of organisations believe the problem lies elsewhere. So they prefer to tick the compliance box by putting in place poor reporting mechanisms and policies and procedures that only their legal counsel can read. “Organisations can no longer afford to just tick that compliance box. There is a long period ahead of us to educate corporate Australia on the benefits of listening to its best asset – its people. By enabling anonymous, trusted conversations, organisations will not only comply with the law but also, most importantly, they will be able to address potential issues before they become a threat and damage their reputation, brand and financials. In addition, organisations will improve the engagement, retention and overall wellbeing of their employees.”

Award winning: Sylvain Mansotte was recently presented with an ANZLF Trans-Tasman Innovation & Growth Award by New Zealand Prime Minister Jacinda Ardern and Australia’s Minister for Trade, Tourism and Investment, Simon Birmingham.

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INSIGHT | THE CONVERSATION

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INSIGHT | THE CONVERSATION

BOUNDLESS

ENERGY

JASMIN CRAUFURD-HILL HAS HONED HER LEADERSHIP SKILLS IN NUCLEAR REACTORS, BUSHFIRE-STRICKEN COMMUNITIES AND PLENTY OF OTHER PLACES TOO.

irector. Consultant. Scientist. Researcher. Volunteer. Educator. Jasmin Craufurd-Hill FIML is a leader who wears many hats. Across all her roles, she applies the same clear-eyed focus on the big picture. As principal of Areté Assessments, she advises a range of organisations on knowledge management and strategy issues. As a nuclear safety professional, she has helped enhance international collaboration, security and diversity. And her long association with St John Ambulance has helped ensure high-quality health services are delivered to people in their most desperate hour. IML ANZ chief executive David Pich FIML caught up with Craufurd-Hill for a wide-ranging discussion about leadership.

Interview by DAVID PICH CMgr FIML Chief Executive IML ANZ

david pich:

jasmin craufurd-hill:

As a St John Ambulance volunteer, you were deployed to the South Coast of New South Wales during the recent bushfires. What did you see on the ground there?

I was there with my team looking after 3,500 evacuees alongside other agencies and voluntary organisations. I’d also previously staffed the Public Information and Inquiry Line. The devastation across the South Coast and Batemans Bay area was heartbreaking to witness. Stories were coming in of people fighting for their homes and their lives. Tragically, some people lost those fights. At one point in January the area was ringed by fire-fronts and communication lines went down for a while, leaving the community isolated and afraid. People were stretched emotionally, psychologically, physically and financially. And yet, in that dark, desperate time, something remarkable happened. Everyone looked out for each other. People shared their food. Children shared their toys. People even helped care for one another’s pets. There were 3,500 people in a very small space. Tempers could have frayed but instead the community just rose to the challenge together.

One leader, many roles Jasmin Craufurd-Hill’s areas of specialty include: • Education Postgrad lecturer in leadership, management and project management • Strategy and knowledge management Principal at Areté Assessments • National security Foundation Governor and Director of The Institute for Regional Security, a regional security think tank and research institute • Nuclear science Lead International Auditor and previous board member of Women in Nuclear, a global professional association of more than 35,000 women working professionally in nuclear technology and radiation applications • Mental health Director of Mind Blank, an award-winning charity focused on generating awareness and innovative education of mental health topics for young people across Australia • Emergency Services Management and senior advisory roles for St John Ambulance Australia for more than a decade.

LEADERSHIP MATTERS

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LEADERSHIP IN

INSIGHT | THE CONVERSATION

seconds

FACEBOOK TWITTER, INSTAGRAM OR LINKEDIN? All of the above but I’m most active on Twitter. @jasminchill PHONE, EMAIL OR FACE TO FACE? Face to face. WHICH LEADER IN ANY WALK OF LIFE DO YOU ADMIRE, AND WHY? I admire many emergency services leaders and the topical one at the moment would have to be RFS NSW Commissioner, Shane Fitzsimmons. During the bushfires, he’s been front and centre. He’s been incredibly frank and honest, when required. In an era when people are sceptical and distrusting of institutions, he has cut through because of his honesty, integrity and consistency. WHAT IS THE BEST BOOK YOU’VE READ ABOUT LEADERSHIP? Drive by Daniel Pink, which challenges conventional motivational models and explores how autonomy, rather than money, makes the most difference to people. IF YOU COULD CHANGE ONE THING ABOUT CONTEMPORARY LEADERSHIP, WHAT WOULD IT BE? I’d change two interrelated things: Our gadget addiction and the ‘cult of busy’. Both drive a very unhealthy culture. Being busy has (misguidedly) become synonymous with your status and how good you are. WHICH THREE LEADERS FROM PRESENT DAY OR HISTORY WOULD YOU INVITE TO A DINNER PARTY? Astronaut and Apollo 13 commander Jim Lovell. He’d have some fascinating stories. Writer and comedian Stephen Fry, because he’s Stephen Fry. And Marie Curie. She was a double Nobel Laureate and a trailblazer, of course. But I’d be most interested to hear about the challenges she overcame, the personal scrutiny she endured, and the demands she received to constantly justify herself. IF YOU COULD GIVE ONE PIECE OF ADVICE TO YOUR 18-YEAR-OLD SELF, WHAT WOULD IT BE? Learn to say no. If you’re strategic, you will do and achieve more when you say ‘no’ sometimes. COMPLETE THIS SENTENCE: LEADERSHIP MATTERS BECAUSE… … we owe it to our followers to get it right.

IF YOU LOOK AT THE REALLY BIG PIECES IN THE PUZZLE, THEN INDUSTRY LEADERS HAVE HUGE INFLUENCE OVER OUR ENERGY FUTURE. dp: Stories of hope and perseverance got a little drowned out in the media coverage of the bushfires. But those small acts of humanity can make such a big difference, can’t they. jch: They really can. I met a science teacher who had lost 1,500 books, acquired over his lifetime. Books that he used to mentor his students. I was able to spend time with him and talk about science. A few days later, I saw him and he said, ‘That chat helped me keep going and see a way forward’. So I said, ‘Well can I give you some books? Can I put together a collection?’ Just something as simple as that can mean the world when everything else has been lost. dp: Do you think your voluntary work has helped you professionally? jch: Without a doubt. The leadership skills you develop through your lifetime aren’t just developed in the workplace. You pick them up in everything you do. I think the barriers between home life, community life and work life have come down now – in a positive way. dp: I’ve certainly noticed that as President of the Parents & Citizens Association at my children’s school. I sometimes sit there and think, ‘Everything I’m learning here is so applicable to my job. I might be talking with kids or teachers or parents but it’s basically still management and leadership’. jch: Yes, and as leaders we don’t just have a responsibility to bring our ‘whole selves’ to work. We also have a responsibility to see other people that way too. For example, a parent who has taken time off work to raise a family can offer an employer a whole range of transferable skills: Problem solving. Time management. Budget supervision. Even conflict resolution! The same

goes for the many thousands of people with other caring responsibilities outside of work. No human being is one dimensional. We each play many roles in our lives. The best managers and leaders recognise that, see people’s potential and empower them to express their talents. dp: Changing tack now, you first worked in the nuclear industry in 2002 and you’ve continued to be involved, in various roles, ever since. What first led you to work in that area? jch: My background is physics but I became a nuclear scientist almost by accident. I did an internship and then, like so many women before and after me, my career moved diagonally. I accepted a series of interesting job offers and eventually became the first Australian woman to both commission and operate a nuclear facility. I remained in the nuclear sector for a decade and a half, not just in operations but in research too. dp: The science and engineering fields are typically dominated by men. Was that the same in the nuclear sector? jch: Traditionally it was but that’s changing. Nuclear technology is genuinely cutting edge and it constantly requires new solutions and fresh perspectives. For that reason, diversity of thought isn’t just a ‘tick the box’ issue. Employers now realise their organisations will be stronger with a diverse workforce. dp: Australia’s energy future is a divisive issue, with endless arguments and counter-arguments over fossil fuels and renewables. Meanwhile, nuclear power stations remain prohibited in Australia. What is your view on how leaders, on all sides of politics, are approaching the challenge of our energy future?

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INSIGHT | THE CONVERSATION

jch: Many leaders in Australia and overseas are failing to look at all the available options. Every alternative should be considered because there is no silver bullet. If there was, we would have solved the challenge by now. Many leaders have a limited field of vision when they look at ‘energy’. They only consider basic power generation, but that’s only part of the picture. How about power usage and fuel for example? How might we get better at that? Research in the US suggests they could cut 10% through more eﬃcient freight networks and aerodynamic truck designs. We really need our leaders to take the emotion out of the debate and look at the challenge holistically. dp: That’s interesting you say that because, when you think holistically like that, it’s not just our elected leaders who have responsibilities here. jch: Yes, if you look at the really big pieces in the puzzle, then industry leaders have huge influence over our energy future. Regulation and incentives from government can help, of course. But business leaders need to think about how they change behaviours and practices in their organisations. Beyond corporate social responsibility, there are obvious financial benefits to managing energy consumption, for example. dp: Given your scientific background, are you frustrated by the political debate over energy? jch: Frustrated yes, but not disheartened. You can either crawl under a blanket and hope the problem goes away – which it won’t – or you can contribute

to a more sensible discourse. The energy debate has become an antagonistic battle between left and right, with neither side really listening to the other. But opinion doesn’t trump evidence. That’s why, a few years ago, I helped launch the Respect the Science campaign by Science and Technology Australia. Instead of attacking the evidence and the experts, we should be listening to them and then constructively challenging policies. As a society, we seem to have lost the ability to discuss our opinions without it becoming personal. As leaders, one of the most important things we should teach people is that, if someone challenges your opinion, they aren’t challenging

your worth as a human being. If we cling tightly to our opinions, then we’re not going to learn. dp: Given your assessment of the current political discourse, do you feel pessimistic about the future? jch: Actually, when I look at the next generation of leaders coming through, I feel optimistic. I reject the stereotype about young people being selfabsorbed and apathetic. What I’m seeing is a cohort of leaders coming through who are identifying with their communities and eager to contribute to positive change. For example, volunteering rates among Australia’s young people are increasing. I’m deeply encouraged by that.

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LEADERSHIP | TECHNOLOGY

BRING YOUR PEOPLE TOO 22

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LEADERSHIP | TECHNOLOGY

MANAGERS AND LEADERS MUST SEIZE THE OPPORTUNITIES OF ARTIFICIAL INTELLIGENCE AND AUTOMATION – AND BRING THEIR PEOPLE WITH THEM. LEADERSHIP MATTERS INVESTIGATES HOW.

t’s no secret that digital transformation is changing our world, our workplaces, and the way we do business. But despite this, many Australian leaders are yet to embrace the opportunities offered by artificial intelligence (AI) and automation. Recent research by Microsoft and IDC/Asia-Pacific found Australian organisations are generally reluctant to invest heavily in AI and automation. They also lack the skills and leadership to fully harness the technology.

Automation is already here

ARTICLE BY NICOLA FIELD Journalist

Automation is the replacement of human labour by machines – and there’s nothing new about that. If you think about it, it already pervades our lives. A simple international flight could see you check-in at an automated airport kiosk and have your passport scanned by a machine rather than reviewed by a border official. Even the pilot is only likely to actively have their hands on the control column for a few minutes of the total flight. AI is harder to define. What we see around us today is referred to as ‘narrow’ AI – intelligent systems that have been taught to carry out specific tasks without explicitly being programmed how to do so. A simple example would be the language recognition available with Siri, the virtual assistant on iPhones.

In the business environment, AI is being used to expedite customer service (e.g. chatbots offering real-time support on websites), optimise logistics (e.g. suggesting the fastest transport routes based on live data), and prevent fraud (e.g. using algorithms to detect unusual spending behaviour on a credit card). But all that is just scratching the surface of what automation and AI could do.

Big potential, small take-up A wealth of research demonstrates that automation and AI offer extraordinary potential for business leaders. According to a study by Accenture, AI could boost many organisations’ profitability by 38% by 2035. Microsoft’s recent report Future Ready Business: Assessing Asia Paciﬁc’s Growth Potential Through AI, found 80% of Australian business leaders believe AI could see employee productivity increase 1.6 times. Yet despite the potential gains, Microsoft’s study also noted that Australia lags behind the AsiaPacific region when it comes to AI capabilities and strategy. Only 14% of local organisations have adopted AI as a core part of their business strategy, according to Microsoft. The reasons for leaders’ reluctance are many and varied.

LEADERSHIP MATTERS

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LEADERSHIP | TECHNOLOGY

25-46%

of current work activities in Australia could be automated by 2030 (McKinsey)

But one of them may simply be fear. For all the data on positive impacts, there are also some unnerving predictions. A McKinsey study found automation technology can already match, or even exceed, the median level of human performance in many activities. Deloitte Access Economics estimates that over the next 10 to 15 years, around 40% of Australian jobs have a “high probability” of being automated. Even activities consuming more than 20% of today’s CEOs’ working time could be automated using current technologies. Faced with such findings, it’s perhaps understandable that some leaders and managers are daunted by automation and AI. But there’s more to their reluctance than simply fear. Microsoft found that the lack of adoption of AI in Australia essentially boils down to three main factors: Lack of skills and resources (cited by 28% of respondents); lack of leadership commitment to invest (25%) and a lack of adequate infrastructure and tools (12%).

WHERE NEW TECHNOLOGIES DO TAKE EFFECT THEY GENERALLY CREATE AS MANY JOBS AS THEY KILL. 24

Kylie Watson FIML

Commit to lifelong learning Change is often hard to navigate. And when it comes to technology, change is occurring at an escalating pace. Kylie Watson FIML, Partner in Risk Advisory for Data and Technology at Deloitte, says, “One of the challenges I see is so many effective and smart new AI technologies are being introduced. Our teams need to continually learn what these are, what they’re trying to solve, how they will help our clients, and then know the technological detail of them – such as how they integrate with existing technologies.” Watson explains that, when her teams learn one technology it quickly evolves – or another comes along – which means her staff need to upskill again. “My teams are continually learning both on the job and online,” says Watson. “It’s the same for our clients – and part of the challenge is that their executives and managers don’t always

understand what skills are needed for AI adoption, and are unsure what training experiences their people need.” Watson admits that it can be hard for leaders and managers to sign off on training programs they don’t understand themselves. But she says the ability to navigate automation and AI is “really about having to embrace and sustain the idea of lifelong learning in your organisation.” She adds, “I have multiple degrees and I’m studying another Master’s degree as I want to make sure I am at the forefront of disruption. I have some people on my team without a single degree but they have a lot of ICT certifications and qualifications. Others absorb every technology podcast they can find.” David Banger, digital adviser, author and founder of CHANGE lead – Practical Digital®, says the demands on leaders and managers are unprecedented: “The volume of work is growing, complexity is increasing and digital is confusing.

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LEADERSHIP | TECHNOLOGY

14% Only 14% of Australian organisations have adopted AI as a core part of their business strategy (Microsoft)

David Banger

And while there is no shortage of research confirming the merits of embracing digital transformation, it can be expensive.” Like Watson, Banger believes that a big step in managing automation and AI lies with learning and relearning. “It’s not always about embracing change, but rather being open to learning. Learning is more important than knowing. Many leaders have a fear of new technology, but organisations must maintain an open mindset rather than simply maintaining the status quo.” For managers and leaders, it’s important to reflect on your own mindset. Banger notes that some leaders may have what he describes as an “undertaking mindset”. This is where traditional reactive work is undertaken, for example a lot of paper processing. “They do the work and possibly don’t think sufficiently about how the work could evolve,” says Banger.

“This undertaking type of work needs to be analysed, eliminated, integrated or automated. Otherwise it will hold the organisation back.” Banger says other leaders can be identified as “the lounge” group, typically those with long tenure in an organisation or industry, who are potentially subject matter experts in an organisation. He notes, “To avoid change, many of these leaders try to rationalise what they’re doing and why it will continue to be successful, often seeking a collective consensus from other, similar leaders. These people are like the antibodies that alienate change and stop the organisation evolving.”

Recruit open minds While it’s important for leaders to maintain an open mind about new technologies, this may not come naturally for some team members. “Some people thrive in this environment [of continual change] but others can easily be exhausted or intimidated,” says Watson.

“It’s about hiring for mindset over existing skills. The rapid pace of the technological change means those with open and flexible mindsets and a willingness to learn can be critical to accelerating adoption. “The key to success is to look for curious, motivated, hungry people, who like to challenge ideas and see the learning curve as an adventure.” According to David Banger, success can also lie in bringing workplace generations together. “Part of the move to digital transformation is to connect each of the generations across the organisation that are open to learning and thinking about how they could use AI and automation within the organisation.”

Provide space – and incentives – to adapt Another blocker that Watson observes is what she refers to as “short termism” and the struggle to develop effective strategies that harness the potential of automation and AI.

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LEADERSHIP | TECHNOLOGY

Thank you to Zane West CMgr FIML for suggesting Leadership Matters explores digitisation and behavioural change

She explains, “Only a fifth of executives agree they are completely ready. Organisations with dedicated AI and Industry 4.0 strategies are performing well, while others lag behind. There are quite a few organisational technology strategies but they don’t pull out AI specifically with a clear action plan for exploration and adoption.” One way to address this, according to Watson, is to provide incentives to adopt technologies and explore new ideas. Banger goes a step further. “Disruption occurs when organisations and industries haven’t innovated. So if you’re not seeing a lot of innovation within the organisation, it’s more likely you’ll be disrupted. That makes it important to set the conditions for innovation.” He advises that this can be done with practical tactics involving employees who can offer insights that can help the organisation evolve. “We want people to add value. But job descriptions often cover a large range of responsibilities,” says Banger. “We need to think differently, to rationalise employees’ activities so they have more time for broader initiatives.” Banger recommends, “Assess what your peers are doing and what it means for their organisations. Not all people will be innate innovators, but leaders need to focus on areas where people could initially innovate. Consider where they could innovate; simplifying tasks, process

FURTHER RESOURCES 26

BOOK Digital is Everyone’s Business: A Guide to Transition by David Banger davidbanger.com

consistency, assessing data for insights. Coordinate these focus areas with external partners and other employee groups of the organisation to build a community of innovators.”

Addressing the risks Taking advantage of new technologies can make good business sense. But it pays to take an informed approach. PwC’s 2020 AI Predictions report, which surveyed 1,062 executives at US companies currently investigating or implementing artificial intelligence initiatives, found that just 4% are planning to roll out AI enterprisewide in 2020. It’s a steep drop from the previous year, when 20% reported such plans. The reason for this reality check is that business leaders realise they need to focus on AI fundamentals – and this includes possible downsides, before expanding these initiatives across the business.

Banger advises, “Consider the controls in place to mitigate risks [from AI and automation] occurring in your business. This involves building risk capability across the employees of an organisation so they can use good judgement prior to committing to a course of action, reducing the dependency on a risk department. Employees need to understand the risks.”

The future of work is human While alarmists in the media are quick to emphasise the potential downsides and challenges of automation and AI, Watson firmly believes that “the future of work is actually human”. Yes, some jobs may be lost, but as Watson points out, “Where new technologies do take effect they generally create as many jobs as they kill. For every problem there is a job, and we’re not running out of problems to solve. The boring repetitive jobs will be done by machines/robots, leaving more challenging – and interesting – stuff for humans.”

ORGANISATIONS WITH DEDICATED AI AND INDUSTRY 4.0 STRATEGIES ARE PERFORMING WELL, WHILE OTHERS LAG BEHIND. TED TALK What does AI mean to leadership? by Dr Milo Jones, Visiting Professor at Madrid’s IE Business School youtube.com

LEADERSHIP MATTERS See page 48 for a handpicked selection of AI resources for managers and leaders

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LEADERSHIP | POWER

Warning signs: your leader might be

drunk on power T

ARTICLE BY MICHELLE GIBBINGS CMgr FIML Author and workplace expert

he negative impacts that can arise when a person experiences power have long been documented, with instances throughout history – the recent case of Harvey Weinstein being one example. Dacher Keltner, from Berkley University, found through his research that people who feel

powerful are more likely to act impulsively. He writes in his book, The Power Paradox, that power is something a person acquires by improving the lives of those around them. Therefore, he concludes, power is granted or bestowed by others. Over time however; by behaving badly, that person loses power.

WHEN YOU START TO THINK YOU ARE THE SMARTEST PERSON IN THE ROOM, IT’S TIME TO FIND ANOTHER ROOM Power is bestowed Dacher Keltner in his book, The Power Paradox, writes that power is something we acquire by improving the lives of other people in our social network. In this way, power is granted to us by others. His research has found that people who feel powerful are more likely to act impulsively. For example they have affairs, drive aggressively, communicate in rude or disrespectful ways, or lie. However, he notes that often this very experience of power destroys the skills that gave leaders the power in the first place.

Organisational hierarchies are the very definition of power structures. The further up you are on the totem pole the more power you have. The danger for organisations is how this impacts decision-making. Research shows that humans are often overconfident in their belief about their abilities. It’s one of the many brain-based biases that exist. The problem is that it’s worse the further up the food chain you go. A 2010 study by the University of Southern California and London Business School, Power and over confident decision-making, found there’s a correlation between overconfidence and how much power an individual has. The more power a person feels, the more confident they are of the accuracy of their thoughts and beliefs. This means people in powerful positions are more confident that their opinions are right. For leaders who are being charged with solving complex problems and making difficult decisions, being overly confident may result in them failing to heed advice or look for alternative opinions. In turn, leading to ineffective decision-making.

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LEADERSHIP | POWER

Read the signs US

$50m

In 2000, Blockbuster’s overconfident management turned down a deal to purchase Netflix for US$50 million. Today, Netflix is worth more than US$25 billion (McKinsey Quarterly, 2015)

It’s important for leaders to be alert to the warning signs that power is negatively impacting how they think and behave.

Here’s four warning signs to consider:

The leader thinks their rights and needs outweigh those of others and so their decisionmaking is all about what works best for them

The leader stops listening to the ideas and opinions of others, believing that their knowledge and insights hold more weight and value than others

They ignore feedback from people seeing it as unhelpful and irrelevant, rather than reflecting on what is driving the feedback and what they may want to adjust to be more effective They believe they are smarter than others and have little more to learn, and so they stop seeking out new ideas and diversity of thought

Remember, when you start to think you are the smartest person in the room, it’s time to find another room.

Balancing act In political and diplomatic circles, the concept of a ‘balance of power’ is used and it proposes that outcomes are enhanced when no single nation is so powerful they are able to dominate world affairs. This concept is based on the understanding that power in the hands of the few isn’t healthy. It equally applies in the workplace. To have a healthy, thriving work environment it’s essential to have a balance of power. In a work context, this means a culture where power is shared and distributed, and no individual leader dominates over everyone else.

How to react The action to take if you see these warning signs in your boss depends on your relationship with them. If they have a growth mindset and are open to feedback, it can start with a conversation about how you are working together. Encourage them to focus on how the team works together, as healthy team dynamics can dilute any detrimental impact.

If they have a fixed mindset and are therefore closed to feedback, then you should seek to find a way to work around them and to ensure that their behaviour doesn’t rub off on you. In this situation it’s important to have a network of colleagues and others around you who will support you. Often those of us who work with powerful people will inadvertently absorb similar behavioural traits. Be open to creating the right culture by: • Not surrounding yourself with sycophants • Being open to challenge and constructive debate • Creating open and transparent decision-making processes, which enable people to be involved • Owning your mistakes – seeking feedback and making amends. Abraham Lincoln said: “Nearly all men can stand adversity, but if you want to test a man’s character, give him power”. (Of course, I’m sure if he was writing that today he’d use gender neutral language). Those words still ring true in today’s working environment. When you know the warning signs of overconfidence, you can be a better leader – and help others be the best leaders that they can be too.

TO HAVE A HEALTHY, THRIVING WORK ENVIRONMENT IT’S ESSENTIAL TO HAVE A BALANCE OF POWER.

FURTHER RESOURCES

BOOK Michelle Gibbings’s new book is Bad Boss: What to Do if You Work for One, or Are One michellegibbings.com

WEBINAR Tips on how to become a positive leader iml.click/PositiveLeadership LM2020

PODCAST Episode seven of Dear HBR answers reader questions about handling bad bosses. hbr.org/podcasts

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LEADERSHIP | CASE STUDY

IF YOU DONâ&#x20AC;&#x2122;T DARE TO DISRUPT YOUR OWN BUSINESS, SOMEONE ELSE WILL 30

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LEADERSHIP | CASE STUDY

Traversing the mighty

Amazon

GLOBAL BUSINESS ADVISER, DR RAM CHARAN SPEAKS TO LEADERSHIP MATTERS ABOUT THE SECRETS BEHIND RETAIL GIANT AMAZON’S SUCCESS

ARTICLE BY DEREK PARKER Journalist

n his new book, The Amazon Management System, author and consultant Dr Ram Charan and co-author Julia Yang provide a crucial anecdote. In a meeting of senior managers, Amazon founder and CEO Jeff Bezos asked how long it took the call centre to respond to a call. He was told one minute. He then called the centre, using the speakerphone. The one-minute mark passed. Two minutes. Three. Eventually the call was answered – after 270 seconds. A failure in process that had to be addressed.

To some, this might seem like a waste of time for the executives of a trillion-dollar company. But Dr Charan says that Bezos was making two essential points: that serving customers in the best possible way was the key to Amazon’s success; and that no task or operation of the company was beneath the attention of senior managers. “The Amazon Management System is designed for speed, agility, and scale,” says Dr Charan. “The technology is important but it is the management system that is critical. It has proven to be a winning formula to thrive in the digital age. “The research for the book was based on public sources, interviews of past and current Amazon executives, and cross-checking of facts. Some of the Amazon tools and best practices introduced to our clients have proven very useful and effective.” Bezos himself has been very willing to explain the company’s strategy. Since 1997, he has provided an annual letter to shareholders which sets out Amazon’s goals, approach and methodology.

Building blocks A customer-obsessed business model is the foundational building block of Amazon’s operations, with the aim of collecting data to provide each customer with a personalised experience. Many traditional companies are competition-centric, and use quarterly financial results as a measure of success. Amazon’s strategy is to focus on the long term, continually expanding and seeking to respond automatically to market changes. It has been able to deliver increasing cash flows and high returns on investment. Another building block is to not only recruit the best people but also to continually raise the expectations on them. The talent pool is carefully defined and documented, and every interview panel includes a person designated as a ‘bar-raiser’. Their task is to ensure that the hire is a fit for Amazon’s culture of constant improvement. Performance bonuses are weighted towards share options rather than cash, which encourages employees to think like owners. “Writing ability is also tested at the recruitment stage,” says Dr Charan. “The point is not so much as to test writing as to test thinking.

The company wants people who can think clearly, show imagination, and communicate directly.” Being born as a digital company, Amazon has not had to overcome the silos and legacy issues faced by traditional companies. But very few digital-born companies have gone as far as Amazon in using artificial intelligence to power a real-time system of metrics and data analysis. This allows for a crossdepartment, input-oriented base of information. Every metric is ‘owned’ by an individual, who is responsible for tracking anomalies and fixing problems. There is an emphasis on system-wide transparency to ensure that information can reach the people who need it, with minimal layers of bureaucracy.

Dare to disrupt Dr Charan identifies as a fourth building block a system for constant invention, rather than the focus on core competencies often practised by large companies. But he points out that invention is not pursued for its own sake. Amazon starts with anticipated customer needs and works backwards.

LEADERSHIP MATTERS

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LEADERSHIP | CASE STUDY

Amazon reported: US$232.9 billion revenue; US$200 billion in sales; profit US$10.1 billion. (2018, most recent full year available)

An illustrative case was the development of the Kindle e-reader, which was introduced even though the company was aware that it would dramatically reduce Amazon’s own sales of hard-copy books. This was pushed by Bezos personally, and the decision puzzled many people. Dr Charan provides the answer: because Bezos realised that if you don’t dare to disrupt your own business, someone else will. A significant part of constant invention is the acceptance that some inventions will fail. Dr Charan supplies a long list of Amazon ideas that did not go anywhere. The point, however, is that enough ideas will succeed, and will move the company forward. When it comes to making decisions, Amazon is able to act quickly. The process follows a set of clear principles which are enforced consistently across the company. Bezos has also fostered a culture of ‘disagree and commit’, meaning that all dissenting views

are heard but once a decision is made everyone gets behind it. The lack of bureaucracy in the process also means that quick mid-course corrections can be implemented if needed.

Day-1 The final building block is what the company calls Forever Day-1. The idea is to combine the speed and agility of a start-up with the capital, reach and other advantages of a large company. This is enforced by strict resource constraints, very few administrative layers, rewards for innovation and frugality, and, of course, an emphasis on customer service. Dr Charan sees lessons in the Amazon model that can be applied by other companies but he does not endorse attempts to blindly replicate it. In particular, Amazon’s policy of not paying dividends, instead ploughing all profits back into the company, only works because of high cash flow and capacity for continual expansion.

Dr Charan believes that the Amazon model will continue even when Bezos departs, as it is now entrenched in the company’s DNA and reinforced by a highly competent board. He predicts that Bezos could leave the company within a few years. “We know only too well, from decades of consulting practice, that what really matters is the fit,” he says. “The Amazon Management System works because it fits the values, principles, and styles of Jeff Bezos and his core team, as well as the nature of Amazon’s platform and infrastructure business. Amazon’s experience offers important lessons but you also have to ask: what fits you and your business best? No-one has the perfect answer. You will have to experiment, iterate and invent your own.”

VERY FEW DIGITAL-BORN COMPANIES HAVE GONE AS FAR AS AMAZON IN USING ARTIFICIAL INTELLIGENCE FURTHER RESOURCES The Amazon Management System: The Ultimate Digital Business Engine That Creates Extraordinary Value for Both Customers and Shareholders, by Ram Charan and Julia Yang (Ideapress) is available now from amazon.com and booktopia.com.au

Other books by Ram Charan include Execution: The Discipline of Getting Things Done; The Attacker’s Advantage; The Leadership Pipeline; Talent Wins; The High-Potential Leader ram-charan.com/books

IML ANZ Members enjoy free access to Ram Charan’s e-book Leaders at All Levels: Deepening Your Talent Pool to Solve the Succession Crisis iml.click/RamCharan

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LEADERSHIP | CAREERS

shift STAYING IN A JOB THAT YOU DONâ&#x20AC;&#x2122;T LIKE CAN BE A SOURCE OF STRESS, WORRY, AND EVENTUAL BURN-OUT.

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LEADERSHIP | CAREERS

ARTICLE BY DEREK PARKER Journalist

62%

of Australian workers feel they are not reaching their full potential (SEEK Australia)

58%

of Australian workers have made a career change at some point in their working life (SEEK Australia)

MANY MANAGERS AND LEADERS DREAM OF SWITCHING CAREERS, AND THE GOOD NEWS IS THAT IT’S PERFECTLY POSSIBLE WITH THE RIGHT PLAN IN PLACE. THAT STARTS WITH CONSIDERING YOUR SENSE OF IDENTITY, DEFINING YOUR IDEAL JOB, ASSESSING RISKS, AND FILLING SKILLS GAPS.

ork takes up a major part of our lives, but a surprising number of us are dissatisfied with what we do to earn our daily bread. Fifty-seven per cent of Australian workers feel ‘stuck’ in their jobs and a similar number are considering a major change of career, according to independent survey data commissioned by placement firm SEEK. “According to our data, 58% of Australian workers have made a career change at some point in their working life. It happens at every stage but there are some differences between generations,” says Sarah Macartney, Head of Corporate Affairs at SEEK. “Three-quarters of people aged 55-64 are more likely to have made a career change at some point in their working life than

people aged 18-54, which is a bit over half.” She notes that the reasons for making a change vary but some of the most common motivators include a better work-life balance (18%), desire for a new challenge (11%), pursuing a passion (10%), and wanting something more fulfilling (7%). The last one is a more popular reason within the 35-64 age bracket (10%) than 18-24 year olds (2%). Staying in a job that you don’t like can be a source of stress, worry, and eventual burn-out. But even as career changes for senior people become more common, no-one says it is easy. Making a successful transition requires planning, preparation, and support. In short, you have to know what you are in for.

“Fear of the unknown” and “financial issues” are the most common reasons Australians do not make a career transition (SEEK Australia) LEADERSHIP MATTERS

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LEADERSHIP | CAREERS

IN MOST CASES, A CAREER CHANGE MEANS A DROP IN INCOME, AT LEAST TEMPORARILY.

CHANGING YOUR IDENTITY A dose of self-assessment is a necessary place to begin. Establish exactly why you are dissatisfied and what sort of work might be better. This can involve talking to mentors, advisers, and, if possible, people who have made successful transitions. Linda Jeffrey, a career consultant and professional member of the Career Development Association of Australia, notes that personal identity is often closely linked with one’s job, so making a change can raise significant psychological issues, particularly when change is not through choice. “It is important that this stress is acknowledged and that individuals have access to effective support,” she says. “There can be a sense of loss of control of your life at a time when you have previously felt successful and quite confident in your future. “There can also be concern that being middle-aged or older will be a barrier to finding a new role or direction. This may sometimes be the case, but there are also barriers for younger people, based on their limited experience. So, you should

focus on what you have to offer rather than how old you are.” She believes that creating a good CV is a fundamental preparation for change. In fact, it’s as valuable to the individual as it is to a prospective employer. The drafting process gives the individual an objective view of what they have to offer in terms of transferable skills, strengths and experience, and highlights areas where they need to upskill. Knowing your strengths and weaknesses is particularly important for C-suite leaders who are considering taking up a board position or a consulting role. Handson management is very different to strategic policymaking and executive oversight. Self-assessment was crucial to Tamsin Garrod, who moved from a role as a medical researcher in a laboratory to a healthcare management position. “I have huge respect for researchers but it became clear to me that my passions, skillset and personality did not align with the job. I am driven by working with people and I feel energised when I interact with others,” she says. “Once I had defined my ideal role,

I identified areas where I required development to succeed in a career transition. For me, it was increasing my understanding of business processes and governance, and further developing my knowledge of people management. I upskilled by completing an MBA, which really helped underpin my progression. Professional development is key in a successful transition. “I also set a specific end date for my previous role and informed my manager of my decision to change career. I spoke to a number of people who had experienced similar changes, and they confirmed that making the leap is much harder while remaining in your current role. It can reduce your level of motivation and commitment in seeking the new role.”

DO YOUR RESEARCH Once the decision to move has been made, develop a list of options for change. Speaking to someone who is already working in the area that you would like to move into can help in understanding exactly what the job entails, including the amount of paperwork and the prospects of advancement.

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LEADERSHIP | CAREERS

Those who keep their day jobs while starting their own business are 33% more likely to succeed than those who leap in directly (Academy of Management)

If you are moving into a completely new area of work, find out what sort of training and reskilling might be needed. If it means going back to university or a college course, be prepared to be in class with younger people. In most cases, a career change means a drop in income, at least temporarily. This means that a thorough review of your financial situation is necessary, as well as discussions with family members and others who might be affected. A crucial question is: is the reduced income something that can be compensated by improved work satisfaction or work-life balance? Macartney acknowledges that financial issues inhibit many people from making a career change. But she advises that there are proactive things that can be done, such as drawing up a budget, cutting back on spending, and using annual leave while looking for suitable jobs in the industry, sector or company you want to work for. Any change involves risk, and that has to be weighed against the stability of a regular salary. A reduction in income can itself be stressful, so make sure that the overall equation adds up. In other words, know that you are not trading one type of stress for another.

FLYING SOLO The option of leaving corporate life to set up or participate in a small business or a start-up is an idea that many leaders find appealing. But

Alan Manly FIML, who left an IT role to take up a partnership in a tech start-up, warns that it requires careful consideration. “If you want to follow the entrepreneurial route, dream up an idea and do a business plan,” he says. “That brings the dream back to practicality. And then when every detail is covered, double the time to be profitable, double the investment required, and allow twice the work and hours needed. That is a good start.” After being successful with the startup, Manly then made another career change, when he took up a position as a partner in a private computer programming college. “In my case, my previous skills were transferable. I was experienced in a service industry after years in the computer industry working in post-sales marketing. Education is a service industry, so it was very similar. I had already taken a wage drop when joining the startup, so taking on the computer college role was another step in that journey.” Another issue to consider, if you decide to operate as a sole-person business, is social isolation. Many people in corporate roles become used to having people around them, and are familiar with the social life that is a part of many workplaces. Working by yourself means that that aspect of community, and the company of colleagues, no longer exists. So before taking the oneperson-band route, ensure that there is an alternative network of personal

support. It might be family, friends, or peers in similar circumstances, but there needs to be a sense of ongoing connection.

EMPLOYER PERSPECTIVE It is important to know that making a career change does not prevent you from being hired, according to Macartney. “If anything, the majority of employers look favourably upon those making a switch because they believe these individuals will be more motivated to learn and are more likely to succeed in their new role,” she notes. “Our survey asked people on the hiring side if they would consider hiring someone who had recently changed careers. More than four in five said they would.” Tamsin Garrod advises that, when applying for a new job, candour is the best option. Highlighting the positive lessons from your previous role but also clearly stating the reasons for the change reassures a potential employer that you are committed to making the transition. Pointing to any skills that are transferable is an aspect that is also likely to persuade prospective employers. Macartney agrees, emphasising the need for a solid plan. “Talk to a careers professional, keep your expectations realistic, consider all your options, and think holistically,” she says. “Then, when you’re ready, just do it.”

BOOK

PODCAST

WEBINAR

TOOLS

The Unlikely Entrepreneur by Alan Manly alanmanly.com.au

In his Career Relaunch podcast, Joseph Liu interviews people who have reinvented their careers josephliu.co

Learn five ways to build your self-awareness iml.click/ SelfAwareness2020

A suite of diagnostic tools to identify your strengths and weaknesses iml.click/ PeopleAnalyticsLM2020 LEADERSHIP MATTERS

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CASE STUDY | COLLABORATION

A new leaf

CROSS-POLLINATION ISN’T JUST FOR PLANTS, IT ALSO NURTURES BETTER IDEAS, TEAMS AND LEADERS.

ARTICLE BY ANTHONY O’BRIEN Journalist

n May 2016 DuPont Pioneer announced an agreement for Philip Yates Family Holdings Limited (PYFH) to acquire its Pioneer Australia Seeds (PAS) business. This acquisition included the production, sales, marketing and distribution of the Pioneer® brand, one of Australia’s most prominent producers and distributors of corn, sorghum, summer forage and canola seeds, and silage inoculant products to farmers in Australia. As part of the new ownership arrangement, GenTech Seeds Pty Ltd was formed and is now the exclusive producer and distributor of Pioneer® brand products in Australia. They have extensive research facilities in Toowoomba, Queensland as well as locations across southern Australia. There is also a manufacturing plant in Narromine in Central NSW, where seeds are cleaned, treated, sized and bagged. The rapidly expanding firm employs a national staff of 90, including a team of sales managers located all over Australia.

Identifying and training new leaders

Annual revenues from Australia’s seed production industry are around

A$484.3m (IBISWorld)

To support the business growth of GenTech Seeds, the firm recently launched a talent development program. “One aspect of this program was to further develop the leadership skills of our new and emerging leaders,” says Melanie McGrath, National HR & HSE Manager, GenTech Seeds. “We wanted to give them insights and self-awareness of their current leadership skills, tools for developing themselves as leaders, as well as frameworks for leading and managing others.”

Given the logistics and expense of gathering its geographically scattered team into one location, McGrath determined the course had to have a healthy ROI and be transferable to the workplace. “The course needed to be highly relevant and practical, but also have specific and measurable activities that would embed the learning back in the workplace.”

Strong foundations After an extensive review of providers, McGrath chose IML ANZ because its Foundations Program could be adapted to suit GenTech’s timing and the geographical spread of its employees. The Foundations Program is a 12-week development program that uses a blended methodology with face-to-face days, coaching, mentoring and online learning. The Foundations Program supports the transformation of emerging leaders from technical specialists to impactful management professionals and intentional leaders. Available to seasoned supervisors, newly promoted managers or mid-career leaders, the program aims to develop techniques that enable course

participants to lead productive, motivated and engaged teams. McGrath said the ability to customise the Foundations Program was a significant appeal. “We didn’t have to join a public group, and IML ANZ came to us in Toowoomba, and our interstate people flew in from all over Australia and had a couple of days onsite. We completed the training in three sessions over three months; August, September, October last year.”

Identifying future leaders and their needs McGrath said that within the company’s talent development program, managers fell into two broad categories. “There were a few existing managers with some targeted areas that they could work on,” McGrath recalls. “Then there was also an extensive group of people who were new to managing people, new to the company or had the potential to become a new manager.” Apart from leadership development, McGrath said the IML ANZ program aimed to enable participants to have self-awareness of their skillsets and to hone their

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CASE STUDY | COLLABORATION

ONE OF THE OUTCOMES OF THE FOUNDATIONS PROGRAM WAS FOR MORE COLLABORATION BETWEEN PEOPLE FROM DISTRIBUTION, PRODUCTION, SALES, FINANCE, IT AND RESEARCH. emotional intelligence. “Our participants undertook surveys to determine how their colleagues saw them in relation to their skillsets, which gave us a starting point for the training.” McGrath continues, “From a senior management perspective, we wanted to equip our future managers with the tools where they could say to themselves, ‘I could use a team agreement and mission statement to enhance team efficiency and direction’. The skills needed to be relevant and transferable.” For example, several agronomists who were new to management were presented with the SCARF Model (see box for details) through the Foundations Program training. The agronomists based across regional NSW, are responsible for seed production. McGrath says, “These agronomists are technical experts but had little people management exposure. Once they completed the training and went back to their jobs, one of the most useful learnings they took with them was the relevance of the SCARF model,” says McGrath. The new SCARF acolytes gathered their production teams together. They ran information sessions with the teams about the neuroscience model, what it can help them achieve, and how it can assist contacts with farmers and growers. The SCARF model encouraged the agronomists to pause before contacting a grower to consider what they were trying to achieve and how their message would be received.

McGrath explains, “The agronomist might say, ‘I’m encouraging a farmer to grow several 100 hectares of seed for us.’ At this point, I must consider what’s the motivation for them? Why would they want to help us? And then how do I communicate to their needs as opposed to us trying to pitch to them based on what we want? “This is how our new agronomist managers benefited from the IML ANZ program. It gave them tools to upscale themselves and their teams.”

Leading together Bringing all GenTech’s future leaders together enabled the seed company to foster the cross-pollination (no pun intended) of ideas across business units. McGrath explains, “We thought it best to pull our leaders together. Gathering our leaders into one room enables us to ensure they are all using a common language, and to start removing any silos within the business. “Our staff are pretty good at working across functions, but one of the outcomes of the Foundations Program was for more collaboration between people from distribution, production, sales, finance, IT and research. “Hardly any of the team who took the program work together on a daily basis. More cross-pollination was an outcome we were looking for, and the program has achieved this goal.” Already awareness of the challenges faced by other business units have improved, according to McGrath, who

SCARF MODEL The SCARF model uses neuroscience to define how people interact socially. According to the website mindtool.com, the SCARF model was developed in 2008 by David Rock, in his paper SCARF: A Brain-Based Model for Collaborating With and Influencing Others. SCARF stands for the five key ‘domains’ that influence our behaviour in social situations. These are: • STATUS: Our relative importance to others • CERTAINTY: Our ability to predict the future • AUTONOMY: Our sense of control over events • RELATEDNESS: How safe we feel with others • FAIRNESS: How fair we perceive the exchanges between people to be.

started measuring the impact of the Foundations Program in February 2020. Anecdotally, McGrath has also identified more communication across the teams since the completion of the training in October. “Now there’s a better appreciation across the teams that: ‘Oh, I didn’t realise you had to do all of that just to get the seed in the bag’.” Peter Kleinhanss, Director and CEO, GenTech Seeds adds, “Ever since the training started, I have heard that the team gels so well together and has continued to evolve. “It is a special thing to have happen for a group of likeminded, positive and creative people across different parts of the business to have that type of relationship. I have no doubt that the Leadership class of 2019 will have a long legacy in the business.” After each phase of the three-month program, McGrath says it was exciting to see the buzz and energy the program created. “The tools and concepts provided by the Foundations Program were immediately applicable back to the work context.” Since the completion of the Foundations Program, all participants are either leading a project at GenTech or are part of crossfunctional project teams aiming to deliver business improvements. “For example, a salesperson might be working with someone in production to work out the capacity of our grain storage and how we improve it,” says McGrath. “Others are now working on projects addressing how we will meet future targets. For instance, if our business grows by 20%, do we have the infrastructure, people, and technology to be able to support that growth?” McGrath maintains the Foundations Program, “met all of our objectives and I would highly recommend it and the talented facilitator Jacqui Perkins, to other businesses looking to develop their leadership pipeline. “We had access to an incredibly engaging and knowledgeable presenter, who was as focused as I was on the transferability of the training back into the workplace. “I would highly recommend that – before deciding on course providers – you attend a workshop run by the course presenter to ensure their skills, knowledge and delivery style suit your business needs.”

LEADERSHIP MATTERS

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CORPORATE SOCIAL RESPONSIBILITY

Doing charity right BY RETHINKING CSR, MANAGERS AND LEADERS CAN DO WELL BY THEIR BUSINESS WHILE HELPING THE COMMUNITY.

S ARTICLE BY NICOLA FIELD Journalist

uzanne Hopman FIML is a firm believer that managers and leaders can bring about positive social change. In fact, she sees evidence of it every day, in her role as CEO and co-founder of Dignity, a charity that provides essential services to those who are homeless or at risk of becoming homeless. “Managers and leaders have the ability to impact not only the team that they lead and their customers, but society in general,” says Hopman. “To have the ability to make a social change – and not use it wisely – is a wasted opportunity to make a difference in the way we all live.” For some leaders, the question is: How can I influence change? Hopman believes it’s an area where any organisation’s corporate social responsibility (CSR) program offers tremendous potential. And she says that can involve a lot more than simply providing handouts to the less fortunate.

ASK THE CHARITIES ABOUT THE DIRECT SOCIAL IMPACT THAT YOUR CONTRIBUTION WILL MAKE. 40

Integral part of leadership “Too often CSR plans are viewed as a box that needs to be ticked rather than an opportunity to truly affect social change,” notes Hopman. “A good CSR plan creates corporate culture, and needs to be an integral part of leadership, not just an add-on.” Effective CSR programs call for an investment of time and resources. But there is growing awareness that CSR initiatives are good business practice. Hopman explains, “Companies that have deeply considered and well-developed CSR programs have reported better employee engagement and performance, increased creativity, stronger team culture, and are more attractive to prospective employees.” A wealth of research supports the value of ‘doing well by doing good’. A Nielsen Global Survey found 67% of people prefer to work for a socially responsible company. A PwC report found 59% of millennials are attracted to employers whose CSR values match their own. CSR can also strengthen an organisation’s market appeal. Hopman points out, “Many customers are demanding to understand the way businesses are contributing to society, and using their buying power to do good. People increasingly weigh up decisions between suppliers, and choose the one that contributes positively to society.”

Share the passion While an organisation’s CSR program may offer leaders and managers scope to create a better world, a key stumbling block can be determining which causes to support. As Hopman observes, “There are so many different charities doing good things. That’s why business leaders should ask their teams about what they’d like to see changed in the world. There may be a particular passion within the team, so it’s worth engaging

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CORPORATE SOCIAL RESPONSIBILITY

AWARD WINNERS In 2019, Dignity made history winning Telstra’s Australian Business of the Year award – the first time that the winner of Telstra’s Social Change Maker category has also taken out the top accolade. And Fantastic Furniture won a 2018 IML ANZ Sir John Storey Catalyst Award For Business Innovation.

Australia’s largest corporate giver is Rio Tinto, annually donating

A$256m (AFR, 2019)

your team in the selection and development process.” While team consensus can encourage buy-in, it also makes sense to look at how you and your team can put real weight behind the charity. Hopman observes, “People want to be more involved. I’ve seen a shift in approaches – a move away from the older models of just tipping money in a bucket to support a charity. These days, CSR programs can help corporate teams develop a deeper understanding of themselves through engaging with charities who share similar values and beliefs.” In deciding which causes to support, Hopman recommends “shortlisting a few charities that are aligned with your values and goals rather than taking a scattergun approach. Before making a decision, ask the charities about the direct social impact that your contribution will make. Share ideas, have conversations around how you can understand each other, and discover new ways of working together.”

A true partnership As a guide to how CSR programs can build mutually beneficial relationships, Hopman cites the example of Fantastic Furniture, a corporate partner of Dignity. “Fantastic Furniture believes all people living in Australia deserve a home which is safe, happy and sustainable,” says Hopman. “So Dignity is well positioned to help Team Fantastic take real action and bring these beliefs to life. Their employees get

directly involved, from product teams, who design the furniture layout destined for new Dignity properties, through to lending a hand putting flat-pack furniture together in properties as an integral part of Dignity’s set-up process in the days before opening. “That’s made a real difference to Fantastic Furniture’s team,” says Hopman. “It gives them an understanding of how they are helping to create a home. Conversely, Dignity makes presentations at Fantastic conferences, and they provide advice to our board. It’s a growing partnership based on shared values and beliefs.”

Not a one-way street Hopman is adamant that corporate support of charities should not be a one-way street: “Charities have a responsibility to understand that CSR programs are a partnership, and that brings an element of accountability. “Corporate partners are entitled to know where their support is going, and what it means,” says Hopman. “Charities need to measure their social impact – what is it they are achieving, what is the real difference they are making.” In a crowded charity sector, the charities making the biggest impact bring as much passion to business administration and governance as they do the cause itself, says Hopman. “We knew that to be effective as a charity, Dignity also had to be an incredible business. Our team is very passionate, and developing our culture has been important.

But we think differently – we also follow good business principles. It helps, for example, that I am an ex-hotelier now running an accommodation business, and our CFO Deanna Shim had an international career with PwC. We think commercially and compassionately in equal measure, knowing that if a room goes empty for just one night it is both a waste of our precious resources and a wasted opportunity to empower a person experiencing homelessness.” A sustainable business model has allowed Dignity to experience tremendous growth. As Hopman points out, “Five years ago we were supporting up to 12 people each night. Now we support 260 people every night. To date we have helped 50,000 Australians find a home.” Hopman admits she “put it all on the line” when she launched Dignity in 2015, and while she says there have been challenges along the way, she has been pleasantly surprised at the volume of organisations wanting to get involved in creating social change: “We all know we’re making a difference, and that’s incredibly rewarding,” she says.

To find out how your team can get involved in ending homelessness, visit dignity.org.au

LEADERSHIP MATTERS

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04/03/2020 12:18

OPINION | CONSULTING

Growing pains In this new regular column, experts share their advice on how to run a successful consultancy or small business. This edition, we hear from Jonathon Drumm in Wellington, New Zealand.

ARTICLE BY JONATHON DRUMM AFIML

Managing Director Equity Partners

unning your own business (or planning to take the leap) is an exciting and unpredictable experience for any manager or leader. It can be like watching your children develop, with plenty of thrills, spills and growing pains. Here are some common growing pains many small businesses must navigate, along with some tips from my 20 years running my own businesses and operating as a private equity partner across Australia and New Zealand.

1. Know your basic numbers

3. Manage change

A failure to understand cash flow, profit and loss, and your revenues is a common challenge for nascent business owners. Let’s assume you’re projecting $750,000 in turnover for your business, shared between three sales reps. You must determine whether each rep can produce $250,000 annually. If the answer is no, then your projections need a rework. If the answer is yes, how have you apportioned it? Have you thought about your Christmas/New Year shutdown? Staff holidays? Seasonal slowdowns? Public holidays? These events significantly affect your monthly and weekly cash flow. You must have dollars in the bank to cover these lean times. To help with robust forecasting and projections, a good accountant with small-to-medium business experience will prove a savvy investment. That said, if you don’t have the basic numeracy skills, you must try and arm yourself with the financial knowledge to ensure you can understand and manage your outgoing expenses. Keep track of expenses and sales daily. Using a key dashboard with financials is critical. Apps such as Xero or ASB Plus are very useful and will display fluctuations, trends and anomalies for you to focus on.

When businesses start to expand, the business reporting must change. Let’s assume your business grows quickly from five to 20+ staff members. Personal phonecalls with employees, or check-ins by the watercooler, will become less common. Establish formal reporting structures to lead and manage sales, staff, or workload. This helps you identify what is coming in the door next week or next month. Consider implementing Customer Relationship Management (CRM) platforms such as Pipedrive or Salesforce, which is great for sales teams. For collaboration within teams you may need something such as Trello or Monday.com. To get everyone onboard with new software, I recommend implementing these early on in the growth phase. Clearly explain to your staff the time savings and efficiencies that will be gained to ensure their buy-in.

2. Employ experienced staff

25% Small businesses contributed NZ$153.1 billion (or 25.3%) of NZ’s total industry sales in FYE 2018 (Stats NZ)

When you are in business for yourself, your time is the most precious commodity. A steep learning curve for a new inexperienced employee is not something a new SME owner can afford. By employing experienced and proven staff (even if they are potentially more expensive) you are giving yourself back a huge amount of time that would otherwise have been spent in training and ‘hand-holding’. Make sure you set clear targets and expectations for new employees and make these known right from the interview stage. Do not fall into the trap of being too timid in interviews, because you fear scaring away potential talent. It’s better to be up front from the start.

4. Seek outside expertise before you need it You might be an expert in your field, but owning a business can feel a bit like trying to be an expert in many fields. Be sure you have outside resources (that you have already vetted) who you can turn to for advice when obstacles arise. You can’t prepare for every eventuality, but you can line up your support systems early, to guide you when the going gets tough. When you need help, do not be afraid to reach out to others for advice. Your support network might include paid specialist advisers as well as past colleagues or associates who know you personally. Sometimes just talking through a challenge with a trusted friend will help give you the necessary clarity and objectivity to make the right decision for your business.

April 2020

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CASE STUDY | MENTORING

Learning from each other A local government leader and an HR expert gained fresh perspectives through mentoring. “HOW LUCKY AM I?” THAT WAS THE REACTION OF SIAN STEPHENS FIML WHEN SHE FOUND OUT THAT SHE WAS PAIRED WITH MARIANNE DI GIALLONARDO CMgr MIML. THEIR MENTORING PARTNERSHIP NOT ONLY OPENED UP NEW INSIGHTS FOR THESE TWO LEADERS, BUT THEY EACH ALSO GAINED A TRUSTED CONFIDANTE. ARTICLE BY KARYL ESTRELLA MIML Content Producer IML ANZ

Di Giallonardo built her career in local government leadership and is currently the director of corporate services at Maroondah City Council in Victoria. On the other hand, Stephens, who is the human resources business partner at financial services company Enhanced Group, has worked mostly in the private sector. Despite their different professional backgrounds, both have mentored others in the past. So, for Stephens, this relationship was different. “This is my first experience being a mentee, and I got involved because I was completing the Chartered Manager program,” she explains. Switching to the mentee side was an exciting and welcome change for Stephens. The pair had met previously at various IML ANZ events, and Stephens knew that her mentor has an incredible amount

of knowledge to share. Hence her excitement when she first found out who her mentor would be. One of the gems that Stephens acquired from her mentor was a reminder to focus. “She helped me to keep my head straight, reminding me to build on my strengths and avoid always doing everything for everybody,” Stephens recalls. Di Giallonardo’s experience also proved invaluable when Stephens faced a challenging situation. “I’ve been fortunate that I’ve rarely faced prejudice because I’m a woman in business. However, something happened within a group I was working with, and I felt that I couldn’t trust the room,” she explains. “Marianne has had more experience in dealing with situations like this. It was great to have a safe space to discuss it in a rational way,” Stephens adds. “She helped me

Sian Stephens

Marianne Di Giallonardo

Around

450

IML ANZ Members participated in the mentoring program in 2019

understand why I felt the way I did and what I could do when I interact with this group in the future because this wasn’t a one-off situation.” After acting on Di Giallonardo’s advice and guidance, Stephens admits that slowly but surely the communication within the entire group is changing. Of course, good partnerships aren’t one-sided. Di Giallonardo says, “In a good mentoring relationship, both parties learn and grow along the way. That’s certainly what I felt with Sian.” Her mentee provided a fresh perspective on matters that are often of secondary importance in local government, such as income streams. “Local government tends to look at minimising expenditure whereas in the private sector, they regularly look at income streams and how to expand, leverage or maximise it. That was good for me to understand,” Di Giallonardo points out. On top of learning from each other, the mentoring process also ensured they got the most from their four-month partnership. Di Giallonardo believes a flexible mentoring program works best. “It’s really between the mentor and the mentee to strike the necessary balance of arrangements within a time-bound period. So, flexibility allows participants to construct that relationship in a way that’s going to help them get the best outcome.” Meanwhile, Stephens believes mentoring is an integral part of stepping up as a leader. “Don’t wait until you are struggling,” she says. “As soon as you’re in a position of responsibility, find somebody outside your workplace or industry to give you fresh perspectives and to listen”.

LEADERSHIP MATTERS

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HOLIDAYS

HIKING

OUTOFOFFICE THREE CAPES WALK SOUTH COAST TRACK

WHEN DIANA DE HULSTERS NEEDS SOME DOWNTIME, SHE HEADS FOR THE HILLS. Q: Why do you take multi-day hikes during your time off work? A: I love having an active outdoors holiday. For me walking is an enjoyable pastime. As an activity, it can be as intense or as gentle as you like. There are some of the more undulating walks, like those in the Adelaide Hills, then there are also very challenging ones too.

DIANA DE HULSTERS CMgr FIML Managing Director, Your Outsider and Board Director, IML ANZ

Q: Where have you been hiking recently? A: Last year, I started off on the Three Capes Walk in Tasmania. In April, I went to WA and did the Cape to Cape Walk. I’m also part of a group called The Friends of the Heysen Trail. The Heysen Trail is 1,200 km broken into 62 walks which you complete over six years. I’m in my third

year of walking that entire trail, and it keeps my weekends busy. I finished 2019 on the hardest walk I’ve ever tried – the South Coast Track. It’s located within Tasmania’s Wilderness World Heritage Area and involves 10 nights of camping – no luxury lodges there so we had to carry everything in and out! Q: How do you switch off from work while on holidays? A: Hiking often involves choosing to go somewhere with no mobile connection. But I also think that it’s not about switching off but switching over. Hiking does require my full attention. I have to prepare the right equipment, read the map, check the weather warnings and master my technique. I also need to think

about my ethical and group behaviours. For example, in a national park, we stick to the track and carry out everything we take in, including any rubbish. Q: Why do you think it’s vital for managers and leaders to go on holidays? A: Mainly because it makes us feel good – and we’ve earned it. But we have to role model the right behaviour for our teams too. Let them see that it’s okay to switch off. I try to divide my working days as eight hours for work, eight hours to enjoy myself and eight hours for sleep. Plus, I always use my annual leave. When you balance your time, you enjoy life a lot more.

April 2020

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HEALTH | WELLNESS

Four wellness tips for leaders “THE MORE YOU LOOK AFTER YOUR WELLNESS AS A LEADER, THE BETTER PLACED YOU ARE TO LOOK AFTER OTHERS,” SAYS CRICKET AUSTRALIA’S ADVANCED SPORTS DIETITIAN, ELIZA FRENEY.

ellness is actively pursuing good health and wellbeing, according to Eliza Freney IMLa. And she would know. As Advanced Sports Dietitian with Cricket Australia, she is overseeing the health of sporting leaders such as test captain Tim Paine and superstar Ellyse Perry. There are four wellness pillars, including diet, exercise, sleep and mental health, advises Freney. Managers and leaders should focus on each of these to maintain their health and wellbeing.

1. Nutrition Australia’s healthiest managers and leaders work in the banking sector (2019 Executive Health Index)

• Get familiar with your ‘plate real estate’. Half of your dinner plate should include a variety of salad or vegetables, with the remainder divided between a protein source such as fish, chicken or beef, and carbohydrates such as sweet potato, quinoa or brown rice • Eat prebiotic foods such as those high in fibre to promote good gut health • Try for five alcohol-free days a week – two standard drinks within two hours of bedtime can impact sleep quality • Seek expert advice from a dietitian. • Find at least 30 minutes each day to be active – and be creative such as taking walking meetings

2. Exercise

• If you travel regularly check out ClassPass, which provides access to fitness classes and health clubs in Australia and overseas by means of its flat-rate monthly subscription billing service. • Sleep is crucial, each night, you should aim for eight hours of quality slumber

3. Sleep

• To achieve good sleep hygiene, turn off devices an hour before hitting the pillow • If you travel internationally, use the Timeshifter app, to start transitioning time zones a few days before flying.

4. Mental health

• Beneficial mental health is advantageous to business leadership, so test the Smiling Mind app, which uses guided meditation to help with sleep and stress management • Try deep breathing exercises to manage workplace stress.

“TRY FOR FIVE ALCOHOL-FREE DAYS A WEEK.” 46

ARTICLE BY ANTHONY O’BRIEN Journalist

April 2020

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THE KNOWLEDGE | ARTIFICIAL INTELLIGENCE

Leading in the AI age Booktopia’s Tracey Mills handpicks six books to help lead people through technology disruption. Human + Machine By H. James Wilson

How AI is Transforming the Organization By MIT Sloan Management Review

Explores how AI is changing the rules of how companies operate. Explains how this requires transformation of all business processes within an organisation; whether related to breakthrough innovation, everyday customer service or personal productivity habits.

Avoids utopian hype and alarmist doomsaying, providing instead a clear-eyed look at how AI can complement (rather than eliminate) human jobs, with real-world examples from companies that range from Netflix to Walmart.

The AI Economy By Roger Bootle

Artificial Intelligence in Practice By Bernard Marr with Matt Ward

Tackles the implications of AI on growth, productivity, inflation and the distribution of wealth and power. Also examines coming changes to the way we educate, work and spend our leisure time.

Reveals how machine-learning technology is transforming the way companies conduct business. Also looks at real companies, describing specific problems and how AI overcame them.

Reinventing Jobs By Ravin Jesuthasan and John Boudreau

HBR’s 10 Must Reads on AI, Analytics, and the New Machine Age By Harvard Business Review

An original, structured approach and a set of tools for applying automation and AI in an organisation. Includes a practical fourstep framework (deconstruct, optimise, automate, and reconfigure) to proactively and continuously reconstruct work and create optimal human-machine combinations.

FURTHER RESOURCES 48

SPECIAL OFFER IML ANZ Members save 10% when purchasing any of the above books at booktopia. com.au. Enter the promo code LMMARCH20

Reveals the business potential and implications of a range of technologies including data science, blockchain, drones, driverless vehicles, 3D printing, augmented reality, smart speakers and automation.

PODCAST ‘Artificial intelligence, ethics and the law’ minterellison.com/podcasts

LEADERSHIP MATTERS See page 22 of this edition of Leadership Matters for an exploration of how leaders can best harness AI and automation.

April 2020

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THE KNOWLEDGE | ETHICS

Great power, great responsibility BIOMETRICS CAN OFFER TANTALISING OPPORTUNITIES, BUT MANAGERS AND LEADERS SHOULD APPROACH THE TECHNOLOGY WITH CAUTION AND CONSCIENTIOUSNESS.

ho are you? That was the question biometric technology set out to answer in its first generation. The initial application for biometrics – or technology that captures physical and behavioural data about an individual’s characteristics – was identity management and authentication. This technology analyses simple traits like your fingerprints, face, voice or sophisticated features such as your gait (or the way you walk) and even DNA. Today, biometric technology has launched into its second generation, trying to answer the question, “How are you?” And it’s now possible to carefully assess the behaviour of individuals or groups covertly. One academic once described it as tantamount to reading minds. That’s because biometric data collection can be carried out without you necessarily being aware that it’s there. For instance, many shopping centres and public spaces use face recognition technology. But we often ignore the signage that warns us.

It all starts with good intentions Of course, no one creates new technology intending to harm others. The designers of the algorithms used in biometrics produce these to enhance identification, privacy and security – vital in today’s society. For example, in India, facial recognition technology has been used to build a national ID program. Not everyone who is born there gets registered. And if you’re not registered, you can’t access essential services. So, this technology is unbelievably powerful – and potentially problematic. When I started looking into biometrics, I wanted to use face recognition to see what engagement looks like in a classroom – whether my students

Overcoming ethical issues Another challenge is that the law is always too slow to catch up with technological evolution. If you are deciding whether your use of biometrics is legal, the answer is probably yes, but it doesn’t necessarily mean it’s ethical. While guides exist, such as the Guidelines for Data Protection Regulation (GDPR) that came into effect in Europe, it helps to consider the following ethical principles.

56% of biometrics professionals believe that informed consent isn’t properly obtained (Biometrics Institute 2019)

AN ACADEMIC ONCE DESCRIBED BIOMETRICS AS TANTAMOUNT TO READING MINDS.

ETHICAL PRINCIPLES

ARTICLE BY DR ANDREA NORTHSAMARDZIC MBA Director, Deakin Business School

were enjoying my class or not. Naturally, I had to investigate the ethics surrounding the technology in non-security contexts. To my shock, there are merely 15 papers in the entire world on the topic. That’s what led me to publish research. I couldn’t find an expert on the subject, so I had to become the expert.

1 K eep in mind the theory of double effect: Often, what can help can also harm. Find out how technology could be misappropriated and address those scenarios. 2 There’s also informed consent: How many of us ever read terms and conditions? We don’t because it’s difficult to understand. If you want to behave ethically, you must request consent in a way that is clearly understood by the average person. 3 To remain ethical, keep this single statement in mind: “Just because we can, doesn’t mean we should.”

PATHWAY PARTNER Deakin University is an IML ANZ Pathway Partner. Visit iml.click/UniversityPartnershipsLM2020 THIS WORKING LIFE Podcast interview with Andrea North-Smardzic on ‘Leadership and Perception’. abc.net.au/radionational BIOMETRICS INSTITUTE Public resources for ethical and responsible use of biometrics. @BiometricsInsti

LEADERSHIP MATTERS

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GIVING BACK

Lead with your heart SHAPING SOCIAL CHANGE TAKES MORE THAN DONATIONS, ACCORDING TO LIESEL WETT.

he disastrous bushfires that ravaged vast tracts of Australia this summer demonstrated the support that companies – and leaders – can provide amidst a dreadful community crisis. Fundraising and financial contributions were many and varied. Even US heavy metal band Metallica reportedly chipped in with a A$750,000 contribution as part of total donations of more than A$250 million to charities, local fire services and brigades and animal welfare agencies. However, Liesel Wett MIML, CEO of Australian Pathology, shows that corporate social responsibility (CSR) extends beyond financial contributions. Outside her day job, Wett also chairs the board of an independent aged care services provider, Goodwin Aged Care Services. In 2016, Wett was involved in the substantial Don’t Kill Bulk Bill campaign which attracted more than 600,000 signatures for a petition rejecting cuts to funding for pathology services. The crusade forced the federal government to reverse its policy during an election campaign.

Caring leadership Wett is driven to influence health policy agenda as she is passionate about the benefits for the community. “In my work with Goodwin, my leadership role involves guaranteeing vulnerable people have a high level of care. “We are looking after older Australians who have worked their whole lives in the community, and we need to provide them with the

200,000+ Australians and 30,000+ New Zealanders stay or live in residential aged-care facilities (ABC 2018, IbisWorld 2017)

best level of care. Part of achieving this level of care involves challenging the status quo.” In 2014, the Goodwin board established a clinical governance framework that challenged its management team to meet several significant objectives. “The framework made our managers step up to the mark about what we were delivering,” recalls Wett. “We tried new models, and now we are a step ahead of the other providers in the support we provide to our residents.” Wett says the experience she gains from her leadership role with Goodwin enhances her function with Australian Pathology. “In my roles with Goodwin and Australian Pathology, I am interacting with different parts of the community and stakeholders. One day I am communicating with the Prime Minister in my day job and the next day with an elderly resident.”

Wett also warns leaders and managers to be authentic in their desire to influence social change and in their CSR activities. The Goodwin board, for example, rotates its meetings between its aged-care facilities in Canberra. “Before each board meeting, we meet our residents to listen to their life stories. These connections have been so grounding for us because our residents are the reason we operate. “Often their stories are very sad, and around 50% of all our residents don’t receive a single visitor. So, when we meet with them, our board members might be the only people our residents have spoken to apart from our staff. “I love meeting them because they tell me the most amazing stories about their lives. However, our residents can tell when you’re not genuine.”

“OFTEN THEIR STORIES ARE VERY SAD, AND AROUND 50% OF ALL OUR RESIDENTS DON’T RECEIVE A SINGLE VISITOR.”

ARTICLE BY ANTHONY O’BRIEN Journalist

April 2020

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Leadership Matters magazine - April 2020

Articles inside

OUT OF OFFICE

MENTORING