Posts Tagged ‘diversity’

australia's corporate blindspots

australia’s corporate blindspots

Inspiring case studies about Asian market penetration, leadership in technology and global excellence in sustainability programs, show what Australia is capable of. However, across the ASX 200 and beyond, we tend to lag in some game-changing areas. While it’s risky to generalise, I believe that corporate Australia tends to underestimate three important strategic themes:

  1. Fully understanding the impact of China on a number of fronts – as it shifts from a low cost manufacturing base to the biggest consumer market in the world; as it moves from a user of technology to a creator of technology (2.2% of GDP in the next five year plan on R&D); and as the need for primary resources (minerals and food) continues to grow. Geoff Raby, retiring Australian Ambassador to China, said that the one thing that surprised him most about his time in Beijing, was how few CEO’s and Chairs of Australian companies paid him a visit.
  2. Treating environmental and sustainable challenges as opportunities rather than impositions. There are many ASX 200 companies with lengthy annual sustainability reports, however few demonstrate genuine belief that environmental responsibility and growing profitability are not mutually exclusive. We desperately need a mindset shift from compliance and complaint, to realism and possibility.
  3. Recognising the value of leading rather than lagging in embracing digital technology-based innovation. Although there is variation in responsiveness within the sectors, media and retail are two sectors which have been caught asleep at the wheel. Is this an age related phenomenon – as older people are in positions of responsibility? How many senior executives and directors have you heard pass off Twitter as being frivolous, rather than seeing its potential as a primary source of focused information? Yet I know many savvy over 60’s behaving like digital natives. No, it’s not age per se; it’s about mindset, openness to change and awareness.

In a global context, Australia business has performed relatively well in the last decade, supported by resources based economic growth, a sound banking and legal system and excellent corporate governance. After the GFC, some observers have suggested that this same good governance has trended towards risk aversion and consequent inertia.

As the world is turned on its head by the digital revolution, major shifts in the global economic balance, and the need to resuscitate an environmentally struggling planet, there is no room for board and executive risk aversion in these areas. While being in the “late adopter” or “laggard” group may not have threatened company survival in the past, today’s environment calls for a positioning as “early adopters” at worst, and “innovators” at best.

Peter Williams, CEO of Deloitte Digital, goes even further in suggesting that any board of directors or group of managers who are not moving fast to understand and harness changes that technology is delivering – social media, cloud computing, mobile devices and data – is abrogating its responsibility to deliver leadership and governance.

Over the next ten to twenty years, the future of Australia will be fall into three main areas – primary resources (minerals and food); the service economy, and the knowledge economy. Julian Cribb believes that by 2050, our economy could be 70% knowledge based. In China last month I saw evidence of the emerging demand for our capabilities in disciplines like urban planning, agricultural science, energy, information technology, architecture, engineering, water management and medicine. We have a long way to go to understand the scope and shape of that knowledge economy, let alone create it. The building blocks exist, but success will depend on the ability of corporate (and political) Australia to gain insights and show leadership in the three areas that we underestimate.

What can we do? CEO’s need to get on the court and play – go to China and understand the market and people. Get immersed in the new technology – as ABC CEO Mark Scott does, personally sending 140 relevant tweets a week. He knows the medium and can talk the language because he has become involved. Shift from a mindset of lobbying Government about regulation, to one of understanding which way the wind is blowing and putting up the spinnaker. Get rid of dead wood on boards – people who are reluctant to change and enjoy peer group support for their scepticism. Much focus is given to gender diversity on boards – we need some mindset diversity as well! It’s not too late but we need to act quickly.

diversity, inclusiveness and aussie rules

diversity, inclusiveness and aussie rules

April 26, 2011  |  aborigines, knowledge, life, main blog, motivation  |  3 Comments

Australian Football has always brought people together from different walks of life. If you’ve supported, or played for an Aussie Rules team, you’ll understand. I once played in a team with truckies, scientists, farmers, wine makers and policemen. There was a salesman, a preacher and a horse trainer as well. We were the Rutherglen Redlegs, where backgrounds and occupation counted for nothing, where there was a strong sense of belonging, acceptance and inclusiveness. In our team however, there was little cultural or ethnic diversity. Thirty five years later, Australian football is now a game open to any person, regardless of their race, religion, gender or sexuality. The evolution is not accidental.

For indigenous people, AFL has been a conduit to better life opportunities for the gifted, a source of fun for others and a vehicle for greater understanding and tolerance by Australians generally. Understanding the passion that indigenous kids have for footy, some schools demand attendance into senior years as a pre-requisite for their participation. While there is strong evidence that aboriginal people were the pioneers of Aussie Rules, for many years it was a white man’s game. Through the leadership of people like Kevin Sheedy, Maurice Rioli, Michael Long, and more recently Andrew McLeod, Michael O’Loughlin and Adam Goodes, that has changed. We now have 10% of senior AFL lists made up of indigenous people, although they make up less than 2% of the total population.

What about ethnic diversity? While AFL hasn’t been the game of choice for many immigrants brought up on soccer, for example, there have been many men from 47 different countries (going back no more than one generation) who have played Aussie Rules at the highest level. Andrew Embley from Burma, Peter Daicos from Macedonia, David Wojinski from Poland and Alex Jesaulenko from Austria, are just some examples.

In what can sometimes be a thankless role, Andrew Demetriou is the CEO of the AFL. He is a former North Melbourne player with Cyprian roots and takes a progressive stance on diversity. His address at a forum organised by the Diversity Council of Australia last year is excellent, including this extract…

“…and, most importantly, we want to be respectful….to embrace diversity and inclusion….to understand and value the differences in every person. I like to think of Australian football as a game for anyone and everyone….a game which is inclusive, accessible and affordable…a game that does not discriminate.  That’s why we must continue to engage with indigenous and multicultural communities to provide pathways for them to participate in our game. Australian football has extraordinary power. Its greatest power is to bring people – regardless of their background or belief – together”

Good on you Andrew! The AFL is walking the talk with its multicultural program and indigenous programs (including ambassadors for life, indigenous academies and employment strategy and AFL kick start programs).

The stimulus for this blog was listening to the old master himself giving an address to the Royal Sydney Show Community lunch last week. Kevin Sheedy, apart from stressing that Greater Western Sydney will be successful on the field, said “it’s not all about footy…. it’s about the game of life”. He went on to tell the story of a Muslim boy who was given a trial game recently and had 150 mates turn up to watch him. He also shared the fact that there are people from 170 countries in his catchment area (33% of people in western Sydney were not born in Australia) and explained how he intends to embrace as many of them as he can. Kevin is a true pioneer in this area, just as he’s been in fostering indigenous inclusion at all levels of our game.

David Wright-Neville, a consultant to ASIO on terrorism, recently spoke at a lunch In Melbourne about managing a junior team. His team comprised Vietnamese Australians, Lebanese Australians and boys from many other ethnic and cultural backgrounds, including recently arrived Sudanese refugees. One of the boy’s grandfathers, the Imam of a large mosque in Melbourne, said that Australia’s capacity to embrace immigrants went a long way to diminishing feelings of ostracism and disenfranchisement – conditions we understand can be precursors to cells of rebellion. He emphasised the vital role that Australian Rules plays in supporting true multiculturalism and a sense of belonging.

These stories highlight some great Australian values – inclusiveness, mateship, originality, groundedness and optimism. Interestingly, these were the some of the values that we defined at the Australian Tourist Commission for Brand Australia in 2004 – values which still underpin the brand story and promotion of our country overseas. It’s what I would like to see Australia really become. It seems that Andrew Demetriou and the AFL do as well…perhaps more readily than some other Australian communities and individuals. AFL is, and will continue to be, a circuit breaker in fighting prejudice – by including all people in the love of our national game.