Extended Leadership Team

Michael Pratt AM

27 February 2020

Welcome!

Jo Blackwell

Update

Michael Pratt AM

Impact on Leading and Managing

DiversityEqual Opportunity and

Representation

ONEWorld Class Culture

Treasury Impact

Macro Challenges

Leadership impact

• Drought• Bushfires• Novel Cornavirus epidemic

• Reprioritise • Resourcing• Deliver Strategy and Outcomes

• Mission clarity• Stability• World Class Engagement

What is the impact?

Leadership impact in two vital areas

Stephen Johnston, Korn Ferry

Why Leadership MattersLeaders who adapt and excel in disruptive times.

Why leadership matters

1 Bn

200,000 years 1800

7 Bn

40 years

2x

Today200

years

Rapid growth of middle

class in Asia

Climate Change Digital technology

Domestic challenges –

productivity, education, tax

system, congestion and energy

prices

Aging population

Citizen expectations &

Societal pressures

Today’s leaders must deal with many trends and disruptions

Forces of

change

2.2x

faster than their

counter parts in the 90s-2000s

1965

33Ye a r s

2010

19 Ye a r s

The forces of change are accelerating,creating winners – and losers – faster than ever

Average S&P 500 tenure Young firms scale

~40X increase(data generated in zettabytes)

D A T A P R O L I F E R A T I O N

~2X increasein number of

connected devices

C O N N E C T I V I T Y

Exponential acceleration(calculations per second per $1k)

C O M P U T I N G P O W E R

The current wave of digital disruption is measurably differentfrom prior eras

The pace will accelerate as

expect to multiply the

c h a n g e i n i t i a t i v e s

they will undertake

75%

The typical organization

has undertaken

m a j o r f i r m - w i d e

changes in the past 3 yrs

5

How can I create an organisation

that will succeed in a world

of unpredictable and

accelerating change?

M o s t c o m m o n q u e s t i o n

Why Leadership Matters

Volatile Uncertain Complex Ambiguous

What matters in leadership?

Quick table discussion and post some thoughts on Slido

Visit slido.com on your phone

Enter event code #ELT1

Why

does leadership

matter at Treasury?ELT1

Why Leadership Matters

There may be a no more challenging, critical and strategic

endeavour than accelerating the development of leaders

who create enduring value ACROSS the enterprise.*

Leadership changes everything

*Kevin Cashman, author, Leadership from the Insight Out and The Pause PrincipleGlobal Leader of CEO & Executive Development, Korn Ferry

What matters in leadership?

Vision Understanding Clarity Agility

What matters in leadership?Fortunes Worlds Most Admired Companies

Agility

Authenticity (openness and transparency)

Emotional intelligence

Embracing diversity

Conceptual thinking

A global mindset

Working with people in other organisations

Skill with data and analytics

Humility (acknowledging mistakes and limits)

Facilitating virtual collaboration10%

5%

4%

9%

4%

3%

4%

2%

2%

2%

56%

69%

76%

78%

78%

81%

84%

86%

87%

91%

Disagree Agree

How important will each of the following capabilities be to the success of leaders in your organisation in 2025?

*FORTUNE’s World’s Most Admired Companies 2018 survey

What matters in leadership?

Quick table discussion and post some thoughts on Slido

Visit slido.com on your phone

Enter event code #ELT1

What matters in

leadership?

ELT1

GLOBAL INNOVATION INDEX

• We aggregated the assessment data at country level and related it to the Global Innovation Index (GII) 2018. There is a strong correlation between leaders in the most innovative nations and high performance on the five ADAPT dimensions.

GLOBAL LEADERS

• Measuring for the ADAPT Competencies and Traits, Korn Ferry assigned an ADAPT score to all 150,000+ participants in our assessment database across countries and modeled country-specific profiles.

ANALYSTS

• We surveyed 800 market analysts about what they looked for in leadership and organizations to recommend investing in one company over another. All were clear: the business landscape will be more disruptive, and they place a high value on transformational capability in leaders and the organization.

RIGOROUS “FUTURE FORWARD”LITERATURE REVIEW

• We anchored our outcome metrics and focus in the future, not just past research. We canvassed futurists and many other forward focused trends to triangulate leadership implications. This led us to the five ADAPT dimensions.

“BEST IN CLASS” LISTS

• We compared the ADAPT assessment scores of leaders on “Best in Class” lists: Fortune’s World’s Most Admired Companies, Fortune's Fastest Growing Companies, Forbes' Most Innovative Company, etc. Leaders from these companies scored higher across all five ADAPT dimensions.

Not a typical literature review

Participate in flow of knowledge

• Innovation in future is very different than

the past. It is social.

• Protective and self-reliant to Networked,

sharing, co-created

Does ADAPT relate to forward

focused business

performance?

How many are there?

How would analysts view this?

The self-disrupted leader research

DRIVE

Energize people

Give purpose

ACCELERATE

Implement ideas

Use quick

prototyping

Activate Perform and Transform through ADAPT behaviours

ANTICIPATE

Demonstrate contextual intelligence to make quick judgments and create opportunities; focus on the societal needs that the organisation wants to serve; provide a direction to unify collective efforts even among disoriented environments.

DRIVE

Energise people by fostering a sense of purpose; manage the mental and physical energy of themselves and others; nurture a positive environment to keep people hopeful, optimistic, and intrinsically motivated.

ACCELERATE

Manage the flow of knowledge to produce constant innovation and desired business outcomes; use agile processes, quick prototyping, and iterative approaches to rapidly implement and commercialise ideas.

PARTNER

Connect and form partnerships across increasingly permeable functional and organisational boundaries; enable the exchange of ideas; combine complementary capabilities to enable high performance.

TRUST

Form a new relationship between the organisation and the individual that centres on mutual growth; integrate diverse perspectives and values; help individuals to uncover their sense of purpose and facilitate them in providing their maximum contribution.

For each row, circle the descriptor that most describes the focus for leadership at Treasury(only choose one per row):

Bringing clarity in times of volatility

and ambiguity

Driving people´s energy and

motivation to perform

Pursuing continuous innovation

through rapid cycles of

experimentation

Promoting collaboration where

interdependency is voluntary and

transitory

Integrating diverse perspectives to

build trust

Identifying opportunities when

facing challenges and obstacles

Fostering a sense of purpose that

unleashes people´s discretionary

effort

Applying quick prototyping and

iterative approaches to rapidly

implement new ideas

Building partnerships that

promote people working together

in adaptable manners

Securing people’s commitment to

shared objectives in increasingly

heterogenous environments

Anticipating long-term challenges

and opportunities to guide short-

term judgements

Energizing people who are change-

weary

Promoting agile ways to empower

people´s creativity and build new

solutions

Fostering an environment of

openness that constructively

enables the exchange of ideas

Building employment relationships

of mutual growth that facilitates

individual’s living their purpose

Providing direction to unify

collective efforts, even among

disoriented environments

Managing the mental and physical

energy of self and others to

maximize effectiveness

Managing the flow of knowledge

through principles of Design

Thinking and Lean

Connecting and forming

partnerships across increasingly

permeable functional and

organizational boundaries

Promoting an inclusive

environment where differences

are appreciated and valued

Keeping up to date with market

trends and insights of tomorrow, to

build a sense of urgency to tackle

opportunities today

Encouraging optimism in the face

of obstacles and setbacks

Experimenting with new ideas;

seeing failure as practice to get

better

Combining complementary

capabilities that enable high

performance

Fostering the belief that strength

lies in differences, not similarities

Believing that if you wait too long

you will have bigger problems that

could have been avoided

Believing that people can give up

old routines and reskill themselves

to navigate uncharted territory

Believing that knowing how to let

go of control and empowering

people to create, is critical to

unleashing potential

Believing that friction and tension

between ideas produces new and

better ideas

Believing that differences do not

divide people; the inability to

recognize them does

Believing that disappointment is

inevitable; being discouraged is a

choice

Believing that empathy reduces

defensiveness and replaces it with

positive energy

Believing that one will never

accomplish something perfect, go

for 80% right

Believing that no matter how good

you are, people around you will

have all kinds of ideas to be better

Believing that the no one cares

how much you know, until they

know how much you care

TOTAL TOTAL TOTAL TOTAL TOTAL

A D A P T

Sum the total number of items circled per column in the space provided at the bottom.Enter the highest score(s) via Slido

EXAMPLE

Bringing clarity in times of volatility

and ambiguity

Driving people´s energy and

motivation to perform

Pursuing continuous innovation

through rapid cycles of

experimentation

Promoting collaboration where

interdependency is voluntary and

transitory

Integrating diverse perspectives to

build trust

Identifying opportunities when

facing challenges and obstacles

Fostering a sense of purpose that

unleashes people´s discretionary

effort

Applying quick prototyping and

iterative approaches to rapidly

implement new ideas

Building partnerships that

promote people working together

in adaptable manners

Securing people’s commitment to

shared objectives in increasingly

heterogenous environments

Anticipating long-term challenges

and opportunities to guide short-

term judgements

Energizing people who are change-

weary

Promoting agile ways to empower

people´s creativity and build new

solutions

Fostering an environment of

openness that constructively

enables the exchange of ideas

Building employment relationships

of mutual growth that facilitates

individual’s living their purpose

Providing direction to unify

collective efforts, even among

disoriented environments

Managing the mental and physical

energy of self and others to

maximize effectiveness

Managing the flow of knowledge

through principles of Design

Thinking and Lean

Connecting and forming

partnerships across increasingly

permeable functional and

organizational boundaries

Promoting an inclusive

environment where differences

are appreciated and valued

Keeping up to date with market

trends and insights of tomorrow, to

build a sense of urgency to tackle

opportunities today

Encouraging optimism in the face

of obstacles and setbacks

Experimenting with new ideas;

seeing failure as practice to get

better

Combining complementary

capabilities that enable high

performance

Fostering the belief that strength

lies in differences, not similarities

Believing that if you wait too long

you will have bigger problems that

could have been avoided

Believing that people can give up

old routines and reskill themselves

to navigate uncharted territory

Believing that knowing how to let

go of control and empowering

people to create, is critical to

unleashing potential

Believing that friction and tension

between ideas produces new and

better ideas

Believing that differences do not

divide people; the inability to

recognize them does

Believing that disappointment is

inevitable; being discouraged is a

choice

Believing that empathy reduces

defensiveness and replaces it with

positive energy

Believing that one will never

accomplish something perfect, go

for 80% right

Believing that no matter how good

you are, people around you will

have all kinds of ideas to be better

Believing that the no one cares

how much you know, until they

know how much you care

TOTAL TOTAL TOTAL TOTAL TOTAL

A 1 D 3 A 0 P 1 T 2

What Matters in Leadership

If I had asked people what they wanted, they would have said faster horses

Henry Ford

Build a cheaper, better, faster horse

Every single organisation needs to simultaneously

imagine the car

World Class leaders have impact through mastery of two vital activities

1. Run the business reliably and effectively

2. Change the business to capitalise on unpredictable opportunities

PERFORM

Run the business

TRANSFORM

Change the business

How we develop world class leaders

IMPACT

What is my leadership context?

Who am I to lead?

OUTSIDE IN

• Megatrends• Disruptive forces• MOG• Premier’s priorities• Community expectations

INSIDE OUT

• Purpose• Talents• Values & motivations• Mindsets• Identity

Anticipate Accelerate TrustDrive Partner

Our goal of 75% overall employee engagement will be realised when:

How we develop world class leaders?

Thank you!