THE BAD SMELL IN FINANCIAL SERVICES

MANAGERS AND LEADERS IN SOME OF AUSTRALIA’S MAJOR FINANCIAL INSTITUTIONS ARE LEARNING SOME PAINFUL (AND VERY PUBLIC) LESSONS

 by Sam Bell FIML

IML’s general manager – corporate services and research

  

They say a fish rots from the head. If that’s true, the stench coming from the top of some of Australia’s largest financial services companies is overwhelming. As with many pundits looking from afar, I’ve been appalled by the findings unearthed by the ongoing Hayne Royal Commission into the financial services sector. Not that it should come as a shock; over many years the industry has repeatedly broken laws and acted immorally, from the bank bill swap rate scandal to the anti-money laundering case, lax compliance breaches, poor financial advice and criminal cartel charges – these are systemic problems across an industry rather than one-off bad eggs acting in isolation.

Of course, the tax payers of Australia would be pleased to know they offer the worst offenders – the four major banks – an implicit government guarantee over their deposit base. A luxury afforded to no other non-government private or public company.

It’s an indictment on the leaders of these organisations that they accept, or willfully ignore inside their organisations, a culture that permeates “poor financial advice, dubious lending practices, mis-selling of financial products, ongoing compliance breaches and an undermining of community trust” (The Australian Prudential Regulation Authority’s words, not mine). How did it come to this?

 

leaders asleep at the wheel

The recent APRA report that examined the frameworks and practices in relation to governance, culture and accountability within CBA was a particular eye-opener – and a must-read for all directors and management executives. It was scathing of a board asleep at the wheel, with inadequate oversight and challenge by board members, unclear accountabilities on executive committees, overly bureaucratic decision-making that favoured collaboration rather than effective outcomes, a poorly practised risk management framework that was under resourced, and a remuneration structure that offered little punishment for senior managers when poor risk or customer outcomes materialised. 

Interestingly, the APRA report found an organisation where everyone said yes to each other. While a collegiate and trusting environment was established, it appears there was little enthusiasm to constructively challenge decisions or raise alarm at matters going on inside the bank. As a result, the report concluded, “the senior leadership was slow to recognise, and address, emerging threats to CBA’s reputation”.

 

we can’t trust the cosy club

No wonder community mistrust of large business is so widespread. They see enormous salaries being paid (the former AMP Chair was on $660,000 per year) to some individuals who are seemingly unaware of commonly accepted moral standards. All this at the same time as wage growth is barely outpacing the inflation rate for the majority of workers.

There is also a perception of a “directors club” operating in Australia and a raft of senior board appointments selected from a small gene pool. As Federal Treasurer Scott Morrison put it, “the public sees a club that comes with directorships in Australia that creates a coziness that’s not very helpful”. While there’s community outrage, the public are not demanding blood on the streets just yet.

It might all be too late for the younger generation. The latest Deloitte Millennial Survey identifies some worrying views on business motivations and ethics. This year’s results show that fewer than half of respondents (45%) believe business has a positive impact on society. In other words, 55% of millennials believe business has a net negative impact on society. I’m in no doubt the headlines, scandals and rotting fish that’ve been widely broadcast recently have contributed to these disturbing results.

The belief that businesses behave ethically suffered a 19% fall in the survey. Deloitte also uncovered a 30% decline in the belief that business leaders are committed to helping improve society. This all coming from our next generation of leaders.

The final outcome of the Hayne Royal Commission is anyone’s guess. There’s no doubt that as the Commission traverses its way through winter and spring there’s going to be a lot more pain inflicted on what were once some of Australia’s most trusted brands. The revelations of customer mistreatment and illegality will continue to dominate the 24-hour news cycle and further erode the community’s confidence in many of our business leaders.

 

RADICAL RESTRUCTURE REQUIRED

Further unpacking APRA’s report into the CBA, it made 35 recommendations (all have been accepted by the CBA’s leadership team) including a more rigorous board and executive committee level governance of non-financial risks, embedding accountability standards, raising the authority of the compliance functions, and making two key changes to culture: asking the question of “should we” in relation to all dealings with and decisions on customers, and a cultural change that “moves the dial from reactive and complacent to empowered, challenging and striving for best practice in risk identification and remediation”. Sound advice.

So where to from here? Malcolm Broomhead, Chair of Orica and a non-executive director of BHP summed it up well when speaking to the Australian Institute of Company Directors, noting: “We need to somehow rebuild that trust and significant radical restructuring of boards and companies – particularly in relation to remuneration structures – is central to that process”.   

 

MAKE YOUR MARK. GO CHARTERED 

Chartered Manager (CMgr) is the internationally-recognised professional designation accrediting management and leadership excellence.
The highest status that can be achieved as a manager and leader, it allows managers to professionalise their leadership skills and stand out in a competitive global market.
Focused on Continuing Professional Development (CPD), Chartered Manager is awarded on experience, expertise and a commitment to management and leadership.

For more details visit Chartered Manager

Everything you need to know about Member Exchange

The Institute of Managers and Leaders’ Member Exchange mentoring program.

  

The four-month program is a fantastic opportunity for IML members to share their knowledge and skills, while giving something back.

 

Since the complimentary program’s inception four years ago, some 2,000 mentees have benefited from being paired with a mentor – a role which about 1,500 members have taken up, many several times.

Margot Smith FIML, General Manager, Membership – Strategy and Engagement at IML, says Member Exchange pairs up professionals from a broad range of industries, which can range from the resources, education, finance and not-for-profit sectors to name a few, to help with a range of career aspects.

“It could be for coaching purposes. For one person new to the workforce, they might need help enhancing their LinkedIn profile. For others, they might need advice about talking to their manager about a change in role and responsibilities. It could be a raft of things, but it is usually about general management and leadership development,” she says.

 

Smith explains the key competencies of being a mentor are listening, developing a mentee’s confidence and providing a different perspective.

“You are not there to give answers, you are there to coach and lead mentees to solutions,” she said. “It could be providing clarity with goal-setting if they are having difficulties. Or helping them to see a pathway if they are currently feeling blocked.”

The program requires contact between the mentor and mentee once or twice a month.

A desire for career development and an eagerness to learn are Smith’s top tips for mentees wanting to get the most from their mentoring experience.

 

“Don’t be shy about what you would like to get out of the program,” she adds. “You need to be mindful that the mentors are volunteers and that they are giving back. But your career development is no one’s responsibility but your own — so be hungry for management and leadership development. Take the mentor’s advice and run with it. And importantly, do any ‘homework’ recommended – whether it’s reading an article, freshening up your LinkedIn profile or catching up with someone new to your network.

“Make sure you are honest with yourself, that you are setting goals and challenging yourself to learn.”

 

   

An opportunity to give back was what spurred Barry Gordon CMgr FIML to share his wisdom and knowledge as a mentor. Impressed by his experiences, he recently completed a stint as a mentee.

 

Humbling, positive and rewarding are the words Barry Gordon uses to describe his involvement with Member Exchange.

Gordon, a contracts and compliance director with Transport for NSW, said volunteering as a mentor felt like an obligation he should meet.

As he puts it, “If you have achieved some positive outcomes in your life, it is up to you to give back to others who may be struggling.”

 

His two mentoring experiences involved coaching and guiding a young woman in taking over a family business, while the other stint saw him assist an engineering project manager in ways to secure project director roles, via help with cover letters and networking.

He has remained in touch with both mentees, and says seeing the positive changes to their careers was rewarding.

“I have had nice thank you emails and we’ve caught up for a meal and coffee to see how things are settling in,” he says. “It’s rewarding seeing posts on LinkedIn of past mentees’ achievements.”

The positive mentoring experiences led Gordon to consider how he could personally benefit from Member Exchange.

“I started to think, ‘what else can I learn from this and what is in it for me on the other side?’” he says. “I probably looked at it like, I am in the same boat as my mentees. I am in position ‘x’ and looking at what is position ‘y’ for me.”

He said his journey as a mentee helped with gaining a different perspective, while also providing him with a sounding board from his mentor; a semi-retiree who worked in consultancy.

 

Gordon believes Member Exchange is successful because it bridges a gap. “I have found, and certainly with the mentees I have been linked to, that there is just a big gap. People want help but don’t know where to get it,” he says. “These networks don’t necessarily exist in their day-to-day roles.

“As a mentee — reach out, there’s a powerful network of people in IML that are willing and able to help where possible. So make use of it.”  

 

  

About the program:

 • All IML individual members are eligible (excluding IMLa members).

• Apply via the website: managersandleaders.com.au/mentoring-program/mentees

• Mentees must provide information about what their objectives are. E.g. Career development, returning to the workforce after having children, assistance in
career development.

• For more information please email mentoringmanagersandleaders.com.au or phone 1300 661 061.

SOLVING THE PERFORMANCE MANAGEMENT PUZZLE

WHEN YOU NEED TO PERFORMANCE MANAGE AN EMPLOYEE, PUT A CLEAR AND THOROUGH PROCESS IN PLACE. Photo by Sally Elford.

 

Performance management appears to be universally despised. From the employees who are subjected to it, to the managers who have to carry it out, it seems no-one enjoys the process of documenting an employee’s failings and trying to force an improvement. At best, it may be deemed a necessary evil that most managers will have to face, sooner or later in their careers.

The process of performance management is also a hotbed for all kinds of disputes, with bullying and harassment allegations and stress-related claims a not uncommon outcome. With this in mind, how can managers safely navigate the performance improvement process while protecting themselves and the company from liability? A key fact to keep in mind is that “reasonable management action, carried out a reasonable manner”, is expressly excluded from the definition of workplace bullying1. Similarly, a worker’s compensation claim for psychological injury can be defeated if the condition has resulted from “reasonable action” of the employer with respect to performance appraisal or discipline2.

The recent case of Miroslav Blagojevic v AGL Macquarie3 provides some useful examples of how to ensure that a performance management process is carried out in a reasonable manner. The complainant in this case was an engineer who was placed on a performance improvement plan (PIP) for three months. Over the course of the PIP, the manager realised that the engineer’s health was being adversely affected by the PIP process. The manager attempted to address this issue by:

  • Reiterating to the engineer that the PIP was not a formal warning, but a process to assist him in improving his performance and output;
  • Offering the engineer access to the employer’s Employee Assistance Program (EAP)
  • Offering the engineer the manager’s personal support and coaching
  • Referring the engineer to the employer’s return to work co-ordinator
  • Obtaining information from the engineer’s treating doctor about his mental health, and
  • Allowing the engineer to take an extended period of annual leave.

 

When the engineer’s performance did not improve to the required standard, the manager implemented a revised PIP, for another three month period. The revised PIP was ultimately never completed, as the engineer was diagnosed with an adjustment disorder and became unfit for work.

The engineer then filed an application with the Fair Work Commission (FWC) for an order to stop bullying. He claimed, amongst other things, that:

  • His performance was not deficient in a way that justified being put on a PIP
  • The PIP was unreasonable because three of the five areas of underperformance identified by his manager were not within the scope of his role, and
  • Many of the actions contained in the revised PIP were impossible for him to execute.

 

The FWC denied the engineer’s application and found that although the engineer had a reasonable belief that he had been bullied, the employer had engaged in “reasonable management action carried out in a reasonable manner”.  Management action does not have to be perfect, or the most acceptable course of action, it need only be objectively reasonable in the circumstances. The steps that the manager took throughout the process to take into account the engineer’s health demonstrated that he had, in fact, implemented the process in a very reasonable manner.

It is worth noting that the manager in this case also took detailed notes of performance conversations that he had with the employee. These notes were submitted as evidence in the bullying case, and helped to prove that the steps he had taken were reasonable in the circumstances.

 

Lessons for the Performance Management Process

  • The PIP should be carefully drafted to specifically identify areas of underperformance and relate them to the job description for the relevant position
  • Notes should be taken of performance conversations with employees
  • Support should be offered to the employee in the form of an EAP or personal support and coaching
  • If the employee is affected by medical issues, seek further medical advice and modify the PIP if appropriate.

 

ELIZABETH TICEHURST IS SPECIAL COUNSEL

– EMPLOYMENT AT KPMG.

 

1 Fair Work Act 2009 (Cth) s789FD(2)

2  Workers Compensation Act 1987 (NSW) s 11A

3 [2018] FWC 2906

 

When fiction masquerades as fact

The Cambridge Analytica scandal left ethical questions for all marketers and business leaders to ponder.

By JANE CARO

When I first started out in advertising back in the Stone Age (the 1980s), I remember having to deal with clients who wanted me to guarantee that my little 30-second TVC, radio spot or print ad would infallibly convince anyone who watched it to buy their product. My stock answer was to say that I never gave guarantees. I couldn’t even guarantee that my kids would grow up to be worthwhile human beings, I’d tell them, but I was still in there pitching. I’d finish up by saying that there was no foolproof method of getting people to part with their money against their will and, if anyone ever came up with such a thing, it would soon be illegal to use it. My, how times have changed!

If the fuss about data crunching, opinion manipulating organisations like Cambridge Analytica is correct, it seems someone has come up with such a method and it is not – as yet – illegal. The company itself is now defunct but no doubt others will use their techniques to undermine political candidates or influence purchase decisions (a vote is a purchase decision) in ways we previously thought impossible. Given the grilling of Facebook supremo Mark Zuckerberg by the US Senate committee looking into allegations of Russian interference in the 2016 presidential election, such opportunists had better move fast. As lawmakers gather in the wake of the scandal it looks likely that my decades-old prediction that such sophisticated manipulation would get banned may be vindicated. However, wherever there is demand, there is supply, so illegal or not, I suspect such techniques – now tried and tested – may prove too tempting for some.

And you can understand that temptation. Along comes a whizz bang organisation incorporating the name of a world-famous university (no actual connection, of course, just the same name), offering you the opportunity to understand what motivates consumers in ways marketers have previously only dreamt about. And I have heard at least one well known Australian business leader admit they were approached by Cambridge Analytica about a project. Sensibly they declined the approach (anything associated with Breitbart founder and ex-Trump adviser Steve Bannon smells pretty stinky). I’ll bet they are deeply relieved they did now.

And therein lies the trick. If something looks too good to be true, we used to say it probably was. Now, given the apparently limitless abilities of technology, it may be true but it is probably a very bad idea.

Anything that can manipulate people without their knowledge, anything that masquerades as editorial, or a comment with no hidden agenda but which is actually a commercial message that has been bought and paid for is unethical. Anything that presents lies as facts, that sets out to distort and undermine without clearly identifying its source and agenda, anything that calls itself news, but is, in fact, propaganda, is unethical. If you write an opinion piece (I write them all the time, see this column) that is fine, as long as it is presented as such.

There is nothing new about people flying very close to the wire pretending advertising is editorial. I once complained to the Press Council about a regular insert in a major newspaper that called itself “a special supplement”. It was clearly an advertising supplement and, I believe, should have been labelled that way. Advertising supplements are a revenue earner for media publications, and that’s fine, as long as they are clearly identified. The publication writes editorial about a particular sector or industry (travel, real estate, private schools) in return for members of that industry taking paid ads in the supplement. As you can imagine, the editorial is rarely critical and the more an advertiser pays, the more mentions they get. No problem, but a “special” supplement it wasn’t. Sadly, my complaint was not upheld.

I have always argued that advertising is the most honest of the dishonest professions because you all know we’re trying to sell you something. Or you used to know. I am not so sure now and I am glad that I am no longer in the industry because the lines have become so blurred. Indeed, I am so paranoid about this that I refuse to boost my posts on my public Facebook page (oh, OK, I am too stingy, as well), because I don’t think they are ads.

I have been asked to use my social media following to promote services occasionally (reminding older women to get a mammogram and younger women to look to their superannuation so far) and I’ve been paid to do so, but I have been punctilious about making that clear when I send a tweet or write a Facebook post about them.

For me, the line is clear. It’s fine to sell so long as you are upfront about it and – this is crucial – do not set out to gain an added advantage by deceiving. The minute you hide something – who is paying you, that anyone is paying you, or that what you are publishing is false – then you are being unethical.

It’s fine to research your audience. It is important to understand them and learn how they see the world. If your work, skill and insights help you to attract their attention to your message, I have no problem. But the minute you hide your commercial agenda or conceal your ulterior motive, not only is it wrong but one day – and this is the only guarantee I’ll give you – it’ll come back and bite you on the bum, hard.

Jane Caro runs her own communications consultancy.

She worked in the advertising industry for 30 years and is now an author, journalist, lecturer and media commentator.

Breathing new life into a regional community

By Nicola Field 

In country towns the local school is often a pivotal hub. So when the public school in Learmonth, located 130 kilometres west of Melbourne, closed its doors for the last time in 2012 the 400-strong community felt the pinch.

Fortunately, Rob Sorros FIML and his colleagues at Mapfort Consulting have now found a novel solution that will breathe life into the site of the former public school – and create a new hub for the community at the same time.

Part of this solution will be a small scale cidery with capacity for end-to-end production – from apples grown at the onsite orchard (currently the school oval), through to processing and retailing of cider and related products at various other facilities on the school grounds.

The other part of the solution, Soros explains “is the provision of vocational training, where students can learn a variety of skills from propagation to retail trades in a hands-on environment.”

The venture will be run as a social enterprise with a charitable foundation established to create social impact through social seed venture capital, advocacy and local economic development work. A total of $250,000 of direct social impact is expected to be realised locally (outside of the operation) in the first year of operations.

Not surprisingly, Soros describes the local community as “very supportive” of the project, which is still waiting on government funding to determine the scale of production.

For Soros, the project involves some unique challenges. “We’re effectively taking three businesses and putting them into one – a philanthropic foundation, cidery, and learning centre.”

The nature of the undertaking as a social enterprise brings its own set of hurdles. “I believe social enterprises need to be nimble and agile while striking a balance between purpose and profit,” notes Soros.

He continues: “A minimum of 50 per cent of our profits must directly address the social issues the foundation was set up for. That effectively means we need to be able to survive on the remaining surplus.”

In addition to juggling commercial viability and sustainability, Soros points out that social enterprises have quite different benchmarks compared to profit-based organisations.

“Profitability is key but we must also ensure our dual mandate to model replicable social impact and rejuvenate a regional community is met. This raises the question how we measure the success of the venture. We are measuring financial and social risk-adjusted returns using the latest social impact measurement frameworks developed at the Asia Pacific Social Impact Centre at the University of Melbourne. Having metrics that matter is very important to us.”

With production planned to kick-off in early 2019 one thing is for sure: the community has a brighter future ahead, and it’s a fair bet the townsfolk of Learmonth will be celebrating with a glass of the newly minted local drop.

MAKE YOUR MARK. GO CHARTERED 

Chartered Manager (CMgr) is the internationally-recognised professional designation accrediting management and leadership excellence.
The highest status that can be achieved as a manager and leader, it allows managers to professionalise their leadership skills and stand out in a competitive global market.
Focused on Continuing Professional Development (CPD), Chartered Manager is awarded on experience, expertise and a commitment to management and leadership.

For more details visit Chartered Manager

THE SIX LAYERS OF INTENTIONAL LEADERSHIP

BY David Pich FIML and photo by roy scott

  

One of the real privileges of leading the Institute is that I’m frequently asked to present at conferences and events. Of course, I do my very best – diary permitting – to say yes.

 

I have to say that the most enjoyable aspect of any presentation I deliver is almost always the Q&A session that follows. It’s an absolute pleasure to hear the views of the many and varied audiences (from association members, to teachers, to public sector workers, to MBA students) on management and leadership practice. Of course, like all presenters, I’m always a little nervous about the “curly questions” that might be thrown my way. These are usually those questions that reference specific companies or leaders with the ongoing Royal Commission into the financial services sector a very good case in point.

 

But the question that I always enjoy answering – and the one that I am invariably asked, albeit in a variety of slightly different guises – is “what can managers and leaders do to improve their management and leadership competence?”.

 

It was all the way back in late 2017, when I was asked this question at a conference in Brisbane, that I first used the term “intentional leader”. I used the word intentional to illustrate that managers really need to commit to being better and doing better. I wanted to emphasise that, in the vast majority of cases, good management practice doesn’t happen by accident. Of course, it can “just happen”. Some managers and leaders are fantastic at what they do because it comes naturally to them. For them (the lucky ones!) management is an effortless breeze.

 

Unfortunately, the reality is that the lucky ones are not the norm. They are the tiny minority. Just as the athlete who breezes effortlessly into the first team or who runs a sub-three-hour marathon with next to no training are the tiny minority, so the leader who leads well from day one is a very rare occurrence. For the rest of us – mere mortals – competence and good performance are a result of hours, days, weeks, months and years of practice. Improvement only occurs because we commit to being better. And that commitment is about intent.

 

Just as organisations need a vision and a strategy to head towards that vision, managers and leaders need a vision of who they want to be and how they want to manage and lead – and they need a strategy that will take them there.

 

So, when I get asked what leaders can do to be better, I refer to what IML calls “the six layers of intentional leadership”.
These are six practical things that managers and leaders
can do to improve.

 

The six layers of intentional leadership

1. Listen and ask questions. Leaders speak last

2. Find a mentor

3. Commit to self-awareness

4. Think before you act. Find time to make decisions

5. Commit to professional development

6. Reflect

 

And finally, the all-important (and yet so often forgotten) seventh layer; good leaders learn to say “thank-you”.  

 

BY David Pich FIML, chief executive of the Institute
of Managers and Leaders

 

 

 

 

Curious about how IML Membership works, and what it costs? Visit managersandleaders.com.au/join-iml/ to find out more

 

chief executive of the Institute
of Managers and Leaders

Thrown in the deep end of management

What happens when you find yourself managing people… by accident?

Not all managers start out with aspirations to become a leader. For many, it’s a role they find themselves in by accident; one for which they’ve never been adequately prepared. It can happen if you stay at a company for a long time, and rise up through the ranks ‘by default’ as your superiors move on. It can happen if you start a solo enterprise that suddenly morphs into a bigger business. It can even happen when you’re assigned new duties during a company re-structure – and no one bothers to ask if you’re able or willing to perform them.

All the scenarios above can place a person in the uncomfortable position of being an ‘accidental manager’. While some rise to the challenge and quickly find their feet, others are quite conscious that there are things they ‘could’ or ‘should’ be doing to manage people better – yet they have no idea what those things are. In Australia, management has previously been a somewhat invisible skill; something people assume we can all do naturally (much like raising a baby that’s been suddenly thrust into your arms).

Unfortunately, this couldn’t be further from the truth. Good managers aren’t born, they’re made. It’s not enough to rely on the learning by ‘just doing it’ – leadership calls for skills that must be taught. Things like developing skills in others, performance management and conflict resolution. Skills to cope with situations that, outside management, you’re unlikely to encounter.

It’s easy to see why accidental managers are costing their employers money and lost productivity. Managers have the greatest single impact on staff retention and engagement. Gallup recently identified that managers account for at least 70% of the variance in employee engagement. It’s no wonder that 91% of Australian CEO’s believe leadership skills are the number one priority for learning and development.

The issues with Australia’s laid-back attitude to management is that legions of accidental managers are going about their business, with a creeping uncertainty that they’re actually ‘doing it right’. It was this key insight that inspired (IML) to re-brand last year with such a pointed focus on intentional leadership – and it’s this issue that we’re working hard to address.

So how do you avoid becoming an accidental manager?

For those who are on the brink of management (or hope to be soon), it’s worth taking a look at our Foundations of Intentional Leadership Program. This is a practical program where emerging leaders come together and learn the core fundamentals to get them off on the right foot. Over 12 weeks, including six face-to-face sessions, the program offers greater self-awareness through diagnostic tools, one-on-one coaching and mentoring, as well as access to IML’s impressive online Learning Management System – plus, the cost includes the annual IML Membership fee, making it easier to stay in the leadership loop once the program finishes.

“We know that people are being thrust into management roles, often because they’re great individual contributors – but this is not the same as managing a team,” says Sam Bell FIML General Manager, Corporate Services & Research chat IML. “These people really need support, especially if they’re suddenly having to manage people who were previously peers or friends. Through the program, we look at all sorts of challenges that can crop up, such as having difficult conversations, and provide practical ways to approach them. It’s a great way for emerging leaders to get the type of support they won’t automatically receive at work.”

And what if you already are an accidental manager?

“It’s never too late to get some formal training,” says Sam Bell.” Even if you’re a seasoned manager who’s confident in your skills, it can help to have some external support and recognition. We introduced the Chartered Manager  professional accreditation in Australia for this very reason – it’s an internationally recognised designation that gives experienced managers the chance to demonstrate competence and professionalise their skills.”

Wherever you are in the leadership journey, it’s important to know you’re not alone. Managing a team can be tough – but it doesn’t have to be an isolating experience. By connecting with networks like IML, you can get the learning through innovative leadership programs and meet people who get what you’re going through. And by getting your leadership foundations right from the start, you can enjoy a career that’s full of intent and purpose – and success that’s far from accidental.

To find out more about the Foundations of Intentional Leadership join us on July 17th for a free webinar. Register today!

There are limited places available in IML’s Foundations of Intentional Leadership Development Program. Register today: https://managersandleaders.alphasys.com.au/foundations-intentional-leadership/

CAREER DOCTOR: AN IML SPECIALIST TAKES A PROBLEM TO TASK.

BY PETER CULLEN MIML

Stepping out of your comfort zone and into the unknown

It is quite normal to have our thoughts and emotions hijacked by anxiousness when preparing to take on a new role, project or team. We can become overwhelmed with these thoughts and emotions to the point where we are not thinking clearly or perhaps even rationally. And we haven’t actually done anything yet.

Let’s take a step back in time. The people who made the decision to place this higher level of responsibility on you did so because they believe you are the best person for the role. They believe you are capable of achieving their desired outcomes. They believe you have the capacity to learn and grow in this new role and to be the person they need to grow the company in the future. They should also understand that learning and growing takes time, commitment and support from both sides.

 

There are some essential building blocks that will help you move forward with confidence. 

 Clarity: Seek as much clarity and truth about your role, responsibilities and reporting lines as possible. There is a need for discussions on expectations of those you will be reporting to, those who report to you and vice versa. Research the teams’ history to understand previous concerns and successes. When you have this clarity, you are better able to ascertain your own strengths that will support you in your new role and more clearly identify your development needs. Having this knowledge removes the unknowns and diminishes your potential to be anxious from over thinking the reality of the role.

 

Action: We will often need courage to make decisions and take action in areas which are new to us. Having personal one-on-ones with team members is a great way to create a mutual understanding of each other as people and respective capabilities. Exploring each other’s thinking typically results in better ideas while making it easier to assign tasks, delegate and to build a collaborative environment which often leads to more substantial outcomes. Your team and manager will expect you to be decisive and take action when necessary.

 

Practice: Remember, taking action also means we make mistakes. How we react to a mistake makes an enormous difference to establishing self confidence in our role. Knowing it is an inherent component of the learning process means we take the opportunity to be open and honest about our mistakes, seek advice or greater understanding from the person we report to, a peer or colleague and then implement it. Through consistent practice, focus and determination we will learn to get it right and continue to progress in our role. Honest self-reflection and feedback from others will help to continuously improve our current and newly learned capabilities whilst identifying new opportunities for personal and professional development.

 

Authenticity: Knowing and living your personal values goes a very long way in establishing yourself as the person you really are rather the person you believe other people want you to be. Being open, honest and transparent in your dealings with others in an appropriate and respectful way helps others to see you as a person more worthy of their trust. And that is the foundation stone for people believing in you as a role model.

 

Be true to yourself and move forward quietly, calmly confident

 

 

 

Peter Cullen is an education and training facilitator who teaches IML Education and training courses.

Each three-day program engages participants in developing and implementing their capabilities as managers and leaders.

 

 

 

MAKE YOUR MARK. GO CHARTERED 

Chartered Manager (CMgr) is the internationally-recognised professional designation accrediting management and leadership excellence.
The highest status that can be achieved as a manager and leader, it allows managers to professionalise their leadership skills and stand out in a competitive global market.
Focused on Continuing Professional Development (CPD), Chartered Manager is awarded on experience, expertise and a commitment to management and leadership.

For more details visit Chartered Manager

The courage to lead

IN 2007, LORNA WORTHINGTON PUT HER HAND UP TO BE A CANDIDATE FOR ELECTION TO THE CITY OF BUNBURY COUNCIL IN WESTERN AUSTRALIA. THAT WAS WHEN SHE REALISED INVESTING IN HERSELF — AND HER LEADERSHIP SKILLS — WAS A LOGICAL STEP IN SELF-DEVELOPMENT.

STORY NICOLA FIELD | PHOTOGRAPHY CAMERON RAMSAY

Lorna Worthington CMgr FIML is Managing Director and Principal Strategist of management consultancy Baker Worthington. Her interest in developing management and leadership skills began many years ago when she was elected to the City of Bunbury Council in Western Australia. At that point Worthington enrolled in a Master of Leadership and Management because “I felt I owed it to the community to be the best leader I could be”.

Worthington admits the investment in herself paid off. And her leadership journey has continued to this day. She recently become a Chartered Manager (CMgr) through IML, a process Worthington describes as “amazing”. She takes up the story saying, “Despite having a number of other professional qualifications I’m sure I didn’t get off any more lightly than others in relation to the questions the assessors asked and the thought I had to put into answering each question.”

“That process enabled me to reflect quite considerably on the business and on the people that work with me – and what it is I really do.”

Along with the global recognition and portability of the qualification, Worthington says a key benefit of becoming a Chartered Manager through IML was reflecting on pivotal issues such as “am I saying or am I doing? And if I am doing, what impact is it having?” She explains, “This was very much the essence of the questions that were put forward.”

For Worthington, gaining formal recognition of her skills as a manager and leader was a critical driver. “Management and leadership is not recognised as a profession in its own right,” she notes. “I think the Chartered Manager designation is at least an attempt to rectify that. The landscape is changing and it’s important that individuals can validate their experience, so the designation is definitely helping to carve out a profession in its own right.”

From here, Worthington is focused on continuing her professional development as a Chartered Manager. She says, “Professional development is about using, developing and expanding on what it is that we are learning. That’s a real shift; not just doing it, but holding each other to account for doing it.”

Recently, Margot Smith, IML’s General Manager Membership — Strategy & Engagement, caught up with Lorna Worthington to discuss her views about leading, managing and inspiring both her team and her clients.

Margot Smith:   Lorna, in business you’re effectively selling the talents of your team. How do you get your people to buy into the values of the organisation?

Lorna Worthington:   I built the organisation based on what I have learnt over many years. Selling your organisation is easy if you really believe in your values, and people can see the values transpiring. Qualities such as honesty, integrity, courage, valuing people and creativity – these are all things that people will readily buy into. As long as you espouse these values, people can see that you operate by them.

My team, the people who work with me, are fabulous and they’re all unique with lots to contribute. They absolutely live and breathe our values. It’s pretty easy to get engaged with us, because you feel it, you don’t just see it.

MS:   Do you recruit based on these values or do you believe top talent can be encouraged to take on an organisation’s values?

LW:   I have a unique way of having people come and work with us. I like to understand what really motivates a person, what they’re passionate about, and what it is they think that they have to offer. Based on that I dare to ask, “what is it you think that Worthington could offer if you came on board?” Job candidates get quite excited about that. So, I often recruit people based on what it is that they’re passionate about and what it is the “Bank of Worthington” can sell to them.

MS:   How do you live up to valuing the individual on a practical level?

LW:   Everybody has their own way of working; everyone has their own habits and idiosyncrasies. We encourage each other to be who we are and to be valued for that. When you get to know people you end up in a great place because people are a lot more giving and it creates some resilience.

The other aspect around valuing individuals is in relation to how you operate. It doesn’t matter what level a person is if we’re labelling people, what matters is that they have the freedom to speak and to create and to have a voice. We try to flatten the organisation in relation to brainstorming because it doesn’t matter who you are, you can contribute to making the organisation successful.

MS:   It sounds like you create an environment where everyone can bounce off each other and thrive on each other’s individuality, thoughts and ideas. Could you describe how it feels to walk into that culture and environment?

LW:   The feeling is one of ease. When you come into the organisation you see people engaging with each other, people are spontaneous, they are respectful, and they encourage each other. The atmosphere is quite energetic, electric and there’s passion around. You can feel the camaraderie, the creativity and you can feel the willingness and the want to be there.

I’m privileged having people like that around me. They go above and beyond on a regular basis. It’s just amazing, that essence, that sense of engagement.

MS:   Not everyone is comfortable with change, yet you encourage individuals to contribute to the future. How do you develop and encourage the spirit of innovation among your team, and also among your clients?

LW:   We don’t talk about “change”. There’s a western way of talking about change and it’s very linear, with a beginning and an end. But most people feel that the end never actually comes, so don’t worry about it because someone else will change their mind shortly, and so on.

I’m very cautious about this notion of change. We talk about the evolution whereby, in fact, as things evolve they grow into whatever that new end point might be. People aren’t then pressured with the stress of change, they embrace it. They embrace the feeling of continually contributing to whatever the end point is.

MS:   I like that because there’s often a negative connotation with change. People talk about change fatigue. What about that spirit of innovation in general? How do you foster an environment of innovation?

LW:   First of all by valuing your staff. Valuing people at all levels, all walks of life. Grand innovations come from conversation, from an environment of safety, an environment of non-competitiveness and certainly non-ego.

MS:   The pitfall of being a micro-manager can be hard to avoid for those coming up through leadership ranks. How can leaders break away from this and take a big picture view?

LW:   It’s important for leaders and managers to know themselves really well and to be accountable for how people develop around them. Micro managing tends to come from a personality trait – and sometimes, insecurities. I find it particularly useful when you know you have a particular trait to call it out. That way, if you’re micro managing then your staff would know it, and secondly, someone would have the courage to say “Could you give me a little bit of extra leeway on this”, or “I don’t need quite that much supervision”.

I think it’s important for leaders and managers to be reflective and to understand their impact on others.

MS:   Negotiation is obviously a key skill. What do you believe are some of the key aspects of being a good negotiator?

LW:   Honesty, integrity, respect, don’t win at all costs. Negotiation is an art. There’s a fine line between negotiation and selling. If you’re genuinely negotiating, then you’re looking for a good outcome for all parties.

MS:   For emerging leaders thinking about moving into strategy or management consultancy, what should they consider on their career path?

LW:   Definitely consider organisational behaviour, but more than just the theory side of it. When you are going into an organisation and coming in as the assumed expert, you don’t actually have to be the expert, but you have to be good at hearing what people are saying. You have to understand the dynamics of the organisation, what’s really going on. If you’re going to be responsible for assisting people who develop strategy you must get in deep and understand what it is they’re trying to achieve.

MS:   What kind of skills does a strategy management consultant need? We talked about an open mind, and active listening skills. What else do you think there is?

LW:   That’s an interesting question for me, who generally recruits based on a person’s passion and whatever skill set they bring to an organisation at any point in time. I often talk about leadership management being a skill in its own right. It’s the same as being an engineer or a nurse, it’s just not recognised that way. If you do leadership management well, you can do anything. You can learn the subject matter.

What I look for are people who have the ability to lead and to manage, and get the best out of different teams.

You’re also leading and managing organisations because people look up to you, and people try to have a voice through you. So managing the voice in a really appropriate way that benefits the organisation and keeps the person or people sharing that information safe is quite an art.

Leadership in 60 seconds

Facebook, Twitter, Instagram or Snapchat?
Facebook.

Phone, Email, or face-to-face?
Definitely face-to-face.

Which leader do you admire and why?
Julia Gillard. She’s done amazing things and she’s been so courageous. She has absolutely put herself out there and has copped a lot for it but is still resilient and is still motivating to people that aspire, women especially.

Sum up your view of leadership in just three words.
Courage, integrity, and resilience.

Complete the sentence, leadership matters because…
You impact people’s lives, every day.

Which three guests would you invite to dinner to discuss leadership?
Napoleon, Albert Einstein, and Martin Luther King. I think that you would learn a whole lot in your living room.

MAKE YOUR MARK. GO CHARTERED 

Chartered Manager (CMgr) is the internationally-recognised professional designation accrediting management and leadership excellence.
The highest status that can be achieved as a manager and leader, it allows managers to professionalise their leadership skills and stand out in a competitive global market.
Focused on Continuing Professional Development (CPD), Chartered Manager is awarded on experience, expertise and a commitment to management and leadership.

For more details visit Chartered Manager

The magic of Mimi

Photo: Dr Donna Odegaard and her mother, Edith LeFrancois Bessen.

Dr Donna Odegaard AM was silenced as a child but has since dedicated her life to ensuring the voices of Indigenous Australians don’t suffer the same fate.

Story by Tracey Porter.

Dr Donna Odegaard is an unlikely business leader.

Birthed into a large but impoverished family in 1953, her early years in the outback were spent living in a tent before the consequences of the hardship the family endured saw her torn from the familial bosom and placed in an institution, thousands of kilometres away.

Despite her humble beginnings, Dr Odegaard has risen to become one of Darwin’s most respected business women with interests across everything from fashion and interior design to primary production and property development.

Yet it is her work with the Indigenous community – rather than her commercial acumen – that continues to afford her the greatest satisfaction.

And it is inspiring leaders such as Dr Odegaard who have contributed to the celebration of the role women play in the community.

Having dedicated the past three decades to increasing Indigenous opportunities across a broad spectrum of sectors including native title, media, education, training and employment, Dr Odegaard is an Indigenous Alumni Award winner, an Australian of the Year nominee and a Member in the General Division of the Order of Australia for significant service to Indigenous cultural heritage.

The woman her grandchildren fondly refer to as “Mimi” possesses a Masters in Law and Aboriginal Land Claims and also holds a PhD on Treaty – a background which saw her play an instrumental role in securing the Larrakia Kenbi Land Claim.

A twice-published author, the respected Larrakia elder is the founder and CEO of Aboriginal Broadcasting Australia but also sits on numerous business and community boards including the Indigenous Land Corporation, the Indigenous Business Trans-Tasman Delegation and the government driven Indigenous Reference Group Developing the North, headed by federal minister Matt Canavan.

When pushed to define the driver for her success, Dr Odegaard credits her austere upbringing with offering her a perspective not normally enjoyed by others in leadership positions.

“For me it was about being in survival mode. It was tough juggling motherhood, rent, sewing but I worked hard. I had to… but what that has given me is a great appreciation of, and priority for, family and hard work. I’m more concerned about what I can do than what I can’t, what I have than what I don’t.”

Aged under two when she was sent to the girl’s home and seven when she was released, Dr Odegaard says despite the fact some of her sisters were also present, at the time she felt forced to build her own support network.

“No one tells you what a family is. It was a difficult time particularly for my parents. I had a black man who would visit me and cry and I didn’t know who he was. Then I had my mother who was trying to remain close to all four of her daughters until such time as she could take us all out. But because I was institutionalised, I became a very good listener because that’s how I was groomed, I couldn’t speak and had to remain silent.”

In 1970 Donna, by then a 17-year-old mother-of-one, found history repeating when she found herself alone once again following her husband’s conscription into the Vietnam War. Deprived of income, the teenager was forced to think on her feet in order to provide for herself and her child.

In possession of little else but an extraordinary amount of determination and an old sewing machine – given to her by her mother who through necessity had provided everything from bedding to food for her family – Donna set about sewing, making clothes for her baby and the extended family.

Within 12 months her remit extended to making collections of children’s clothes to sell to her local community for a small profit. It was the start of a career for the enterprising young mother that would help her and her family endure for at least the next 25 years.

“It was a valuable lesson, to perfect a craft to ensure that if I identified a need I could actually have a better quality of life for myself and my babies,” she says.

Dr Odegaard says her experiences have equipped her with many skills useful in her day-to-day role managing others – not least of which is the ability to observe, to listen and to do things with what she terms “a good heart”.

Motivated by a sense of obligation to honour the efforts of her mother, her daughter, her sisters and the countless other women who have assisted on her journey, Dr Odegaard says she is neither a ruthless leader nor a walkover.

Instead her approach is one based on mutual respect.

“In terms of my legacy, I want my children to be proud of who I am and what I do. I have learnt that you have do right by yourself first, your family, community and society to get what you want. You need to be able to build your staff and encourage those with whom you come into contact with to be the best that they can without judgement.

“I think you have to instil a sense of hope, to let them know that ‘it doesn’t matter what you don’t know, it’s what you’re willing to learn’. Be persistent and keep going until you find out what it is you want to do. Be a leader and a role model and things will come your way – expect hard work and it will happen.”

* NAIDOC Week, is a celebration designed to commemorate the history, culture and achievements of Aboriginal and Torres Strait Islander peoples. Celebrated by both Indigenous and non-Indigenous Australia’s, festivities are held across all corners of the country. For more: www.naidoc.org.au