Use your imagination: Why Russel Howcroft prescribes creativity for business growth

By Andy McLean MIML

 

When most people are asked to name today’s greatest innovators, their answers are predictable. If I were given a dollar every time I heard the names “Richard Branson”, “Sheryl Sandberg” and “Larry Page” I would probably have seed funding for my own Silicon Valley startup.

But one name that has never cropped up, until now, is: Baz Luhrmann. On the face of it, the man behind blockbuster movies like The Great Gatsby, Moulin Rouge and Romeo + Juliet is an unlikely poster boy for business innovation. But that’s who PwC’s Chief Creative Officer, Russel Howcroft, believes business leaders should seek to emulate.

“We all need to find our inner Baz,” says Howcroft. “Here’s someone who is highly creative and equally highly commercial. He’s also brave enough to put it out there.”

What Howcroft admires is the movie director’s blend of innovation and business nous. Luhrmann’s kaleidoscopic films have rewritten the creative rule book in Hollywood, while simultaneously breaking box office records. Four of the top 10 highest-grossing Australian movies of all time were directed by Luhrmann.

“I’m not talking about creativity just for the fun of it,” says Howcroft. “I believe in the power of commercial creativity. If leaders want their organisations to go beyond net market growth, then they have to apply creativity. It’s the number one tool for brand development, generating demand, increasing your margin, and selling more.

“The alternative is to keep doing the same thing every day and expecting something different to happen – and that’s the definition of insanity. Australian and New Zealand businesses need to step outside their comfort zone if they want to achieve meaningful growth.”

As a panellist on the ABC’s Gruen television series, Howcroft is one of Australia’s best-known authorities on marketing and advertising. He argues that creativity is not only a macroeconomic concern or a strategic business priority – but also the key to safeguarding the future careers of managers and leaders.

“There’s a lot of talk about jobs being replaced by artificial intelligence, and you know what? Our creative capacity is what can keep humans gainfully employed. That’s why the Chinese are putting creativity front and centre in their education system. That’s why the Indonesians held the first global conference on the creative economy last year. And that’s why Australia and New Zealand have to prioritise creativity too.”

 

START AT THE TOP

So how can organisations identify the latent creativity that exists within the workforce?

“We’ve got to start at the top and as leaders say, ‘Yes, creativity matters and it’s a strategic priority for us’,” suggests Howcroft. “I recommend appointing someone in the executive team to champion ideas and seek them out. If that’s the CEO or CMO, then that’s great. If not, appoint someone who is highly energised by creativity in all its forms. Get them to focus on improving performance and finding new innovations.”

When asked to describe what a creative organisation looks and feels like, Howcroft ’s eyes light up. “I think the number one behaviour you see is respect for ideas and respect for the individual’s desire to put ideas on the table. It’s really important that everyone in the organisation feels comfortable having a conversation about their ideas. They won’t always be great ideas but you need to celebrate having the conversation because it might lead to something that is powerful and really good for the business.”

Howcroft ’s advice is resoundingly supported by a 2017 McKinsey study, which found that creative companies are far more likely to achieve better financial performance than other industry peers. McKinsey said creative companies were distinguishable from others because they made creativity and innovation a priority during business-as-usual activities. It also said creative organisations were “customer fanatics” who got products to market faster, tracked progress, and adapted to early market signals.

Howcroft adds that a culture of creativity requires leaders to recruit and retain people with an aptitude for innovation and ideas. To illustrate this, he recalls his time working in advertising agencies: “I used to say, ‘You’ve got two choices. You can look at the mirror or you can look out the window. I’m only interested in people who are looking out the window’.

“What leaders should be careful of is a culture where people are inward looking. You can’t just rely on algorithms and your newsfeed for inspiration – you’ll end up taking your business down a narrow rabbit hole. Instead, I look for people who are voracious consumers of all things cultural.”

 

COMMERCIALISING CREATIVITY FOR CLIENTS

Howcroft’s belief in commercial creativity is what guides much of his work at PwC. The focus is on developing strategies with clients to derive maximum value from marketing and communications activity.

“What we’re doing is helping clients with the significant problem of how marketing drives growth,” he explains. “The market has never been more complex in terms of working out where to spend your marketing dollars to extract the best return. We help clients understand whether or not they are spending enough in the right places.”

PwC also advises marketing leaders on their internal and external structures, to ensure they are set up and equipped to fulfil their ambitions. “We are involved as strategic consultants, rather than at the execution stage of marketing,” says Howcroft. “It’s all about establishing the best platform for growth.”

 

HOW TO FIND YOUR INNER BAZ

While Howcroft does not advise individual leaders on how to find their inner Baz Luhrmann, he has worked with enough creative people down the years to offer a few pointers. “You need to have confidence. Many leaders are cautious and feel reticent to express their ideas. There’s a temptation to say, ‘I’m not sure about this idea…’ Instead, I think you have to back yourself and also get behind other people’s ideas too.

“My final piece of advice would be: Don’t doubt the power of creativity. There’s enough case studies and research out there – stretching to the moon and back – proving the commercial potential of creativity. Let’s just acknowledge it’s powerful and get on with it.”

This article originally appeared in the September 2019 edition of Leadership Matters, IML ANZ’s quarterly magazine. For editorial suggestions and enquiries, please contact karyl.estrella@managersandleaders.com.au.

A former Wing Commander heeds a creative calling

By Nicola Field

 

When Chris Huet AFIML promises to help his clients speak with the precision of a fighter pilot and the passion of a poet, he’s not joking. This former Royal Australian Air Force (RAAF) pilot, award-winning poet, and now communications coach, has a career path that can rightly be summed up as ‘Top Gun meets the Bard’.

Huet kickstarted his career in the RAAF, completing a Bachelor of Arts through the Australian Defence Force Academy. It wasn’t long before Huet found his wings, climbing through the ranks to become a fighter pilot. It’s a role Huet describes as “lots of fun and very rewarding – it was an opportunity to fly and visit different places around the world.”

In a near-20-year career with the RAAF, Huet reached the distinguished rank of Wing Commander. In his final role, as a squadron Commanding Officer, he was responsible for a fighter training school, overseeing 200 personnel and 14 F/A-18 Hornet jets. Under Huet’s leadership, the squadron was officially recognised as the RAAF’s first Learning Centred Organisation.

Huet’s experience in the RAAF reinforced two critical leadership skills: the ability to galvanise a team, and the need for outstanding communication. He explains, “You may be flying alone in a single seater F/A-18 but you’re always part of a team. And across the Air Force you deal with a multitude of diverse people, each responsible for different roles. It makes good communication skills essential.”

Fast forward to 2006, and Huet was ready to hang up his wings. Having completed a Master of Management, he was keen to use his management skills in a broader sphere.

Huet gradually transitioned out of the military, initially consulting to the defence forces and later taking on the role of Business Development Manager at Lockheed Martin. It was here that he harnessed his communication skills to negotiate a A$1.2 billion contract for the Project AIR 5428 Pilot Training System.

 

FROM THE SKY TO THE STAGE

Behind the scenes, the right side of Huet’s brain was bubbling away. He had always been interested in poetry and creative writing, and a little over 10 years ago Huet’s alter ego, CJ Bowerbird, took to the stage.

Under the moniker of CJ Bowerbird, Huet has performed poetry at folk and writer’s festivals across Australia, Asia and the United States. He is a former Australian Poetry Slam champion (slams are competitive poetry readings), and a member of Canberra’s Sound and Fury Ensemble as well as a two-time TEDx presenter.

 

THE COMMUNICATIONS COACH TAKES OFF

Several years ago, Huet had a moment of epiphany – one that would see him fuse his management experience with his talent for the spoken word.

“I was writing my CV and trying to find the real story behind who I am,” explains Huet. “I realised that what I really enjoy most is communicating with others, and I wanted to combine my creative pursuits with my technical and business work.”

Although uncertain about the market for a communications coach, in 2017 Huet opened the doors of Understood Consulting Services. He reports being “pleasantly surprised” by the level of demand for his services.

Describing his role, Huet says, “It’s not solely public speaking that I teach. Often it’s one-on-one verbal communication skills that my clients are looking for.” Huet says his services are in particular demand among professionals such as engineers, whose career strength to date has centred on technical rather than communication skills.

Huet’s passion for poetry has proven a tremendous asset in teaching the art of communication: “Effective communication has energy and emotion. This lets you connect with the people you’re talking to. And poetry connects emotion with concrete images, motivating and exciting us.”

 

THE POWER OF FACE TO FACE

While Huet claims he hasn’t yet met anyone who couldn’t improve their communication skills, he has observed “the bland language used by some leaders – be it in politics or business.” Despite the growth of digital communication, Huet is a firm believer that there is no substitute for face-to-face contact.

“Communicating face to face is extremely powerful,” he explains. We communicate through tone, volume, pacing – and our entire body. Anything other than face to face is less effective and is more likely to be ignored.

“If you really want to motivate and inspire people to change, you have to do it face to face. Sending an ‘all-stations’ email is nowhere near as effective.”

Huet acknowledges that speaking, especially in front of large groups, is a common fear. “It’s perfectly normal to be nervous about speaking in front of others. I think it’s probably an innate thing – a fear of being rejected by the tribe. Even the best public speakers get nervous. The difference is that they direct that energy outwards, towards their audience and into the way they’re speaking.”

 

FINDING A PURPOSE

Whether it’s piloting military hardware at 30,000 feet or helping professionals find their inner voice, Huet has certainly notched up a high-flying career as a manager and leader. “I’ve been lucky to bring everything I enjoy into the work I do,” he acknowledges.

But luck has played only a small role in Huet’s career path. It’s been more a case of harnessing all of his skills and talents, and he encourages other managers and leaders to tap into their creative side.

“It’s important to find a purpose in the work you do,” he says. “Creativity isn’t just about poetry. It’s about solving problems and being able to see things from a fresh perspective. Being able to channel my creative side has been very beneficial in my work and in my life.”

This article originally appeared in the September 2019 edition of Leadership Matters, IML ANZ’s quarterly magazine. For editorial suggestions and enquiries, please contact karyl.estrella@managersandleaders.com.au.

Career Doctor: How can personal resilience help with stress management?

By Peter Cullen FIML

Resilience has become increasingly important in the workplace due to the positive impact it can have on an individual’s wellbeing and performance. The Oxford English Dictionary definition of resilience is “the capacity to recover quickly from difficulties”.

Although some of us are more resilient than others, all of us become more susceptible to pressure and stress when our resilience is low. Everyone can benefit from activities that promote physiological, mental and emotional wellbeing.

 

STRESS ERODES RESILIENCE

Stress is the body’s natural response to pressure or alarming situations – those that make us uncertain whether or not we can cope. The factor or situation causing our stress either positively or negatively is called a stressor. Unfamiliar situations challenge or threaten us and increase our level of stress. A stress response may require higher energy levels to help us cope.

Occupational stress can be defined as the physiological, mental and emotional responses that occur when workers perceive an imbalance between their work demands, their capability, their access to resources and their level of control. Importantly, stress responses occur when the imbalance is such that the employee perceives they are not coping in crucial situations.

On the other hand, positive stress is beneficial and can improve performance. A natural and automatic function of the body is to provide extra energy to help us tackle a stressful situation. It will then naturally return to its former balanced state. This return to balance ensures ongoing health and wellbeing. Some of the body’s beneficial reactions to a stressful situation include: mental alertness, sugar release for energy, increased muscle responsiveness, faster heart rate, increased adrenaline and cortisol, increased blood pressure and faster breathing.

All these reactions occur automatically as the mind and body react to a stressful situation. It is necessary to remember that everybody copes differently with stress and everybody’s stress barrier is different.

 

BE SELF-AWARE, IMPROVE RESILIENCE

To improve how we manage our stress and be more resilient, we need to build our self-awareness to better understand where we are physiologically, mentally and emotionally at any point in time. A simple method to use when you are in the moment is:

  • Identify how you are feeling and what you are thinking.
  • Ask yourself what effect these feelings and thoughts are having upon you.
  • Consider whether these feelings and thoughts are helpful or not.
  • Take action to address these feelings and thoughts if they are unhelpful, or simply continue as is, if they are helpful.

 

Reflect upon a previous stressful event that tested your resilience and follow the above method in your mind. This will help you gain a greater understanding of how this may be useful for you the next time a stressful situation arises.

We can also build and strengthen our resilience by engaging in a variety of activities as part of our normal way of life. Here are some suggestions:

PHYSIOLOGICAL: Aerobic exercise, strength and conditioning, yoga or stretching, healthy nutritious eating, hydration, breath work, appropriate sleep.

MENTAL: Meditation, self-reflection to build self-awareness, relaxation techniques, reframe your thinking, establish boundaries, set achievable goals.

EMOTIONAL: Strengthen constructive relationships, be appropriately honest with yourself and others, respect yourself, talk openly with trusted friends, know and live your personal values, seek support when necessary, learn techniques to manage your emotions.

 

We all can improve our level of resilience and maintain a strong physiological, mental and emotional state. When are you going to start improving your resilience and be the role model for others to follow?

This article originally appeared in the June 2019 edition of Leadership Matters, IML ANZ’s quarterly magazine. For editorial suggestions and enquiries, please contact karyl.estrella@managersandleaders.com.au.

Other Life: Volunteering as a willing sounding board

By Lisa Calautti

 

Volunteering for less fortunate people is important to Barbara Brown, the general manager of people and culture at St.Lukes Health Insurance.

An IML ANZ Corporate Member, Brown has dedicated much of her life to volunteering, offering a helping hand to various organisations including menopause clinics, cancer support services and youth mentoring programs. As a result of her husband’s encouragement and his belief that her compassionate nature would benefit clients at Missiondale Recovery Centre, Brown has most recently pushed herself out of her comfort zone to come alongside drug and alcohol rehabilitation patients.

“I knew from volunteering in the past that most people just want someone to listen to them, and in that environment, people are there because they have already made the decision to change and are quite happy to talk about where they are and where they want to get to,” she explains. “The basis of anything I put my hand up for is looking beyond myself and my circumstances and seeing what I can do to help someone else.

“It’s always about what word of encouragement can I share, what cup of tea can I get? What hug can I give to make a person feel better about what they are going through? The motivation is never about me and I say to my family it’s about what you can do for others.”

Helping those less fortunate has given Brown an innate ability as a manager to relate to people and be more tolerant of their circumstances. Most of all, it has taught her not to take people at face value. “You realise there is a story behind every person. I absolutely believe that everyone has some sort of shadow. It is different for every single person,” she explains.

Helping people from all walks of life has helped Brown read and understand people’s behaviour. It has given her the ability to step back and have a ‘helicopter view’ of a situation rather than jump right into the problem. “It can just be having the wisdom to direct people in the right way, influencing them or helping them to be confident,” she says.

Trust is something inherent to Brown’s volunteering work and this has translated through to her role as a manager by building trust with staff through listening and allowing them to be free to explore their own ideas and express themselves. “Everyone wants to be heard, that’s what I have found. Everyone wants to have a voice,” she says. For Brown, the person she is as a leader and volunteer are consistent. “Whatever I am in my outside life, I am exactly that at work. I think it’s just about being real and not pretending to be something that you are not,” she reflects.

This article originally appeared in the June 2019 edition of Leadership Matters, IML ANZ’s quarterly magazine. For editorial suggestions and enquiries, please contact karyl.estrella@managersandleaders.com.au.

Meet the Innovator: Christina Delay’s mindful mixology

By Anthony O’Brien

 

Most of us have been there. The dusty feeling that a couple of seemingly harmless alcoholic bevies can leave us with the morning after.

Dr Christina Delay MIML is no different. However, the innovative biotechnology whiz with a Bachelor of Biotechnology from the University of Queensland and a PhD in Plant Biology from the Australian National University decided to address the loathsome issue of hangovers. Along with business partner Alan Tse, Delay officially launched the already successful Altina Drinks on 1 December 2018.

Canberra-based Altina Drinks produces zero-alcohol cocktails that pack a punch. The now teetotal Delay, who joined IML ANZ as a member in January 2019, explains Altina sprouted from her experience of social drinking as a technology consultant. “I’d gone from academia to the consulting industry and soon found myself caught up in the socialising culture where drinking was prominent.”

While Delay enjoyed her new environment, the culture caught up with her health. The curious Delay started talking to her colleagues about their experiences. “I realised there is much pressure around drinking. If you don’t drink, it’s tough and not very inclusive, and it’s quite hard to feel like you’re part of a social occasion.” From this early market research, Delay hatched the idea for Altina, and the value of ‘mindful drinking’ in February 2018. Coincidentally, Altina cofounder and finance expert, Tse, was questioning his drinking habits and ditched the booze.

In May 2018, Delay and Tse sought help for Altina through a social enterprise accelerator program. “We wanted to build the business as a social enterprise. Our North Star, our guiding light, is that we want to have an impact on the Aussie drinking culture.” At the same time, Delay started with IML ANZ’s mentoring program and worked with mentor Amanda Knol MIML. “We had monthly breakfasts, and she was a great sounding board particularly in relation to honing my management style.”

Delay mixed her earliest concoctions in her kitchen using a very structured approach. The PhD reviewed different methods for distilling spirits, brewing beer and wine-making. “Then I tried to understand and tinker with similar methods without using or producing alcohol.” Delay used botanicals, herbs, and spices to replace alcohol. As a result, Altina’s cocktails don’t rely on sugar-heavy fruit juices to create heavy hitting flavours.

Once Delay and Tse settled on some cocktails, they took their ideas to the Canberra community and used a crowdfunding campaign to raise significant finance for the start-up and to get their brews into bottles.

For now, Altina is using several different channels to market its non-alcoholic beverages including workplace functions and online. Delay explains, “We’re passionate about the concept of mindful drinking and helping workplaces introduce healthier drinking cultures.

“We’ve purposely held off getting our product into retailers and venues right now until we can scale up production.”

This article originally appeared in the June 2019 edition of Leadership Matters, IML ANZ’s quarterly magazine. For editorial suggestions and enquiries, please contact karyl.estrella@managersandleaders.com.au.

The strength to lift up Special Olympics athletes

By Anthony O’Brien

 

Jo Tarlton MIML is an extremely busy member of IML ANZ. For starters, Jo is the general manager of Eco Maintenance, one of Auckland’s few mid-sized companies dedicated exclusively to the provision of amenities maintenance services.

Away from the office, the indefatigable executive and mother is a successful powerlifter and a dedicated volunteer who supports Special Olympics athletes seeking to participate in powerlifting either recreationally or competitively.

 

POWERING INTO FITNESS

Powerlifting is a sporting activity many of us may associate with eastern European Goliaths or a workout used by the hulking All Blacks to help them mercilessly maul the Wallabies. Yet representative New Zealand powerlifter Tarlton claims she didn’t have a particularly strong pedigree in sports or athletics until five years ago. “I played netball through college, and on and off socially for some years after that,” she says.

The Eco Maintenance GM also dabbled in gym workouts to stay healthy. However, it wasn’t until 2014 Tarlton dived into fitness, boots and all. “I started CrossFit in 2012 after having my second child the previous year and wanting to get back in shape.”

While getting in shape, Tarlton somehow found the time to start volunteering with Adaptive Athletes, a program run by Michael Hynard, founder of Functional Adaptive Movement (FAM). Adaptive Athletes uses functional exercise regimes such as CrossFit, according to Tarlton. “My fitness journey then evolved from CrossFit into powerlifting in 2016 and, as I love the sport so much, I now volunteer with Special Olympics athletes.”

 

THE MOTIVATION TO VOLUNTEER

The compassionate Tarlton says the motivation and inspiration for volunteering stem from the challenges faced by the Adaptive Athletes and Special Olympic weightlifters. “These athletes have a can-do attitude that is a breath of fresh air, and they sometimes think they can do absolutely anything! It can sometimes be a mission to hold them back from going heavier with weights when we are still trying to work on form.”

Tarlton tells of one athlete who is terrified of using a gym bench when undertaking the arduous bench press. Some weeks it takes multiple attempts to encourage this athlete to use the bench, Tarlton explains. “But he never gives up, and I never give up, and every week he does it. Then, the next week he comes back and faces the same fear again.

“A lot of able-bodied athletes would give up and just not do that exercise anymore because it was too hard.”

The massive achievements clocked up by the athletes who face myriad daily challenges motivate Tarlton to help. “Powerlifting is a marathon sport, and it takes much time to improve mobility, build muscle and make strength gains that translate into increased totals on the bar,” she says. “Watching these athletes build on all these aspects and then looking back to compare them from when they first walked in the door is amazing.”

Likewise, Adaptive Athletes demonstrate the same level of determination to improve. Tarlton explains, “From walking in the door with a lot of physical and mental limitations and having little in the way of a sporting or physical activity background, to being able to compete in a CrossFit competition is a massive achievement.”

 

THE VALUE FOR MANAGERS AND LEADERS

Many managers and leaders are accustomed to being in charge and taking the reins, insists Tarlton. “Leading an organisation of 120 staff I am used to directing, creating the vision and making the calls so to speak.

“At the top, you often need to be the one that has all the answers and who drives the business forward while simultaneously dealing with different obstacles and setbacks that all businesses face, which can be mentally very tiring.”

In contrast, volunteering puts Tarlton into a situation where she is working with “someone else’s vision or program”. She adds, “You are just a cog in the machine, albeit a necessary one. This experience enables you, and at times forces you, to step back from a position of being the key decision maker for everything and gives you the opportunity to relax and enjoy being part of the process. It gives you a mental break which is invaluable when dealing with high-powered or pressured day-to-day business roles.”

Tarlton believes volunteering has improved her patience and self-awareness. “I am a pretty empathetic person, but in business, you sometimes need to be quite hard-nosed and take a ‘business is business’ approach, primarily as a woman leader in my industry. “Working with these athletes, you need to take an approach to see life through their eyes to be better connected and give them what they need, which is your reason for being there.”

Finally, for managers and leaders considering volunteering, Tarlton urges, “Just do it! Don’t make excuses, get out there and volunteer and give something back. What you get back from giving is tenfold.”

This article originally appeared in the June 2019 edition of Leadership Matters, IML ANZ’s quarterly magazine. For editorial suggestions and enquiries, please contact karyl.estrella@managersandleaders.com.au.

The Conversation: Speaking the international language of leadership

Photo by Sabrina Hyde

 

Now based in her adopted home of Wellington, Jane Diplock AO FIML is a professional director of some renown. The Australian has chaired and been a member of many boards and committees in the public, private and not-for-profit sectors.

As a leader, Diplock’s influence extends far beyond the shores of New Zealand. She is currently Chair of the Regulatory Committee of the Abu Dhabi Global Market, a director of the Singapore Exchange, a director of Australian Financial Services Group, a member of the Public Interest Oversight Board, a member of the International Advisory Committee to the China Securities Regulatory Commission and a member of the International Advisory Board to the Securities and Exchange Board of India.

As if all that weren’t enough, she has also previously chaired the Executive Committee of International Organisation of Securities Commissions and chaired the New Zealand Securities Commission, following an executive career in banking and public service. She was awarded the honour of Officer of the Order of Australia in 2003. Diplock recently found time in her hectic schedule to pause and reflect on management and leadership with IML ANZ chief executive David Pich CMgr FIML.

DAVID PICH: You’ve worked closely with senior business leaders in several countries including Australia, New Zealand, the UK, Spain, the United Arab Emirates (UAE), Singapore, China and India. Do leadership styles vary in these different nations?

JANE DIPLOCK: Actually, I think the globalisation of business has given many countries a shared understanding of leadership norms. The exceptional leaders I’ve encountered around the world have all had characteristics that they share. They include talent development, inclusiveness and being able to both lead from ahead and from behind. In other words, in some instances being able to inspire people who work with them and, in other instances, being able to encourage and mentor the people who work with them.


DP: I’m glad you said that because the ability of a leader to inspire people is often overlooked. You’ve been a director and committee member of the Singapore Exchange, the SGX. Singapore is often lauded as a hot spot for innovation. What do you think Australia and New Zealand leaders can learn from places like Singapore?

JD: When I look around the Singapore Exchange, we have board members and staff who come from other countries as well as from Singapore. But the culture there is one of high professionalism and, as you say, entrepreneurship – there’s a great capacity to think outside of the box. I think that those qualities are very important in the business model of Singapore’s Exchange.

But I would be reluctant to somehow say that one nation should be the teacher and another the student. There are plenty of different approaches to innovation out there. Some of those different approaches have to do with culture and history and context. One is not necessarily better than the other.

I often meet New Zealanders and Australians in leadership positions in Singapore, not to mention the UAE, the UK, and the US. Those people bring their own nation’s entrepreneurial flair to bear on their leadership, and they often do it extraordinarily well.


DP: IML ANZ recently collaborated on research called Match Fit, which concluded that many Australian businesses still aren’t ready and able to do business in Asia. You’ve worked in several nations across Asia. What advice would you have for Australian business leaders?

JD: I’d say: be very careful not to generalise. There are so many countries and regions in Asia with unique histories and unique cultures. Each one provides unique challenges and opportunities too. For example, if you’re dealing with a company based in Western China, you will face different issues to those you might come across with a company in Shanghai. You have to go back to what business model you’re working in and what you are trying to achieve there – then align that with the people in the particular country, region or city you are working in.


DP: You have enjoyed a long and distinguished career. Have you had any mentors along the way who were instrumental in your success?

JD: A number of people have been generous enough to take an interest in my professional career. Early on, I worked in the public service for a truly great public servant, the late Gerald Gleeson AC, who headed up the Premier’s Department of New South Wales. He was very constructively critical and positive about my work and gave me highly professional advice about how to refine my leadership skillset. Later, when I worked at Westpac, there were a number of senior women who I looked up to who role modelled what a successful, modern businesswoman could be.

Role models can be very influential. I worked with Dame Quentin Bryce AD CVO who I think most Australians would agree is a fantastic individual. I looked at her career and the leadership she showed. She was a great role model for me. I also admire NZ Prime Minister Helen Clarke who led the country with great ability and took outstanding female Kiwi leadership to the world when she led the UN Development Programme.


DP: You’ve worked extensively in regulatory roles in the financial sector, and as you know in Australia we’ve just had a royal commission into banking. The report was critical of regulators such as ASIC and APRA, suggesting they weren’t strong enough in dealing with misconduct. What did you make of it?

JD: I’ve been both a banker and a regulator so I have seen it from both sides. Unless you’ve been involved in regulation, it’s hard to appreciate the complexities of regulation. There is a balance to be struck between the punitive side and also trying to guide the right behaviour. That said, the misconduct revealed in the royal commission has been quite shocking and was rightly condemned. The client or customer must always come first in banking and financial services.


DP: The royal commission appeared to say that personal greed was overriding any concerns for the customer. It found that workplace culture was an important contributor to that. Now the banks have to put things right. As a leader, what can one do to change a culture like that?

JD: I’d start with the remuneration policy, because fundamentally if greed is driving out customer consideration, then you start with the greed. So I would focus on the remuneration structure of the bonuses and salary increases. That’s one element.

I think the second element has to be training and the leaders themselves. Because if a person came through a culture for, let’s say, a decade of their career, where the primary motivation was the bottom line – the return for the bank – which is then reflected in their personal remuneration, then it’s very hard to turn that around. There can be a situation where some people have had that culture so ingrained that they find it hard to switch to a more appropriate way of doing business.


DP: Many IML ANZ Members aspire to be board directors in all kinds of sectors and industries. Many moons ago, you made that step from management to board level. What advice do you have for Members seeking to make that same transition?

JD: While in a management role, I recommend getting some exposure to governance in a supportive environment where you can learn from people around the board table. I worked with a number of very senior people in those kinds of roles and I learned an enormous amount about how a board director operates and behaves; including the difference between operational involvement and looking from a more strategic perspective. Watching someone who is a master at that was incredibly helpful for me. The other thing I recommend is to get some formal training. IML ANZ, for instance, does a great job in providing Members with an intellectual framework to operate at a leadership level. I think continuing professional education helps to inform your thinking about what practical approaches you might apply in leadership situations. So I’d encourage Members to seek relevant professional development activities to prepare them for directorships.

This article originally appeared in the June 2019 edition of Leadership Matters, IML ANZ’s quarterly magazine. For editorial suggestions and enquiries, please contact karyl.estrella@managersandleaders.com.au.

Cahoots reveal the keys to success in a turbulent environment

By Anthony O’Brien

 

By any estimate, a camping organisation that increases its annual number of camping experiences from 20 in 2015 to 50 three years later has enjoyed phenomenal business growth. IML ANZ Corporate Member organisation Cahoots achieved this stunning business growth and for its achievements earned the 2018 Sir John Storey Catalyst Award for Business Innovation.

The mission-driven, profit-for-purpose organisation Cahoots, and its team of 20 carers, manage a variety of weekly programs, training, and camps throughout the year, catering to children and young people of all abilities. However, in truth, Cahoots’ achievements extend beyond camp numbers. In 2016, Cahoots, formerly known as Kids Camps Incorporated supported 150 families in Western Australia. Today, the registered NDIS provider assists 600 families annually. It also provides disability consultancy and training services to the corporate and government sectors.

Moreover, Cahoots has been able to evolve and thrive in an environment where large numbers of NDIS providers are struggling to remain solvent. Almost one in three (28%) of organisations reported operating at a loss, according to the latest State of the Disability Sector Report from the National Disability Services (NDS), Australia’s peak body for non-government disability service organisations. Of the 44% who made a profit, many said this wasn’t meaningful in relation to CPI.

Cahoots, says CEO Jess Karlsson, has achieved its success by developing new and purpose-aligned revenue streams to create income through fees for services. This income is reinvested in the children, young people and families supported by Cahoots.

“Our mission is to provide opportunities for children and young people with disability and other exceptional challenges, with friendship, skills, and confidence. Moreover, our tagline is ‘connect, learn, celebrate’. So, we break down everything we do into those three words and connect people by bringing them together in camps and programs,” explains Karlsson.

Cahoots also caters to people without disabilities. “We consider ourselves an inclusive recreation and camping organisation, as opposed to a disability service provider. We run some family and carer camps as well.”

Karlsson continues, “We spent much time working on our strategy and realised that disability doesn’t have the same definition. So, a person with a disability isn’t just a person sitting in a wheelchair or isn’t just a person who’s got autism. It’s a lot of people – there’s learning difficulties, social anxiety, or depression. Mental health concerns. People who have trouble socialising.

“We also came to the point where anybody who would experience a challenge accessing the community, or has got some social barrier, those are the people we want to support. This also includes siblings of people with disability. It does include carers and yes, many, many people.”

 

INNOVATING FOR CHANGE

While Cahoots is ramping up its camp and program activities, the Perth-based NDIS provider wasn’t always such an award-winning success. When Karlsson, who has a Bachelor of Applied Science from Central Queensland University and various business diplomas from the UNSW Business School, arrived at the organisation in 2015, it only had two staff members and was offering a fraction of the camps it organises today. Karlsson, also a former CEO of the YMCA of Central Australia based in the Northern Territory, says, “The board recruited me specifically because of my background and commercial knowledge of the broader nonprofit sector and possible funding models.”

Following Karlsson’s appointment, she spent a year with the board on strategic planning, figuring out what Kids Camp Incorporated wanted to be. This process included much consultation with members, staff and volunteers, and the collaboration resulted in the name change to Cahoots, announced in February 2017.

“The traditional meaning of cahoots is about collaboration and working together,” explains Karlsson. “Our mission is about bringing people together. Whether it’s people with disability, or children, or Aboriginal families, or corporate groups, it’s all about just that kind of sense of teamwork, and cahoots is a word that goes with anything. So, it could be Cahoots Consultancy, Cahoots Camps, Cahoots Childcare. Using Cahoots just gave us more commercial opportunities.”

 

SURVIVING AND THRIVING

As mentioned earlier, many NDIS providers are struggling to remain solvent at present. Karlsson believes Cahoots is blossoming in the post-NDIS environment for several reasons. “The fact that we are small has given us the opportunity to build an organisation from the ground up, as opposed to tearing one down.”

The NDS State of the Disability Sector Report 2018 found significant merger activity in the disability sector, with almost three out of 10 organisations saying they had held merger discussions over the past 12 months, mainly to improve efficiency and broaden services. Thirteen per cent discussed winding up in 2018.

Karlsson continues, “Many organisations in the disability sector are known for having reasonably high overheads, and quite a lot of middle management. We’re really lean. As the CEO for example, I was doing things like creating Facebook pages and updating social media. For at least the first year it was me, with only two staff members, who did everything in the organisation.” In other words, the early days of Cahoots mirrored a small business start-up. Karlsson also relied heavily on the theories of management and business guru, Michael Porter.

“Porter talks about strategy being either everything for a very small target market or doing one thing for a large target market,” says Karlsson. “Camping is our core business. We do a few things around it, but camping is what we do. Moreover, we can do that for a large target market whereas most disability organisations tend to go for the opposite strategy, which is to do everything for a small target market. So, all of their revenue is dependent on NDIS funding.”

In contrast, Cahoots has a diversified revenue stream, separate from camping experiences, which includes training and consultancy services to businesses, other non-profits and government organisations. “We show businesses how they can become more accessible and inclusive. Moreover, we’ve had some big wins doing that. We’re expanding that area.” Some of Cahoots clients include Bankwest, the City of Perth, WA’s most significant local government area, as well as other local councils.

If like me, you’re wondering what consultancy and training services Cahoots would offer Bankwest or the City of Perth, Karlsson good-naturedly explains it doesn’t involve instructing bank tellers or council workers about ways to assemble camp tents. “We talk about disability standards and building codes and so on. However, it’s more about giving people hands-on experience about what it feels like to be excluded or have a disability. So, putting people in wheelchairs, or giving people visual glasses that replicate having vision impairment. It gives people the opportunity to know what it feels like to have an impairment, and build their empathy, resulting in a more inclusive business.”

Cahoots also partners with several organisations wanting to offer occasional camps for their clients, which are known as coordinated or ‘contracted camps’. “This is a significant part of our business model and allows for activities and outcomes to be directed by a client organisation, with Cahoots managing logistics, staffing and risks associated with camp delivery,” explains Karlsson.

 

RECOGNITION AND AFFIRMATION

Winning the Sir John Storey Catalyst Award for Business Innovation has proven to be very positive for the team at Cahoots. Karlsson, who recently began studying for IML ANZ’s Chartered Manager (CMgr) designation says the award is a very positive acknowledgment. “It’s good to receive a recognition that we are doing well from an external, accredited peak body such as IML ANZ.

“It’s also good to receive recognition from someone else because we think, internally, we’re doing pretty well. However, it’s good to receive that affirmation, and it also is a great opportunity to continue to develop our staff. There is a handful of our staff who are going to do the professional development that’s available through IML ANZ.”

Karlsson believes Cahoots won the Sir John Storey Catalyst Award for Business Innovation for “its ability to innovate its way through the NDIS, where others are having to go through acquisitions and shutting down”.

“Many organisations are making big, big groups of people redundant. However, we can’t even keep up with recruitment. We’re constantly hiring,” she confirms.

At the same time, Cahoots is heavily focused on staff retention and development, which in combination are major contributors to the NDIS provider’s business success. Karlsson explains, “We’ve done much development with the staff, and we’re generous. We spend about 5% of our overall expense budget on staff development when many companies would spend closer to 1%.”

Cahoots staff are offered interstate exchanges and an annual leadership camp focused on skills development. There are internal workshops for business planning, communication, and sessions devoted to organisational culture. “We did much work on our culture in 2018 and fixed a few problems. A key part of the strategy when it comes to culture and cultivating business acumen has been our decision to recruit from outside the disability sector.

“We’ve got people with backgrounds in early education, recreation, business management, government and who have a diverse range of qualifications,” says Karlsson. “We’ve got a librarian as our office manager, who is very organised, and a fantastically inclusive teacher as a volunteer coordinator. We look for those personal qualities and always consider what type of person we need for a role, and then employ or recruit accordingly.”

 

A LOT MORE THAN MONEY

Working with IML ANZ provides Cahoots with the opportunity to increase the profile of the organisation and the profile of the disability sector. “In community services, whether the organisation is working with a disability or young people, it’s essential that businesses and larger organisations understand what we’re doing, and there are opportunities by working with us and things that we can learn from each other,” contends Karlsson.

“Sometimes large organisations or corporates might think charities don’t know what they’re doing, and that’s why they never have any money. However, it’s not that at all. There’s a lot of brilliant people working in charities because they believe in the purpose.”

Finally, Karlsson advises a manager or leader considering a career in community services to “let go of your salary expectations”.

“Rather, think about the richness that can be added to your life as opposed to how rich you can become financially.” She continues, “I know there’s no reward financially that would take me out of Cahoots right now. I am surrounded by amazing people who share my commitment to our mission, and I don’t think that you can pay for that.”

This article originally appeared in the June 2019 edition of Leadership Matters, IML ANZ’s quarterly magazine. For editorial suggestions and enquiries, please contact karyl.estrella@managersandleaders.com.au.

Steadying the ship: How to lift team performance when morale is low

By Nicola Field

 

The mark of any great leader is to continue delivering the goods during times of uncertainty, pressure and flux. Leadership Matters caught up with three award-winning IML ANZ Members, who each lifted their teams’ spirits when the going got tough.

 

FACTORS THAT IMPACT MORALE

Plain sailing never lasts indefinitely, but the factors that can impact team morale are not always clear cut.

Cindy Welsh MIML, General Manager, Health and Wellbeing at St John Ambulance Victoria, says, “Morale can be impacted by things like corporate downsizing or gearing up for a new contract. Or poor morale may simply have been allowed to fester for some time.”

Paul Hughes FIML points to another way that morale can be sapped. Reflecting on his experience with the Australian Air Force Cadets, he explains, “One of the key reasons people join an organisation is because of its vision and its values. Any deviation from those values can impact morale.”

In Hughes’ case, the challenge of declining morale was the result of stagnation. He recalls, “When I came to 3 Wing (NSW and ACT) Australian Air Force Cadets, nothing had really happened for 10 years. People had lost their way and lost their sense of wanting to deliver an experience that our cadets deserved. There had been no growth, no innovation, and no real sense of direction and purpose.”

 

WATCH FOR WARNING SIGNS

In order to manage flagging morale, it’s necessary to recognise the warning signs.

Welsh explains, “A drop in morale can manifest itself through an increase in sick leave, higher staff turnover or poor performance. Or human resources personnel may be noting an increase in behavioural issues – perhaps more employees treating each other or their managers inappropriately. This can be a sign of underlying frustrations.”

She cautions that leaders and managers may ignore the warning signs because the company or department is performing well. Welsh notes, “This can be a sign of the ‘A-team’ syndrome, where competence and results are high. But they are not sustainable over the long term because people are unhappy.”

 

Welsh adds that business leaders don’t always pick up on how low morale has sunk. “They may ignore the warnings that their senior people have highlighted, or may base their opinion of staff morale purely on their own interactions within the workforce,” she says. “But not all staff are comfortable giving direct and frank feedback to the CEO or business leaders. It’s important to listen to your managers and, if you’ve been given consistent feedback, it needs to be explored.”

 

BE THERE. BE IN THE MOMENT

Leadership during challenging periods hinges on being visible. Welsh says there can be a “propensity to retreat from people during times of change”. But she adds, “Transparency with your employees is incredibly powerful. Don’t hide things from your staff.”

Welsh recommends, “Sit in the lunch room with your people and talk to them. Just listen. Hear people out. And do not underestimate the power of peer-to-peer influence. It can see low morale quickly spread throughout an organisation – even across different geographical locations.

“Think about how you can tap into influencers,” advises Welsh. “Use their powers for positivity, encouraging them to champion your change or cultural initiatives.”

Hughes suggests a similar approach, saying, “A lot of building morale as a leader involves being prepared to listen and see what you can do about the situation. Be prepared to take action on what people say – it’s not a matter of paying lip service.” He too recommends identifying ‘champions’, who will actively support your cause. “They will help to dispel the cynics,” says Hughes. “After all, peer pressure is the best pressure of all.”

BEING COMFORTABLE WITH FAILURE

There is no one-size-fits-all solution to lifting team spirit, and the approaches of the different leaders interviewed for this article proves the importance of a tailored strategy.

Professor Scott Bowman FIML, recently retired Vice-Chancellor of Central Queensland University, believes the social element of workplace teams can have a significant impact. He says, “It’s all about pulling together a group of people, who really get along well so that you have a team that celebrates shared successes and commiserates when things don’t go so well.”

He adds, “Leaders can organise events that allow everyone to take time out for reflection sessions. It’s important to look at what went right, and what went wrong. These are not just planning sessions, they are true reflection sessions.”

Professor Bowman notes, “It’s critical for these sessions to have a social element. I quickly worked out for example, that my team were all incredibly bad karaoke singers but they were all prepared to have a go.”

Perhaps surprisingly, Professor Bowman also highlights the importance of making mistakes. He explains, “It’s important for the team to be comfortable with failure. I’m a believer in the 70:30 rule, which says you can expect success 70% of the time and failure 30% of the time. If you have a failure rate below 30% you’re doing something wrong – you’re not trying enough new steps or strategies.”

Of course, the 70% of successes have to compensate for the 30% of failures but Professor Bowman notes, “The key is to pass this appetite for risk-taking down the line through your team. I was always open with my team about the 30% failure rate, and yes, it is unnerving for some people. However, it pays off when you achieve that 70% success rate.”

Welsh holds a similar view. “Foster a ‘no blame’ culture in the workplace,” she advises. “If people think they’ll lose their job because of a mistake, they will never speak up. Employees need to feel psychologically safe and comfortable about admitting to a mistake. Just as importantly, they need to understand what they could have done better and what they have learned from mistakes. Organisations that embrace continuous improvement and adaptive leadership will be the future game changers.”

The ability to accept mistakes extends to leaders also. Hughes notes, “You can collaborate until the cows come home, but ultimately decisions have to be taken. As a leader it’s about not being frightened to make tough decisions.”

Moreover, Hughes says it is important to be able to say, ‘You know what, we didn’t get it right, so what do we need to do now to change this to get the right result?’

 

HARNESS THE POWER OF PEER REWARDS

For Cindy Welsh, a simple recognition program was instrumental in lifting engagement and workplace morale. She says, “Managers can recognise individual staff, but at St John Ambulance Victoria we introduced the FISH! methodology, which sees peers recognise the efforts of each other.”

As Welsh tells it, prior to the introduction of the FISH! program, St John Ambulance Victoria had peer-to-peer engagement of 52%. Three years later, the program has boosted employee engagement to 95%.

Welsh says, “Thanking and acknowledging peers has now become part of our culture but it has taken time for this behaviour to resonate across the organisation. Increasing peer engagement is a slow burn.”

 

CREATE A BRAND OR LOGO FOR BONDING

For Paul Hughes, leading a volunteer organisation called for a different response. “We set about identifying how people were really feeling, digging deep into the issues at heart.”

He says, “We found there was no visual identity for the Wing – no branding or logo. So we developed a new logo as a visual identifier, one that best reflected the geographical area we served, which was NSW and the ACT.”

From here, Hughes helped to create a sense of purpose with the mantra ‘Setting the standard, leading the way’.

Hughes was mindful of including all stakeholders wherever possible. “By involving various stakeholders throughout the change process we were able to win over the hearts and minds of our people. This in itself became an integral part of boosting morale.” He adds, “It was about getting everyone on board the journey”.

The reward for Hughes has been a steady increase in the retention rates of cadets and staff over the past four years as well as increasing numbers of people wanting to join Australian Air Force Cadets.

With a keen eye for how your people are feeling, and some tailored strategies, it is possible to steer your team through challenging times.

This article originally appeared in the June 2019 edition of Leadership Matters, IML ANZ’s quarterly magazine.