Meet Graham Talbot. His leadership style and career trajectory are far from those of the typical run-of-the-mill CFO. One of the strongest strategic leaders in the energy sector, Graham has a strong track record in leading organisations through major change.

He is proof positive that CFOs must possess strategic leadership skills to influence all aspects of a business – not just the numbers.

(Related: Ultimate Guide To Capex For SMBs).

Arielle: Graham, it’s great to see you.

GT: So nice to be here.

Arielle: I’d like to learn about your approach to strategic leadership. Let’s start wide. What makes someone a good strategic leader?

GT: You’re leading strategically if you’re steering your organisation through a material or significant change from the current status quo.

While many day-to-day management skills apply to strategic leadership, you also have to flex some very specific muscles.

Interpersonally, you need to be highly inclusive, have strong communication skills, be authentic, resilient and – ideally – be a few steps ahead of everyone else.

(Related: Is An MBA Worth It?)

Operationally, you need to set the change effort up for success. For me, this starts with defining what the end state will look like.

Most people love the status quo and resist new ideas, so you have to be able to state the case for change in a way that excites and motivates people.

You need to gain buy-in, then execute.

(Related: How To Motivate Employees).

Arielle: Easier said than done, right?

GT: Absolutely. Think about making major changes in your own life, such as losing weight, training for a triathlon, or quitting smoking. There’s no use trying unless you’re in the right state mentally.

Change in business is much the same – with the added challenge of influencing the priorities of many, not just one!

(Related Article: Best Executive Resume Examples).

Arielle: Did you decide to become a strategic leader or “fall into” this path?

GT: My path as a change leader was not one that I actively pursued. And yet today, I struggle to think of working in a business-as-usual environment.

As an aside, I think business-as-usual leadership roles are actually becoming unusual anyway.

These experiences enabled me to see, and be involved in, a lot of change. But evolving as a strategic change leader was a real and ongoing learning process.

(Related Article: How To Lead Change In The Digital Age).

Arielle: Share an early strategic leadership experience with us.

GT: Sure.

Many years ago, I was leading a significant global change, and I was very disillusioned with how it was going.

I was travelling around the world with a 100-page slide deck ‘telling’ everyone what was going to happen.

Back then, that’s how change was done.

I wasn’t enjoying the presentations. The exit surveys were underwhelming. My disillusionment led to me pause the program and look for another way.

We completely reformatted the engagements, introduced music, games, breakouts, posters – all kinds of visual aids.

It was quite a conservative sector of the business (both above and below), and honestly, I wasn’t sure how it would all go.

Fast forward a few months – engagement and key message retention skyrocketed!

What did I learn?

Everyone has a different way of learning – and with big change, you need to cover all formats of communication – town halls, newsletters, videos, blogs, etc. And even when you do all of this, some people still will not get it, so you need a safety net for them.

So this was a key turning point for me. Instead of focusing on the ‘what’, I learned that the real challenge is in getting the ‘how’ right.

(Related: How To Develop A Strong Executive Presence).

Arielle: Your role as EVP/CFO of Maersk Energy would be unthinkably risky for some. How did you wind up in that particular spot?

GT: Maersk is a great company. It’s publicly listed, but the founding family still retains control.

They have a long-term perspective on the business, which is very refreshing. And they have very strong values which inform discussions and decisions daily.

We had a strong balance sheet, built a strategy around our core strengths and started working on acquisitions.

Our big-picture plan involved changes in organisational design, new markets, new technology, you name it.

This was mid-2014.

A few months later, the oil price collapsed from over $100/bbl to under $40/bbl. This made acquisitions extremely difficult.

Finding common ground was challenging.

Ultimately the Board conducted a strategic review that I participated in, deciding to divest the energy-related businesses from the listed Maersk Company and transform the company into an integrated logistics business.

(Related: Why Is Leadership Important?)

This is when I became CFO of Maersk Energy, which was responsible for restructuring the energy assets (approx. $15bn).

I joined the Boards of each of the energy businesses and set about separating them out from the Group.

This restructuring concluded in 2019 with the announced demerger of Maersk Drilling. We conducted a dual track process on Maersk Oil and Gas and ultimately sold it to the French energy giant Total for $7.45bn.

Decisive action by a team of strategic leaders turned a crisis into an excellent outcome.

(See Also: Australia’s Top-Rated Executive Resume Service).

Arielle: Tell us about your toughest days in this strategic leadership role.

GT: (Laughs). There were lots of challenging days.

For example, saying goodbye to some great people who had long and distinguished careers with the company but were no longer required given the strategic plans.

This occurred in the business I was part of, and also at the group level.

Another tough situation was losing a major, very material contract – and one of the original building blocks of the oil and gas business.

This hit the organisation hard, especially those who had been part of that journey from the beginning and had built their careers upon it.

These were always bad days for me, as I always think of the opportunity cost of the written-off capital. The process definitely sharpens your focus around future capital investments!

(Related: Best Forex Trading Platforms In Australia).

Arielle: As CFO at Maersk Oil & Gas, you set up a trading team. How did that happen, and was this a first for you?

GT: I had been involved in setting up various components of trading teams in other roles, but yes – this was a first for me in terms of starting it from scratch and then operating it.

Lots of learning!

Everyone has a different view of what a trading organisation entails, what the strategic vision is, as well as its associated risks. So, of course, this meant a lot of stakeholder meetings, a governance structure, a project committee and a risk committee.

(Related: How To Double Your Team’s Performance).

When we set up the design and its internal support structures, I luckily had access to great product marketing people with relevant experience that were under-utilised.

This helped a lot.

We managed to build the business based on relatively low barrels under control. Once we could walk, we started to trade for other companies.

From its standing start, this business unit made a healthy profit with a very aggressive growth plan.

(Related Article: Building An Effective Digital Transformation Strategy).

Arielle: As Finance Director at BG Group, your focus was on revaluing Queensland. How did being the last executive standing influence your leadership strategy?

GT: I had to learn to lead on the fly. There was a real sense of urgency in the delivery of the project. It was very material for BG.

Every day we had a new problem to deal with – and that meant accepting that a large part of the role required the ability to make quick decisions, fix things fast and keep moving.

Not long after my arrival, business leaders had to undertake a full project review and return to the Board for reapproval of a material increase.

This was a very intense period, given the pace at which this $20bn project was moving. This was coupled with the need to rework it and explain to the Board why it was now 25% more expensive.

At the same time, I was working on capital raising and further diversifying our group shareholder base in Asia.

For this, I needed a detailed knowledge of the Group strategy and metrics, together with a lot of detail on the business in Australia, so I could help investors understand what was happening on the ground.

I would ensure that I spent time in the field to understand first-hand how things were progressing, where the issues were and what was being done about them.

They are very clever people and ask great questions which are not always apparent when you’re in the engine room!

Overall, there was a pretty good alignment within the business around a clear vision. The key pain points were around roles, responsibilities and communication.

To rectify this, we had a weekly strategic management team meeting with over 23 people.

This sounds very wrong, but it worked quite well, given the pace at which we were operating and the speed at which plans could change.

(Related: Ultimate Guide To Delegating Authority).

Arielle: What did you learn about strategic leadership in your role as Downstream CFO & Director at Shell Australia?

GT: This was a time when the benefit of visible leadership really hit home to me. Together with the executive team, we were mandated to optimise the business with pretty much full autonomy.

If I recall correctly, on arrival, over 200 staff reported to someone outside of Australia. We moved the reporting lines on shore, set our strategic direction, gave operational leaders much more autonomy to make decisions and ran pretty hard.

As a leadership team, we often presented together with a common cohesive story.

We all knew each other’s leadership styles and businesses pretty well, so could clearly articulate where our own plans interfaced with other functions.

We had some tough strategic decisions to make, but we took them head-on and regularly travelled around the country to each location to talk to staff.

So yes – visible, engaged and authentic leadership style. It was a privilege to work with such a great team of existing and future strategic leaders and achieve great results in such a short time frame.

Arielle: This must have been a rocky road. Talk about the ups and downs, and perhaps what you learned from more experienced strategic leaders.

One of my strengths as a leader is creating stability and calm.

Sounds odd when my overall strategic leadership involves creating change and disruption, but the trick is to think about what you, as a leader, can do to give people confidence and ease their anxieties when everything around them is changing.

This can either be generated either internally or externally.

There is a very fine line between motivating and exciting the organisation and stabilising some critical foundations which keep people sane. An effective strategic leader can do both.

Sometimes they didn’t even know they were in the wrong place. I’ve rarely been disappointed after giving people a leadership role outside of their comfort zone.

I remember recruiting for a head of strategy.

There were a number of ‘expected’ candidates, but I had spoken with a bright engineer and convinced him it would be a great role for him.

I have had senior people move from tax specialisation transfer to planning, and have had an economist move to change leadership and strategic planning.

Knowing the people well – how they work, what motivates them and then how to keep them challenged – made all the difference.

Some team members resisted the possibility that a stretch assignment might be a good thing and that doing something completely different could feel liberating.

Coaching with emotional intelligence was essential.

Letting go of the technical knowledge that got them to where they are can feel very vulnerable to potential strategic leaders.

One way I’ve dealt with this is to move them into an area where the focus is on leadership versus technical expertise.

I like to treat every event – good or bad – as a learning opportunity and demonstrate strategic leadership by example.

Effective leadership development means noticing when someone makes the wrong decision and then working with them to analyse the situation.

See what they can learn from it, then share the learning with other new leaders.

Arielle: Speaking of things not going as planned, let’s dig into your Kazakhstan role. Tell us about some of the risks you took and how you grew from them.

GT: Taking the role in Kazakhstan was a very conscious decision.

Shell was a partner in the venture that was operated by ENI.

So technically, I was employed by ENI, but I was the most senior Shell employee in the venture. I was also a member of the predominantly Italian management team.

This was a truly amazing experience.

It was tough living away from my family. The climate was extreme, the business complex and the political landscape full of challenges.

This leadership role taught me to constantly make fast, calculated decisions with incomplete information, to stay flexible and to build the capability to fix things when they go wrong.

In fact, since this role, I haven’t really come across a business issue that has unduly stressed me.

Thanks to this experience, I’m able to remain calm, explore options and then land on a solution.

As I mentioned, in a project like this, you can’t always trust the information flow.

Not to say that people lie, but they err on the positive at times. So you need to get out into the operational areas and talk to people.

You need to see the reality for yourself. As an added bonus, I made some lifelong friends along the way.

Arielle: You had a brush with the law. Tell us about that.

GT: Kazakh people are master negotiators and are very creative in finding ways to build leverage in negotiation. One ploy is to target an expatriate – often through a breach of the law.

This happened to me.

The tax authorities claimed that one of the documents I signed didn’t comply with the law. This was a known issue whereby we had special conditions under our agreement with the government which were different to common tax law.

I left the country for several months until we could resolve the issue which, of course, was linked to a range of other issues having nothing to do with me.

In short, these assignments come with tremendous and often unanticipated risks. But as I mentioned, managing them is a unique learning opportunity.

(Related Article: Executive Burnout Is No Joke).

Arielle: How do you shape a true safety culture during times of massive change? This is so tough in a 24/7 business/role, yet so critical to success and reputation.

GT: There is no shortcut to good safety performance, and everyone must be a safety leader.

It’s imperative that strategic leaders walk the talk – especially in safety. During times of significant change, it’s easy to lose focus. Leaders must take care to identify the impact of any change on safety and ensure that it’s managed.

Often an organisation can take its eye off the ball during big change programs, and safety performance falters.

It’s important to make sure that the relevant teams are ring-fenced from the change and focused on maintaining the underlying business safely.

As a finance leader, I was expected to be quite highly qualified in Health, Safety, Security and Environment (HSSE). Without it, I knew my career progression would be impacted. And I had some great role models.

I remember once my finance leader flew in for a visit during a project.

Later that night, several operational staff approached me with positive feedback on the visit from the “Shell HSSE Manager” — what a great guy, he really understands HSSE, he was really inspirational etc.

How powerful is that?

So many team members in functional roles believe they do not have a role in safety leadership.

I would argue the opposite. A functional team member demonstrating safety leadership adds a lot of value and is well worth the investment.

Arielle: Your leadership style differs from that of a typical CFO, who is seen as a bean counter, head chopper type. You influence areas such as employee engagement and retention. How did you earn a seat at the talent table?

GT: As CFO and a member of the finance function, you have great access to information that – very often – no one else can access.

If you’re curious about the business as a whole, you can use this information to communicate insights to the business to improve company culture and improve performance.

This is where the connection to engagement and retention comes in.

This often involves discussions around gender diversity and its impact on career management. This subject requires open discussion to ensure it delivers positive outcomes, as there are often misconceptions that do not work well for the company or its employees.

I see my role on the executive team as a member of the team, versus solely as the CFO.

To me, this means I have both the right and the obligation to create a positive impact where ever I can, not just in my functional area.

Arielle: One of your passions is green/clean energy. What opportunities do you see on the horizon from a strategic leadership perspective?

GT: You really should not get me started on this. (Both laugh).

But the world is changing, and climate change is real. This is a huge challenge – and I am personally fascinated by how the transition will occur and who will be driving it.

Even though this change won’t happen overnight, the strategic leader in me believes that we need to not take our eyes off this ball.

Traditional oil and gas companies need to rethink long-term strategic goals. Power generators and retailers need to rethink their future. There will be more consolidation and integration across the energy sector.

By that, I mean resources through to power generation and distribution.

It is an absolutely fascinating time to be in the energy industry. Even in 2050, fossil fuels will be essential to meet the world’s energy demands, but it will look a lot different than it does today.

Today people think that renewable energy is expensive compared to fossil fuels, but if you include externalities such as population health and the environment, it’s actually cheaper.

So much education is required.

In many respects, this is just another change project requiring strategic leadership. For many, the case for change isn’t clear, the roadmap isn’t clear, and it will take a long time, which is code for ‘not my problem’.

There is too much social pressure and clever people in the world for this approach to prevail.

The key question is – what will transition look like? Personally, I’m getting involved in solar projects, the commercialisation of inverter technology, using recycled plastic and timber for construction materials and biofuels projects.

All of these are great learning experiences and will hopefully do their bit to move the needle in the right direction.

(Related Article: The State Of Social Enterprise In Australia).

Arielle: What should CFOs be on the lookout for?

The role of the CFO is evolving quite rapidly.

I still meet some executive teams where the CFO role is very tightly defined and basically looks after numbers and compliance.

But more and more, we are seeing the reverse – where the CFO is the right-hand person to the CEO and is a key strategic leader in the organisation.

With all of this role expansion, CFOs must not lose track of the basics such as cash flow management, financing and capital investment, which, of course, are linked to strategy.

If you don’t have the basics under control then don’t look for any more to do!

(Related Article: How Does The Future Of Work Look In Australia?).

Arielle: Thanks so much for talking with us about strategic leadership today.

GT: It’s been great, thanks for inviting me to share my thoughts on the topic.

When the pandemic hit, Pat got anxious about working from home. But after several months of the remote experience — including a month spent in Byron Bay on a “workcation”, Pat is now loathing the return to the physical and far less flexible work environment.

Months of isolation — despite what seemed like non-stop Zoom meetings — has diminished Jan’s productivity and interest in work.

Jan craves in-person interactions with colleagues, casual gatherings in the hallway, lunches, and happy hours.

(Related: 11 Best Web Hosting Providers In Australia).

Pat and Jan represent the polar opposite feelings that employees have about remote work.

Those feelings run the gamut from “loving it” to “hating it”, making it challenging for organisations to decide on how exactly their work environment will look like post-pandemic.

That has changed dramatically over the past several months, as employers of all sizes were forced to switch to a fully remote – or partially remote (hybrid) – work environment.

They discovered en masse that not only was it possible for technical, management and executive roles to be performed remotely, but that, in many respects, it was even preferable.

(Related Article: Best Work From Home Jobs In Australia).

Hybrid Workplace Is Here To Stay.

In fact, experts predict that after the pandemic is no longer a significant health concern, many employers and employees will continue to use some form of hybrid work model.

That’s true even for national security workers, according to the Government Executive.

McKinsey research based on input from C-suite executives indicates that about three-quarters believe employees will return to the physical workplace at least three days a week leaving a hybrid model firmly in place.

Layer onto this an emerging sentiment among employees indicating they, by and large, do not wish to return to their physical work settings, and would even leave an employer if that was required, and chances are the prevalence of hybrid work is likely to be even greater than currently believed.

This combination of on- and off-site work for some or all of the time is referred to as hybrid work.

(Related Article: 11 Best Ergonomic Office Chairs For WFH).

What Is Hybrid Work?

Hybrid work, simply, is work that is done in some combination of in the actual work setting and in a remote setting, generally from an employee’s home.

In practice, though, the concept is far from simple and is varied. In some companies:

How these work arrangements are determined also varies widely and will likely continue to as both employers and employees gain more experience with the hybrid model.

As many organisations begin to welcome employees back to the workplace, some are drawing a hard line, while others are remaining extremely flexible in their approach.

Both employers and employees have experienced benefits from the forced hybrid work experiment.

(Related: Best Carry-On Luggage For Business Travel).

Benefits Of Hybrid Work Arrangements.

With several months of experience behind them, employers and employees have learned a lot about working remotely during the pandemic.

There have been some bumps (more about this later) but there have also been some big benefits:

(Related: Best Small Business Accounting Software).

But managing in a remote or hybrid environment isn’t without its challenges.

The Hybrid Work Model Is Flawed.

Managers have long been averse to having their employees be “out of sight, out of mind.”

That’s largely why remote or hybrid work was rare before the pandemic.

They quickly found, though, that even jobs they felt could never be performed remotely could be.

Amazing changes have taken place in the fields of education and healthcare, for instance.

Prior to the pandemic, while higher education institutions largely offered online courses, they were largely unheard of at the K12 level.

(Related: What Is Activity-Based Work?)

In healthcare, while telemedicine existed it had restrictions in terms of how/where it could be offered and how physicians could charge.

Those restrictions have lifted and telehealth is proving to be a very viable option both for health systems and patients. Other industries have been similarly impacted.

But, along the way, those forced into hybrid work situations have faced some challenges.

1. Connectivity.

With millions of employees being sent to work from home, one challenge employers immediately faced was connectivity.

Not all employees had sufficient technology to perform their work duties from home. Not all had ample bandwidth or internet access. Closely connected to the connectivity issue were security concerns.

(Related: Best Coworking Spaces In Australia).

2. Security.

With employees working from home settings, many along with their partners and with children learning from home at the same time, security issues were top of mind for most companies.

Companies are tackling security issues by issuing equipment to employees, requiring them to work in a private in-home setting, and having them access the work environment through a secure portal or a VPN.

Outside of computer and connectivity-related issues, communication is a big challenge in hybrid work environments.

(Related: Complete Guide To Office Space Planning).

3. Communication.

Communication has always been a top management challenge, even in in-person settings. In hybrid settings, of course, those challenges become even greater.

Hybrid work environments require a very mindful approach to communication with specific times and types of communication required, as well as specific rules for engagement.

Many organisations require employees to keep their cameras on when using Zoom or other video-enabled communication tools.

(Related: Top 21 Ice-Breakers For Zoom Meetings).

4. Managing Productivity.

While there are many reports of higher productivity levels from employees during the pandemic, management concerns remain; companies want to ensure they’re getting value form their investment in human resources.

Some have implemented various types of monitoring to track that investment.

According to a CNBC report, Harvard Business School professor Prithwiraj (Raj) Choudhury vigorously opposes that approach, calling it an “Orwellian idea” that pits companies against presumed “slackers.”

(Related: Tips For Better Home Office Lighting).

5. Inclusion And Belonging.

Inclusion and belonging are issues of concern for organisations of all kinds, and were well before the pandemic. With remote and hybrid work, though, these issues become more predominant for many.

This puts marginalised employees increasingly at risk of being overlooked for plum assignments and promotions, especially if they aren’t comfortable reaching out to their supervisors and managers proactively.

(Related: How To Create A Sustainable Workplace).

Managers should be mindful of these potential tendencies and explicitly take steps to ensure they are connecting with all of their staff members equally.

McKinsey and others have recognised this is a critical issue facing organisations in a remote world. McKinsey points out that “an inclusive environment is created in equal part by the behaviour of individuals (leaders and peers), who make conscious inclusion a daily practice.”

It is not something, they say, that can “be achieved solely through systemic efforts, such as identifying and addressing unconscious bias and unintended consequences in formal processes.”

Instead, individual organisations will need to wade through and weigh the pros and cons of remote or hybrid work and make decisions and policies in the best interest of their organisation, its employees, its customers, and other key stakeholders.

– Irene

Chris works in Beijing. Pat works in Lima. Morgan works in New York City. They all work for the same company, which is located in London. They’ve never met. They probably never will. This isn’t the workplace of the future.

Steve Morrow, who also works for the same company from Parramatta in Western Sydney, is currently looking for a new job.

Like many, he’s been working remotely since March 2020. Like many, he says he has “no desire to return to a cubicle again … ever.”

(Related: How To Implement The Hybrid Working Model).

While he’s not desperate to find a new job, he says he’s surprised by the number of employers that want people to be on-site.

If he was desperate, he says, he recognises that he would have to consider going into an office, something he’s now loathe to do.

“I can’t stand the thought of being confined to a cube all day,” he says.

At this point, Morrow says, he would not consider changing jobs if it required him to be physically on-site. He’s not alone.

(Related: Best Small Business Accounting Software).

The Genie Is Out of The Bottle

Research conducted by plugable, based on responses from 2000 US adults in January 2021, found that, like Morrow, nearly half of those currently working remotely would rather work at home for the long haul than head back to the office.

Joe Flanagan, a senior employment advisor with VelvetJobs, has experienced the reluctance—or utter refusal—to consider jobs that require employees to be onsite firsthand.

“Candidates today are less forgiving of employers who don’t provide the flexibility of remote or hybrid work,” he says.

Corey K. Brown is a case in point.

Brown recently changed jobs. Having a hybrid working environment was a big part of his decision-making process. After working remotely for more than 18 months at his last job, he says the leadership team decided to bring all staff back into the office.

That, he says, “was a game-changer for many of my coworkers and me.”

(Related: Best Carry-On Luggage For Business Travellers).

It Was Also A Decision That Defied Logic.

The company had been entirely in-office before the pandemic. Then, like many, it was forced to send people home to work.

During that time, says Brown, the company had “historical growth.” That, he says, should have proven that employees could work effectively remotely.

It’s a move that more companies are likely to consider seriously. After getting a taste of the benefits of remote work, employees have become seriously averse to on-site work requirements.

(Related: 7 Best Ergonomic Office Chairs For WFH).

Opportunities For Employees.

“Hybrid work offers a number of key opportunities for both personal and professional growth”, says Corey K. Brown, head of marketing with risk3sixty.

Flexibility and work/life balance are two primary benefits, according to Brown.

Even the little things — like being home to admit a service person, or having the flexibility to leave for appointments, or to throw a load of clothes in the wash can be highly valued.

Those are personal life convenience-related perks, but the benefits of remote work can become much more tangible.

Scott Hirsch is CTO and co-founder of TalentMarketplace, a coworking space for tech companies and candidates.

“They could even start looking for work in places that offer higher pay than their current location,” he notes.

Of course, those remote jobs wouldn’t even need to be located in the United States. Remote work literally opens up a world of possibilities.

However, as with anything, there are always both upsides and downsides, says Hirsch.

(Related: 11 Best Website Hosting Providers In Australia).

Worrying Drawbacks Of Hybrid Work.

First, Hirsch says: “While remote work means more job opportunities since you can search outside of your location, it also means more competition.”

Consider a rural community in a sparsely populated area where you are the only IT developer with qualifications for a position you’re a shoo-in for. If that position can suddenly be handled remotely (and it can) the competitive field of candidates has grown exponentially.

(Related: Best Standing Desk For Your Home Office).

This, says Flanagan, is the biggest challenge facing candidates in a remote/hybrid work environment.

People who have been laid off over the past year are looking for work, and so are people who have been waiting to ride out the volatility before changing their jobs.

On average, most people are applying to more job openings today and getting far lesser responses. Those who are less likely to feel the pinch of competition are “niche experts or workers with very specific skill sets,” says Flanagan.

(Related Article: How To Set Up A Home Office On A Shoestring).

Being able to work anywhere in the world opens up a lot of opportunities, but also raises issues related to interacting with people across time zones.

Get together for lunch at midnight, anyone?

And, says Hirsch, while not having to commute to work is certainly an advantage, onboarding and working entirely remotely can negatively impact the social aspects of a job.

Plugable also points to some “bad habits” that can emerge when working from home based on its research:

A lack of a productive space for work (cited by 34% of respondents) and dealing with technical computer or internet issues (cited by 33%) can also negatively impact productivity, while also leading to frustration for employees.

(Related: Best Coffee Machines To Fuel Your Productivity).

While many have come to recognise and acknowledge that the fear of employees being “out of sight and out of mind” was largely unfounded, employees themselves have lingering concerns as Brown acknowledges.

“Learning to grow in your career without interacting with your team directly can be a drawback”, he says.

It’s a working model that’s not for everyone.

The good news, though, is that while some remnants of remote work are likely to remain long past the pandemic, the majority of companies are most likely to take a hybrid approach, allowing both them and their employees — current and prospective — to have the best of both worlds.

– Irene

Today I’ll provide you with a comprehensive summary that looks not only at how the world is changing, but what it means for you as a leader.

My aim is to flesh out and examine the key changes.

(Related: Ultimate Guide To Capex For SMBs).

Unexamined, they occur as a threat to your business. When placed under a microscope, they begin to occur as sources of competitive advantage. I think you’ll agree that more of the latter and less of the former leads to stronger business growth, better opportunities and less sleepless nights.

PwC estimates that 44% of jobs in Australia are potentially at high risk of computerisation and automation. However, technology also has potential to create new jobs (and more interesting jobs).

While not many of us yet know (with certainty) how that cookie will crumble, one thing is becoming clear – we’re entering a period of rapid transition.

Steering companies through this transition will be one of the biggest challenges faced by leaders in the next 10 years.

Top Causes Of Change.

While things are always changing, the current period of change is expected to be characterised by particularly strong upheaval – because it sits at the intersection of 4 forces:

• Increased computing technology, connectivity, data volumes and artificial intelligence.
• Ascendancy of the peer-to-peer marketplace (Upwork, Freelancer, etc).
• Ageing population, cultural diversification, retirement pressures and health issues
• Post-mining boom era in Australia resulting in pressure to become a services and advanced knowledge economy.

What does it mean for you as a leader? How will your company, department or team be affected?

(Related Article: Secrets Of Transformational Leadership).

How do you lead them through this transition? Which skills do you need to start cultivating now? Let’s take a look.

1. Use Data To Make Better Decisions.

Today, every business is a digital business. It means every business has the opportunity to collect – and leverage – data about its customers, employees and competitors.

To do so, companies must first be able to identify, combine, and manage multiple sources of data. Second, they must develop necessary analytics models for predicting and optimising outcomes.

Third, and most important, business leaders must possess the muscle to transform the organisation – so that the data and models actually yield better decisions.

2. Get Smart About Startups.

We’re entering the era of the entrepreneur. Are startups a threat or a source of competitive advantage? If your ideal job within a large organisation doesn’t exist (or will cease to exist in the near future), you may be tempted to build an organisation of your own.

Digitally enabled models of lean innovation can threaten large businesses because they operate at low cost and are able to scale up rapidly.

In light of that, how should big businesses engage with small startups? Compete with them? Buy them for the people and technology? Partner and collaborate with them? Invest in them?

(Related: How To Double Your Team’s Performance).

3. Hire Talent With Non-Traditional Work Histories.

Current recruitment practices and recruitment tools were developed for the industrial world where round pegs fit in round holes.

Thus, recruiters still look for resumes with linear work histories and education from prestigious universities. Talent which companies need in the age of innovation often exists outside those parameters.

4. Attract Millennial Talent.

The most recent Deloitte Millennial survey found – once again – that Millennials are notorious for expressing very little loyalty to their current employers.

Their loyalty is with their quest for purpose, fulfilment and happiness, rather than a particular employer.

For Millennials money is important (and they enjoy making it), however they also long to be part of something bigger than themselves.

They want to know that their work matters – and need to see how their efforts fit in within the organisational puzzle.

Most importantly, they’re ideological – they want a career that fits in with their personal values. They seek a connection between what they do at work and what they care about in life. They’re not afraid to leave a company if it doesn’t match their values.

For leaders, this set of requirements presents a challenge: how to ensure that values that the entire organisation lives by aren’t skin-deep?

How does one build a culture aligned around a shared sense of purpose which goes beyond the share price? How to make the organisation actually care vs pretend to care?

5. How Remote Is Too Remote?

Can technology be leveraged to work from home? From co-working spaces? Can technology reduce the cost and stress of overseas travel? Can employees be just as effective when working remotely? Can managers bring out the best in remote employees?

What about the intangibles – idea exchange, ad-hoc meetings, the Google Bump?

How do companies that have done it successfully (Automatikk) differ from companies that refuse to do it (Yahoo)?

(Related: Best Carry On Luggage For Business Travellers).

6. Reach The Millennial Consumer.

The Millennial desire to live a life of ideological congruence spills over into their purchasing behaviour.

According to the recent Accenture Millennial Survey, Millennials favour brands which they feel they can trust due to shared values and priorities.

During the 1980’s and 1990’s it was standard practice for brands to demonstrate support for causes through sponsorship and advertising.

Going forward we’ll see more organisations realising that there’s a difference between appearing to care and actually caring; the former requires surface-level marketing and PR efforts while the latter requires core-level organisational change that is felt, understood and embraced by every employee in an organisation.

There will be an increased demand for senior leaders who specialise in such core-level turnarounds.

7. Embrace And Leverage Dissimilarities.

Longer working lives and multiple careers lead to situations where a 25-year-old manager has to provide leadership to a 55-year-old team member.

An ex-entrepreneur who never had a “real” job in his life, but has successfully built and sold a company might apply for a job where he has to work alongside people who have “classic” careers.

These could be both a source of tension and opportunity.

8. Help Employees Disconnect.

The flipside of enhanced connectivity is the damage done by the expectation to be “always on”. Workers are less productive, healthy and happy when are constantly in their heads.

9. Make Your Company More Attractive To Freelancers.

While some Australians are dabbling in peer-to-peer (and freelancer) economy, it’s still in infancy. Expect a huge rise in next 5 years.

Expect the mould for what it means to be a freelancer – i.e., creative or low-skilled worker – to be broken. We’ll see a rise in freelance C-level jobs – e.g., freelance CEO/CFO/CMO/CTO/CHRO.

Mixed engagement models will rise in popularity.

For example, a 20-person startup might hire a CFO in a casual advisory capacity as a freelancer.

As the startup grows that might grow into a semi-permanent agreement, then a profit-sharing or equity-owning full time one.

Overall, this might lead to opportunities for companies to restructure and become more efficient Also, to be able to tap into knowledge and experience of individuals they otherwise wouldn’t be able to afford.

(Related: The Best Stand-Up Desk For Your Home Office).

It will also create problems – accountability, productivity, difficulty with producing meaningful results in short period of time, etc. Question is – for which types of jobs, tasks and industries does the freelancer model work well? And where does it not?

10. How Much Office Space Do You Need?

This brings about questions around demands for office space – will traditional centralised offices give way to alternative arrangements which can be quickly scaled up and down?

In a bigger context, it becomes a question of urban design.

When you don’t have masses of people moving in and out of the city at 9 and 5 how does the need for public transport and road infrastructure change?

11. Which Software Will Provide The Most Competitive Advantage?

In the past, you knew that you had to provide teams with Word, PowerPoint, etc. Now software can augment every part of your business.

How to decide what to pay attention to? Almost every day you learn about another enterprise-level software package – for sales, marketing, onboarding, training, communication, etc.

How to decide which one(s) add value? How to balance the adoption of this new technology against costs?

12. Prioritise Welfare And Health Of Workers.

To what extent is it my responsibility? Two-thirds of Australian employees are overweight or obese. Can this be due to poor work/life balance?

13. Ensure That Entry-Level People Are Adequately Trained.

Increased use of automated systems is raising the complexity of tasks and requiring higher skill levels for entry-level positions.

This, in turn, will mean that companies will have to bridge the training gaps in-house; this will require people with higher levels of emotional intelligence, social interaction.

14. Wean Off Our Dependency On Mining Resources.

As Australia enters post-mining boom era, how can companies which have traditionally depended on resources diversify into services, knowledge and innovation imports? How can we reinvent?

15. Protect Ourselves From Big Disruptors.

One of my favourite cafes in Newtown is Brewtown Newtown. It used to be a Dymocks.

While I love the cafe, I often think about whether Dymocks executives could foresee what Apple, Kindle and Amazon would do to their industry. What will the next Uber and Apple do to yours?

16. Learn To Build Innovative Products.

The Internet of Things (IoT) is at the early stages of growth. In 2006 there were two billion smart connected devices, in 2015 there were 15 billion devices.

Although expectation wary, Intel predicts that by 2020 there will be about 200 billion devices. Apple’s iPhone and iPad were not only successful products – they spawned entire new categories of products – music, productivity, photography – even the damn selfie stick.

We’ll see this kind of domino effect happening on an exponential level.

17. Create A Workforce Which Is Not Afraid of AI.

Robots are coming. But that doesn’t mean that you have to lay off 50% of your staff. Job tasks which are routine, repetitive, structured and rule-based are likely to be automated over coming decades.

Leaders will be responsible for ensuring that their human workforce is hired for creativity, problem-solving, advanced reasoning, complex judgement, social interaction and emotional intelligence.

18. Protect Vulnerable Demographics.

Of course it’s also essential to ensure that training programs are created to equip people whose jobs have been automated with in-demand skills.

The danger of “let’s have robots do all menial jobs” is the potential for elitist hiring practices. The reality is that not all people will be able – or willing – to transition and upskill.

While it’s important to allow technology to unlock new levels of productivity and value, leaders will be required to provide appropriate safety nets and reasonable protections for people who are not able – or not willing – to fully participate.

19. Create Jobs Which Suit Tapered Retirement Models.

In a tapered retirement model an employee gradually scales back and changes their duties rather than ceasing work altogether.

How to create a system which enables highly experienced employees to taper off their commitment to a company?

20. Market In Ways That Remove Barriers, Rather Than Add Noise.

Content marketing costs 62% less than traditional marketing and generates about 3 times as many leads.

This statistic, although, impressive, obscures the fact that the majority of content marketing efforts produce little ROI.

How, then, to create a sophisticated content marketing strategy which builds real trust between brands and consumers?

– Irene

In this post, I aim to bring you a fresh look at this timely topic—including relevant examples and breakthrough approaches to obstacles that may be standing in your way on your journey to being a better leader.

But first, let’s warm up with a few lighthearted examples of other famous leadership styles.

(Related: Best 5 Types Of Feedback To Use In The Workplace).

1. Autocratic Leadership.

Could also be called dictatorial. Strives for total control. Napoleon or any of the great oppressors exemplify this approach.

2. Servant Leadership.

The total flipside of autocratic. This leader puts their people above all else. Gandhi and Martin Luther King come to mind.

3. Command And Control Leadership.

Bureaucratic is another word for this style. Following the rules matter above all else. A great example would be the Roman Senate during the height of the empire; or maybe your grandparents.

4. Transactional Leadership.

Status quo much? This style goes all in to maintain the current company structure and its functionality. Get on board, or get out. Bill Gates was famous for this approach.

Okay, now that we’re in leadership mode, let’s dive in.

(Related: Is An MBA Worth It?)

How To Spot A Transformational Leader.

• They lead by example.
• They possess the necessary vision to identify when the status quo no longer works.
• They’re capable of persuading, motivating and organising their followers toward their vision.

Steve Jobs and Richard Branson are obvious popular examples.

Their leadership style evokes a visceral response from the observer or recipient akin to sheer inspiration.

It’s the equal, yet opposite, gut reaction we all felt when confronted with the failings of Travis Kalanick, Oscar Munoz, John Stumpf and other CEOs in the last year or so who, despite some measure of brilliance, managed to damage their company’s brand and create cultural toxicity.

(Related: Ultimate Guide To Capex For SMBs).

Transparency Is Vital.

Countless companies want to transform. Yet how many leaders can lay claim to this achievement?

QSuper’s pension funds for Queensland’s government employees may not be as sexy as the original iPhone launch. But Michael Pennisi, CEO of QSuper, approached the needed changes with a Jobs-era Apple flair.

Two years ago, QSuper was one of the few remaining closed public-sectors pension funds in Australia.

So when, in that same year, the Queensland government legislated an open market, Pennisi had been preparing. (From our definition: the necessary vision to identify when the status quo no longer works).

This meant a complete revamp of their business model. To activate the transformation, Pennisi introduced two major shifts.

• First, a streamlining of operations coupled with single-point accountability across the business.

• Second, one group of people came together to oversee all the changes company-wide for consistency. Focused on five key priorities, they put all other work on hold.

Pennisi’s message to his executive team: “You’ve got a mandate. Here are the expectations. I’ll leave you to run with it.” (From our definition: Capable of persuading, motivating and organising their followers toward their vision).

Transparency was integral to the transformation.

Pennisi conducted regular town hall meetings with all employees completely unscripted and unrehearsed. Anyone could ask anything.

The message to everyone was clear—they were all in it together. (Final point from our definition: Lead by example).

Characteristics Of Transformational CEOs.

Now let’s go broader. Last year, HBR released a study called the Transformation 10.

Even though they looked at the traditional group of S&P 500 and Global 500 firms, their measurements were far from expected.

Rather than relying upon generic metrics (like innovation, or profit margin), they dug deep into which leaders could strategically reposition their companies…and why.

While the entire study is worth a read, these two characteristics of transformational CEOs are the most revelatory:

1. They’re On Two Separate Strategic Journeys.

A keen insight from the study is that transformation can’t occur when a leader pursues one linear journey during which the old company is expected to evolve into a new one.

Instead, the recommended dual journey is one of repositioning the core business while actively pursuing new ones. Amazon is a great example.

(Related Article: Are CEOs Becoming Less Ethical?)

Having expanded its core retailing platform into new categories like food and streaming content, its parallel journey was building the world’s largest cloud computing enterprise.

CEO Andy Jassy of Amazon Web Services (AWS) began this work in 2006. Since then, his efforts have quelled a long-standing analyst complaint about Amazon—namely that its central offerings were scarcely profitable.

Today, while AWS makes up a mere 10% of Amazon’s $150 billion in revenue, it generates almost 89% of the company’s $1 billion quarterly operating profit.

2. They Plan For Disruption.

The two-pronged transformation journey takes time. According to the study, at least 10 years.

And, if you’re not vigilant, you can still be knocked off your feet more than a decade after you’ve begun. No one knows this better than Reed Hastings of Netflix:

“My greatest fear at Netflix has been that we wouldn’t make the leap from success in DVDs to success in streaming.”

So, he started planning early, back in 2007. Ironically, he moved too fast when five years later, Hastings attempted to launch Qwikster—a stand-alone mail-based DVD company.

Netflix customers weren’t ready for it. Hastings had to admit defeat and back off.

The answer was returning to the dual journey until it was time to make the leap. The end result is that Netflix is now in 100 million homes in 190 countries.

Although personally, I’m repeatedly disappointed that anything I want to watch is only on DVD, this broader question of timing raises one of the trickiest issues in the transformation game.

ROI Of Long-Term Planning.

Ari Wallach, Fast Company’s new expert on social and business trends, and self-proclaimed creator of “futuring,” has cultivated an approach that appears unorthodox in today’s business climate of constant change.

Wallach, who has strategised for clients as diverse as Obama and Deepak Chopra, laments that when he began his consulting work more than a decade ago, corporate leaders used to talk, think and plan in longer chunks of time.

Five, ten even 20 years out.

But today, when Wallach meets with corporate leaders, they say “Hey, I love your work. Now let’s talk about the next six months.”

In one of his insightful Ted Talks, he cautions against relying upon sandbag strategies and falling prey to a syndrome he’s deemed “short-termism.”

Short-termism, Wallach claims, is a backlash of technology. We want and expect everything instantly. It’s a syndrome Wallach cautions is making us hyper-reactionary.

In an age when change is coming at leaders (and at everyone) faster than most humans can productively process, what does he recommend? An approach Wallach has coined as the Longpath Practice.

Note that he calls it out as a practice, meaning its success requires our committed active involvement repeatedly in the present moment.

Three Pillars Of Longpath.

1. Transgenerational Thinking.

What impact will your business have long after your own cycle of birth and death? What is your legacy to society?

2. Futures – Not Future.

Open up your point of view beyond the dominant lens of your time (technology).

Create a new point of view for yourself, and your business. What other futures—beyond the obvious—can your business foster?

3. Telos Thinking.

In Greek, telos means “ultimate aim” or “ultimate purpose.” Telos thinking invites us to answer the question: To what end?

• What will be different by taking this step, changing this policy, or shifting this approach?

• What will come after? And not just a year from now or even five years from now.

• What will have happened 20, 50, or 100 years from now because we made this choice today?

• In other words, to what end are you doing what you are doing?

Can you hold a vision that stretches far beyond your lifespan? Before you dismiss this approach to transformational leadership as too laborious, consider this example…

Patagonia.

Not the tip of South America, the corporation. Yvon Chouinard, Patagonia’s founder, on NPR’s “How I Built This” podcast said:

“The faster a business grows, the faster it dies. We decided on a growth program so that we would be around 100 years from now. So all decisions were made as if we’re going to be around 100 years from now.”

Again, 100 years. And for Chouinard, his reasoning is similar to Wallach’s.

“We slowed down our growth, said ‘No’ to a lot of opportunities and became more responsible.”

No surprise then that Chouinard’s “to what end” is advocating for the environment, helping to prevent global warming and donating to causes that align with this vision.

Imagine how different a company Patagonia would be today if he had only focused on the next six months. Or even the next five years.

Don’t get me wrong. I’m not proposing that you scrap your short- and medium-term plans.

But powerful transformation happens when you take a huge step back and widen your scope. Daily issues seem a lot less pressing when considered in the bigger picture.

Two Challenges For You.

The next time you’re feeling backed into a corner by a risky short-term dilemma, ask yourself:

1. Will delaying this decision/launch affect the future of your business 100, 10 or even five years from now? If the answer is no, back away. It becomes easier to lead without the distraction of a minor setback. And to course correct if you’re not expending your precious energy on a short-term stressor.
2. How can you simplify your company’s mission? What basic statement embodies your very purpose for doing your business? When you think about the next century, platitudes and business jargon seem to land where they belong—in the waste bin.

I’ll End Today’s Post With An Inspirational Tale.

It was impossible to say no to President Mandela.

As the stories go, Mandela was endeavouring to convince a local corporate executive to donate to the restoration of a football field in the Eastern Cape devastated by flooding.

The executive made the trip with Mandela, but with a firm financial figure in mind that he was determined not to deviate from.

When the helicopter landed at the football field, tens of thousands of black school children in sparkling white shirts bowed to welcome their leader.

Again, as the stories go, Mandela turned to the executive and said, “Now, I hope you are not going to disappoint me?”

In that split second, the executive mentally vowed to double the amount of his donation. After everything Mandela had sacrificed, how could he possibly hold back?

And so, we’ll add one last example bullet point to our working definition for today: Generosity.

Give of yourself and transformation will follow. You are the first, and most important, example of transformational leadership.

– Irene

It’s not a surprise – a recent EY study revealed that flexibility is a new top perk for professionals, with 74% of employees expressing a strong desire to “work flexibly and still be on track for promotion”.

I do suspect, however, that flexible working will be viewed by many professionals as the ultimate opportunity to start dabbling in entrepreneurship or to “try before you buy” a life of freelancing.

Does this mean that flexible working policies will backfire on the employers? Will we see a steady outflow of the best and brightest from large Australian corporates to the youthful startup scene?

Will top talent “escape” the corporate world for a life of independent contracting through websites like UpWork.com and Freelancer.com?

(Related Article: Best Work From Home Jobs In Australia).

The Argument For Flexible Working.

To answer these questions, we need to take a step back and look at what’s driving these changes. Technology is one of the biggest – and commonly cited – factors.

Rapid technological evolution is enabling flexible working in a way that simply wasn’t possible before. Cloud-based technology, smartphones, video conferencing software, cloud-based recruitment tools – developments like these mean you don’t need to be physically in the office to work.

(Related Article: Future Of Work In Australia).

We’ve all heard these arguments before. Thankfully, there are deeper factors to consider.

People Want Work With Meaning.

Technological advances testify to a global cultural mindset: above all, this is a time for technological innovation and new ways of thinking about work.

The aspirational Millennial generation is leading the surge, with a strong inclination to find work that has meaning at companies that foster a sense of belonging.

(Related Article: How World-Class Executives Facilitate Employee Engagement).

For many Millennials, however, the corporate world is frustratingly ineffective at catering to those needs; in their search for options they begin to view entrepreneurship as the most potent vehicle which can help them to reach their goals.

They’re inspired by the successes of others; barely a day goes by without an AirBnB, a TransferWise, an Uber popping up. If they can’t start “the next big thing”, they want to join one.

(Related Article: What Is Transformational Leadership?)

The Dissatisfied Worker.

As much as technology is leading us towards flexible working, it’s also pushing us away from traditional full-time work. In the past ten years, it’s become increasingly difficult to switch off, prioritise tasks effectively, learn sufficiently and think creatively.

The demands of an always-on professional landscape are asking more and more of us, and most businesses aren’t doing enough to compensate.

According to a 2013 study by Gallup, 61% of Australian professionals aren’t engaged at work, a figure rising to 81% amongst executives.

Many top professionals are disengaged and disenfranchised – and the soils have never been more fertile to pursue something different.

This Is Backed Up By My Personal Experience.

My business often calls on me to employ people on a flexible part-time basis – and every time I advertise a role, the number of highly qualified professionals who apply staggers me.

In the last few weeks alone I’ve received job applications from Senior HR Directors and Management Consultants, Heads Of and Division Leaders.

All of them say the same thing – they’d rather work in a flexible role in a politics-free startup environment than continuing to run the classic corporate rat race. (As a side note, if you’re interested in working for Arielle, find out more about who we hire here).

While I don’t have data to back this up, I’m fairly confident that 15 years ago not nearly as many successful professionals at that level of seniority would be as keen to work for a startup. (Or, as it probably would have been called back then, a “small business”).

How To Attract Great Talent.

This brings me back to PwC.

Large or small, corporate or casual, every company depends on its success on its talent.

Traditional means of attracting talent – large salaries, bonuses, titles, promotion trajectory – still matter, but for many, they pale in significance next to the opportunity to reclaim a work/life balance.

Particularly in the context of well-publicised talent shortages, companies are needing to work harder than ever to attract and retain top talent.

Flexible working is a major tool in their arsenal, hoping to entice those top performers who otherwise might just pack it all in (like I did, all those years ago).

The important question is this, though: will this freedom be the salvation or damnation of the corporate world?

On the one hand, offering flexible working widens the talent pool, allowing companies to take advantage of potentially exceptional hires who simply couldn’t, or wouldn’t, commit to a traditional 9 till 5.

Flexible working has also been shown time and again to drive productivity, making it seemingly a win/win solution in this changing professional landscape.

(Related Article: Best Home Office Chair For All-Day Comfort).

On the flip side though, flexible working could end up driving away the very talent it seeks to attract, fuelling a mass exodus from the corporate world into the land of youthful startups and independent contract work.

Consider this – 10 years ago those of us who wanted to give entrepreneurship or freelancing a shot had little choice but to put our “real” career on hold. Flexible work allows you to balance both.

The Perk Of Flexible Working.

You can start your business as a side-hustle while knowing that you have the safety net of your main job to fall upon if things go wrong (which they probably will, the first and the second time around).

PwC hadn’t long introduced their flexible working policy before Brendan White, one of its senior managers in Melbourne, took advantage of the policy to set up an LGBTIQ charity.

It’s fantastic news for Brendan and the community – but potentially not so much for PwC. If his charity sees success, how long is it really before Brendan leaves PwC to pursue his passion full-time?

How Flex Work Will Backfire.

Without a doubt, flexible working is a huge perk for employees, but I do think it will backfire in some surprising ways for large employers.

(Related: How To Manage A Remote Team).

Specifically, negative repercussions will be felt at organisations that don’t consistently find additional ways to value their staff. If employees find that grass is indeed greener on the other side, they’ll choose to move on.

Overall, I think it’s a positive change – it will force organisations to innovate areas that traditionally have seen stagnation (I’m looking at you, recruitment and HR).

Moreover, if top talent does leave en masse to pursue their entrepreneurial ambitions, it can only mean a boon for the Australian startup scene.

While I don’t want this to come at the cost of disasters at large corporates, there can only be one winner and for the first time in history a 1-year-old tech startup can compete for talent with the likes of Macquarie and McKinsey & Co – and hope to win.

Not because the startup pays more (it doesn’t), not because it’s more cool (it’s not), but because it offers something we’ve all been deprived of during the last 100 years – meaningful work which is tied to a higher purpose.

Managers and senior leaders at companies like PwC need to stay alert – the next decade will be a very tricky one.

– Irene